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November 2005 Archives
November 29, 2005
Water into Wine: Monetizing Open Source via On Demand
A SVW guest column by Greg Gianforte, CEO of RightNow Technologies.
If steel were free...
Imagine a car company that got its steel for free. So, instead of spending its money on costly raw materials, this company could invest in high-value differentiators such as better vehicle design, build-to-order manufacturing, and superb customer service.
Now imagine that this company also offered customers completely care-free car ownership; Its customers would never have to worry about gas or oil changes or insurance, because that would all be taken care of for them. All they'd ever have to do would be to get in and drive.
Obviously, that would be a great deal for the customer. Plus, with its cost-of-materials reduced to zero, the company could operate quite profitably while offering its extremely compelling value proposition.
This, in a nutshell, describes the business model of an on demand software vendor using open source technology. By eliminating the cost of databases, operating systems, and other infrastructure components, open source technology allows an on demand vendor to invest more in development, hosting, and services. And by providing software as a service, the on demand model frees customers from the valueless, budget-sucking burdens of IT ownership.
In other words, on demand software delivery is an extraordinarily effective way to monetize open source.
On Demand Applications
To understand how the "water" of open source is transformed into the "wine" of business value, let's first review the case for on demand applications. Customers are embracing on demand applications because they prefer to spend their money on application functionality (which has lots of value to the business) rather than the ownership of IT infrastructure (which has none). On demand vendors enable customers to achieve this objective by hosting and managing the supporting infrastructure for the application; delivering functionality where and when it's needed via the Web.
The customer doesn't care which operating system or database the on demand vendor is using in the hosting facility, as long as the application is scalable, reliable and secure. So on demand vendors are free to leverage open source solutions such as Linux, MySQL, and Apache to keep their infrastructure costs, and thereby invest more in important value-adds such as multi-version hosting architecture, and implementation support.
RightNow Technologies
RightNow offers a prime example of how this formula works. We've pioneered a wide range of CRM innovations, especially in the way our software automatically learns about customers from their behaviors. We've built a uniquely sophisticated hosting environment that has supported over 1 billion customer interactions on behalf of our clients in the past few years at 99.98% reliability. Plus, our enterprise-class hosting capabilities let customers upgrade when they want to, unlike other on demand vendors that force their customers to upgrade simultaneously.
We allocate significant resources to ensuring the success of our customers through a highly differentiated engagement model, closely tracking the effectiveness of their implementations and pro-actively pinpointing opportunities for improving their ROI. We've also grown revenue for 31 consecutive quarters and have been profitable since we went public.
All of this has been made possible because we decided to use open source; rather than become just another distribution channel for monopolistically priced technologies from Microsoft and Oracle. As operating systems, databases, Web servers, and other infrastructure components become increasingly commoditized, there is simply no good reason to pay through the nose for proprietary solutions that offer no discernible functional advantages over their open source counterparts.
So, while RightNow is not an open source vendor per se, it's hard to name a company that's more effectively taking advantage of the economics of open source.
Every business should strive to maximize the value it delivers to the customer and minimize the cost of doing so. The combination of on demand and open source allows us to do exactly that.
-Greg Gianforte, CEO and Founder
RightNow Technologies
www.rightnow.com
Greg has written several guest columns for SVW, including:
"Software lemmings head for the platform cliff"
"Most startups should avoid venture funding, not pursue it"
You can also purchase his latest book, "Boot Strapping Your Business,"
through the affilate link.
November 29, 2005 |
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Understanding cultural APIs--the key to successful applications
I'm behind in my emails and other communications, my apologies. The problem with standalone journalism is that there aren't any sick days; the blog always needs feeding.
My cold gave me a chance to think about my tag line for Silicon Valley Watcher: "reporting on the business of Silicon Valley;" and I decided that I prefer: "reporting on the business and culture of innovation."
That's because I realized that I write a lot about the
I see that the links between new uses of technology and changes in language/ideas/behavior are getting closer --and faster-acting-- than ever before.
And I plan to write more on that subject, because those cultural changes will shape the business side of new companies.
The new generations of startups are more consumer-oriented than ever before, which means they have to have a decent understanding of the somewhat shape-shifting cultures of their markets. If their products/services don't have the right cultural interface, they will fail.
It should be one of the new rules of the new age: Learn the API of the culture you are targeting --preferably before you start your company (you might be surprised at how many startups have very little knowledge about their potential customers.)
Also, living here it sometimes feels as if we are already living in part of the future. We get to be the canary in the coal mine, possibly able to warn others of what's ahead.
I hope my choice of metaphor is a poor one, and is not reflected in the health of my profession (journalism) and its meeting with the future. :-)
November 29, 2005 |
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November 28, 2005
A podcast on Silicon Valley culture and other things. . .
By Tom Foremski, Silicon Valley Watcher
I did another podcast with Sam Whitmore, of Media Survey, as we strolled through a nearly deserted Fisherman's Wharf Sunday evening. It's up and ready:
From Media Survey:
* This week we catch up with Silicon Valley Watcher editor Tom Foremski, who tells us about SVW’s growing interest in the culture of the Bay Area, and updates us on the concept of the Rooster Club.
Want to hear the audio? The SWMS Tech Media This Week podcast is now posted (12 minutes, 55 seconds).
Click on this link to listen to the Tech Media This Week podcast right now:
http://slapcast.com/users/SWMS
November 28, 2005 |
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One of the new rules of the new society (when everyone is a publisher)
By Tom Foremski, Silicon Valley Watcher
What is socially acceptable to blog about? That's one of the questions I have pondered when everyone can be a publisher, and when most in my social circle are publishers/bloggers.
And the answer is simple: if you are at a private event, among your friends, then everything is off-the-record you do not publish anything that could embarrass anybody, or republish anything that was said/done unless you have an agreement to do otherwise.
That has to become one of the new rules of our new society: Everything in a social setting is off the record unless agreed otherwise.
Because if a person wanted to broadcast to the world, then they themselves would publish it to the world. For example, if I say something to three people, I only wanted to say it to those three people, not the world.
The exception is a press/promotional/public event or announcement. Otherwise, in social situations, everything said is off the record unless otherwise agreed.
November 28, 2005 |
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November 25, 2005
Murdoch: says newspapers stripped to the bone--no more cuts
"They have already all stripped all the costs out, now they have to depend on advertising. And that is certainly under threat.. . . Outside New York, it's all monopoly newspapers," Murdoch added. "Some have good work in them, but it tends to be over-written, boring and elitist, not a reflection of the general mood of the public.
"And I think you're going to find their circulations falling more than they have already have."
I have been asking what happens if the old media dies before the new media has the business models to support the quality of journalism that we need in our society. Media is how society thinks, and we have some big issues ahead for which we need a thriving and robust and professional media.
Related: What happens if the old media dies too soon? The urgent need for solid online news media business models
http://www.siliconvalleywatcher.com/mt/archives/2005/11/what_happens_if.php
November 25, 2005 |
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November 23, 2005
First investments from RSS VC fund
RSS Investors, the $100m VC fund, is about to announce its first investments: RSSI and Attensa. I will have more details next week...
November 23, 2005 |
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Healthline: The search for pharma online gold
. . .drug makers seeking drug takers
By Tom Foremski, Silicon Valley Watcher
http://www.healthline.com/
Googling for healthcare info can make you sick, says Healthline's CEO West Shell. What he means is that you get millions of pages and you don't know which ones to pick. That's where he hopes Healthline, a recently launched beta health care search engine, can help.
It uses doctors, rather than just servers, to help create a dictionary that translates medical terms into common words, and doctors rank the quality of the medical information the search engine links to.
Healthline also offers "health maps" that graphically represent information, such as treatment and symptoms, that's linked to a specific condition. And it has quite a few other ways to slide through--and understand--a lot of important medical information.
"These days, the patient has to educate themselves about treatment options because the doctor patient load has increased tremendously. And doctors love to have an educated patient that understands their condition," says Mr Shell.
(Healthline has a patent on the process of a doctor "prescribing" online information to a patient.)
Steve Case, the AOL founder now building Revolution, which is intended to be a formidable portfolio of healthcare companies, wanted to acquire Healthline, but Mr Shell says it's way too early to sell. "It feels like it is just 1997, there's still a long way to go."
He's been here before. From his bio:
Prior to joining Healthline [April 2005], West served as CEO and President of Sapias... From 1997 to 2001, as chairman and CEO of Netcentives, West created one of the most powerful e-commerce companies, managing over 50 million consumer relationships. . .West successfully led an IPO and, during his tenure, raised more than $150 million in private and public funds from leading investors and strategic partners. . .
Mr West points out that there is a lot of money coming into the health information sector, and much more in the future. "There is just $300m from pharma's $600m advertising spend going online, and that is projected to grow to more than $2bn within two years."
The drug companies are enthused because they can better target potential drug takers by attaching their marketing messages to the health search query. And adverts on search pages convert much better than a scattershot TV or print magazine ad campaign.
The problem is that there isn't enough inventory of online content to satisfy pharma and other advertisers. Which should be an opportunity for Healthline because it has a fair amount of its own easy-to-understand content created by hundreds of doctors.
Owning your content is a smart thing to do, because you never know when you might run smack dab into a robot.txt file that bars your spider from indexing a web site--and this will begin to happen more and more as content increases in value.
Content owners will start glueing their content to their sites, especially since there is going to be a lot of money to be made from all the pharma gold, plus many others pushing their way into this market.
Content is going to be where the value is, and less so in the index. Because indexes are created by servers and content is created by experts; one is cheap and plentiful and the other is expensive and limited.
About Healthline: http://www.healthline.com/aboutus.jsp
November 23, 2005 |
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November 21, 2005
Intelligent design: Devilish or Divine?
