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Technorati is Dying Again (Still?). White Knight Needed.

(Updated)
I’ve complained so much about Technorati‘s non-performance, it’s getting boring.  But I can’t help it, this idiotic message is just plain frustrating:

I guess the message itself is a sad indicator: they know they can’t fix the performance problems,  so they innovate where they can: with the error message.   Talk about innovation, there is a strange parallel to my previous Vonage post here: I recognized Vonage as the innovator who created the market, now that the job is done and the Big Boys have arrived, it’s time for them to go.

Isn’t the same true for Technorati?  They definitely have been (still are) innovators of the Blogosphere, but simply could never scale up the handle the ever-growing traffic.  I wish the Yahoo /  Microsoft / whoever rumors a few months ago were true: they badly need a White Knight with enough mu$cle to build out the robust infrastructure the ever-growing Blogosphere needs.

Update (6/4):  Now my blog is not indexed by Technorati at all.  Makes me wonder if I am in the “penalty box” or is it just “Technorati as usual” …

Update (6/4):  I guess I am not in the penalty box, just part of a bigger problem, and, unlike Stefan, I haven’t written 3 emails (just 1), and haven’t been ignored for 17 days.

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Vonage not giving Customers a Break – Why Should it?

(Updated)
I can’t believe this madness… everyone crying foul, provocative titles like Vonage not giving customers a break create a feeling that somehow Vonage screwed (pardon my French) their customers and somehow should compensate them. That’s Nonsense!

Now, let me just say I called the Vonage IPO a dud several times, first based on fundamentals, then the last straw being the customer-solicitation, that was as bearish an indicator as it gets.

But that has nothing to do with the fact that customers who bought the shares are responsible for their own decision, and can’t expect to be bailed out after the fact. I certainly agree with Jason, Caveat Emptor still applies. The stock market is not for everyone. Jason goes on saying everyone had access to the company’s S-1 filing – well, not everyone can interpret those documents, but in this case there really was no need: all one had to do was do a simple search on Vonage IPO and there was a barrage of highly sceptical articles in plain everyday language. It really must have been difficult not to see any of these warnings. But none if that matters; customer-investors made their own decision and are responsible for it. If they went to Vegas and lost thousands a night, they would not claim their money back, either.

So let’s get some facts straight:

  • Vonage is a technology innovator, they pioneered the VOIP market.
  • They had a chance for an IPO 1.5-2 years ago. Yes, I know the overall market was not favorable, but back then they were the VOIP industry, they had to expect competitors to rain on their parade sooner or later
  • The VOIP market is now being commoditized, they will become a marginal player. Thank you, Vonage, for bringing us this technology, you’ve done your job, now you can go.
  • Stock trading is dangerous to one’s health, the IPO market especially. It’s the Big Boy’s game, little guys get scr***d.
  • Availability of pre-IPO allocation to retail investors is a fool-proof sign that the stock will tank.

On a personal note, I am not pretending to be particularly smart here, I paid heavy tuition when I was stupid enough to actively trade in 1997. In fact back then I seriously considered writing an anti-daytrading book – had blogging been available, it would have been so much easier…

Update (6/2): Jason brought up a really interesting point in his comment below:Let’s say the average customer lost $300-$400 on the IPO (i.e., they got 100 share allocation), and that’s got them angry enough to leave Vonage? Hmmmm…sure doesn’t sound like Vonage is providing a service that customers can’t get elsewhere, does it?

It sure doesn’t , Jason. Now, I’ll be the contrarian again . Just like Vonage’s poor business performance had nothing to do with the fact that investors need to pay up, I don’t think their loss should be linked to continued use of service. Of course it will be, since we tend to be emotional, but c’mon people, let’s learn to make rational, not emotional decisions.
You should judge the usefulness of Vonage service on it’s own merits, and that of the competitors, not on whether you lost money on the stock or not.

The real bad sign for Vonage is that even on it’s own merits I find less and less reason to maintain service. It was great while it lasted, but I barely use my phone now, Skype or VoipStunt is so much more convenient to use. That’s what Vonage should be worried about… not that they can do much about it.
Of course, for Jeffrey Citron Apr

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You Know Wikis Have Arrived When ….

You Know Wikis Have Arrived When …. they become the feature post in your regular junk mail – this time from an Executive Recruiter firm:

What in the World is a “Wiki”?

