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Zoho Office for Sharepoint: Use SaaS, Keep Data Behind the Firewall

One of the major roadblocks to SaaS providers’ entry to the enterprise is  IT and Business concerns about corporate security, thinking of the firewall as the last line of defense. 

Microsoft SharePoint has a very strong position in the Enterprise as the incumbents behind-the-firewall collaboration server, and for years smart Collaboration and Social Software vendors with better functionality, like Atlassian, Socialtext, Jive Software, Newsgator  have been "playing well", adopting their services to SharePoint.

Now Zoho joins, announcing Zoho Office for Microsoft SharePoint, which combines the benefits of a collaborative SaaS Suite with the (perceived or real?) security if keeping data behind the firewall.

Read more

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Entrepreneur Assist Launched – Powered by Zoho

TechMeme’s algorithm is either buggy or smarter than I thought. This morning it linked two seemingly unrelated posts that both tackle the same underlying concept: measuring web site use.

Read/WriteWeb reported that Web Office suite provider ThinkFree hit the 1 Million mark in number of hosted documents, up from 654,000 in late February. Their 335,000 users (up from 250,000 in February) upload between 60,000 to 80,000 documents per month. Impressive numbers. Of course, numbers can get tricky, revealing more than intended: comparing users and documents, it appears the average ThinkFree user creates 1 document every 4-5 months. Of course there is no “average user”, I suspect the real situation is that a lot of users just signed up and never came back (the famous 53,651), so in reality ThinkFree probably has a lot less but more active users.

Competitor Zoho does not track the number of documents created, but the current user number is 310,000 up about 110,000 on the last few months, showing a faster growth rate than ThinkFree. Today’s announcement of Entrepreneur Assist, a personal homepage by Entrepreneur.com, powered by Zoho applications will certainly accelerate that growth.

Entrepreneur.com is one of the largest small business sites, with millions of unique visitors per month… but why am I talking, let’s see some numbers:

Like I said, numbers are tricky, there are so many ways to look at them. Clearly a visit to search engine Google is a lot shorter than one to a content site, or one where users actually work, create a document, collaborate. For this reason the time users spend on a website is emerging as a an important metric. In fact if we look at time spent at the very same sites, we get a different picture:

As expected, users spend less time per visit on “read-only” sites, vs. the ones where they actually create something – and clearly teh Zoho apps will further improve this metric for entrepreneur.com. This is partly the reason behind the deal, but watch the video yourself.

The next video talks about what you can actually do on Entrepreneur Assist:

Related posts: CenterNetworks, Mind Petals, Web Worker Daily, Zoho Blog.

Somewhat related: American Bar Association launches free legal advice site for small online businesses.

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Microsoft is Freeing Users from Office-Prison

The likely reason news of Microsoft’s Office 2007 “Kill Switch” did not cause a lot more uproar is that it surfaced during Thanksgiving week:

“Buried in a Knowledge Base article that Microsoft published to the Web on November 14 are details of Microsoft’s plans to combat Office 2007 piracy via new Office Genuine Advantage lockdowns.

Office 2007 users who can’t or won’t pass activation muster within a set time period will be moved into “reduced-functionality mode.””

As unpopular as this move will be, it’s perfectly within Microsoft’s rights to dump users who don’t become customers. The question is, is it a smart move? ZDNet attempts to do the math in The economics of Microsoft’s kill switch:

“Would you sacrifice $10 million in sales to prevent $1 billion in software piracy? How about $100 million? How many customers would you annoy?”

I don’t think it’s simply a numbers game. Whatever Microsoft’s “loss” to piracy is, it’s not going to be converted to sales. First of all, the “kill switch” comes with the retail product, large corporate customers volume licence is not affected.  So we’re talking about smaller businesses and individuals (I am focusing on the US market). A fraction of these may be “forced”  to buy a licence, but the large majority won’t.   What we really need to look at is why these users run MS Office in the first place.

“The simple argument that ‘this is good enough for 90 percent of what we do’ has fallen on its face over and over and over again,”Microsoft would like us to think.

I don’t buy it.  I don’t use fancy features in Word, have repeatedly stated that my Excel skills are on the level I learned using Lotus 1-2-3 – yet I have Office on my computer.  So does virtually anyone who occasionally needs to receive/send files to Corporate America.  Not because they need all the features, but out of fear (losing compatibility) and laziness.   But believe me, these users will rather switch to another product than shell out hundreds of dollars for a MS licence.