By Tom Foremski, Silicon Valley Watcher
The religous discussions around intelligent design cropped out during my recent dinner with Irving Wladawsky-Berger, IBM's chief strategist on Linux and all things open-source/industry standard.
I mentioned I had seen that day, a headline that said the Vatican had spoken up against intelligent design, but I did not know on what basis, I hadn't read the article.
We chatted about intelligent design, and the premise that an entity called God, would interfere in the universe in order to create the earth, and mankind. I commented how absurd this is, whether you are religious, believe in God, or not.
In fact, the premise is nothing less than blasphemous. It assumes that God needs to intervene in creation, at various points, to create humanity and the planet's abundance of life.
Intelligent design assumes that God could not get it right the first time: the creation of a universe in which the natural qualities of matter, energy and time result in the emergence of life and ourselves--a perfect manifestation of the original design.
Intervention in the original design could be viewed as devilish rather than divine.
- - -
Related:
The remaking of IBM: A chat with IBM chief strategist Irving Wladawsky-Berger
November 21, 2005 |
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Thinking Big--the need for a new, more powerful, more energy efficient internet
By Tom Foremski, Silicon Valley Watcher
The best entrepeneurs know that it is important to think big, because big ideas excite and motivate people.
Applying this concept to the internet, I wondered what type of internet business could be started that had the potential to be the largest, and what kind of business would it be?
Would it be a larger Yahoo? Or maybe a mega online retailer combining an Amazon and Ebay?
In fact it is none of the above or any other combination of internet companies that you, or Wall Street can imagine.
The largest potential internet business would have to be the internet itself.
But how could a startup create a competitor to the internet? The capital costs of a new internet would be staggering, let alone the marketing, and all the rest.
Well, let's not get distracted by big investment numbers just yet. Let's consider what would be the most important characteristic of a successful new internet: It would have to be compellingly better and cheaper than the old internet, by several magnitudes preferably. And if we were designing a new internet today, it would look nothing like the patchwork of systems in use today.
The design of a new internet would mandate using the highest cost performance IT architecture available, which means industry standard hardware, open-source software components, and a fair amount of Big Iron--large computer systems to handle large computational problems more efficiently than clustered smaller systems.
And the design of a new internet would require special attention to electric power consumption because energy costs are now a large factor in cost/performance calculations. And those costs will increase as we move further from peak oil production.
Individuals, companies, countries, are all seeking to lessen exposure to energy prices and supplies. Because the consequences of being over-exposed raise costs in a world where competitive leadership is all about being the lowest cost/highest quality producer/provider. Not to mention the disruption to trade and society from wars over energy resources.
We know the internet is very important to our future, and to those in other countries too. It is a shared global platform that will gain, not lessen in importance. And therefore it should be powerful, incredibly reliable, and ubiquitous, and very low in energy consumption.
And such an internet could be built with today's components and technologies and be a boon to all users. It would not require the invention of any exotic technologies.
A new internet would vault digital divides and network the entire world population because the edges of the network could be accessed by inexpensive digital devices: digital phones, simple PCs and notebooks, using processing cycles within the internet.
Building a new internet could become a symbol for a global civilization based on collaboration and understanding. And that is what Google is doing, imho.
November 21, 2005 |
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| Tag: Future Watch
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November 20, 2005
Simon London, Financial Times management editor is leaving San Francisco Bureau
Simon London, a former colleague of mine, and management writer for the Financial Times is leaving the global business newspaper and is joining McKinsey, the leading management consulting firm that publishes the acclaimed McKinsey Quarterly.
The FT San Francisco bureau has never managed to send anyone back to London, once here, nobody returns: Nick Denton, Roger Taylor, Andrew Heavens, Louise Kehoe, Paul Abrahams, Tom Foremski, Scott Morrison, Simon London.
Remaining in SF bureau: Richard Waters, Chris Nuttall (newly arrived).
November 20, 2005 |
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The new rules of competition
By Tom Foremski, Silicon Valley Watcher
Your competition is not your competitors, it is someone's grandmother. . . it is the competition for attention and you had better be good at it.
And you had better give back a lot of value in exchange for that attention--remember, you have to beat grandma.
November 20, 2005 |
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Updated with more comments! The most important rules for today's workforce bar none
By Tom Foremski, Silicon Valley Watcher
My three rules of today's workforce:
--Carry and use your own cell phone/number for business
The workforce now is mobile and temporary even if you have a salaried job. You need to be in control of the center of communications: you.
--Carry and use your own email address even at work
Otherwise your contacts and the relationships you build can be severed when you leave a job, and that is an investment that you have a right to maintain--as does your employer.
--Carry and use your own health insurance
Because otherwise, you will be stuck in a job that makes you sick just to keep the health insurance.
[I've followed these three rules for years...]
From Mitch Ratcliffe: Ratcliffe Blog
http://www.ratcliffeblog.com/archives/2005/11/new_rules_for_2.html
To Tom's rules, I'd add:Incorporate and work on contract rather than as an employee.
This allows you to negotiate the same kind of stock compensation while allowing you to keep your business costs, even the ones you can't get compensated for at work, on your own taxes while increasing the flexibility you have as a working person.
Carry and use your own hardware, building tech expenses into your compensation.
This prevents lock-in to a job through access to technology. Sure, you may have to work with a less impressive laptop, but you're also forced to think more like the people who really buy computers, software, services and so forth.
Update #2 thanks to Neville Hobson at NevOn, via David Newberger-The Geek Guy Rants
Create a blog and establish your personal presence in the new marketplaceIn this new age of global inter-connectivity, linking and influence, a blog is a prerequisite if you want to build your own credibility, be found easily and connect with others. Forget the static website. Forget the fancy brochure. Do a blog. It works - I speak from personal experience.
Join a business network like LinkedIn or OpenBC
However you actively use these or not, they can help establish your individual credibility and provide avenues of contact with others for mutual benefit.
Anybody have any more?
November 20, 2005 |
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November 18, 2005
USA Today's Kevin Maney's Blog...
...and why SBC etc, will give Skype as much rope as they want
Kevin Maney, USA Today's star tech reporter is now also a blogger. Kevin provided me with a once-in-a-lifetime headline opportunity "Column bites Maney" when he became a blogger following a not very blogeriscious column earlier in the year...
So, please welcome Kevin Maney into the bloggerhood, and read his blog: http://blogs.usatoday.com/maney/
Today, Kevin breaks an embargo regarding a Skype announcement because it is already out there. Not bad reasoning, however, being pre-briefed means you know what is speculation and what is not, therefore...
The item in question states that Radio Shack will be selling Skype branded products. Which is interesting.
But, how long will this free ride last for Skype, Vonage, and the other VOIP telephony plays? I think that Skype and the others will be allowed to spend millions promoting VOIP, and then, once it is a stable market, the pipe owners, SBC and the others will close the door--unless you pay up. Afterall, it makes good sense to wait until the "choke-point" is a big, fat neck.
The nice thing about quality of service and service level agreements, etc, is that you need to look inside the packets, and it means you can start to identify the packets, and it means you can route the packets of your partners to the high speed lines, and let the other packets linger--which is bad if you are in the telephony service business.
So, let Skype, Vonage etc, spend millions to educate the market, then the owners of the last mile to the consumer can produce a higher quality alternative--or you pay another extra fee for "Skype" on your already nickeled-and-dimed telephone/cable/cell/DSL unified bill.
November 18, 2005 |
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Great ideas do not make for successful startups and VCs need more V....so say survey results
Interesting survey results from Foley & Lardner on startup companies--things we knew but sometimes forget.
Who was surveyed: "The survey, measuring the attitudes and perspectives of top executives, advisors, outside consultants and investors in the emerging technology industry."
Here are my takeaway points:
-There is a lot of capital wanting to invest in startups but there is a lack of good managers.
-60 per cent said quality of management is single most important factor for success: "Overall market dynamics (18 percent), access to funding (10 percent) and quality of the business plan (eight percent) were distant choices."
-Only 3 per cent said intellectual property was the most important aspect of founding a startup.
My take: This means a good, even great idea for a startup is not enough, you need a great team. If all you have is a great idea you don't really have anything of much value. Many startups I meet won't talk about their "great idea" beyond a certain point but you should be free to talk about your great idea because only you can execute on it. Otherwise, anybody can run with it.
-More than 75 per cent said M&A is most likely exit strategy in next few years.
-IPO is unattractive because of high costs in being a public company and all the other related issues.
-It is very difficult to find directors for startups. "A majority (64 percent) cited “management” as the most important factor—over cash compensation (36 percent) and equity incentives (32 percent) —for attracting qualified directors."
My Take: This is exactly why I have been saying that the next generation of emerging companies, the new rules enterprise/venture will be private. Being private also means your competitors cannot benchmark themselves against you.
And, my favorite quote from one of those surveyed:
“VCs should take more V and act less like a bank.”
My take: Too true. In fact, I meet more ex-VCs these days, using their venture knowledge to run their own companies. It is a knowledge capital world now, uppercase V and lowercase c, is how the Vcs should present themselves, and the better ones do. imho.
More here: http://www.foley.com/ecsurvey
November 18, 2005 |
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Hot or Not? Give ten percent of everything away....Hot!
James Hong, one of the founders of Hot or Not (absolutely brilliant idea) asked me if I could draw attention to a new project, an old idea, but made new.
What this also shows is that the new generation of young Silicon Valley entrepreneurs are not as tight with their money as the old lot of Silicon Valley entrepreneurs, who have given this region a reputation for stinginess while they made out like bandits (John Doerr et al)
Yes, big grants to endow seats of learning in your name are all very well, but it ain't nothing as a percentage of your wealth. Let's see our Valley elite step up to the plate on this scale:
From James's Blog:
"10 Over 100 has launched!
I'd recently been wondering how much I should be giving to charity. What's too much, what's too little? Not belonging to a religion that tells me how much to tithe, it's a big question.
