Tuesday, March 31, 2009

IBM Runs Into Stormy Weather with Cloud Computing

Big Blue has lost some friends in the clouds. This weekend, IBM was in the eye of a storm dealing with companies such as Google, Amazon.com, and Microsoft. The Internet search giant, the online retailer and the software behemoth all withdrew support for IBM's effort to launch a cloud-computing initiative.

Members of the Cloud Computing Interoperability Forum (CCIF) also pulled their support.

The core issue behind the loss of support was IBM's manifesto. Some companies weren't happy about being invited late in the process, while others believe there are some political efforts under way.

Not an Open Process

The CCIF's organizer, Reuven Cohen, said because the group represents members from various industries, it could not endorse just one document.

"I don't think anyone had any issues with the document, that was hard to argue with and I'm an advocate for an open ecosystem for cloud computing," Cohen said. "The issue is a lot of people in the community -- small and big companies and individuals -- believe cloud is an approachable technology."

The CCIF could not endorse the manifesto because some of its members didn't agree that it was an open and fair process. "They feared that it was overly political and may have agendas," Cohen said.

"While Google isn't party to the manifesto, we are a strong advocate of cloud computing, given the substantial benefits for consumers and businesses," said Google's Jon Murchinson. "We value industry dialog that results in more and better delivery of software and services via the Internet, and appreciate IBM's leadership and commitment in this area. We continue to be open to interoperability with all vendors and any data."

Poking Holes in IBM

"Microsoft is behaving the way it behaves and IBM is behaving the way it always behaves," said Kelly Sims, a spokesperson for IBM. "It is not surprising that folks are looking for ways to poke holes in what IBM is doing."

Sims said everyone was approached relatively at the same time and that the effort came together in just weeks.

Thirty-five companies and organizations have signed on to the manifesto, which went live Monday morning. Companies including EMC, Sun Microsystems, and AT&T are on board, as are the Open Cloud Consortium and The Open Group.

"Seventeen new ones have contacted us this morning and clearly they are not scaring off everyone," Sims said of Microsoft, Amazon and Google. "It is pretty impressive when you take away the Microsoft versus the world battle."

Next to Come

IBM said the manifesto was drafted and went live in order to get a conversation started, but the most important steps will come in the next few months.

"It is important to embrace this for what it is, and that is an early step (in the process)," Sims said. "This is going to be a significant effort."

Microsoft to Shut Down Encarta Web Sites

Microsoft is shutting down its Encarta encyclopedia Web sites and will also discontinue its Student and Premium Encarta software products.

"The category of traditional encyclopedias and reference material has changed," reads a note explaining the move on the MSN Encarta Web site. "People today seek and consume information in considerably different ways than in years past."

The Encarta Web sites worldwide will shut down on Oct. 31 and Microsoft will stop selling the software products by June this year. One exception is the Encarta Japan Web site, which will stay live until the last day of this year.

People who have paid for a subscription to MSN Encarta Premium, which offers them access to more information, will get a refund for fees paid beyond April 30, although they'll continue to be able to access the site until it shuts down in October.

Microsoft will continue to offer technical support for the software products for three years.

The software giant has discontinued a couple of other products recently. Late last year it announced it would stop selling OneCare, its consumer antivirus product. It also killed off a mobile browser research product last year.

Its rival Google has discontinued quite a few more offerings recently, presumably in response to pressure from the deteriorating economic conditions. Google has shut down Jaiku, Mashup Editor, Dodgeball, Catalog Search, Google Notebook and Print Ads.

Thursday, March 26, 2009

Facebook Will Tweak Site To Placate Angry Users

The first time the popular social-networking site Facebook changed its design, its members weren't happy. Neither were they happy the second time Facebook tweaked the site. And they're not happy after a third round of changes.

Now Facebook is paying attention to thousands of new members and several petitions from users to go back to the old design. In the next few weeks, Facebook will begin tweaking its design based on feedback from users who sent in thousands of e-mails, according to Christopher Cox, Facebook's director of product.

"Whenever we build something new or tweak something old, our motivation is the same: To help you share with the people you care about and find out what's happening with them," Cox said in an explanation to users.

Before launching a new feature, the company first puts the product in front of a small audience, then makes it available to its user base, which has grown to 175 million since 2004.

"We know that no amount of testing is as valuable as what you have to say," Cox said. "For this reason, we will always look to you, our users, to tell us what is working and what isn't so we can continually make improvements."

Users didn't hesitate to tell Facebook's designers exactly what they thought of the changes. Tens of thousands of users joined petitions, while others simply posted disappointments on their walls and in messages to friends.

