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Article from NYTimes.

“We’re here on the ground in Austin South by Southwest Interactive, the annual gathering of tech enthusiasts, entrepreneurs, investors and leaders in the industry.

The weeklong event is crammed with panels, parties, talks, the introduction of new apps and services, demos of said services, networking and the occasional breakfast taco.

Tech companies will be looking for support among tech-savvy festival attendees in the hopes of bubbling up above the noise of the hundreds of companies vying for attention. For a young business, the stakes can be high. South by Southwest, which attracts early technology adopters, has earned a reputation for helping propel companies like Foursquare and Twitter out of relative obscurity. And this year, the numbers of attendees is expected to swell to nearly 20,000. Last year, around 14,000 people attended.

Among the companies looking to create some buzz are Uber, which makes a mobile application that lets people avoid taxi shortages by requesting a car service to give them a ride.; it has seeded this city’s downtown with special pedicabs to lug tired pedestrians around. GroupMe, one of the mobile messaging applications I wrote about on Friday, says it will be handing out grilled cheese sandwiches with the company’s logo toasted into the bread. Breakfast, a digital agency in New York, has rigged several photo booths that will print physical photos snapped with the popular iPhone app Instagram. Eightbit.me, a service that creates cute cartoon avatars for members, has hidden several hard drives shaped like vintage Nintendo game cartridges, around downtown. To win one, users must check into various locations in the city to find and unlock the prize.

Even Apple, which rarely appears at any major technology conferences, is rumored to have a pop-up shop somewhere on the conference grounds, most likely to coincide with the release of the iPad 2, which went on sale Friday.”

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Article from SFGate.

“It’s been a big couple of weeks in mobile. Verizon Wireless finally got the iPhone. Hewlett-Packard unveiled the first fruits of its Palm purchase last year. Nokia, the world’s biggest maker of handsets, abandoned its once-dominant Symbian mobile software system and demoted itself to a kind of glorified contract manufacturer of Microsoft-powered devices.

The struggle for mobile dominance has entered a new phase. Why would Nokia throw out Symbian, with its 37 percent market share, in favor of software with less than one-seventh of that? Because recently hired Chief Executive Officer Stephen Elop is convinced that Microsoft has better odds of going up against the four other mobile powers – Apple, Google, Research In Motion, and HP – and making its new Windows Phone 7 software a center of gravity for the world’s programmers, manufacturers, and consumers.

“The game has changed from a battle of devices to a war of ecosystems,” Elop told investors at a recent London news conference.

Actually, it’s the same game that created the most valuable franchises in tech history, from IBM to Microsoft to Facebook. All successfully established themselves as “platforms,” in which countless entrepreneurs and programmers developed products and applications that gave value to customers and profitability to shareholders – sucking oxygen away from rivals all the while.

Platform leaders

In the 1960s, IBM trounced Sperry and other mainframe manufacturers by creating a soup-to-nuts stack of hardware, software and services.

In PCs, Microsoft erased Apple’s early lead by signing up hardwaremakers to create cheap machines, and software companies to develop Windows versions of everything from word processors to Tetris.

Facebook vanquished social networks such as MySpace by repositioning itself as a platform – a decision that led to the creation of gamemaker Zynga and other app companies that keep Facebook’s 500 million users hanging around.

What’s different this time is scale.

“Mobile is the biggest platform war ever,” said Bill Whyman, an analyst with International Strategy & Investment. More smart phones were sold than PCs in the fourth quarter, and sales should reach $120 billion this year. That doesn’t count billions more in mobile services, ads, and e-commerce.

This war will probably last for some time, too. Unlike with PCs, where the unquestioned victor – Microsoft – quickly emerged and enjoyed years of near monopoly, no one has a divine right to dominance in mobile. Microsoft crushed its competition by forcing people to make a choice. There were far more software applications for PCs, and most didn’t work on Macs. The more Microsoft-powered machines out there, the more people wrote software for them, the more people bought them, and the bigger the whole system became. Economists have a name for that phenomenon: “network effects.”

Appealing products

All cell phones can talk to each other and handle the same websites and e-mail systems, so winning means making products that function more effectively and appealingly. That sums up Apple’s success.

Steve Jobs figured out long ago that when people spend their own money, they’ll pay for something a lot nicer than the unsexy gear the cheapskates in corporate procurement choose. While others competed on price, Apple focused on making its products reliable and easy to use. Once customers buy an iPhone and start investing in iTunes songs and apps, they tend to stick with the system and keep buying – even though there’s no proprietary lock on the proverbial door.