Josh and I started a website called 10 over 100 where we make the promise to give 10% of whatever we make over $100k to charity. So like if I make $150k a year, I would give 10% of $50k, which is $5,000 (pretax, so it really amounts more to being out of pocket maybe $3k)
ANYONE can make the promise no matter how much you make (if you don't make $100k yet, you are promising to start it once you DO make over $100k, and hopefully you will give whatever you can in the meantime). So all you princes and princesses out there, make the promise now!!
The hope is that by creating a rule about how much to give, it will become standard practice and will increase overall giving.. kind of how we have rules for how much to tip in the US. If those rules of social etiquette didn't exist, there would be a lot less tipping going on!"
Do it for Thanksgiving:
November 18, 2005 |
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Heeding the call for finding the new media business models...
By Tom Foremski, Silicon Valley Watcher
My posts over the past few months on the subject of what happens if the old media dies before the new media learns to walk have been picking up a fair amount of interest out.
On Monday, I called for partners to work with SVW to help figure out what the new media will look like.
And I've already got several companies that are very interested in what could very well turn into a historic project. And there are a few other key companies that could very well become involved too, I'm getting quite excited at the possibilities...
Here is my post from this week:
Also, please read the comments, one from Kevin Maney, a newbie blogger from USA Today ;-)
Also:
Editor&Publisher reports:
More Than 1,900 Newspaper Jobs Lost in 2005 Aya Kawano
By E&P StaffPublished: November 17, 2005 1:55 PM ET
NEW YORK It has not been a kind year for the newspaper industry.
With costs rising and circulation on the decline, newspaper companies have responded by trimming a considerable portion of their staffs this year. A review of past news reports offers up a startling number: more than 1,900 jobs have been cut from major and mid-sized newspapers over the past year. That figure does not include cuts at many smaller papers that don't often garner the same headlines.
E&P put together a list:
2005 NEWSPAPER CUTSTRIBUNE
PAPER DATE # OF CUTS
Newsday 9/1 49
Hartford Courant 10/6 14
Baltimore Sun 11/11 75
Orlando Sentinel 11/16 TBD
LA Times 11/16 85
Morning Call (Allentown, Pa.) 11/16 12
Daily Press (Newport News, Va.) 11/16 8
Chicago Tribune 11/16 ~100NEW YORK TIMES CO.
PAPER DATE # OF CUTS
NY Times 5/25 125
NEMG 5/25 65
NY Times 9/20 250
NEMG 9/20 160
Regional Media Group 9/20 80KNIGHT RIDDER
PAPER DATE # OF CUTS
Philadelphia Inquirer 9/20 75
Philadelphia Daily News 9/20 25
San Jose Mercury News 9/23 52HEARST
PAPER DATE # OF CUTS
SF Chronicle 8/1 120
Houston Chronicle 8/19 125OTHERS
PAPER DATE # OF CUTS
The (Durham, N.C.) Herald-Sun/Paxton 1/5 81
Seattle Times 1/14 99
Dow Jones Consumer Electronic Publishing 1/26 97
Boston Herald/Herald Media 4/4 35
Green Bay News-Chronicle/Gannett 5/19 14
St. Louis Post-Dispatch/Lee 8/22 130
Birmingham (Ala.) Post-Herald/Scripps 9/22 43
Find this article at:
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1001524144
November 18, 2005 |
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November 17, 2005
Moderating at Under the Radar. . .startups face the VCs
By Tom Foremski, Silicon Valley Watcher
I haven't been able to post much because of preparation for moderating at the IDB Under the Radar event. I got to moderate all two tracks of the morning session on enterprise mobile apps and the second session of enterprise RFID (radio chip tags).
What was fascinating was how few companies were able to explain what they do. But, let me backup a second and tell you what the event is about.
The Under the Radar series organized by Debbie Landa and Alison Murdock has become almost an institution. It brings startup companies in front of panels of venture capitalist judges. They get rated on their presentation, their business model, and their strategy.
I've been to several of these Under the Radar events and they are always different. This time around there was a lot more energy in the air, a real feeling the valley is back (again...maybe this time, for sure.)
The overall winner of the event was our old friend Zimbra--the AJAX poster child software company.
And overall, the 32 startups presented and interesting mix. But what continues to puzzle me is how few of the startups can say what they do. At least in less than 30 minutes--which is a problem at Under the Radar, because you only get five minutes (moderators are armed with stun guns to enforce the time limit very strictly:-)
I didn't have to reach under the podium and stun anybody--my lot were very well behaved. A mobile apps company called Soonr won the audience vote but the judges preferred Funambol, an open software middleware stackette for the mobile space.
Soonr, I think, deserved a bit more attention. Because when asked what was their business model, they said we have none. Smirks all around, as you can imagine.
But on later reflection, I think Soonr is on the right track. Yes, they lack a business model but, they are focusing on users And this is precisely the right strategy because if you have users you know you have a useful product. If you don't have a useful product, it doesn't matter how clever your business model is.
- - -
The RFID companies on my second panel were a good contrast to the first lot. Interestingly, most of the senior management of those companies had some connection or background in supply chain management.
And supply chain management is one of the big failures of enterprise software markets...so who is to say that RFID will improve this? But at least the people running thse companies knew what a tough problem it is, and were still working at trying to solve it,
- - -
The Under the Radar event was at the Microsoft Silicon Valley center, which is a couple of stone- throws from Google.
This time, in contrast to past visits over the past few years, the MSFT car park was full, and it was early in the morning and there was bustle about the place. It used to be not very busy at all...
Oh, and I spotted Robert Scoble in the cafeteria, MSFT's second most famous employee!
More under the radar stories later in the day...
PS: I will soon start writing a blog for ZDNet, in addition to here, and lately also AlwaysOn.
November 17, 2005 |
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November 15, 2005
Out and about in the valley...think tanks, SocialText and Louise Kehoe
By Tom Foremski, Silicon Valley Watcher
I spent most of Monday in the valley. First in Palo Alto with the Society for New Communications Research, a recently formed think tank. Dan Farber of ZDNet, and Tom Abate of the SF Chronicle, and I are among the members. It's looking at the societal implications of these media technologies that we work with.
Jen McClure put the think tank together and is keeping everyone on track--it should be interesting to see what we come up with.
I also managed to briefly catch up with Mike Manuel, the Media Guerrilla, at Voce Communications. Mike was one of my very first blog reads, and I discovered him because he was writing about me :-)
It was over a year ago, June 2004, I had just left the Financial Times was preparing for my blogging debut (which didn't happen until September.) But Mike, being very perceptive, started asking questions on his blog about what I might be up to. He even ran a survey on his blog, asking his readers to vote on which prominent journalist would become the first one to leave their newspaper and become a full time blogger. I thought that this was very perceptive of Mike, he had connected a bunch of dots and connected them in the right way too, very much as a journalist looks for clues.
His survey said that Dan Gillmor would be the first to leave, but his readers chose the wrong horse. It was myself, a full 7 months before Dan, and....where are the others?
Come on in, the water is a bit chilly but it'll warm up, I know it'll get better. where you are (in a crumbling business model) it isn't going to get better...
- - -
After all the thinking in the think tank meeting Jen McClure, Dan Forbush of ProfNet and I took a languid stroll through the clean, dappled-sunny streets of Palo Alto, which felt like a very pleasant village.
It has always struck me as bizarre that just a couple of miles away, on the other side of highway 101 is East Palo Alto, a tough, poor and unpleasant neighborhood where a much faster pace of strolling is encouraged, if you find yourself there.
American metropolitan areas have always surprised me with their stark and abrupt changes in neighborhoods. The demarcation lines between neighborhoods safe and unsafe often is just the width of a city street, as if a fence separated the two communities. In my home town of London, there is usually a several block buffer zone where thing steadily worsen or improve.
- - -
After lunch we stopped in on Ross Mayfield, head of wiki company SocialText. Ross recently received $4m in Series B funding from SAP, Draper Fisher Jurvetson and Omidyar Network.
Ross put some of the money into a new office on the High Street (where Dan Gillmor is renting a cubicle).
I spoke with Ross about the Rooster Club and he is putting together a wiki that we can use to organize the club (more on that v.soon!)
---
Then I stopped into visit with my former FT colleague Louise Kehoe, who recently returned from the UK helping her mom recover from hip surgery. I'm always hoping Louise could join with me in becoming a journalist blogger, I think she would do well.
As usual, we ran through all the industry stuff happening, caught up on moves among our former colleagues at the FT. Obviously, the pushing out of the FT's editor Andrew Gowers was a brief topic of conversation.
It seems as if the writing is on the wall that the FT might become a a non-Pearson company. . .I think Rupert Murdoch might be the best owner, he understands newspaper brands very well, imho.
- - -
I'm heading back into the valley Tuesday for meetings and a reception in advance of the IDB Under the Radar event, whcih I'll be moderating...I hope to see you there!
November 15, 2005 |
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November 14, 2005
What happens if the old media dies too soon? The urgent need for solid online news media business models
By Tom Foremski, Silicon Valley Watcher
Over the past few months I've been asking what happens if the old media dies before the new media learns to walk.
By which I mean, what happens if we lose much of the old media before the new media business models are formed?
It is Silicon Valley's top companies, such as Google, Yahoo and Ebay, that are devastating the old media business models. But the new media business models have not yet "grown up" to support the quality journalism that we need as a society.
The New York Times, for example, pays about $1.25m a year to have a Baghdad bureau, not to mention the rest of its huge editorial infrastructure. In contrast, online publishing relies heavily on revenues from Google text ads--but Google ads won't pay enough to fund a global network of journalists.
Google's blowout quarter
Google's blowout quarter last month means one thing: the old media is losing advertising dollars faster than we thought.
Those sales are not coming from market share gains against rivals such as Yahoo, since Yahoo also reported a very good quarter due to increased advertising.