If you don’t know what a Wiki is, you probably should.
The term “Wiki” refers to both a collaborative site on the web or your company’s intranet/extranet and the software that runs the Wiki.

A wiki is a website designed for collaboration. Unlike a traditional website where pages can only be read, in a wiki everyone can edit, update and append pages with new information, all without knowing HTML, simply by using a MS Word type interface.

Wikis are the latest, greatest tool for group collaboration, project teams, document editing, etc. And, best of all, they are easy to use, affordable, and extremely flexible.

The easiest way to learn more is to click on the link at the end of this section of the newsletter and try it for yourself!

What can you do with a wiki?
Whether you’re at work or at home, you can access and use a wiki. The wiki allows free-form collaboration, but most wiki software providers and hosts also offer structured applications that allow you all kinds of very helpful functionality.

Here are some of the things that can be done (depending on whose software you use and what applications may be available:

  • Create an intranet
    Publish company information, such as news or employee guidelines
  • Project management
    Schedule project deadlines, assign tasks, and define product specifications
  • Document collaboration
    Multiple users author documents with aid of version history
  • Manage a group’s activities
    Utilize event calendars, discussion forums, blogs and other apps
  • Collaborate with virtual teams
    Communicate with remote contractors or clients
  • Track software bugs
    Log defects and build custom queries
  • Call center support
    Access case histories and increase customer support

A wiki can be hosted on your company servers or there are a number of hosted versions available. There are a number of suppliers, each touting advantages over their competitors, of course.

One important aspect of a wiki — it is highly cost- effective and versions/solutions range from those for the smallest teams on the most limited budgets scaling up to full enterprise versions.

If you are unfamiliar with this explosive growth phenomenon, you may want to take a look for yourself. [Company name] has found one supplier offering free trials. It’s pretty neat stuff and has become indispensable in our own operations. Click the link below for a free trial.

This is not a [Company name] product but we have used the free trial ourselves and had no problems, no hassles, and no sales calls. It just takes 30 seconds or so to sign up.


For spam, this is actually pretty good. The original letter pointed to the signup page of one particular provider, and of course the sender forgot to disclose the paid referral relationship … So instead of just one, here’s a list of a few wiki providers:

Confluence and Socialtext are both Enterprise Wiki’s , robust, well-supported, targeting corporate customers.
JotSpot is more geared towards smaller businesses and consumers and in fact it’s a mix of a wiki plus a few basic applications.
Central Desktop is a “wiki without the wiki”, more of a full-featured collaboration platform with calendar, task, project ..etc features.
WetPaint blurs the line between wiki, blog and discussion group, providing an amazingly easy to use interface, but it’s currently at beta stage.

The above list is by far not complete, it’s just a few of the top of my head – feel free to contribute in the comments section.

 

 

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SaaS for Very Small Businesses – Show Me the Money

Recently, in  SME / SMB Have Become Obsolete Acronyms I discussed how now, that business software and services have become affordably available to small businesses, the SMB term has become inadequate to describe this market, especially from the software industry’s point of view.  Simply because the needs of a $100M company, which SAP and Oracle consider a “small” business are not even comparable to a 6-10 person company – traditionally referred to as SOHO, while recently a new term is popping up: VSB – very small business, the absolute “S” part of SMB.

Innovators in the software business are increasingly focusing on this segment. The result of this change is that “Enterprise Software” is no longer the luxury of large corporations. This might sound like a shocking statement, since “Enterprise Software” typically means the world of SAP and Oracle, and the traditional heavyweight, expensive, pay-huge-license-fees-upfront, then try-to-implement-forever model that does not work anymore.

But there is another definition that is largely being overlooked: 
Software that allows a company to conduct it’s everyday business, supporting most of the core, fairly standard business processes any company performs repeatedly. 

With this definition, Enterprise Software has a whole new, largely unpenetrated market to enter: that of small businesses.   Such business functionality has traditionally been beyond reach for a typical small business, for two major reasons:

  • Cost (license, hardware, implementation, maintenance ..etc)
  • Lack of IT resources (integrating applications, designing processes, dealing with multiple vendors ..etc)

SaaS  is the right answer for both, since it allows the SMB user to start using the functionality without an upfront investment, does not require implementation, upgrades, maintenance, worrying about backups and security ..etc.  

