Archive for March 10th, 2008

Last October GridNetworks announced that it had raised $9.5M in Series A funding for its GridCasting content delivery network (CDN). For whatever reason, though, Cisco decided to wait until today to reveal that it was a strategic investor in that round.

GridNetworks wants to provide the underlying technology that streams high quality television content over the internet and into homes. Its architecture is part traditional CDN, part peer-to-peer network. In simple terms, the content delivered by GridCasting is initially buffered by a handful of data centers. Then after about 10-30 seconds of video playback, the data centers hand over delivery responsibilities to about 16 peers (other consumers of online video content who have cached it already and can serve as mini data centers themselves).

This method isn’t entirely unique - Vuze uses the Azureus BitTorrent protocol to do something very similar. And it’s not entirely clear whether the P2P method of distributing high definition content really provides much of an advantage over centralized streaming methods. Other non-P2P streaming companies like BitGravity would certainly argue that the cost savings and performance increases from P2P are not substantial (and the legal situation vis-a-vis net neutrality is still up in the air anyhow).

However, it’s notable that Cisco has taken an interest in this hybrid CDN technology. Their investment and ongoing relationship should give GridNetworks the opportunity to integrate its so-called “connector” software into non-computer devices like Linksys entertainment centers. The connector software is necessary for the streaming and P2P to work, whether with a computer or other device (currently only Windows is supported, with Mac support coming soon).

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Source: TechCrunch
Original Article: http://feeds.feedburner.com/~r/Techcrunch/~3/249274476/

It’s Official: Hulu Opens Up on Wednesday

Written by on Monday, March 10th, 2008 in Ajax News.

No one can say they didn’t see this one coming: Hulu will finally open up to the public this week, on Wednesday to be precise and yes, it’s official.

The company’s been in private beta for 4.5 months. If you haven’t managed to snag one of the many invitations floating around, you’re probably thinking “big deal”. But as I expressed in my initial review, Hulu’s a remarkable web service despite its numerous shortcomings (no downloads, a limited collection of shows and movies, and no international access to name a few).

Hulu is also announcing the addition of new content from Warner Brothers Television Group, Lionsgate, NBA, NHL and twenty other content providers (including the Onion News Network!).

Information provided by CrunchBase

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Source: TechCrunch
Original Article: http://feeds.feedburner.com/~r/Techcrunch/~3/249274477/

Google Focused Linux PC’s Fail At Wal-Mart

Written by on Monday, March 10th, 2008 in Ajax News.

gos.jpgPC’s running a Google focused version of Linux have been dropped from sale in Wal-Mart stores.

The Everex gPC launched in October with a $199 price tag and an operating system that put Google front and center. The gOS Linux Distribution offered direct links into Google services such as Gmail and Google Docs, as well as links to Wikipedia and Facebook. We asked in November whether gOS is the direction computers were heading, where the Operating System is nothing more than a conduit to the cloud, with minimal local applications.

According to a Wal-Mart spokesman quoted on AP, “This really wasn’t what our customers were looking for.” The gPC will still be available via Wal-mart.com, with Everex spinning the decision as “significantly more effective” than selling the gPC in stores.

Some will argue that the failure of gPC’s to take off bides poorly for both Linux distros and cloud focused offerings. The decision really just shows that low-spec cheap junk with a Google focused operating system is no more appealing to consumers than low-spec cheap junk with Windows, even when the price of the Linux option is significantly less. The sales success of the Asus EeePC (with its focus on the cloud) demonstrates that buyers are willing to purchase a Linux powered cloud focused PC when the computer it comes with provides decent or innovative tech and is low priced.

Information provided by CrunchBase

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Source: TechCrunch
Original Article: http://feeds.feedburner.com/~r/Techcrunch/~3/249265467/

Mark Zuckerberg/ Sarah Lacy Interview From SXSW

Written by on Monday, March 10th, 2008 in Ajax News.

There’s been no shortage of discussion over the last 24 hours on Sarah Lacey’s on stage interview with Mark Zuckerberg, most of it centered on Lacy’s interview style. Ultimately you can judge for yourself by watching the video above.

(via AllFacebook)

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Source: TechCrunch
Original Article: http://feeds.feedburner.com/~r/Techcrunch/~3/249218176/

Spielberg’s Ghost Venture Backed By Terry Semel

Written by on Monday, March 10th, 2008 in Ajax News.