And this is just the start of a trend that's likely to accelerate as print advertising sales contracts expire and budgets become free to shift to online advertising.
Swinging to extremes
We know what will happen in a situation like this: We will see a flood of online advertising as the pendulum swings to an extreme, before moving back towards the middle.
Which means that the old media will have its knees chopped from under it. Or perhaps the entire revenue-generating torso will be hacked off.
Media is crucial to big problems
What happens if the old media dies before the new media learns to walk is a crucial question because the media, in all its forms, is the forum in which societies think things through. Media is how the world thinks about important problems and finds solutions.
And this includes Fox news, the blogosphere, and the rest of the entire mediasphere. It might seem a messy way to solve big problems, but that's what the media helps us do. And that requires a professional media corps, not a part-time blogger army. The blogosphere provides checks and balances on the "big" media.
And BTW, it is not blogging that is killing the old media, it is the economics of online advertising versus print. You can pin a rock solid ROI on an online advertising campaign that you could not do with print advertising.
You can track users: who clicked where, and when they did it. You can track the conversion rate in real-time. You cannot do that in print advertising, TV or radio.
Google is a competitor
It is companies such as Google, Yahoo, Craigslist, Ebay, and many other online advertising companies that are killing the old media, not deliberately, but in pursuit of their own business models.
Google is a technology-enabled media company, yet many media web sites carry Google ads on their front page. And Google has a business model that newspapers, and most other content producers, cannot compete against.
Google's costs of operations are so far below that of a newspaper that there is no hope of competing with Google for those ads. So why give up prime online real estate to a competitor? It doesn't make sense and all it says is "I don't know what to do with this space."
It's true that Google does provide welcome revenues to online news sites and other third party content sites. But even those modest amounts might not last. Consider this:
-Revenues from Google.com sites grew 20 per cent in the most recent quarter while revenues from Google's advertising partners grew just 7 per cent.
-Google has introduced "smart pricing" a technology that serves up adverts to partner sites based on how well the third-party content can generate conversions. Poorly converting sites, including the New York Times, might find that they can attract large readership but their Google ads conversion rate is poor compared with Google's search site, and therefore Google will "smart price" the advertisement and charge less for the ad on poorly performing third party web sites, which leads to less revenues to the publisher.
And please remember: ads perform much much better on Google's search and service pages than they do on third-party web sites.
[With smart pricing, conceivably Google could tweak the ad servers to channel more ads through its search sites to make their quarterly numbers...? GOOG does not release quarterly sales forecasts, but, the analyst community does, and GOOG has to pay attention to meet those numbers to avoid volatility.]
-Google has an incentive to channel more high paying ads through its own sites rather than those of its partners and that trend will continue.
It's because it can make more money that way. It is sharing 80 per cent and even 100 per cent of the ad revenues with some selected partners. [It is a large share but why not? It gives Google distribution and reach and it can always grab back the advertising monies when it is ready.]
Big solutions needed
So, if we lose much of the old before much of the new media can take on the roles we need, what then? How will we, as a society, think things through?
We have some pretty big problems ahead to solve. We have the avian flu pandemic looming; we have a growing energy crisis; we have ever larger and more complex problems to solve.
Can the Blogosphere take the place of the old media? Only to a small extent, and that is because quality journalism is difficult to do, it has to be done daily, hourly, minute by minute as big news stories break. And 99.999 per cent of the blogosphere has a day job that is not in media.
Partners needed for historic mission
I am one of the very few journalist bloggers that does not have a day job. In May 2004 I became the first journalist to leave a major newspaper, the Financial Times, to specifically become a full-time journalist blogger, and with a mission to find out and develop the business models for online news and related content.
Over the next few weeks Silicon Valley Watcher will announce partnerships with tech companies, with PR companies, and maybe even with an advertising agency, to help figure out the online business models that can support a robust and healthy online media run by media professionals who make their living completely from online journalism.
Throw away the banner ads
What does it mean to help develop an online business model? It will mean developing a new form of online journalism, in a format that works.
We know what doesn't work: banner ads, skyscraper ads, flashing marketing messages. Those are cultural artifacts, attempts to imprint the old world onto the new. In this online medium, online journalism does not have to look the same but it does need to have the same principles of truth, fairness, and independence.
I have a challenge for our partners: Imagine the space taken up by that banner advert, or a skyscraper ad in a sidebar, and figure out what else could go into that space?
What kind of value, rather than marketing messages, can you create in that space for the community of readers of SVW? What kinds of editorial products might be needed? What is the format of that mix, what does it look like?
Maybe a large tech company could buy that space for a list of headlines related to a story topic, a type of contextual additional content that would help expand a news story to include many more additional points of view.
That creates value to a reader, from a clearly identifiable sponsor/source.
Or, a PR company could provide a list of headlines linking to stories about its clients, related to the content on the page. Client companies of the PR firm could demonstrate their thought leadership on key topics in the news, while the news is happening, rather than the next day or week...
The PR companies could spread the cost of maintaining that banner-sized "window" across their portfolio of clients. It might also help them maybe grab a chunk of the advertising budgets...
Conversely, advertising agencies could do the same, grab for the PR budgets...
A rare chance to shape the look/format of the new media
These are just some of the things that could be done, and the kind of things that focus on value to the community rather than spin.
It's a chance to help define the way online media looks for the next decade or more. What the format will be, what kinds of editorial/business model combinations work best.
And if we figure things out together, then everyone in the online media world wins, because everyone will be able to follow the same format.
It's a chance to grab a place in the history books, to help define the shape, the look-and-feel of a new media. So let me know if you can join us in this noble venture :-)
tom at SiliconValleyWatcher.com.
- - -
Please see:
The most troubling question in media today...
Reverse the Google pay per click model
November 14, 2005 |
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November 10, 2005
Link Love--an occasional column of tidbits
There's some fine analysis of media's plight over on my good buddy SF Chronicle's Tom Abate's blog: mini media guy-a conversation about new media business models
Bringing home the bacon in a startup
Jason Mandell says his friend Jody Thelander...
recently conducted a survey that uncovers executive compensation among pre-IPO companies, providing in-depth data on base compensation, bonus and equity distribution within biotech, medical device and computer technology areas. More than 20 VC firms and 150 companies participated.
Of interest:
It doesn't pay to be a founder/CEO: non founder CEOs are compensated 10-20% more than founder CEOs. Top dog CEOs can have more comprehensive compensation and more equity than the founder. Seems to suggest founders are not nearly as sophisticated in negotiations as well.Not much difference between medical devices and biotech; people generally presume that biotech pays better.
The number of companies and VC firms that eagerly responded to the survey was impressive. Thought it would be harder to get the surveys completed. This shows that people are very curious about what is “typical” and seeing if their compensation packages are competitive. This includes VCs as well. Showed at the end of day that vc firms and portfolio companies are aligned in terms of finding out what is competitive
. . .
Canadians know how to innovate says PwC
Waterloo, Ontario is top innovation center outpacing Canadian and US centers, (mostly) so says a new PricewaterhouseCoopers report.
Lots of interesting numbers such as:
investors in local technology firms received a more than seven-fold increase in shareholder value at the time of exit. . .The report also found that in the past decade more than $1.8 billion has been spent to acquire 19 successful, privately-held technology companies in the region. Furthermore the Waterloo region is responsible for an impressive 10% of all IPOs completed by technology companies on the TSX over the past eight years. The report points out that a portfolio of Waterloo region public technology companies generated an internal rate of return of 26% since 1994, out-performing both the Nasdaq Computer Index and the S&P/TSX Capped Info Tech Index.
Impressive numbers I have to say. Shame about the spam-like title of the report:
Making Magic in Waterloo Region: A Report on the Exceptional Investment and Entrepreneurial Potential of Canada's Hottest High-Tech Location
http://www.pwc.com/ca/makingmagic
. . .
Bruggeman breaks boredom by blogging
I haven't checked this out yet, but if Whitney Burk says it's good, then I say take a look :-)
Being John Bruggeman has begun…He breaks the boredom of those long, serious software company meetings by
cranking up the volume on “Hustler’s Ambition” by 50 Cent. He’s the guy
wearing jeans and a t-shirt in a room full of suits. His standards are
high. His patience is short. It took him a week on the job at Wind River to
define a whole new sector of the software industry. Ever heard of DSO?John Bruggeman is a software executive who’s not afraid to tell it like it
is.And now he’s blogging.
Being John Bruggeman http://johnbruggeman.blogspot.com/Many faces. More opinions.Add him to your feed list and find out what’s cutting on his edge.
Read it. Laugh out loud. Think about it. Talk back...
whitney burk
Plus more conversation with Irving Wladawsky-Berger coming up...
November 10, 2005 |
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November 9, 2005
Microsoft abandons PC-centric view but what about Intel?
Today's "leaked" Gates and Ozzie memos show that Microsoft finally "gets it" that the world has shifted towards the Big Computer in the Cloud.
Gates' Copernicus-like revelation that we no longer live in a PC-centric world is late but significant for Microsoft. But has MSFT's PC partner Intel realized the world has changed?
The last time I looked, Intel was quite happily promoting its latest and greatest PC microprocessors, vowing to make them ever more powerful and complex.
But with the Big Computer approach, for most tasks, you don't need super-smart PC clients, because the Big Computer can do the processing far faster than the client.
You just need a client that can render video/graphic/audio bits really fast and needs only a little bit of local smarts. And there are plenty of chips out there than can do this, and that don't cost several hundred dollars, as Intel's top of the line PC chips and chipsets.
Yes, there are many professional tasks that require a powerful PC client system, but for most of us, the Big Computer in the Cloud will do just fine once we get ubiquitous broadband--which isn't far away.
