Google
by Erick Schonfeld on July 1, 2010

Google is now in the flight information business. The search giant just announced it is paying $700 million in cash for ITA Software, an essential provider of flight information to airlines, travel agencies, and online reservation systems.

Travel is a huge segment of search and online commerce. Purchasing ITA signals Google’s intention to build out its travel search in a major way. A consortium of rivals including Microsoft, Kayak, Expedia, and Travelport tried to counter Google’s offer last Spring because they all rely on ITA’s data and wanted to keep the company out of Google’s hands. ITA was reportedly holding out for $1 billion, but Google got the deal at the original $700 million price it put on the table.

by Leena Rao on May 19, 2010

It’s no secret that Google has been ramping up its enterprise offerings. The company has made a strong push for the adoption of Google Apps, launching the Apps Marketplace, allowing Apps users to add other layers to their environments from companies like Socialwok and Zoho. Today, Google is taking it one step further. At Google I/O today, the search giant has announced that Google App Engine, a platform for building and hosting web applications in the cloud, will now include a Business version, catered towards enterprises. The new premium version allows customers to build their own business apps on Google’s cloud infrastructure. Google is also announcing a collaboration with VMware for deployment and development of apps on the new cloud infrastructure.

Announced two years ago, Google App Engine offers a full-stack, hosted, automatically scalable web application platform. Last year, Google added the ability to build Java applications off of the platform. With the newly launched Google App Engine for Business, Google is introducing new enterprise-level capabilities, including centralized administration, premium developer support and an uptime Service Level Agreement (SLA), flat monthly pricing, and soon, access to premium features like cloud-based SQL and SSL.

by Leena Rao on May 7, 2010

In the wake UC Davis’ announcement that the school was ending an Apps pilot for faculty because of privacy concerns, Google is celebrating a milestone. As of today, 8 million students, faculty and staff at educational institutions around the world are using Google Apps. Google says that the U.S. has about 16 million college students total, so the productivity suite is steadily gaining its piece of the pie.

In total, Google has around 25 million Apps users, so education makes up a generous slice of the suite’s userbase. Google has made a strong push to recruit educational institutions to use Google Apps, launching a new centralized site targeted towards recruiting educational institutions. It makes sense; not only is it a huge market for the productivity suite, but schools and colleges are where many people get trained, start relying on, and form brand allegiances to productivity apps.

by Leena Rao on May 6, 2010

One of the virtues of using Google’s products are the connections you get to the search giant’s other applications. For example, I love that my Gmail account can connect to iGoogle, YouTube, Blogger, Picasa, and other products in the Google family, making the transition between applications seamless and easy. Google is now planning to bring this interconnectivity to Google Apps.

Google says 9 of the top 20 requests from Apps customers are for their accounts to work with more services from Google. Currently, Apps works with Gmail, Docs, Chat, Groups, Video and Calendar. Later this year, Google will roll out functionality with Apps for Picasa, Google Reader, AdWords, News, Finance, and other products. Users won’t need to switch between their personal and work account to interact with these products from within the Apps interface.

by Guest Author on April 16, 2010

Editor’s Note: The following guest post is by Ed Robinson.  He is the CEO of Aptimize, a company that produces software to accelerate websites.

A week ago, Google announced a change to how its search rankings are calculated. This change will affect every business with a web presence. At the highest level, the change means that a website’s Google ranking will now be influenced by its speed. Faster websites now feature higher in search results, and slower websites drop down in the search results.

While Google and others are downplaying the impact this will have on most search results, the implications of the changes are much bigger for many businesses.  You might recall that load times are very important to Google itself, and they are just as important to every website.

Google search results typically generate more new leads than any other source of traffic on the web. If you’re the web equivalent of an average “mom and pop shop” or really are just a local business on Main Street, Google search is the foot traffic that keeps you in business. And changing the ranking calculations is suddenly moving that store to a much less desirable part of town.

For now, Google is targeting only the slowest sites saying that “only 1% of search queries will be affected.” Looking into the near future, however, speed is guaranteed to have an increasingly important impact on the search ranking calculations. And when presented with the choice, most businesses would not want to risk their livelihoods by assuming they’re not in that 1%.

Either way, website performance has become the newest cost of doing businesses for the modern organization, large or small. Building a cutesy site is no longer enough for the average business.  As Google increases the impact of speed on their calculations, businesses will only have more to lose, and it’s up to them to right the ship. Perhaps they don’t want to deal with yet another technical issue, or maybe they will just write this off as a minor change. Either way, they’re throwing money away if they don’t do something about their site’s performance.

Nobody can keep secrets anymore
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by Steve Gillmor on January 5, 2010

nexusoneIn the age of Twitter, no one can keep a secret. That’s clear from the announcements about the Gphone, the iSlate, and the likely fact that nothing will happen at CES. Comdex has been dead for years, Oracle conferences feature endless rehashes by Scott McNealy about the Sun merger, and in general most trade shows have been denuded of any real news.

That leaves product announcements by the vendors themselves, timed to fit around the old event schedule but in fact disrupt the news flow that normally used to be captured in large multi-vendor settings. But these announcements have begun to focus around hardware devices (phones) that require a supply chain, lead time, and partners. Apple used to be mostly successful at keeping the lid on the hardware part of the equation, choosing its suppliers based as much on security as the commodity parts that help maintain a firewall by need-to-know silos.

