Archive for September 2009
by Leena Rao on September 30, 2009

Collaboration applications are becoming increasingly popular in the enterprise space. Startup Huddle.net has been steadily accumulating innovative features to its business-friendly collaboration platform and quickly adding big name companies, including Samsung and Panasonic, as clients. Huddle is a network of secure online workspaces where you can share files, collaborate on ideas, manage projects and organize virtual meetings. Today, Huddle is adding several more useful features to its platform—web conferencing, integration with Microsoft Office, and a much-awaited iPhone app.

Huddle’s web conferencing feature, which is similar to web-ex, lets users set up meetings, schedule recurring events, and share their desktop and content with other members of their workspace. Huddle has also sent up a partnership with InterCall, one of the world’s largest conference call providers, to handle phone conferencing. Huddle’s web conferencing tool is integrated with Outlook or Google calendar and users receive free conferencing minutes as a part of their monthly package and can also access low-cost international service plans.

by David Diaz on September 30, 2009

FTlogo The ever increasing popularity and usage of social networking sites, blogs, and instant messaging services in the workplace–while beneficial in many cases–is the cause of many security concerns for IT and security specialists. Human mistakes, such as disclosing private information through these portals and accepting malicious content via file transfers, coupled with newly enacted regulatory compliance which force many companies to record all of their electronic transmissions, stress the need for a new solution to combat these challenges. FaceTime’s newest product which is launching today, Unified Security Gateway 3.0, hopes to be this solution.

The product, which I have aptly dubbed “The Regulator,” moves FaceTime from their niche, Instant Messaging Compliance, where they track over 230 Instant Messaging Applications, to the overarching web security domain. Unified Security Gateway 3.0 will still monitor these IM applications, as well as web mail, social networks such as LinkedIn and Facebook, and blogs.

by Robin Wauters on September 29, 2009

Mårten Gustaf Mickos, former CEO of MySQL, is Benchmark Capital‘s newest Entrepreneur In Residence (EIR).

Mickos served as chief executive officer for the open source database company from January 2001 to February 2008, when Sun Microsystems acquired MySQL for $1 billion. Benchmark was a relatively early investor in the company; they participated in the $20 million Series B round together with Index Ventures back in 2003.

by Leena Rao on September 29, 2009

Ruby-on-Rails startup FiveRuns has been acquired by WorkThink, according to FiveRuns’ site. FiveRuns provides a variety of monitoring products for Ruby on Rails and related open source and commercial systems. Built on Rails and delivered as a hosted service, FiveRuns’ products manage the complete Rails application lifecycle — from installation to production.

Products include Install, a free Ruby on Rails stack powered by BitRock; Manage, which was an application that monitors your Rails applications in production (Manage was discontinued this summer); TuneUp (a debugging tool which we wrote about here); and Dash, which was a metrics, storage, reporting, and communication hub for applications connected to the web. According to FiveRuns, Dash’s services will be discontinued by the middle of October. It’s unclear if the other products will survive the transition.

by David Diaz on September 28, 2009

xeroxlogoXerox, “the data company,” announced today it plans to acquire Affiliated Computer Services; a move which will firmly place them in the $150 billion business process outsourcing market. This cash and stock transaction was originally valued at $6.4 billion based on Friday’s closing Xerox stock prices, but has since dwindled to $5.5 billion due to a 14% decrease.

The steep decrease in stock stems not from a lack of faith in Xerox and their current capabilities, but rather from concerns regarding the strategic overlap of the two companies. Deals such as the recent Dell acquisition of Perot Systems and last years purchase of EDS by HP were much less radical as the initial products had far more overlap.

by Michael Arrington on September 28, 2009

Last week we showed the highlights and 10+ minutes of video footage of an exclusive hour-long TechCrunch interview with Microsoft CEO Steve Ballmer.

Now for the rest of that interview. The video was just a teaser. I spoke with Ballmer for another 50 minutes on the record, doing a deeper dive into five key areas of Microsoft’s product strategy: Big Opportunities, Operating Systems/Browsers, Mobile, Search and Developers.