Update to our post last week about Steven Spielberg’s new Ghost and UFO based social network: We still don’t have the name of it, but it is being referred to as “Ghosts” to outsiders they are pitching it to (I still prefer “Ghost Town”). They will be putting a big focus on original video content (think Twighlight Zone-type stuff) with a permanent host. We’ve heard of a couple of people they’ve approached for the job.

And most interesting - the project is being created in partnership with the secretive Windsor Media, Terry Semel’s investment firm. Windsor was created by Semel before he went to Yahoo. It was put on hold during his tenure there, but fired up again after his departure last year.

Semel and Spielberg are longtime friends, and so it’s natural that the two would be working together on the project. But the big question is, when will this launch? Stay tuned for that, we’re still digging.

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Source: TechCrunch
Original Article: http://feeds.feedburner.com/~r/Techcrunch/~3/249126844/

News Corp Gives Up The Fight For Yahoo

Written by on Monday, March 10th, 2008 in Ajax News.

Rupert Murdoch is reported to have said that News Corp won’t fight Microsoft for Yahoo.

Talking to investors at the annual Bear Stearns Media Conference, Murchdoch said that “We’re not going to get into a fight with Microsoft, which has a lot more money than us.” Murdoch also gave support to Google as FIM’s ad provider: “We’re very happy to be in the Google camp. They sell our search advertising and pay us well for it.”

This comes in stark contrast to what we’ve heard behind the scenes - that News Corp submitted a formal big to Yahoo just a little over a week ago, and have been openly claiming to be negotiating with Microsoft to take over their Google advertising deal.

With News Corp not wanting to get in the way, Yahoo’s last chance of heading off Microsoft’s offer now rests with Time Warner. Murdoch did not rule out another type of deal with Yahoo, but given Microsoft’s increasingly hostile takeover offer, the chances of News Corp being involved in any deal with Yahoo given these comments looks slim.

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Source: TechCrunch
Original Article: http://feeds.feedburner.com/~r/Techcrunch/~3/249126842/

sched-logo.pngKeeping up with all the panels, speakers, and parties at a big conference like South by Southwest can be overwhelming. But attendees to this year’s SXSW have a clean, Ajax app called Sched.org to help them out. Coded in a 14-hour marathon session by two guys in their twenties, Chirag Mehta and Taylor McKnight, Sched.org lays out each event in easy-to-read, color-coded bars. (Orange is for a panel, pink is for a party).

Mouse over the title of a panel, and you get all the necessary details in a pop-up window—location, room number, summary, panelists, links, and tags. Sign in as a member, and indicate which events (official and unofficial) you are planning to attend. Then click to see which ones are the most popular. It is like Digg for events, except people vote with their feet.

To give you a sense of how early-adopter Sched.org is, the most popular event with 319 members is “South by Northwest 3rd Annual Geek Fest Party at SXSW,” followed by the “Vampire Weekend,” and a bunch of free-booze parties paid for by the conference sponsors. The R.E.M. concert on Thursday is No. 6 (maybe all the Sched.orgers would rather wait for the new album to be streamed on iLike than actually see the band live). And it is not just R.E.M. Yo La Tengo, My Morning Jacket, and Spoon are also less popular than the Geek Fest.

One of the Wired blogs is going gaga over Sched.org, declaring it to be this year’s Twitter. Last year, everyone was using Twitter to figure out which parties to go to. But you know what? I think they still are. More people learned about the Mark Zuckerberg interview fiasco at SXSW through Twitter than Shed.org. And while mining the chatter at a big conference is a great way to use Twitter, it is a much bigger communications tool. (If you are going to be technical about it, Kyte is more Twitter-like than Sched.org). For Sched.org, keeping track of the goings-on at an event is the main thing it is designed for. In fact, it does that much better than Twitter. I just don’t see it going beyond that.

And it doesn’t need to. Sched.org does one thing really well—help you visualize and manage complex event schedules. Hyperbole aside, it is worth a look.

sched-screen-1-small.png

sched-screen-2-small.png

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Source: TechCrunch
Original Article: http://feeds.feedburner.com/~r/Techcrunch/~3/249115115/

Little Known Hacker News Is My First Read Every Morning

Written by on Monday, March 10th, 2008 in Ajax News.

