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Archive for February, 2011

Article from SFGate.

“Amazon.com Vice President James Hamilton’s schooling in computer-data centers started under the hood of a Lamborghini Countach.

Fixing luxury Italian autos in British Columbia while in his 20s taught Hamilton, 51, valuable lessons in problem solving, forcing him to come up with creative ways to repair cars because replacement parts were hard to find.

“It’s amazing how many things you can pick up in one industry and apply to another,” Hamilton, who also has been a distinguished engineer at Amazon since 2009, said.

Hamilton is putting these skills to use at Amazon, where he’s central to an effort by Chief Executive Officer Jeff Bezos to make Amazon Web Services, which leases server space and computing power to other companies, as big as the core e-commerce business. He’s charged with finding ways to make data centers work faster and more efficiently while fending off competition from Microsoft Corp. and IBM Corp., his two prior employers, and AT&T Inc.

$56 billion in 2014

Revenue from the kinds of cloud services offered by Amazon is expected to reach $56 billion in 2014, up from more than $16 billion in 2009, according to research firm IDC.

Amazon’s Web services brought in about $500 million in revenue in the past year, according to estimates from Barclays Capital and Lazard Capital Markets, or about 1.5 percent of Amazon’s $34.2 billion in sales. The company doesn’t disclose revenue from Web services, also called cloud computing.

As they pursue growth, Hamilton and his team will have to ensure that Amazon’s investment in Web services is well spent. Investors pummeled shares of the Seattle e-commerce giant on Jan. 28, the day after the company said it would boost spending on data centers and warehouses, fueling concern that margins will narrow.

Although still relatively small, Amazon Web Services is growing at a faster rate than the company’s core business, and it’s more profitable, said Sandeep Aggarwal, an analyst at Caris & Co. in San Francisco. Web services may generate as much as $900 million in sales this year, and operating margins could be as wide as 23 percent, compared with 5 percent margins in the main business, Aggarwal said.

Hamilton, who has filed almost 50 patents in various technologies, is developing new ideas in cloud computing, which lets companies run their software and infrastructure in remote data centers on an as-needed basis, rather than in a computer room down the hall.

He spends much of his time shuttling between departments, encouraging teams focused on storage, databases, networking and other functions to work together. One aim: devising ways to squeeze costs out of multimillion-dollar data centers and passing those savings on to customers such as Eli Lilly & Co. and Netflix Inc.

Among the challenges Hamilton and his colleagues face is making Amazon flexible enough for customers that want custom services, while overcoming companies’ concerns about storing sensitive information outside their own secure firewalls. They’ve met with early success, with Amazon emerging as the leader in cloud computing among developers, according to consulting and research firm Forrester Research Inc.

Innovation required

Amazon’s Web services unit will have to stay innovative to keep ahead of competition from Rackspace Hosting Inc., which manages applications for businesses. Startups such as Cloud.com also are trying to carve their own niche in cloud computing.

Amazon has been able to stand apart from rivals by introducing unique products, said Jeff Hammond, an analyst at Forrester. For example, the company unveiled a service last month called Elastic Beanstalk, which lets even novices who don’t know how to write computer code plug into Amazon’s computing power.

“These guys continue to innovate in a way that the large traditional companies – the IBMs and the Oracles and the Microsofts of the world – are not doing,” Hammond said.

Last year, Amazon introduced Spot Instances, which took a nontraditional approach to managing underused servers. While many companies pack tasks onto underused servers and unplug the extra ones, Hamilton and his colleagues began auctioning off idle computing capacity. The result: Amazon got revenue rather than an unused server and the customer got a cheaper price than the normal rental rate.

“The trick is to find a steady stream of things like that,” said Hamilton. “We can make such a big difference here on services and server efficiency.”

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Article from GigaOm.

“The crush of smartphones, tablets and laptops all vying for ever more bandwidth intense content, has forced mobile operators to beef up their backhaul, rally for more spectrum and implement new network technologies. It’s also reshaping the way they think and build out their networks. Or it will. Last week, I had outlined the the demand for data combined with more people wanting access to the mobile web are forcing operators to add more diverse network technologies, such as Wi-Fi, picocells and femtocells and of course more base stations, which are all of their effort to build more creative pricing plans.

Essentially the current networks and airwaves are unable to meet the demands of millions of consumers trying to download YouTube ( s goog) videos and Posting pictures to their Facebook profiles. Carriers have already embraced Wi-Fi offload but the thought is even that won’t be enough. Plus adding Wi-Fi, and even smaller base stations such as pico cells or even femtocells adds complexity to the network.