But where the process has really broken down from an IP perspective is with the partners. And particularly the media, which has a stake in its survival on top of these devices. So we see a clearly endorsed leak that Apple will ship a tablet in March, as a result of meetings with media folks about supporting the platform. Of course they want to support the platform; the Kindle has already iTuned up the book business and YouTube the video pipeline.

It’s equally important for all concerned that Google succeed with Android and Nexus One; today’s rollout confirms how cleverly this is being played with the media. Not the pixel-stained wretches who seemed oddly more impressed than their content will let on. They are of course secretly very happy that a real competition is engaged. Apple the gatekeeper stories have been milked to death, and no one really cares what Motorola or Nokia has up their sleeve. No, the story is Apple v. Google with a twist.

The twist is that it’s actually not a competition but a mutual tag teaming of our social services. The key demo today was the voice control of tweets enabled across server side resolution engines. Every single input field on the Nexus One is voice-enabled. Sure, the voice enabled search linked up to the voice-prompted GPS service finances the new device, assuming it can be integrated into bluetooth for hands-free driving. That used to cost $99 for TomTom. But hands-free tweeting over bluetooth is huge, no matter what the anti-social media morons think.

Nexus One creates a viable pool of users trained on a gesture pattern similar enough to the iPhone to be absorbed with perhaps 5 minutes of use. Voice email as absorbed into the micro-message bus creates a huge transaction-ready set of customers who can trade access to their so-called private streams in return for discounts, special offers, and so on — provided the vendors play by the rules. Those rules are not to violate the user’s sense of propriety in the use of their private communications.

Gmail has succeeded because it established a sense of respect for our private communications while at the same time providing context-sensitive information that could be useful. Those links can be scary if you happen to notice how intelligently they are generated based on parsing of your private thoughts and business communications. Yet we understand that Google understands where the fourth wall is, where they can go right up to but not over.

Now look at the Nexus gesture stream and marvel: not just the text or the audio converted to text, but the time, screen location, zoom level, what objects and information gets shared, ignored, and so on. The map of these behaviors is incredibly rich — like turning our interests and intentions into a rich kind of braille where our fingers approximate what we are thinking in the moments in between transactions. Remember, each device is tagged to a credit card. It turns just about everything we do into a Kindle experience, as long as we feel compensated for visibility into the gesture stream.

Talking in a personal way to a public audience was the disruption that Twitter engendered. The voice-tweet tool gives us a mechanism that will work just as well across micro-communities, whether inside the Chatter firewall or cross-domain in a FriendFeed conversation. And the text processing can be used in several ways, to enhance voice mail as Google Voice and Ribbit do, and most importantly as a filtering mechanism to determine dynamically who sees what in the message stream. This is a huge disruption that Apple will have to scramble to meet, and another reason why the tablet will be so important when it appears.

Nexus One may seem like me-too, just like the iSlate will be called tablet take two. But in fact we’re seeing voice replace the keyboard on the phone, which in turn creates a vacuum on the desk/laptop for the iScreen to fill. Once we trust the conversion of voice to tweets, we’ll use private tweets to replace email. Once we trust the filters to deliver us the most actionable information in our windows of opportunity, we will also select the media services that best leverage the new platform. Once we make those decisions, the content produced for the astronauts will attract the settlers. And that’s a secret the media won’t be able to keep for more than a few seconds.

by Steve Gillmor on December 16, 2009

harveyHad a wonderful time at the Google Holiday Party the other night both because of and in spite of it being “off the record.” The ground rules created an atmosphere where Googlers could be more frank than they usually are (note irony here) and at the same time get to wall off portions of the media’s brains from talking about what they said. These moments feel a lot like the Washington senior official scenario, where quotes emanate from thinly disguised “spokespersons” which are in reality the actual “persons.”

In any case, I won’t reveal what was said by Googlers because I want to be invited back next year. Also because they didn’t say anything that contradicts anything they’ve said publicly or that I’ve made up out of whole cloth. In fact, what I can talk about is what I said. Here’s a digest of that stream:

It seems that the WebOS contest for the hearts and minds for developers is settling out as one between ChromeOS and Silverlight. In my mind, ChromeOS is Chrome, and now that it’s on the Mac I care. Chrome therefore subsumes FireFox, Safari, and eventually Android, regardless of what has been said about the difficulty (or not) of having one OS span the desktop and mobile devices. I can’t tell you when Googlers will release Chrome Extensions but a spokesperson pointed out Google has publicly stated the project is open source, which suggests you could look up the answer to this and many questions. Indeed MG has made a career out of doing this.

So when Extensions ship, I will move off of Firefox within minutes, not because I have any extensions other than PowerTwitter but because I wait for enough stability and market force to make moving a conservative bet. And the main thing I’m waiting for above all else is Silverlight compatibility. I can’t say what Googlers said about this, but my thought is that if they can support the crap Adobe AIR hairball, they can support Silverlight. My bet is they will or already do.

The Silverlight App Store
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by Steve Gillmor on July 30, 2009

ballmerOK. Did Microsoft just absorb Yahoo for zero additional cost beyond its oft-stated plans to spend some 10-15% of its budget on search per year? Did Apple really stifle innovation with its carrier-friendly App Store rules? And what’s common to both companies’ developer strategies? Yes, no, a lot.