This post is about big opportunities at Microsoft beyond their dual cash cows of Windows and Office. Microsoft generates around $20 billion a year in pre-tax profit, and spends nearly $10 billion on research and development. When Microsoft thinks about increasing (or sustaining) those profits, they have to think big. And they have to think long term.

Driving My Car
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by Steve Gillmor on September 27, 2009

brbThe Beatles Rock Band game is now in its third day here at Abbey Road West, and so far it’s getting better all the time. As social media, it’s the off the charts monetization winner Wall Street is beginning to think Twitter and Facebook are becoming. As my wife keeps saying, it’s got real Beatles songs, not some cover band. How cool is that?

BRB is an extension of the Beatles Love mashup, where producers George and son Giles Martin went back to the basic tracks and transferred them to digital for remix. This is as distinguished from the new remastered mono and stereo catalog, where only the final mixdowns were brought up to date with modern analog-to-digital techniques. The Beatles recorded on two and then four tracks up until the White Album, bouncing down preliminary mixes and overdubbing additional parts as they went.

The Love mixes built on a technique explored during the production of the Anthology series and fleshed out with the remixing of the Yellow Submarine record. Laying all the original pieces onto a digital checkerboard, the Abbey Road engineers could recreate the original mixes with individual control over many more elements of the recordings. Love expanded on that by literally deconstructing the various elements and intermingling them with other tracks, as in the layering of the Tomorrow Never Knows drum track under Within You Without You’s Indian percussion.

With this digital map already assembled, Giles Martin could turn his attention to the Rock Band game, compositing guitars and harmonies while adding live effects and studio chatter to create yet another mashup, this one a fascinating illusion of being in the studio or in concert with some degree of input in the mix. Of course, the game opts for scoring the closeness to the actual reality you come with vocals, guitar, and most powerfully, drums. The actual music remains Beatles, but you have the feeling of getting inside the music.

Ringo comes through in the way his bandmates saw him, the actual spark of the thing that became Beatles only when he joined the group. The recordings have always reflected the alchemy of the four members and George Martin, who handled many of the keyboard parts as the group’s palette expanded in the studio. But Ringo’s parts, as reflected by the dumbed down notes you sync with, underline how much the drummer shaped the variety of feels of the group’s enormously productive output.

What emerges is a kind of dynamic blueprint that threads through the band’s history, regardless of the period (touring, studio, early, splintering, the end) and almost in spite of the differences in song writing and production. The Beatles throughout their career benefited from this kind of stylized fundamentals, fitting their “real” personalities into their film and studio images and creating a new hybrid that expanded both identities into a newer one.

So too do Twitter and Facebook and other social media experiences, fusing the twin streams of public and private persona. Much is made of the falseness of the online you, but the reality is that the combination of digital gestures and individual desires, thoughts, ideas, and emotions is something we’ve only perceived indirectly through artists in novels, paintings, and music. Social media may be an imperfect label, but the synthesis is as real as the elements pre-aggregation.

The mono remasters are bundled in a separate collection, running from the beginning through the White Album. After that, only a Yellow Submarine soundtrack with several “throwaways”, the Let It Be “live” recordings massacred by Phil Spector as the band fell apart, and the final Abbey Road were left to be mixed in stereo. But for most of its life, the group and producer recorded and mixed in mono, an earlier predictor of the power of 140 characters.

The Beatles Rock Band remixes suggest the rest of the catalog will be rendered in new versions that take advantage of technology to get inside the music, not subverting the original mono intent but allowing us to explore the brilliance of these collaborations. Musical anthropologists will be able to take apart the harmonies and build new ones, discover our great treasures in new ways, and share them with our children here and across the net. Calling this a game is misleading only because it is so much fun.