Take a look at my recent post-The Coming PC Crunch:
Like a universe that finally feels the pull of its dark matter gravity and starts to pull back towards its singular moment of creation, the massive PC market could be facing the same pull on its further expansion.The onward rise of the PC microprocessor, more powerful and complex than ever, won't be stopped by Moore's Law. It will much more likely be stopped by the fact that it becomes cheaper, and better to do the processing on a large computer system, rather than on a PC, no matter how fast the PC microprocessor.
November 9, 2005 |
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The remaking of IBM: A chat with IBM chief strategist Irving Wladawsky-Berger
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It's always good to catch up with Irving Wladawsky-Berger, one of IBM's chief strategists and architect of its Linux and open standards policies.
I used to cover IBM when I was working at the Financial Times. It is a fascinating company because it has managed to adapt to the changes in the IT industry with an agility that masks its huge size. It is the world's largest computer company, it is also the largest IT services company, the second largest software company, and one of the largest chipmakers.
And it was the first to recognize and capitalize on the broad industry move to IT services, and outsourcing IT systems.
Now, it is signaling a new direction: becoming a vendor of highly automated business processes. Companies that need to add a business process within their industry will one day be able to buy one off the shelf, so to speak. IBM is collecting best practices within each industry, within each business process, and using applications, middleware, and its integration skills, to create ready-to-go business process modules that can be rapidly slotted into a company's operations.
This means faster time to market, lower IT costs, and having the most efficient business process without having to do it all yourself. It's a compelling vision and one that fits perfectly into the New Rules Enterprise idea that I've been describing here on SVW over the past year.
"Companies want to buy a business process, they don't want to buy applications," Irving explains.
This is also the reason why IBM is not in the applications business and has no plans to acquire a big apps company such as SAP, as some of the leading Silicon Valley analysts (Ray Lane) seem to think it should.
"We don't need to be in the apps business because we can get the apps from others. We pull together the right apps, and the other software and hardware components to create automated, highly optimized business process modules."
But to become a business process vendor requires the adoption of many industry standards within many different industries--a long, slow process. "Once we have the standards in place, such as agreement on document formats and many other categories, we will then have the building blocks that we can use to build the business process modules."
Irving said that the health care industry is a chief focus for IBM, and it is offering free access to its current and future patent portfolio to those companies in the health care sector that adopt industry standards. The goal is to create a common standards platform on which many others, including IBM, can innovate and create far more efficient healthcare systems.
"The Internet was based on common standards, it was more of a standards revolution rather than a technology revolution."
But to remake IBM into a business process vendor will require huge amounts of R&D to figure out how things are done today, how business processes can be best optimized, develop the tools to design and implement automated business processes, and many other related issues.
It will be a long haul but Irving says IBM is well equipped for the job. It is acquiring companies that have domain expertise, and it has its former PricewaterhouseCoopers group of 30K business consultants with multi-vertical industry expertise to draw upon, plus the world's largest R&D labs, spending more than $5bn a year on research work.
Please see: SVW--I told IBM they should buy SAP-- Kleiner's Ray Lane says...
Please see: SVW--These are the new dotcoms of the new rules economy...
November 9, 2005 |
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November 8, 2005
A call for a new Manhattan Project on clean energy--continuing the work of Nobel prize winner Dr Richard Smalley
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(My apologies, but I am a little behind on my emails and posts following my Oregon trip...)
When I returned on Monday, I found out that Dr Richard Smalley, the nanotechnology pioneer had died. I found this out by reading Irving Wladawsky-Berger's blog, in which he wrote a long piece about Dr Smalley, a 1996 Nobel prize winner for the shared discovery of a new form of carbon: buckminsterfullerene, better known as buckyballs.
I met Dr Smalley late last year at a large chip conference. He was the lunchtime keynote speaker and on the stage alongside him, sat about 20 distinguished chip industry veterans such as Andy Grove, chairman of Intel. The audience consisted of more than 2000 of the world's top chip experts.
He was talking about energy. He said that the growing need for energy was the number one problem facing humanity. If the energy problem could be solved, by giving everyone the energy they needed, it would solve all the other top ten global problems: hunger, poverty, war, pollution, poor education, lack of clean water...
Dr Smalley impressed me with his eloquence and his directness. He was not afraid to criticize the Bush administration, saying the reelection of the president would not be good for science research.
He called for a new Manhattan project, focused on finding an alternative to oil--which he said was just one month or so away from peak production.
At the press conference
I was sitting with my buddy Mark Osborne, editor of Semiconductor Fabtech, (based in London). Following the speech, Mark and I went to the press conference for Dr Smalley. There were 5 journalists in the room, waiting for him to arrive.
After about ten minutes Dr Smalley walked in and sat on a tall stool. He looked in excellent shape for a man in his early 60s. He looked to be at the top of his form, both physically and intellectually. He sat and answered our questions. The rest of the journalists left after about an hour, leaving just Mark and myself.
We asked more questions, and then more on nanotechnology, and then more on energy. Dr Smalley diligently answered every question, and explained complex issues with patience and thoroughness. And he just sat and talked, and we sat and asked questions. Until finally, we ran out of questions. By that time, it was almost 4pm. Satisfied there were no more questions, Dr Smalley shook our hands and left.
Impressive dedication
Mark and I were amazed at his stamina and his dedication to the subjects of energy and nanotechnology. I learned a tremendous amount about both subjects.
And we were impressed that Dr Smalley did not run out of the room after 20 minutes or so, as is usual in press conferences. He talked until he was satisfied he had exhausted his audience of all questions.
I remember he talked about speaking at conferences on the subject of energy, and how some of the scientists were so inspired by his vision that they would approach him afterwards and ask to become involved in his work.
This was because Dr Smalley had discovered a calling, one to which he devoted a large part of his life. And he communicated that calling through his presence, through his stature as one of the top scientists of our time, and through his passion.
This is what inspired other scientists to approach him and offer their support, and want to join him in his mission. But there was no organization to join, and Dr Smalley said he didn't want to lead one.
I remember thinking that Martin Luther King didn't want to be the leader of his times, he didn't want to be in the front ranks of civil rights marches, facing hails of rocks and men with clubs and dogs.
New leadership
I remember thinking that Dr Smalley had to take on the leadership role directly, because he was the one that raised people's awareness, and communicated his calling to them so strongly that they felt they had to take it up too.
I did not know that he had had a long battle with cancer, and that probably he knew that his battle might be coming to an end. That's why he wanted others to take on the leadership roles.
If you were ever inspired by Dr Smalley's speeches on energy and solving the world's most serious problems, then take any opportunity to carry on his work, in the workplace and in the home place. It is quite probably the most virtuous mission that anybody can become involved in.
- - -
From the Rice University announcement of his death:
"Rick could focus so completely on his goals, and he could inspire his students and his colleagues to a similar focus," said Kathleen Matthews, dean of the Wiess School of Natural Sciences and the Stewart Memorial Professor of Biochemistry. "He had the ability to persuade others with a rare intensity of thought and spirit. He brought both passion and intellect to his work, and he displayed a degree of dedication and engagement that could motivate others to new levels of achievement."
- - -
Please see SVW: Nobel Prize winner Dr Richard Smalley tells SF chip conference of the urgent need for action on energy issues
- - -
Irving's blog:
Energy - the Single Most Important Problem Facing Humanity
November 8, 2005 |
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November 7, 2005
Coming up: A chat with IBM's chief strategist; more about the Rooster Club; Mossberg and Swisher On Tuesday; and Under the Radar is coming next week...
I just got back from a long drive back from Portland, but I wanted to flag a few things coming up this week:
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Irving Wladawsky-Berger, IBM's vice president for technical strategy and innovation is not a large man but his influence on the IT industry is that of a giant.
He grew up in Cuba, is of Hungarian/Jewish parents and is responsible for leading IBM into the open source world of Linux, open standards and a host of other strategic decisions that have helped the world's largest computer company grow during the toughest years the industry has ever seen.
I remember chatting with Irving a couple of years ago, we were sitting in a very stylish office in the very stylish IBM buildings in Somers, New York, (designed by I.M. Pei of Grand Louvre pyramid fame) and we happened to be talking about blogging.
What do you think about all this interest in blogging, Irving asked me. I said it was a mystery to me and that blogging was done by people with too much time on their hands and read by the same type of person. There is nothing to get excited here, I said, adding a dismissing hand gesture. Irving nodded and agreed and we moved onto something else.
How time flies and how time changes attitudes. We are both blogging now, and I can't wait to swap notes with Irving and tell him why I think blogging represents a class of technologies that is the next big thing.
And it has all the hallmarks of the next big thing (NBT), going through the distinct stages of all important NBT technologies:
--born during a downturn
--it becomes ridiculed and scorned
--it becomes grudgingly accepted
--then it is considered blindingly obvious that it is the next big thing. Think of the PC as an example, but there are many others.
Here is Irving's Blog: http://irvingwb.typepad.com/
The Content versus Index wars is a theme I'll explain a bit more in detail later this week. This is something which is just emerging and I'll tell you why life will get tougher for the search crawlers and scrapers of the internet world. Here is a clue: Servers and software are cheap and getting cheaper. Compelling content creation requires. . .
We will be rolling out the Rooster sign up sheets this week to get the ball rolling on creating a northern silicon valley debate club of sorts-a salon of peers rather than podiums. More on that later this week.
Don't miss the Churchill Club's big SF event of the year, Tuesday November 8, Walter Mossberg and Kara Swisher of Wall Street Journal fame--talking about their favorite digital gizmos and gadgets. BTW, SVW readers get a discount!
Don't forget about the coming Under the Radar VC/startup event that I'll be moderating (for free). Again, another discount for my loyal readers!
Plus more, lots more, so please check back often!
November 7, 2005 |
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November 3, 2005
Hitting the road to Portland...I might road-blog, or not :-)
I love road trips and in a few minutes I'm hitting the road to Portland to meet with Mike Faden, our editor, and also Lucaso, our contributing editor. I'm driving up with my 17 yr old son Matt so it's a special time for me (and hopefully for him too :-)
See you in a few days or maybe even earlier if I get the hankering for some key poking...
