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Flow vs. Structure: Escaping From the Document & Directory Jungle

I do not think/work/create like a machine.

My thoughts flow freely and I tend to discover relationships between events (hence “Connecting the Dots” above in the Blog Header), so I like linking things – at least mentally. Why would I confine myself to the rigid directory & file structure that computers have forced on us for decades? There are better ways… let’s look at some.

A while ago Atlassian CEO Mike Cannon-Brookes wrote and excellent piece on how Enterprise Wikis Replace Shared Drives. Shared drives as collective document depositories are a disaster, we typically can’t determine where, to put things, and certainly don’t know where to find them. And if we do find a document, how do we know whether we have the latest version? How do we know who changed what in the dozen other copies with similar but cryptic filenames spread around the shared drive?

Wouldn’t it be easier to use the equivalent of a directory structure with meaningful names, the ability to attach longer narratives to our documents and find them easily via search and tags? That’s essentially what you get when you use an enterprise wiki as your “shared drive”. Think of not documents/files only, but the very reason they exist: in business we typically work on a few “projects” at any one time. If we create wikis / wiki pages for each project / function, the page content becomes the “narrative” that describes what we do, why and how, and further supporting details are in the document attachments. There really is no reason to bury documents (doc, xls, ppt) in some central dumping place (document depository) anymore – they belong to the wiki page (project description) where by definition they are in context. Of course they can be used in several other places, in different context, which is where linking comes handy – linking to wiki pages as well as other content (documents, web sites, etc).

Now that we established the wiki as the “glue” to tie all our documents together, let’s take a step further. As we get comfortable with the wiki, we’ll often wonder when to create a separate document and when to use native wiki pages. If your wiki supports a rich word processor, textual content can easily move in the wiki pages themselves. (Interestingly, Blogtronix, the Enterprise 2.0 platform vendor uses the “document” metaphor for what others call a wiki-page.) Of course whether we call them pages or documents, they should still be easy to share with “outsiders”, by using workspace or page-level permissions, or exporting to PDF and other file formats should you need to “detach” content and email it.
This works well for text, while for other needs we shoot out to the point applications and attach the resulting files (ppt, xls… etc.)

However, like I stated before, I do see the irony of working in an online collaboration platform (the wiki) yet having to upload/download attachments. Atlassian’s Webdav plugin for Confluence is an elegant solution (edit offline, save directly to the wiki), but for most other wikis the process involves far too many steps. Why not directly edit all these documents online? This of course takes us to the old debate whether the wiki should become the new office, or just the “integrator” holding the many pieces together. As a user, I don’t see why I should care: I just want seamless workflow between my wiki, spreadsheet, presentation manager, project management tool …etc. Such integration is easier when all applications/documents are online, and there are excellent applications from Zoho, ThinkFree, Editgrid, Google, to do just that.

Working directly on the Web is not just a matter of convenience. Zoho’s Raju Vegesna points to mobility, sharing & collaboration, presence & communication, auto-Versioning, auto-save, access & edit history as native benefits of web-documents.

As we link web documents to each other, and smoothly transition between applications, a paradigm shift occurs: the definition of what we call a “document” expands. Offline, a document equals a file, defined by application constraints. Spreadsheets, presentations need to be saved in their own specific format, and they become “black boxes”: there’s not much we know about them, other than a short title. There is an overhead in opening every one of them, they need to be virus-checked, then “stitched” together to support the “flow-thinking” I was referring to earlier.
Those boundaries are stretched on the web: a document is no longer a file of a specific type, generated by a specific application: it’s a logical unit, defined by context, which weaves together content created by several applications.

Zoho’s Notebook is an experimental application that allows us to create, merge and store information the way we think, no matter whether it involves writing text, drawing charts, shapes, crunching numbers or recording/playing videos. Experimental in the sense that we don’t know how it will be used. In fact I don’t know what the future web worker productivity / collaboration tools will look like, but I suspect they will have elements of Notebook – multi-format, multi-media – and wikis – user-created structure, everything linked to everything – merged together.

Files, formats become irrelevant: there is only one format, and it’s the Web, defined by URL’s.

Additional reading:

Update (11/13/07): Read I Hate Files on Collaboration Loop. (via Stewart Mader)

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Laptops Are Crippling Us

Who buys a desktop anymore? Laptops outsell desktops, they are almost as powerful, more flexible, are with us at home, at work, on the road, in the air, in bed, in the hot tub ( see update at the bottom), and finally they don’t look ugly at home. I haven’t had a desktop for 8 years now.