They might actually find the experience quite rewarding.  OpenOffice is a free alternative, but it’s big, clumsy, needs installation and updates just like MS Office – web-based alternatives, “Office 2.0” products are increasingly powerful, fast, easy-to-use, and allow one to access files anywhere.  It’s safer in the cloud smile_wink.
Office 2.0 vendors bend over backwards to make it easier to work with Microsoft files.  Zoho ( a Client of mine) has a full online Office Suite that easily imports MS files, and of course saves your work in doc, xls and other MS formats, just as well as PDF and several others.  The Zoho Quickread plugin allows opening of any MS Office files directly from the browser (IE, FF) without first importing/converting them. Tomorrow Zoho will release plugins for the major MS Office products, making it easy to save files online directly from within the Office applications.

The danger for Microsoft is not the direct financial impact of these users turning away from their product, since the never paid in the first place. It’s losing their grip; the behavioral, cultural change, the very fact that millions of people – students, freelancers, moonlighters, small business workers,  unemployed – realize that they no longer need a Microsoft product to work with MS file formats.  Microsoft shows these non-customer users the door, and they won’t come back – not even tomorrow when they are IT consultants, corporate managers, executives.  That’s Microsoft’s real loss.

Update (11/30):  See TechCrunch and the Zoho blog on the new announcements.

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Socialtext 2.0: Usability vs. Usefulness

Socialtext recently announced version 2.0 of it’s enterprise wiki. The two big news are a completely revamped user interface, aiming to make Socialtext a lot easier to use, and the publication of the REST APIs to support integration and mashup development. For more information watch this screencast by CEO Ross Mayfield, and see this review at TechCrunch.

The revamped UI is a huge deal, and it’s been long overdue. For some background check out Jeff Nolan on the “UI sucks” issue. One may agree or disagree, but as long as there are reviews like this:

I have tried on at least four separate occasions to use and like Socialtext but I can’t…I just can’t use this application.” – well, you definitely know you have a problem.

Interestingly enough Socialtext, the company realizes how important ease of use is, and they are contributing resources to bringing WYSIWYG Wikiwyg editing to Wikipedia. But let’s focus on Socialtext, the product for now.

The new UI is aesthetically pleasing, has nice colors (somewhat reminds me of JotSpot’s blue), but most importantly it’s clean, simple, in short it passes the “blink test“.

thumbs_up The Home Page is of key importance in the new release: a Dashboard gives users a quick glance of a shared whiteboard, personal notepad, customizable watchlist, a listing of what’s new (i.e. recently changed pages) as well as the users active workspaces (i.e. wikis). The Home page has become the central place where you can access all extended features, like a listing of all pages, files, tags, or change settings. You can start adding information using the New Page button, which, just like the Edit and Comment buttons on all subsequent pages clearly stands out, again, passing the “blink test”. I love the new colored side-boxes for tags, inbound links and attachments.

I can’t emphasize enough how important inbound links (backlinks in the previous releases) are – a wiki is all about associating pieces of information with each other, and the inbound link shows you where the information on the current page is used elsewhere. In wiki systems without this feature on would manually have to create them, a task most often forgotten (as it does not fit the natural flow of creating new pages), thus those systems don’t offer the full potential of a wiki. I can’t for the life of me understand why inbound links haven’t yet made it into the standard feature-set in JotSpot 2.0, when it’s been long (for more than a year) available as a downloadable plugin on the Jot Development wiki – but how many users search the development wiki? In contrast, Atlassian’s Confluence has long supported incoming links.

We know from Ross and others that in creating the new design the primary objective was to increase ease of use, and in doing so Socialtext conducted customer usability studies. The number one customer request was to reduce clutter, which was quite abundant in Socialtext 1.x. They certainly achieved this objective – perhaps too much. Playing around with the beta I run into trouble trying to create a page from an already existing page – I simply did not find the New Page button. “This is something too obvious to be a bug”, I thought, and Ross proved me right: It’s all part of “getting rid of the clutter” and doing what customers had requested.

Socialtext believes this helps eliminate a frequent problem: the existence of orphan pages in wikis. (Orphan pages are valid, existing pages that no inbound hyperlinks point to; thus it’s difficult to find them, other than by searching or listing all pages).

I am not sure binding users to the Home page is a good idea (it’s not just the “new page”button, all other extended features/tools are anchored here). To me the natural flow is typically top-down: one would create a subpage from the parent where the summary level thought flows, thus creating a parent-child relationship. In a business wiki, where after a while you’ll end up having a large number of pages, the further away you are from the right place (the parent), the more likely you will forget to create a link to the new page, thus may end up with a proliferation of orphan pages.

