ImaginativePRO Blog

GOOGLE FINALLY PULLS THE PLUG ON THEIR NEXUS ONE ONLINE STORE, THE PHONE WILL BE NEXT

Google's groundbreaking model for selling Android phones from a single Web site is about to become history.

Google has just announced it's pulling the plug on its Nexus One Android Web store.  The Nexus One Web store, launched in conjunction with the Nexus One device in January, was designed to give users a one-stop virtual shop to pick up the latest and greatest Android phones. It was meant to mark the start of a new kind of distribution model -- one where you base your decisions on devices rather than on carriers.

That model will soon be no more.

The Nexus One Web Store Story

In a blog posted Friday morning, Google Engineering VP Andy Rubin said the Nexus One Web store simply hasn't worked as well as the company had hoped.

"We launched Nexus One in January with two goals in mind: to introduce a beacon of innovation among Android handsets, and to make it quick and easy for people to buy an Android phone," Rubin says. "But, as with every innovation, some parts worked better than others. While the global adoption of the Android platform has exceeded our expectations, the Web store has not."

Rubin says Google's Nexus One Web store has "remained a niche channel for early adopters," noting that -- as critics pointed out shortly after the store's launch -- the majority of people prefer sampling a phone in-person prior to making a purchase.

"They also want a wide range of service plans to chose from," Rubin says.

The fact that both Spring and Verizon recently back down on their plans to offer network-specific editions of the Nexus One, opting instead to focus on their own unique flagship Android devices, left only T-Mobile as an officially supported partner for the device. Sure, you could also get an unlocked version of the phone to use on AT&T's network, but -- well . you know. 

Google's Android Phone Future

So what'll become of the Nexus One and its soon-to-be-abandoned Web store? The phone itself isn't going anywhere; Google will just begin making it available in retail outlets instead of online.

Once the device is on the shelves of various brick-and-mortar stores, the Nexus One Web store will officially shut down. The URL -- google.com/phone -- will instead become a showcase of "a variety of Android phones available globally," with no direct purchasing options in place.

COMMENTARY:  I have predicting the demise of the Nexus One since it was introduced, and now the first nail of the coffin has been hammered in.  Google could not even convince AT&T and Verizon, the two largest wireless carriers to carry the Nexus One.  Can you blame them?   The Nexus One would've competed directly with the iPhone and Android OS phones they carry.  Google out of frustration is negotiating to have the Nexus One distributed through either Sprint or T-Mobile, the number three and four carriers. 

Goldman Sachs had forecasted Nexus One sales of 3 million, and last month changed that forecost to slightly less than one million.   By any standards, any smartphone that does not sell at least 5 million units is a no-name, an utter failure when compared to the likes of the iPhone and Android OS phones. 

I can hardly wait for Google to pull the plug on the Nexus One once and for all.  Why they are so persistant and continue to sell this damn phone is beyond me.  If it is out of pride, that is not a good strategy.  I am counting the months, if not days, when Google pulls the plug on the Nexus One phone.  The click is ticking.  tick, tick, tick.

Courtesy of an article dated May 14, 2010 appearing in PC World

HEALTH CARE DOMINATES WHARTON'S 2010 BUSINESS PLAN COMPETITION

Ever since the dot.com bubble burst a decade ago, many students in Wharton's Business Plan Competition (BPC) have turned their attention away from the Internet to other fields. This year was no exception, with six of the eight finalists presenting plans related to health care and the other two related to retail. The ideas included a cervical cancer screening device, an antibiotic to treat infections caused by drug-resistant bacteria, a private sales club for students and a healthy beverage for bottom of the pyramid markets.

Competing for more than $75,000 in combined prizes and in-kind legal/accounting services, the finalists presented their plans recently to five judges and an audience of venture capitalists, business leaders, faculty and students. The year-long competition -- managed by Wharton Entrepreneurial Programs -- is open to any University of Pennsylvania student.

This year, perhaps due to an improving economic environment, interest in the competition was significantly higher than in recent years. More than 230 teams entered the competition compared to 162 last year and 145 the year before. More than 250 judges were involved in the various phases of the competition, which begins in the fall with the initial submission of students' business concepts. Over the year, the entries are whittled down until eight finalists remain to compete for the grand prize at the Venture Finals. The judges at the Venture Finals this year included representatives from CoActive Health Solutions, Karlin Asset Management, Trevena, First Round Capital and Merck. After hearing 10-minute presentations from the student teams, the judges interviewed the students about all aspects of their plans, such as market size, funding, time lines and intellectual property.

