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Tag Archive | "Amazon"

Tags: Amazon, Apple, Book Retailers, Book Search Service, Bookseller, Buy Books, Digital Books, Digital Copies, Google, Independent Shops, Jeffrey A Trachtenberg, Manhattan, Nbsp, Odd Novel, Palma, Partner Development, Publishers, Random House, Snippets, Strategic Partner

Google To Enter Digital Book-Selling Biz

Posted on 04 May 2010


Never mind its experiments with snippets and the occasional free-but-old-or-odd novel; sometime this summer, Google is going to become a proper (digital) bookseller.  A strategic partner development manager at the company said today that it will go into business by launching a site called Google Editions.

GoogleChris Palma spoke at Random House’s offices in Manhattan, which is one indicator of how important this development may be.  Another is the title of the event: "The Book on Google: Is the Future of Publishing in the Cloud?"

Anyway, Jessica E. Vascellaro and Jeffrey A. Trachtenberg reported afterward that Google will try to establish deals with publishers, and then, "Google says its new service . . . will allow users to buy digital copies of books they discover through its book-search service."  Which should put Google into competition with Amazon and Apple.

What’s more, Google will let lots of other companies in on the game, as Vascellaro and Trachtenberg said it’ll "also allow book retailers – even independent shops – to sell Google Editions on their own sites, taking the bulk of the revenue."

Look for Google Editions to be unveiled in late June or early July.

Posted in SE NewsComments Off

Tags: Amazon, Book Retailers, Book Search Engine, Book Store, E Book, E Books, E Reader, Google, Half A Million, Launch, Legal Challenges, Manhattan Offices, Million Books, Palma, Partner Development, Print Books, Random House, Strategic Partner, Wall Street, Wall Street Journal

Google Editions: Google Plans to Launch E-Book Store This Summer

Posted on 04 May 2010


google_books_modern_logo.jpgGoogle is getting ready to launch its own e-book store and challenge Apple and Amazon. According to the Wall Street Journal, Chris Palma, Google’s manager for strategic-partner development, announced the timetable for the launch of the company’s e-book store during an event at Random House’s Manhattan offices earlier today. Google Editions, as the new store will be called, will launch in late June or July.

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Google will allow book retailers to sell Google Editions on their own sites and, according to the Wall Street Journal’s report, “keep the bulk of the revenue.” Google, of course, also plans to highlight these e-books on its own book search engine. It’s important to note that Google is also still trying to win the right to distribute out-of-print books, but the Google Books Settlement that would give Google the rights to do so is still caught up in various legal challenges.

When we first heard about Google Editions last year, Google’s plan was to offer around half a million books at launch. At the time, Google also noted that it wants its books to be compatible with any device, whether that’s a laptop, phone or dedicated e-reader. Apple’s tablet wasn’t on the horizon back then, but chances are that Google will also want its books to be compatible with this new platform. Given that Google is already using the ePub standard, we can only hope that Google’s plan is to sell DRM-free ePub books.

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Tags: Amazon, Degree In Electrical Engineering, Good Relationship, India 2020, Inventory Optimization, Journeys, Keepsake, Larger Companies, Mass Reconstruction, Massachusetts Institute Of Technology, Masters Degree, Mitra, Right Choices, Saas, Silicon Valley, Startup Strategy, Strategy Consultant, Strategy Roundtable, Technology Entrepreneur, Three Books

Startup Strategy Roundtable: Web 3.0 Choices

Posted on 29 April 2010


roundtable_sign_0410.jpgThis morning I spoke with four entrepreneurs covering a wide range of businesses from an inventory optimization SaaS to an e-commerce site that creates a keepsake of your child’s artwork. They each have different choices to make right now. Move to a different platform? Go nonprofit? I developed my Web 3.0 framework to help entrepreneurs make the right choices moving forward. You can find my Web 3.0 formula here.

John Krech kicked things off with Phitch. This SaaS business offers easy inventory optimization for businesses using QuickBooks. This is a validated business with a few dozen customers who are charged a monthly fee based on the number of inventory items the business is tracking, making this service affordable for very small businesses who also happen to be QuickBooks’ best customers.

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Sramana Mitra is a technology entrepreneur and strategy consultant in Silicon Valley. She has founded three companies and writes a business blog, Sramana Mitra on Strategy. She has a masters degree in electrical engineering and computer science from the Massachusetts Institute of Technology. Her three books, Entrepreneur Journeys, Bootstrapping, Weapon Of Mass Reconstruction, and Positioning: How To Test, Validate, and Bring Your Idea To Market are all available from Amazon. Her new book Vision India 2020 was recently released. Mitra is also a columnist for Forbes and runs the 1M/1M initiative.

Recently John has been getting requests to expand Phitch to work with other platforms, but this is really not the way to go. John has carved out a nice niche for himself – very small businesses that use QuickBooks – where there is not much competition. QuickBooks is widely deployed with millions of users and John says he enjoys a good relationship with QuickBooks. There will be much more competition if he builds compatibility with the platforms used by larger companies. John’s current positioning for very small businesses is very compelling and I encourage him to continue to focus on QuickBooks’ customer base. In fact, he has the right solution for many of the e-commerce entrepreneurs who have pitched at these 1M/1M roundtables and I encourage him to reach out to them as well.