Of course several Open Source packages are available completely free, which is a perfect solution for the cost problem, but frankly most of these packages are by geeks for geeks; i.e. you really have to be quite IT-savy to implement, integrate, upgrade them, and as we stated most small businesses simply do not have that type of resource. 

Stefan Topfer, Winweb‘s Founder and CEO started an excellent mini-series on Saas Benefits  detailing a lot of technical, delivery, usage aspects – now I am going to look at the changed economics from the other side, the software vendors’ point of view.

If SMB’s could not in the past afford Enterprise Software, the same held true for the Software Industry: they could not afford SMB’s, since there was just no way to profitable reach millions of small businesses.   The cost of customer acquisition vs. the very low license fees made it an uneconomical model, whether via direct or channel sales. A common “dirty secret” of the industry is that about 80% of a an enterprise software company’s cost is Sales and Marketing.  There’s a lot of “fat” in that sales process that needs to be cut out.

Once again, technology comes to the rescue: the Internet, and largely Search Engine Marketing changes everything.  Joe Kraus, Founder of JotSpot and previously Excite sums it up:
“ Ten years ago to reach the market, we had to do expensive distribution deals. We advertised on television and radio and print. We spent a crap-load of money. There’s an old adage in television advertising “I know half my money is wasted. Trouble is, I don’t know what half”.  That was us.  It’s an obvious statement to say that search engine marketing changes everything. But the real revolution is the ability to affordably reach small markets. You can know what works and what doesn’t. And, search not only allows niche marketing, it’s global popularity allows mass marketing as well (if you can buy enough keywords). “

Another benefit of SEM (search engine marketing)  is that while traditional advertising can pick the right demographic groups, it cannot pick the right time, only a fraction of the target audience is in “change mode”, looking for  a solution.  That’s the beauty of Search Engine Marketing: obviously if you are searching, you have a problem and are looking for a solution, which is half a win from the vendor’s point of view.

Small Business Trends published a survey on “Selling to Small Businesses”, which supports the increasing importance of SEM: “A full 73% of vendors attract small business customers through search engine results”

Joe has another excellent article worth reading; especially the last two bullet-points are relevant to our discussion here.

What we’re seeing is that the SaaS model changes not only the technology and the delivery of software to customers, but the marketing and sales process, too, which is perhaps where most of the excess “fat” can be cut from.  Software companies can now directly and affordably reach millions of small customers. The entire marketing,  sales, delivery, implementation, support, upgrade process is seamless, highly standardized, conducted via the Net, teleconferencing, Webex-like sharing in new low-cost ways.

So how do software companies make money on small businesses?   Ziff Davis  has the answer:  “Products for the long tail and SMB market, where 72 million businesses spend $5k or less each year, are a much easier play”  Wow, I don’t know where those numbers come from, but if I were a SME-focused software vendor, I’d certainly like them … there’s a goldmine out there. 

AMI Partners confirm:  U.S. SMBs to Spend $2.2 Billion on Software in 2006

(This article, with minor changes is cross-posted at The SME Blog, where I am a guest blogger)

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SVASE VC Breakfast with Diamondhead Ventures – Almost Sold Out

The next  SVASE  VC Breakfast Club meeting is on Thursday, June 1st in Menlo Park – the VC Mecca, Sand Hill Road.  As usual, it’s an informal round-table where up to 10 entrepreneurs get to deliver a pitch, then answer questions and get critiqued by a VC Partner. We’ve had VC’s from Draper Fisher, Hummer Winblad, Kleiner Perkins, Mayfield, Mohr Davidow, Emergence Capital …etc.

Thursday’s featured VC is Raman Khanna, Founding Managing Director, Diamondhead Ventures. The Zvents post  has all the info and a map, and if you plan to attend,  hurry to register   – at the time I’m writing this there are 3 seats left of the 10 maximum.