Working backwards, Apple and Microsoft offer their developer communities their favorite incentive — money. Seven million .Net developers come out of the Yahoo deal stronger than ever, with very few public comments from Yahooers hoping to move over to Microsoft like the ones that drowned out the proposed buyout phase of this deal. Back then, it was all about the complexity of integration of the Valley stack with .Net, and how ridiculous it was to think Yahoo engineers would work for or even with the Redmond crowd.

But the Yahoo deal was never about Microsoft. It was about Google cleaning Yahoo’s clock, leaving it vulnerable to the takeover that’s been happening in slow motion ever since. The original deal was tied to a timetable designed to clear the Bush administration before it left office, and no one seemed to recognize how serious Ballmer was when that deadline expired. Given the trouble Google had with its subsequent deal with Yahoo, you might have a little more respect for Ballmer’s counting of the cards in the first phase. Now, with Google out of the antitrust argument and in effect validating the rationale for the new deal, Ballmer is sitting pretty.

With Yahoo out of the search business, a two-horse race provides incentive for an attack on Google’s realtime challenges. It’s not so much that they don’t understand the stakes, but as with Google’s undercutting of Microsoft revenue streams, Microsoft doesn’t have to defeat Google in order to profit from a healthier competition for the efficiency of click-throughs. Just as television advertising is distributed across a four-network market regardless of NBC’s or CBS’s current status, so too will efficient results work across a 70-30 split. What does make a difference are the Web properties that house the ads, and that’s where social media and its follow clouds can make a big difference.

Here’s where the comparison with Apple and its developer cloud begins to resonate. Every time we hear the outrage of an unfairly damaged App Store victim, our first inclination is to think there’s some fundamental flaw in the relationship between Apple and its third party developers. The argument: Apple’s arbitrary limits are designed to protect AT&T from applications that subvert their revenue model, and/or Apple from losing its leverage obtained through the exclusive deal. It’s a complex series of checks and balances — subsidized device prices to spur dominant market share, all-you-can-eat access, and the use of onboard WiFi to keep the pressure on for further concessions.

The best comparison is one with Twitter and its third parties — rate limits and shifting favoritism with developers based on allegiance for a few select winners. The models cross over with Tweetie, which not only enriched its developer and investors but established a poster child for how to play ball and win in both the iPhone and social cloud spaces. Contrast that with the unhappy video developers who tread too close to the firewall between excessive 3G saturation and the more constrained 3GS upload model, and most developers will overlook the losers and dream of hitting the App Store lottery. It’s not really a matter of rules but rather timing: what won’t work today inevitably will work at some point when bandwidth can survive the new usage pattern.

So the answer to App Store rate limiting stifling developers is no, and it points a way to the Microsoft opportunity that grows out of the slow-rolling Yahoo dismantling. With Bartz focusing on high value media plays, .Net and Yahoo transplant developers will start looking for an iPhone-like platform to get comfortable with in the horse race with Google. That platform is Silverlight, which offers advanced realtime rich media features coupled with access to the Microsoft advertising platform. Interestingly, Silverlight and the iPhone share some powerful characteristics — H.264 support, on and offline application models, and streaming deployment of both media and application update code tied to an iterative transactive micropayments fabric. And the keyword: money.

Google, on the other hand, will be watched carefully as it attempts to hurdle the application barrier Apple is defining with the Google Voice slapdown, as well as deal with the difficulty of integrating Google Wave with its apps or vice versa. At some point, Microsoft will have to decide how long they can protect their enterprise control of Office at the cost of losing the global consumer market of the next generation. They may realize a Silverlight socially aware Office for the consumer space (netbooks, XBox, and down into Windows Mobile) can jumpstart a Silverlight App Store before Google has a chance to react. Selling that for a bargain price (free) to the Yahoo crowd will look like the next logical step in the Yahoo takeover, and make the increasingly sweeter pill a lot easier to swallow.

by Leena Rao on July 14, 2009

A few weeks ago, Google announced a new plug-in that will sync Google Apps—the enterprise versions of Gmail, contacts, and calendar—with Microsoft’s Outlook, letting customers use Outlook on their desktops if that is what they are comfortable with, and Google Apps will run on the backend. Of course, the plug-in ended up running into a few problems. But the takeaway of the news is that Google is trying to make it simple and cost-effective for enterprise customers to make the switch from more commonly used enterprise applications, such as Microsoft’s Outlook, to Google Apps. Today, Google is adding the ability to migrate from another popular enterprise app, IBM’s Lotus Notes.

The new tool lets customers migrate mail, calendar and contacts from Notes to Google Apps. The syncing tool, which Google says is a native Notes application, can be installed and configured in less than 30 minutes, for multiple users at once. The tool has already been tested with 40 of Google’s enterprise clients, including JohnsonDiversey (10K users) and Valeo (32K users). The tool is free for Google Apps Premier and Edu customers.

Break Up GoogleSoft
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by Steve Gillmor on July 8, 2009

justice1The best news in years for Microsoft just hit the wires. Remember way back when Microsoft was under the threat of a breakup in the anti-trust days? Bill Gates famously pointed out Microsoft had no such thing as a monopoly, because (this was pre-Google) some company could come along at any moment and change the dynamics of the environment.

Soon he was proven exactly correct, as Google emerged with a browser-based Ajax-fueled broadband-harnessed realtime platform. Once this platform produced advertising network effects, the upstart company had all the ingredients to mount an attack on the inevitability of Microsoft. But what most saw as a direct attack on Microsoft actually produced more pain for other players. While Microsoft used the time to advance strongly in the enterprise server market, Sun lost control of its hardware leverage as Google built its realtime monetization engine on top of Linux.

