ZDNet Must Read:
HP vs. Dell: Showdown at the Windows 7 upgrade corral
Here's a tale of two PC titans: HP and Dell. One executes well every quarter. The other doesn't. Both see big PC upgrade cycles ahead. Both are looking to ride... Continued »
November 27th, 2009
Smart toy shopping this holiday season
Looking to buy a ‘green’ toy for the holidays? San Francisco based Green Toys manufacture their toys out of recycled milk containers. The safe plastic material is called high-density polyethylene and it’s free from suspect chemicals you might find in other children’s toys. SmartPlanet talks to the co-founders about their business plan, innovative packaging concept, and how the company is reducing its carbon footprint by making its toys in the United States.
November 25th, 2009
DreamHost customers hit with nightmare
Hosting company DreamHost is becoming a nightmare for customers. The company has had trouble keeping its customer sites up and running as it migrates to a new data center.
The problems began to appear on Sunday and are stretching almost into Thanksgiving. Customers have reported that their sites have been down for 24 hours at a clip and when there is a recovery it isn’t a reliable one.
Among the problems:
- DreamHost has been upgrading their shared hosting hardware;
- The upgrade went way wrong;
- Customer support didn’t know what was going on.
The gory details can be found here as DreamHost writes:
DreamHost is currently experiencing a fairly large network failure. The extent is unknown at this time however it seems that most of our central services (dreamhost.com, panel.dreamhost.com, webmail, etc…) as well as our customer sites and email are affected.
We have our network experts up and looking into the situation right now, hopefully a solution or at least more information will be forthcoming.
In an email to a customer flabbergasted at the outage, DreamHost’s customer support team wrote:
From: DreamHost Customer Support Team <support@dreamhost.com>
Date: Tue, Nov 24, 2009 at 9:27 PM
Subject: Re: Site is down————————————————————————
- After reading this response, please consider visiting
- the URL below to comment on its quality. Thanks!
-
- http://www.dreamhost.com/survey.cgi?n=30693556&m=5589763
————————————————————————Howdy,
We’re quite sorry about the problems you’ve been running into today!
Our admin team recently upgraded the network in the data center where your machine is located. Unfortunately, we had a major network outage last night that caused one of those upgrades to no longer work correctly.Now here’s where things get tecnical. Sorry if your eyes glaze over while I geek out over the details…
Basically, after the network outage started happening, we had to reseat the Gigabit Interface Converter (GBIC) that was no longer being used. Once the GBIC was reseated the network started working correctly. In fact, all of the problems and packet loss went away again.
As it stands, our admin team is closely monitoring our network. They have been since this weekend’s data center move - but we are now on even higher alert since last night’s network outage.
Even tho I said this before, it bears repeating:
Sorry about all the problems!
I’ll be straight with you - our team is in a bit of a rough spot (from a networking standpoint) as we integrate all the new machines to this data center. If you are noticing any lingering problems do not hesitate to reply to this message.
—
Addendum: We’ve noticed that WordPress is returning 500 errors for a large number of customers. This is possibly due to problems with accessing the database that were caused by the network issues.
If you happen to notice this happening to your WordPress install, you have two plans of attack:
1. You can change the “template” and “stylesheet” settings in your wp_options table to the value “default”. After you’ve done this, visit your site again. It should hopefully come up.
If it does, go ahead and set the value back to what you had previously and go about your day.
2. If mucking with the database isn’t your thing, go ahead and change the name of the folder your current theme is in. You should be able to locate the theme folder via FTP or SSH in the “wp-content/themes”
folders wherever your copy of WordPress is installed.Doing this will make WordPress freak out (since it can’t find the files it needs) and flip your site back onto the Default theme. Then you can visit your site - which should be coming up in stripped down form - log into the admin interface and change your theme back to your preferred one.
As I said previously, please contact support if you are still noticing any issues. Even moreso if our bulk issue mover managed to put you into the high volume support queue when your intial ticket wasn’t even related to outages or WordPress 500 errors. We earnestly want to assist you with your problem and get your site running ASAP - so anything we can do to help, we will.
Thanks,
JasonP.S. I also need to apologize for using a canned response. The amount of support that was generated by this problem called for it tho. If I could have responded to each question individually, I would. I hope you understand that.
Lesson: Plan your migrations better.
November 25th, 2009
The Big Question podcast: Will News Corp. really pull its content from Google?
What exactly is Rupert Murdoch up to with his Google saber rattling? Jason Hiner and I handicap the week’s big question and figure out whether News Corp. would really pull its content from Google completely.
The Big Question is a joint production from ZDNet and TechRepublic.
You can play this 19-minute episode from the Flash-based player at the top of the page or:
If you like this podcast, go to to our iTunes page to rate it and leave a short review.
