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I Talk, Vlingo Listens

Vlingo’s new software for BlackBerrys (the link goes live at 5 a.m. PT), which gives me the ability to navigate my phone entirely by voice, has me feeling like a kid on Christmas morning. I press a button on my Pearl, wait for a chime, simply say, “Web search, weather San Francisco,” and the browser opens and delivers me the weather in San Francisco. I can also use it to text and send emails to my contacts, though admittedly without the benefit of typing, punctuation is a problem.

As Om has pointed out, voice makes navigating phones easier, but the Vlingo application does eat up bandwidth. Regardless, the Vlingo software for BlackBerry devices is powered by the same speech recognition engine behind Yahoo’s oneSearch, the voice-enabled web search software that had me so excited I downloaded it in the middle of the keynote speech introducing it.

With the ability to text and email by voice, the Vlingo software has more features than oneSearch, but in return I’ve given Vlingo voice control of my entire phone. And that poses a problem for Nuance Communication, the leader of speech recognition software for dictation and for mobile phones. Nuance powers my BlackBerry’s voice dial feature — or at least it did until I downloaded the Vlingo client. (Device-wise, for now the software is only available for BlackBerrys.)

Both Nuance and Vlingo are going after deals with carriers because that’s where the money and reach are. Vlingo hopes to sign deals with partners to make them the default option for voice-powered commands such as web search or directory services. It’s popularity so far may be one of the reasons Nuance earlier this month filed a patent infringement lawsuit against Vlingo.

Vlngo’s CEO Dave Grannan says the suit is without merit; he also recently raised a $20 million round of funding, which he says he’s willing to use to fight the infringement case. However, infringement suits are a messy business and have long been used as a blunt instrument to fend off competition. Vlingo’s technology is good, but as a startup going up against Nuance, which has sued everyone from Yahoo to TellMe, it’s going up against a practiced plaintiff.

Technology-News: GigaOm

Outspark Launch Adds Weight to Micro-Transactions Trend

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.

Technology-News: GigaOm

Boopsie Gives Mobile Search a Speed Boost

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:

Technology-News: GigaOm

Voice Recognition Is Flying, Needs Focus

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.

Technology-News: GigaOm

Is Email The Ultimate Social Environment?

A $350 million buyout of Zimbra by Yahoo (YHOO), Thunderbird being spun out as an independent entity by Mozilla, and the impressive launch of San Francisco-based Xobni: Email, the most socialist of all web apps, is back on the front burner. As old as the contemporary Internet itself, it remains a constant source of pain and pleasure for all of us.

Every morning starts with a groan at the sight of dozens of unanswered emails. And yet somewhere in there is a note from mom, sister or another loved one that brings a smile to our faces. There is no denying the fact that as an application it has most, if not all, of our attention.

Given its critical role in our digital lives, I wonder if email could be the underpinning of a social environment — much less a social network and more a “relationship and interaction manager that aggregates various social web services” — that doesn’t require rewiring our brains and changing our behavior.

The new generation of Internet users tends to rely more on social networks for communication, but for the rest of us, email is still the hub of our daily lives. (According to one study, there are about 1.2 billion email users and 1.8 billion active email accounts worldwide.)

The demographic dissonance aside, email for a substantial portion of the population can be a good starting point for a networked experience. It has all the elements needed for a social ecosystem, namely the address book. And if you’re like most people, your address book is organized by friends, family, work, and acquaintances.

In other words, the relationship buckets (and the level of intimacy) are already predefined and have relevance. From there, all communication-related information — mobile numbers, geo-location data, instant messaging identities and of course, email addresses — are just a click away. So what’s missing? Discovery and presence, and synchronicity. The good news is that a lot of these issues are being worked on by two San Francisco-based startups, Xoopit and Xobni, the latter having just launched.

First lets look at Xobni (which would have been my pick for the coolest company at TechCrunch 40) and what they have built. They have an adjunct application for Microsoft Outlook, which scans through the entire email database and quickly establishes relationships among the people you email, and ranks them according to frequencies and relevance.

