It has been a long time coming, but Powerset, a San Francisco-based contextual-semantic search engine has finally launched. I urge you to try it out, for this is quite an impressive search effort, despite the fact it is currently limited to searching Wikipedia along with some supplementary results from Metaweb’s Freebase. I think it has made Wikipedia much easier to use. I like how you can do more topic-based searches and get a holistic view of the information you’re looking for. Danny Sullivan over on Search Engine Land has an elaborate and fantastic indepth review of Powerset, and that frankly obviates the need for any other review.
That said, Powerset faces an uphill climb, especially when it comes to consumer mindshare. I think Google has become so synonymous with search that it is virtually impossible for a newcomer to establish a toehold. Powerset’s approach is different, and its tactic of applying its technology to specific content repositories such as Wikipedia is smart. But will they (web searchers) come and use Powerset?
At our recent GigaOM PM event, Chad Walters, director of engineering, search and platform at Powerset, gave a talk about how his company was using Hadoop and other clever technologies to meet its immense infrastructure needs. Here are some bits from OStatic’s live blog coverage of the event:
Powerset applies deep natural language processing (based on technology licensed from Xerox PARC), which means the company needs 100 times more processing horsepower than a simple keyword searching and indexing. Powerset uses a distributed database system called HBase in tandem with Coral, its Document Processing System. Coral uses Hadoop as its job control machine. Powerset uses 92 eight-core machines to do processing.

Google isn’t evil and it isn’t being beaten down by the recession or fewer click-throughs on its ads. At least that’s the message CEO Eric Schmidt tried to convey during an interview with Maria Bartiromo that will air on CNBC after the close of markets today.
The grown-up Googler sat down with the Money Honey for a frank talk about Google’s most recent earnings, its plans to move into more enterprise applications, its hopes for monetizing YouTube, mobile phones — even its particpation in the 700MHz auction. Oh and how it’s still trying to avoid being evil.
The good news is that Google is still focused first and foremost on advertising, in particular on gaining as much share of that market as possible. The bad news is the click-throughs rates for search advertising in the U.S. are down, which prompted investors to shear some 40 percent off the firm’s market cap from the beginning of the year through mid-March, when numbers showing poor U.S. click through data surfaced. Schmidt argues that the lowered click-throughs will actually result in higher revenue because the quality of the ad viewer is higher — there is less casual clicking. He also points out that recessions drive advertisers to spend money on ad formats such as search because they can tell how effective those ads are.
Recessions do tend to drive advertisers toward measurable campaigns, and Google will likely benefit. However, the decreased click-through rates are something those not just Google’s investors are watching, but many in the startup community as well. Are consumers becoming more leery of search ads and tuning them out or are they really getting better at determining which ads are relevant to them, resulting in fewer, but higher-quality, clicks? The answer to that question could determine the success of many of the web-based consumer service providers hoping to make money on new ad formats — and on Google AdWords.

We get all giddy over here at GigaOM when it comes to storage and backup products, so it’s worth noting that today a service called Syncplicity launches in public beta. What’s nice about the service is it offers both storage and backup as well as automatic syncing across PCs. What makes it better than most is its ability to sync offline documents.
Right now, the bridging feature that syncs your offline work when you get online is only available for Google Docs/Word files and Facebook photos. However, Leonard Chung, co-founder of the service, says more offline syncing options will come soon. So will a Mac product. Because my PC is wonky at the moment (hey, it’s four years old,) I didn’t get a chance to try out the software, but if you guys do, please leave us a note in the comments section with your thoughts.
Initially the service is free, but Syncplicity plans to charge somewhere around $20 a month for unlimited storage and access. When compared to a backup service like Carbonite, which charges $50 a year, that seems pricey, but it does offer the syncing, backup and offline access all in one package. The company is using a combination of their own servers hosted by Rackspace and Amazon Web Services to support Syncplicity.
More GigaOM backup and syncing reviews are here:
And for reviews from Web Worker Daily see here:

This morning, Google said it was launching a hosted ad server program for small- to medium-sized web publishers called Ad Manager. As it happens, I was on the phone with James Bilefield, CEO of open-source ad-serving company OpenX (formerly Openads). Bilefield gave the usual this-validates-our-market spiel heard from entrepreneurs whenever a large competitor enters his company’s space, but he was also eager to point out that Google’s version is hosted, whereas OpenX can be downloaded and run on a publisher’s own servers — keeping their revenue and ad information in-house.