Stories discussed in this episode:
- A Microsoft and News Corp. search pact? It adds up (ZDNet)
- Analyst: News Corp.’s Google saber rattling really about MySpace (ZDNet)
- Microsoft tries toppling Google with a bribe (ZDNet)
- Rupert Murdoch’s grand subscription plan: Much ado over minimal revenue? (ZDNet)
- Cranky Geeks examine Windows 7, AT&T network, and whether Google steals (TechRepublic)
November 25th, 2009
SaaS and cloud computing: A look at the due diligence
This is a guest post by TechRepublic’s Scott Lowe, CIO of Westminster College in Fulton, Missouri. Lowe walks us through the software as a service and cloud computing due diligence. For more posts like this see TechRepublic’s IT Leadership blog.
Cloud computing, software as a service, outsourcing… to me, these are all synonymous terms. While “cloud computing” as a concept has gained tremendous traction and mindshare, the fact remains that this sector of computing is nothing more than today’s de jour term for outsourcing and the decisions around and challenges regarding outsourcing should remain front and center all the way through the process.
One of the first questions that comes up almost immediately after problem identification and before solution creation lies in the decision as to whether to build a solution or to acquire a product or outsource the development of a solution. There are a great many factors that go into this decision and here, I will discuss a few important points. Over the past few months, Westminster College has had a number of opportunities to ponder this very question and our answers have been varied depending on circumstances.
November 25th, 2009
News to know: Thanksgiving tech support; Apple; Silverlight; Facebook; Black Friday
Here are today’s notable headlines. You can get News To Know via email alert and RSS daily. For continuous updates see BNET’s around-the-Web tech coverage:
Adrian Kingsley-Hughes: “Turkey Day” tech support survival kit
Dion Hinchcliffe: The cloud computing battleground takes shape. Will it be winner-take-all?
Jason Perlow on smoking and PC warranties: For The First Time in Ages, I Agree With Apple
Mary Jo Foley: Can (and will) Microsoft keep Silverlight compatible across platforms?
Phil Wainewright: EuroCloud UK and a lesson in SaaS marketing
Larry Dignan: HP vs. Dell: Showdown at the Windows 7 upgrade corral
Microsoft CFO Liddell to leave; Klein named new finance chief
Andrew Nusca: Black Friday ‘09: $59 TomTom GPS, $78 Blu-ray player, $10 Blu-ray discs
Gallery: Top 15 Black Friday tech deals (right)
Facebook creates dual class structure; No plans for IPO yet
Amazon bolsters battery life for Kindle; Adds native PDF reader
Dennis Howlett: SAP Users start to flex their muscles
Bloomberg: News Corp. Joined By Rivals Considering Pulling Their Stories From Google
- New York Observer: Time Inc.’s Squires Assembles Team of Rivals to Harness Digital Media
- Andrew Mager: Parse.ly: better feeds with less garnish
Andrew Nusca: HP debuts iPAQ Glisten, 3G Windows Mobile 6.5 world phone on AT&T
Best Buy adds $197 HP laptop to Black Friday lineup
- Jason O’Grady: 1Password is must-have eshopping nirvana
- Andrew Mager: Video alpha app released on the Palm Pre
- Adrian Kingsley-Hughes: Apple ads dodge the network coverage issues
Michael Krigsman: The ’social enterprise’ comes of age
Oliver Marks: Is Google the Center of the Universe?
Smart Planet: The right argument on renewables
- Could better family planning help slow the effects of climate change?
- India to spend $900 million on solar power; will it succeed?
Rachel King: Numbers of new Core i7 iMacs are turning up DOA
Elecom’s travel ‘Spoon’ mouse is tiny and pricey
TechRepublic: Cloud computing and the build vs. buy question
Matthew Miller: fring announces free Skype video calling from Symbian smartphones
Review: Who needs a PND when you have CoPilot Live 8 on an HTC HD2?
Image Gallery: CoPilot Live 8 on the HTC HD2Heather Clancy: Schneider Electric is latest to draw link between building and network energy controls
Intel encourages green tech at the university level
Mary Jo Foley: Microsoft isn’t the only one developing a hardware-accelerated browser
Firefox hopes to one-up IE with fast graphics
Kingsley-Hughes: Law firm interested in hearing from banned Xbox Live gamers
Tom Foremski: A single search index would speed up the entire Internet
PaidContent: Joost Finally Acquired, By Online Ad Network Adconion
Dana Blankenhorn: Chrome OS will rise or fall on the safety dance
November 24th, 2009
Microsoft CFO Liddell to leave; Klein named new finance chief
Microsoft on Tuesday said that CFO Chris Liddell will leave the company at the end of the year. Peter Klein will take over as CFO.
The move (statement) is notable because Liddell brought a healthy dose of financial discipline to Microsoft. Liddell knew his way around a balance sheet and helped Microsoft cut $3 billion in costs. Liddell, who will work with Klein through a transition period, joined Microsoft in 2005 after being the CFO of International Paper and CEO at Carter Holt Harvey, one of New Zealand’s premier companies.
