Feeds:
Posts
Comments

Posts Tagged ‘Amazon’

As a technology scout, I often look for new behaviors of consumers in order to predict technology evolutions. After some time looking into the GroupOn trend, I have started to form a mental understanding of sorts. The stakes are high and the social shopping trend presents a new prosperous businessmodel and most large online companies are making the move to harness the trend. Let me explain the separate parts that forms my picture and what it all means.

1. eBay – the online fleamarket.

Looking at what today is widely accepted as a stunning success and moneymachine – eBay took the private entrepreneur online. Craigslist and similar services continue to provide broad audiences for the private seller. The shift from paper to online generated a larger audience and more interest for the second-hand market.

2. Facebook – networking our life.

Through the introduction of online social networks like Friendster, MySpace, Bebo, Twitter and Facebook, personal networks got joined together online. The effects of “Faceboking” you social life is a transparency that newer been visible before. New “check in” services from GPS enabled mobile devices further expose our location and automatically connects us with unknown people on the same location.

3. iPhone – making applications smarter.

As mentioned above, “check in” services like “Places” on Facebook, Loopt, Gowalla and Brightkite brought the social context to the mobile device though their “check in” features. Together with Twitter and Facebook mobile, the social and contextual dialogue is more and more becoming a way of using the technology.

The New, New Market!

So, based on these three separate innovations,a new market is emerging – Social Shopping. Sure, not all new in its core – Amazon have for long had recommendation and 3:rd party providers of used products. But, if I look closer on the trend, and take into consideration the companies that have announced that they are testing similar products – it will be a fierce battle ahead.

GroupOn is the one stealing all the headlines right now, IPO rumors are spreading and the race is on for becoming the leader of the pack. Nr. 2 on the market – Living Social are playing catch up. Recently I was invited to sign-up for Facebook Deals, a service originally launched last year and currently going through updates similar to GroupOn and Living Social. Goggle is testing its Google Offers. Microsoft is using it´s Bing to for similar services.

What does it mean?

What does all this mean you might think. I fell it’s a contextual shopping trend that moves the web 2.0 into a truly social value experience. If you are shopping for something and have the mobile device, you will be able to utilize your location and seek out good deals close to where you are, when you want it. The technology evolution exemplified by iPhone and Android phones with location awareness embedded is the technology enabler. Facebook networks are the social context and audience for spreading the word and eBay entrepreneurs can chase deals and post them on the social shopping sites to generate a self-serving ecosystem that becomes a machine in it self.

One might think that this technology trend, contrary to social networks of relationships (which are personal and limited) like Facebook, have enough room for more than one or two major services. As the trend relies on action rather than relation, its a active usage and active user who drives the equation – on Facebook, it’s all a matter of who you know.

Implications

The biggest question for me is if Facebook will succeed in incorporating their Facebook Deals service into the private social networks as a natural extension of smaller, often local groups of a few hundred people, as seem to be the norm of the personal networks on Facebook. If they succeed, they will steal the market from the pioneers like GroupOn and Social Living and further solidify their position as the premier social destination on the net, if not Facebooks value will decline as a result and focus might shift. Google, Amazon and Microsoft will steal their fair share of the market place, as they own large audiences and often “host” a mature audience searching for little less cool and less hip offerings – with high trust and reliability.

The race is on!

Read Full Post »

Article from SFGate.

“The hottest trends in technology also represent some of the gravest threats to corporate data security.

Mobile devices, social networking and cloud computing are opening up new avenues for both cyber criminals and competitors to access critical business information, according to speakers at this week’s RSA Conference 2011 at San Francisco‘s Moscone Center and a survey set for release this morning.

The poll of 10,000 security professionals, by Mountain View market research firm Frost & Sullivan, also concluded that corporate technology staffs are frequently ill prepared to deal with many of the new threats presented by these emerging technologies.

“The professionals are really struggling to keep up,” said Rob Ayoub, global program director for information security research at Frost & Sullivan.

Mobile: Mobile devices ranked near the top of their security concerns, coming in second behind applications, such as internally developed software and Internet browsers.

