Cambrian House, the poster-boys of Crowdsourcing are essentially dead – assets being sold in a garage sale for a fraction of what investors put in. TechCrunch and Mark Evans speculate the House collapsed due to poor execution.

Of course.. in fact they were doomed to fail, and it was obvious ever since the 1000 pizzas episode. This is what I wrote back then:

They are not afraid of unusual publicity stunts, although frankly Feeding Google was more about noise than being smart: followed by cameras, completely unannounced, they descended on the Google campus with 1000 pizzas at 3pm.
Did you get that? Google, as in Google the company famous for it’s free gourmet food, at 3pm, as in just after lunch, before dinner – no wonder they were soon escorted off campus.
Cambrian guys, I have a free idea for you: next time set up camp with your 1000 pizzaz at Stanford, you’ll be heroes and won’t leave without 100’s of new ideas…and I don’t even want 75 points, just invite me for the pizza-fest.

OK, I admit I am being sarcastic. And I liked the concept, too bad it did not work.

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(reposted from SVASE)

The traditional model for startups of gaining traction in your home market and then expanding internationally is under extreme pressure. Some VCs say they only look at deals that come to them with well defined global strategies, and it’s no longer unusual for a startup to develop its technology in Israel, Finland or the UK, secure its funding in the U.S. and have its founders to be first generation immigrants from China, Europe or India.

Offshore? Onshore? Nearshore? Noshore?

VCs who once bragged about never driving more than half an hour to visit a portfolio company are jetting to Australia for optical engineers, Israel for security whizzes, India and Kazakhstan for brute software coding, South Korea for online gaming and Japan for graphics chips. And many say a global view is required just to keep pace with foreign firms quick to copy an idea.
• When does having a global strategy become a strategic imperative?
• How can cash strapped startups realistically address global markets without blowing up their limited resources?
• Is offshore product development really effective for a startup? Or is it just an endless wait for S/W that never quite works as you’d like?
• Do you really need to create different products for each international market?
• If you’re planning on operating on 4 continents, where does your management team reside?
• How important are international patents? Are they worth the time & cost?
• How do you gain traction in an unknown geography?
• What added value can the right investor bring to the party?


The Panel:
• Andrew Filev, CEO, Wrike
• Girish Gaitonde, Founder & CEO, Xoriant Corporation
• Faraz Hoodbhoy, Founder, EVP & CTO, PixSense, Inc.
• Peter Rip, General Partner, Crosslink Capital
• Sridhar Vembu, Founder and CEO, Zoho
Moderator: Peter Laanen, International Trade Director, Netherlands Business Support Office


WHEN:
Thursday, November 1
6:00 – 7:00 pm: Networking and hors d’oeuvres
7:00 – 8:15 pm: Panel discussion and Q/A
8:15 – 8:30 pm: Additional networking


LOCATION:
Wilson Sonsini Goodrich & Rosati (WSGR Campus), 950 Page Mill Road, Palo Alto, CA 94304

Register here.

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I’ve never noticed this before .. .or perhaps this is the first time it’s happening? Anyway, I’ve today I’ve received email statements from United, American, US Airways, Delta, Southwest and British Airways. Could this be a coincidence, or are all these airlines outsourcing the management of their Frequent Flyer program to the same provider?

I suspect Vinnie will know Thinking

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(updated)
Little did Jeff Clavier or Brad Feld know just how timely their posts on “Shared Nothing Architecture” would become in days now that the granddaddy of all on-demand software, Salesforce.com was partially knocked out for almost a day.

The Typepad outage that prompted Brad and Jeff write their piece was just storm in a teacup; this is the real thing, the Perfect Storm. Real business customers could not conduct their business for a day. That something like this would happen was inevitable, but didnt’ we all expect it in the form of a major Internet outage? After all, on-demand vendors are likely to do everything in their power to avoid such outages – or do they? In the case of Salesforce.com, the answer is probably a yes: Earlier this year, Salesforce.com announced it would spend US$50 million to set up redundant East Coast and West Coast data centers with rapid data replication and failover capabilities, an initiative it dubbed “MirrorForce.” (source: IDG).
That’s exactly the kind of commitment Brad and Jeff are asking for, and not all (smaller) providers can afford it. Not that they all should… their core competency being in developing innvative software, not running data centers, which should be outsourced to the “pros” like Vinnie Mirchandani pointed it out numerous times.

Back to our “Perfect Storm”, it will have an effect on the entire on-demand industry, since Salesforce.com is such an icon for this segment. SAP, Oracle etc… will no doubt refer to this “vulnerability” in their sales pitches. Rival NetSuite will not brag about it on their homepage, but their salesforce will likely be trained to point out to prospects why this could never happen to them …

What exactly happened is still unknown – which in itself is quite a customer communications fiasco on Salesforce.com’s part. I bet it will soon be fixed though: the company will come forward with an explanation of what happened, what they do to avoid it in the future, and what they do to accomodate their customers who suffered from the outage. My bet is on Marc Benioff – he will somehow manage to turn this fiasco into a PR victory.

Talk about communication, I am amazed the blogosphere is not abuzz with this story – in fact it’s hardly being mentioned, in sharp contrast to the recent Typepad outage. Isn’t this the type of imbalance Chris Selland and Brad Feld just complained about? Or is everyone out Christmas shopping? :-) Ohh… stores close soon .. gotta run now:-)

P.S. Salesforceless.com is a valid site – I just bought it. (not that I know what to do with it… )

Happy Holidays!

Update (12/21): Others on the subject:

Update (12/23): Unlike Salesforce(less).com, TechCrunch is not mission critical software, just an extremely popular blog, yet when they have an outage, Mike finds it important enough to go public right-away. Way to go!

Update (12/31): Reuters talks about Web Services outages, citing Typepad, del.icio.us … etc, not even mentioning Salesforce(less).com. Funny… Nice-to-have services appear to be more important than mission critical business applications?


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