Heidi Allstop introduced Spill, an online community that offers peer-based mental health support to college students.  Heidi explained that there is a lack of mental health services for college students, and even though the universities have a serious interest in providing them to the students, budgets sometimes go unspent. Spill offers a student 24/7 anonymous access to a group of peers on campus to get advice, tough love, a shoulder, etc., and Heidi provides the school with useable data drawn from the interactions. 

With a pilot program in place at the University of Wisconsin, Madison and four other institutions, and seven more being set up over the summer, she seems to have a good proof of concept.  Her question is if she should become a nonprofit and I don’t think that is the way to go.  Two reasons:  More talented people are attracted to working for a for-profit business than a non-profit.  Also, as a for-profit you are not depending on the charity of others, and charity is not reliable.  As a for-profit, Heidi has the opportunity to build a stronger foundation for creating a solution that many more schools and students can benefit from. 

Heidi needs to discuss pricing ideas with the decision makers at these different schools to figure out what kind of pricing model will work best.  She needs to continue moving through the process of validating her business by finding out what her customers are willing to pay and if a repeatable pricing model can be established.

Then Catherine Byers Best presented Arbez.  Catherine is an experienced recruiter who has developed a video curriculum based on all the speaking events she has held in recent years sharing her coaching and career advice.  I told her this sounded very similar to the pitch on Careerealism I heard during a roundtable just a few weeks ago and encouraged her to take a look. 

After further clarification, we narrowed her target customer down to career offices at various institutions of higher education.  She has just started having preliminary meetings with those offices to discuss her system for private labeling.  I’m not completely convinced myself, but the proof is in the pudding as they say.  I told Catherine that if she can close five deals in order to further validate her business idea, then she should come back to me at a future roundtable and I can tell her exactly what to do. 

Last up was Dana Hostage pitching her e-commerce business Artimus Art.  This idea was a favorite of those participating in the chat today.  Parents send Dana a collection of their child’s artwork and she will do a high-resolution scan of each item and pull it all together into a high-quality book of art.  She also posts the artwork on a Web gallery to share with family and friends.

Since she launched in 2007, other copycat competitors have popped up, which concerns her.  When I told her I didn’t think a large number of people would be willing to pay so much for this service, she pushed back saying she is okay with this remaining a small business, which of course is perfectly fine with me too.  We agreed this is more of a high-end service for parents, so how to reach them while bootstrapping the business is the question.  She said she has had some success getting PR placements in the past, and I really think Dana needs to take a more systematic public relations approach and be very diligent about it moving forward.  That should help create the word-of-mouth momentum she needs.

These roundtables are the cornerstone programming of a global initiative that I have started called One Million by One Million (1M/1M). Its mission is to help a million entrepreneurs globally to reach $1 million in revenue and beyond, build $1 trillion in sustainable global GDP, and create 10 million jobs. 

In 1M/1M, I teach the EJ Methodology which is based on my Entrepreneur Journeys research, and emphasize bootstrapping, idea validation, and crisp positioning as some of the core principles of building strong fundamentals in early stage ventures. 

If you are an entrepreneur working on an idea or an early stage business, I am also very interested in hearing what you are looking for from 1M/1M. Please weigh in here. We are crowdsourcing the design of 1M/1M, and requests that have come up include Receivables Financing as a way to bridge to a validated business without giving up precious equity, I would love to hear your thoughts. 

You can find the recording of this roundtable session here. Recordings of previous roundtables are all available here. You can register for the next roundtable here. 

Photo by Sigurd Decroos.

Discuss


Posted in Internet NewsComments Off

Tags: Amazon, Bill Gates, Business Model, Ceo Job, Ceos, Founders, Horowitz Points, Inception, Jeff Bezos, Long Haul, Marc Andreessen, Moral Authority, Profitable Business, S Board, S Scott, Scott Mcneely, Startups, Steve Jobs, twitter, Venture Capital Firm

For the Long Haul: Do Founders Make Better CEOs?

Posted on 29 April 2010


bossmug_apr10.jpgBen Horowitz of the venture capital firm Andreessen Horowitz wrote an interesting piece Wednesday on why he and partner Marc Andreessen look for strong founding CEOs when investing in companies. Founding CEOs are the kind of entrepreneurs that run their companies from the early development stages and are not replaced by a professional CEO as the company grows and builds. In this lengthy but worthwhile read, Horowitz provides insight into what makes for a great founding CEO, and why he believes they are more likely to help a company succeed than a professional CEO.

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It is not uncommon in the world of startups and venture capital that when a startup finds a business model and market fit for its product that a founding CEO is replaced by a more experienced professional. Some entrepreneurs just aren’t cut out to handle the responsibilities that come with being a CEO, so they either step down or are replaced by the company’s board. But other times, the entrepreneur has enough skill to handle the CEO job, and as Horowitz points out, this type of CEO is much more likely to nurture a profitable business.

“If you hire a professional to find the product cycle, get the jelly, because your company will soon be toast.”
- Ben Horowitz

Dozens of large companies are thriving today thanks in no small part to a CEO who has been with the company since its inception. Examples of some of the most successful founding CEOs in the history of the tech industry include Apple’s Steve Jobs, Microsoft’s Bill Gates, Amazon’s Jeff Bezos and Sun’s Scott McNeely. Horowitz also points out that some of the hottest new companies, like Facebook, Twitter and Zynga are also run by founding CEOs, but not all founders are capable of this success.