And now I am about to take a huge step back… going against a trend. Why? It’s simple: laptops are unhealthy. Well, that’s an understatement. They are crippling us. It’s really simple, says the Harvard Medical School:

“When the keyboard is in the proper position for the wrist, the screen is not in an adequate position for the neck and vice versa. Using a laptop is a trade off between poor neck/head posture and poor hand/wrist posture.”

“In “A”, the laptop is too high and distant, with the user’s arms raised and outstretched, resulting in unnecessary fatigue in the shoulders, neck, back, forearms and hands. In “B”, the user has the laptop in the lap, which facilitates good arm position, but the user’s head is dropped, causing muscle tension in the back, neck, shoulders and chest. In “C”, the laptop is on a “standard” surface that is too low and close for comfortable viewing, and too high for upper body comfort. Notice that the hands are higher than the elbows, the wrists are resting on the edge of the worksurface, and the low back is not supported. This position increases risk for injury to the neck, back, elbows, and wrists.” – explains Working Well Ergonomics

There’s only one way a laptop can be ergonomically correct: by raising the screen (i.e. the entire laptop) on a stand / docking station and using an external keyboard at a proper position. I’ve seriously considered doing just that.

But all that gadgetry is quite expensive and I’d still be limited to a 15.4″screen (anything bigger is a brick to carry), while standalone wide-screen LCD’s are much larger, crisper, and really inexpensive today… so I am about to buy a desktop system basically for the screen.

Have you tried buying a flat screen recently? Not all models are ergonomic (in fact most aren’t) and it’s close to impossible to find out online – you have to touch it live. You get data like analog / digital, all the inputs, aspect ratio, brightness, contrast ratio, response time, and the like, but hardly any site selling LCD monitors tells you if they are vertically adjustable. That should be priority #1. As LCD screens become fashion objects, they are getting lower and lower – many stand so low, that they are hardly any higher than a laptop screen. That’s ridiculous. Look at the chart above – clearly, the only ergonomic screens are those with variable height (unless you want to put your old Encyclopedia Britannica to good use as a screen stand).

Of course I won’t be glued to my desk all the time, so I will still have to fall back to the laptop. This is where the Web comes to help. In the past, switching from my default computer required a bit of preparation: moving my Outlook.pst files and several other essentials, updating settings, old programs ..etc. Since I ditched most of my desktop applications and am using a combination of Gmail and Zoho apps, this is no longer an issue – I’m no longer tied to any physical computer, both my data and applications are identical, no matter where I access them. So, in a somewhat roundabout way, Office 2.0 improves my healthsmile_wink

Ergonomic desktops, here I come!

P.S. I was contemplating all this when I found BL Ochmans post. Thanks for collecting all the information!

HolidayUpdate: OK, that hot-tub usage above isn’t that rare after all. I barely posted this and now I am reading Robert Scoble typing away from the beach at Cabo while his wife is at the spa! Robert, get off your computer! There are things like .. the sun, the ocean, the hot tub, the pool to enjoy (hm should I mention the poolside bar?)

Update (7/23):  What you put your computer on also matters. See desk buying advice at Web Worker Daily.

Update (8/6/08): Gotta love this by Assaf:

You see, the most expensive piece of hardware to maintain is the one I run: eyes, back, fingers. It’s very, very, expensive to repair, and it requires a lot of downtime. So that’s the first TCO on my mind when purchasing a new computer.

Update (810/08): Opinion: Why laptops will kick desktop PCs to the curb

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Are Philanthropy and Entrepreneurship Compatible?

  • “Odd thing for an office ’style’ company to go into – cartoons”

  • “Brilliant strategic move or jumping the shark? I can’t decide.”

  • “At least all their eggs arent in online software; office”

  • I understand doing these things because you get people creating content that you can then monetize…”

The reactions to TechCrunch announcing ToonDoo, a comic strip creator were rather mixed – just as I expected. Not so much because of tool itself, but because of it’s relationship to Zoho, the Granddaddy of the Office 2.0 market. Here’s the CEO’s explanation:

unproductivity 2.0

Joke apart, ToonDoo certainly isn’t part of the Zoho Suite, and to dispel some of the myth, it’s not about keeping eggs in different baskets, and there are no evil monetization plans either.

I’ve always been fascinated with what really drives entrepreneurs. As Advisor to Zoho I got to know some of the team, and have been planning to share some of my thoughts for a while. Zoho is just one, albeit the most fashionable brand of a larger company, Adventnet. Adventnet is not a “hot name” like Zoho – even their website looks boring. But their product list is over a hundred items long. “Boring”, reliable, solid cash-cows. smile_wink

They are not a startup by any means: they have been in business for ten years, organically growing to 600+ employees and millions of dollars in revenue (without outside investment). Yet working with them feels like working with a startup: in the US they have a team of about 20, the key feature in the office is a pool table, although they are hardly ever in, often working remotely.