Of course, there will always be those who posture about the authenticity of these experiences. McCartney has the most authority here, saying the game is fun but actually making the records was more so. But playing along with Ringo in even this most elemental and simulated way reminded me of similar moments in my past playing drums with the “real” Richard Manuel on a snowy night in the Catskills. Beatles Rock Band is not the same as being there, but that doesn’t mean it’s not real. Beep beep yeah!

by Leena Rao on September 25, 2009

Accepting credit cards is crucial for any merchant but the obvious downside of this are the associated credit card processing fees which can amount to significant chunks of change. Usually fees range anywhere between 2 percent and 4 percent. Startup TransFS is hoping to help businesses sort through this issue by offering a comparison shopping website for credit card processing fees.

On TransFS, businesses submit information about their transactions including the percentage of online, in-store, mail-order and phone transactions; the merchant’s current credit-card processing fees; and monthly volume of sales and average transaction size. This is all variable information used by processing firms when determining fees for a particular merchant.

by Leena Rao on September 24, 2009

NetSuite, a company that provides cloud-based business management software suites, is furthering its mobile strategy by launching a free iPhone app to compliment its web-based products. The iPhone app gives NetSuite users on-the-go access to the company’s on-demand SaaS offerings, which include real-time dashboards with financial and customer data from CRMs and other applications.

A competitor to Salesforce.com, NetSuite offers four main types of cloud computing software: Enterprise Resource Planning (ERP), CRM, accounting, and ecommerce software. In any business, mobile access makes business processes speedier, so NetSuite has tried to make the crossover between the web and the iPhone (or iPod touch) seamless.

by Leena Rao on September 23, 2009

Microsoft is going to let marketers and advertisers dip their toes into the social stream. The tech giant is planning to launch a new social media product, dubbed “Looking Glass,” which will let marketers aggregate and monitor social media platforms for brands and companies. According to a report by Ad Age today, the product is still in “proof of concept” stage and will be privately distributed to testers in the coming month. Microsoft’s advertising blog also mentions the new product.

Looking Glass will aggregate feeds from Twitter, Facebook, YouTube, Flickr and other social media sites and will also be able connect with CRMs, databases, service centers and more. In terms of analysis, the product will track sentiment of content but it’s unclear what other data analysis and features the application will have. Looking Glass will be browser-based and powered by Microsoft’s Silverlight technology. And unsurprisingly, all data collected by Looking Glass will be integrated with Microsoft’s Sharepoint and Outlook products. In fact, the product’s functionality may be limited for a business that isn’t using Microsoft’s enterprise suite.

by Leena Rao on September 23, 2009

For a startup that was founded less than a year ago, Cloudera has seen some pretty amazing growth. Backed by an impressive list of investors and advisors and run by a team of experienced technology veterans, Cloudera commercially distributes and services Hadoop. It’s similar in theory to Red Hat’s distribution of Linux.

Hadoop is a Java software framework born out of an open-source implementation of Google’s published computing infrastructure which is fostered within the Apache Software Foundation. Hadoop supports distributed applications running on large clusters of commodity computers processing enormous amounts of data. Cloudera helps distribute Hadoop, and provides services around the technology. Via Cloudera, Hadoop is currently used by most of the giants in the space including, Google, Yahoo, Facebook, Amazon, AOL, Baidu and more. To date, Cloudera has raised $11 million in funding from Accel Partners and Greylock Partners.

by Robin Wauters on September 23, 2009

GigaOm last night already predicted an announcement was forthcoming, but now it’s official: Skype has announced that the beta version of Skype for SIP has been certified as interoperable with Cisco’s Unified Communications 500 Series for Small Business.

This will enable SMBs who manage their networking and communications needs with the Cisco solution to communicate more efficiently by directing their outbound calls to mobiles and landlines over Skype’s VoIP service.