Hacker News is a Digg/Reddit-like site that I am visiting more and more often. It’s my first stop in the morning, and I check it out a few times during the day as well.

Why? Because it’s focused mostly on startup and hacking news, which is what we cover. It’s one of the best places to find information on startups we haven’t heard about yet. And, better, the community is jerk-free. Comments are mostly helpful, thoughtful and interesting.

Like Digg and Reddit, users submit stories to the site, and others can comment and vote on them. But Hacker News is also a forum of sorts, where users can simply post questions for others to answer - see this one asking for advice on creating a demo video for a new startup. Popular stories and questions move to the home page over time.

Hacker News used to be called Startup News and was launched in February 2007 by Y Combinator. They say “the most important goal of news.ycombinator was to create a place where founders and would-be founders can meet and talk.”

Hopefully as the site continues to attract new users, the magic won’t be lost.

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Source: TechCrunch
Original Article: http://feeds.feedburner.com/~r/Techcrunch/~3/249110428/

canoe.jpgWhenever cable companies feel threatened, they form a joint venture. The latest is called Project Canoe, an effort by all six major cable companies in the U.S. to deliver targeted TV ads to viewers through their set-top boxes. The NYT reports:

Collectively, the cable companies will initially put about $150 million behind the effort in order to build a national service that can sell targeted advertising across all six cable systems.

The cable companies may control the set-top boxes, but they only collectively control about $5 billion of the $70 billion spent each year on TV ads. Most of those are local spots. With better ad targeting through Project Canoe the cable companies hope to triple their take to $15 billion. But that may be wishful thinking.

Of course, all of this is a reaction to Google, which already is testing its own TV ads on EchoStar’s Dish Network (no satellite companies are part of Project Canoe). Just last week, some Google TV Ad beta testers were able to start buying TV ads through AdWords as part of their regular advertising campaigns. In other words, they can buy search ads on Google, contextual online ads across the Web, and TV ads on Dish all through the same Google interface.

Through its partnership with EchoStar, Google’s software is on millions of set-top boxes, anonymously monitoring everything viewers do while watching TV. Advertisers in the beta can bid on ad slots by geography, demographics, day, time, and network. Google gives them data on how many people saw their TV commercials, how long they watched the ads, and at what point they lost most of their viewers. These are similar to the same sort of detailed reports advertisers can get on the Web. As I suggested last November:

google-tv-ads.png

Any new video ad unit that starts to gain traction on the Web could be ported over to regular TVs—clickable overlays, contextual video ads, unobtrusive sponsorship icons. Why not even let viewers program their own ads with a laundry list of categories and companies to choose from? They might actually watch them.

When it comes to advertising, Google is not shy about stating its ambitions. “We are confident we are going to revive the television advertising industry,” says [Google TV’s Vincent] Dureau, “by bringing new advertising to it.” Already, Google is trying to make TV ads more relevant, easier to target, and cheaper to deploy. As a result, Google thinks it can attract more ad dollars from smaller businesses that may not have been advertising on TV before.

The fact that the cable companies are creating their own advertising tracking software does not bode well for Google’s TV ad project ever making it beyond satellite-TV networks. Why should they hand over to Google a cut of their ad revenues? But giving Google the high hat will just make it more likely that Google will go ahead with its own secret set-top box project. An Android-like open-source set-top box could end up being a lot more disruptive to the cable companies’ business than simply letting Google in the front door.

AdWords already has a strong presence among the very same small- and medium-sized businesses the cable companies are going after. The big opportunity here is bringing more local ads to TV because one of the most effective ways to target TV ads is (still) by geography. Just ask Spot Runner, which already lets small, local businesses buy TV ads over the Web and is planning on combining that with online ad buys as well.

The cable companies have an advantage in that they own the set-top boxes required to make ad targeting work on TVs. They are now paddling fast to catch up. But there are also some mighty currents working against them. This is not just about putting software on set-top boxes, it is about creating the right software that can make TV ads more relevant. Who is more likely to do that: Google or a multi-headed joint venture? Then the cable companies will have to create their own ad network as well, which will compete with the TV networks their business relies on. They’d better put that canoe in the water and start paddling fast.

(Photo via Jeff Kubina).

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Source: TechCrunch
Original Article: http://feeds.feedburner.com/~r/Techcrunch/~3/249027343/

Why we disagree with Don Norman

Written by on Monday, March 10th, 2008 in Ajax News.