Klein joined Microsoft in February 2002 and is the CFO of Microsoft’s business unit, the division that includes the Office cash cow. Before coming to Microsoft, Klein worked in a bevy of tech companies including McCaw Cellular and HomeGrocer.com.
November 24th, 2009
Facebook creates dual class structure; No plans for IPO yet
Facebook has created a dual class structure that could be seen as a move to lay the groundwork for an initial public offering. However, the company said there are “no plans to go public at this time.”
Facebook, a private company whose valuation is watched almost as closely as if it were publicly traded, responded to a Wall Street Journal report on the dual class set-up. Dual class shares give a some shareholders more voting power over others. Google set up a dual class structure before its IPO.
In a statement Facebook said:
Facebook is a private company so we don’t typically share details on stock-related matters. But we did introduce a dual class stock structure because existing shareholders wanted to maintain control over voting on certain issues to help ensure the company can continue to focus on the long-term to build a great business. This revision to the stock structure should not be construed as a signal the company is planning to go public. Facebook has no plans to go public at this time.
That’s the official line, but it’s pretty clear that Facebook is keeping its IPO options open. The company isn’t going public today, but the groundwork is being laid for an eventual offering. At least Facebook will be used to the scrutiny. Usually dual class structures in private companies are quiet affairs.
November 24th, 2009
Amazon bolsters battery life for Kindle; Adds native PDF reader
Amazon on Tuesday said it has improved the battery life of the Kindle and added a native PDF reader.
The statement appears to be timed to get holiday shoppers off the fence about the Kindle as rivals like Barnes & Noble and Sony struggle to meet demand in time for Christmas.
Specifically, Amazon said it improved the Kindle battery life by 85 percent. In real world terms, that battery life equates to up to seven days with wireless turned on. Kindle said the improvement was delivered during a six month firmware improvement program.
The PDF reader means that Kindle users don’t have to convert documents in the PDF format. Kindle users can transfer the PDF documents via email or USB.
And naturally, Amazon noted that the Kindle is in stock.
November 24th, 2009
Barnes & Noble: Ramping production of the nook isn't cheap
Barnes & Noble said Tuesday that it will invest heavily on boosting production of its nook e-reader and that move will hurt future earnings.
Barnes & Noble cut its outlook for the fiscal year ending April 30, 2010. The bookseller said that retail traffic “will remain challenged during the holiday season.” But we knew that already. The big reason for Barnes & Noble’s new outlook is investment in the nook, which is sold out.
In a statement, Barnes & Noble said:
The company is ramping up its production schedule, incurring higher production costs than originally anticipated and increasing future investments related to its digital strategy, including additional people, technology and in-store marketing support.
How much higher are these costs? Enough to result in a serious earnings hair cut for fiscal 2010. The company now expects fiscal year earnings to be 33 cents a share to 63 cents a share, down from a previous forecast of 59 cents a share to 89 cents a share.
Also: All nook posts.
November 24th, 2009
HP vs. Dell: Showdown at the Windows 7 upgrade corral
Here’s a tale of two PC titans: HP and Dell. One executes well every quarter. The other doesn’t. Both see big PC upgrade cycles ahead. Both are looking to ride a bump in enterprise spending courtesy of Windows 7.
Place your bets.
As enterprises ponder the PC upgrade cycle and a move to Windows 7 tech executives are likely to have two primary vendors pitted against each other: HP and Dell.
The earnings conference calls from HP and Dell were very similar. Both talked services. Both talked upgrade cycles. And both talked up Windows 7 (see HP and Dell’s financial results).
HP CEO Mark Hurd said Monday on the company’s fiscal fourth quarter conference call:
The personal systems group also delivered in Q4, extending its market leadership by more than a full point yet again. We saw good consumer acceptance of Windows 7, particularly in the U.S. Given that we gained double-digit points of market share in U.S. enterprise and have claimed the top market position, we are well-positioned to win when corporations upgrade to Windows 7. PSG delivered healthy operating margins despite increasing commodity costs.
Dell CEO Michael Dell also was bullish about Windows 7—and also saw component costs rise. He said a week ago that PC growth could be in the mid-teens:
I think there is an aging installed base for sure. You just have an accumulation of new technologies at the hardware, software, virtualized client and these IT managers really know they cannot extend the life of these client assets forever. While I don’t think it is all going to occur at once, I think it will be a rolling refresh that occurs over perhaps 18 months, I can’t remember a time when a very high percentage of them skipped an entire operating system.
And Hurd and Dell sounded like long-lost twins about the corporate upgrade cycle too. Here’s Dell:
We think we are holding or gaining share in the right kind of price points. Our efforts on the cost side should expand our ability to profitably compete in a larger portion of the price points. What I would also tell you is that the pipeline of client opportunities we are already seeing more client activity in the last 30-60 days than we have in a long time and the pipeline for client activity kind of going forward into next year is the strongest it has been in a long time as well. So if I look at our commercial businesses the second quarter was kind of a bottom. The third quarter was certainly better. October was the best and November will be better than October.