The solid position, and being self-funded allows them to do a few things that don’t directly fit business their strategy – they just like “doing good”.

One of these non-business projects funded entirely by Adventnet is Jambav, a site offering games and educational tools for children, ranging from toddlers to preschoolers, as well as resources for kids with special needs, (Update: read Scoble for some background) and community, forum, blogs for parents. Everything at Jambav is free, and so is their latest creation, ToonDoo. The Jambav team realized that us, “grown-up kids” can also use it, so they ended up releasing it under a separate brand.

Education is another subject CEO Sridhar Vembu frequently thinks and writes about:

He has a personal interest in the subject, having “wasted” 4 years getting his PhD in Princeton: “I actually had to unlearn a lot, to be in business. And I didn’t particularly enjoy the PhD experience either. If I were to go through life again, I wouldn’t repeat that PhD, that’s for sure.

He puts his money where his mouth is: he launched “Adventnet University” in India, bringing in disadvantaged teenage kids and putting them through 2 years of education, with a strong engineering / software focus. Is this all altruism? Probably not. Adventnet is hiring a lot of engineers and some will likely come from their own training program. One does not have to be entirely altruistic to do philanthropy. For these kids, who otherwise would have no hope of ever going to college, “Adventnet University” is a life-changing event. See fellow Enterprise Irregular Vinnie Mirchandani’s thoughts here.

But I am trying to make a bigger point here, so let me move on to another company now – one that I have absolutely no business relationship with.

A good year or so ago Atlassian was not a widely talked-about name, although they were already the market leader in the Enterprise Wiki space, and prior to that had achieved phenomenal success with their first product, Jira. Without the luxury of spending VC money, they had their priorities straight: first get the products right, let them sell on their own strengths, then start spending on marketing and PR. After financial success came recognition: they keep on winning awards, the Founders became Entrepreneur of the Year and are now featured on the cover of Business Week.

Mike Cannon-Brookes, Co-Founder and CEO is an avid blogger who openly talks about “life at Atlassian”. It’s through his blog that I found out about their commitment to philanthropy. Every employee can spend 6 workdays a year on their favorite non-profit or charity. Is that a big deal? Well, considering an average of 220 workdays a year, it translates to 2.75% of their productivity. Salesforce.com is known to devote 1% of revenues to charity. I am not underestimating that 1%, but it’s spent with a stroke of a pen… whereas in Atlassian every employee is personally involved. (Compare that to my experience in a very Big, very Blue company, where management kept on publishing reports on employee contribution to United Way (the only choice) until the desired quotas were achieved… ) Update: I stand corrected, Salesforce.com employees can also donate 1% of their work-time.

On a personal side Mike issued a Kiva Challenge. Technically speaking, Kiva is not charity, handing out micro-loans to small businesses – but these are interest-free, high-risk (?) loans. One could say it’s a very “inefficient” process: the loan amounts can be as little as $25, and typically not more than a few hundred dollars. Managing it, and – like Mike does – soliciting other lenders, matching their contributions is time-consuming, but I’m sure as a true Entrepreneur, Mike actually enjoys it. Now, the money could just be given to a large charity, and disappear in the labyrinth of bureaucracy, but helping small businesses take off does more good in the long run. “Give a man a fish and he will eat for a day. Teach a man to fish and he will eat for a lifetime.”

I could cite more examples, but this story has to conclude at some point.smile_embaressed

I admit I am biased, I do like these companies, and probably write about them more often than others.

There are business reasons: they both are leaders in their market, not only have best-in-class products but also provide excellent, personal support and are very transparent about business, strengths, weaknesses, even bug reports. But other than the business criteria, they are also just a bunch of “likeable” people, and I think their non-business, charitable activities play an important role in that. I’d venture to say that everything else being equal, as a small business I’d probably prefer buying from such a “likeable” vs. one with a great product, but with aggressive sales, arrogant support, and generally “unpleasant” people.

What do you think? Is “doing good” a luxury, does it just serve personal satisfaction, or does it have a place in business, especially in startups / emerging businesses? On the other hand, if there is indirect business “payoff”, is it just an investment, or still a philanthropic act?

Update (4/8): Talk about the importance of buying from a “likeable” company, check out: I Canceled My Basecamp Account Today.

