Anonymous sources close to the investigation into the attacks, which targeted dozens of American corporations, tell the New York Times they originated at Shanghai Jiaotong University and the Lanxiang Vocational School. The former boasts one of China’s top computer science programs; the latter has been known to train computer scientists for the Chinese military and reportedly has ties to Baidu, the dominant search engine in China.

While the implications of these findings seem obvious, insiders differ on what they really mean. Some suspect the schools are being used as a cover for Chinese government operations. Others speculate that they’re being used to hide intelligence operations run by a third country. Still others wonder if there’s no government involvement here at all, speculating that the attacks are criminal in origin and were intended to steal intellectual property from American tech firms.

Regardless of which scenario seems most plausible, it’s important to remember that just because the attacks have been linked to IP addresses at these schools’ networks doesn’t mean they necessarily began there.

Asked about the possibility the attacks originated at his school, a professor of Web security at Jiaotong’s School of Information Security Engineering said it was certainly possible.

“I’m not surprised,” the source told the Times. “Actually students hacking into foreign Web sites is quite normal. I believe there’s two kinds of situations. One is it’s a completely individual act of wrongdoing, done by one or two geek students in the school who are just keen on experimenting with their hacking skills learned from the school, since the sources in the school and network are so limited. Or it could be that one of the university’s I.P. addresses was hijacked by others, which frequently happens.”

PREVIOUSLY:

• Nearly a Month After Debut, Google’s “New” Approach to China Still a Lot Like the Old One
• Google CEO: Ask Not What Google Can Do for China–Ask What China Can Do for Google
• China on “Google Farce”: Our Internet Is Open
• China to Google: No Worries, We Were Planning to Clone Those Android Phones Anyway
• U.S. State Department to Complain to China About Google Hack. Not That China’s Going to Listen.
• Microsoft: “Don’t Be Evil” Is Google’s Motto, Not Ours
• What’s the Chinese Word for Bing? Google Threatens to Leave China.

[Image Credit: China Security Blog]

Steve Ballmer is delivering his annual state-of-Microsoft address at the Consumer Electronics Show in Las Vegas tonight–his second since assuming the duties of former CEO Bill Gates.

If anything like last year’s, Ballmer’s address will offer a broad overview of Microsoft’s (MSFT) consumer strategy for the year, touching on everything from the company’s hardware-software ecosystem to its home entertainment offerings.

Likely to figure prominently in tonight’s address: Windows 7 and the new touch-enabled PC form factors it has evidently inspired; Bing; and Natal, Microsoft’s controller-less game control system, which will launch in time for the 2010 holidays.

• The keynote begins with, what else, some introductory remarks from Consumer Electronics Association President Gary Shapiro: “Happy New Year and welcome to 2010 CES, the World Cup of innovation. The past year has been a challenge. The global recession has affected all companies. Fortunately, signs are pointing upward, and I believe CES will be remembered as a turning point.”

  Let’s hope so.

• Shapiro welcomes Steve Ballmer to the stage, and the Microsoft chief begins by noting that 2009, in case you hadn’t noticed, was a year of profound economic turbulence. But innovation persisted. And with that, he rolls a first video designed to demonstrate his point. It features “one random guy’s” experiences with technology this past year, namely Seth Meyers of “Saturday Night Live.” Seth talks to his grandmother on a Web cam. He plays videogames with a kid and loses. “Before texting existed, I never sent the wrong person a letter telling them they’re a jackass. Thanks, technology….Before Twitter, if I knew what someone’s cat was thinking, I would have had to be an idiot.”

• Ballmer: “We’re going to focus on three things tonight. The [first is the] increasing importance of the small screen, the ever-evolving PC and the future of TV. The second is the cloud. Third is natural user interface–NUI technology. The last few decades have been absolutely stunning in the changes they’ve brought.”

• And here’s the sound byte of the evening: “We Bing. And we Bing. And we Bing Bing Bing. At least in my world.” Ballmer says 2009 is a year in which the company has made incredible progress with Bing. “We added 11 million new users….We redefined what search should do for users–we work to understand user intent and anticipate what users are really looking for. We know we’re at the beginning of a long journey, but we think we’re off to a good start.”

  There’s some news about Bing today, a distribution deal that makes it the default search engine on HP PCs in 32 countries.

• Also figuring prominently in 2009: Xbox. Microsoft first launched it at CES in 2001. Today, there are over 39 million Xbox 360s around the world. And more than 500 million games. The console has generated $20 billion in total game revenue.

• Ballmer is moving on to the mobile space now. Windows Phone–technically Windows Mobile 6.5, a necessary stopgap on the path to 7.0–which debuted last fall in a nimbus of disappointment. Ballmer notes that Microsoft is announcing a new Windows Phone partnership today with T-Mobile, which is bringing HTC’s HD2 phone to the U.S. He says little about Windows Mobile 7, Microsoft’s “modern” mobile operating system, which at last check was scheduled to arrive at market sometime in late 2010.