Right now, OpenX serves about 30,000 mostly small- to medium-sized publishers with “billions of ads per day,” according to Bilefield. Google’s recent buy of DoubleClick gives it an ad server for the large sites, but Bilefield says that now that the deal has closed, OpenX is winning a few customers based on worries that Google, which is both a publisher and an ad server, might compete against some of DoubleClick’s clients. It’s a similar argument made in the OpenX blog today.
Bilefield is nonplussed by this argument announcement, noting that Ad Manager has been in trials for a year and is now opening up only in public beta (to be fair, that’s how Google does things). OpenX recently scored $15.5 million in a second round of funding, and announced its own hosted ad server. OpenX makes most of its money helping ad networks source publishers. If Google Ad Manager takes off in the smaller publisher markets that OpenX services, advertisers may turn to Google for that service, or see OpenX as second-tier.

Today’s Wall Street Journal devotes 2,400 words to Mark Zuckerberg’s hiring of former Google exec Sheryl Sandberg as Facebook’s COO, and his attempts to mature into the CEO role at a large company. After reading the article I decided to sum it up in haiku form for our readers.
Growing up is hard
Doing it in public sucks
Facebook needs money
All levity aside, as a young founder Zuckerberg is treading on the worn footsteps of entrepreneurs everywhere. College is one of the best times to start a company because you don’t need to be mature. You have the ability to spend all hours obsessing over your creation, not paying rent and generally avoiding other responsibilities. Bill Gates, Michael Dell, Marc Andreessen, Sergey Brin and Larry Page all began their efforts in or immediately after college.
Zuckerberg is lucky, his collegiate startup has soared. And he now has the unenviable task of growing from a self-absorbed adolescent into a gracious adult in public. Not everyone makes this transition and no one does it without a few awkward moments. He’s also hampered by a point of view that’s unique to entrepreneurs.
Like many entrepreneurs, he’s recognized his flubs and is seeking to address them. Also like a true entrepreneur, he doesn’t spend a lot of time apologizing for his mistakes, but opts to go out and act differently. Those of us in the real world can fault him for that, but that mindset isn’t as much a function of age as it is a hallmark of an entrepreneur. As Zuckerberg matures, he’ll still have that mindset, but he’ll likely hide it a bit better.

T-Mobile International, which is currently using Wi-Fi for its convergence offering in the U.S., has disclosed an investment in Ubiquisys, a maker of femtocells. T-Mobile also said it was trialling the startup’s femtocells in Europe. Femtocells, which plug into an existing broadband connection to provide a signal in places where mobile network coverage is poor, are getting their day in the sun. Google, Accel Partners and Advent Ventures are also investors in Ubiquisys, which has raised $37 million.

An in-depth look at the debate over web analytics over at Computerworld has concluded that page views are dead (although we track them assiduously at GigaOM), and like heirs squabbling over an inheritance, startups are fighting to define the page view’s successor: engagement.
The story mentions Israeli startup Nuconomy, which measures engagement by tracking things such as widget downloads and comments. Nielsen, which abandoned page views to focus on time spent on a site, thinks that’s a better measure of engagement, especially when it comes to online video. But a one-size-fits-all approach may not win out. The article quotes Avinash Kaushik, a web analytics consultant whose clients include Google, who says:
“A lot of people think the page view is dying so we should measure engagement,” he noted. “Just because the page view died, who…gave you the right to move to engagement? The web is becoming more fluid in terms of how people interact with it. The fluidity does not mean the core questions you wanted to answer go away.”
This isn’t just a semantic debate, it’s a struggle to define how advertisers will dole out the dollars for the myriad of online publishing sites and content networks out there. With online advertising reaching $21 billion last year, that’s an estate worth fighting for.

For a long time, I had this belief that the worlds of web and voice would converge, unleashing upon us a whole new class of voice-web mashups. Instead all we got were some marginal ideas and rarely-used widgets. Voice, in particular, remained too difficult for web developers. In the end the two turned out to be awkward roommates, never really comfortable with each other.
Lately, VoIP insiders have started talking about taking a platform approach -– a way to add voice to web applications easily while leaving complex tasks such as peering and billing in the background. Ribbit, a Mountain View, Calif.-based startup, is the latest to join the fray, and it has perhaps the most audacious (and equally risky) strategy for bringing web and voice together.
If you strip away the hype (meaningless blather such as the company’s claim of being Silicon Valley’s first phone company), what they have done is built their own Class 5 softswitch and back-end infrastructure and married it to front-end technologies like Flash and Flex from Adobe Systems (ADBE).
Furthermore, the platform is able to take inputs from different communication tools — XMPP, Skype, Yahoo Messenger, MSN and Flash Media Server –- and make them talk to their “switch.” The platform uses SIP protocol for all voice communication.