Apple used the same window to move from its niche hardware and OS platforms to Intel and OS/10, grabbing the leadership in the mobile market and transferring its application base to a browser plus services approach. Did this harm Microsoft? Not really — it gave Redmond an OS target to compete against rather than against itself, and the time to migrate to a Web-based OS strategy that will show its current evolution this Friday with the release of Silverlight 3.

So now comes Chrome OS and what makes you think this puts any real hurt on Microsoft’s business. Mind share, media perception, even some developer erosion (although I doubt it.) Sure, the atmospherics are strong. After all, Google is in the advertising business. And although Chrome hasn’t produced real market share yet, it will start accelerating once the Mac version ships and all of us technocrats start loving on it full time. No, all of this is good news for Google. But bad news for Microsoft? Don’t think so.

WHere does it impact revenue anytime soon? Nowhere except in the enterprise, where it will increase IT’s need to sell into a strong Windows channel. Google will continue to garner occasional wins for Apps, which will largely serve to promote collaboration features coming in Office 2010. And oh yes SIlverlight, with its realtime streaming architecture, integrated adserver metrics, and oh maybe, a Silverlight based social center of the new desktop, which as Marc Benioff tells me is really the new center of the network.

Chrome OS couldn’t be a better driver for HTML5, for Silverlight, for AppEngine, for Azure, for Gphone/iPhone (forget the Pre), for Silverlight Mobile, and so on. Back and forth, as Google buys time to work with Apple and force H.264 back into HTML 5, while Microsoft buys time to build a SIlverlight Office around the micromessaging Trojan Horse. We’ll look back in the second half of 2010 when Chrome OS ships and see the midtier between Android and Windows filled with a realtime net-OS and two huge winners. As Bob Dylan says, It’s All Good. Only problem then is how to break up GoogleSoft. Good luck with that.

The Third Front
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by Steve Gillmor on June 2, 2009

jisScott McNealy’s reappearance at JavaOne for the first time in the years since he handed control to Jonathan Schwartz had the feeling of a swan song. But there was also a steely purpose to his gate and demeanor, as he dismissed Schwartz with a hearty handclasp for his stewardship and extracted the slide clicker from his grasp with a note of baton-passing. The camera didn’t even follow Jonathan offstage; he just wasn’t there anymore.

Then it was on to incoming owner Larry Ellison, who Scott framed with a few setup remarks about what he called a merger before engaging Ellison in the only Q&A allowed under the terms of the pre-acquisition interregnum. It was all about Java, of course, neatly sidestepping the hardware plans and focusing instead on Sun’s latest Microsoft counterattack, JavaFX. Ellison positioned the Silverlight/Flash clone as the development environment for netbooks and an AJAX-less version of OpenOffice. This was in odd counterpoint to Google’s Android strategy, which is spreading from phones to Acer netbooks while leveraging Google Web Toolkit to write Java apps that compile into Javascript code.

At Google I/O Google engineering chief Vic Gunodtra — who leads similar duties after managing Microsoft developer strategies — outlined an integrated strategy that incorporates GWT and the open source Eclipse IDE as a way of moving rapidly away from proprietary code to an HTML 5 platform built on “modern” browsers that already run on Chrome and FireFox. Ellison seems to be suggesting JavaFX as a way of capturing those same Java developers Google is squiring, though JavaFX is not supported by Eclipse but only by Sun’s NetBeans environment.

flag
Though Ellison cited his “friends” at Google, the sentiment echoed the “merger” talk McNealy was pitching until he carefully handed his new boss a signal flag that the two straddled as Scott translated the letters as J A V A. Whether you buy the good news that Sun’s and Oracle’s R&D budget is between $4 and 5 billion annually, it will be interesting to see whether Ellison’s nod toward the mobile desktop and a new front against Office is serious. With Microsoft’s Dan’l Lewin and Steven Martin keynoting Thursday’s session, Oracle and Ellison may be fighting the last war and giving Google room to consolidate around a strategy that marginalizes Java as a programming language, keeps Java off the iPhone, and creates a three-front war that allows Microsoft to slipstream Silverlight into a netbook Office play.

The Manhattan Project
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by Steve Gillmor on June 1, 2009

waveGoogle Wave may be a big deal for Google, but it’s an even bigger deal for Microsoft. It forces Redmond to step up at the very time it would rather run silent and deep. Correct that: those owners of the crown jewels who’ve guided the aircraft carrier for decades would rather ignore the impact of these two brothers and a product manager who moved Down Under to build what may well be Google’s realtime core.

Windows may be more protected from the Wave than Office, which must now confront not just a new feature set but a disruptive route-around of the core document formats. When Lars, Jens, and Stephanie demonstrated a Wave extension that provided robot-scraping grammar-checking in realtime, they put the lie to the common wisdom that Office was invulnerable to the Web. And in the process, they changed the monetization model for Office as well.

What happens when Wave applications store not just the deltas between document actions but the actions we take in response to incoming information? Let’s say the micromessaging stream reports some event that suggests a shift in interest rates, which in turn is noticed by a robot on guard for relevant changes to your financial position and assets. This in turn triggers a message that is sent to your broker, or a transaction commitment to buy at a certain level, or a pushed reminder to click yes to authorize the purchase of flowers for Mother’s Day, etc.