As I said in my previous article: “But multiple networks and more base stations, as well as more demand, are forcing operators to undergo a shift similar to what the data center saw as the demand for computing began to overwhelm the profits and abilities of systems administrators to handle it. For example, when it took one person to manage 10 servers, owning 500 was an investment, but now with corporations owning tens of thousands, such a ratio would constrain demand. So places that required a lot of computing adapted and came up with new architectures and software that helped become the redundant, autonomic and cloud-based computing centers familiar today.That same shift will have to happen in the mobile networks, and Intucell is just one company that will help make this shift a reality.”

My previous article focused on Intucell, a startup that’s pushing a technology to help operators reconfigure their networks in real time. There are other startups aiming to address this space, whether it’s with an all-in-one chip design that can work on multiple radio frequencies inside a base station or companies trying to deliver real-time pricing and billing information to operators. But the big gear makers aren’t oblivious to this trend, and today Alcatel-Lucent announced its lightRadio suite of products that answers many of the needs mobile operators have.

With this launch, Alcatel-Lucent has fundamentally rethought the way cellular networks are built. Instead of the traditional model of multiple radios and antennas cluttering up a large cellular tower with cabinets of electronics connected back to the web via a fiber or hardwired backhaul pipe, it has built smaller antennas attached to a single radio that can send and receive Wireless signals using multiple radio technologies including 4G 3G and some 2G technologies. These are then connected back to the network via microwave backhaul and the processing required to separate and route signals occurs deeper inside the network rather than at the base station.”

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Article from NY Times.

“The DVR rocked the world of television by letting viewers skip commercials and build their own home viewing schedules. Now a handful of Web services and applications are starting to do much the same thing to online publishers.

These tools make it easier for people to read Web articles how, when and where they want, often dispensing with publishers’ carefully arranged layouts and advertisements.

One popular tool, Readability, strips articles to the bare minimum of text and photographs with a single click. But now, Readability wants to give something back to publishers.

On Tuesday, the developers behind the tool will unveil a service that requires a subscription fee of at least $5 a month. The service, also called Readability, plans to distribute 70 percent of that fee to the news outlets and blogs that each subscriber is reading.

For example, if a subscriber is a regular visitor to the gadget blog Gizmodo and the women’s news site The Hairpin over the course of a month, Readability will calculate what percentage of her payment should go to each site and send them checks.

“We were never about stripping ads or being an ad blocker,” said Richard Ziade, who created the original Readability tool as well as the second-generation version. Instead, he said, his team has been wondering: “Can we come up with a mechanism to make the experience of reading on the Web better, but also support content creators and publishers?”

Readability is one of many services experimenting with the future of reading. A wave of applications, including Pulse, Flipboard and My Taptu, are responding to changes in how people prefer to read on the Web, putting articles and blog posts into cleaner or more attractive visual displays.

Nate Weiner, founder of Read It Later, a Web and mobile service that saves articles to be read offline, said there was a larger shift under way, one that mirrors the move to digital from print. Instead of thumbing through the newspaper over breakfast, he said, people like to read articles from many sources on their commutes or in the evening, often using mobile devices.

“People don’t really want to have to be confined to a specific place, time, site or device to read content,” Mr. Weiner said.

Mr. Weiner recently analyzed data from his service, which has three million users, and found that those who owned an iPhone or iPad preferred to save articles for a personalized prime time. IPad reading, in particular, peaks from 8 to 10 p.m.

The glut of updates flowing across the average person’s computer and mobile screens throughout the day, either through social networks or links e-mailed by friends, is also driving the trend.

“If you’re a modern worker, you’re constantly being bombarded with information that you want to read, but that environment is not always the appropriate or best time to read that information,” said Joshua Benton, director of the Nieman Journalism Lab, which is affiliated with Harvard.

Mr. Ziade of Readability acknowledged that there were still many things to be ironed out with the new service, including how often to distribute payments and what happens if publishers refuse to accept the collected money.

The company plans to pay them “regardless of their participation,” he said. Should a site refuse the money, the company is considering options like contributing it to a charity or literacy organization.

Mr. Ziade, who is a partner at a consulting company in Manhattan called Arc90, developed Readability as a pet project in March 2009 and released it online for others to use free of charge; the code is available under an open-source license.

Since then Readability has gained traction among users — and among hardware and software makers. Apple now builds it into its Safari browser, Amazon uses it in the Kindle, and it is built into several mobile applications, including Flipboard, Pulse and Reeder. Mr. Ziade said it was difficult to track how many people were using the tool, but thousands of people visit the Readability home page each day.