Here’s Hurd’s at bat as he references HP’s share gains and the corporate upgrade cycle:
I think it is important to note we don’t usually start with an objective of gaining share. It’s more the result of us just trying to do the right work for the customer and I think as we mentioned a couple of times, we have increased our sales coverage, which we think is part of the reason that you have seen this performance occur as it has. Second, we’ve worked really hard to work on our service experience and the service experience is a really big deal, So it’s a combination of trying to get more at bats and frankly in the U.S., this is the place that we haven’t had as many at bats as we’d like to have and we have increased sales coverage there. Secondly, trying to continue to focus on service, so yeah, we feel pretty well-positioned that as long as we can maintain the at-bat level and with the service experience that we are delivering now, that we think we will be in pretty good shape. I think you couple that with the product line-up that we have just announced and Windows 7, we think we’ve got a pretty compelling offer so yeah, we’re optimistic about it.
Now it’s possible that this Windows 7 upgrade cycle will be big enough to lift all PC players, but ultimately it’s death match with Dell and HP—especially in the enterprise. The rub: Dell’s financial performance is spotty and that reflects what could be a vicious crunch. HP squeezes Dell from above and Acer hurts the PC maker from below.
Chris Whitmore, an analyst at Deutsche Bank, said that HP gained share at the expense of profit margins. Whitmore wrote:
Although HP’s PC units grew 8% year over year, we estimate HP’s operating profit per unit dropped 30% year over year as ASPs were down about 20% year over year and commodities tightened.
That fact could mean some bad news for Dell. HP is diversified enough to squeeze Dell with minimal impact on its overall profitability. Meanwhile, HP’s scale means it can weather component pricing fluctuations better.
No matter how you slice it HP has Dell outgunned with a larger services unit (acquiring EDS was the best move HP ever made), more foot soldiers and more momentum. Simply put, HP has the arsenal to squeeze Dell in the critical PC business. Dell may be optimistic about the PC buying cycle, but that doesn’t necessarily mean it will harvest all the rewards.
November 24th, 2009
TR Dojo: Install Windows 7 from a USB flash drive
Install Windows 7 from a USB flash drive Bill Detwiler shows you how to install Windows 7 from a bootable USB flash drive–created with the free DiskPart utility. Once you’ve watched this TR Dojo video, you can find a link to the original TechRepublic article and print the tip from our TR Dojo Blog.
November 24th, 2009
News to know: HP; Google; IE 7 zero day flaw; Office; Drobo
Here are today’s notable headlines. You can get News To Know via email alert and RSS daily. For continuous updates see BNET’s around-the-Web tech coverage:
Andrew Nusca: Holiday Gift Guide 2009: Best Bluetooth headsets
Sam Diaz: HP reports Q4; raises outlook for 2010
Larry Dignan: Analyst: News Corp.’s Google saber rattling really about MySpace
- Tom Foremski: What if the search-index was run by a non-profit? GOOG founders once supported that idea
- Sam Diaz: Google to beef up display ads with acquisition of Teracent
Ryan Naraine: Exploit published for critical IE 7 zero-day flaw
Opera patches ‘extremely severe’ security hole
Matthew Miller: Windows Mobile is better than you think
Joe McKendrick: SOA Manifesto: Manes explains manifesto’s aims
Doug Hanchard: Internet: A threat to government or the other way around? (Part 4)
Mary Jo Foley: Office Starter 2010: The fine print on Microsoft’s Works replacement
Andrew Nusca: AT&T, Apple to Verizon: ‘Can your phone and your network do that?’
Android 1.6 officially receives Google Maps Navigation
Data Robotics debuts enterprise-ready DroboElite, five-bay Drobo S
- Robin Harris: Light Peak: black hole
Larry Dignan: LinkedIn’s platform debut: Late but important
- LinkedIn: LinkedIn Platform: Open for Business
- Reuters: Twitter’s Biz Stone says could go IPO route
Dennis Howlett: Fawning over Chatter and how SAP missed its chance
Bloomberg: GE Said to Lean Toward IPO of Vivendi’s 20% Stake in NBC Universal Unit
Sam Diaz: Apple’s Schiller defends app approval process; misses the point
- Adrian Kingsley-Hughes: Is Apple being too precious about the App Store?
- Jason O’Grady: Apple’s latest TV ads defend AT&T
- Another Apple Black Friday leak rumor - with prices!
- Apple to smokers: butt out or void your warranty
- Apple’s Black Friday sale to include online shoppin
g - New iPhone worm found in the wild
- Andrew Nusca: Apple iPhone sales rise in Europe after end of exclusivity agreements
- Digital Daily: Apple Joins AT&T/Verizon Spat With New iPhone Ads
Top-rated reviews of the week (photos)
Joe McKendrick: Cyber Monday approaches — should companies clamp down on employee online shopping?