Apple’s huge sales volume makes carriers and suppliers more likely to agree to its terms. The software that powers everything Apple makes – all variations of the Mac operating system OS X – is as intuitive to developers as Angry Birds is to app shoppers.

The result is economic leverage of staggering power. To create a blockbuster, Apple doesn’t need to spend billions on a start-from-scratch moon-shot of a development project. It just needs to tweak a previous hit.

Take the iPad, which is in many ways a large iPod touch. Apple won’t say how much the iPad cost to develop. Consider these numbers, though: In the year that ended Sept. 30, during which Apple introduced the iPad and the iPhone 4, the company spent $1.8 billion on research and development. Over the same period, Apple’s revenue increased by $22.3 billion. Nokia spent three times as much as Apple on R&D – $5.86 billion – and increased revenue by just $1.5 billion. No wonder that Apple, whose share of total global mobile-phone sales is only 4.2 percent, gets more than half the profit generated by the industry, according to research firm Asymco.

Fast-growing Android

Even Google, Apple’s mightiest rival, got only a $5 billion increase in sales on its $3.4 billion R&D budget. It does have plenty to show for its efforts, though: Its Android platform is growing at a blistering pace. In the fourth quarter, according to research firm Canalys, twice as many Android devices shipped as iPhones.

“Google is being far more aggressive in building its platform than Microsoft ever was,” says Bill Gurley, a partner at Benchmark Capital.

Barring big surprises, the other contenders – RIM, HP, and Microsoft – are in for a slog: too dependent on mobile devices to give up, yet lacking the tools to make much progress. All lost market share in 2010 and have far fewer apps available for their devices.”

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Article from GigaOm.

“A few years ago, Jeff Jarvis, a good friend of mine, published a book called What Would Google Do? When he wrote that book, Google had an aura of invincibility. Fast forward to today: Thanks to Facebook, it doesn’t seem so invincible. The new social web has passed it by. So, the question today is: What should Google do?

I’ve always maintained Google has to play to its strengths – that is, tap into its DNA of being an engineering-driven culture that can leverage its immense infrastructure. It also needs to leverage its existing assets even more, instead of chasing rainbows. In other words, it needs to look at Android and see if it can build a layer of services that get to the very essence of social experience: communication.

However, instead of getting bogged down by the old-fashioned notion of communication – phone calls, emails, instant messages and text messages – it needs to think about interactions. In other words, Google needs to think of a world beyond Google Talk, Google Chat and Google Voice.

To me, interactions are synchronous, are highly personal, are location-aware and allow the sharing of experiences, whether it’s photographs, video streams or simply smiley faces. Interactions are supposed to mimic the feeling of actually being there. Interactions are about enmeshing the virtual with the physical.

In a post earlier, I outlined that with the introduction of its unified Inbox, the constantly changing Facebook had shifted its core value proposition from being a plain vanilla social network to a communication company. Here’s a relevant bit from that post.

Facebook imagined email only as a subset of what is in reality communication. SMS, Chat, Facebook messages, status updates and email is how Zuckerberg sees the world. With the address book under its control, Facebook is now looking to become the “interaction hub” of our post-broadband, always-on lives. Having trained nearly 350 million people to use its stream-based, simple inbox, Facebook has reinvented the “communication” experience. …. Facebook as a service is amazingly effective when it focuses all its attention on what is the second order of friends – people you would like to stay in touch with, but just don’t have enough bandwidth (time) to stay in touch with. Those who matter to you the most are infinitely intimate, and as a result you communicate with them via SMS, IM Chat and voice. So far, this intimate communication has eluded Facebook. The launch of the new social inbox is a first step by Facebook to get a grip on this real world intimacy.

In 2007, I had argued that the real social network in our lives was the address book on our mobile phone. Google has access to real-world intimacy – the mobile phone address book – thanks to Android OS. All it has to do is use that as a lever to facilitate interactions.

In order to understand Google’s interaction-driven social future, one doesn’t have to look far: no further than Apple’s iTunes app store.  As you know, I have switched from BlackBerry to the iPhone, and as a result, I’ve been looking for a BBM replacement, and have been playing around with a score of apps.