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Radar Relay – What’s Happening in Office 2.0

I might as well have titled this post Radar Delay – first it was due last Friday, as part of series of reviews leading up to the Under the Radar: Office 2.0 event, but then fellow Enterprise Irregular Rod Boothby posted an “extra” article the same day, so I decided to wait till Tuesday. Yes that was yesterday, the day when Comcast, my ISP ironically responded to my push for On-Demand with a service outage.

smile_sad

But first things first: Web-based products received a surprise promotion from an unexpected source: Microsoft. As Phil Wainewright says on ZDNet:

“It’s astonishing that in the midst of a serious challenge from a new generation of Web-native office suites, Microsoft should give its rivals a helping hand by handicapping its own product so badly that it performs worse than an online product on a slow dial-up line.”

He is referring to the Outlook 2007 meltdown several users experienced:

You’d think I had just sprayed the inside of my poor mega-laptop with saltwater to induce non-stop fritzing. I’ve learned to meditate while Outlook ruminates over ten incoming POP messages of 69K. Perhaps it takes a few seconds over each incoming message or RSS feed to contribute to solving a Grand Challenge. Or it and Desktop Search have to play 333 iterations of rock-paper-scissors everytime a change has to be written

You can hardly accuse the above user with anti-Microsoft bias, since he is none other than Mini-Microsoft, who is obsessed with fixing Microsoft, the company. The Guardian, Dennis Howlett, Jason Busch, Tim Anderson, Chris Pirillo, Dan Farber, Phil Wainewright had similar experiences. Phil asks:

“But is it an even better fix to abandon Outlook and Exchange altogether and switch to an on-demand alternative?

My answer is a loud YES, and I’m making my point in Desktop Software: A Failed Model. Of course glitches occur in the On-Demand world, too, as we just witnessed Google Apps collapse soon after the announcement. We’re not quite there yet, but I share Rod Boothby’s view that we have passed a tipping point: while 2 years ago the ideal mix would have been desktop computing with additional online access, now I feel as a user I am better off mostly working online, with occasional offline access.

A somewhat doubtful friend, who happens to be the CEO of a cool company making web-based products sent this question:

“Do you really think people will use Word processors (in any significant number) through their web browser? “

Yes, I really do think, but why believe me? Listen to a US Government Agency instead: FAA May Ditch Microsoft’s Windows Vista And Office For Google And Linux Combo.

Some of the Under the Radar “Graduate Circle” sponsors posted significant news recently:

Talk about user base, Nielsen/NetRatings issued a press release claiming that Google Docs and Spreadsheets dominate web-based productivity tools since October, with a market share of 92 percent of unique visitors. Ismael Ghalimi did some research and proved them wrong concluding that Google’s market share may be closer to 50%. His take:

It is actually quite amazing that companies like ThinkFree and Zoho, with their ridiculously small marketing budgets, can play in the same league as mighty Google.”

Ismael is the creator of last years successful Office 2.0 Conference, and he is already preparing for Office 2.0 2007. But that’s in September – first we’ll have an exciting full-day conference:

Under the Radar: Why Office 2.0 Matters on March 23rd, in Mountain View, CA. Here’s the updated agenda and a list of presenting companies:

Approver | Blogtronix | Brainkeeper | Cogenz | ConceptShare | ConnectBeam | Diigo | EditGrid | Firestoker | InvisibleCRM | Koral | Longjump | Mashery | My Payment Network | Proto Software | Scrybe | Sitekreator | Slideaware | Smartsheet | Spresent | Stikkit | System One | Terapad | Teqlo | TimeSearch Inc. (Calgoo) | Tungle | Vyew | WorkLight | Wrike | Wufoo | Xcellery

The Conference is put up by DealMaker Media, which was until recently known as IBDNetwork. (Too bad I missed their Launch Party.)

Hope to see you there!

Update (3/09): Passing the baton to Stowe Boyd, here’s his Relay post.

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24SevenOffice Acquisition Rumors

24SevenOffice, the European SaaS provider of an integrated, All-In-One system for small businesses may be in acquisition talks with a major US vendor. The news went almost unnoticed, partly because it leaked just before Christmas, partly because the company is largely unknown outside a few European countries – not for long if a deal comes through.

I covered 24SevenOffice, a very promising SaaS provider for the SMB (SME) market several times. Their system is modular but integrated with a breath of functionality I simply haven’t seen elsewhere: Accounting, CRM (Contacts, Lead Mgt, SFA), ERP (Supply Chain, Orders, Products, Inventory), Communication, Group Scheduling, HR, Project Management, Publishing, Intranet. Essentially a NetSuite+Communication and Collaboration.

About the only thing I did not like was the lack of availability for US customers – this might change soon. The news release and blog post mentions three names: Salesforce.com, WebEx and Google, but adds a somewhat cloudy remark: “the companies here are only examples of what the rumors have outlined.” It does not explicitly confirm one of these specific companies as the potential buyer. I should also add that while I had in the past been in touch with Management, at this time I have no information whatsoever from the company, so the ideas below are purely my speculation.