• Ballmer is talking up Windows 7 now. PC sales jumped 50 percent the week the OS debuted, he says. And according to research outfit NPD, sales of Windows PCs grew 50 percent over the 2009 holidays and retailers sold 63 percent more PCs than they did this time last year. Gartner (IT) now sees three percent PC unit growth in 2009–nearly 300 million PCs shipped in 2009. For 2010, Gartner sees a jump of more than 12 percent.

  “Windows 7 is by far the fastest-selling OS in history,” says Ballmer. “Clearly, consumers are saying there’s never been a better time to be a Windows 7 PC….Windows 7 is a rising tide that’s lifting all boats in the PC business.”

• Ballmer calls Ryan Asdourian, senior product manager for Windows, to the stage. “We’re going to see some of Ryan’s favorite hardware and software,” he says. Among them the Sony (SNE) Vaio L–an all-in-one built for high-definition entertainment–and the Asus NX90, a slick-looking laptop designed with help from legendary audio firm Bang & Olufsen.

  “Being in Vegas, you’ve got to look sexy,” says Asdourian. Ballmer: “Good thing we brought some PCs.”

• Next, some software demos–Ray Kurzweil’s Blio Ereader App?, then a new Skydrive collaboration in Windows Live. Ballmer: “Developers baby! Developers! I love the people who’ve built this stuff.”

• Ballmer moves on to Windows Media Center and Mediaroom 2.0, which will now deliver live and on-demand TV through set-top boxes, PCs, and Windows Mobile devices like the HD2. It is coming to AT&T’s (T) U-verse. Streaming video on the HD2 looks pretty slick.

• “The world of entertainment and content will come in different forms and flavors. But no matter what the source, Windows PCs will offer the greatest entertainment experiences in the world,” says Ballmer. And with that, he shows offs some new slate PCs. Sadly, the Courier–the dual-screen multitouch device that many had been hoping to see–is not among them, as BoomTown reported earlier today. There are, however, some cool-looking offerings from Hewlett-Packard (HPQ) and Archos.

• Ballmer rolls another Seth Myers video, “Milestones in Technology.” Not funny. Yeah, I don’t really miss “Saturday Night Live” at all anymore.

• Robbie Bach, president of Microsoft’s Entertainment & Devices division, takes the stage. “Computer science is the only science bounded solely by our imaginations,” he says, referring to Xbox. “2010 is going to be a landmark year for Xbox customers. We’ll be offering the best line of Xbox 360 games.” Examples: Mass Effect 2 and Splinter Cell Conviction. Also an episodic “psychological action thriller” called Alan Wake. “Imagine ‘Lost’ written by Stephen King, filmed by David Lynch,” implores Bach.

• Bach: “What ‘Star Wars’ is to film, what Harry Potter is to fantasy books, Halo is to videogames.” And with that, he rolls some video of Halo Reach that I can’t see because I’m watching the event remotely. The game is coming in the fall of 2010, but will be available as a multiplayer beta on Xbox Live this spring.

• Bach announces Game Room for Xbox Live! More precisely, a vintage gaming service that offers 30 classics from Atari, Intellivision, etc. The company plans to add over 1,000 games to Game Room over the next three years.

• And here comes the pitch for Project Natal: “We’re at an exciting inflection point in tech, where we can create an experience that is more intuitive. With Natal we’re freeing you from the last barrier, the game controller.” Bach rolls a video of the folks behind the Xbox’s new natural user interface, or NUI, which is due out later this year. “Project Natal will be available this holiday 2010….It will work with your existing Xbox 360.”

• “When I said 2010 was going to be a big year for Xbox 360, I was lying: 2010 is going to be the biggest year in Xbox history!”

• Bach wraps things up with some big-picture remarks and–well, I guess that’s it. He leaves the stage and the house lights come back up.

Considering the ongoing skirmishes going on right now between Amazon and Google over digital book publishing, it’s more than ironic that Amazon CEO and founder Jeff Bezos was one of only a few initial investors in the search giant.

But–in one of the many interesting details in New Yorker author Ken Auletta’s new book, “Googled: The End Of The World As We Know It”–it was indeed Bezos who invested $250,000 in the start-up in 1998 at four cents a share.

(Some previous reports have had it at six cents a share and at a $100,000 level.)

Three of the others, according to Auletta, all of whom ponied up the same amount, were Stanford University computer science professor David Cheriton, entrepreneur Ram Shriram and Sun Microsystems (JAVA) co-founder Andy Bechtolsheim.

Later, more angels invested in Google (GOOG), followed by the big $25 million venture round by Kleiner Perkins and Sequoia Capital in mid-1999.

While it was known back when Google went public in 2004 that Bezos held about three million shares in the IPO (Auletta said it was precisely 3.3 million shares), the book has a lot of the details about the meeting between him and Google co-founders Larry Page and Sergey Brin in the Menlo Park, Calif., garage of current Google exec Susan Wojcicki.

He had been brought there, according to the book, by Shriram, who had sold his company, Junglee, to Amazon (AMZN) in 1998.

“I just fell in love with Larry and Sergey,” Bezos told Auletta in an interview–not that there’s anything wrong with that considering the flip-flop relationships of Silicon Valley.