The team deemed to have the most viable business plan was named the first-place winner, receiving the $20,000 Michelson Grand Prize and $10,000 in legal and accounting services. The team in second place received $10,000 and $10,000 in legal and accounting services, and the team in third place received $5,000 cash as well as $10,000 in legal and accounting services. A People's Choice Award of $3,000 also was presented.

Listed below, in alphabetical order, are overviews of the business plans presented by the finalists. See if you can guess the winner (revealed below):

CADIA Technologies: Should patients bet their lives on a 60-year-old medical technology that is inaccurate for one in five patients? According to team leader Greg Millhauser, a second-year Wharton MBA student, that is what women do every year when they rely on the Pap test to screen for cervical cancer.

He explained that CADIA's CerviProbe offered a better alternative, as it uses a probe to immediately diagnose cancer with more sensitivity than the Pap test. Although the probe can be used on any mucous membrane in the body, the team chose to focus on its use for cervical screening based on the size of the market opportunity. In the United States, more than 50 million women receive Pap tests every year.

The CADIA team, which recently was named a finalist at the Rice University Business Plan Competition, plans to price the device at $3,500 and the separate sheath used in each procedure at $15. They intend to launch the business with high-volume physicians in six states by 2014. In the meantime, their plan involves continuing R&D, building a commercial prototype and seeking FDA approval by 2013.

Cellulosic Biotherapeutics: For five million people in the U.S., back pain is part of life. The only treatment option is pain killers, and many people eventually undergo spinal surgery. Cellulosic proposes a solution in the form of a biomedical device called the CelluloDisc. The device allows regeneration of the core part of the spinal disc using variants of a naturally occurring polymer to produce scaffolds for tissue regeneration. The injectable liquid would be the first spinal regenerative approach in the market, said Sigal Saar, the team leader and a first-year Wharton MBA student. Patients would recover in just three months.

The Cellulosic team, which received funding from the National Science Foundation, plans to finish the R&D and proof of concept phases by 2012 and clinical trials by 2018, at which time there would be a partnership opportunity with a major medical device company. The group expects a product launch in the European Union in 2014 and in the U.S. in 2018.

Cortical Concepts: To stabilize segments of the spine during back surgery, doctors insert rods and screws to hold the spine in place until it heals, which can take six to nine months. However, if the patient suffers from osteoporosis, a common disease among older patients, there is a high tendency for those rods and screws to pull out. Team leader Stephanie Huang, a first-year student at the University of Pennsylvania's School of Medicine, explained that the process in those cases is like trying to hang a picture in drywall.

Because one in four patients undergoing this surgery has poor bone quality -- a statistic expected to increase with the aging of the population -- this is a significant problem. To solve it, Huang's team proposes to develop the Cortical Anchor, which applies the dry wall anchor concept used for securing pictures to the spine. The device expands as the screw is inserted into the bone, negating the presence of osteoporosis conditions.

Cortical Concepts says the market for the device is 720,000 units or $300 million a year. The team, which was named a finalist in the Tulane University Business Plan Competition, proposed aggressive promotional marketing to create customer interest and already has lined up 25 surgeons from Johns Hopkins University who are ready to use the technology. With a provisional patent filed, Cortical Concepts projects an acquisition value in year five of $180 million.

First Stage Diagnostics: Team member Manish Maheshwari asked the audience members to think about the four most important women in their lives. Chances are, he said, that one of them has dense breast tissue and a 50% chance of having a tumor missed on a mammogram. To solve this problem, his team proposes a portable, low-cost breast cancer screening device called the Piezo Sensor that uses piezoelectric technology, or the ability of some materials to generate an electric field in response to mechanical stress.

Maheshwari noted that there is a $1.1 billion market opportunity, as the current practices to detect tumors are hard-to-read mammograms, expensive MRIs and ultrasounds that are prone to false positives. The Piezo Sensor, he said, can locate tumors as small as 1 mm in size and is radiation free. The technology comes from Drexel University where the research team has won two awards totaling $400,000. With a prototype already developed, the group intends to start a pilot study this year.

Hector Beverages LLC: Priced at just 18¢, Hector's PowerWater is currently sold at the lowest price among branded beverages in India and is the only widely available health-oriented drink in that market, said team leader James Nuttall, a second-year Wharton MBA student. With a unique pouch package, the product is extremely low cost to make and stands up to the rigorous logistics systems in India, going to locations that purveyors of bottled beverages cannot reach.

According to Nuttall, PowerWater will be positioned as a healthy alternative to juices and soft drinks offered by the large multinational companies. With the beverage market in India worth $2.2 billion and annual sales growth of 30%-40%, Nuttall expects Hector's revenue to exceed $100 million within its first five years.

