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Techdirt Greenhouse Launches New Social Experiment

I’m at the Techdirt Greenhouse, starting in just a few minutes. The previous one was a great experience, and now I am back to lead one of the discussion groups.

One way to measure the success of a conference (unconference?) is how often you talk about it long after it’s over. Ever since the first Greenhouse I could not attend a conference without bumping into a few participants who’d start the conversation by saying how boring the old way felt after the Greenhouse experience.

Greenhouse has become the “gold standard” for participation, interactivity – there are no speakers and audience, just participants.

And now Techdirt is taking it one step further, by launching a social experience: at the end of the day, when everyone’s left, the discussions will not be closed. Greenhouse “lives on” here– courtesy of WetPaint. The site brings the best of wikis and forum discussions together, in an easy-to use format. Feel free to navigate around, and don’t just read – participate! You all have edit rights. Registration is not necessary, but helpful, especially if you’d like to be recognized for your contribution.

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Google Spreadsheet vs Zoho Sheet – a Visual Comparison

As they say, a picture is worth a thousand words. Well, I save you about 950 words, instead let these two pics show you why I am staying with Zoho Sheet, despite all the hoopla around Google Spreadsheet. I imported the same Excel Spreadsheet into both Zoho and Google – here’s the comparison:

Which one is more pleasing to the eye I leave it to you, dear reader but what happened to my chart? Gone. Google Spreadsheet does not do charts. Of course we can pick a number of analytical functions from Excel that both Zoho and Google are missing.. but I am the average user, barely using 10% of Excel’s functionality. Charting, however, is not “advanced” functionality, at least not in my book. It’s a most expressive way to visually convey information – a must for me.

There is a reason why I am using pictures above, not the original spreadsheets: Google has no global share option, I have to invite specific emails. Zoho Sheet allows me to create a URL for global sharing, and it also has a handy feature of publishing just the chart, without the rest of the spreadsheet.

Considering my own usage pattern, Zoho is the hands-down winner. But of course the significance of Google releasing their spreadsheet is way beyond the current functionality, it’s further validation of Office 2.0, using personal productivity and collaboration tools directly on the Web. In the near future I will come back to the issue of Offline/Online, and what I believe the ideal balance is.

Update (6/7): As luck would have it, “Flickr is having a massage” right now, and my Zoho pic shows, Google does not. That’s certainly not what I wanted to present, bt Flickr is expected to be back to normal in 40-50 minutes.

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20%, Hackathon, Haxo, Fedex Day

(Updated)
Now that title doesn’t make a lot of sense, does it? It’s all about the same thing: Google’s model of allocating 20% of developers’ time to “doing their own stuff” as long as innovative and does NOT belong to their everyday project is becoming increasingly popular.

JotSpot defines it as a Hackathon:

“What the heck is a hackathon?

It’s a day-long event where our engineers each crank on something:

  • valuable to the company
  • but not what they’re “supposed” to be working on and
  • that can be taken from idea to working prototype in one day

Why do a hackathon? Because even startups get into a grind where engineers are working on longer term projects and creativity can feel stalled.

Plaxo calls it Haxo (cute )

“The general rule is that projects have to be somewhat related to the company’s direction, but everyone is encouraged to work on something new and different, and in particular on something that wouldn’t otherwise make it to the top of the priority list.”

Atlassian calls it Fedex Day, except that they extended it to Fedex Week.

“The development task must be something “out of the ordinary”…. it must be deliverable in one day (hence Fedex Day – “We deliver.”). “

And there is Bubbleshare, which simply calls it .. hm.. R&D time. (Isn’t that the term reserved for the other 80%? ). I see a certain cultural influence here. Joke apart, who cares what the name is, Albert clearly “gets it”:

“You’ll get your best ideas/features from bottom-up skunkworks projects that would NEVER be “justifiable” under the company road map.”

Congratulations to all the creative teams, keep on hacking (haxing?) away.

Update (6/16): Techcrunch reports about Yahoo’s 24hr Hack Day.

 

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SaaS: Evolution or Revolution

Blog-Based Analysts Shake Up IT Research – says InformationWeek. Well, I don’t know about shaking up, but I repeatedly find myself having to disagree with respected research firms.

First there was McKinsey, where I had to disagree with their assertion that financial applications will not see SaaS penetration for years to come. The ensuing discussion on several blogs, as well as statements by relevant software companies sufficiently buried that assertion.

Along comes Gartner with their Gartner Voice podcast. Not particularly exciting, I doubt you’ll hear anything new, but if you have 11 minutes to kill, why not download it.
Right now [Saas] is a very small part of the marketplace. It only takes up…one-half of one-percent of overall enterprise applications. If you look out eight or ten years, that might go up all the way to 30%.”

While the first number is probably valid, comparing a new model to the legacy installed base says nothing about the health of the Software as a Service industry. Currently about 10% of all software sold is SaaS, and that ratio is expected to grow aggressively. There will not be wholesale migration from legacy systems, but withing years with SaaS gaining dominance in terms of new deals, hybrid environments will evolve, which eventually will tip the scale over. Gartner expects SaaS to reach 30% in 8-10 years? It took less for client-server to completely push out mainframe applications. And yes, dinosaurs do exist: at SAPPHIRE 06 SAP mentioned they still have 3-4 mainframe customers.

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Wikiwars Galore: Wiki the Presidency

The Wikiwars sometimes experienced on Wikipedia will soon be dwarfed by what will no doubt erupt on Wiki the Presidency. Wow, this will be fun to watch – or participate in. (hat tip: Eszter)

Update (6/9): Stefan Topfer is calling for “a wiki for every politician in the western world and keep records on their voting, so when they come to be re-elected, they have a public “record”! We could make them accountable.”

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Microsoft – Adobe: Much Ado About Nothing

There is a lot of fuss about Adobe blocking Microsoft’s plans to incorporate “save to PDF” functionality in Office 2007.

Much Ado About Nothing. Legally Adobe owns the PDF format, but it has long been openly available.

A little known fact: the first company breaking Adobe’s monopoly may have been Intuit, introducing TurboTax print-to-pdf years ago. I’m sure they had a deal for that with Adobe, but I doubt they considered the fact that the PDF driver remains on one’s computer years after Turbotax has been uninstalled, and is quite accessible to any other programs. But that’s history now.

Today any Mac OSX user can save to PDF, OpenOffice creates PDF formats, Zoho Writer (which I recently featured), Writely both do it. And if you’re still stuck in Microsoft-prison, there are a number of free PDF-creators, including my favorite Paperless Printer which can convert almost any application data to PDF, HTML, DOC, Excel, JPEG or BMP including those created with drawing, page-layout, or image-editing programs.

Adobe, it’s gone, let go of it! Be happy to have become the standard, which allows you to charge for extra functionality. End of story.

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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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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…