Finding the Right Balance

Finding the right balance between giving users what they want and avoiding too much change has been a balancing act for the company. Facebook admits its challenge has been to provide a product that makes people happy across the board. The problem, however, is that people on Facebook use the site for different purposes and navigate through it differently.

The past several weeks, Facebook has been shifting the site to operate similarly to Twitter, a Web site that allows users to constantly update their thoughts and whereabouts. Facebook was heading down a similar path and placing more emphasis on real-time conversations and updates, but users have made the company stop dead in its tracks.

One user, not happy with the changes, said if he wanted a Twitter-like experience he would have signed up for Twitter instead. Another said: "If it ain't broke don't fix it." And one poster suggested that if Facebook wanted to give users more control, it should implement an option for users to choose between the old and new version so everyone can be happy.

"The new Facebook home page is one step in the continued evolution of the site, designed to give people more ways to share and filter all types of content, such as status updates, photos, videos, notes and more," said Brandee Barker, a Facebook spokesperson. "We are listening carefully to what people are saying about the new home page through a variety of channels -- including through a popular application, built by outside developers on our platform, that allows users to vote and express their opinion."

Barker added that the company is also reading industry blogs, the Facebook company blog, CEO Mark Zuckerberg's public profile, Facebook user groups, and information through a link on the Facebook new home page tutorial. "We encourage people to send us constructive, detailed feedback and are committed to using it to inform how we build and improve the site for everyone," Baker said.

Changes to Come

Some users have asked for controls in their stream and for streams to update automatically. Facebook will respond by adding the ability to turn on auto updating in the "near future" so users no longer have to refresh the page.

Photo tags will also be tweaked in the coming weeks when Facebook will add friends' tagged photos to the live stream.

Application content is cluttering the stream, complained some users to Facebook, and as a result Facebook will provide users with controls to reduce application content. Other changes include a more prominent placement of friend invites and requests.

 

Twitter to seek revenue from businesses

Internet start-up Twitter is taking a much-anticipated first-step in its quest to parlay its popularity into revenue by offering certain customers an expanded range of services.

The company is preparing to offer commercial accounts in which corporations and other types of businesses pay a fee to receive an enhanced version of Twitter, a free service that allows people to send short, 140-character text messages to their network of friends.

"We think there will be opportunities to provide services to commercial entities that help them get even more value out of Twitter. If these services are valuable to companies, we think they may want to pay for them," Biz Stone, co-founder of Twitter, said in an e-mail sent to Reuters.

San Francisco, California-based Twitter has enjoyed a surge in popularity since its creation three years ago, despite the fact that the company has yet to make any money. According to Nielsen Online, which measures Internet traffic, Twitter's Web site had more than 7 million unique visitors in February, compared to 475,000 in February 2008.

Last year, the company turned down a $500 million acquisition offer by social networking powerhouse Facebook. And some observers have speculated that Google Inc might have its eye on Twitter, because of Twitter's so-called real time search capabilities.

Twitter recently closed a round of venture capital financing pegged at $35 million by media reports, following two earlier funding rounds totaling $20 million.

While Twitter initially planned to begin seeking revenue in 2010, the company recently decided to accelerate the schedule and find ways to monetize its service this year.

On Monday, Microsoft Corp and online marketing firm Federated Media rolled out a special Website dubbed ExecTweets that allows individuals to monitor Twitter messages of business executives.

Stone said Twitter has just hired someone to work on creating commercial products. He would not say when Twitter's commercial accounts product is set to be introduced, but said it would be sometime in 2009.

"We have lots of time for experimentation with regard to revenue generation, so we'll probably be trying a few different things this year," said Stone.

Wednesday, March 25, 2009

Google draws upon rival ideas with search changes

Google Inc. prides itself on setting trends, but it appears to be copying some of its smaller rivals with the latest refinements to the way it displays Internet search results.

After months of testing, Google tweaked its technology Tuesday to occasionally display longer descriptions of Web sites in response to search requests consisting of several words. The expanded snippets will contain three or four lines from Web sites instead of the usual one or two lines.

The switch is designed to give Google's audience a better sense of what information a Web site has even before users click on the link. It's something lesser known search engines already have been trying to do, either by posting longer descriptions or providing capsule snapshots of the Web pages that show up in their results.

In another minor change, Google said it has improved its formula for posting suggestions pointing to other topics that might be tied to a search request.

For instance, entering "principles of physics" into Google's search box will generate the usual list of 10 results on the first page, punctuated by a group of links at the bottom suggesting eight other related subjects such as "big bang physics." Now, however, Google thinks it can do a better job of deciphering complicated search requests and will highlight some suggestions near the top of the results page instead of the bottom.