As for competitors, Nuttall told the judges that when he approached large multinationals with this concept, they were interested but not prepared to be the first mover. So he expects larger beverage companies to come "knocking on his door" after the business is more established.

Kembrel.com: While there are 16.5 million U.S. college students who spend over $200 billion annually, particularly on brands they perceive as elevating their social status, students usually have a limited budget. This presents a problem for producers of consumer goods because it's difficult to build loyalty and give students the prices they want without diluting company brands. The solution, according to team leader and first-year Wharton MBA student Aymeric de Hemptinne, is Kembrel.com, an invitation-only online private sales club for college students.

The online club seeks to provide heavily discounted items from desirable brands. For suppliers, the site would help them sell excess inventory by providing discounts that are not available to the general public. With similar shopping clubs such as Gilt Groupe and Rue La La making millions in revenue, there is a significant market opportunity for this type of business, said de Hemptinne.

The business would have low operating costs because students would be involved with all aspects of the site -- from modeling and writing content to serving as campus sales representatives. With 10 brands on board, the team reported that site was host to 17,000 unique visitors in the last four weeks. A winner of a $10,000 Wharton Venture Award, team members have turned down internship offers to build the company over the summer with plans to continue after graduation.

NanoLab: Imagine going to a doctor's appointment where the nurse not only takes your blood pressure, but also swabs your cheek as part of the routine protocol. By the time the doctor walks into the room 15 minutes later, he knows if you are at risk for heart disease, have influenza or even if you have cancer. According to team leader Michelle Gaster, a first-year Wharton MBA student, this scenario could become a reality with a device the size of a handheld calculator that uses magnetic nanotags to simultaneously detect the presence and concentration of up to 64 different proteins in the body.

Team member Christopher Fortier, a first-year Wharton MBA student, said NanoLab would begin by targeting high-value diagnostics such as screening for cardiac markers, a common test conducted in emergency rooms with a $1.2 billion market. After cardiac enzyme panel tests, the next markets would include tumor and infectious disease screening. NanoLab won the IEEE Student Humanitarian Supreme Prize in 2009. The team also recently competed in Stanford's Business Plan Competition.

R2R Therapeutics: Two years ago, second-year Wharton MBA student Ben Rhee almost lost his wife to a bacterial infection that followed the removal of her wisdom teeth. Fortunately, antibiotics worked to fight off the infection and saved her life. However, deadly superbugs are becoming more common and because they are resistant to most antibiotics, even drugs of last resort often won't work or cause toxic side effects.

Rhee's team proposes a novel cationic steroid antibiotic called R2R-1 to combat these superbugs. With a global antibiotic market worth $25 billion, the team's plan involves focusing on treating hospital-acquired infections. Rhee explained that pharmaceutical companies tend not to be active in this area, as the targets quickly mutate to become drug resistant. R2R-1 would provide a solution by disrupting the cell membrane and killing the bacteria, meaning that the target should change less often.

So far, the team reported that R2R-1 appears to be resistant to resistance, safe and highly potent. Using technology discovered at the University of Pennsylvania, the group's plan involves operating as a virtual company, outsourcing as much as possible to keep operating costs low, and hiring a CEO and CFO to take the company forward.

And the Winner Is ...

Cortical Concepts, won the Michelson Grand Prize. Second place was awarded to NanoLab, and R2R Therapeutics won third place. The People's Choice Award went to Kembrel.com.

Jason Hsu, a Cortical Concepts team member and graduate engineering student at Johns Hopkins University, said that the idea for the plan began two years ago as an undergraduate class assignment at Johns Hopkins with team leader Huang. This year, Hsu and Huang, who own the IP, were joined by other engineering graduate students at Johns Hopkins, where they continued to develop the technology. The team is currently looking for licensing partners and has already seen strong interest from spinal device companies.

"It's a single product that would work better in someone else's pipeline where they already have distribution, sales and marketing in place. It makes sense for us to find someone in the industry to take on our product," said Hsu, who graduates in May and is planning to work at a medical technology company. "We'll use the prize money to complete our R&D and round out testing to show that we have a better product to offer companies."

As for NanoLab, the team is interested in further developing the venture and building a prototype. The engineering work, said Gaster, will be done by the inventors -- who happen to be her twin brother, Richard Gaster, and his colleague Drew Hall at Stanford University. Meanwhile, the Wharton MBA students on the NanoLab team plan to reach out to VCs and develop relationships with distributors and manufacturers in order to see if the business is a viable option to pursue after graduation.

