Tuesday, September 20, 2011

Major Google+ Updates: Hangouts Go Mobile

Lots of people think videoconferencing will be an important future revenue stream. Others think widespread use of Skype video sessions and now Google+ "Hangouts" is displacing much of that potential demand.

Alos, Google Hangouts is now available on Android phones today, as an update to Google+. Users can also broadcast Hangouts sessions to the world using a new "On Air" feature, collaborate with others during Hangouts by sharing your screen and working together on Google Docs or Sketchpad.

Google is also renaming its Huddles group chat feature on mobile devices to Messenger

Google+ Exits Private Beta: Anyone Can Join Now

google_plus_open_networkGoogle+ has exited private beta, and now is open for anyone to join. Go to google.com/+ to become a member. 

Wireless backhaul will help triple Ethernet spending by 2016

Insight Research Ethernet revenues 2009-2016By 2016, U.S. enterprises and consumers will spend over $44 billion on carrier Ethernet services, Insight Research now forecasts, up from $4 billion in 2011.

Virtual Currency in Buenos Aires

Javier Goglino is an engineer. He created a bartering system, christened “Proyecto Mutuo,”or“Mutual Project,” in his community of Martínez, a Buenos Aires suburb.

Mutual Project is a system in which members can exchange goods and services instead of money. Each member of the community has the option to offer a service or goods in exchange for “merits,” which later help them to acquire new goods and services. The merits register virtually in the participants’ accounts.


Mutual Project already has 79 members, from translators and web designers to musicians and plumbers. It fulfills an average of 14 transactions per month, with peaks of up to 30. Members exchange about 1,400 merits per month, with peaks of up to 3,000 merits.

Businesses Struggle to Keep Up with Change

Most business executives these days know they operate in volatile, fast-moving conditions and also know they are struggling to keep up with the pace of change. In fact, the volatile economic environment is seen as a bigger challenge than competition.

Dish to Unveil Blockbuster Streaming Service

Dish Network Corp. will announce pricing next week for its Blockbuster streaming-movie service, which will compete with Netflix. Bloomberg reports.

Though the service will be offered initially to Dish subscribers, non-Dish customers who only want Blockbuster’s offering will eventually be able to do so. Dish to Unveil Blockbuster Streaming Prices

The number of people watching video on the Internet is expected to nearly double by 2015 to 1.5 billion while the amount of video they watch on the Web is also seen doubling to more than an hour a day, according to Cisco Systems. 


Not all that video will be of the subscription sort, of course.  Cisco forecast







Google Gravity...Just for Fun

Just for fun, go to google.com. Type "Google gravity" into the search bar. Watch. Then enter a search term in the search bar. Watch. Do it again. Throw stuff around. Then go back to work.




Just how fast is AT&T's new 4G LTE network?

Earlier this year the folks at PC magazine performed a speed test in 21 major cities to see who has the fastest network. Verizon’s 4G LTE pulled in an average of 9.46 megabits per second down (with peaks hitting over 35 megabits per second!) and 1.35 megabits per second up. Keep in mind all such tests depend on how many users are sharing the network. A network with few users will be quite fast. A "loaded" network will provide a different experience.

AT&T’s 4G LTE network has been up for less than a week, so there aren’t that many people using it. Research firm Signals Research gobbled up nearly 90 GB of data over three days in Houston, Texas.

“The average downlink Physical Layer throughput was 23.6 Mbps with a peak rate of 61.1 Mbps. Both results meaningfully exceeded our expectations. The data rate also exceeded 40M bps for 8.6 percent of the time and 21 Mbps–the theoretical peak data rate of the operator’s HSPA+ network–for 38.2 percent of the time. Most importantly, the data rate was greater than 5 Mbps for 95 percent of the time.”

Don't count on that lasting. As more users get on the network, typical speeds will drop, and quite a lot.

Is The Real U.S. Debt $211 Trillion?

What if U.S. debt isn't $14.3 trillion, but bigger by a factor of 14?

Bloomberg BusinessWeek, in "Why The Current Debt Crisis is Even Worse Than You Think," argues the true measure of U.S. debt ought to be the so-called fiscal gap. That's the present value of the difference between the nation's total revenues and its total obligations. That comes to $211 trillion.

Facebook Dominant Social Network for SMBs

Amount Spent on Social Media Marketing According to US SMB Decision-Makers, Aug 2011 (% of respondents)Among the 44 percent of SMBs using social media, more than half (59 percent) spend less than $100 on social media marketing, however. As we often say, social media in some ways does not take lots of money, but it can take lots of time.
Marketing Tactics Used by US SMB Decision-Makers, Aug 2011 (% of respondents)Where it comes to online marketing, small and medium-sized businesses have their work cut out for them.