The integrated solution will also allow employees to receive inbound calls from Skype users (now over 480 million strong according to the release). Earlier this year, similar arrangements were struck by the eBay company with Shoretel and SIPfoundry’s sipXecs platform.

by David Diaz on September 22, 2009

LiaiseLogoWebTag2Email has quickly become the center of our daily working lives. Many people receive hundreds of emails a day full of information which needs to be sorted and prioritized. However, with such a high number of emails being received, people are bound to forget about projects or actions which need to be completed. This is where Liaise, debuting at DEMOFall 09, comes into play. Their product analyzes the content of your incoming and out-going emails, picks out information which needs action, and then sets up a management list based on this info.

The product works quite intuitively. For instance, let’s imagine I am sending an email to a fellow writer: “Greg, make sure you interview the CEO of Liaise on Thursday.” The software will then recognize that my email is a call to action directed towards Greg and that it is due Thursday. The priority for this will be set at normal because it is due a few days from now. However, Liaise is a learning software; so it will change the way it works based off of the language I use and the edits to the suggestions which Liaise has made. For instance, lets say that I manually changed the priority of this issue to Very High. In the future, when I use the phrase “make sure,” in an email, Liaise will set the priority to high. If Liaise does not identify some parts of an email, there is an edit option to add your own action items.

Ballmer’s Silver Hammer
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by Steve Gillmor on September 22, 2009

malevansWith Windows 7 shipping in less than a month, we’re sure to smell a whiff of the Microsoft of old from the Pacific Northwest. After years of dropped balls and transitions from the Gates era to whatever we’re now in, Steve Ballmer should have plenty to feel good about. Steve Sinofsky has completed his personal reworking from Office chief to Windows czar, and the new OS arrives just in time to crest with the netbook wave.

On the Office front, the O2010 tech preview is in a classic Microsoft holding pattern, waiting to touch down next year in the wake of the new Windows release. Microsoft marketing managers still won’t answer the simple question (What are the features NOT available in the Web Apps?) They’re glad to rationalize the answer as: we’re providing the features Web users want. The real answer continues to lie in the politics of the transition from disk to Web.

What is new is that Powerpoint and Excel the Web versions can now function with somewhat greater fidelity than Google App’s competitor. Compare them to the desktop versions, you’re in the old political weeds. Compare it to Google, not bad. SkyDrive starts to look like an interesting service, if only (and importantly) as a reason to get a Windows Live ID and 25 gigs of free storage.

I find the desktop/Web Apps comparison a cul de sac Microsoft will do well to get away from as fast as possible. The central message for nextgen realtime apps is that Office Web Apps are soon to be highly competitive with the alternatives. The collaboration features alone are so basic that my fundamental question is whether the desktop apps support them in realtime, not the other way around. Word is still not baked and seems to continue to suffer from oldthink strangleholds, but if the first wave gets some traction with realtimers it may tip things our way before ship date.

The other mixed messaging is of course Silverlight. It’s easy to wonder whether Microsoft really gets what they have going here, but the underlying answer is yes, with the political caveat. Reports of a recent internal meeting were devoid of mentions of Silverlight, with the usual Bill-era science projects around Walls and other esoteric research fantasies taking up most of the troop rallying.

Nonetheless, Silverlight is the most strategic part of the new Microsoft message, that Redmond services will catch, match, and exceed existing competitor platforms. If you count the Windows 7 launch as the left side of the timeline and the PDC launch of Windows Azure a month later as the right, Silverlight is the connective tissue that drives the new hybrid platform.

With Windows battened down and Office Web Apps in the evangelism stage, Microsoft is competing primarily with Google’s notion of radical disruption financed by advertising. Coming as it does from the enterprise IT stronghold of corporate hegemony, Windows and Office adoption collides with the new monetization challenge because of the lack of a legitimate user contract for behavioral data. We’ve known all along that Microsoft could see what we do on the desktop, but they haven’t got our permission to do anything with it.

By contrast, Google and other Web services require that attention farming to do anything, and offerings like Gmail remind us of how our text is being tracked even as they reassure us that that data is only being used anonymously as part of the larger algorithms behind the Google engine. Microsoft’s investment in the Web Apps is in fact the establishment of a user contractual rationale that will pay off with its forthcoming competitive offerings.

