Connecting the dots ...
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Quite a celebration: just the day after their $53M investment round, valuing the company at $1B (that’s Billion with a B) was announced, LinkedIn is down:
Is there a new emerging trend here? PR blitz, big announcement, site is dead. Other examples just this week:
Firefox Download Day leads to dead site.
Technorati Monster shows to celebrate investment + new ad network. ( But hey, new Sales Team here to help, instead of technologists)
Then there was twitter .. then .. then ….
</rant>
After a really bad start the downloads are at full force. Here on my blog, Firefox 3.0 already has 25% 40% share and growing by the minute. It’s actually higher, since these are daily stats, the early hours skew skew the stats towards other browsers. Total Firefox share (all releases) is 60%.
(Chart by Zoho Sheet)
Cliff Shaw is a serial SaaS entrepreneur who keeps on coming up with really useful services that just don’t make it as a business.
ProtectMyPhotos was my favorite photo backup and synchronization service. Unlike Flickr, Photobucket, Zooomr and just about all the photo site focusing on sharing your photos, this one did not require manual uploads. In fact the best feature was that after initial setup, you could completely forgot about it. Just like Mozy, the general-purpose online backup service, ProtectMyPhotos worked away in the background, non-intrusively, throttling back at times of heavier computer use. With added bells & whistles (online view & edit, sync between online and several offline versions..etc) it was a perfect service – for free, that is. Apparently it failed to attract enough paying customers, so eventually it shut down.
It did not completely die though: Cliff Shaw’s next startup, DocSyncer clearly showed signs of it’s “parent”: the UI was quite similar to ProtectMyPhotos, and they leveraged a lot from the core synchronization engine of the previous product. It looked like a perfectly executed turnaround: the existing technology found new purpose. DocSyncer filled a void left by the web-office providers: it synchronized desktop documents with Google Apps. I was quite certain they would have a short life-span, but this time with a happy ending, Google taking them out. Since the acquisition did not materialize, I can only assume either they could not come to terms or Google is already working on their own solution.
DocSyncer is about to shut down. Quote from the website:
We’ve figured out in a very short amount of time that DocSyncer is a cool tool – but not a business.
I really hate to see it go. No transition to web-based applications is complete unless we can bring our old baggage, i.e. transfer existing desktop documents to the online service. I see evidence of interest day by day, in the 100K or so hits my two “import your history to gmail” guides received. DocSyncer did better then import, it offered true synchronization, but I’d be quite satisfied just to see one-way batch import tools to Google Docs and Zoho, the two leading service providers.
The DocSyncer site says:
Until we meet again, good luck and thank you for the support!
“Meet again”: Cliff does not talk about his next gig yet, but his LinkedIn profile lists him as CEO of Picstreem. His profile also reveals four startup gigs in the past, two of which getting sold. He is a comeback guy, I am looking forward to seeing Picstreem.
In the meantime let’s hope that Google and Zoho will soon offer mass migration, perhaps synchronization.
Update (6/17/08): Wow, it’s amazing how many blogs picked up the story, all without a single bit of accreditation. Thanks, gals and guys!
Foldershare is a life-saver: a peer-to-peer file synchronization product that does its magic in discreetly in the background, with the user barely noticing it even exists. While it needs to log in to the MS servers, it does NOT sync / upload actual data, all synchronization is strictly P2P. In fact one of the setup options is to define whether you allow remote P2P sync to occur through the Net, or strictly on your LAN, behind the firewall.
I’ve been using it for years now, as part of my data sync and backup strategy: I let FolderShare synchronize data between two laptops and a desktop, then I use the desktop as the “master” which will back up data online to Mozy, the other life-saver.
Of course using two products for somewhat similar purposes is redundant, and I have previously speculated that Microsoft should tie Foldershare and Skydrive (Live Mesh, Live Drive – pick your favorite buzzword) offering both PC sync and Web backup. I wonder if it’s about to happen.
I noticed this weekend that my computers could sync without them being online at the same time – which is (used to be? ) a primary requirement for FolderShare to work. Now I could repeatedly test turning off all but one computer, update files on the one with FolderShare running, then shut down FolderShare, start another machine, and voila! – my changes got synchronized. How was that possible when it had nowhere to get the information from, other than the Microsoft servers? (unless the closed program left behind a process running, other than Foldershare.exe)
If this means FolderShare is no longer strictly a P2P product, I actually welcome that change – except for the fact that it happened unannounced. Leaving users in the belief they are only sync-ing data between their own computers when in fact it’ stored on Microsoft’s servers would be a serious violation of their privacy.