Don Norman, an author, professor, and partner at the Nielsen Norman Group, read the Wired article about us and wrote a piece asking, “Why is 37signals so arrogant?”

Hansson said: “I’m not designing… for other people.” I think that simple phrase speaks volumes. Thank goodness most companies recognize that this attitude is deadly.

If 37signals wants to follow this attitude, I think that is fine. I’m pleased that they are enjoying themselves and that their simple applications do indeed meet many people’s simple needs. But I would prefer someone who designed software for other people. If you want a hobby, fine, indulge yourself.

First off, let me say I respect Norman. His book The Design of Everyday Things is a classic. I’ve always admired him and think he’s spot on most of the time.

That said, I think he’s looking at this the wrong way. In fact, most of what he says about us in his piece misses the point.

Why we design for ourselves first

He argues that because we design for ourselves first, we’re selfish, arrogant, and have a disdain for customers.

That’s not true. Designing for ourselves first yields better initial results because it lets us design what we know. It lets us assess quality quickly and directly, instead of by proxy. And it lets us fall in love with our products and feel passionate about what we make. There’s simply no substitute for that.

We’re like chefs. We make food that we think tastes good and that we believe in. We make it for customers who have the same sensibilities that we do. It might not be for everyone. That’s ok. But for people who think the way we do, and appreciate the things we appreciate, it’s perfect.

And if enough customers tell us our food is too salty or too hot, we may adjust the salt and the heat. But if some customers tell us to add bananas to our lasagna, we’re not going to make them happy at the expense of ruining the dish for everyone else. That doesn’t make us selfish. We’re just looking out for the greater good.

We’re not the only ones

Apple agrees with this philosphy too. Here’s Steve Jobs’ perspective on “designing for you” :

We figure out what we want. And I think we’re pretty good at having the right discipline to think through whether a lot of other people are going to want it, too. That’s what we get paid to do. (complete interview)

We do exactly what Apple does. We figure out what we want and whether other people will want it too.

This method works because our problems are common problems. Solutions to our own problems are solutions to other people’s problems too. By building products we want to use, we’re also building products that millions of other small businesses want to use. Not all businesses, not all customers, not everyone, but a healthy, sustainable, growing, and profitable segment of the market.

Simple doesn’t mean less important

Norman also says, “[37signals’] simple applications do indeed meet many people’s simple needs.” But he blows right past that idea as if solving simple needs is only worthy of hobby.

We’re proud that we build simple software that solves people’s simple problems. We say this right at the top of our home page: “Over 1 million people use our web-based applications to get things done the simple way.” This is exactly what our customers love about our products. Read through these answers to the “What do you like most about Basecamp?” question. You’ll spot the words simple, easy, and intuitive about a bazillion times.

Just because people’s problems are simple doesn’t make them any less important. In fact, simple problems are a lot more common than bigger, more complex ones. Their recurrence is often what makes them so frustrating and why people desire an easy, hassle-free solution.

A sound strategy for targeting nonconsumption

Plus, we’re mainly targeting people who have never used products like ours before. These people especially crave simple solutions. They were nonconsumers before because the alternatives had too many features, were too confusing, and were too expensive. We’re addressing a hungry market that’s been ignored for way too long.

For more insight into competing against nonconsumption, check out Competing Against Non-Consumption: A Conversation with Clay Christensen or chapter two of The Innovator’s Solution.

No one represents everyone

Norman may not be one of our customers because our products don’t solve his problems. (We’re not sure since he’s never sent us a feature request or suggestion.) That’s fine—we’re not here to solve everyone’s problems any more than Norman is here to write books that interest every reader.

But to infer that not meeting his needs means we’re not meeting other people’s needs is a stretch. And to call 37signals a “hobby” reveals a shallow understanding of what’s really happening. 37signals is a business in every definition of the word. A healthy, profitable, debt-free one at that.

Curating feature requests

Also, there may be a misunderstanding of what we mean when we say we design for ourselves first. This does not mean we just ignore feature requests. We’ll say it yet again: Just about everything we add to our product these days starts as a customer request.

We invite and encourage requests in our forums and in our customer satisfaction surveys. We get thousands of requests a year via email too. We learn a lot about how we can improve our products from our customers.