Rhee of the R2R Therapeutics team said that their technology isn't far enough along to seek funding so instead the team members, who are all second-year Wharton MBA students, are planning to work as consultants, or for pharmaceutical companies, after graduation. They intend to continue discussions with advisors to see if there is a path forward for the company, such as finding an experienced entrepreneur to come on board or conducting more experiments to validate the technology.

Since the Wharton business plan competition began 12 years ago, participants have tended to do quite well with their ventures. Companies such as InnovaMaterials, Petplan, PayMyBills.com, Integral Molecular and DealMaven all started out as competitors in the BPC and at least seven of the past grand prize winners are still in business.

COMMENTARY:  The social networking wars are over, and Facebook won.   So, it is no surprise to me that Wharton students, unlike Mark Zuckerberg, the curly-haired redhead founder of Facebook, would pursue fields that are in the health care industry, where the action is today.

 

This competition, always gets a lot of publicity, and I wonder how the business plan writer winner was selected. Was it based on crafting a well written business plan or the solving a problem or filling a need in the marketplace. 

 

I would've selected R2R Therapeutics, because I am very familiar with infection control, a huge problem at all hospitals.  Many infectious viruses and bacterious have become impervious to today's antibiotics. Nearly 50,000 patients die every year due to infections at hospitals. 

 

Over the next five year's a large number of antiobiotic drug patents are set to expire.  There has never been a bigger need than for new, much more powerful antiobiotics, and from the looks of things, R2R Therapeutics may have found the answer, filling a much larger market than Cortical Concepts.

 

Courtesy of an article dated May 12, 2010 appearing in Knowledge-at-Wharton

THREE TEEN MEDIA PREFERENCES THAT WILL SURPRISE YOU

My son produced his first movie this week. He's nine. I'm proud that there was an actual plot, and the background music helped set the tone for the havoc brought to our quiet cul-de-sac by a seven-year old zombie.

I'm now sure that his home-movie editing skills will surpass mine by the time he enters high school. He's a digital native who learned to use a mouse when he was two. He's since progressed from playing Word Girl to using iMovie.

Many teens today have similar stories growing up as digital natives. Thus, it was no surprise when I started evaluating the results of a recent survey we conducted that 27% of teens (ages 15-17) upload video, 35% upload audio, and 53% upload photos at least once a month -- double the rates of non-teens.

However, in the same analysis, there are things that shocked me.

1) Email or Facebook? It's a draw.

Whoa! Before you assume my judgment has been compromised by the fact I work for a company with email roots, keep reading.

We often hear people say things like, "I'm more of a texting person," or "I'm more of a calling person." This typography has become a part of our culture. Before sending a message, we consider what channel our target is most likely to respond to. We decided to quantify this by asking how respondents usually prefer to communicate with their friends.

When teens were asked their preference, 36% said email, 35% said Facebook, and 29% indicated no preferenceMoreover, more teens use email at least daily than Facebook and more check email during school than check Facebook.

The issue is that 23% of teens have never created a Facebook profile. When looking at teens who have created a Facebook profile, the preference shifts to Facebook (28% vs. 39%).

While Facebook is far and away the most popular social network, it doesn't have a monopoly. Texting and email are more universal among teens.

2) More teens check MySpace than Twitter first thing.

For many teens, the first place they check in the morning is MySpace -- four times the number that start their day on Twitter.

But isn't MySpace dead? No, it's just that MySpace is no longer top of mind -- at least not on the coasts, where marketers and market researchers tend to be concentrated. According to Mikolaj Jan Piskorski, associate professor at Harvard Business School, MySpace hotbeds are in states like Alabama, Arkansas, West Virginia and Oklahoma. Even California, but in Fresno.

Teens' preferred social networks are a function of the school they attend. You're more likely to find MySpace schools in rural areas. While Facebook spread in urban areas, where students are more likely to interact across schools, it has been slower in rural areas, where schools are more isolated.

This presents challenges for national and regional marketers alike. Social networks are fragmented. We need to understand which social networks are most prominent in which areas. Figuring this out can give you a leg-up in certain markets while saving money.

3) Teens are nine times more likely to call than to use social networks for customer service.

So, are social networks are a good tool for customer service? Yes and no, according to our research. While marketers can't afford not to monitor what is happening on social networks, the reality is that customer service issues that make it to Facebook, MySpace, or Twitter point to earlier customer service issues.

Teens, like all consumers, would rather deal with customer service issues in private through your Web site, on the phone, or via email. However, teens are quicker to pull the trigger and post something to a social network when they don't get the issues resolved. They are three times more likely to use social networks as a means of "outing" bad customer service in their second attempt to resolve issues and four times more likely to post to social networks in their third attempt.