Time- and money-strapped, SMB marketers often receive light budgets and minimal staff to help them promote their business and generate leads across a variety of formats ranging from social media to search marketing.

As a practical matter, according to Zoomerang, the first priorities are the company website and email marketing.

Social media, however, is gaining in momentum: 44 percent
of U.S. SMB decision-makers have used or are using social media in 2010, up 10 percentage points from 2010.

SMBs are sticking predominantly to the three main social networking sites: Facebook, Twitter and LinkedIn. 


However, SMBs were twice as likely to turn to Facebook (86%) as they were Twitter (33%) or LinkedIn (41%).

Google Faces Antitrust Scrutiny, Will Apple Be Next?

AT&T isn't the only major player facing a direct limitation on its ability to grow much bigger in its core markets. Google might be next. Google CEO Eric Schmidt will face a U.S. Senate hearing on Sept. 21, 2011 looking at whether the company is now so large and dominant that it now constitutes a monopoly.

The primary issue in this hearing is whether Google gives preference to its own websites or products in search results. History suggests Google might be a turning point of sorts.

In March 1998, Microsoft CEO Bill Gates faced a similar hearing. Two months later Microsoft was served with an antitrust suit, the effects of which only fully ended in 2010, some would argue. That's more than a decade of handcuffs.

A rational observer with a sense of history might wonder when it will be Apple's turn to meet the regulatory buzzsaw. Sooner or later, big and powerful technology and application companies run into the reality of government regulation. Telcos just are more used to it.

Google Launches Wallet on Sprint

Google has released the first version of the Google Wallet app to Sprint. That means the Google Wallet app will be pushed to all Sprint Nexus S 4G phones through an over-the-air update. The app will be shown as“Wallet.”

Monday, September 19, 2011

Netflix Separates DVD, Streaming Businesses

It is hard to know for sure, but it is possible the recent bankruptcy of Borders bookstore might have played some role in convincing Netflix CEO Reed Hastings to move up the speed of the Netflix transition from DVD rental to streaming.

Netflix long has planned for such a move, but it is conceivable that the Borders bankruptcy, and clear sluggishness at Best Buy, could have convinced Netflix to move faster.

 Add new fourth generation wireless networks, tablet demand and faster uptake of smart phones and one can argue the business background for streaming is changing.

One also might note that creating a separate Qwikster business makes it easier to sell the whole DVD business, if desired.

Netflix steps up streaming effort

33% Of All Groupon Clones Have Been Shut Down Or Sold

One of the most common Groupon critiques is that the business is easily replicated. Yes, some might say, there are few barriers to entry. But there appear to be many barriers to success.

According to data from deals aggregator Yipit, 33 percent of daily deals sites have been shuttered or sold so far in 2011. That's 170 out of 530 deals sites overall. Growing operating costs appear to be an issue. 

Groupon spent about $7.99 to acquire each subscriber who actually redeemed a daily deal in the first quarter of 2010, according to regulatory filings. By the second quarter of 2011, that figure had nearly tripled to $23.46.

Overall, Groupon spent $378.7 million in marketing initiatives in the first half of 2011, up from $35.5 million in the same period a year earlier, according to regulatory filings. Many smaller websites don't have the war chest to compete, you might surmise.

At the same time, daily-deal sites also increasingly have to hire more salespeople to line up coupon offers from local merchants. Operating costs grow

Yes, there are few barriers to entry, but there appear to be significant barriers to success.

The Voice Revenue Problem

Only 70 percent of households in Marshall County, Indiana have landlines in 2011, a figure that is expected to decrease to 50 percent in the next two years. That statistic is one important facet of the voice services business: people simply are starting to use their mobile devices as their primary “phones.”

The other important angle is less usage of voice communications overall, on both mobile and fixed connections. According to Nielsen, the average number of mobile phone calls we make is dropping every year, after hitting a peak in 2007. And our calls are getting shorter: In 2005 they averaged three minutes in length; now they’re almost half that.

Also, in part because of the prevalence of VoIP services, unit prices are under pressure. Servive provider executives are no dummies. They know all that, and already are moving ahead with initiatives that will replace lost revenue and still provide a growth path.

But there are lots of thorny, practical issues. Consider investment. How much should a rational executive invest in a declining business? How much should it try to innovate? What is the balance between support for growing businesses and networks, and declining businesses? When does network investment become stranded? What should executives do about all that?

Has AI Use Reached an Inflection Point, or Not?

As always, we might well disagree about the latest statistics on AI usage. The proportion of U.S. employees who report using artificial inte...