So what qualities are needed in entrepreneurs in order to become the next Steve Jobs or Bill Gates? According to Horowitz, a winning founding CEO has “comprehensive knowledge” of all aspects of the company, the “moral authority” to go against the grain and “total commitment to the long-term” success of the company. Long-term commitment can often be the hardest quality to possess, but Horowitz notes that founder CEOs are placing themselves in the line of fire in the short-term for their belief in the long-term.

zuck_head_apr10.jpg“Recently, we’ve seen Facebook’s founding CEO Mark Zuckerberg make a series of long-term bets. He’s radically revamped critical features such as the feed used by hundreds of millions of people,” writes Horowitz. “By committing to the long-term, he put himself under tremendous pressure in the short-term. The press broadly questioned his business acumen and Facebook’s ability to generate any meaningful revenue [...] We now know these critics were wrong and Zuckerberg was right, but would a professional CEO have taken these risks and endured such vicious attacks for unseen, long-term benefits?”

As Horowitz adds, not all founders are cut out for the role of CEO, and there are, in fact, professional CEOs capable of building successful companies that continue to innovate. Eric Schmidt, he says, adopted the philosophies of Google’s founders in order to help it continue to grow, and John Morgridge nearly singlehandedly turned Cisco into what it is today, Horowitz notes. Finally, he has this boiled down piece of advice for startups.

“If you hire a professional CEO into a company that has found a large product cycle, the professional will be able to maximize that product cycle, but likely won’t find the next one,” he says. “If you hire a professional to find the product cycle, get the jelly, because your company will soon be toast.”

What are your thoughts on this issue? Are professional CEOs largely incapable of being as innovative as founding CEOs? Let us know your view in the comments below.

Photos by Flickr users Kumar Appaiah and deneyterrio.

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Tags: Amazon, Co Founder, Commitments, Dennis Howlett, Google, Hasso Plattner, Java Apps, Java Co, Java Community, Java Developer Community, Java Shops, New Opportunities, Online Surveys, Open Source Java, Oracle Java, Pathway, Safe Haven, Sap, Spikes, Weekly Poll

Weekly Poll: What Does VMforce Mean For Oracle, SAP and the Rest?

Posted on 27 April 2010


Thumbnail image for piechart.pngThe VMforce news we’ve reported on today makes it likely game for our weekly poll.

What we want to know is your view on how significant the VMforce platform will be for the market. The view from here: The alliance between Salesforce.com and VMware will depend on the Java developer community the two companies develop.

So, in your opinion, what does VMforce mean for competing vendors such as Google, Amazon, Oracle and SAP?

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What does VMforce mean for competing vendors such as Google, Amazon, Oracle and SAP?online surveys

Dennis Howlett says it’s an opportunity for Salesforce.com to re-architect itself and position itself in the mid to high-end market:

“Both Oracle and SAP are substantial Java shops. There have been concerns among Java fans that somehow, Oracle would mess up the open source Java community. VMForce spikes that because if Oracle chooses to play fast and loose then VMForce could become a natural safe haven. SAP on the other hand has been conflicted over Java. Co-founder Hasso Plattner has said that he’d like to eliminate Java from SAP apps. That is neither realistic nor likely to happen. More recently, the company has been making fresh commitments to Java and Eclipse. Both SAP and VMForce/Salesforce.com like to talk about open-ness so this could present new opportunities for SAP developers to consider VMForce as a pathway to bringing cloud based apps into their environments where it makes sense to do so and where the VMForce platform provides what developers need.”

So what do you think? What does VMforce mean for competing vendors such as Google, Amazon, Oracle and SAP?

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Tags: Amazon, Apps, Benioff, Ceo Mark, Dennis Howlett, Facebook, Gestures, Google, Java Platform, Launch, New Java, Platform Providers, Premise, Public Discourse, Realization, Relevant Updates, Sap, Social Web, Technology Infrastructure, Tight Spot

How VMforce Connects Social Web, Cloud and Enterprise

Posted on 27 April 2010


vmforceLogoApril2010.pngThere were tweets a plenty today about Mark Benioff and his latest term: “Cloud 2,” referring to the apps that will come from VMforce, the new Java-platform as a service that Saleforce.com and VMware are launching.

Dennis Howlett added to the discussion by picking up on the meme that Salesforce.com CEO Mark Benioff shared as part of the launch:

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Benioff understands the value of a meme. And as a result, he has more command over the enterprise cloud market than any other executive in the space.

Cloud 2 is a that term shifts perspectives, connecting the concept of the cloud and the social Web to the Java-dominated environment of the enterprise. People may run away cynically but the language seems to work in the public discourse.

In the message is a clear realization that the social Web is the overall dynamic theme that is affecting the Internet as we know it.

That’s something people can understand.

Facebook is playing on that theme to challenge Google on the premise that hyperlinks are the future of the Web. Facebook is connecting presence with location to serve relevant updates, which act as gestures. In this regard, the social Web is woven into Facebook’s fabric.

Salesforce.com and VMWare understand the dynamic that Facebook brings to the Web and into the overall enterprise. The apps developed out of VMforce will connect to an open graph that the enterprise controls. That’s a theme that can be communicated through the discussions about the VMForce platform. It will resonate far more than dull conversations about technology infrastructure.

The alliance also shows that VMware is now positioned to compete as a platform providers against Google, Amazon and Windows Azure.