Holiday Gaming on the cheap (photos)Matthew Miller: Did HTC address Windows Mobile 6.5’s initial shortcomings?
Rachel King: LG and AT&T join forces on X120 netbook
- Andrew Nusca: TI introduces eZ430-Chronos, ‘world’s first customizable development environment within a sports watch’
- Admob: Droid and Android army make big browsing splash
- Online retailers, marketing firms scam consumers for $1.4 billion
Paul Greenberg: Chatting (Not Chattering) About Salesforce - Part I
Paid Content: MSNBC.com Taking Over @BreakingNews Twitter Feed; Signs On As BNO News’ First Client
Michael Krigsman: Social computing and the enterprise, part one
T-Mobile Tap photosChristopher Dawson: Falling behind in science? No kidding!
Is your culture getting in the way of your IT success?
Jason Perlow: Hands on with new Roku Channel Store; is cable TV still worth the cost?
- Roku becomes cloud-enabled with new Roku Channel Store and Developer SDK
- Stupid DROID Tricks, Volume 1
Jennifer Leggio: Quick’n'Dirty episode 23: TripIt and Twitter lists top talk
Large Hadron Collider back in operation
Heather Clancy: Video: Adura commercial lighting technology saves on power costs
- Harry Fuller: U.S. will propose emissions reduction before Copehagen talks
- GM: not doing well, but going back to the well anyway
- Could global warming be self-limiting?
Zack Whittaker: Let’s get rid of usernames and passwords for good
Chrome OS: More questions than answers?
Brainstorm Tech: Does AT&T turn into a pumpkin in June?
Dana Blankenhorn: Google goes all-in with an open source cloud
The medical home is reform without objections, so far
Dan Kusnetzky: Microsoft Windows Azure and SQL Azure
Bloomberg: Zynga May Be Valued at $1 Billion on Facebook Craze
Andrew Nusca: AOL ditches the triangle; previews new brand identity, logos
- Sergey Brin: Google Android, Chrome OS likely to converge
- Verizon debuts Samsung Omnia II; Dec. 2 for $200
Diaz: Meet Pearltrees: Bookmarks with a social twist
November 23rd, 2009
Online retailers, marketing firms scam consumers for $1.4 billion
A U.S. government investigation has prompted several well-known online retailers to sever ties with marketing firms after both were accused of working together to deceive customers out of $1.4 billion.
The retailers, including Priceline.com, Classmates.com, FTD.com, Shutterfly.com and Orbitz.com, were accused of working with marketers Affinion, Vertrue and Webloyalty to mislead consumers into unknowingly signing up for “affinity” or “loyalty” programs that would charge their credit card accounts.
November 23rd, 2009
HP reports Q4; raises outlook for 2010
Hewlett Packard today reported its fourth-quarter earnings that were in-line with a preliminary release last week, when the company announced plans to acquire 3Com. For the quarter, the company reported earnings of $1.14 per share on $30.8 billion in sales. Analysts had been expecting of $1.13 per share on $30.4 billion. (Statement)
For the full year 2009, the company reported earnings of $3.85 per share on sales of $114.6 billion.
Looking ahead, the company forecast earnings of $1.03 to $1.05 per share on sales of $29.6 billion to $29.9 billion for the first quarter - which would include the holiday season. For the full year 2010, the company raised its projection to $118 billion to $119 billion, up from $117 billion to $118 billion and also upped its earnings projection to $3.65 to $3.75 per share, up from $3.60 to $3.70. The projections do not reflect any impact from the 3Com acquisition, the company said.
Among the highlights of the quarter was the eight percent jump in revenue, to $8.9 billion, in Services, which has been a darling of the company as its integrated EDS.
On a call with analysts, Hurd said the integration of EDS, which he called an “enormous asset,” has gone well and that the company is just starting to leverage it to position HP in not only services offerings but through hardware and software, as well. In a statement, HP Chairman and CEO Mark Hurd said:
HP’s solid performance in Services drove record profit, and the accelerated pace in signings creates strong momentum going into 2010. Our operational execution and improving cost structure generated strong quarterly and year-end results. We expect to outperform the market due to our significant scale, broad portfolio and market-leading position.
In contrast, the imaging and printing group saw a revenue decline of 15 percent, down to $6.5 billion. Supplies - aka ink - revenue was down 8 percent. Printer unit shipments were down 20 percent, with commercial units down 38 percent and consumer units down 14 percent.
Also see: HP’s printing business: Will ink spending be questioned in the long run?
Hurd said the group is positioning itself for recovery with strategic moves, including controlling costs and inventory levels, as well as corporate partnerships and web-connected printers. He said the company sees mergers and acquisitions as a way of quickly entering adjacent businesses that work well with HP’s strategies. He touted the 3Com deal as one that will advance HP’s offerings in security and networking, enabling it to “deliver the next generation of data centers.”