These sessions are an incredible opportunity for Entrepreneurs, most of whom would probably have a hard time getting through the door to  VC Partners.   Since I’ve been through quite a few of these sessions, both as Entrepreneur and Moderator, let me share a few thoughts:

  • It’s a pressure-free environment, with no Powerpoint presentations, Business Plans…etc,  just casual conversation, but it does not mean you should come unprepared!
  • Bring an Executive Summary, some VC’s like it, others don’t.
  • Follow a structure, don’t just talk freely about what you would like to do, or even worse, spend all your time describing the problem, without addressing what your solution is.
  • Don’t forget “small things” like the Team, Product, Market..etc.
  • It would not hurt to mention how much you are looking for, and how you would use the funds…
  • Write down and practice your pitch, and prepare to deliver a compelling story in 3 minutes.  You will have about 5, but believe me, whatever your practice time was, when you are on the spot, you will likely take twice as long to deliver your story.  The second half of your time-slot is Q&A with the VC.
  • Last, but not least, please be on time!  I am not kidding… some of you know why I even have to  bring this up.

See you on Thursday! Zbutton

Update (5/30):  Here’s a participating Entrepreneur’s feedback about a previous event.

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End Cable Monopoly

Are you sick of being squeezed by your cable company?  There’s nothing you can do as long as they have a monopoly.

If you are in California, check here’s where you can take action

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Web 2.0 in the Enterprise – Round …n.. (I can’t keep track)

Stowe Boyd picks up where Ben Metcalfe left off in Web 2.0 doesn’t work in the mothership, but… essentially recommending that Web 2.0 is best introduced in the Enterprise “in a satellite operation at arms length from the rest of your operation

While this is often the easy solution, I think a case can be made for the seamless mashup of process- and workflow-centric enterprise applications and the more creative, unstructured, collaborative tools like wikis.  Case in point is JotSpot’s integration with Salesforce.com based on the Appexhange. Granted their target is not the largest of enterprises, but another example I heard of at SAP’s annual conference is the SAP Help Desk wiki by  Socialtext targeting the entire SAP ecosystem.  In any case, I agree that spontaneous, project-focused use is how wikis will become adopted in the Enterprise, but at the same time I believe they should be a logical extension of any Enterprise system – SAP, Salesforce.com are starting to recognize, and I think the day when we’ll have both top-down (enterprise sale as part of the large package) and bottom-up (departmental initiative) penetration is not that far.

But then Stowe goes one step further, and this is where the trouble starts:

…the larger question — whether the enterprise would be more agile, more adaptive, and more of a survivor is it could somehow break away from the need for slow-to-change applications that span the needs of many departments, beholden to many but satisfying none — has not really been addressed by Ben or the others I am interviewing on the on ramp to CTC 2006….
My gut says yes. Enterprises would be better off if their IT departments could move to small, low cost, web-based apps that satisfy local needs — a project group, one campus in Denver, the marketing department in Japan — without having to subordinate local needs to corporate controls. The benefits of enterprise standardization are measured in the IT budget, but the true costs are distributed thoughout the enterprise: less collaboration in the research team leads to slower innovation, a less-thatn-intuitive UI for the sale staff in France leads to lowered sale numbers, and a heavyweight finance solution that slows down invoicing costs serious bank in collection time
.”

Oh, boy. When we’re talking about large multinational corporations, as Stowe does in his example, the primary benefit of standardization and integration is NOT measured in the IT budget. The key benefit is competitiveness, simply being able to conduct business.  Here’s a case study from my “previous life” when I was implementing SAP systems in exactly these types of companies: The Client, a major test and measurement equipment manufacturer had no real-time visibility of their available-to-promise inventory throughout their own plants accross the US and several countries in Asia and Europe.  It typically took them 3 weeks to be able to promise a delivery date to customers. Needless to stay they started to lose business. After the SAP implementation customers could receive the promised delivery date in real-time. For this company the implementation of the standard system was not an option, or driven by IT savings, it was the only way to stay in business.

As a matter of fact, prior to standardizing on SAP the individual plants operated exactly according to Stowe’s ideal model: each doing whatever they wanted, picking their own systems that simply did not talk to each other.

Web 2.0, collaboration is great, it has it’s place in the Enterprise, but so do those “ugly complex” transactional systems.  Don’t try to run your supply chain on a wiki

Update , more than three years later: Would You Manage CRM with a Wiki?