Salesforce.com as suitor: A well-integrated All-In-One product would come handy to Salesforce.com which could dramatically expand their customer base this way. However, they’ve gone a long way in the other direction, trying to become a platform and extending their reach via the ecosystem built around the AppExchange. Acquiring 24SevenOffice would be a huge about-face for Marc Benioff, and essentially would mean admitting that archrival Zach Nelson of NetSuite was right all this time about the superiority of the integrated All-In-One approach.

WebEx: Their original market, the web conferencing space is being commoditized, they clearly are looking for more lucrative markets, as evidenced by the recently launched WebEx Connect (their “AppExchange”). I haven’t heard about much activity since the announcement – certainly owning a product like 24SevenOffice (btw., it really should be called 24SevenBusiness) would allow WebEx a powerful entry into the SMB applications market.

Google: No way, you might say. Google and business process / transaction oriented software are lightyears apart – at least today.

Yet unlikely as it sounds the deal would make perfect sense. Google clearly aspires to be a significant player in the enterprise space, and the SMB market is a good stepping stone, in fact more than that, a lucrative market in itself. Bits and pieces in Google’s growing arsenal: Apps for Your Domain, JotSpot, Docs and Sheets …recently there was some speculation that Google might jump into another acquisition (Thinkfree? Zoho?) to be able to offer a more tightly integrated Office. Well, why stop at “Office”, why not go for a complete business solution, offering both the business/transactional system as well as an online office, complemented by a wiki? Such an offering combined with Google’s robust infrastructure could very well be the killer package for the SMB space catapulting Google to the position of dominant small business system provider. Who’d benefit from such a deal? Google, millions of small businesses, and of course 24SevenOffice.

I admit I would feel somewhat sorry for 24SevenOfice though, as I clearly think they could have a shot of becoming a billion-dollar business on their own – the next NetSuite. Either way, if they make it to the US market this year, they’ll likely see explosive growth. When they are a well -known brand, remember, you discovered them here.thumbs_up

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Read/Write Intranet 2007

Rod Boothby is running a Read/Write Intranet Idol – it’s a poll I invite you to participate in, so I am attaching it at the bottom. But first, it gives me a chance to share some of my (wiki)-thoughts.

The list is a mix of industry behemoths (Microsoft, IBM Lotus), emerging but established brands (Atlassian‘s Confluence, Socialtext, WordPress), relatively known startups and quite a few obscure names. The latter probably not by pure chance: both Rod and I are on the Selection Committee for the next Under the Radar Conference on Office 2.0, and scouting for candidates we have made quite a few new discoveries, including some of these “obscure” names, that likely won’t remain obscure for long.

Perhaps the biggest “discovery” for me was Brainkeeper, a user-friendly enterprise wiki startup that officially launches today. Totally out of left field, they aim to be like market-leader Confluence in functionality yet have a friendly UI like Wetpaint. Oh, and add niceties like Workflow (Itensil?) and an API. Like I said before sometimes it pays to *not* be first on the market …

It was really interesting to watch the poll dynamics change yesterday and this morning. First, with only a handful votes cast unknown little Brainkeeper was leading the chart. Another leader was Koral, a content collaboration startup I’ve been planning to write about way too long now (until I pull my act together, see two reviews by Ismael and John Wilson). What’s content collaboration? It’s content management without the pain of “management”. As much as I am a fan of wikis, not all companies will embrace them: Koral helps those who mostly work with desktop documents (MS Office) share, update, collaborate painlessly.

Back to the poll: as more voters came in, predictably the “brand names” strengthened their position and the “obscure” ones fell somewhat behind. Still with 117 votes cast, I believe it’s mostly InnovationCreators’s primary reader-base, where Microsoft Sharepoint or Lotus Notes Blogsphere are not exactly popular. Like it or not those products will make a killing on the corporate market. So “brand name” here means the likes of Confluence by Atlassian, Socialtext, WordPress, Movable Type…etc.

Confluence’s #1 position on the list reflects it’s real-life market position: absolute leader in market share, revenue, functionality. Of course to maintain that position they can’t just sit on their laurels and they know that. At a really productive meeting with the San Francisco team recently we discussed their development plans, most of which I cannot share for now. However, I am happy to share that in the not-so-distant future Confluence will offer a hosted version – something I’ve repeatedly asked for:-).