Though the original Readability tool will remain free, Mr. Ziade hopes to capture a willing audience by simplifying the so-called micropayment model, which has been much discussed but is tricky to execute.

“Asking someone to pay 45 cents to read an article may not be a big deal, but no one wants to deal with that transaction,” he said. Marco Arment, an adviser to Readability and the creator of Instapaper, a service for saving and reading online articles, made a version of his Instapaper app that will essentially be Readability’s mobile component. Mr. Arment said he thought the most likely customers for Readability’s pay service were “online power readers.”

“It’ll be the types who buy print magazines even though the same articles are online for free, just because they want to support the publication,” he said.

“On the Web, it’s not that people aren’t willing to pay small amounts for things; it’s that there is no easy way to pay,” he added. “If a service like Readability comes along and makes it easy, I think people will be willing to pay.”

Services that put Web articles into new contexts for the convenience of readers have ruffled feathers before. Last June, lawyers for The New York Times Company objected to Pulse, an iPad application that collects and presents articles from many Web sites, in part because of the way it displayed Times articles.

A Times Company spokeswoman, Kristin Mason, said Monday that “as the number of apps in the news space continues to grow, we are monitoring and working closely with many of the developers to discuss any concerns we have.”

But Mr. Ziade said he had not heard a single negative reaction during the several dozen meetings he has had with publishers about his new service. He declined to name the publishers.

Mr. Benton of the Nieman Journalism Lab said that the interest in these services was driving “an increasing realization among publishers that not all customers are created equal, and some will pay for different experiences without advertisements.”

Jacob Weisberg, the editor in chief of the Slate Group, the online publisher owned by the Washington Post Company, said Slate had not talked to Readability but would “be happy to cash their checks.” Mr. Weisberg added that “if the numbers became meaningful, we’d of course want to negotiate” a deal.

Slate has added an Instapaper save-for-later button to its iPad application. Mr. Weisberg said this required a reader to load the original page before saving it.

“We’re still getting the page views and the ad impressions,” he said. “But certainly over time, as these services develop and start making money, it’s only reasonable they share that money with publishers whose content they’re piggybacking on.”

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Article from Fierce Mobile.

“Devices running Google’s (NASDAQ:GOOG) Android mobile operating system encompassed more than half of all U.S. smartphone sales in the fourth quarter of 2010 according to market research firm NPD Group. Android increased its U.S. market share lead to 53 percent as 2010 closed, up 9 percentage points over Q3–Apple’s (NASDAQ:AAPL) iOS slipped 4 percentage points to account for 19 percent of sales, tied with Research In Motion’s (NASDAQ:RIMM) BlackBerry (down 2 percentage points). NPD notes that Microsoft’s (NASDAQ:MSFT) legacy Windows Mobile OS dropped 3 points to 4 percent of the U.S. market, while its new Windows Phone 7 debuted at 2 percent, deadlocked with Palm’s webOS. The firm adds that Windows Phone 7 claimed a smaller market share at launch than either Android or webOS during their respective debuts.
Apple’s iPhone 4 was the best-selling mobile phone in the U.S. during the fourth quarter, followed in descending order by Motorola’s Droid X, HTC’s Evo 4G, the iPhone 3GS and Motorola’s Droid 2. For the first time ever, NPD’s quarterly Top Five sales chart did not include a feature phone device.
Android is now the top-selling smartphone OS worldwide as well–Android unit shipments surpassed Symbian device shipments for the first time in the fourth quarter according to data issued technology analysis firm Canalys. Android shipments topped 33.3 million in Q4, translating to a 32.9 percent share of the global smartphone market, Canalys reports; a year earlier, Android shipments represented just 8.7 percent of the worldwide market, a 615.1 percent leap. Symbian shipments grew from 23.9 million in Q4 2009 to 31.0 million in the most recent quarter–however, its worldwide market share plummeted from 44.4 percent to 30.6 percent during that time.
iPhone shipments increased from 8.7 million in Q4 2009 to 16.2 million a year later–its smartphone market share slipped from 16.3 percent to 16.0 percent. BlackBerry fell from 20.0 percent market share to 14.4 percent as device shipments increased from 10.7 million to 14.6 million–Windows Phone also stumbled, with its market share falling from 7.2 percent to 3.1 percent as smartphone shipments decreased from 3.9 million in Q4 2009 to 3.1 million a year later. Total worldwide smartphone shipments surpassed 101.2 million in the fourth quarter, up 89 percent year-over-year.

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