In Wave-ese, robots are Trackers. And in Track-ese, sharing those gestures is a monetization engine of unparalleled efficiency and value creation. Instead of thinking of your value as being generated by what you say or type, think of it as a stream of content, context, impressions, lack of gestures, and other high value information that those who’ve learned enough about you value access to that stream. Add the cumulative streams of the overlapping clouds emanating from your center — the ripples of those you follow and those that follow those you follow — and you have the next generation of discovery, a meta-search.

What follows is an appstore for gesture streams, with data supporting the predictive nature of the best of those streams. Today’s complaints about too many tweets and rush hour data storms are the early signs of markets for efficient triage of information. The payload/URL construct will lead to new versions of Google and other Readers that absorb and replace the RSS reader with dynamic socially-filtered robots that present only the most targeted information. In effect, Wave robots will be dynamic instantiations of socially-tuned rules engines, drawing on the services of Wave extensions to add processing and rendering to the output stream.

The new media will emerge from this primordial soup in short order, squeezed under pressure from accumulated information glut into the oil that the social engine runs on. How-To’s will become a combination of instructions and tests of how well the tasks are completed. These hybrid stories/tutorials will use the feedback loop to tune themselves for greater effectiveness, and the broader success of marketing those products among the social cloud will lower the price while increasing revenue and features. This is the feedback loop Bill Gates and company exploited in the Windows generation.

How the new Windows absorbs the old one is Microsoft’s dilemma, and also an enormous opportunity handed to Ray Ozzie and his team by Wave. Wave’s delta-driven XML streams are directly descended from the Groove architecture, and Live Mesh can be seen as a similar reboot of its parent as part of Windows 7 and Live. In effect, both companies are now at roughly the same place in integrating realtime into the respective architectures. Like Wave, Mesh started as a small skunkworks project and is now being integrated into the shipping OS under Windows chief Steven Sinofsky. Sergey Brin was equally clear about Wave’s trajectory inside Google.

Microsoft has great momentum and the firewall of inertia in the enterprise. Office is buttressed at many institutional levels, governmental, corporate, and legal. But once dynamic documents proliferate and business gets done increasingly across corporate domains, the traditional document types must adapt or corrode and disintegrate. Here again, the Wave robots look like cute R2D2s for finding the latest sales and Craigslist freeware, but enterprise extensions will start taking off once Wave gets the Apps green light. A dynamic document that hits iPhone, Gphone, and netbook in realtime will go viral with the same speed it rolls out of the various appstores.

Put simply, the Office team has no choice but to accelerate its move to the cloud. First place they have to jump is at the center of the desktop, with a micromessaging app. Can Outlook be reworked quickly enough to counter a Wave Reader? See how the mind is focused when you compare the two timelines? Google Reader reworked may not be quick enough for some of us trackheads, but all it has to do is beat the Exchange team. Unless a Manhattan Project is formed that works with a realtime micromessaging version of Bing to produce a rich Silverlight-based client with — yes, HTML 5 support in the very markets IE can’t currently support.

Crazy sounding, isn’t it. Right now the best browser for Windows and netbooks could be Chrome/FireFox, and what better way to stay in the game until a Silverlight/IE hybrid provides a direct competitor/complement to Wave/Chrome. Microsoft can compete with Visual Studio against Google Web Toolkit, and its army of .Net developers can port their enterprise apps to Silverlight and add realtime extensions. If they don’t, they’ll move to Wave and its greener realtime pastures. This is the language Microsoft understands: developers, developers, developers.

The Swarms of Summer
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by Steve Gillmor on May 17, 2009

heavyweatherWhile we continue to debate the Death of RSS, another more interesting battle is taking place inside the walls of some important companies about the shape of the new realtime network. Though Google has seemed to capture the imagination of the Valley and the respect of Microsoft, it is Redmond where the impact of realtime is most sharply felt.

Google’s 20 percent project has finally reached official mainstream status: Google Apps, Gmail/Chat/Reader, and its attendant Open Social constructs are sufficiently mature to garner structural attention within the search giant. Loss leaders including Android/Chrome and YouTube are about to pivot from bottomless pits to viral attention farms. YouTube in particular is poised to capture the lion’s share of realtime video as it becomes the hard drive for the Twitter DVR.

How a virtualized media network transforms our usage patterns is already understood by the networks and their more aggressive forward scouts such as the New York Times. Many see this period as the death of the newspaper, but watching how the Times and Murdoch’s Journal are crushing the second tier of almost-but-not-quite national publications suggests the papers are girding for battle not with each other but with the cable networks. It may look like a collapse, but who better to compete with for the attention of news-hungry desktop and mobile users.

These are the same users who’ve been fleeing RSS for Twitter in recent weeks as the message bus gets clogged with old-media marketing crud and Brittany trivia. Users still want their gossip and such, but they want it prioritized behind any significant realtime information that can help them save/keep/find revenue and outlast Depression 2.0. It’s not that RSS has suddenly stopped working; it’s just that realtime is faster, and it increasingly is using custom transports that are more socially attuned. The results of an affinity cloud increasingly trump other notification engines.

With high priority signals clamoring for position at the center of the desk/phone top, those networks with pole position will push out the rest. If it’s video, it’s YouTube. For that matter, if it’s audio, it’s YouTube. Podcasts? Sorry. Streaming notified over the realtime bus. H.264 across the iPhone and Silverlight. The rest will follow. Notice for the first time I include a Microsoft pole position. Google builds the standard, Microsoft ratifies it.

