Sunday 30 May 2010

“Big Brother is watching you”

Google’s primordial misson is to “organize the world’s information and make it universally accessible and useful” However, the company has been criticized by infringment in privacy, intellectual property and censorship.

Google was ranked as Hostile to Privacy by an entity called Privacy International in its report in 2007. The entity affirms that “a centrally-located, widely popular data warehouse of millions of Internet users' searches, and how under controversial existing U.S. law, Google can be forced to hand over all such information to the US government. So it analogously to medical and legal practioners who may be obliged to disclose intimate information to government, Google datacenters could be requested by government regulation to provide sensitive information about its users. The site Google Watch (www.google-watch.org) raised several questions about privacy issues regarding the storage of cookies cross referred with ID, so that Google can creat a user data log. Additionally, Google Watch has also criticized Google's page rank algorithms, saying that they discriminate against new websites and favor established sites. This web site nominated Google for the Big Brother Award.It is reasonable to say that George Orwell was unaware that the technology would allow the implementation of some parts of the concept. Due to the avalanche of criticism of breach of privacy policy, Google provisionally decided to postpone the launch of a new technology of facial recognition.

Google is also criticized by violation of copyrights. The New York Time has complained that the search tool provided grants users access to information that readers must subscribe and pay to access. On September 20, 2005, the Authors Guild, a group that represents 8,000 U.S. authors, filed a class action suit in federal court in Manhattan against Google over its unauthorized scanning and copying of books through its Google Library program. Google states that it is in compliance with all existing and historical applications of copyright laws regarding books. Finally, Google has been criticized of censoring its search results, most notably in cooperation with the government of places such as China.

Restructure of Microsoft’s Entertainment and Cellphones divisions and company’s market value.

Entertainment and Devices division President Robbie Bach will retire in the fall, allowing two lower-level executives report directly to CEO Steve Ballmer. The decision comes as the largest software maker in the world is facing increasingly strong competition from Apple's iPhone and the Android operating system, Google, aimed at the smartphone market.

Member of the team at Microsoft for 22 years, Robbie Bach, 48, led the entertainment and devices unit of the company since 2005, and was responsible for launching the original Xbox console in 2001. From July 1, the two senior vice president responsible for the areas of video games and cellphones, Don Mattrick and Andy Lees, respectively, will report directly to Ballmer.

"Maybe it's time for new leadership," said analyst Matt Rosoff, an independent research company Directions on Microsoft. "They have really struggled to get traction in the area of mobile phones for some time."

Last quarter, the division contributed 11% of Microsoft sales and 3% of operating profit. The unit has successfully developed the Xbox, but so far failed to impact with the Zune digital music player and is losing ground in the arena of smartphones. Only 10% of smartphones sold in the United States in the first quarter running Windows, according to market research firm NPD Group. Meanwhile, Apple had 21% stake, Google 28% and Research in Motion, maker of the BlackBerry, with 36%. Across the globe, Android surpassed Windows as the fourth most used smartphone platform during the first three months of the year, according to research firm Gartner, behind Apple, RIM and Symbian, Nokia.

Recognizing the problems, Microsoft announced earlier this year a completely new operating system for mobile phones, called Windows 7 Phone, which should reach the market by year's end. If mobile phones equipped with this system will not take off, says Rosoff, Microsoft may start looking for acquisitions in the mobile segment

In this context, analysis has also attributed Microsoft inability to capitalize on new products particularly those in the wireless space and, yesterday, historically Apple’s market value surpassed for the first time Microsoft’s. In numbers, more precisely, Microsoft's market value declined to $219 billion at the close of Wall Street trading yesterday, down from $556 billion in January 2000 when Ballmer took over the helm from Bill Gates. Meanwhile, Apple's market value was $221 billion at the close of trading Wednesday, up from $15.6 billion in the same time frame. Nevertheless, Ballmer said Microsoft is focused on launching new products and increasing profitability. Thus, Microsoft’s challenge is to change market's first impression that the new organizational structure will not be able to innovate in wireless space by bringing new valued added products and/or by shopping in the mobile segment.

http://www.fiercewireless.com/story/microsoft-ceo-downplays-apples-lead-market-value/2010-05-27
http://venturebeat.com/2010/05/26/apple-now-at-99-9-of-microsofts-market-value/
http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=MSFT

Wednesday 19 May 2010

Foursquare: brilliant, but will it last for much longer?

In simple terms, Foursquare is a social network which enables its user to share their location with friends. The fun starts when the user subscribes to Foursquare, giving his phone number. After that, in a matter of few clicks in their smartphones, users let people know where they are, what are their impressions and/ or recommendations about the places that they happened to be. Users can also synchronize their Foursquare accounts to their Twitter and Facebook accounts, which can update when a check in is made. Whenever the users check in places, they receive points. By checking in a certain number of times in a given place, users can get some prerogatives.

In this sense, users who have checked in the most times at a given place will become “Mayor”. They will lose this status whenever someone surpasses their number of check in. A Mayor means, getting special offers or discounts depending on the businesses. So, Mayors eventually can get free drinks at pubs, special menus in their favorite restaurants, discounts in stores or complementary stay in hotels etc.
With almost one year of life, Foursquare has reached one million users. This social network has been growing in an astonishing rate. To get a flavor of it, Foursquare signed up some 120,000 new users in just 10 days and during peak times there are roughly 400,000 check-ins a day. The numbers review that not all users are using it on a daily basis.



Big brands started to look at the Foursquare. Bonin Bough, PepsiCo’s Global director of digital media believe that “from a broad strategy point of view, there's a huge potential with the ability to connect people to promotional experiences. We know where people are and can talk to them from a geo-located perspective -- that's a huge opportunity."

Dennis Crowley and Naveen Selvadurai, the founders of Foursquare are planning paid services for three types of business: small, private owned shops and multinational marketers. They could also leverage from Google’s search ads business model of cost per click. However, this fresh social network shall prove that it has a consistent capability of growth and retention of users.

A major threaten to Foursquare business model is that more mature and greater social networks could incorporate new features into their existing ones. For instance, Facebook, whose number of users are around 400 million worldwide, is developing a new feature by with users can make a new kind of status update on their profiles: besides the classic notes of thoughts, news, they will also be able to display their geographic location in real time to their contacts. In my view, the only chance to Foursquare won’t be swallowed by Facebook is to differentiate itself from whatever Facebook may come up with in the short term. Curiously, one of the founders of Foursquare, Dennis Crowley was the co-creator of the site Dodgeball, which was bought by Google in 2005 and which today is known as Google Latitude.

http://www.businessinsider.com/foursquare-plots-its-business-model-2010-2
http://www.businessinsider.com/foursquare-gets-its-local-ad-business-model-on-the-road-2010-4
http://bits.blogs.nytimes.com/2010/03/09/facebook-will-allow-users-to-share-location/