In the process of searching for this app, I came across an app called Beluga, which essentially allows me to connect to my friends. And then I can create Pods (essentially Groups) with one or more of my friends. Sort of like what I did on BBM. Except, there’s more to Beluga.

It taps into my social graph (Facebook); it leverages my location, and it allows me to share photos as part of the messaging process. It’s a beautifully designed application that’s very inviting – and the experience is less communication, more interaction.

What’s beautiful about Beluga is it’s as personal and private as you want it to be. It’s just ironic that Beluga was co-founded by three Google engineers — Ben Davenport, Lucy Zhang and Jonathan Perlow — and if you see their bios, it is hardly a surprise that they ended up with an interaction-centric product like Beluga.

Yesterday, I was introduced to a new app called Yobongo, and it comes from a San Francisco startup co-founded by alumni of Justin.tv. It’s a good-looking application that leverages your location, allowing you to find people around you and to chat with them. It is at the extreme opposite of Beluga: It’s open, and you can chat with anyone. It is very real-time in nature. Of course, there are other apps like Yobongo: MessageParty, for example!

What’s common between these two apps is their ability for synchronous messaging. This messaging can, in turn, become the under-pinning of what I earlier called interactions.

Ability to interact on an ongoing basis anywhere, any time and sharing everything, from moments to emotions – is what social is all about. From my vantage point, this is what Google should focus on. If not — you know it very well — Facebook will.”

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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 SFGate.

“Tech jobs are coming back after hitting bottom early this year, according to economy tracker Moody’s Analytics. The U.S. economy has added 47,000 technology jobs so far this year amid resurgent demand for tech products in Asia and Latin America.

That represents 15 percent growth in tech jobs, compared with an 11 percent jobs growth in the economy overall since the beginning of the year, according to Moody’s. Since a peak at the end of 2007, the tech industry had lost 307,000 jobs nationally in the economic downturn.

“It seems like this industry is embarking on a new growth spurt,” says Sophia Koropeckyj, a managing director for Moody’s Analytics. “Tech jobs seem to be accelerating.”

Asia and Latin America’s demand for tech products has resulted in new hiring and is one contributor to the recovery, Koropeckyj says. After slumping in the first half of 2009, global PC shipments – bread and butter of U.S. companies Hewlett-Packard, Dell and Apple – should rise 14.3 percent this year, to 352 million units, according to consultant Gartner.

Billions in government stimulus funds have spurred recent purchases by agencies and businesses, such as those building out broadband networks. Corporate and government information technology spending should rise 8.1 percent this year, to $758 billion, according to consultant Forrester Research. Already, networking gear maker Cisco Systems saw sales for its fiscal first quarter ended Oct. 30 rise 19 percent from a year earlier, to $10.75 billion.

“The first wave of growth is going through,” says Andrew Bartels, a vice-president at Forrester.

But the recovery may be uneven: During Cisco’s quarterly earnings call in November, Chief Executive Officer John Chambers mentioned several challenges the company faces, such as slower-than-expected pickup in orders from government agencies in the United States and Japan.

Recovery among Detroit’s automakers, helped by a government bailout, is driving a resurrection of related tech-sector jobs. Last year, Detroit experienced a 15 percent drop in high-tech jobs from a year earlier, according to a new study from technology industry association TechAmerica Foundation, which studied jobs and wages data for the 60 U.S. cities with the highest proportions of tech jobs.

Detroit’s was the worst drop in high-tech jobs among any of the 60 cities last year. But in a Dec. 1 blog, carmaker Chrysler announced it will hire 1,000 more engineers and other high-tech workers by the end of the first quarter of 2011. The company has hired 5,000 workers overall since emerging from bankruptcy in June 2009. In November, rival General Motors said it will hire 1,000 engineers and researchers in Michigan in the coming months to help expand its lineup of electric cars, whose sales are expected to climb.

In some technology industries, salaries are starting to inch back up again.

Information, media, and telecommunications professionals have seen their wages rally slightly this year, according to survey data from PayScale, which tracks global compensation. In 2009, high-tech salaries nationwide slipped 0.8 percent, which was less than the decline in the private sector overall, where the average salary dropped 1.4 percent, according to the TechAmerica report.

“The gap has widened. It’s significant,” says Josh James, vice president of research and industry analysis at TechAmerica. “Especially in hard times, companies are trying to cut costs, and one way to do that is to implement technology solutions.””

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