As for competitor Socialtext, they revamped the product a few months ago: while I was fairly critical of some of the functional misses, the single biggest improvement was the UI: they went from an outright ugly product to a pleasant-looking, clean, friendly one. In fact this, along with other players (JotSpot, Wetpaint, Zoho, Brainkeeper) has turned the table: formerly good-looking Confluence now feels a bit … well, 2005-ish (?) Still the best, but somewhat boring. They are keenly aware of this and improving the UI is one of Atlassian’s key priorities.

JotSpot is in hibernation in the meantime, although TechCrunch speculates it may open up soon. Zoho is a newcomer to the wiki space, but not one to underestimate: they may just leapfrog all other players when they tightly integrate their full Suite (Write, Show, Sheet, Create) thus creating a truly powerful read/write/collaborate platform online.

Last, but not least two smaller wiki-players from the list: Itensil combines workflow with a wiki (now, religious wiki-fans deny the need for any structure or workflow, which is probably OK for a small group, but workflow is the way large corporations work), and System One combines a wiki with relevant enterprise search.

Without further ado (wasn’t this enough?) here’s the poll, please cast your vote:

You can click “view results” after you cast your vote, then “Complete results” to se more stats on the Zoho Polls site. Once there, click the “Rating” header to sort the list in ranking order – right now, with 117 votes cast Confluence is #1 with an average of 3.54, closely followed by Brainkeeper’s 3.50.

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Wetpaint Attracts More Funding

(Updated)

Wetpaint, the “wiki-less wiki” received a $9.5 million Series B round in addition to its $5.25 million Series A in October 2005.

TechCrunch compares it to other wikis, especially key competitor Wikia:

“Wetpaint has a much more newbie-friendly user interface than Wikia, and is targeting a different audience. Frankly, it’s just a lot more pleasant to look at a typical Wetpaint site than a Wikia one, although the content on Wikia is often much deeper than the equivalent on Wetpaint.”

I’d take this one step further: Wetpaint isn’t really just a wiki, it’s a wiki – blog – forum hybrid. Even novice users can just happily type away and create attractive pages with photos, videos, tagging …etc. without the usual learning curve. These pages can be shared, other users can contribute, entire communities can grow and thrive – in fact that’s what it’s all about: online community creation.

Last August I issued a challenge to find another wiki just as easy to use with a comparably rich feature-set – the challenge still stands.

My only concern is that they appear to burn money faster than the other wiki-companies – but I guess if the investors are not worried, it’s really not my business

smile_wink (And in fairness they have a different business model)

Update (1/9): VentureBeat comments:

“With Jotspot gone for now (presumably, Google will relaunch it in some fashion), and players like Socialtext increasingly focused on selling its wiki software to company users, Wetpaint is among the more convenient Wiki softwares for individual projects.”

As much as I like Wetpaint, I have to disagree. I’ve never considered it a project-oriented collaboration tool. It’s clearly geared towards community creation, and like I’ve hinted above, for that purpose it’s the friendliest platform avaialable today. Business -even small projects – requires a few additional features like document handling (attachments, version control..etc), email integration ..etc.

JotSpot was quite good for that, too bad it’s gone. Socialtext used to be quite ugly, but the new UI is quite nice – it misses a few features though. The new kid on the block is Zoho’s Wiki , (bias alert: I’m and advisor to Zoho) with quite a few features for an initial beta release. It already supports embedding documents, spreadsheets, presentations, videos..etc, and with improved integration to the full Zoho suite later this year it will be a killer combination.

Update (5/13/08):  TechCrunch article on Wetpaint’s traction.

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The "Hidden" Business Model in SaaS: Benchmarking

(Updated)

While we saw a lot of exciting products at the Office 2.0 Conference, the biggest “surprise” was not a product announcement, but FreshBooks CEO Mike McDerment letting the cat out of the bag:

“He basically announced the hidden value proposition enabled by SaaS: competitive benchmarking. All previous benchmarking efforts were hampered by the quality of source data, which, with all systems behind firewalls was at least questionable. SaaS providers will have access to the most authentic data ever, aggregation if which leads to the most reliable industry metrics and benchmarking.

Two months later FreshBooks published the first set of raw data. It includes stats on payment methods, invoicing by email vs. regular mail, browser an operating system usage. It’s a rather limited set, and only covers two months, but it’s a start, certainly to be followed with more business-critical data. CEO Mike McDerment also takes a first cut at analyzing the data, for example:

“Browser Usage

– Internet Explorer 7 – October 5.02%, November 9.68%

– IE 6 – October 37.64%, November 36.77%

– Firefox 2.0 – October 6.61%, November 24.51%

– Firefox 1.5 – October 44.26%, November 22.07%

Analysis

Both IE and Firefox have new versions out. Clearly the Firefox community is quicker to switch to new versions. Remarkably quick in fact.”