All of this leave Oracle and SAP in a tight spot. These are not exactly companies that are commanding in their influence about the social Web and its connection to the enterprise.

They are deeply entrenched, for instance, in this long discussion about private cloud computing, not communities of interest. It’s like Oracle has rejected this aspect of the Sun merger.

Sun would seem like the logical successor to Java in the cloud. Java has historically served to represent Sun as the force behind one of the technology world’s most important developer communities.

But that power is changing hands with Salesforce.com and VMware as possible successors.

VMware now is a direct benefactor of the Salesforce drive to the enterprise. And Salesforce.com has all the advantages that VMware offers from its own enterprise imprint and its $420 million acquisition of SpringSource last summer.

Java is a cornerstone coding language of the enterprise The question we now have to face: What will the competitors do as the Java platform moves into the cloud? How can they counter the micro application approach that seems to be gaining importance in the enterprise with each passing day.

Discuss


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Tags: Amazon, Censorship, Content Owner, Counterclaim, Electronic Frontier Foundation, First Amendment, Free Speech, Google, Hitler, Last Thursday, Legal Content, New Album, Parody, Plagiarism, Prior Restraint, Statuses, Takedowns, Tweet, twitter, Violet

Twitter, DMCA Take-downs & the Prior Restraint of First Amendment Speech

Posted on 26 April 2010


Last week, the big news in DMCA takedowns was the sweeping removal of Hitler parody videos. Earlier this year, it was Google suddenly wiping out six separate music blogs. Today, it’s the removal of a tweet.

While this might not seem like a big deal on the surface, it leads to some much bigger questions about free speech, what content should fall under a proper DMCA take-down and whether or not the DMCA is a legal method of applying censorship by any content owner.

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Here’s the story as told by TechDirt:

The story involves a music blogger named JP, who runs the appropriately named JP’s blog. Not surprisingly, JP also has a Twitter account, where he mostly seems to post links to his blog posts. One such post was about the leak of the new album by The National. That post includes a link to Amazon where people can purchase the new album… and also a link to a download of one song (in MP3 format) from the album.

According to JP’s blog post on the subject, Twitter sent him a message last Thursday “in response to a DMCA take-down notice”. The email, he writes, read as follows:

jp917, Apr 22 03:10 pm (PDT):
Hello,
The following material has been removed from your account in response to a DMCA take-down notice:
Tweet: http://twitter.com/jp917/statuses/12499491144 – New Post: Leaked: The National – High Violet http://jpsblog.net/2010/04/20/leaked-the-national-high-violet/

JP denies posting any link to the leaked album in his tweeted blog post, saying that he will not bother filing a counterclaim to the take-down. He also links to an article in Plagiarism Today from a year ago that alleges that Twitter’s handling of DMCA take-downs and counterclaims is problematic and that “there is clearly an organization issue here and that’s leading to confusion.”

While last weeks’ take-downs of parody videos may have been “overbroad take-downs of legal content”, as the Electronic Frontier Foundation asserted, this sort take-down may go an extra step, beyond constitutionally protected First Amendment speech. With the YouTube take-downs, at least there was copyrighted content present, although it may have been used according to the law in the end. In this case, according to JP, there was neither pirated content nor a link to any DMCA-violating content.

While TechDirt argues that “specifically, nothing in the tweet itself is infringing — which means that the DMCA take-down for the tweet is bogus, and a violation of the DMCA itself”, we spoke with David Sohn, senior policy council with the Center for Democracy & Technology, who said that the question might not be so cut and dry. Section 5.12D of the DMCA relates to cases involving “information location tools” and “links”.

“One possibility here is that Twitter has gotten a take-down notice that might not stand up as a totally valid take-down notice,” said Sohn.

On Sohn’s advice, we asked Wendy Seltzer, founder of ChillingEffects.org, what this all meant and she explained that the burden of proof lies with the person creating the content and not the platform. All the platform, in this case Twitter, needs to know is that the complaint may be valid and that, by removing the offending content, they cover themselves legally in the eyes of the DMCA. Whether or not section 5.12 D of the DMCA actually applies doesn’t really matter.

The introduction to her recent paper, “Free Speech Unmoored in Copyright’s Safe Harbor: Chilling Effects of the DMCA on the First Amendment” (.pdf), speaks clearly to the problem we saw when first reading this story:

Each week, more blog posts are redacted, more videos deleted, and more web pages removed from Internet search results based on private claims of copyright infringement. Under the “safe harbors” of the Digital Millennium Copyright Act (DMCA), Internet service providers are encouraged to respond to copyright complaints with content takedowns, assuring their immunity from liability while diminishing the rights of their subscribers and users. Paradoxically, the law’s shield for service providers becomes a sword against the public who depend upon these providers as platforms for speech.

The problem with the current format of the DMCA, especially in the case of something like a communication platform such as Twitter, is that a DMCA take-down notice becomes an extremely effective means of silencing information for a legally mandated period of 10 days. In essence, it provides those who wish to silence a voice a quick and legal means of enacting what is called a “prior restraint“, something clearly prohibited in First Amendment law.

“When non-infringing speech is taken down, not only does its poster lose an opportunity to reach an audience, the public loses the benefit of hearing that lawful speech in the marketplace of ideas,” writes Seltzer in the paper.