Interestingly enough, the most elegant solution to the orphan problem comes from two products at the opposite end of the spectrum: Wetpaint, the friendliest consumer/community focused wiki (actually a blend of wiki-forum-blog features) and Atlassian’s Confluence, the market-leading enterprise wiki. Other than the standard user-created links within the flow of text, these products also offer an automatic index of subpages along with each page. JotSpot‘s 2.0 release offers a less foolproof but reasonable solution: when you create a page by using the “new page” button, technically it becomes an orphan, however when you hit “save”, you’ll find yourself at the parent level where a quick alert pops up proposing to create a link to the child page you just set up.

There’s a fool-proof way of creating new pages that can’t become orphans: create a link before the page, and forget the “new page” button. While typing, wherever you want to branch out to a new page, insert a link to the page about to be created, typically by highlighting text and using the “link” icon, or in JotSpot you have the option of simply typing a WikiWord (also referred to as CamelCase), it becomes a link automatically. This “trick” creates a shell, essentially a placeholder for your new page: you can add content later, but since it’s already linked to, it can’t become orphan. All the wikis I’ve talked about allow this method, but Wetpaint and Confluence don’t really need it, since they provide navigation based on the auto-index of child pages. (Update [2/17/07]: I’ve just discivered a perfect existing term for what I am trying to epxlain here: LinkAsYouThink.)

Back to Socialtext, perhaps there is more to the new design than the desire to create a very simple, clutter-free user experience: the underlying philosophical difference between hierarchical structures, parent-child data relationship vs. everything being flat (created at the home page ) and only associated through links embedded in page text. But hierarchy, structure are not necessarily evil; only pre-existing ones are.

smile_wink We tend to think in structures, need organizing principles – there is a reason why books have a table of contents. Wikis, as unstructured as they are in “virgin state” are a good tool to create structure – our own one. The assumption of a parent-child relationship mimics our usual workflow, and it does not impose a rigid structure, since through through cross-linking we can still have alternate structures, no matter where we create a page.

Perhaps that’s the fundamental difference between Socialtext and the other wikis I’ve mentioned – which would explain why it doesn’t have breadcrumbs (navigational line at the top): this standard feature of all the other three products (Confluence, Wetpaint, Jot) does not really fit in Socialtext’s flat world.

My other issue about with Socialtext 2.0: I really would have expected to see document versioning by now: when you upload an attachment (typically doc, ppt or xls file), Jot and Confluence shows the current version, indicating the most recent version number and the user who changed the document last. Click for details, and you get all previous versions and details. Confluence even allows you to label every instance of the attachment with a comment. Socialtext simply lists all documents with the same title (or not), not recognizing them as version of the same file.

smile_sad

Finally, a minor gripe: it would be nice to see threaded commenting, like Wetpaint and Confluence does, allowing users to enter comments to a page itself or to a previous comment. Socialtext, just like Jot, only has a flat list of comments.

Summing up, the new Socialtext 2.0 Beta is really good-looking, but in my view limits functionality for (perceived) ease of use. That said, it’s a beta, and Ross conformed repeatedly that they are seriously evaluating test user comments and it’s possible that the final 2.0 release will have a better solution for the edit/navigation/orphan problem.

fingerscrossed

Last, but not least, let’s revisit document versioning. It’s very-very important. In my “prior life” where as corporate VP I introduced a wiki-based intranet to the company, we used it for document management first, before exploring more of the native wiki functions. But here’s the catch: document versioning in wikis solves a very old problem, but solves it on the bases on yesterday’s (OK, today’s ) technology. Even with proper versioning one has to download documents, locally update them, then upload them back up to the wiki. The process is a lot easier using Office 2.0 applications, be it an editor, spreadsheet or presentation. There is no uploading/downloading, all updates happen online, if need be by multiple users at the same time, and instead of attaching them, one would simply link to, say a Zoho Sheet or Presentation from the wiki.

My ‘dream setup’ for corporate collaboration: a wiki with an integrated Office 2.0 Suite. The next step will be the wiki integration with ‘traditional’ , transactional enterprise systems – that’s a little further away (although … reading this, who knows?

smile_wink ) I hope to discuss many of these concepts with my readers next week in San Francisco, at the Office 2.0 Conference.

Update (9/5): For more insight read Socialtext 2 Design.

Update (11/1): Usability review on InfoSpaces.