I’m not sure I’d agree with the analysis: certainly Mike is right, the Firefox community appears to be quicker in switching to new versions, but aren’t we missing a bigger picture? I’ve dropped the data into Zoho Sheet, the web-base spreadsheet app which generated this chart:

Browser Usage - http://sheet.zoho.com

The “bigger picture” is that IE gained market share vs. Firefox (something that as a FFox user I’m not happy with smile_omg). Clearly, the majority of new IE7 users are not IE6 upgraders, they came from the Firefox camp.

But I’m not here to discuss browser use, nor do I intend to ridicule Mike’s analysis. I picked this example to make a point: the same data set may carry different meaning to you and me. The art isn’t so much in the accumulation of data, but the proper aggregation and analysis allowing customers to benchmark themselves against industry peers – that’s where the real value is, not in raw data. So much so, that I probably wouldn’t entirely give it away; rather market it as a for-fee premium service.

SaaS providers may become the benchmark specialists themselves, but think about it: businesses will likely end up using a few systems from different providers, and if your purchasing, sales, invoicing, service ..etc data are all in different systems (and consequently aggregated by the different providers), wouldn’t you have a better competitive picture benchmarking yourself based on all those aspects? Does this mean we’ll have independent benchmarking consultants in the SaaS world? If so, will there be a secondary market for raw aggregate data?

But wait … whose data is it anyway? Trust in your data being secure, not lost, published, traded with is the cornerstone of the SaaS model’s viability. But we’re not talking about original customer data, rather its derivative – does that change the picture? There’s a potentially huge market opportunity here, yet SaaS veterans like Salesforce.com, NetSuite, RightNow …etc haven’t explored it yet. Why? I suspect for this very trust/ownership issue, which can be a potential mine-field. In the early days of SaaS it simply would not have been appropriate to address it, but now with mainstream SaaS acceptance (MicKinsey predicts 61% of $1B+ corporations will adopt one or more SaaS applications over the next year) it’s high time the industry starts addressing these issues.

Kudos to FreshBooks for being a pioneer in building the service as well as bringing a major industry dilemma to the forefront.

Update (01/04): Jeremiah is thinking along the same lines, discussing how storage companies will (?) eventually pay for your data. Yes, he talks about storage while I talk about applications, he talks about advertising while I talk about benchmarking, but in the end it’s the same: user data being processed to deliever business services.

Update (9/28/2008): Here’s another showcase of benchmarking turned into action messages on CloudAve.

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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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JotSpot Google Deal – Who Wins, Why it’s Big:First Thoughts

A few weeks ago the “wikirati” was having dinner with the Enterprise Irregulars in San Francisco, on occasion of the Office 2.0 Conference. Our gracious sponsor was Atlassian’s Mike Cannon-Brookes, and JotSpot’s Joe Kraus showed up, too. Missing from the photo is Socialtext’s Ross Mayfield, who was there for the first part, a briefing for Forrester‘s Charlene Li, but left before dinner. (Hm, did Joe eat Ross’s dinner?smile_tongue )

(photo credit: Dan Farber)

I heard a rumor that one of us in the group had likely gotten a few million dollars richer – and it wasn’t me smile_sad… but Joe Kraus, having sold Jot$pot to Google. The source was credible but of course we had already heard about a Yahoo acquisition, then eBay .. so who knows, after all.

I found the timing ironic, just having come back from a Google briefing where they announced Google Docs & Spreadsheets, which left me largely unimpressed. This is what they were missing, I thought.

Today we know it’s a fact: JotSpot is part of Google. After the quick post, here are my first thoughts around who wins, and what it may mean from a user prospective.

Who Wins:

  • Joe, Graham and team for obviou$ rea$ons.
  • Google, for now they have all the pieces for a small business collaboration suite, if they are smart enough to get rid of the junk and integrate the good pieces together – something they have not done before. I’ll talk about this more a few paragraphs below.
  • Some paying JotSpot customers: Jot has had a funny pricing model, where you can start free, but if you exceed a page limit (10?) you have to upgrade. Most users probably don’t realize that because in Jot everything is a page (i.e. add an event to the Calendar, it’s a new page), 10 pages are essentially nothing, if you wanted to do anything but testing, you’d have to upgrade – until now, that is. From now on paying customers will enjoy their current level of service for free.
  • Competitors: JotSpot’s market direction has never been entirely clear; they focused on consumers and small businesses, but were present on the enterprise market, too. I think it’s fair to assume that they are out of the enterprise market at least for a while, leaving only Atlassian and Socialtext as the two serious players.