Businesses face a number of threats from the increasingly common use of smart phones and tablets by their workers, including malicious software that attacks the operating systems, or the simple loss or theft of devices often laden with corporate information.

Juniper Networks, a sponsor of the RSA conference, presented some eye-catching – if also self-serving – statistics during a session titled “Defend Your Mobile Life.”

Mark Bauhaus, an executive vice president at Juniper, said that 98 percent of mobile devices like smart phones and tablets aren’t protected with any security software, and that few users set up a password. That’s troublesome, he said, given that:

— 2 million people in the United States either lost or had their phones stolen last year;

— 40 percent of people use their smart phone for both personal and business use;

— 72 percent access sensitive information, including banking, credit card and medical records;

— 80 percent access their employer’s network over these devices without permission.

Bauhaus stressed the need to adopt mobile applications and online services – which Juniper not coincidentally provides – that remotely turn off and wipe gadgets, blacklist spammers, detect and remove viruses, and ensure that devices are safe before connecting to corporate networks.

Hackers have already tried to exploit the popularity of mobile applications by writing Trojan Horses, malicious programs that appear to be helpful apps in online markets, said two researchers from Lookout Mobile Security of San Francisco in a separate session.

Once users install the app, however, it can disable the phone, force it to execute commands or snatch information.

Since late December, two Trojans have been identified on Android phones that represented significant leaps in technological sophistication, said Kevin Mahaffey, chief technology officer of Lookout, which also develops mobile security services.

Known as Geinimi and HongTouTou, both are examples of malicious software inserted into otherwise familiar and legitimate apps.

“We’re nowhere near the level of sophistication you see in desktop malware, but it’s definitely a step up from what we’ve seen to date,” Mahaffey said.

Cloud: A Wednesday morning session titled “Cloud Computing: A Brave New World for Security and Privacy,” highlighted the considerations that businesses should bear in mind before using such a system, in which data are stored on remote server farms rather than ensconced behind a company’s own walls.

Placing corporate e-mails, human resource information or credit card numbers outside the company’s physical domain raises a number of legal, privacy and security issues, according to the panel.

Hackers go after cloud providers for the same reason that criminals rob banks, said Eran Freigenbaum, director of security for Google Apps.

“Cloud providers are going to get attacked and get attacked, because that’s where the data is,” he said.

The measure of a cloud service, like those provided by Google, Amazon.com or Salesforce.com, are how they hold up against such assaults and respond to exposed vulnerabilities, he said.”

Read original post here.

Read Full Post »

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.”

Read original posting here.

Read Full Post »

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.”

Read the original post here.

Read Full Post »

Here is a story from VentureBeat.

“It has been a rough three months for startups hoping to get acquired. Well, it’s been more like a rough year, but there’s new data from Dow Jones VentureSource focusing on the third quarter of 2009.

Overall, venture-backed liquidity (the combination of mergers, acquisitions, and initial public offerings) added up to $2.7 billion, down 49 percent from the same period last year, VentureSource says. It’s even a drop from the $3 billion of venture liquidity earned in Q2.

Things were even worse for M&As, which fell 56 percent to $2.25 billion paid in 71 deals — though the number would have been higher if VentureSource had counted Amazon’s $807 million purchase of Zappos, which hasn’t closed yet. Instead, that should add a big boost to next quarter’s numbers.

Acquired companies also made less money (median acquisition price fell 52 percent to $22 million) and had been waiting for longer to sell (median age increased 23 percent to 6.13 years).

On the other hand, IPOs were actually up from last year, with a combined total $451.25 million, the highest since 2007. That’s less exciting than it sounds, since the vast majority of that money came from battery company’s A123’s spectacular IPO, and there were only two IPOs in all. So it’s hard to see the increase as indicative of any big trend, except the fact that big IPOs are still possible. But hey, after the yearlong period (which ended in Q2) of no IPOs , that’s something.”

Read the full story here.

Read Full Post »

« Newer Posts - Older Posts »