Accordingly, Ribbit is offering API (Application Protocol Interface) access to much of our switch today, allowing third party developers to create rich integrated telephony applications without previous knowledge of telephony. Currently, the Ribbit API is optimized for Flash / Flex developers because of the pervasiveness of the technology (Flash is resident on 98% of the world’s computers). This means that Ribbit communication applications written in Flash will run without the need of a client download.
“What we have done is made voice an object that you embed into your workflow (or software),” said Ted Griggs, chief executive officer of the company. “We didn’t want to change how people did things, like communicate via Skype, and wanted to integrate the platform to work with any phone.”

Developers just have to write apps, Griggs said, and worry about the back-end telephony stuff. In exchange, Ribbit will take between 5 percent and 15 percent of the revenues generated by an application.
Briggs showed off a few applications, including one specifically targeting subscribers of Salesforce.com. Built by an independent developer, it was quite impressive. Another application worth checking out is AIRphone, developed by Joe Johnson of Knoware, that acts like an iPhone on your desktop.
The technological approach the company has taken is sound and has merit. It is the strategy and execution part that raises doubts about Ribbit and its future. For instance, I have on good authority that Adobe will be making a big splash with its VoIP plans sometime next spring, and is working furiously to put finishing touches on its offerings. This would make Adobe Ribbit’s biggest competitor. And there are others, like Lypp, who are following a similar strategy. Meanwhile Google, which owns GrandCentral, could easily roll out its own version of a voice-web platform.
The biggest challenge for Ribbit will be building and nurturing a developer ecosystem. It needs patience and a lot of money. Ribbit claims it already has about 600 developers involved in its platform, but will the $13 million the company has raised from venture capitalists be enough? I don’t know.
Nevertheless, Ribbit seems to be rising to the challenge posed by Daniel Berninger, who in a column here wrote:
The death of the telecom business remains a standard prediction, but telephone bills continue to arrive…aside from price, the telecom business remains largely unchanged by VoIP…although improved performance and falling costs usually combine to produce new applications, this does not seem to be the case for VoIP and the voice business. If the infocom sector can move beyond cheap telephone calls, it might finally represent the threat to the status quo imagined by my AT&T colleagues.
Outspark, a San Francisco-based casual games publisher with offices in Seoul, South Korea, launched its North American games portal yesterday. Like Nexon’s South Korean-developed MapleStory, Outspark games will be free to play — in addition to advertising built into the games and the portal, the company will rely on micro-transactions of virtual goods sales to generate revenue.
Their first game, Fiesta, published by OnsOn Soft in Asia, is an MMO currently in open beta. Outspark, which secured $4 million in funding earlier this spring from Altos Ventures and Doll Capital Management, plans to work with other developers to publish community-oriented multiplayer casual games as well.
I put a few questions to CEO Susan Choe and Chief Studio Officer Nick Foster yesterday to get a better sense of the company’s plans.
The micro-transaction model has been shown to be very successful in South Korea, where Outspark also has experience, but has been slow to take off in North America. Why do you think that is and why do you think it’s time to launch this revenue model here?
SUSAN: The micro-transaction model was slow to gain traction in North America due to a lack of payment solutions like those readily available in Asia. The response of North American gamers, however, to this type of game and item sales model has been tremendous and forms the basis of Outspark’s initial releases. Our expertise in running global portals like Yahoo (YHOO) and leading game product management at companies including EA (ERTS), Nexon, Blizzard and NHN will help us continue to deliver great results.
What demographic do you see as your primary target and how will you reach it?
NICK: Outspark’s initial target demographic is the youth market, specifically those between the ages of 13 and 24. Friendly, socially driven games appeal to all ages, however, and we’re attracting a diverse community of people looking for a different style of play than can be found in conventional console or hardcore games.
Your competition, in my view, is not necessarily World of Warcraft but socially rich Web 2.0 apps like Facebook and YouTube (GOOG). How will your products compete — or integrate — in that space?
SUSAN: Outspark’s goal is to provide a socially active virtual playground for online gamers. By providing games that players genuinely want to spend time in and building a community around that shared experience, Outspark can be a good partner for socially rich Web 2.0 companies by providing their communities with additional engaging activities.
You talked [in the release] about Outspark as a “platform.” Can you tell us more about that?
NICK: Outspark understands online gaming and the human drivers that make game communities successful. We’re combining our expertise in global entertainment with an understanding of virtual item sales and good game design. Outspark’s goal is to find media partners and work with them to apply this holistic “platform” approach to help build additional channels for their IP, around which online communities can grow.