Microsoft must move quickly in this environment to align with winners in the message bus prioritization queue. I’m not talking here about Silverlight v. Flash adoption; that’s marketing blocking and tackling while waiting for the viral events that fuel the rollout, what John Borthwick calls bursts and what Ray Ozzie discovered in the swarm accelerator he called Groove. We don’t know what those swarm events will be, but we know what they look like when they materialize. And those technologies that accelerate swarms will also proliferate, and in the process overwhelm and dominate the attention of developers, innovators, entrepreneurs, money, and the media.

Swarm technologies thrive on the extended efficiency of social properties. Take links, for example. Swarm technologies depend on speed and economy of gestures, or actions. If I have to choose between a static link that appears embedded in a document and a dynamic link emanating from a tweet, I’ll choose the combined authority of the original author plus the tweeter (who I’ve followed or tracked). Likes or retweets accelerate the swarm further with additive or iterative influence. This is why Twitter’s @reply attack strikes at the heart of idea discovery too. A link to someone not followed from cross-talk with someone I do follow is a strong signal of potential value. The cross-talk may seem diffused, but users will migrate to tools that let them make the most efficient assessment of value.

If Microsoft wants to engage with realtime prioritization, what assets does it have? Office, for one. If we follow the logic of swarm economics, it’s not a contest between Office Live and Office Dead, but between Office Static and Office Dynamic. Since Office 2010 is already in BitTorrent release, there’s not a lot of time to jump into the stream. Where is the entry point? A quick look at Google will tell an interesting tale:

Email? Gmail didn’t incorporate Google Reader, because RSS is static not in design but in contrast to realtime streams. Instead, they integrated chat over XMPP, which was then bootstrapped by Twitter for 2 way Track until it was withdrawn from circulation. By tracking my user name (stevegillmor without the @ sign) I set up a notification point for anyone to signal that I might be interested in a link, whether to a post or a person). These dynamic links quickly stole my attention because they were weighted with social gravity, not to mention the rest of the context and metadata embedded in the message.

I won’t examine the rest of Google’s Office because we already have the answer in the preceding sentence. The stream of social gravity, layered with context (the message) and (perhaps encrypted) metadata via the URL shortener gateway, becomes the rich center of the desktop and beyond. Google’s recent experiments with context switching and synchronization between desktop and mobile device can be seen as dynamic link conversion at their core. A search for a restaurant before leaving home is wrapped as clickable phone number or on-deman map while fumbling at a traffic light.

Microsoft has some significant skin in this dynamic on-demand link game, what with Mesh now a part of the Windows/Windows Live core. Silverlight is the wild card here, politically charged with its implications for a cross-platform Office. It’s also the likeliest host for a dynamic link hub utilizing Mesh’s social constructs and Azure’s scalable back end. On the media side, Microsoft competes with Apple and Amazon with the Kindle platform for the deep but frightened pockets of the record, movie, book, and magazine businesses. Look for those industries to collapse into one, starting with newspapers and magazines blurring into dynamic books. Imagine a FriendFeed realtime chat appearing inside a manuscript as it reacts to realtime events.

A quick check of the calendar reveals how quickly this will happen. Windows 7, Azure, and a mindshare edition of Office will ship by November. Track will reappear first on FriendFeed, then Facebook, and probably simultaneously in Twitter. Microclients will unpack dynamic links and present them for consumption and contribution, updating those dynamic links with contextual social gestures that will hit the prioritization engines and synthesize swarms. It’s gonna be a hot summer.

Google Cloud:1. MS Office: 0.
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by Leena Rao on May 13, 2009

Since Gmail’s birth in 2004, Google has steadily built a powerful cloud-based email platform that’s chock full of innovative features including offline access, chat, search, mobile access and more. Google saw the opportunity to integrate Gmail and apps, like docs and calendar features, into the enterprise space and rolled out premier editions of Apps catering to the business community. Today, Google announced that it has struck a partnership with Valeo, an automotive components manufacturer, to deploy Google Apps on the company’s entire global workforce, which totals about 30,000 internet-using employees.

“The cost savings and innovation made possible by cloud computing help businesses better respond to a global and mobile workforce – especially in today’s difficult economic environment,” said Dave Girouard, President, Google Enterprise. “We’re thrilled Valeo has selected Google.

Google says more than a million businesses and ten million users are implementing the Google Apps suite currently but to date, the Valeo partnership is the largest single enterprise deployment. Genentech may be the second largest, with 20,000 users. Valeo is moving to the cloud with the support of technology consulting firm Capgemini.

When Google Apps first launched in 2006, it was free. Since then Google introduced a new model, where the free Google Apps account could be used by 50 users and the premier edition of the service, which as more storage and an uptime guarantee, costs $50 per user.

Google Apps is not directly competitive to MS Office (Google Apps is cloud based), but could be disruptive to Microsoft’s office suite, especially as Google continues to adds features to its own suite and builds on real-time collaborative features Office still doesn’t have.

by Erick Schonfeld on May 12, 2009

One of the next frontiers of search is taking all of the unstructured data spread helter-skelter across the Web and treat it like it is sitting in a nice, structured database. It is easier to get answers out of a database where everything is neatly labeled, stamped, and categorized. As the sheer volume of stuff on the Web keeps growing, keyword search keeps getting closer to its breaking point. Adding structure to the Web is one way to make sense of all that data, and Google is starting the tackle the problem with a Google Labs project called Google Squared, which Marissa Mayer mentioned earlier today at the company’s Searchology briefing.