Who Loses:

  • Some JotSpot customers who’d rather pay but have their data at a company whose business model is charging for services than enjoy free service by Google whose primary business model is to know everything about you. Clearly there will be some migration from JotSpot to other wiki platforms. Update: the competition isn’t sleeping, see migration offers by Socialtext and Atlassian.
  • Me, for having half-written a post about the merits of pure wikis, Office suites and hybrids, which I can scrap now.

Who Needs to Move:

  • Some of the Office 2.0 Suites, including my friends at Zoho. This may be a surprising conclusion, but bear with me for a while, it will all be clear.

So far the balance is good, we have more winners than loserssmile_regular – now let’s look at what Google should do with JotSpot.

They have (almost) all the right pieces/features fragmented in different products, some of them overlapping though. They should kill off the weak ones and integrate the best – a gargantuan task for Google that so far hasn’t pulled off anything similar. Here’s just some of what I mean:

Google Docs & Spreadsheets:
One of the reasons I found the announcement underwhelming was that there really wasn’t a lot of innovation: two apps (Writely and Google Spreadsheets) put together in a uniform look and a file management system. It’s this very file management system that I found weak: how on earth can I work online and manage a jungle of thousands of documents in a flat, alphabetical list? JotSpot may just be the right solution.

Google Groups:
It’s rare for a mature product to go back to beta, but when Google recently did it, it was for good reason: the Groups which so far has been just a group email mechanism, became a mini community/collaborative platform, offering functionality found in collaborative editors like Writely, Zoho Writers, page cross-linking a’la wikis, file management..etc, combining all this with group email and the ability to share with a predefined group. I seriously considered it a major step forward, likely attracting previously “email-only” users to the native web-interface – and we all know why Google loves that.

JotSpot, the “hybrid” wiki:
This will be the somewhat controversial part. First of all, JotSpot is an attractive, easy-to-use wiki, and I believe that’s the value Google should keep.

Second, they’ve been playing around with the concept of being an application platform, which just never took off. The “applications” available in JotSpot are all in-house developed, despite their expectations the world has not come to develop apps on their platform. (Will this change in Google’s hands?). In JotSpot 2.0 they integrated some of the previously existing applications into user-friendly page types: Calendar, Spreadsheet, Photo ..etc, along with regular (text) wiki pages. This is what I considered Jot’s weak part. Just because a page looks like an application, it does not mean it really is:

  • Try to import an Excel spreadsheet into a Jot Spreadsheet page, you’ll get a warning that it does not import formulas. Well, I’m sorry, but what else is there in a spreadsheet but formulas? The previous name, Tracker was fair: it’s a table where you track lists, but not a spreadsheet.
  • Look at a Calendar page: it does not have any functionality. You cannot do group schedules, can’t even differentiate between personal and group events. It’s just a table that looks like a Calendar – reminding me the “electronic” calendars of corporate executives in the 90’s: the Word template that your secretary maintained for you and printed daily…

I guess it’s clear that I am unhappy with Jot’s “application” functionality, but I like it as a wiki. In this respect I tend to agree with Socialtext’s Ross Mayfield, who believes in best-of-breed (whether that’s Socialtext is another question…). Best-of-breed of everything, be it a wiki or other productivity tools. I’ve also stated that my ‘dream setup’ for corporate collaboration: is a wiki with an integrated Office 2.0 Suite. Why?
Other than its collaborative features, a wiki is a map of our logical thinking process: the cross-linked pages provide structure and narrative to our documents, one could think of it as a textual / visual extension of a directory system, resolving the problem of the flat listing of online files that represent fragments of our knowledge. Of course I am not implying that a wiki is just a fancy directory system… au contraire, the wiki is the primary work and collaboration platform, from which users occasionally invoke point applications for number crunching, presentation..etc.

Now Google has it all: they should kill the crap, and combine the JotSpot wiki, their own Office apps ( a good opportunity to dump the lousy Docs & Spreadsheets name), Calendar, Gmail, the Group email from Google Groups and have the Rolls -Royce of small business collaboration.
(Update: Dan Farber over at ZDNet is pondering the same: Is JotSpot the new foundation for Google Office?)

By now it’s probably obvious what I meant by Zoho having to make their move soon: they either need to come up with their own wiki, or team up with a wiki company. Best-of-breed is a great concept and enterprise customers can pick and match their tools on their own. For the SMB market it makes sense to be able to offer a hosted,integrated Wiki/Office solution though. So far Zoho is ahead of Google in Office 2.0, if they want to maintain that leadership, they will need a wiki one way or another.

Of course I could be way off in my speculation and Google may just have bought the team.. either way, congratulations to Joe, Graham and the JotSpot team. thumbs_up

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