Mobile search, despite the presence of giants such as Google (GOOG), Yahoo (YHOO), Microsoft (MSFT) and AOL (TWX), is wide open. Any startup has as good a chance as any of the the big boys, just as long as they have cutting-edge technology and enough business acumen to capitalize on it. One such startup that is getting a lot of buzz is Boopsie -– yes, you read that right — Boopsie.
The company quietly launched at the recent Mobile 2.0 conference, but went largely unnoticed. And that’s a shame, for I ended up downloading Boopsie’s mobile search application to my Nokia N95, and I was impressed. The app supports all platforms, including the iPhone. After talking to the company — I am typing this while sitting in the airport in Las Vegas, waiting to get home — I like their approach. (It is not clear where the company is based, and their website offers no information.) They’ve basically created channels of content that might be useful.
The search query on Boopsie gets rolling with a “smart prefix” — which means that instead of typing out the whole word, you only need to type the word’s first few letters. Start typing “Caltrain,” for example, and you get a list of options to choose from, including the Caltrain schedule. I will get more details about Boopsie when I get back, but I am told that their technology has impressed many — Yahoo wanted to buy them, apparently — but right now the company is looking to raise Series A funding.
If the team is smart, they should try and position it as a solution for the wireless carriers, who I am sure aren’t too thrilled about Google’s mobile plans.
Folks if you try it out, please let me know what you think about this little mobile app.
Related:
There’s big action in search engines these days: see Web Worker Daily’s list of 11 alternative search engines, Read/Write Web’s top 100, and the GigaOM show’s opening question to Google’s (GOOG) Marissa Mayer about the spate of search engine competitors.
But even as would-be Googles aim at the apparent heart of search — the keyword or natural language query itself — the place of greatest user need could lie a level above, at the iterative and exploratory pathways that users often follow in finding and refinding the information they need.
We know who owns the search engine. Who will own the entire search experience? Right now it’s up for grabs.
Teleporting or orienteering to what you want
In 1993, researchers Vicki O’Day and Robin Jeffries contrasted two types of information-seeking behavior: teleporting and orienteering. With teleporting, you try to jump directly to what you’re looking for — think of the Google “I’m feeling lucky” search. With orienteering, you use local and contextual information to guide you, step-by-step, to your information destination.
In teleporting, all you need is the perfect search engine. With orienteering, you need a bunch of different tools: general and specialized search engines, browsing history, query reformulation and refinement, information refinding support, and so forth.
Here’s an example of orienteering from Jon Udell:
Microsoft user interaction researcher Jaime Teevan told me that search engines “theoretically support teleporting, but in practice, they’re used for orienteering.” Despite this potential disconnect, she’s found that people are pretty satisfied with search today.
Users do, however, express feelings of being overwhelmed by information, and searches sometimes outright fail, as when Teevan observed a user trying without success to find the customary tip for a hairdresser. Could better orienteering support help with information overload and failed searches?
Why people orienteer
Teleporting doesn’t always work. Search engines don’t know enough about what we want to get us there, and we’re not giving them much help — people tend to use two- or three-word keyword searches. Better personalization will help, but won’t, on its own, remove the need to orienteer.
Orienteering has advantages over teleporting, too. It gives you confidence in the information you’ve found, teaches you the context for future searches, and allows you to backtrack if you happen to go down the wrong path. With teleporting, you either get there or you don’t, and if you don’t, you need to start almost from zero.
Search experience improvements, present and future
Google itself includes features that support iterative, step-by-step search with options such as “refine your search,” which suggests ways to quickly narrow in on just what you want; “similar pages,” which finds pages similar to a result you like; and a “spell checker,” which suggests alternative queries with more common spellings than the ones you’ve already used.
Search engines like Google, however, usually only see certain parts of the search experience. In refinding the article he knew existed, Udell may have used Google as a first step, but then he navigated through the New York Times site. No one search engine sees all of the pathways you take through the information forest.
The browser’s the place
Your browser already supports your orienteering, both with basic history features and by giving you access to all the search engines and web sites you wander through on your way to your destination. But it could do better, and product developers and researchers are aiming to improving it.
Microsoft’s Teevan is experimenting with a browser toolbar plug-in that supports refinding information online, a very common and often frustrating task. She told me other researchers are working on better history displays; for example, linked thumbnail images. Not to be left out, Google already has the start of an orienteering solution: its “web history” feature, which works via the browser-installed Google Toolbar.
Of course, other search engines have a place in orienteering as well, because orienteering-style search relies on multiple tools to gradually step towards the goal. For example, if a general search engine doesn’t get you moving to where you want, a vertical or people-powered search engine might. Still, there’s an opportunity here to improve the entire search experience — and you don’t have to build your own search engine to do that.