Finally, Hurd said the company is positioned stronger than when it entered the economic downturn. The economy remains challenging, Hurd said, but that there are “encouraging signs of recovery” that are starting to emerge in certain markets.
Shares of HP were up about 2 percent in regular trading, closing at $51.02. In after hours trading, shares saw a slight decline.
November 23rd, 2009
Analyst: News Corp.'s Google saber rattling really about MySpace
News Corp.’s alleged dance with Microsoft’s Bing and Rupert Murdoch’s big plan to de-index from Google is likely to be nothing more than saber rattling to secure a semi-respectable MySpace search deal, according to an analyst.
Bernstein analyst Jeffrey Lindsay made some key comments on news that News Corp. is looking to cut a deal with Bing (Financial Times, Techmeme).
Today’s articles reporting that News Corp. is exploring planning to remove its newspaper content from Google’s search engine but keep it on Microsoft are unlikely to cause much angst in Mountain View. We think the reports are saber-rattling from News Corp. to put pressure on Google during the renegotiation of the advertising deal with MySpace. We think Microsoft, as usual, is fishing in troubled waters in the hope that it may get something out of the situation or at least give “market leader” (Microsoft management’s name for Google) a poke in the eye.
The MySpace angle was raised by a reader in my last post. And it makes a lot of sense. News Corp. is trying to pressure Google ponying up money for a MySpace search deal. Google is likely to walk away from the MySpace deal, according to analysts.
Google paid MySpace $900 million guaranteed in a 3-year search in a disaster of a deal. Lindsay reckons that Google has countered with only $50 million in guaranteed revenue.
Lindsay writes:
We think the story has broken at a critical time in the Google-MySpace re-negotiation. In the original deal negotiated three years ago, Google guaranteed payments of $300 million per year ($900 million in total) provided News Corp. and MySpace met certain traffic volumes. This deal has been a large negative to Google (we estimate that at its height it reduced Google’s operating margins by over 100bps), but has been a godsend for MySpace right through the economic downturn. We note, however, that Google’s new CFO, Patrick Pichette has brought a long-absent discipline to AdSense for Content renewals and that instead of agreeing to a renewal of $300 million in guaranteed annual revenues, Google is reported to have counter-offered $50 million in guaranteed revenues – giving some indication of just how uneconomic the original agreement was.
Meanwhile, MySpace’s traffic drop has already lowered Google payments to News Corp., estimates Lindsay.
A few points raised by Lindsay:
- Google drives 11 percent to 14 percent of traffic to News Corp.’s properties.
- Murdoch’s de-index Google plan only works if other news sources follow.
- Google doesn’t need News Corp., which amounts to just 10 basis points of daily traffic (and lower ad revenue). News Corp. gets 12 percent of daily traffic from Google.
- Google would walk away from an uneconomical MySpace deal and Microsoft shareholders won’t be too hip to an expensive deal given losses at the software giant’s online unit.
November 23rd, 2009
Google to beef up display ads with acquisition of Teracent
Google, in an effort to bring more value to its display advertising business, has announced plans to acquire Teracent. In a blog post, Google explained its interest in Teracent:
Teracent’s technology can pick and choose from literally thousands of creative elements of a display ad in real-time — tweaking images, products, messages or colors. These elements can be optimized depending on factors like geographic location, language, the content of the website, the time of day or the past performance of different ads. This technology can help advertisers get better results from their display ad campaigns. In turn, this enables publishers to make more money from their ad space and delivers web users better ads and more ad-funded web content.
To explain the idea, the company uses an image of two similar display ads, a template altered for a create a new look, add a custom message and provide more information about specific products. This all goes along with Google’s recent efforts to improve display advertising, including measurement tools and the Double-Click Ad Exchange.
Financial terms of the deal were not disclosed.
November 23rd, 2009
Apple's Schiller defends app approval process; misses the point
Apple VP Phil Schiller is coming to the defense of his company’s process for approving - or rejecting - apps submitted for its iPhone and iPod Touch. In an interview with Business Week, he talks about how some apps are inappropriate, how some cross legal boundaries that could potentially put Apple at risk and others are just simply buggy. (Techmeme)
But that’s not the issue at-hand. Approvals aren’t a bad thing - at least at this point in time, given how new the marketplace is. While the Business Week piece offers some insight as to why some apps are rejected or approved, it doesn’t offer much insight into the process that happens behind the scenes.
No, I’m not asking for proprietary information on how it’s done but rather the sequence of events around the process and a estimated timeline for approval or rejection. That would directly address the biggest complaint among developers lately - the inconsistency in approval of apps and the stuck-in-perpetual-limbo status that some find themselves in. The developers just need updates. They’re simply saying, “Hey, if the app is buggy, send it back so we can fix it.” Or if it’s inappropriate, slap a rejection stamp on it, along with an explanation, and move on.