This clustering concept was popularized years ago by IAC/InterActiveCorp.'s Ask.com and has since been copied by other search engines. Google's upgrade was hatched by Ori Allon, who joined Google in 2006 after selling a search startup called Orion to the Mountain View-based company.

Even as it appears to be catching up to Ask.com, Google also may be trying to stay a step ahead of its biggest rival, Microsoft Corp., said Danny Sullivan, who heads the Search Engine Land newsletter.

Microsoft has indicated it plans to introduce new ways to suggest searches to its users, giving Google more of an incentive to upgrade its own system, Sullivan said.

Google executives get one-dollar paychecks in 2008

Google's co-founders and the California Internet titan's chief executive Eric Schmidt each took only a dollar in pay last year, a filing with US regulators indicates.

Larry Page, Sergey Brin, and Schmidt stuck with their usual one-dollar annual paychecks despite tough economic times that have eroded billions of dollars in value from their Google stock holdings.

"Eric, Larry and Sergey have voluntarily elected to receive only nominal cash compensation," Google said in a proxy statement filed Tuesday with the Securities and Exchange Commission.

"Their primary compensation continues to come from returns on their ownership stakes in Google."

The trio at the top of Google's command structure received no bonuses either.

Page owns about 29.2 million shares of Google stock while Brin holds 28.6 million shares, making them the firm's biggest stock holders and giving the duo controlling interest, according to the filing.

Brin, 35, and Page, 36, started Google while students at Stanford University.

The pair incorporated Google in 1998 and have taken a dollar each in annual pay since the company went public with a stock offering in 2004.

Schmidt has the third largest stake in the company; owning just shy of 9.4 million shares.

Google did compensate Schmidt to the tune of about a half million dollars in 2008, but the bulk of the money paid for security and some travel.

Google stock closed Tuesday trading priced slightly above 347 dollars per share.

The stock had soared to nearly 700 dollars a share in late 2007, but tanked along with the rest of the market in the ensuing year.

Microsoft Sees Growing SaaS Opportunity Among SMBs

2009 will be the year SMBs start adopting software as a service (SaaS) in earnest, presenting an opportunity for Microsoft and other vendors to offer services to them despite the economic recession, according to a Microsoft survey.

Eighty-six percent of SMBs said they plan to deploy SaaS in their organizations before the end of the year, according to the survey, called the 2009 Microsoft SMB Insight Report, which polled 600 small-business specialists in five countries -- the U.S., U.K., Canada, France and Brazil. Microsoft released the results of the survey, based on information collected in February and earlier this month, on Wednesday.

In an interview about the results, Eduardo Rosini, corporate vice president for Microsoft's worldwide small and midmarket solutions and partners group, said the survey shows that SaaS is at a "tipping point" and the recession could actually be contributing to the projected uptick in adoption.

Fifty-five percent of SMBs surveyed said they were thinking about spending the same amount or even more on IT in the next 12 months, he said. However, they are still interested in "doing more with less" and optimizing the IT resources they already have, he said. SaaS allows SMBs to do that while also letting them embrace new technologies they might not otherwise afford, since they don't have to deploy new IT infrastructure to deploy new software, Rosini said.

"Clearly it's now becoming a very, very viable and preferred option as it comes to laying out new technologies," he said.

SMBs said they were considering replacing the e-mail, document sharing and communications infrastructure that they currently have on premise with hosted services, Rosini said. Microsoft is well-positioned to provide those services to them, he said.

Microsoft began offering its first hosted collaboration services this year with its Business Productivity Online Suite, which combines online versions of Microsoft's messaging and portal software -- Exchange Online and SharePoint Online, respectively-- as well as Office Communications Online, a hosted unified-communications offering, and Office Live Meeting, a hosted Web-conferencing application. Microsoft also sells those services separately.

Microsoft also lets its hosting partners sell hosted versions of its collaboration and messaging software to customers, and Rosini also stressed the importance of Microsoft's VAR community to service SMBs, who often don't have their own IT staff, or who have very few dedicated IT employees.

Sun, IBM Merger Talks Will Continue This Week

IBM is still in talks to buy Sun Microsystems Inc and discussions could take several more days as IBM studies various parts of Sun's computer server and software businesses, according to people with knowledge of the matter.

The sources, who were not authorized to speak publicly on the issue, called IBM's examination of Sun's assets standard procedure. They added that any deal is unlikely to be reached before next week at the earliest.

IBM and Sun declined to comment.

