Monday, April 25, 2011

"UC is Free!" Might be Going Too Far

Per-seat costs for unified communications are down 50 percent since 2010, a comparison suggests. At Enterprise Connect 2011, 11 major vendors presented UC solutions, each with the four UC building blocks: IM/presence, conferencing (audio, web and video), mobility and extensibility.

Each supplier presented its UC pricing for the standard configuration. The per-user-per-year average prices for the UC-only configurations were down more than 50 percent from last year, to $38 per user per year (software, hardware and maintenance for 2,000 users for three years). Costs are dropping, no doubt.

Storage Failures Hamper Cloud Foundry

Cloud Foundry, the new cloud platform hosted by VMware, experienced problems with its storage infrastructure April 25, 2011. Cloud Foundry says the issues have affected its cloud controller system, limiting users’ ability to log in and manage their applications. Existing applications will continue to run, but are unable to recover if they experience problems.

“Early this morning we experienced multiple failures in a portion of our storage infrastructure,” CloudFoundry said in a notice on its web site.

Coming on the heels of the Amazon Web Services outage, at least some potential users will be reassessing their options.

Netflix Now Has More Subs Than Comcast

If all that mattered was subscribers, Netflix would be a bigger company than Comcast, the largest U.S. cable company. In the first quarter of 2011, Netflix added 3.6 million subscribers, ending the period with more than 23.6 million subscribers in total. That was up 69 percent from the 14 million subscribers it had a year ago.

Comcast ended 2010 with 22.8 million pay TV subscribers. Of course, subscriber numbers are not the only metric. Comcast's average revenue per user is much higher. Netflix ARPU is about $12 per subscriber, per month. Comcast ARPU is somewhere north of about $82 a month.

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Netflix Earnings Up 88 Percent, Adds 3.3 Million U.S. Subscribers

Netflix added 3.3 million U.S. subscribers in the first quarter of 2011, plus another 290,000 interantionally, to end at 23.6 million, which is slightly below the 3.7 million analayts were hoping for but still double the growth from a year ago.


Netflix saw a rise in domestic operating margins to 16 percent, from 14.9 percent in the fourth quarter, largely due to an increase in streaming-only subscribers and price increases on hybrid subscriptions. Margins should fall back to around 14 percent as streaming and marketing costs continue to rise (offset by declines in DVD shipping).

Content or Context? Both, but Context Might be More Important than You Think

Startups Often Succeed After Failing

One of the certainties about startups is that the initial idea fails, to be replaced by something else that does result in success.

Initial idea: Allow groups of people to band together to accomplish a goal called ThePoint
Eventually: Groupon

Initial idea: Web-based massively multiplayer online game called Game Neverending
Eventually: Flickr

Initial idea: Compare two people’s pictures and rate which one was more attractive
Eventually: Facebook

In-Store Marketing Begins at Home

The Internet has changed many things, including shopping. Among the bigger changes is the amount of research shoppers do before they actually go to a retail location. In other words, a shopper's "buying" process begins before any retailer's "selling process" begins. The implication is that the sales process has to catch people when they are conducting buying research, not after they have finished that research.

Since shoppers now conduct research before they enter a store, retailers have to move up their promotional activities to match the buyer's process, instead of waiting until a shopper is physically on the premises. Saatchi X, for example, used to find that 10 percent of client projects included an online component. Now, virtually 100 percent include an online presence.

Some 62 percent of shoppers surveyed by Booz & Co. report they searched online for deals before they began shopping trips, the Wall Street Journal reports. That might explain why there is new interest in content marketing, where brands invest in various types of online content. It no longer makes sense to be invisible when shoppers are making choices. Rather, brands need to be visible online, when buying processes already are occurring.

It's well known that consumers research expensive products like electronics online, but coming out of the recession, consumers are more scrupulous about researching their everyday products such as diapers and detergent, too, the Wall Street Journal reports.

More than 20 percent of them also research food and beverages, nearly a third research pet products and 39 percent research baby products, even though they ultimately tend to buy those products in stores, according to WSL Strategic Retail, a consulting firm.

The importance of online communications obviously is much higher, and more necessary, if one assumes that key decisions are being made in the virtual sphere. If buyers are making more decisions before they go to a store, then it is important to try and steer traffic towards stores before the more traditional promotion campaigns retailers often have relied upon, in store, can take place.

Content marketing then becomes the first step in the sales process.

Will AI Fuel a Huge "Services into Products" Shift?

As content streaming has disrupted music, is disrupting video and television, so might AI potentially disrupt industry leaders ranging from ...