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Zoho – the “Safer Office”

(Updated)
It’s somewhat ironic that in the very days I’ve just written about Duet, the joint SAP-Microsoft product, I am seriously thinking of escaping from Microsoft-prison, and switching to the most promising WebOffice (Office 2.0) suite. Perhaps I am part of the trend that prompted Vinnie to consider Duet a “nice-to-have” only, but generally too little, too late. (I actually disagree with him, Microsoft’s lock on corporate users is far heavier than on individuals or small businesses.. but that’s another discussion). Update: I’ve had this post half-written for a while, and now we’re getting warned left and right: “use Word in safe mode“, “don’t open Word attachments from Outlook” – the fix from Microsoft is not expected until mid-June. WTF? That’s three weeks away! I am sick of it, just as much as I am sick of Outlook forgetting where the address book is again, freezing on me frequently, and I am especially sick of MS crippling my computer via the automatic Windows updates. While I can’t get rid of Windows (just yet), I can certainly get rid of buggy unsafe Office. Office 2.0, here I come!

But what’s Office 2.0? First of all, terminology: some call it Office 2.0, others Web Office: the point is to have web-based applications that are accessible via a browser, without any download, that will store the data files on the web, too (sorry AjaxWrite, you are out), thus making all my stuff accessible from any computer, any time (as long as I have Internet access).

I’ve been using Writely for a while, so when I first found Zoho Writer, it was a non-event: both editors are equally good, convenience wins, no need to switch. Are any of these Microsoft Word killers? Scoble would laugh it off, they would not stand a feature-by-feature comparison. So what? I am part of the 90% crowd that barely uses 10% of Word’s functionality anyway. Then I found Thumbstack, a web-based “mini-powerpoint”, that allows me to share and collaborate on presentations easily. It does not do a lot of fancy things, amongst them the animated transitions – great, so now I can focus on substance in my presentations, rather than disruptive entertainment. What about a spreadsheet? Zoho Sheet is easy to use, and is aesthetically pleasing – a point so often missed. Is it as poweful as Excel? Of course not. But my Excel knowledge is probably on the level of Lotus 1-2-3 anyway, so for me, Zoho is the Excel-killer. I also have Stikipad, Calcoolate, Box.net … and a few others – all in my Firefox “Office 2.0” bookmark.

The only problem is, when I am not on my own PC, sometimes I forget what’s where… and of course my data files reside with the various service providers, and I am not completely at ease with my digital life being so fragmented. See where I am heading? This move to the Web is liberating, but the plethora of different services causes a bit of chaos. There are two basic concepts to deal with the chaos:

  • Some of the Web storage companies, like Box.net, Omnipage, Openomny ..etc .. offer their open API’s to application providers, or make one-to-one tight integration and propose that we store all our data centrally, no matter which application accesses them. This is definitely a step forward, in terms of data management, but I am still dealing with point applications, without any integration between them..
  • The second concept obviously is one-stop-shopping: is there one service that offers ALL the MS Office capabilities (with the common simplification we just discussed)? The answer is increasingly yes: Zoho is releasing new applications at an impressive speed, and they come with 1G of storage. While I would not have left Writely for the sake of Zoho writer only, the abililty to have everyting under one hood is just too damn tempting. I can have Writer, Sheet, Presenter (due out in the very near feature) all from the same source, my data is stored at the same place, and although currently these applications require individual registrations, in the near future they will be available with a single sign-on.

The Zoho guys also promise integration between these applications, and I have reason to believe they will be able to pull it off – after all, they already have the Zoho Virtual Office, which incorporates several of these offices in an integrated fashion. AdvantNet, a 500-person company (of which about a 100 work on Zoho) runs entirely on Zoho Virtual Office. Currently Virtual Office is a downloadable server-side product accessible via the Web, but Zoho will offer a Web-hosted version in the future. Without integration an Office 2.0 is not really Office 2.0, just a collection of online applications. (For those who may not remember, it took Microsoft long years to achieve some level of integration in their Office; for several years and throughout several releases “integration” was copy/paste, and quite painful as such.)

Zoho leverages a good deal between the different product offerings: some parts of Virtual Office make it into the individual applications, and vice versa, some of the standalone products become part of Virtual Office. For example 1G storage is now an implicit part of using the applications, but Zoho Drive will soon be available as a standalone service, too. Ah, and let’s not forget about Zoho Creator, which is exactly what the name suggests: an easy web-application creator. They even go beyond traditional Office functionality, into the transactional world buy providing Zoho CRM, a web based, or downloadable full-featured CRM system. Fully featured means supporting the full sales-related workflow, including vendors and purchase orders all the way to sales orders and invoicing… definitely more then just a “glorified contact manager” as the other guy is often referred to.