If they reach agreement, Sun would be IBM's largest acquisition and bolster its offering of computer hardware, software and services.

A combination of the world's No. 1 and No. 4 makers of server computers, however, could draw antitrust scrutiny from regulators in the United States and abroad, analysts said this week.The merged company would hold 65 percent of the $17 billion market for Unix servers, which major companies and governments rely on for critical operations, according to market researcher IDC.

IBM and Sun were the top two players in that market in 2008, with 37 percent and 28 percent respectively. Hewlett-Packard Co was third, with 27 percent.

Not Yet Final

CNBC, citing a Wall Street Journal report, said earlier on Friday that International Business Machines Corp's due diligence process was holding up the Sun deal.

IBM is examining the terms of Sun's various technology licenses to check for any conflict with IBM's business, the Journal reported on its website. It said a deal could be worth $6.5 billion to $8 billion.

Some analysts also have questioned whether it was worth IBM paying what would amount to a 100 percent premium for Sun, whose shares had plunged 70 percent in the past year before the talks with IBM were first reported on Wednesday.

Analysts and bankers told Reuters in November that Sun, which rose to prominence in the 1990s, could be forced to sell itself as it struggles to regain profitability and bring its operating expenses under control.

The company never fully recovered from the dotcom bubble burst in the earlier this decade, when demand for its high-end servers plummeted.

Its ambitions to move into software through acquisitions like database maker MySQL have been slow to produce results and it has failed to fully commercialize the Java software it invented in the early days of the Web.

Some analysts have said that IBM, with greater manpower and more effective management, may be able to make better use of Sun's assets.

Many also have said that they see a potential deal between the two companies as part of a consolidation trend, as IBM and rivals like HP and Cisco Systems Inc compete to offer software, services and hardware based on emerging technologies that can power complex corporate transactions and networks.

Sun shares closed Friday's session down 6.14 percent at $8.10 on the Nasdaq, giving the company a market value of about $6 billion based on about 745 million shares outstanding as of January 30.

IBM shares closed down 0.16 percent at $92.51 on the New York Stock Exchange.

Tuesday, March 24, 2009

Salesforce’s deal with Twitter

Salesforce's deal with Twitter - "Platforms are moving to a service. It's not just about apps; it's about platforms."

Salesforce.com CEO Marc Benioff discussed his company's use of the cloud computing and Software-As-a-Service (SaaS) at a New York conference, demonstrating the new features of its Sales Cloud. Google, Facebook, Microsoft and IBM have also been pushing hard into the cloud-computing space as part of their grand strategies. Saleforce also has a new agreement with Twitter.
NEW YORK – Salesforce.com CEO Marc Benioff, whose company just cut a new deal with Twitter this week, is seeing the possibilities of cloud computing expand as more and more platforms – not just applications – move into the cloud.

Along with Google, Facebook, Microsoft, IBM and other companies, Salesforce has been making an aggressive push into cloud computing, recently focusing on expanding its Software-As-a-Service (SaaS) repertoire. The company currently maintains a Sales Cloud and Service Cloud.

"We've seen Google and Cisco and Omniture all come out and say the same thing," said Benioff, during a March 23 appearance to partially promote Salesforce's deal with Twitter. "Platforms are moving to a service. It's not just about apps; it's about platforms."

Salesforce has been busy adding functionality to its two main platforms: Sales Cloud and Service Cloud.

On March 23, Salesforce announced that it was integrating Twitter into its Service Cloud, where it would operate alongside Facebook connections, Google search, online communities and other applications to provide a cloud-based customer service channel.

Salesforce took a few moments during its presentation to argue that Twitter is of great utility to the enterprise.

"There's a question that Twitter asks: 'What are you doing?'" Frank Eliason, Director of Digital Care for Comcast, said during the presentation. "There's a lot of great data, data that marketers pay a lot of money for, and it's there for free."

Reality TV star Jade Goody dies after cancer fight

Jade Goody's family asks for "privacy at last" after the death at 27 of the brash former dental assistant who turned her tumultuous life and struggle with cervical cancer into a one-woman reality show.

Mocked as a slob, then celebrated as an everywoman, Goody lived one of the world's most public lives, with cameras capturing everything from her racial slurs to her cancer diagnosis and chemotherapy.

Goody gained fame in 2002 at age 21 when she joined the British version of the reality television show "Big Brother," in which contestants live together for weeks and are constantly filmed. She became a highly divisive star and something of a national touchstone who sparked debate about race, class and celebrity.

During filming of an Indian version of "Celebrity Big Brother" in the summer of 2008, Goody received a diagnosis of cervical cancer by telephone from a doctor in Britain. The camera captured the deeply personal moment, which was shown repeatedly on TV.