Interesting coincidence (is it?): FolderShare will have a planned outage of 48-72 hours this week. 72 hours (3 days!) is a lot of time, it should be enough for major changes. In fact more than enough – such outage would be unacceptable from any service provider – except apparently from Microsoft
. (Yes, I know, we get what we pay for, and this is a free service – it’s still a ridiculous outage.)
Update: Further testing reveals that the actual data files are not transferred between offline computers, only the *.p2p placeholder files. Sigh of relief: your data files are not stored on Microsoft’s servers. BUT …. BUT: the index is indeed stored centrally. This did not appear to be the case with the original FolderShare by ByteTaxi, prior to the MS acquisition. I don’t know when it changed, and I don’t recall being warned about it. The former FolderShare user agreement page disappeared and I haven’t found any updated information on FolderShare’s site.
Update (6/24):
Ouch! C’mon guys, this is so simple, even I could fix it.
The transition of power from Founder to Successor is never smooth. If there’s one company that planned it carefully and has been on the path of smooth execution, that’s Microsoft. Life-long friendship, 8-year-long transition – yet things got bumpy at times, especially in the early days. The Wall Street Journal runs a story with rare insight into some of the difficult times:
Things became so bitter that, on one occasion, Mr. Gates stormed out of a meeting in a huff after a shouting match in which Mr. Ballmer jumped to the defense of several colleagues…
The conflict between the two men paralyzed business-strategy decisions that the company still wrestles with today.
The two men clashed as Mr. Ballmer tried to assert himself in his new job. As the firm’s iconic leader, Mr. Gates still held sway that wasn’t tied to a title: In meetings Mr. Gates would interject with sarcasm, undermining Mr. Ballmer in front of other executives, Mr. Gates and other Microsoft executives say.
Two worked out their differences in 2001, when Founder Bill Gates realized he himself needed to change: having formally relinquished the CEO title to Steve Ballmer, he had to let him lead without constantly being challenged, overshadowed.
But let’s turn back to our angle here, how Microsoft could have been a very early SaaS pioneer:
In one case, two vice presidents clashed over the future of NetDocs, a promising effort to offer software programs such as word processing over the Internet. The issue: Because NetDocs risked cannibalizing sales of Microsoft’s cash-cow Office programs, some executives wanted NetDocs killed.
Messrs. Gates and Ballmer were unable to settle on a plan. First, NetDocs ballooned to a 400-person staff, then it got folded into the Office group in early 2001, where it died.
Fascinating. Eight years later web-based products still threaten to cannibalize Microsoft’s cash-cow, but they can no longer be ignored – largely because of Google and Zoho which now offer viable alternatives to users formerly “stuck” with Microsoft’s products. A costly debate, indeed.
I often stated my preference for Copernic Desktop Search, fought Microsoft’s sneaky plan to install Windows Search on XP systems without the owners consent, yet I find myself using Windows Search by default. Only on my Vista PC though, where it’s easier to keep the default than switch to third-party products. On the XP machines I’m still running Copernic.
And now it’s time to admit my title is misleading: Windows Search actually works – at least half-way. It can add files to the index. It just doesn’t remove them. Not when they are deleted, not when they are moved.
I’m not kidding, try it yourself: move a file to another directory or delete it, then see the multiple, redundant pointers to it in Windows Search. No way to tell which entries are dead until you click them.
Today Microsoft released Windows Search 4; let’s hope they learned the basics of updating an index. (Oh, yes, I know I can force a total rebuild of the index, but this should happen automatically, in the background). I’m not going to find out for a while: I learned the hard way not to touch Vista components and wait till it becomes part of Windows Update.
Barely two years ago we debated whether little-known Zoho was worth paying attention to. The majority view was that their Office applications were weak contenders that would never challenge the Microsoft suite’s position. I think I was in the minority stating that I really did not need more than 10-20% of Word or Excel’s functionality, but online-anywhere access and collaboration made the switch worthwhile.
Today Robert Scoble reports he is seeing online applications wherever he turns:
Today I’d say the skill set is shifting once again. This time to something like Zoho Writer or Google’s Docs. Because if you visit Fast Company’s offices in New York, for instance, they want to work with you on your copy in live time. Fast Fast Fast is the word of the day. It’s in our title, after all. Now some people still use Word, but last time I was there one of the editors told me he was moving everything over to Google’s Docs because it let him work with his authors much more effectively.