November 3, 2005 |
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The Washington Times, comes to same conclusion as Silicon Valley Watcher last week: Google has an interest in keeping content free and keeping the index valuable
. . . It's the start of the content versus index war--human content versus machine produced content
On October 27, I wrote:
The Google database is an attempt to accumulate a massive amount of content for free--just as the balance of power is shifting towards content owners . . . the Google database will devalue all contentGOOG is devaluing the value of content by insisting the only value is in aggregation. People dump content for free into GOOGbase, but GOOG monetizes the index.
This Commentary in Wednesday's Washington Times:
Google envisions a world in which all content is free; and of course, it controls the portal through which Internet users access that content. It would completely devalue everyone else's property and massively increase the value of its own.
From Reining in Google by Pat Schroeder/Bob Barr November 3, 2005
I'm glad my reasoning checks out and I wouldn't want to accuse Washington Times of copying my thoughts on this issue about copying :-)
I think it is shaping up to be content against index war--and human against machine, as I conclude:
.
. .Creating content is hard, but the human labor expended results in something of value.Dumping content into the GOOGbase and making it free devalues the labor of people and rewards machine-based content production: Google's index pages. imho.
November 3, 2005 |
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Microsoft's potential Google-killer play: Taking a page or ten from the folks at Infinite Loop...
November 3, 2005 |
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Microsoft cannot match Google's pace of innovation--but there is one strategy that can help it compete and I'll tell you what it is...
There is one strategy for Microsoft, if it is to hold its own against Google, and the "Live" announcement this week is just one segment of it.
MSFT only has one main strategy open to it, because it cannot compete against Google on Google's terms.
Let me explain: Google is faster at innovation than any other organization of any size.
It is structured in such a way that self-organizing teams of innovators form naturally within Google, and they make it past various checks and balances on the way to becoming full fledged beta business projects.
The teams of innovators within Google compete against each other, but they leverage the power of the GOOG, the planet's most powerful and most scalable computer system.
In today's web 2.0 world (it's actually Web 0.2--we are still very early) it is all about knowledge capital, not money capital, because the infrastructure is already there. There is no need to build a data center or reinvent algorithms, etc, it is all part of the infrastructure--both in the public sphere and within Google.
The innovation coming out of Google is "technology enabled" but not "a technology." Gmail, Google Desktop, etc, are all applications we've seen in one form or another before, but they are different, they are search-enabled applications (SEA) and they are integrated, and they are created with simple but powerful software development tools such as PHP, Ruby on Rails, Perl, etc.
And the innovation comes from the marriage of business models around useful, simple SEA/services. And just like a startup seeking a market, Google's emerging business groups rely on market validation (usefulness to users) before continuing to the next stage.
Knowledge capital isn't just salary and benefits, it is about recruiting the best people. But it's not easy to get the best people, it takes more than money. MSFT has tons of money but Google has the better pitch.
It goes to universities and it says to graduates: come work with us because if you want to make big changes in the world, nobody has the same scale, the same ability to make a huge difference in the world than Google.
That's a powerful pitch. Microsoft cannot counter, as it has tried to, by suing Google over hiring away top staff.
And Microsoft cannot match Google's pace of innovation because that is a cultural issue--MSFT's legacy culture cannot change fast enough.
Microsoft has but one strategic choice, imho. And I'll tell you about it in my next post :-)
Please see:
It's not about the money or the stock options. . .thoughts on Microsoft lawsuit against Google for poaching staff
Schmidt reveals Google's Really Big Vision
The game changed, and nobody told Redmond
November 3, 2005 |
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What's that in your pocket? It's Silicon Valley Watcher mobile I hope...announcing SVW to go!
I'm very pleased to announce a technology partnership with the fine folk at FreeRange Communications, in Portland, Oregon. Now you can take SVW with you, and ten other Silicon Valley RSS feeds, for free! There is also a full featured version for $20 per year that gives you more feeds and more control.
We'll be announcing more such partnerships, which showcase interesting technologies and applications. If you would like to partner with Silicon Valley Watcher, please contact SVW Special Projects Honcho Paul Hrisko, (Paul at Hrisko.com)
The FreeRange mobile RSS reader updates quickly and it works with many phones, not just the top mobile smart data devices, Treo, Blackberry, etc. It is fast and all you need is a Java based cell phone.
We only have space for ten feeds but, we will rotate new ones into the reader on a regular basis.
Here are the ten you get with SVW in your pocket!
Silicon Valley Watcher--reporting on the business of Silicon Valley
Good Morning Silicon Valley--the essential morning read.
CNET's News.com--technology and business headlines.
GigaOm--Om Malik from Business 2.0 on the next generation internet.
ZDNet Blogs--Dan Farber and team providing timely insight on the tech industry.
SF Gate.com--San Francisco Chronicle's business and technology news.
The Inquirer Acerbic high-tech news from Mike Magee and pals in the UK.
Media Guerilla Mike Manuel from inside the tech PR world.
Dan Gillmor's Bayosphere --citizen journalism in action.
Triple Pundit Business news from Nick Aster and pals focused on people, planet and profit.
We’ll update these from time to time and we'll feature new feeds regularly. You'll get all the new feeds automatically so please try it out and make sure you carry SVW with you :-)
How to Download Your Free SVW Mobile
Just point your phone's browser to http://sv.mwap.at and download the application.
-Once the application is downloaded, scroll through the menu options to see the functionality, choose your Wap gateway settings.
-Then click “Update”—this will bring all the feeds down to your phone, and later new posts and articles.
-Click “Full Story” to get the whole article pushed to your phone. The navigation is optimized based on your phone type, and is highly functional—even on a Blackberry you can navigate with just the number pad.
Most phones are supported, but it doesn't work on Verizon unless you have a Blackberry or a Treo. And if you have a Treo, you'll need to download Java.
Sign up and receive installation guide by email.
For a more complete guide to compatibility.
November 3, 2005 |
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Tidbits...
Tidbits...
-Craig of craigslist to invest in Wikipedia?
http://www.gradethenews.org/2005/craig.htm
-And Jeff Jarvis of Buzz Machine is up to something citizen-like--maybe with the Grey Lady?
http://www.buzzmachine.com/index.php/about-me/
-Eric Schmidt in recent New York Times article:
I have this fantasy that goes like this," he said at one point. "You are the C.E.O. of a large company, and I come to you and say, 'Give me $1 million and give me your Web site, and we will guarantee you will get $100 million in sales.' Which C.E.O. would turn that down?
Seems like too good of a deal to me...why not do it yourself, you have a fiduciary duty to maximize Google's profits.
-Is it widely known that AOL will not be getting the revenues from the Time Warner publications? Since the merger, AOL has booked the online ad revenue from the Time Warner magazines, but not anymore. Now the magazines will get the online revenues and have an incentive to build out their online presence.
November 3, 2005 |
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November 2, 2005
DraLuco is loose in PDX!
Busy (and wet) week back in the city of roses. Perfect weather for DraLuco to seep through the cracks and traverse the shadows in search of new, spicy blood!
Yet between rehearsing two acts for the big show this weekend, helping to set up SVW Mobile (due out any day now), and learning about Pagode (in the most wonderful ways at a most authentic Pagode gathering;), I barely had time to suck anyone's blood!
Although DraLuco did make it out Sat night to Portland's party of the year (and bad ass benefit for killer org the City Repair Project) to dance the night away with a zombie cowgirl!
I tried to squeeze a trip to Vegas in... ya know, hop the Further Bus for a ride down to At40 and Vegoose to cover the Merry Pranksters and, oh, just about EVERY musician you could think of (including Michael Franti whom I met on Sat night and whose date said she liked me better (NOW I'm blushin')... But alas, my "Creative Content Producer" badge doesn't come with an expense account (at least not yet.)
But that can't stop DraLuco from finding new blood (wahaha)!
And speaking of new blood...Wouldn't it be great if someday soon we all had sight, sound, and speech capture? We could ALL be sharing our lives with our communities, uploading on the go without interference in our "real" world, physical lives and without having to sit in front of the box (yea... transparency.)
I see creative content producers everywhere. And I see creative content everywhere. The community needs to be sharing their amazing adventures and, at this point, the majority are not. Its time to bridge the gap and make more accessible and easy to use tools so EVERYONE can start creating, producing, and consuming. And it's time to find language that everyone can understand too.
And now the bloody, round up of spice from the digital (and REAL) tribes:
-Just started another blog at blogitquick. A good KISS (keep it simple, stupid) app. Small. Fast. Accessible to those without high end phones. Yea, now there's no excuse.
-I booked a gig at Mississippi Studios for Wed, Dec 21st, 8pm. If you're ever in Portland and looking for an intimate night of great acoustic music and wicked atmosphere, check out this venue(like, for example, on the 21st ;). And if you want to take your date for a fancy bite to eat before the show, check out Bold Sky Café and Studios right next door (like I did with Franti's date the night before.)
-Sat night's party was rocked hard by March Fourth Marching Band and Solovox, far and away two of Portland's hottest music acts. Check 'em out next time you see their names around town. It's nice to see organic music that can be played next to electronica and hold its own. Bad Ass!
Oh, yea... and if you haven't seen City of God yet, I highly recommend it (I couldn't have a Pagode weekend WITHOUT watching it!).
Alright, gotta get to rehearsal, build my altar for Dias de las Muertas, and finish editing some documentary video I shot in SF last spring. Look for a full report on the big show plus some special video features comin' your way pronto (or at least as a soon as I feed on the zombie cowgirl!
MWAHaHA! ; )
November 2, 2005 |
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Google hires squeaky clean human rights/ corporate responsibility lawyer as PR chief: Is GOOG expecting more trouble ahead? Will Mr Schrage spearhead GOOG's attack on China's human rights abuses?