Listening and responding to customers is an area a lot of companies fail nowadays – Zoho seems to excel here, too. As part of research for this post I looked at earlier reviews, and several features reported “missing” from Writer are already included in the current product. There is a direct feedback link from the applications, and the longest response time I experienced was a few hours – sometimes it’s just minutes. In comparison, a question I posted on the Writely forum over two weeks ago is still unanswered – I guess those guys are busy finding their place in Google.

Summing it up: Zoho pumps out new applications at an amazing rate (check the site for a few more I haven’t even mentioned). While one by one most of their applications are comparable to at least another web-based application, I am not aware of any other company offering such a complete suite, with that level of support and the realistic prospect of integrating the applications soon. For me the choice is obvious: Zoho is my Office 2.0 Suite.

I’d like to touch on another issue, namely the value of being first, “original” vs. doing something better the second time – but for the sake of readability I’ll break it out to another post – soon.

Update (5/27): Assaf, who made blog conversations really trackable by bringing us co.mment read my post and gave the Zoho Virtual Office a try. His overall impression is positvie, but he also includes some criticism – just as he should. One thing I learned is that Zoho listens and moves fast. Another obeservation (of mine) is that they seem to move in iterations:

  • The downloadable Zoho Virtual Office has been around for a while (they run a 500-person company on it)
  • Now they are focusing on individual “Office” components making them available on the Web
  • Finally they will relase their own hosted version of Virtual Office probably incorporating may improvements they’ve made in the standalone products.

Update (6/6 -yes, the famous 666!): Google Spreadsheet is out, the blogosphere is abuzz, and I won’t have the time to write today, but at least I wanted to point to Ismael’s article, since he arrives to the same conclusions I did…

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Screw the Trademark, Move on to Web 4.0

IT@Cork is a not-for-profit networking organisation for IT professionals. IT@Cork organises regular information and networking events which are free for its members.

One of these events – the upcoming Web 2.0 half-day conference is the target of a cease and desist letter (below) from the legal team of O’Reilly publishers. Basically O’Reilly are claiming to have applied for a trademark for the term “Web 2.0″ and therefore IT@Cork can’t use the term for its conference. Apparantly use of the term “Web 2.0″ is a “flagrant violation” of their trademark rights!

Ironically I invited Tim O’Reilly to speak at this conference last February and his response (which I received on 15th of February) was:

“I would love to be able to do it, but my schedule is just too full for an additional international trip.”

So Tim was aware of the event in February but decided to wait until 2 weeks before the conference to set the lawyers on us.

As I mentioned, IT@Cork is a not-for-profit organisation and doesn’t have the resources available to O’Reilly – what do people suggest we do?”

This is absolutely ridicoulous, but I know what to do.

  • First of all, stop talking about Web 2.0, let him stick it up … (hm, pardon my French).
  • Second, skip Web 3.0, too, since that’s the theme of the next O’Reilly conference, (Defining Web 3.0: What’s Next), so he probably trademarked that, too.
  • Third, while at it, boycott O’Reilly’s expensive conference and attend / organize unconferences instead.
  • Fourth, move on to Web 4.0, which I have “prior art” on, so he can’t trademark it. I promise to never make any claims on it and it really doesn’t matter what we call it.

Related posts:

Update (5/29): Isn’t it fun to watch mainstream media pick up on a subject days after bloggers have already forgotten it? Her’s the New York Times, and late or not, they’ve made it to Techmeme.

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Creative Way to Fight Spam

Now that the Blue Frog is officially dead, I’ve come up with a creative way to fight at least some of the spam we all receive.  It only works with otherwise legitim products where you can identify not the spammer, but the company whose product or service is being pushed.  Find the email address of a company executive; send a polite email telling them from now on you will forward all their spam until they can stop it; then set up an autofilter to do just that: forward all spam to the individual’s email address, deleting the original from yours.

Please note, I’ve only said it’s a creative way, as a theoretical approach,  I have no clue about legal ramifications, so am not recommending you follow this method.  Perhaps a lawyer-reader can jump in here (?)

Thanks to Panda software for providing the inspiration. (scroll down to updates).

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