The best feature of this application is that it can tell you when a specific person is most likely to reply to you and how quickly. It is not discovery and presence in the purist sense, but it’s close enough. Future versions of Xobni’s software will bring together various web services — everything from Flickr photos to Twitter. I like the idea of a quick query that matches a name with a photo from Flickr or Photobucket. Similarly, it would be great to find a way to integrate Twitter messages into the same client and not deal with a separate application. (I wrote about this Universal Communication Client for Business 2.0 back in July.) (If you want to try Xobni, use invite code GigaOM — only the first 100 people are going to get the beta downloads.)

While Xobni is focusing on Microsoft Outlook, startup Xoopit is focusing on the web mail universe. By combining some of its own proprietary technologies, among them a unique file system and search and messaging protocols including RSS, Xoopit has come up with such a unique user experience that it made me think: This is what Gmail should have been.

The company is co-founded by Bijan Marashi and Jonathan Katzman, formerly of Inktomi and TellMe Networks, respectively. Xoopit is very early in its development cycle but is still very impressive. (You can sign up for their beta here.)

The entire system is built to bring all types of web services right into the inbox. You go to the Xoopit web site, sign up, and input either your POP3 or IMAP mail server information. The messages immediately start getting pulled into your Xoopit account. If you have an IMAP server, then the messages reconcile with your original inbox. From here on Xoopit lets you view your inbox (and your attachments) in many different ways.

Take photos, for example. Most of us end up emailing photos (or links to photos) to each other. Links of photos are used to access them, while attachments are used to get a “preview.” The Xoopit GUI makes it easy to see photos on a grid, much like you would on, say, an iPhoto. On social networks photos are shared via some sort of a photo (or slideshow) widget. In this case, the email environment becomes the place where you can experience photos and videos. The next obvious step for Xoopit is to bring in Twitter and other such services into their playground.

In many ways, Yahoo might have taken the wrong approach to its new social networking experiment, Mash. Instead of starting as a network, it should have started from within Yahoo’s email service, which has some 250 million subscribers. Regardless of what Yahoo does, the fact of the matter is that “email” is finally getting some sorely needed attention, and let’s just hope it leads to something better, something that doesn’t make us all groan every time we open our inbox.

Technology-News: GigaOm

Yahoo Buys Zimbra for $350M in Cash

Yahoo (YHOO) has purchased web-based email provider Zimbra, Kara Swisher is reporting. Mike Arrington has Om distracted judging at his TechCrunch40 conference, but says the price is $350 million.

Update: We just talked to a company spokesperson who confirmed the deal and the purchase price, adding that it was mostly in cash.

Yahoo had only just rolled out a major overhaul to its popular mail service, based on its $30 million acquisition of Oddpost in 2004.

When Om gets out, he’ll add to the story. In the past he had called Zimbra “email done right” and “quite impressive actually.” Some of us use it internally at GigaOM.

Zimbra had some six million users as of May. Yahoo Mail has more than 250 million.

Zimbra has raised about $30 million, and recently did a deal with Comcast (CMCSA) to offer its services to Comcast’s 12.5 million broadband customers.

Technology-News: GigaOm

How China’s Great Firewall hurts China’s tech industry

WJA on the WallWhile visiting China to speak at an arts festival last month, I also filed a GigaOM story on HiPiHi, a start-up founded by one of the country’s top Internet entrepreneurs. Thanks to Om’s reputation, the article is easily the highest profile coverage yet for the upcoming “Chinese Second Life”, sure to be of great interest to investors and tech executives, most especially in China.

After it ran, however, I noticed one small problem with the piece. It can’t even be accessed in China.

I first noticed this in the business office of a hotel atop the legendary Huangshan Mountains. The story, along with all of GigaOM, was being blocked by The Great Firewall. Not only GigaOM, as it turns out, but apparently every Wordpress-driven blog has been banned in China starting in 2005. So if you’re in Shanghai, you can’t read Scobleizer. You can’t even visit I Can Has Cheezburger, for God’s sake. (Im in ur Interwebs, censoring ur LOLcats.)