Google Squared extracts data from Web pages and presents them in search results as squares in an online spreadsheet. Michael was at the event and got a personal demo (see video after the jump).

Ten Free Tickets to Google I/O Developer Event
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by Leena Rao on May 11, 2009

Google has given us 10 free tickets for TechCrunchIT readers to attend for the upcoming Google I/O developer event on May 27-28 in San Francisco.

Google I/O will be held at the Moscone Center and will cover the following topics: the Android, App Engine, Chrome, GWT, and AJAX APIs, with a special focus on the enterprise. Last year’s event saw one of the first demonstrations of Google’s Android mobile phone OS, as well as the public launch of App Engine. Google also handed out T-shirts cleverly meant to spell out “Google IO” in binary, except they actually said Google KO.

Tickets are usually $400 each; but we are giving ten free tickets away to readers who give us the best answer to this question:

Does Google have a real-time strategy and if so, how is it going to compete against Twitter and Facebook in the real-time wars given the recent death of RSS?

Please submit your answer in comments and TCIT editor Steve Gillmor will pick out the ten best answers (be sure to use your real Email address).

Google And Salesfore Integrate Google Earth in CRM For Non-Profits
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by Leena Rao on May 6, 2009

Google and Salesforce.com have teamed up to let non-profits which use Salesforce’s CRM access Google Earth to put partners, volunteers, and donors on an easy to read map. Google says that the application is a mash-up of the new Google Earth browser plug-in and geocoding APIs that will map and display the location of items in a CRM in Google Earth. Salesforce says that more than 4,000 “social change organizations” use Salesforce currently.

Here is a video showing how the app works:

Google and Salesforce say that when designing the app, they wanted to implement maps for account and non account objects, such as the opportunities or custom objects found in the Salesforce CRM application. So they designed a custom object to hold location information. This object can then be linked to any other object in the non-profits’ system, such as an opportunity to assist a village in Africa, which is called the Geo-Location object. Within the app you can input the location information of the object or the app can lookup and store that for you.

This is a pretty nifty feature and a good example of cross-cloud integration between two cloud-based applications. Although its only being rolled out for the CRM used for non-profits currently, the hope is that this feature will be extended to all of Salesforce’s CRMs soon.

by Leena Rao on May 1, 2009

There has been some doubt lurking in the trenches about whether Google has a solid, organized enterprise strategy. But there have been some recent developments that indicate that Google might have a viable game plan to become a player in the enterprise space. Yesterday, Google rolled out Google Apps Directory Sync, a tool that will let businesses sync the user account information in Google Apps with Microsoft Active Directory or Lotus Domino. Google says it’s using technology from Postini, security and compliance company Google acquired in 2007, to import information from users’ LDAP (Lightweight Directory Access Protocol) systems, which includes mailing lists, groups, and user aliases, to a user’s Google Apps account. This utility will help many businesses, schools etc. who are currently using Google Apps save a lot of time and energy when it comes to importing information to their Google Apps system.

Google’s Data Storage Goes Green
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by Leena Rao on April 9, 2009

Last week, Google hosted an “Efficient Data Center Summit” with leaders from the IT sector to discuss best practices for improving data center efficiency, whole also saving money. Here’s what Google had to say in its blog post about the summit:

“Saving electricity and water is not just good for the environment, it makes good business sense too. Being ‘green’ reduces operating costs and can keep our industry competitive; it is the economic advantage that makes efficiency truly sustainable.”

Google has a pretty interesting set of slides about how to maintain sustainable data centers. The slides say that e-waste is a growing problem and the best practices to combat this are the 4 R’s: 4 R’s: Reduce, reuse, repair, recycle. Google says that 68% of the company’s retired server material is re-purposed (internally or externally). Google also highlighted water management as data centers as another part of the sustainability solution. Google says that currently two of the company’s data centers are 100% self-sufficient for process cooling water by utilizing treated waste water. They expect that by the end of 2010, Google will be 80% self-sufficient for all of their data center water consumption. Google also said that they have been able to reduce their data facility energy use by 85%.

Google’s initiative is pretty cool and it’s especially great that they are taking the lead to spread the word about the benefits of green, efficient data centers. As Google states, being sustainable and efficient in data operations not only is good for the Earth but it also saves money for IT businesses.

Here’s a video tour of the data center:

Follow the Mobile User
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by Guest Author on March 29, 2009

This guest post is written by Vic Gundotra, Vice President of Engineering for Google’s mobile and developer products. (Prior to Google, he spent 15 years at Microsoft, most recently as their GM of Platform Evangelism.) Vic credits his now-7-year-old with forecasting the importance of mobile data access, and now carries at least 4 phones at all times. Fortunately, he had two kids before adopting the possibly-prophylactic habit.