As a big believer in real-time interactions, I was excited to read about TokBox, a new startup that just received $4 million in funding from Sequoia Capital and has the blessing of the very same people who were involved with YouTube (GOOG), including YouTube’s third co-founder, Jawed Karim. (Though that doesn’t ensure success!)
By leveraging Flash features that connect to a computer’s built-in webcam and sound card, TokBox allows you to conduct web chats via a web browser, without the need to boot up a special program. And the web chat module can be embedded into your blog or social networking profile.
It’s an interesting idea, but more of a feature than a platform for a standalone company or model for a viable, long-term business. Even without chatting with the company, it’s clear that this is an idea that can be quickly imitated by others, much like YouTube. If (and that’s a big if) TokBox is going to work, it will need to be rapidly adopted by the marketplace.
At that point, Sequoia can easily flip it to someone. If this is a modest success, then Cisco Systems (CSCO), which is looking to add some video oomph to its WebEx property, could fit the bill. If it’s a monster consumer hit, then Google’s (GOOG) YouTube could be a buyer.
But in order for TokBox to become a monster consumer hit, the company needs to fix its technology. I have been spammed non-stop this morning: 157 messages so far, all because a close friend signed up with TokBox and wanted to share it with me. No thank you, friend! For the sake of our friendship, please don’t share untried services with me. I am really not in the mood to be a guinea pig this Monday morning.
And to the rest of you who are thinking about trying TokBox: don’t. Not until these kids figure out what the problem is.
From WebWorkerDaily: Anne Zelenka says no thanks to video conferencing for web workers.
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It shouldn’t come as a surprise: some of the early Googlers who have cashed in their millions and are looking for new challenges are hitting the escape button. We wrote about this pending exodus a while back. Some of them are leaving to start their own companies, a trend that seems to be gaining momentum.
My venture capital sources are telling me there’s been a sharp increase in the number of business plans crossing their desks with Googlers as founding teams. With Google (GOOG) stock being where it is, and Google continuing to pay top dollar for startups, it makes sense to play Sand Hill Road Roulette.
However, a few Google employees are changing zip codes and defecting to Facebook. My ex-boss, Josh Quittner, who is back to being a reporter, has this piece on yet another recent high-profile defection.
Benjamin Ling, a high-ranking engineer described by Google watchers as one of “Larry and Sergey’s golden boys” has defected—to Facebook.
For folks like Ling, the lure of a pretty young thing like Facebook is too much to resist. Of course, there is little downside if you have Googillions in your bank account. So what if Facebook turns out to be Fakebook!
Breaking: Google (GOOG) has bought Jaiku, a Finland-based mobile IM and presence company. The news just broke, where else, but on Jaiku. The terms of the deal were not disclosed.
The details of the deal are on the Jaiku blog, and the company has put up FAQ for current users. This is indeed good news for the small Jaiku team, and another piece of the Google Phone Puzzle.
Activity streams and mobile presence are important areas where we believe Google can add a lot of value for users. Jaiku’s technology and talented team are a great addition to Google’s current application and mobile teams
At first glance, this is an excellent acquisition on the part of Google. OK, time for me to sit down and start making sense of all the Google acquisitions in the mobile and VoIP space.
Predictify, a social prediction startup, launched out of private beta today. It’s based on a belief in the wisdom of the crowd, especially when it comes to predicting the future. After all, if nine out of 10 people think the same thing is going to happen, odds are that outcome will occur, right? Well, so the site’s premise goes. Users are lured in with the opportunity to earn a few bucks here and there by offering up their guesses as to the outcome of future events, from which presidential candidate will win the Democratic ticket to the color of Angelina Jolie’s gown at the Oscars.
The site has an ever-changing list of “free” and “premium” questions. The premium questions, sponsored by companies looking to poll the Predictify audience or advertise a product, pay accurate guessers a percentage of the total money offered by the sponsor for their participation.
Guessers offer up answers to non-paid questions as well, and in turn help to “build a reputation” based on the accuracy of their predictions. The more accurate the user is over time, the higher their payouts are on the premium questions.
In order to be eligible for a premium-question payout, users have to provide certain demographic information, such as age, income, political party, and religion. The question sponsor gets to chose which specific information they wish to gather from the user and is allowed to keep the data gathered through that question private. Free questions, meanwhile, poll 100 users at most and the data is made publicly available.
Predictify competes against other social prediction startups, like ZiiTrend (which doesn’t pay users to predict future events) and traditional online survey companies that pay users to answer a series of questions online.