He’d presumably be more in love–and less inclined to be fighting Google, first in search with A9 and now in online publishing–if he had held onto those shares.

That stock would be worth $1.6 billion today.

But a spokesman for Amazon declined to comment on what Bezos did with his Google stake, noting it was a personal investment.

Interestingly, Bezos is also an early investor in the current hotsy-totsy microblogging start-up, Twitter.

A part of Auletta’s book, which is slated to come out Nov. 3, is in this week’s New Yorker in an excerpt called “Searching for Trouble.” It is, oddly, not available online.

In any case, the piece is mostly about the various ways Brin and Page dissed big media moguls, figuratively (destroying old media advertising business models) and literally (showing up at meetings sweaty and wearing skates and gym shorts).

Good thing they never did that to Bezos.

Please see this disclosure related to me and Google.

It looks like Carol Bartz will be taking on the thankless role as new Yahoo CEO.

Sources close to the situation told BoomTown–which had first named the former Autodesk CEO the top pick last week–that Bartz (pictured here) has been approved for the job by the Yahoo board and has accepted it.

The Wall Street Journal is also reporting the move.

The pick is one of the safest Yahoo (YHOO) could have made, which is typical for it, choosing an experienced and strong public company CEO, but one without a lot of experience in advertising or the Web 2.0 Internet.

Sources close to the CEO search said that the Sunnyvale, Calif.-based company’s headhunter, Heidrick & Struggles, has told many that Yahoo would also be looking for a strong No. 2 with more Internet and product experience if a CEO with less online background was selected.

Candidates for that position are numerous.

That job is not likely to fall to its current incumbent, Yahoo President Sue Decker, although Bartz could choose to keep Decker, given her experience and depth of knowledge about Yahoo.

But it could be a little odd, too, if Decker stays, since she was also vying for the CEO job and was one of the top internal candidates.

But sources close to the Yahoo board said that many inside and outside the company would have reacted badly to a Decker appointment as CEO, given that she has been No. 2 to outgoing Yahoo CEO and Co-founder Jerry Yang.

The pair have presided over a decline in Yahoo’s business and an even deeper one of its stock.

Sources who have spoken to Decker said it is more likely she will leave the company, and had stayed this long out of loyalty to Yang.

Most controversially, some are concerned about Bartz’s possible closeness to Decker and Yang–Bartz serves on the Cisco (CSCO) board with Yang and the Intel (INTC) board with Decker–seeing the choice as an attempt by Yang to stay in power at Yahoo.

Yahoo’s board has also gotten a lot more rebuffs from outside execs than expected for the top spot, because of its major challenges. While rich in assets and online traffic, the company has suffered over the last year from a range of internal and external troubles.

In a reaction piece to the possibility of making Bartz the CEO of Yahoo I posted last week, the reaction was mixed, with some lauding it as an important move to steady the long troubled company, while others called it problematic for the Yahoo leader not to have a deep Web background.

One thing is sure: Bartz does know tech, unlike former CEO Terry Semel, who hailed from Hollywood. And she also knows how to run a company like clockwork, unlike Yang, who–while inspirational–has had a rocky tenure and has been considered weak in execution.

With an upcoming fourth-quarter results report on Jan. 27 likely to be a disaster, Bartz will have a lot on her plate, including working out a much expected search partnership with Microsoft (MSFT) and deciding what to do about the constipated deal to buy Time Warner (TWX) online unit AOL.

And, oh yes, fix Yahoo’s troubled graphical ad business and weak morale!

Early investor response to Bartz has been muted, at best, despite her solid credentials.

Bartz, 60, is certainly an experienced and very well-regarded tech exec, with the talent to turn things around. She served as chairman, president and CEO for 14 years at the San Rafael, Calif.-based Autodesk, which makes computer-aided design software for engineers.

While there, Bartz presided over huge growth at Autodesk (ADSK), stepping down in April of 2006 to spend more time with her family, and has since served as its executive chairman.

She also put in stints at other big tech companies, including Sun Microsystems (JAVA), Digital Equipment Corporation and 3M (MMM).

According to her resume on Autodesk’s Web site, Bartz holds an honors degree in computer science from the University of Wisconsin.

Bartz is also on the boards of a blue chip list of tech companies and organizations, including Intel, Cisco Systems, NetApp (NTAP), and the Foundation for the National Medals of Science and Technology.

She is also exactly the kind of serious, seasoned public company CEO with tech experience whom Yahoo’s board has told investors and others it is looking for, with skills to pull off mergers and think strategically.

But Bartz also was in charge of a more old-school kind of tech company and has less experience in the faster-moving Web environment that prevails now.

Although she toughed it out successfully, Bartz underwent difficult times during the Web 1.0 era, in fact, when investors were worried about Autodesk’s prospects in the online era.

Most critically, Bartz also has less advertising experience, which is Yahoo’s principal business.

In addition, Autodesk is half the size of Yahoo.

Nonetheless, she is well-liked in the tech community and has ties to key companies Yahoo must deal with, including Microsoft.