These are no longer yesterday’s wannabe applications. Zoho Sheet recently added Macro and Pivot Table support , going way beyond the average user’s needs (and certainly exceeding my spreadsheet skills, which are stuck somewhere at the Lotus 1-2-3 level). Zoho Writer today added an equation editor and LaTex support. Heck, I don’t even know latex from silicone, what is it doing in my editor? 
As I found out it’s important for Zoho’s academic and student users, once again, going way beyond an average user’s needs. (the other update today is mass import from Google Docs: nice, special delivery for Dennis, but I still would like to see a list of all my online docs, be it Zoho or Google, open them, edit them, and save to whichever format (and storage) I want to.)
Online applications have arrived, they’ve become feature-rich, powerful, and are the way software will be consumed in the future. They also change the business landscape.
Software margins choked by the cloud? – asks Matt Assay at CNet, pointing out a shift in Microsoft’s tone about cloud computing, recognizing that in the future they will host apps for a majority of their customers, and that their margins will seriously decline:
There’s not a chance in Hades that Microsoft will be able to charge more for its cloud-based offerings–not when its competitors are using the cloud to pummel its desktop and server-based offerings. This is something that Microsoft (and everyone else) is simply going to have to get used to. The go-go days of outrageous software margins are over. Done.
Matt cites Nick Carr who in turn recently discussed
…the different economics of providing software as a Web service and the aggressive pricing strategies of cloud pioneers like Google, Zoho, and Amazon.
This is fellow Enterprise Irregular Larry Dignan’s key take-away from the Bill & Steve show, too:
Microsoft CEO Steve Ballmer acknowledged the fact that a lot of computing is happening in the browser and not in applications. He also said that the future of software will have “a much more balanced computational model” and that Microsoft will have to compromise.
Of course it isn’t just Office. The obvious business application is CRM, where Salesforce.com pioneered the concept and delivered the first On-demand product. But now a funny thing is happening: the pioneer is increasingly being replaced by more inexpensive competitors, including my Client, Zoho. Yes, SaaS disrupts the traditional software market, but there’s another equally important trend happening: the commoditization of software.
Commoditization is beneficial to customers, but a death-spiral to (most) vendors. Except for the few that drive commoditization. Zoho makes no secret of doing exactly that.
Today the world is raving (not really) about Windows 7’s multi-touch capabilities. Yet the overwhelming feeling I have about the latest Bill & Steve show is disappointment. I feel betrayed…abandoned. They created this turd Vista, then instead of fixing it they move on to the next thing. I’m left behind with this piece of junk. Incidentally, here’s another telling Vista screen, captured today:
You know, the famous Vista copy problem supposedly fixed in SP1. (OK, I realize this is deletion rather than copy, but it’s file manipulation nevertheless … I assume it’s the same problem)
I really wasn’t kidding when I said:
Windows 7, whenever it comes, should be released as “Vista Final”, free to all Vista victims along with Microsoft’s letter of apology.
Read more here: Between the Lines, ParisLemon, CNET News.com, All about Microsoft, InfoWorld, InformationWeek, Gizmodo, GottaBeMobile, VentureBeat, Outside the Lines, WinExtra, Scobleizer, TechCrunch, The Inquisitr, The Secret Diary of Steve Jobs …etc…etc.
In case you’re wondering, I’m talking about Twitter. Their blog-post addressing system failures is outright shocking.
We’ve gone through our various databases, caches, web servers, daemons, and despite some increased traffic activity across the board, all systems are running nominally. The truth is we’re not sure what’s happening.
Translation: sorry everyone, we have a popular service and have no clue why it’s constantly crashing. It’s bad. really-really bad. But hey, at least they are honest. And the $15 million they’ve just picked up should be enough to hire someone who actually knows how to get out of this mess. (Update: they just did)
Update: On second thought, I am less optimistic forgiving. Twitter already raised $5M before this round, that should have allowed them to bring in expertise they clearly lack. If only their priorities were on fixing the service instead of chasing more money.
I keep on re-reading the blog post:
I have this graph up on my screen all the time.
So what? Here’s the chart I often check, provided by Zoho’s Site24x7 service:
I have no idea where the spikes (performance degradation) come from. I’m just as clueless as the twitter team. The difference: I’m not providing a service people became dependent on.
I don’t normally do this, but I figured if re-tweeting on Twitter is accepted, then re-blogging should be OK, too.
Some of my fellow Enterprise Irregulars are at SAP’s European Conference, SAPPHIRE 08 in Berlin, and James Governor juxtaposed two photos taken there:
James leaves it to the reader to work out which group the bloggers are.
Publisher / Editor of CloudAve and Enterprise Irregulars.
I do most of my business blogging there, with occasional asides here. More...
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