Company founders Parker Barrile and Mike Agnich, currently students at Stanford’s graduate school of business, started their Menlo Park, Calif.-based company in March. CEO Barrile previously worked at Google (GOOG) in business strategy, while CTO Agnich used to work at Zazzle, where he was VP of product technology.
We predict that unless the team finds some popular partners to pay for premium questions, the site isn’t going to last. Paying people to answer questions is a promising method of convincing users to sign up for the site, but the site doesn’t make it clear exactly how much money users can earn. It does, however, note how much the premium questions will pay out overall. It looks as if, currently, most of the premium questions on the site pay out a total of $500 (the biggest payout is $2000). But so far, according to a list on the site, the top-earning users in the private beta have made a total of just $9 . So we’re not really clear how broad of a user demographic the prospect of earning a few bucks for providing predictions will draw.
It’s a challenge Predictify’s founders acknowledge. “It’s absolutely a concern. We believe the Internet population is getting more and more diverse,” Agnich told us. Their belief in the site’s premise, however, remains undeterred. “We’ve taken a lot of time looking at CNN.com,” Barrile added. “They allow users to post comments after the stories, and a lot of those comments are actually folks predicting the outcome. Prognostication is human nature.”
Meraki Networks, a Mountain View, Calif.-based mesh networking gear maker, which is leading the unique ComMuniFi model of providing wireless broadband access in communities, neighborhoods and small cities, has quietly launched a new three-tier business model that may boost the revenues, but it also might alienate some of its existing customer base. The problem: 2x increase in price of some of its gear from $50 to $150 per wireless router.
As part of the new plan has Meraki now will offer gear and services tailored to three market segments - Standard (for community and individuals wanting to set up free networks), Pro and Carriers. As part of this change, the company is going to increase the price of its gear by as much as 200 percent, a move that impacts its customers in the Pro-tier.
The Pro-tier includes property owners and small network and hot-spot operators, who are currently using Meraki to offer for-pay wireless broadband. The price increase has some of their customers, especially those who are currently operating Meraki-based networks, up in arms. They will now have to pay $150 per Meraki router versus $50 they paid previously.
Many of them were lured by the low cost of Meraki gear, in addition to the superlative technology, and the company runs the risk of alienating some of those customers. “It is no longer the cost effective system it was credited to be,” wrote one poster on the Meraki forums, while another lamented, “[What] a shame … drawn in by a cost effective method just to be slapped in the face by an uncaring company that used us as pawns.”
“This is part of the business evolution of the company,” says Sanjit Biswas, co-founder and CEO of the company that has raised venture capital backing from Google (GOOG) and Sequoia Capital. This is a dilemma that is faced by most projects that have roots in open source but eventually have to evolve into a for-profit business. Biswas justified the price increase because it comes with other benefits such as guaranteed support. The company will also start selling its gear through the channel in addition to direct sales, and needed to boost prices. I am not sure about the magnitude of the price increase.
Biswas explained that company has envisaged lot of interest from Internet Service Providers and carriers, especially those outside of the US, and that is why the company is introducing a “carrier edition” of its products. The price for devices being used to power free community networks remains unchanged at $50, though the company is going to include advertising on the landing pages for these networks.
The advertising move shouldn’t come as a surprise. Last month, Sonic.net, a Bay Area ISP had started offering wireless broadband using Meraki gear, and that offering included advertising as part of the package. Of course, given Google’s investment in the company, it isn’t hard to connect the dots.
“This is still an experiment, and if it works, then we can see advertising revenues subsidizing the hardware costs,” Biswas said. There are plans to share advertising revenues with network operators as well.
Related: Our previous coverage of Meraki.
What if the solution to having too many social web services was another social web service? That’s FriendFeed, a yet-to-be-launched service from some former Google (GOOG) employees that I’ve been trying out this week.
Yup, you’ve got to enter in your friends again, and upload a profile pic. But then you depart FriendFeed to do the things you normally like to do — upload photos, write 140-word broadcasts about your life, listen to music. Your friend, also a FriendFeed member, goes and does the things he likes do to — update his Netflix queue, write full-length blog posts, Digg stories he finds interesting. Through FriendFeed, you’re kept apprised of one another’s activities.
Say he starts writing reviews for Yelp — he doesn’t have to tell you about it, you just start seeing it show up in your FriendFeed. You get an aggregated feed, in one place, of everything all of your friends do, while you can push out an aggregated feed of everything you do onto a blog or social network (click on the thumbnail on the left for a screenshot of the setup, and the one below the jump for the public site feed). It’s a Facebook news feed for the whole web.