Twitter offered this response:

“Twitter regularly receives DMCA takedown notices. We strive to balance the interests of our users and copyright holders by reviewing each notice. After determining whether the notice is compliant with the law, we also consider other factors such as whether the notice is abusive to our users, or fails to take fair use into consideration. You can read more about our DMCA process here: http://help.twitter.com/entries/15795-copyright-and-dmca-policy

“We are always working to improve our transparency. Users are notified immediately when content has been removed from their account. In this situation, we responded to a request to remove a Tweet containing a link to download content from an unreleased album. After reexamining our decision, we believe this was the correct first step. If the affected user believes we have made a mistake or that the notice is in error, the appropriate thing for the user to do is file a counter-claim.

“We believe that the reasoning of the DMCA claim and its origin should be transparent to both the affected user and other interested parties. We are working on further steps to improve access to this information.”

So, our next logical question here is: Since this post includes the email from Twitter, which includes that original link to a blog post that supposedly linked to infringing content, can it too be removed according to the guidelines of the DMCA?

Discuss


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Tags: Amazon, Bearing, Capex, Chief Technology Evangelist, Clouds, Dilemma, Elasticity, Environments, Eweek, Google, Heavy Lifting, Innovators, Myth, Pitches, Reflections, Scholar, Software Providers, Supply Chain, Time To Market, Vint Cerf

Google’s Vint Cerf on Private Clouds v. Public Clouds

Posted on 20 April 2010


guest_cloudhole_main.jpgThe debate about private clouds continue as the traditional heavyweight enterprise software providers make their big and glossy pitches for their vision of a private cloud.

So, it may come from Google, but still, it is refreshing to hear the intellectual tone that a scholar like Vint Cerf provides. Cerf is Google’s chief technology evangelist but his reflections give a sound bearing on how private and public clouds do interact.

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He spoke last week at the Google Atmosphere Conference. We came across one of the discussions he had with fellow Google innovators. He repeats what we hear him say a lot. It comes down to interoperability. Private clouds are tools. Google develops tools that are distributed on the Internet. The question is how do clouds interact?

It’s a contrast to what we see with Microsoft or Oracle in its quest to sell cloud computing environments into the enterprise.

In the meantime Amazon continues its own quest to dispel private cloud computing as a myth, not a reality.

In an interview with eWeek, Adam Selipsky, vice president of AWS outlined their views:

“….Moreover, Selipsky said what people are calling private clouds come with the following drawbacks, where the customer will:

· Still own the capex…and they’re very expensive (big fixed investments)

· Not pay for what you use

· Not have true elasticity…when groups relinquish their servers, the company still owns the datacenter space and servers…and will also find that managing this supply chain will present a dilemma…will either have to significantly overprovision which is wasteful or become really expert at managing just-in-time supply-chain so there are no long waits for servers…managing a supply chain like this is really hard and takes a lot of effort and refining and keeping the status quo of long time to market is not so appealing either

· Still own the headache of managing the undifferentiated heavy lifting”

And so, the debate continues.

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Tags: Amazon, Automated Systems, Bob Muglia, Center Operators, Container System, Datacenter, Developer Tools, Fundamental Shift, High Speed Network, Hundred Thousand, Infrastructures, Kirkwood, Management Capabilities, Management Summit, Mass Deployment, Microsoft Management, Os Image, Processing Power, Server Management, Virtualized

Microsoft: Everything Moves Faster in the Cloud

Posted on 20 April 2010


mms2010_systemcenter.jpgMicrosoft revealed a bit more about its container system for data centers, giving us some pause about it as a symbol of the cloud itself.

These boxes represent the future of cloud-based infrastructures for both shared and dedicated networks. Microsoft, Amazon, HP and a number of other vendors use these containers to operate cloud networks. They are becoming fully automated systems that physically represent how we are seeing a fundamental shift in how IT services are managed and deployed.

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In his keynote at the Microsoft Management Summit, Executive Bob Muglia featured the company’s container system used at its Chicago data center, illustrating the company’s new datacenter and cloud management capabilities for mass deployment of virtualized technologies.

Muglia said the new container system is 10x less expensive than traditional data center infrastructures and 10x faster, too.

“Everything moves faster in the cloud,”Muglia said.

The container is an independent, high-speed network optimized with virtualization technology. Muglia said every piece of the data center is tightly fit, almost bound to make one network that stores data and provides raw processing power.

msoftcontainer.jpg

The news serves to represent Microsoft’s ability to model and deploy applications across platforms. Microsoft owns the management tools, the developer tools, the applications, OS and the cloud platform. That’s Microsoft’s value statement to data center operators and the new generation of IT professionals and developers who will become wizards of sorts in these new environments.

It also shows the move to automate IT. Bing, for instance, has a few hundred thousand servers that are manned by a handful of people. Bing servers do not get patched. Instead, IT will deploys an updated OS image with the apps pre-installed.

It also highlights some key trends in cloud computing and data center environments.

As Mike Kirkwood wrote in his post today about Hitachi, server management is moving from three steps (OS, network and storage) to one system to orchestrate them all.

Microsoft is providing both shard and dedicated services. It’s the container model, though, that makes this interesting for us. By offering an automated data network, it opens up in some respects the data center market. It’s an OEM environment that can be plugged in to a data center for offering virtualized and cloud-based services.

Companies like Hitachi, Microsoft and Eucalyptus are defining a new container model that binds “compute, storage, network” with templates that can allow resources to move quickly.