Since I couldn’t post in China, I had to e-mail the article out of the country as a Word doc so Om and Carolyn could publish it — an extra hit to GigaOM’s resources directly attributable to the Chinese government. But even if I wrote the HiPiHi story on a non-prohibited blog system (I could access TypePad from China just fine) it would have gotten blocked anyhow, because it briefly mentioned the Falun Gong, China’s brutally repressed meditation sect.

I was expecting some level of political censorship when I went there, of course. At times, it’s pathetically obvious and inept. While watching a hotel broadcast of CNN International, for example, the anchorwoman mentioned an upcoming story on a Chinese dissident — and seconds later, the channel went black. The next night, CNN and all other Western channels had been replaced by CCTV (China State TV) programming. Other times, it’s more insidious. While reading Yahoo! News in the lobby of our Beijing hotel, my girlfriend Jennifer noticed that one of Yahoo’s top stories was about AIDS activists in China. But before she could even click on the link, the page auto-refreshed, and after it reloaded, the story was gone.

But the thing is, when interviewing HiPiHi’s execs, I didn’t even pursue the subject of Falun Gong for political reasons. It was first broached by Jen, who was there to take photos, but I was already planning to pose the question as an essential part of my business coverage. Since HiPiHi is competing with Second Life and other upcoming user-created metaverses, the issue of just what opinions its users can express is a basic matter of market distinction. And so now, a couple dozen high-tech/venture funding blogs are discussing the GigaOM article — but none, as far as I can tell, are based in China. Thanks to their own government, which claims to promote the nation’s burgeoning technology sector, the Chinese digerati are simply kept out of that conversation.

Much has been written about how Internet censorship, actively abetted by Yahoo! (YHOO), Google (GOOG), and other top companies in the tech industry, is bad for the Chinese people. Less has been said about how it’s bad for the tech industry itself. As my HiPiHi experience suggests, it prevents investors and executives in the country from getting the full range of information they need to discuss and make good decisions in a transparent and timely matter. (A couple Net-savvy Chinese friends were able to read the article, they told me later — but only after they’d run it through the EFF’s indispensable firewall breaker. And would they have even found it, had they not already known what to look for?) As a consequence, China’s participation in the global high tech economy is crippled and incomplete, and in any partnership with the free world, threatens to hobble us all.

At the same time, this also gives me great optimism that the Great Firewall is ultimately doomed. (Even if the government exploits U.S. accusations of hacking as a “national security” rationale to thicken it even further.) China continues to be rocked by disastrous trade scandals that might have been prevented, had their corporations and investors gotten fuller access to outside reports of internal corruption and mismanagement. For all the heroic efforts of Chinese free speech dissidents (ably reported by Rebecca MacKinnon and others), it may be China’s business people who push forward the final, irresistible demand: To make our country the global power it’s destined to be, the Wall must finally come down.

Photo of author on actual Great Wall by Jennifer Schlegel

Technology-News: GigaOm

Online Video: Mad Money & Battle For The 10th Spot

While Google’s (GOOG) YouTube continues to gain market share and increase its lead in the Web video market, funding to its competitors continues to flow unabated. Yesterday, Dailymotion raised $34 million, following on the heels of Veoh ($26 million) and MetaCafe ($30 million.)

These three companies alone have raised a total of $125 million — a stupendous amount of money considering that they don’t even figure among the top ten video destination sites.

The future for these companies is unclear, but that level of investment indicates that they may have no option but to become standalone businesses. In the meantime, the number of likely buyers is slowly decreasing. For now, NBC and Fox, who are backing Hulu ( $100 million), don’t seem to care too much, and Yahoo (YHOO) has its hands full. Microsoft (MSFT) isn’t going to be interested because all three of the video sites use rival Adobe’s (ADBE) Flash technology. A European media or telecom company could be a buyer, but I can’t think of any right now.

The lure of video advertising (something even YouTube is trying to figure out) is too strong for investors to resist. I think online video advertising is a bit of a chimera. The big challenge for all online video destinations is the ever-present threat of lawsuits for infringing content. Every lawsuit drains resources (and cash reserves), as Veoh is about to found out. Regardless, the battle for the tenth spot should be an interesting one. Time to pop the popcorn.

Technology-News: GigaOm