FriendFeed was just recently pulled together — it’s currently running a private beta test, incorporating, and closing funding all at the same time, co-founder Bret Taylor said in a phone interview on Wednesday. Taylor said he built the tool on the side while working as an entrepreneur in residence at Benchmark Capital with fellow ex-Googler and FriendFinder co-founder Jim Norris. “We became addicted enough to scrap what [else] we were working on,” is how he described the origins of the company.
The funny thing is, in some ways FriendFeed makes the web less social — stripping away the community features that make specific sites special. But it also makes the web more social, by emphasizing your real-world connections rather than relationships built around common interests or objects, and bridging together the little online islands where we express ourselves.
Taylor said early users tell him that “it’s not really about socializing in the traditional social network sense, it’s really about finding things to watch or read or listen to when you’re bored or waiting for something to happen.”
So what is FriendFeed, a big-picture idea or a side project? The question, said Taylor, is “Can we take the whole web and sort of project it through your social network?” Co-founder Paul Buchheit added, “We’re just trying to glue together the web.”
And if the impetus was improving on the Facebook news feed, what’s to keep Facebook from doing the same thing itself? “We want this to be open in all directions,” said Buchheit, citing various blog widgets and iGoogle modules. “It’s not a destination.”
With what appears to be a few hundred users in the beta, it was hard for me to find 10 people I knew on FriendFeed, and thus hard for me to see how useful this product really is. Still, we can’t be entirely uncritical: these are closely watched ex-Googlers we’re talking about, and they’ve already received a writeup in the New York Times. For me, some potential concerns that come to mind include private and public distinctions, and filtering loads of little alerts and activity records into something that’s not overwhelming. There’s also a risk of becoming too abstract — for instance, a FriendFeed item of a blog post that was Dugg could have at least three separate groups of comments.
Oh, and at some point this little project might have to make money!
Funnily enough, FriendFeed is not the only startup from former Googlers we’ve profiled today. Also check out my post on NewTeeVee about Ooyala, a video syndication and advertising platform.
Everyone wants a piece of Microsoft’s (MSFT) Office suite. Google (GOOG), Sun Microsystems (JAVA), IBM (IBM), dozens of start-ups and now, Adobe Systems (ADBE). The company today bought Virtual Ubiquity, a Waltham, Mass.-based start-up behind Buzzword, an online word processing software offering. I guess this is one way to respond to Microsoft Silverlight that takes aim right at the heart of Adobe.
Buzzword is the right moniker: the product is getting a lot of buzz because it has all the right words in its “game plan.” Never mind, there isn’t many people who have actually used this product? (Liz gave them a great review when they launched, but still not clear how the start-up did in terms of sign-ups and users.) How this start-up fits into Adobe’s game plan, or how it adds to their bottom line, isn’t quite clear.
That’s not important! What’s important is to play the “give an Office wannabe away for free” game. Everyone, of course is slugging it out with, everyone of course. No one really wants to talk about how many people are actually using these online offerings.
Adobe also released a new document sharing product called Share, which used Flash to share documents. You can embed the shared “document” in any web page, much like Scribd. This Share application is bound to temper some of the hype around document sharing start-ups.
Microsoft’s response? It has come up with a new offering called Office Live Workspace targeting the consumers and small business owners. Mary Jo Foley explains that this is not a hosted Office suite. It is an extension to desktop based Office and will work with Office Wannabes like OpenOffice and StarOffice.
With every new technology, innovation generates excitement, the excitement turns into buzz and the buzz, more often than not, gives way to a buyout in which a buyer overpays for a hot new startup — and triggers a slow deflation in the valuations of the startup’s competitors.
Cisco Systems (CSCO) spent lavishly for Cerent, eBay (EBAY) opened its checkbook for Skype, and Google (GOOG) ponied up for YouTube. Now EMC Corp. (EMC) has reportedly bought American Fork, Utah-based Berkeley Data Systems, the company behind online backup service provider Mozy, for $76 million.
BDS had raised about $1.9 million in venture backing, and as of April counted some 180,000 users of the Mozy backup service. Reviews of the service — including one in our own Web Worker Daily — have been positive across the board.
The acquisition by EMC is a surprise, though as Jeff Clavier explained on our show earlier this week, it is the non-conventional buyers (in other words, not Google, Microsoft or Yahoo) that are giving web 2.0 mergers and acquisitions a nice nudge.
The rationale behind EMC buying Mozy is still unclear, however. But one suspects that it would be a key component to them going after small- and medium-sized businesses, much as SoonR is doing by shifting its focus to backup-and-restore features. And although the $76 million sticker price does seem rich, EMC can afford to be lavish: it’s sitting on a windfall generated by the VMWare (VMW) IPO.