Those offerings will not be in the desktop space, however. They will be in the Silverlight engine, mixing the richness Google struggles to reach with HTML 5 with the monetization of attention and, increasingly, gestures mined from socially-aware microcommunities. Don’t let that jargon scare you; it just means Facebook/Twitter 2-or-3 degrees of separation harvesting of the recommendations of people whose recommendations in aggregate are much more efficient than the current search haystack models.

SIlverlight neatly manages the intersection of the desktop circa October with the cloud circa November, and is missing only the orchestration of realtime layer that, pardon the expression, meshes incoming alerts with the behaviorally-filtered authoritative stream. Today, I watch alerts bubble up in an Adobe Air FriendFeed app, sitting atop Gmail, Yammer, and stream aggregation tools. Tomorrow? Silverlight is the only answer this year, and Steve Ballmer must know it.

The good news for those who think this may work strategically but not politically is that Office Web Apps is close enough to provide cover for an aggressive framework built on Silverlight to go after the social crowd. Facebook is within 90 days of an API that can subsume the FriendFeed core, and there are very few things you can’t do today with a combination of Javascript and Silverlight to provide a useful console for managing social flow.

There are at least several projects under way but unannounced that could signal Microsoft cluefullness, but even if an internal project hooked up SIlverlight with, say, Facebook, it would still be messaged as “we’re a platform company providing opportunities for developers”. But Office Web Apps and SkyDrive will need to drive home a Now proposition to have some impact on Google’s aura of inevitability.

Here’s where Bing becomes significant. These guys are kicking ass. They are innovating and pushing out babies faster than the Scobles, and show no signs of slowing down. Does Silverlight have a play in future Bing expansion. Yes. Does the iterative success of a reasonably independent unit inside Redmond provide political cover for similar ground gained by a social unit. Yes.

The key is to compete not with the desktop guys but with Google directly. Office Web Apps stand a good chance of smoking Google Apps in the short term, by competing directly on price and adding features (Silverlight) Google can’t touch. Like Bing, invest in the intelligence of the back end and the editorial layer of services that pry mindshare loose or at least into consideration. My 8 year old daughter talked to me last night about Binging something; I made her repeat it to be sure.

Bing. Social media. Silverlight. SkyDrive. Benioff’s Salesforce is pushing the enterprise envelope with the Google stack, but what does that do for Microsoft but open the eyes of its dominant channel. While we all look at the deltas between Office Desktop and Web, the real disruption may be the extent to which the enterprise is being swallowed by social media.

If virtualization effectively abstracts out the back end hardware and software boundaries, the end result is a new value chain where access to institutional and user data is parsed across business lines, where software “suites” are organically grown and spliced together across social boundaries. Social media IS the enterprise. Bing. Bing. Ballmer’s Silver Hammer.

Microsoft Acquires Four Technologies To Boost Dynamics ERP Product
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by Leena Rao on September 22, 2009

Microsoft has acquired four technologies for its Microsoft Dynamics enterprise resource planning (ERP) product, which provides software to help businesses manage their financial accounting, supply chain, project accounting, field service, and human resources business processes. In a press release, Microsoft says that the new technologies will “extend the core capabilities” of one of Microsoft’s ERP products, Microsoft Dynamics AX.

The four technologies Microsoft has acquired are: a manufacturing technology acquired from Fullscope, which helps business processes in the manufacturing industries; technology from Computer Generated Solutions, focuses in managing billing and project management operations; and two retail-oriented technologies from LS Retail and To-Increase, that offers point-of-sale, and merchandising functionality.