Focus on the mobile user, and all else will follow

Simpler data, better browsers, and a smoother experience

Today the mobile industry finds itself in a unique position to do right by its users:

Worldwide phone penetration continues to climb at a break-neck pace, with over 4 billion mobile subscribers at last count.1 (In comparison, the PC industry is forecasted to see its sharpest unit decline in history.2) Prevailing economic conditions will accelerate this trend, as users consolidate pricey communication services into cost-effective, all-in-one mobile devices.3 And for the first time ever, half of all new connections to the internet will come from a phone in 2009.4

Google’s mobile traffic reflects these milestones — having quintupled since 20075 — and it underscores users’ appetite for mobile data services. But as a community of operators, device manufacturers and software providers, we continue to get in their way. In short, and as a general rule, we make it too costly, too unfamiliar, and too difficult to do anything beyond voice calls.

In reply I offer up three suggestions: simpler data plans, better web browsers, and a smoother on-device experience. And in each case I’ll use Google traffic numbers as a proxy for total internet usage and user happiness.

Disclaimer: As a Google employee using internal data to carry the weight of this article, I owe it to the reader to lay bare my economic incentives: the company I work for has a financial interest in the broad and sweeping adoption of the Internet-as-we-know-it. Indeed, more internet users leads to increased web usage, which often leads to more Google searches and downstream ad clicks. I use Google data because it’s what I know best, and because it reinforces my industry-facing remarks, but make no mistake: I’m fundamentally interested in what’s good for the mobile internet. It just so happens that this is also good for Google. With that said, I hope you’ll find value in the words and data that follow.

Flat is the new phat

Consider MetroPCS, a regional carrier in the United States with just over 5 million subscribers on their 2.5G CDMA network. Over the past year, their Google search volume grew over 2.5x more quickly than another global carrier with 10 times as many users, and a 3G network.6


Metro’s “secret” is a free month of web access at signup, with the option of flat-rate, unlimited data thereafter.7 As a result nearly half of Metro’s subscribers use the web on a regular basis. (It’s also worth mentioning that MetroPCS was recently recognized for excellence in customer satisfaction.8)

In contrast, many operators subject users to a labyrinthine set of data options, from pay-as-you-go to daily caps with significant overage charges. Now, can you imagine paying your at-home internet provider for every page load? Or needing to know the size of a website before visiting it? Or managing your monthly download quota across your entire household? It’s simply not practical, and it’s all the same internet, so why do we treat mobile users as second-class citizens? Case and point: my colleague’s January phone bill contained 27 pages of itemized data charges, spelled out in excruciating detail.9

Unless we declare flat the new phat — and soon — I fear Occam will do something terrible with his razor.

They want it all, they want it now

Users “get” the web, and they’ve known for over 10 years that the browser is the thing that takes you there. Likewise, more and more of today’s killer applications are the Amazons and Facebooks of the world, not software that you download to a local machine. So it should come as no surprise that mobile users want phones (and browsers) that put a fully-featured internet in their pocket.

For example: the availability of a modern web browser explains why iPhone and Android users — just 13% of the high-end market10 — represent nearly 50% of Google’s smartphone traffic worldwide.11


Similarly, users of the T-Mobile G1 and its newer WebKit browser search Google 20 times more often than Nokia Series 60 users.12


Both data indicate that it’s about usage — not just units — and this trend will continue unabated with more efficient JavaScript engines, and more sophisticated HTML5-compliant browsers.

The simple truth is that mobile users have wanted fast and full web access all along. Consider two quick facts about Google search behavior: the “tail” of PC and iPhone queries is significantly longer than that of feature phone queries;


and the gap in query diversity between desktop and high-end mobile devices is shrinking.13 People want all the world’s information on their most personal of personal computers, and we need to offer browsers that scratch this quintessential itch.

“One web will triumph.”14 Users want all of it. And they want it now.

Friction is fugly

In the early days of mobile search, customer feedback was clear: “I can’t find Google on my phone.” And in hindsight it makes sense: unintuitive device menus and preference panes mandated 20+ mind-numbing clicks just to locate portal content15 — nevermind “off net” sites like Google. This Frankenstein’s monster of OEM, carrier, and 3rd party software made it impossible to discover — much less enjoy — mobile data services, and showed a complete disregard for users’ on-device experience.

Thanks to an influx of smarter phones, many mobile users can now reach 3rd party software with a single tap or click. And in Google’s case, this desktop-like experience increases search traffic by many orders of multitude.16 Why? Because it provides a frictionless onramp to search results. Likewise, and prior to its v5.0 release in February 2009, Google Earth saw more activations on the day of its iPhone launch than any other day in the product’s history. Why? Because the iPhone’s App Store and on-screen layout make it easy to find, try and access mobile data services.

And herein lies the rub: users appreciate well-written software, but ease of use and on-device navigability are critical preconditions for usage. (After all, if you hide a tree in a forest, who cares whether someone hears it fall? Chances are they’ll never find it anyway.) The proliferation of app stores is a positive step in this direction, as are efforts on the part of OEMs to give developers unfettered access to low-level functionality.

We have to surprise and delight users with fast and fluid interfaces. Friction is just fugly.

- Sent from my Android phone, with a WebKit browser and an unlimited data plan


  1. ITU, 2009
  2. Gartner, 2009
  3. comScore, 2008
  4. eMarketer, 2008 and 2009
  5. Google internal
  6. Google internal
  7. MetroPCS, 2009
  8. J.D. Power, 2008
  9. January phone bill, redacted
  10. Canalys, 2008
  11. Google internal
  12. Google internal
  13. “Computers and iPhones and Mobile Phones, oh my!”, 2009
  14. Opera, 2008
  15. http://www.biz-lib.com/products/ZMOMX.html
  16. Google internal