Also see: Apple’s app approval revolt: Will it matter? Maybe
If Apple wants to keep this sort of control over apps and grow its app store marketplace, it’s going to need to beef up its quality assurance department and kick that approval process into high gear, with some clear-cut policies and an established procedure for submissions and appeals.
I’m no developer so I can’t speak directly about the frustrations with the process. If there are policies and procedures already in place, they seem to be flawed. Developers are squawking and that’s something Apple needs to address because it eventually could become a problem.
When it comes to mobile app platforms, the competition is heating up. Android is entering the scene hard and fast with devices and an app store of its own. Schiller is right to defend the process as it relates to reasons for rejection and approval.
But it sounds like Apple’s app store quality assurance team needs a quality assurance team of its own, something that spots defects in the process and works on fixing them.
November 23rd, 2009
LinkedIn's platform debut: Late but important
LinkedIn has opened its platform so developers can integrate the site into business apps and Web sites. Think Facebook Connect for professionals.
A little late? You bet. Important. You bet.
In the end, there’s a lot of me-too in LinkedIn’s announcement. LinkedIn APIs and widgets are now available to connect folks. For the business-to-business world, this LinkedIn integration could be notable.
So why does all this networking matter? LinkedIn has never been more important as the unemployment rate rises. Facebook keeps you up to date, but LinkedIn can help you get a job.
As comScore noted back in September, LinkedIn “has become more important than ever for those looking for job opportunities and it has the growth to show for it.”
Simply put, LinkedIn may be late, but for the site’s popularity the timing may be just right.
November 23rd, 2009
AOL ditches the triangle; previews new brand identity, logos
In a move that mimics Yahoo’s “It’s You” media branding campaign, AOL has unveiled a “new brand identity” now that the company will spin off from corporate conglomerate Time Warner on Dec. 10.
Instead of the old triangle logo the world has come to recognize, AOL is moving in a new, more multifaceted direction, introducing a new text logo printed across colorful splash backgrounds, including a goldfish, a “rock hand,” scribbles and more.
For now, the new logos are just the tip of the iceberg, a preview of an upcoming full announcement once the company is fully spun off from Time Warner.
The rebranding also marks AOL’s shift from an Internet provider to a digital publisher. The company, helmed by CEO and former Googler Tim Armstrong, has a large family of blogs from the purchase of Weblogs, Inc. in 2005 that includes Engadget, Joystiq, Autoblog, TUAW, Asylum and Switched.
“Historically, brand identity has been monolithic and controlling, little more than stamping a company name on a product. AOL is a 21st century media company, with an ambitious vision for the future and new focus on creativity and expression, this required the new brand identity to be open and generous, to invite conversation and collaboration, and to feel credible, but also aspirational. We’re delighted to have worked so closely with the AOL leadership team to create something bold and exciting that sets AOL apart,” said Karl Heiselman, CEO of Wolff Olins, the global brand and innovation consultancy that AOL partnered with for the new digs.
Nevertheless, AOL’s primary revenue still comes from its connectivity business, and while its online properties help it redefine its corporate image, the company’s still heavily relying on it. The online publishing business is still very much in flux and heavily dependent on ad revenue, which is depressed in the wake of the recession.
November 23rd, 2009
eBay gets off to rough holiday shopping start
EBay is kicking off this key holiday shopping week with credits for sellers affected by a search outage over the weekend.
The company on Saturday suffered a search outage “due to errors in some of our backend systems.” A search on products would lead to an error message or blank page. Six hours later service was restored mostly and the company said “we will be issuing full credits for all affected items for this title search outage.”
Almost 24 hours later search was fully restored, including secondary search features such as color, inventory and clothing size.
The outage comes amid a critical time for sellers who are listing products for what could be a big shopping week. And while the outage for eBay isn’t material to earnings it does make you wonder if the auction site is ready to roll when crunch time. And crunch time comes a week from today on “Cyber Monday,” the next workday after Black Friday when e-commerce is supposed to ramp up.
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
For daily updates, follow Larry on Twitter.
Subscribe to Between the Lines via Email alerts or RSS.
SponsoredWhite Papers, Webcasts, and Downloads
- Building the Virtualized Enterprise with VMware Infrastructure VMware VMware virtualization software has been adopted by over 120,000 enterprise ... Download Now
- The Impact of Virtualization Software on Operating Environments VMware Today's use of virtualization technology allows IT professionals to ... Download Now
- Three Steps You Need to Know to Stop Data Loss Varonis Sensitive data exposed to misuse or loss... it is the stuff of nightmares ... Download Now
Essential Topics 
Recent Entries
- Smart toy shopping this holiday season
- DreamHost customers hit with nightmare
- The Big Question podcast: Will News Corp. really pull its content from Google?