Microsoft Dynamics ERP includes several sub-products in addition to Microsoft Dynamics AX, such as Microsoft Dynamics NAV, Microsoft Dynamics GP and Microsoft Dynamics SL. It appears that Microsoft’s move to add more vertical technologies to Dynamics ERP is part for a strategy to recruit customers who are using competitive ERPs from Oracle and SAP.

by Robin Wauters on September 22, 2009

peHUB yesterday caught wind of Microsoft’s supposed acquisition of Interactive Supercomputing, a company specialized in bringing the power of parallel computing to desktops, but was declined an official comment to the news following a request for confirmation. Redmond has this morning officially announced the acquisition by means of a blog post on the Windows Server Division Weblog and an information website, detailing that it has picked up the technology assets of ISC and that the latter’s employees – including CEO Bill Blake – will be joining the Microsoft team at the New England Research & Development Center in Cambridge, MA.

Microsoft says it will not continue developing Star-P (ISC’s flagship product) beyond version 2.8 which was released earlier this year, and that version 2.9 that was released to a few customers in Beta will not be released for production use by customers. Active Star-P customers who are using earlier versions of Star P were granted the right to upgrade to 2.8 by ISC prior to the close of the transaction. Microsoft did not acquire the customer contracts between ISC and their customers but says it will provide technical support to active customers through the longer of their existing support contracts or 12/31/2010.

by Leena Rao on September 22, 2009

Web-based productivity suite Zoho is launching a brand new product today called Zoho Discussions. Zoho lets any business, individual or organization create public or private support forums where employees or customers can share comments around a particular discussion topic. We have a special offer for TechCrunch readers; the first 25 readers (who are paid Zoho users) to email techcrunch@zohodiscussions.com will be able to use the product for free for up to 6 months.

I had the opportunity to test out Zoho Discussions and it’s both remarkably easy for anyone to set up and filled with useful features. With the new product you can create a platform for discussion forums, similar to Google Groups. The differentiating factor is that your forums can be customized and branded to adopt the look and feel of your site. Zoho even lets you pick out a domain name that coincides with your site. Plus, Zoho Discussions can be integrated with many of Zoho’s other productivity applications.

by Robin Wauters on September 22, 2009

IBM this morning announced an agreement to acquire RedPill Solutions, a privately-held consultancy and business analytics service provider headquartered in Singapore.

The terms of the acquisition, which is expected to close later this year following statutory approvals, regulatory reviews and customary closing conditions, were not disclosed.

According to the release, IBM is buying RedPill because of its extensive data models and expertise gained by consulting companies primarily active in financial services, telecommunications, technology and hospitality. RedPill works for clients in 17 different countries, mostly in Asia Pacific and the Middle East, and currently has offices in Thailand, Singapore, Malaysia, Indonesia, India and the United Arab Emirates.

by Leena Rao on September 21, 2009

Rearden Commerce, the under-the-radar automated online assistant that helps people organize travel needs and other services, has raised another $40 million in a Series F funding from JPMorgan Chase. This latest round brings Rearden’s total funding up to $240 million since the company’s launch in 2000. JPMorgan Chase is a marketing partner and a pre-existing investor. Greg O’Hara and Rick Smith, both general partners from One Equity Partners, JPMorgan Chase’s private equity fund, will be joining Rearden’s board, although the funding comes from Chase Capital Partners.

Unfortunately, the funding is bittersweet for the company because it coincides with a round of layoffs. Rearden let go roughly 60 employees from a staff of 335 employees (or 18 percent), following a round of layoffs last November of around 10 percent (or 40 employees) of the company’s staff.

by Erick Schonfeld on September 21, 2009

Searching for growth and better margins, Dell is expanding its enterprise IT consulting business by acquiring Perot Systems for $3.9 billion in an all-cash deal. Perot Systems is the IT consulting and integration services company founded by Ross Perot in 1988 four years after selling Electronic Data Systems to General Motors. (EDS is now part of HP, which bought it last year for $13.9 billion).

The shift to consulting services will make Dell look more like IBM (and HP). Dell has an existing services division, which will be rolled into Perot Systems. Peter Altabef, the current CEO of Perot Systems, will run the combined IT Services business. Both Dell and Perot Systems are based in Texas, which should make the combination go smoother.