But ultimately we add just a tiny fraction of these requests to our products. It doesn’t mean we don’t listen, it means we pay attention to the the dirty secret of software design: It’s pretty easy to mess up a good thing by overdoing it. Saying yes too often doesn’t benefit anybody.

We listen to customers but we also listen to our own guts and hearts. We believe great companies don’t blindly follow customers, they blaze a path for them.

And here’s another truth you discover when you deal with a massive customer base: There’s more contradiction than there is agreement. One person wants this, one person wants that, another person says the first person is crazy, another one says if you do what the second person said then they’ll cancel their account.

That’s why it’s our job to be editors. To be software feature curators. To pick out the ideas that will benefit the most people and disappoint the least people. And sometimes that means doing nothing at all.

Which brings be me another choice quote by Jobs:

Innovation comes… from saying no to 1,000 things to make sure we don’t get on the wrong track or try to do too much. We’re always thinking about new markets we could enter, but it’s only by saying no that you can concentrate on the things that are really important.

The Southwest Airlines parallel

Curiously, Norman suggests using Southwest Airlines as a model. He then proceeds to detail how Southwest refuses customer requests because it understands that customers actually have more critical needs: low fares and ontime service.

If Norman actually understood what we do, he would see we actually do almost the same thing as Southwest, but in the software realm: Southwest listens to their customers and then innovates, creates, and often says “no” on behalf of their customers. It’s Southwest’s job to be the editor. Southwest decides what’s right for their company, their employees, and their customers. And it does this based on a variety of inputs—one of them being customer feedback, another one of them being maintaining the spirit and core values of Southwest. Marketing, business rules, shareholder value, opportunity cost, resources, among other things, round out the wide range of things that must be considered when people make requests.

This is exactly what we do. We listen, we internalize, we consider, and we act. Sometimes that means not acting on a request. Sometimes it means taking a request, unraveling the true intent, and building a solution that wasn’t originally imagined. Sometimes we do exactly what people ask for because it makes sense. And sometimes we listen to ourselves instead—if we don’t think a popular request is true to the product we won’t add it. I don’t think Professor Norman would be willing to teach material he doesn’t believe in. If he did, he’d be doing his audience a disservice.

We love our customers

Also, we don’t show disdain for our customers, as Norman suggests. We love our customers and the overwhelming majority love us back. It’s not a fluke that we’ve been in business for 9 years. It’s not a fluke that over 2,000,000 people have Basecamp accounts. It’s not a fluke that almost all our business is generated through word of mouth referrals. It’s not a fluke that 94% of our customers would recommend Basecamp to a colleague or friend (96% said they’d recommend Backpack too). It’s not a fluke that we’ve doubled our revenues and net income every year since 2004 (our revenues were “multimillion” in 2007). These things happen and continue to happen for precisely one reason: We keep our customers happy.

Don Norman’s process

Not that it’d ever happen, but it’d be interesting to see Norman try our approach for his next book. He could invite his customers (previous book buyers, in his case) to post their chapter and topic requests in a public forum. Then he could run some customer surveys.

He’d get a list of a few thousand possible topics and chapters. Would he include every single one of them in the book? I doubt it. I think his response would go something like this: “Well, I can’t write everything they want me to write. I don’t even agree with some of it. I don’t have time to write 1000 chapters. And a 5000 page book wouldn’t be usable, affordable, or practical.”

Then he would probably go on to say, “We did look through all the requests and did get some good ideas. We edited the possible list of topics down to what we thought were the best ones. And then we edited that list down even further. And then we wrote the book. And then we edited what we wrote even further. And then we made judgement calls about what should stay an what should go. And it ended up being a much better book.”

Editing doesn’t mean you don’t care. In fact, it shows that you really do care. Editors show great respect for the audience by being a trusted filter. Dumping the kitchen sink on people doesn’t do anyone any favors.

We disagree

The reason why our products don’t meet Norman’s needs is because we disagree with him on what to put in our software. That’s fine. We don’t think our way is the only way. There are plenty of alternatives in the market. People should use what works best for them. Hopefully, Norman isn’t truly shortsighted enough to think that any product that takes a different point of view from his own is “bound to fail.” If so, who’s the arrogant one then?

Source: Signal vs. Noise
Original Article: http://www.37signals.com/svn/posts/904-why-we-disagree-with-don-norman



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