Valuations of VoIP providers haven’t been the same since eBay’s momentary loss of rationale, and while a shakeout in online video hasn’t exactly come to pass, there is little chance of someone cutting another $1.6 billion check anytime soon. For optical hardware startups, the Cerent buyout was a top, as was the case with another Cisco purchase, Stratacom.
From that perspective, the $76 million buyout of Mozy should be a warning signal for dozens of online storage startups that are trying to get our attention. Perhaps it is time for them to start accepting whatever offers they can get — fast.
PS: If you are aware of academic studies about big buyouts and the after-market impact on competitors, do let me know.
Dimdim, a Burlington, MA.-based web meeting services startup, wants to take on Cisco Systems’ (CSCO) WebEx and Microsoft’s (MSFT) Placeware by emphasizing simplicity and ease of use. The company, which is backed by investors including Draper Richards, Index Ventures and Nexus Capital India, launches its service today at DEMOfall 2007. Co-founded by Computer Associates alumni DD Ganguly and Prakash Khot, Dimdim has so far raised $2.5 million.
The service allows you share your desktop and files, and to IM, talk, and broadcast using your webcam. Dimdim is using Amazon Elastic Compute Cloud service to operate its service, and says its software is open source.
The service utilizes Adobe’s (ADBE) Flash 9 plugin for all of the multimedia apps. I gave the Dimdim service a brief spin and was impressed by its stripped-down simplicity and the speed with which it loaded into the browser, especially when compared to WebEx’s long startup process.
But that doesn’t mean WebEx (acquired by Cisco Systems for $3.2 billion) has anything to worry about right now, for Dimdim is still a work in progress. Its interface needs tweaking; in fact, it needs to be livened up. After all, web meetings can be fun. too. Nor was I clear as to how secure my information was going to be or where, exactly, all the files that I uploaded went. But I’m sure they will resolve all these issues soon.
This is a competitive market, and it’s going to get even more competitive. Sooner or later, Google (GOOG) is going to enter with its own twist on web conferencing, as WWD’s Anne Zelenka has pointed out. If Dimdim hopes to truly establish itself, it will have to focus relentlessly on “user experience.”
Back in September 2006, Nokia (NOK) CEO Olli-Pekka Kallasvuo declared that phones were no longer phones but multimedia computers that play back music, record videos, snap photos and — oh, yes — make phone calls. Apple’s (AAPL) iPhone has only reinforced that notion. And as the phone morphs into a multimedia marvel, there is a growing realization that the traditional user interface of a phone, the 12-key keypad, may no longer be enough.
The keypad limits how much information we can input into the tiny devices, and acts as a speed bump when we’re trying to navigate through a complex array of features. And what that means is that we need new ways to interact with mobile devices. Apple, for one, has bet on the touch screen and the fluid UI.
And then there are those who believe that voice input is the way to go.
Microsoft (MSFT) bet about $900 million when it bought TellMe Networks. Some startups are voice believers as well, such as Cambridge, Mass.-based Vlingo Corp, which I’ve previously written about. Earlier this week, I got a chance to see a demo by Yap, a Charlotte, N.C.-based company with a similar approach — that is, taking voice and inputting it as text for everything from IM to navigation.
Like Vlingo, you need to download a Yap application on your mobile phone to get going, and then use voice to enter everything from instant messages to TwitterGrams. Yap also does voice processing on the server side, and then sends information back on the mobile data channel.
There are others who are taking speech recognition even further — embedding it right into the chips that go into Bluetooth headsets. Cambridge Silicon Radio, a maker of Bluetooth chips, is now embedding speech recognition technology from Sunnyvale, Calif.-based Sensory into chips that will find their way into the Bluetooth headsets by the first quarter of 2008.
Sensory CEO Todd Mozer believes that everyone wants to do big things with speech recognition and mobiles, but in the end, the simple functions that enhance the hands-free experience are what make the most sense and are the most useful. Bluetooth devices make perfect sense as a starting point for voice commands. I agree with Mozer.
When I saw the Yap demo, I got the feeling that the application was trying to do too much; it needed some focus. After all, Yahoo (YHOO) and Google (GOOG) can take a similar server-centric voice synthesis approach and provide a more enhanced offering. Moreover, they can use their partnerships with large carriers to squeeze out little players such as Yap.
P.S.: All this interest in voice recognition and related technologies could explain the nice bump in the share price of Nuance (NUAN): up 64 percent for the year, even despite a recent pullback that’s mostly because company’s move into the mobile voice recognition arena isn’t sitting well with the Wall Street types.
Related Post: Sit Up and Listen, Future of Software.