- SaaS and cloud computing: A look at the due diligence
- News to know: Thanksgiving tech support; Apple; Silverlight; Facebook; Black Friday
Blogs From Our Sponsors
Most Popular Posts
- Verizon to AT&T: "Our ads are true and the truth hurts"
- Netbooks dead? Not when sales are up 264 percent
- HP vs. Dell: Showdown at the Windows 7 upgrade corral
- Live from Googleplex: Chrome OS details revealed
- My scareware night and how McAfee lost a customer
- Memo to AT&T: When you're in a hole, stop digging
Top Rated
- Verizon to AT&T: "Our ads are true and the truth hurts"+44 votes
- Intel to pay AMD $1.25 billion as companies end litigation war; Is it a new chip era?+27 votes
- My scareware night and how McAfee lost a customer+26 votes
- New York AG files antitrust charges against Intel; alleges bribery, coercion+24 votes
- Netbooks dead? Not when sales are up 264 percent+22 votes
- AT&T launches Verizon counter-punch ad, keeps digging that hole+14 votes
- FAA hit with network glitch; Flight plans go manual+13 votes
- Michael Dell sticks to Windows 7 big bang theory+12 votes
Premier Vendor Content Whitepapers, webcasts & resources from our Power Center Sponsors
- New Online Dashboard for IT Leaders
-
Read about top issues IT decision-makers face every day, plus get cost-effective solutions to real-life IT problems.
- Learn more >>
- Save time with automated shipping solutions
-
The Business Essentials Guide provides you useful tools and templates to help grow your business and save you time with automated shipping solutions.
- Visit the UPS Business Essentials Guide
- Keep Up With The Latest In Document Management with The DocuMentor.
-
Doc delivers the scoop on today's enterprise content management, printer maintenance, and all other issues related to document management. It's the DocuMentor Blog.
- Learn more >>
- The best support in the Linux business
-
If Linux is going to power your mission-critical applications, you'd better have the best support known to business. Novell was rated the top provider of Linux technical support.
- Learn more >>
- Microsoft Dynamics CRM Online - Free Six-Month Trial for Eligible Organizations
-
Microsoft Dynamics CRM Online provides fast online access, simple contact management and better sales performance for a low monthly cost - the best value on the market today.
- Learn more about the free, six-month trial offer>>
Archives
Favorite Links
Favorite Sites
- Ars Technica
- Deal Journal
- Engadget
- Enterprise Irregulars
- GigaOm
- Google Blogoscoped
- Horses for Sources
- Mac Rumors
- Mashable
- Official Google Blog
- Read/WriteWeb
- Scobleizer
- Seeking Alpha
- TechCrunch
- Techdirt
- Techmeme
- The Ponderings of Woodrow
- The Unofficial Apple Weblog (TUAW)
- Valleywag
- ZDNet: Latest blogs and news
ZDNet Blogs
- All About Microsoft
- The Apple Core
- Between the Lines
- BriefingsDirect
- Collaboration 2.0
- Dev Connection
- Digital Cameras & Camcorders
- Ed Bott's Microsoft Report
- Emerging Tech
- Enterprise Web 2.0
- Forrester Research
- Googling Google
- GreenTech Pastures
- Hardware 2.0
- Home Theater
- iGeneration
- Irregular Enterprise
- IT Project Failures
- Laptops & Desktops
- Lawgarithms
- Linux and Open Source
- Managing L'unix
- The Mobile Gadgeteer
- On Sustainability
- Rational Rants
- The Semantic Web
- Service Oriented
- Smartphones and Cell Phones
- Social Business
- Social CRM: The Conversation
- Software & Services Safari
- Software as Services
- Storage Bits
- Team Think
- Tech Broiler
- Technology and the Global Supply Chain
- Tom Foremski: IMHO
- The ToyBox
- Virtually Speaking
- The Web Life
- ZDNet Education
- ZDNet Government
- ZDNet Healthcare
- Zero Day
White Papers, Webcasts, and Downloads
- Why Isn't Server Virtualization Saving Us More? A Few Small Changes May Dramatically Increase Your Efficiency VMware Companies have rapidly adopted server virtualization over the past few ... Download Now
- Five Steps to Determine When to Virtualize YourServers VMware Server virtualization isn't just for big companies. Entry-level ... Download Now
- Reducing Server Total Cost of Ownership with VMware Virtualization Software VMware VMware virtualization enables customers to reduce their server TCO and ... Download Now
SmartPlanet
- Thought-provoking progressive ideas on diverse topics that intersect with technology, business, and life, and matter to the world at large. Visit SmartPlanet
- More from IBM
-
- How to Drive Better Business Outcomes with Exceptional Web Experiences Download the eBook
- Driving Business Agility through SOA Connectivity & Integration Read the White Paper from IBM
- Linking Decisions and Information for Organizational Performance Read the Tom Davenport study