. . . where is the Google Foundation chief?
It has taken about ten months, but Google has finally hired a PR boss, Elliot Schrage--as the new VP of global communications and public affairs.
Mr Schrage replaces Cindy McCaffrey. He is a senior fellow at the Council on Foreign Relations and was a senior VP at Gap.
The appointment is interesting because Mr Schrage is not from the computer industry, his talents lie in the field of corporate responsibility and foreign policy.
In the Google press release, it says:
He will manage relations between the company and various stakeholders around the world.
Is Google planning to give/sell stock to countries or other organizations?
Or does Google mean stakeholders in the sense of: having a stake or ownership interest in something...maybe content?
Google has already tussled with several countries such as China, France, Germany and India. Its tussles with the Chinese government led to a secret agreement to limit access to its worldwide index within China.
At Gap, Mr Schrage helped deflect sweat shop and child labor criticism.
Here is a column he wrote for the Finacial Times about China and the need for enforcing laws on intellectual property, among others...
Chinese Quotas Kill the Pain but Not the Problem
Elliot Schrage
The Financial Times, 6 July 2005
Take a look at this bio, penned by Mr Schrage, for:
Child Labor in a Globalizing Economy
Stanford University, Feb. 7-9, 2001
Elliot J. Schrage
Elliot Schrage is a teacher, lawyer and writer with extensive experience working on private corporate matters and public interest issues. In August 2000, he joined Gap Inc., the largest specialty retailer in the U.S., as Senior Vice President of Global Affairs. In his new role, Elliot oversees the company’s government affairs, issues management, and corporate communications functions, and directs the company’s global compliance organization, charged with inspecting working conditions at factories that manufacture products for the company’s Gap, Old Navy and Banana Republic brands.
For the previous ten years, Schrage served as Managing Director at Clark & Weinstock Inc., a public policy and management consulting firm in New York, where he counseled clients on a wide range of strategic business and public policy issues and has special expertise on matters of corporate responsibility. Since 1990, Schrage has served as Adjunct Professor at Columbia University Business School, where he teaches a seminar that explores the intersection of international human rights law and multinational business practices. It was the first, and, to date, only such course offered by a business school in the United States. He has written and spoken widely on this and related topics before human rights advocacy groups, corporations, foundations and trade associations, including Amnesty International, the Carter Presidential Center, the Ford Foundation, Business for Social Responsibility and the World Federation of the Sporting Goods Industry.
With more than 15 years' work promoting respect for international human rights and environmental protection, Schrage has broad experience in public interest advocacy. He has worked with such groups as the Lawyers Committee for Human Rights, Human Rights Watch and the Robert F. Kennedy Memorial to investigate allegations of human rights abuses in Africa, Asia, Central America and Eastern Europe and is the author/editor of numerous reports on the administration of justice and human rights conditions in Yugoslavia, Peru, El Salvador and Haiti. In 1992-93, Schrage created and served as the first director of the Liaison Office on Human Rights and Environment, an initiative of the Nathan Cummings Foundation. Schrage has represented a wide variety U.S. and foreign corporations in international transactions and served as consultant to several multinational corporations and trade associations, helping them draft corporate human rights "codes of conduct," design mechanisms to monitor their compliance and evaluate the effectiveness of monitoring programs. In 1996-97, he helped organize a partnership of the international sporting goods industry, UNICEF, Save the Children and the International Labor Organization to end child labor in soccer ball production in Pakistan, the source for three of every four balls produced each year; a successor project was announced in India in February 1999. He also worked on a team with the American Apparel Manufacturers Association to develop the "Worldwide Responsible Apparel Production (WRAP) Certification Program," a global program to certify apparel factories as meeting fundamental human rights standards.
Elliot received B.A., J.D., and M.P.P. degrees from Harvard University and studied at the Ecole Normale Superieure in Paris. He began his professional career with Sullivan & Cromwell in New York and Paris, where he specialized in U.S. securities offerings, mergers and acquisitions and complex corporate transactions, including project financing for the Euro Disneyland theme park.Schrage is a member of the Council on Foreign Relations, and has served on the American Association for the Advancement of Science's Committee on Scientific Freedom and Human Rights, and the U.S. Dept of Treasury Advisory Committee on International Child Labor Enforcement. His board experience includes the Harvard Law School Association of New York (Trustee), the International League for Human Rights (Director) and the Medicare Beneficiaries Defense Fund (Director). Schrage, his wife and their children reside in San Francisco.
November 2, 2005 |
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November 1, 2005
The SEA change: Microsoft "Live" is Microsoft the follower and this time around that strategy won't work...here's why
The announcement of Microsoft Live seems a couple of years late. Of course, Microsoft has done well over the years by following others that pioneered markets and then cleaning up because of its scale. But following a company like Google won't work for Microsoft this time, because by the time MSFT figures things out the market has moved on.
I spoke with one of MSFT's lead engineers recently and he was telling me about the fantastic search technology that they have in the labs. That it is better than GOOG's. But the conversation has moved on: it's about Search-Enabled Applications now, it really is a SEA change (and the apps are AJAX).
Rebranding some MSN stuff and adding layers of subscription based services is not going to get MSFT very far.
MSFT can live off the fat of its enterprise market but that won't last forever. And it cannot compete against GOOG's low operational costs--GOOG is much more New Rules Enterprise than MSFT. And it will be MSFT's legacy culture and thinking that will sink the company.
BTW, GOOG does not see itself as a MSFT competitor. The fact that it added a few programmers to help out OpenOffice is not significant.
The New Rules business mantra is: just focus on making sure you execute in your own business--the competition will take care of itself.
GOOG just needs to make sure it is always a step ahead of MSFT (and anybody else)--MSFT will take care of itself. Its legacy burdens will see to that.imho.
Cnet's story on Microsoft Live launch:
Gates: We're entering "live era" of software
Related:
The Google Zeitgeist and the walking dead...
The new Dotcoms will eat lunch this time around. Some of the rules of the new rules enterprise
November 1, 2005 |
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Thinktank formed to study the new communications channels and their impact on society
I am very proud to be a Founding Fellow of the Society of New Communications Research, put together by Jen McClure and announced this week. There are only two confirmed hacks out of about 17 fellows, ZDnet's Dan Farber and myself. But I think Steve King, of Institute for the Future probably also counts as a journalist, and more will come, and out of it will come...? We don't know, but that is why this stuff is so interesting.
Here is more information:
The Society for New Communications Research ( http://www.sncr.org), a new international, non-profit think tank, was announced today. The group was formed to provide a forum for research and education and a source of expertise focused on the broad theoretical and practical implications surrounding new communications methodologies, tools and technologies.
The Society will study the impact of emerging modes of communication such as blogs, wikis, RSS, podcasts, videocasts, collaborative tools and the growing phenomena of participatory communications and their effect on traditional media, marketing, public relations and advertising, as well as their broader impact on business, politics, entertainment, culture, education, religion and society at large. Activities will include the development of in-depth research studies, whitepapers, case studies, best practices and standards; industry education, the publication of the Journal of New Communications Research and an annual research symposium and awards program.
The founding research fellows, honorary senior fellows and advisory board members comprise an impressive international group of academics, journalists, media, marketing and PR experts and bloggers. They will be joined by other academics from leading universities, business leaders from industry groups, associations, media companies and large corporations who will be announced in the coming weeks.
The executive director of the organization is Jennifer McClure, a communications expert with 20 years of media, marketing and PR experience, and editor/publisher of New Communications Blogzine, co-founder of New Communications Forum and a graduate student at Stanford University.
Founding fellows, honorary senior fellows and advisory board members include:
• Elizabeth Albrycht, PR veteran and author of Corporate PR, voted one of the most influential PR bloggers by Intelliseek, and editor of Corante's Future Tense blog
• Elisa Camahort, marketing consultant, professional blogger and BlogHer co-founder
• Dan Farber, vice-president of editorial at CNET Networks and editor-in-chief of ZDNet
• Elizabeth Fletcher, Esq., attorney with expertise in publishing and new media
• Dan Forbush, founder and president of PR Newswire's ProfNet
• Phil Gomes, senior counsel, online communications, Edelman
• Tom Foremski of Silicon Valley Watcher and columnist for the Financial Times
• Neville Hobson, ABC and communicator, blogger and podcaster
• Shel Holtz, ABC and International Association of Business Communicators Fellow
• Steve King, founding partner, Emergent Research and senior advisor, Institute for the Future
• Kathy Klotz-Guest, MA, MBA, marketing and media expert and founder of
Powerfully Funny, a consultancy for innovative communications
• Bruce Lowry, director, global public relations, Novell
• Mike Manuel, client supervisor and online strategist at Voce Communications
• Matthew Podboy, co-founder and client supervisor at Voce Communications
• Giovanni Rodriguez, executive vice president of Eastwick Communications
• Jeremy Wright, blogger and author of the newly published book, Blog Marketing
• Philip Young, senior lecturer in Journalism and PR at the University of Sunderland, UK and specialist in media ethicsThe Society held its first meeting in July 2005 to discuss the vision, mission, activities and the group's role in the industry. Since that time additional research fellows, senior fellows and advisory board members continue to be added and committees have been formed. Potential research topics have been defined, such as:
• How to measure a blog's influence?
• How is online reputation evolving?
• How are management/social relations being tested or changed by the use of blogs, wikis, etc.?
• How can we better design online collaborative groups?
• Is online social networking actually fostering "community" or degrading it?
• How is social media impacting internal and external corporate communications?
• How is the marriage of creativity and technology and the evolution of participatory media changing the cultural sphere?
• Is there value to fake communities, false online personalities?
• Are significant differences between those who have been online since age 3 and those who haven't? What does that mean for the future of mass communications?