These types of systems will become predominant as virtualization gains mass acceptance.

Discuss


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Tags: Amazon, Botnet, Connect Conference, Criminal Enterprise, Criminal Networks, Denial Of Service, Denial Of Service Attack, Exfiltration, Google, Hack Computers, Infrastructure Services, Joffe, Manchester Uk, Mass Proportions, Santa Clara Ca, Senior Vice President, Spectre, Terabits, Top Level Domains, Uk Police

The Largest Cloud in the World is Owned By A Criminal Network

Posted on 19 April 2010


Internet - Good Or Bad?The biggest cloud network in the world is owned by the mob.

While you may think that Google, Amazon and Microsoft are the world’s largest cloud providers it’s really the Conflicker worm that has helped criminal networks spawn a botnet of mass proportions.

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How does Conflicker meets the definitions of a cloud? According to the Spectre Group,a veteran technologist explained the connection last week at the Cloud Connect conference in Santa Clara, Ca.:

“Conficker controls 6.4 million computer systems in 230 countries at 230 top level domains globally, more than 18 million CPUs and 28 terabits per second of bandwidth, said Rodney Joffe, senior vice president and senior technologist at the infrastructure services firm Neustar. The biggest cloud on the planet is controlled by a vast criminal enterprise that uses that botnet to send spam, hack computers, spread malware and steal personal information and money, Joffe said. In other words, the cloud is mobbed up.”

The Spectre Group further explains how, Conflicker meets the definitions. The botnet cloud is available for rent and and is just about anywhere in the world. It can be used for a variety of purposes, be a denial-of-service attack, spam distribution or data exfiltration. In fact, all that comment spam that plagues blogs could easily be spawned from the Conflicker cloud.

Criminals-Control-The-Worlds-Largest-Computing-Cloud.jpg

Joffe used the presentation at the conference to illustrate the dangers of Conflicker and and how it poses a threat to legitimate cloud computing providers. He said at the conference that Conficker has not been as active as it once was, but is still a threat. The Manchester, UK Police Department was hit in February.

And it has a huge footprint, all over the world. The operators have a lot of experience, too, dating back to 1998.

The Spectre Group says in comparison the legitimate players in the market are far smaller:

“By the way, the biggest legitimate cloud provider is Google, based on Joffe’s information, made up of 500,000 systems, 1 million CPUs and 1,500 gigabits per second (Gbps) of bandwdith. Amazon comes in second with 160,000 systems, 320,000 CPUs and 400 Gbps of bandwidth, while Rackspace offers 65,000 systems, 130,000 CPUs and 300 Gbps.”

The Conflicker cloud demonstrates the illusions that have to be considered when thinking about cloud computing. It’s not just the danger of a a PC being infected by a virus. It;s the danger of another computer entering the criminal enterprise.

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Tags: Amazon, Degree In Electrical Engineering, Fritolay, Guest Author, Gum Disease, India 2020, Journeys, Market Strategy, Mass Reconstruction, Massachusetts Institute Of Technology, Masters Degree, Media Groups, Mitra, Procter Amp Gamble, Silicon Valley, Stage Business, Startup Strategy, Strategy Consultant, Strategy Roundtable, Technology Entrepreneur

Startup Strategy Roundtable: Early Stage Business Building

Posted on 16 April 2010


roundtable.jpgAs part of my ongoing Online Strategy Roundtables, I met yesterday with four new entrepreneurs, all at the early stage of validating who their customers are and building their businesses. Entrepreneurs who are just starting out need to ask themselves some hard questions in order to develop a crisp go to market strategy. I pulled together a list of such questions that you can find here and in my Positioning book to help you “Clarify Your Story”.

Up first was Martin Calle and his company OraQuel. Martin worked for years on product development for companies like Procter & Gamble and FritoLay, but eventually wanted to create a product that would be his own.

Sponsor

i>Guest author Sramana Mitra is a technology entrepreneur and strategy consultant in Silicon Valley. She has founded three companies and writes a business blog, Sramana Mitra on Strategy. She has a masters degree in electrical engineering and computer science from the Massachusetts Institute of Technology. Her three books, Entrepreneur Journeys, Bootstrapping, Weapon Of Mass Reconstruction, and Positioning: How To Test, Validate, and Bring Your Idea To Market are all available from Amazon. Her new book Vision India 2020 was recently released. Mitra is also a columnist for Forbes and runs the 1M/1M initiative. /p>

After researching what type a product would be best to get behind, Martin came across research showing a strong correlation between gum disease and heart disease, and came up with a heart-smart oral care product. Since large retailer stores won’t work with a “little guy” in this category, he has started to approach social media groups like mommy bloggers and TwitterMoms to try to build up a grassroots following. I believe Martin’s product does answer a real need, but he has positioned this as a product just for kids. I think he will get better pickup if he positions this as a product for the entire family – a much larger segment of the market. Martin will need to do some controlled experiments to validate whether or not my hunch is correct, and then move forward with his social media PR campaign.

Nick Quay presented for BluNami, a mobile marketing company that has developed a technology to help clients connect to Bluetooth users in a certain proximity. Nick and his team have been working with a wide variety of clients looking to use their technology a many different ways, from a city using it to make emergency announcements to restaurants offering deals to lure in customers.