The progress of her illness was chronicled in detail in the tabloid press and weekly magazines. She underwent surgery and chemotherapy in the public eye — filming part of the experience.

The Archbishop of Canterbury Rowan Williams, who heads the Church of England, said Goody showed a brave side in the face of death.

"If in her earlier career it was all about her, then I think at the end it was about something else," Williams said.

Bald and frail, Goody married fiancee Jack Tweed last month in an elaborate event staged at an elegant countryside hotel outside London. The wedding was shown on television and the photos were sold, prompting criticism.

But Goody, who grew up in a poor London neighborhood, defended herself — saying she wanted her two young sons to have a better life than she had. Goody's father was a heroin addict who served jail time for robbery and died in 2005; her mother was a former crack addict who lost the use of an arm in a motorcycle accident.

"People will say I'm doing this for money," she said. "And they're right, I am. But not to buy flash cars or big houses — it's for my sons' future if I'm not here. I don't want my kids to have the same miserable, drug-blighted, poverty-stricken childhood I did."

Goody's publicist said last month that the cancer had spread to her liver, bowel and groin.

Prime Minister Gordon Brown said Sunday that Goody used her fame to help others.

"She was a courageous woman both in life and death, and the whole country have admired her determination to provide a bright future for her children," Brown said. He also praised her for her efforts, after her diagnosis, to raise awareness about cervical cancer and the need for screening.

Though many praised Goody in recent months for the way in which she handled her illness, she was often mocked in the press during her stint on "Big Brother" for her weight, her big mouth and her apparent lack of general knowledge. She branded the English region of East Anglia "East Angular," and asked whether it was abroad.

She didn't win the show, but she earned millions through television and magazine appearances, an autobiography, a perfume and a series of exercise videos.

Goody was labeled a racist bully for her treatment of another contestant, Bollywood actress Shilpa Shetty, while filming the British version of "Celebrity Big Brother" in 2007. Goody bad-mouthed Shetty's cooking of Indian food, mocked her accent and referred to her as "Shilpa Poppadom." While complaints against the show skyrocketed, so did ratings.

Goody's treatment of Shetty sparked anger in India and Britain — even becoming the topic of debate during a House of Commons question-and-answer session with then Prime Minister Tony Blair. A major sponsor suspended its advertising deal with "Celebrity Big Brother," and a chain of perfume shops pulled a Goody-endorsed fragrance, ironically named "Shh..."

After television viewers voted to evict Goody from the show, Goody — herself of mixed race — insisted she wasn't a racist. "I argue like that with everybody. It wasn't just because of the color of her skin that I was that aggressive," she said during an interview on Britain's GMTV.

Shetty and Goody eventually reconciled. On Sunday, Shetty told the BBC, "I am deeply saddened, but I am glad Jade is out of pain and that she died peacefully with her family around her."

After Goody was evicted from the "Celebrity Big Brother" house, the Indian Tourism Office invited Goody to travel to the country. She did, visiting charity projects and later agreeing to appear on the Indian reality show.

"The people of India have only seen a small part of me, and I'd like to show them that there is more to me," Goody said. "I'm a mother of two, a businesswoman. I can't be all that bad."

Goody is survived by Tweed and her two sons, Bobby and Freddie, with an ex-boyfriend, television presenter Jeff Brazier. She also is survived by her mother, Jackiey Budden.

Budden told reporters Sunday: "Family and friends would like privacy at last."

Salesforce unveils Twitter CRM software

Salesforce Inc. on Monday said it will offer a customer-relationship management application for the popular micro-blogging service, Twitter.

The new application aimed at helping companies find and assist their customers who are going to Twitter community to solve product problems rather than call customer service.

Comcast Corp. and Dell Inc. have already signed up for the Twitter to Service Cloud, San Mateo-based Salesforce said.

The software lets customer-service agents search for tweets on their products and companies, look through a database for answers and keep track of the "conversation level" on a certain topic or product. It will cost $995 a month for five agents and five business partners, and support for 250 customers.

Salesforce stock rose 6.53 percent to close at $37.03 Monday on a day when market indexes rose about 7 percent.

Meanwhile, Forrester analyst Jeremiah Owyang speculated on Monday that customer-relationship management could be a business model adopted by San Francisco-based Twitter Inc.

"This has tremendous opportunities for Twitter should they create their own brand management system that they can resell to the world's companies to monitor, alert, track, prioritize, triage, assign, followup, and report on the interactions with brands," he said on his blog Monday.