"The mission of the Society is to investigate, develop and share in-depth and forward-facing insights resulting from our deep ongoing study, learning, and continuous mastery of new communications tools and technologies and the promotion of best practices," stated McClure. "The fact that this research is being developed in an open environment utilizing new tools such as blogs and wikis is also unique. Our discoveries and findings will be made readily available, and all who are interested in these topics can contribute to the discussion and exploration of these issues."
"I am excited to be able to support an organization that will look at social media and new communications as part of a larger social and business picture," commented Elizabeth Albrycht, chair of the research and publications committee.
"Our goal is to help communicate the value, establish the best-practices, and conduct research in advanced communication techniques. I look forward to working with the leaders in this community and assisting in improving the communication process," added Mike Manuel, chair of the best practices and awards committee.
For more information, visit www.sncr.org or call +1 (650) 331-0083
November 1, 2005 |
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Forget Forbes (yawn) read Christine Casalino on how to work with bloggers (no different than journalists :-)
Christie Casalino of PR Week USA wrote a fine piece (and not just because I'm quoted in it) concentrating on the nitty gritty of working with bloggers. Which happens to be just the same kind of advice that you should use for journalists...
Here is the link and some excerpts....
Working with the top echelon of bloggers
Christie Casalino PR Week USA Oct 31 2005 00:00
The simple fact that so many popular blogs exist creates both challenges and opportunities for the PR pros who hope to work with them.
Extracts:
Lynann Bradbury, an SVP at Waggener Edstrom, says it's critical to read relevant blogs daily - and, whenever possible, on an hourly basis - to understand their slant, tone, and point of view and learn whether there's anything unique that you might be able to add to the discussion.
. . .
"It's not that much different than how you would engage the mainstream media in terms of the homework that you need to do up-front," notes Bradbury. "Being well educated about that blog and what that blogger cares about is critical and is a necessary foundation to lay down before you have a conversation with them."
. . .
I would advise PR people to treat bloggers as they would any other journalist," says Tom Foremski, former Financial Times reporter and publisher of the blog Silicon Valley Watcher, "but just make sure that you're talking the same language - spell out if something's under embargo, and what they can and cannot say according to the agreement that you make."
. . .
The way I coach people," says Bradbury, "is that you want to inform rather than influence, involve rather than invoke. If you're trying to influence them to force a viewpoint, you're going to lose."
. . .
(at the end:)
But according to Foremski, there's no cause for concern just because something negative is posted. "In a blogging forum, you can reply," he says. "Blogs encourage discourse and debate, where the old media model just broadcasted into the ether."Technique tips
Do include bloggers in your media strategy
Do remember that blogs are open forums
Do treat bloggers with the same respect as journalistsDon't try to mislead or manipulate with a posting
Don't pitch or send press releases
Don't forget to explain the terms of an embargo
November 1, 2005 |
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Comments
Ike on Social Media Is Not About Conversations... It's About Something Much More Amazing
Allow me to (uninvited) clarify a piece of Tom's thesis.
Conversations are interactive for the participants, and are held solely for the participants.
A conversation that is held for the benefit of a non-participating audience becomes *something else*. People don't talk with each other in front of an audience the same way they would if they were alone.
If you advertised that Tom Foremski, Robert Scoble and Andrew Keen were going to have a conversation about online inte
Tom Foremski on 10 Basic Digital Publishing Skills Journalists/Anyone Should Know...
Yes, you can change the video size to whatever you'd like. Just take a look at the embedd code.
Cog on 10 Basic Digital Publishing Skills Journalists/Anyone Should Know...
I think I would pass almost all of them, but how do you resize a youtube or other embedded video to fit a web page's size?
I know you have to keep the dimensions proportional, but can you just change the height and width, or is there something else you have to follow?
Mike on Startups In LA... Building The West Coast Corridor Of Innovation - 1400 miles Long
There is no place like the West Coast for innovation
Sandy Kotch on Startups In LA... Building The West Coast Corridor Of Innovation - 1400 miles Long
I love the feeling of innovation for 1400 miles- that is the West Coast! Having moved from San Francisco to Santa Monica in the late 90s and being in start-up modes with companies for a majority of that time, it is great to confirm my true feelings all along - that we are in the innovative crux: California! Couldn't agree more that the creative energy in LA is bound to drive the technology here, it is a great place to be - although often expensive to do business!
Tom Foremski on Social Media Is Not About Conversations... It's About Something Much More Amazing
David: I don't think the problem is finding a new term for a stilted conversation, but that 'conversation' is misleading when applied to social media because it's about something that is much more exciting and amazing. Conversation is a red herring when it comes to understanding this next phase of the Internet...
David Shantz on Social Media Is Not About Conversations... It's About Something Much More Amazing
I beleive that the nomenclatures may be what's failing us.
None of our current lexicon really fits exactly:
A CONVERSATION is really an exchange of ideas, with each response being dependant on the other and with the overall context...
A DISCOURSE is more of a formal debate.
PUBLICATION is as you say, to make content available publicly (but seems not to have enough emphasis on exhange)
Perhaps we need a new word.
"Publicly sharing an idea that is
Doug Millison on Social Media Is Not About Conversations... It's About Something Much More Amazing
I enjoyed reading this. McLuhan is worth re-reading, especially his book THE MECHANICAL BRIDE. Digital media are bringing us back to something like the manuscript era, where readers were usually writers who compiled their own books. Now we're creating & compiling our own "books" -- sometimes we call them "blogs" -- by mixing text & image & sound/music online. My "prose+comics scrapbook" format makes this explicit & ushers in a new, interactive scribal epoque, as we let readers become co-cr
Bud Gibson on Social Media Is Not About Conversations... It's About Something Much More Amazing
I agree with your bounds on what constitutes non-conversation, but somewhere in between is conversation. Ten to fifteen comments is often quite interactive. There are also side conversations that can happen in those large comment streams you mention. I've particularly seen this in some buzz threads.
Another small point of contention: you're using a term, publishing, which is increasingly becoming archaic. I tend to think of it as having been replaced by three distinct activities:
Seth Grimes on Social Media Is Not About Conversations... It's About Something Much More Amazing
Personally, I think "conversation" works quite nicely, but I'd guess I'd define "conversation" more expansively than you do. Actually, I kind of like the WordNet definition: "the use of speech for informal exchange of views or ideas or information etc." (http://wordnetweb.princeton.edu/perl/webwn?s=conversation), which fits what we're doing on/with social media.
In any case, I wouldn't get hung up on conversation/publication. Isn't the point that social media supports both back-and-f
Dave Kellogg on Social Media Is Not About Conversations... It's About Something Much More Amazing
I love the McLuhan quote.
If you read the comment streams on blogs, it's usually not a conversation.
It's usually what an old boss of mine used to call "parallel independent conversations" which is very much in line with the notion of two-way publishing.
Chris Dymond on Social Media Is Not About Conversations... It's About Something Much More Amazing
Question for me is: is it sufficient and to the greatest benefit for legal frameworks to simply consider social media as publishing, or should they adapt to consider a new category - something like a 'permanent conversation'?
In other words should it hold people accountable in the same way it does when the act of publishing and hence the motivations of the publisher are clear? Seems to me that the normative effect of maintaining that legal stance will be to force a change in behaviou
Andrew on Farmville valued $1B More Than Twitter By The Smart Money
The Microsoft deal with Facebook included an advertising deal--the $240M was for a share of the company and for the ad deal.
Thus, saying they bought at a valuation of $15B is significantly inaccurate.
Tom Foremski on Tech Giants Struggle With Copy And Paste...
George, sarcasm sometimes gets lost in translation, my apologies.
Daphne on Analysis: Could $GOOG Face Problems Outside Of China For Its Opposition To Chinese Government?
The Chinese governement has this stigma attached to it, basically don't mess with them. If google is mad enough to take them on, I wouldn't put it past them buying google and sacking the moron who made the decision.
George on Tech Giants Struggle With Copy And Paste...
And that significant lead will result from...adding something Apple has already added?
And that make sense to you?
Steve "@PodcastSteve" Lubetkin on Dirty Little Secrets: Social Media Is Terrible At Promoting Products
Tom, you and I are of the same mind on this. I am so tired of reading blogs or listening to podcasts or watching video embeds about social media people using social media to talk about social media. I really want to hear about specific business uses of social media. As I've said frequently, we need to remember that these tools are just communications channels, and we'll all be better off when we reach that day when it will sound really silly to hear a news headline like "Tom Foremski used Twi
Tom Nocera on Analysis: Financial Times Says GOOG Has Detailed Plans To Close China Search
An excellent analysis, Tom Foremski. I think there could be a great long term benefit for Google by its foray into China. By the timing of its very prominent presence there, coming during the great boom in Internet usage and awareness, Google's retreat, may become a kind of catalyst in the long term memories of tech savvy Chinese...the leaders of tomorrow. I forecast a triumphant return for Google one day, and it will be without the curse of censorship which only helps governments to contro
Jonathan Mendez on Why Ad Networks And Exchanges Will Never Help Publishers
Great post. I believe publishers can have advertising supported businesses. In fact I don't think that's debatable. First though they need better tools to leverage their audience data and their own ad matching systems. Essentially they need to build a new improved display channel. New pub controlled networks could then emerge that would crush the performance of what exists today. Then all the margin eating middle men would vanish and both ends of the transaction get yet more value from the m
Tom Foremski on Is the Future Of News Dependent On The Generosity Of Billionaire Philanthropists?
Eric, What's wrong with making a reasonable profit as a news organization? I agree with you that there is a race to the bottom going on because the econopmics of online news continue to worsen.
At some point, we have to figure out how to reward news organizations doing a good job otherwise we are in serious trouble as a society. That's what I would like to see Mr Hellman's money go towards -- figuring out a solution to one of the most difficult problems we have.
There's not