(As soon as I hear anyone is trying to work with a government entity, especially a startup venture, I immediately want them to stop wasting their time there. Unless they are paying you upfront as some type of consulting situation, most startups need their cash flow and can not sustain the government’s slow 12-24 month sales cycles.)

Like many entrepreneurs with a versatile technology, Nick is trying to do too many things right now – the old “spray and pray.” While there may be many different segments interested in the product, each requires a unique go-to-market strategy. The best way to scale this business is to figure out what is the best value proposition and the easiest segment to sell to, and then focus time and energy on that while continuing to bootstrap your way to profitability. Later there may be time and money for exploring other avenues.

Frederic Guitton gave a nice presentation for ActivSalesAgent, a business that combines its software with call centers as a way to help convert visitors on client websites into better qualified sales leads. This business is further down the road of validation than the others, and is profitable. As I questioned him about price point, Frederic was ready with metrics to show that what they are doing is indeed working.

We discussed how using solid statistical information along with references from early customers is the best was to convert potential customers into clients – and those reference accounts do not need to be the biggest clients. Small business references work just as well. That’s how Salesforce.com did it. I think this business has legs, but urged Frederic to be open to doing some type of offshore chat centers down the road because I think reducing costs will become a bigger issue as this business continues to scale.

Then Linda Muncy, who is just starting out, presented her business idea. She is hired to provide photo-related entertainment at events. Guests are creatively photographed and given the image in some form as a giveaway. She has started reproducing the images onsite on a material similar to Skinit so guests can attach the image to their handhelds, laptops, etc. She would like to develop a product kit so other event planners can do this as well. Linda has yet to truly validate her product and service. I always tell entrepreneurs to validate your idea before building any product. I think Linda will be amazed by what she learns after calling 100 event planners to get their feedback. This may only be a small business, but that is perfectly okay – as long as it is profitable.

These roundtables are the cornerstone programming of a global initiative that I have started called One Million by One Million (1M/1M). Its mission is to help a million entrepreneurs globally to reach $1 million in revenue and beyond, build $1 trillion in sustainable global GDP, and create 10 million jobs.

In 1M/1M, I teach the EJ Methodology which is based on my Entrepreneur Journeys research, and emphasize bootstrapping, idea validation, and crisp positioning as some of the core principles of building strong fundamentals in early stage ventures.

If you are an entrepreneur working on an idea or an early stage business, I am also very interested in hearing what you are looking for from 1M/1M. Please weigh in here. We are crowdsourcing the design of 1M/1M, and requests that have come up include Receivables Financing as a way to bridge to a validated business without giving up precious equity, I would love to hear your thoughts.

i>You can find the recording of this roundtable session here. Recordings of previous roundtables are all available here. You can register for the next roundtable here./p>

em>Photo by Svilen Milev./p>
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Tags: Air Conditioning, Amazon, Amount Of Money, Ashrae, Best Choice, Corporations, Digital Realty, Dupont, Dupont Fabros, Efficient System, Energy Efficiency, Feats, Google, Heating Refrigerating, Innovation, Nbsp, Nokia, Protest, Realty Trust, Technical Capabilities

Google, Microsoft, Amazon Protest Data Center Standard

Posted on 13 April 2010


Some of the world’s top tech companies are concerned that their ability to build cost-effective and energy-efficient data centers may be compromised.  Representatives from Google, Microsoft, Amazon, and several other outfits have signed a letter protesting a standard established by the American Society of Heating, Refrigerating and Air-Conditioning Engineers.

The ASHRAE standard is meant to increase data centers’ energy efficiency, and the group of tech corporations opposed to it has no problem with that goal.  The issue, it seems, is that the standard instructs companies how to go about becoming more efficient.  And that it carries some weight, since it’s often incorporated into building codes.

So the open letter explained, "For example, the standard requires data centers to use economizers – systems that use ambient air for cooling. In many cases, economizers are a great way to cool a data center . . . but simply requiring their use doesn’t guarantee an efficient system, and they may not be the best choice.  Future cooling methods may achieve the same or better results without the use of economizers altogether.  An efficiency standard should not prohibit such innovation."

Google, Microsoft, Amazon, Nokia, Dupont Fabros Technology, and the Digital Realty Trust would prefer to just see required levels of efficiency established.

Whether or not they can win this argument may have a significant effect on the companies’ technical capabilities, or at least the amount of money they have to spend in order to achieve certain feats.  We’ll be sure to report any significant developments.

Posted in SE NewsComments Off

Tags: Air Conditioning, Amazon, Amount Of Money, Ashrae, Best Choice, Corporations, Digital Realty, Dupont, Dupont Fabros, Efficient System, Energy Efficiency, Feats, Google, Heating Refrigerating, Innovation, Nbsp, Nokia, Protest, Realty Trust, Technical Capabilities

Google, Microsoft, Amazon Protest Data Center Standard

Posted on 12 April 2010


Some of the world’s top tech companies are concerned that their ability to build cost-effective and energy-efficient data centers may be compromised.  Representatives from Google, Microsoft, Amazon, and several other outfits have signed a letter protesting a standard established by the American Society of Heating, Refrigerating and Air-Conditioning Engineers.

The ASHRAE standard is meant to increase data centers’ energy efficiency, and the group of tech corporations opposed to it has no problem with that goal.  The issue, it seems, is that the standard instructs companies how to go about becoming more efficient.  And that it carries some weight, since it’s often incorporated into building codes.

So the open letter explained, "For example, the standard requires data centers to use economizers – systems that use ambient air for cooling. In many cases, economizers are a great way to cool a data center . . . but simply requiring their use doesn’t guarantee an efficient system, and they may not be the best choice.  Future cooling methods may achieve the same or better results without the use of economizers altogether.  An efficiency standard should not prohibit such innovation."

Google, Microsoft, Amazon, Nokia, Dupont Fabros Technology, and the Digital Realty Trust would prefer to just see required levels of efficiency established.

Whether or not they can win this argument may have a significant effect on the companies’ technical capabilities, or at least the amount of money they have to spend in order to achieve certain feats.  We’ll be sure to report any significant developments.

Posted in SE NewsComments Off

Tags: Amazon, Brick And Mortar, Degree In Electrical Engineering, E Commerce Businesses, Edge Workshops, Green Edge, India 2020, Journeys, Mass Reconstruction, Massachusetts Institute Of Technology, Masters Degree, Mid Market Companies, Mitra, Mortar Shops, Silicon Valley, Small Business Owners, Startup Strategy, Strategy Consultant, Strategy Roundtable, Technology Entrepreneur

Startup Strategy Roundtable: Web 3.0 and E-commerce

Posted on 08 April 2010


startuproundtable_0410.jpgAs part of my ongoing Online Strategy Roundtables, this morning I worked with three new entrepreneurs, each at a different stage of validating who their customers are and building their businesses accordingly. Two have e-commerce businesses, which I love. In fact, my Forbes column tomorrow will discuss the shift from brick and mortar shops to e-commerce and how such businesses are so well poised for Web 3.0. Main Street America is changing as small business owners move online and get rid of the expensive real estate costs.

Sponsor

Sramana Mitra is a technology entrepreneur and strategy consultant in Silicon Valley. She has founded three companies and writes a business blog, Sramana Mitra on Strategy. She has a masters degree in electrical engineering and computer science from the Massachusetts Institute of Technology. Her three books, Entrepreneur Journeys, Bootstrapping, Weapon Of Mass Reconstruction, and Positioning: How To Test, Validate, and Bring Your Idea To Market are all available from Amazon. Her new book Vision India 2020 was recently released. Mitra is also a columnist for Forbes and runs the 1M/1M initiative.

Up first was Ellen Sinreich and her company Green Edge Workshops. Ellen is a consultant with expertise in sustainability and real estate. Based on her practice, she has designed some workshops that enable employees to develop strategies that will drive down a company’s carbon footprint. She is looking to reach mid market companies in her geographic region (New York), but to date has no customers.

Clearly this is a business that has yet to be validated. I believe Ellen is trying to reach too broad a market based on her experience. I recommended she narrows her value proposition to align better with her expertise by targeting companies that deal with facilities and building issues. She asked for advice on finding clients and unfortunately there is no obvious way to find clients when you are a consultant. What worked for me early on was using my personal network for referrals and I suggest she does the same to connect with her target market.

Later on, while discussing the Entrepreneur Journeys methodology, I also suggested that folks should read the Finisar case study in Entrepreneur Journeys Volume One to get a good feel for what it takes to get a business off the ground through consulting, and then build a product company through that process by getting close to customers, while generating cashflow all along. Finisar, for those of you who don’t know, went public in 2001 at a $5 billion market cap, and was largely a bootstrapped case study.

Danny Wong presented Blank-Label, an e-commerce site that allows men to co-create and custom design dress shirts at affordable prices. This site was launched five months ago and has seen a steady increase in sales but has not yet hit its stride. While Danny is well-versed in SEO traffic optimization, he needs to narrow his market to target the exact psychographic interested in being this involved in buying shirts- in other words, style conscious men. I recommend he target his PPC campaigns to the more fashionable zip codes across the country and to go slowly. I believe focusing all their efforts on the correct psychographic will make all the difference. This is a business for a small niche market, but definitely worth building.

Catherine Wood Hill gave a heart-felt presentation of La Grande Dame, an e-boutique for plus-sized women that she started with her mom. Having launched a year ago, and with thousands of customers already, this business has been well validated. Their target is women between the ages of 30 and 55 who are looking for high-end designer clothes in sizes 14 and up.

I like it when a business is so tightly focused. This allows you to do so many things inexpensively through the Web. We discussed ways to fine tune customer acquisition so the business can scale faster. She said their PPC advertising has never yielded a good return on investment, so I suggested that she targets the most affluent zip codes in the country.

I also suggest she continues to do more PR and all the SEO marketing, blogging, Tweeting, etc., that she is already doing to reach more customers. I believe this has the potential to become a very large business. I did research on this segment myself when I ran Uuma, my personalized fashion company for busy, professional women which Ralph Lauren was interested in acquiring in 1999.

The roundtables are the cornerstone programming of a global initiative that I have started called One Million by One Million (1M/1M). Its mission is to help a million entrepreneurs globally to reach $1 million in revenue and beyond, build $1 trillion in sustainable global GDP, and create 10 million jobs.

In 1M/1M, I teach the EJ Methodology which is based on my Entrepreneur Journeys research, and emphasize bootstrapping, idea validation, and crisp positioning as some of the core principles of building strong fundamentals in early stage ventures.

You can find the recording of this roundtable session here. Recordings of previous roundtables are all available here. You can register for the next roundtable here.

Photo by Svilen Milev.

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