The interests of marketers in good customer service have never been higher. Make sure that customer service reps understand the increasing significance of "first call resolution," even if at the expense of the length of time spent on the phone with customers.

Perhaps the most shocking thing for me in conducting this research is to hear consumers talk about interacting with companies as being fun. Hearing how consumers get barraged with 3,000 marketing messages a day can jade us, but social networks are changing some of that by bringing consumers together to engage with brands in a way that's entertaining.

Not sit-back-and-laugh-at-the-funny-Super-Bowl-ad entertaining, but communally entertaining around sharing stories. As one respondent shared, "[Hot Wheels] posted something asking people if and when they received a speeding ticket. It was fun to read everyone's responses."

COMMENTARY:  These findings do not surprise me.  They parallel other research findings that I have reported in my blog.  I also previously reported that many teens were using email to communicate.  It is not all SMS texting.  It maybe that many wireless plans have a maximum level of text messages.   

MySpace, was originally a teen social networking destination, but as the demographics changed, teens flocked to Facebook.  Facebook's demographics also changed, as has Twitter.   Although MySpace does not have nearly the traffic it had a year ago, it now commands a much larger percentage of teens, as older members have taken flight to Facebook and Twitter.  Looks like the teens are back.

Courtesy of an article dated May 13, 2010 appearing in MediaPost Publications Engage:Teens

 

MODIFIED 2006 FORD GT CLOCKS 266.9 MPH, SETS NEW ONE MILE COURSE RECORD

The emerging sport of One Mile Racing has a new champion – Ray Hofman's 2006 Ford GT runs a twin-turbo motor with a reputed 1900 rear wheel horsepower. A fortnight ago, Hofman piloted his Heffner Performance modified GT over the measured mile with a terminal velocity of 266.9 mph, beating out the other two logical contenders for the title of the world's fastest street car. Just for the record, a Bugatti Veyron exits the standing mile at just over 200 mph. Hofman is now aiming for 280 mph. Is this the world's fastest road car?

Yellow Hoffman Fort GT 2006

Given that motorsport is little more than a century old, it seems logical that new forms of competition should continually evolve. Informal post-war run-offs between car modders became the drag racing industry and similar but more recent homegrown endeavor catalyzed the spectacular new sport of drifting. Now another form of competition is quickly evolving based largely around a bi-annual event held at a remote airfield near the small town of Goliad in Texas.

The Texas mile has been held each March and October at the Goliad airstrip since 2003 and it has now attracted a national following and a global reputation for beckoning the man on the street to "Drive in Your World, Race in Ours!"

In essence, anyone can enter and it's an opportunity to run your street registered motorcycle or car down the measured mile without the fear of speeding tickets and jail time and the aim of the exercise is to see what speed your vehicle is doing at the end of the mile.

The popularity of the Texas Mile and the size of the United States has resulted in several other events to springing up around the country and on April 28, the Florida Exotics Event was held at the Dade-Collier Airport in Florida. The weekend saw some serious activity in the domain of the “world's fastest street car” when the world record was broken not once but twice for the fastest terminal speed at the end of a measured mile.

The first record fell, (and remember this is by a street legal, roadgoing, car), when a Lamborghini Gallardo TT ran 255 mph at the end of a mile. This record was then smashed by a heavily modified Ford GT which ran 266.9 mph. The car was built by Heffner Performance, and both driven and owned by Ray Hofman, the President and CEO of Peak Completions from Midland, Texas.

The yellow Ford GT is equipped with a standard 6-speed manual transmission, runs a stock engine block and heads, retains its airconditioning, power windows and power door-locks, and it also has an original, completely stock body with no aerodynamic modifications other than removing the rear view mirrors.

Performance modifications to the Hofman Motorsports Ford GT include twin turbo-chargers installed by Heffner Performance (follow them on Twitter), internal engine work by Accufab Racing, and tuning/electrical work by Sakata Motorsports. The twin turbo engine is reportedly producing in excess of 1900 bhp and ran its record speed into a direct 18 mph headwind.

Video of the car's first shakedown weekend at the Texas Mile in March can be found here and here, and videos of the record run in Miami can be found here, here and here.

Hoffman racing's full story of that initial weekend of getting the car running fast and culminating in a 250 mph run on the first weekend in Texas can be found here and the full rundown of the Miami weekend can he found here.

They are now talking up the chances of breaking 280 mph soon.

COMMENTARY:  I worked for a bank and remember one of our loan officers asking me help him repossess a Ford Mustang Mach II.   Just for the hell of it, I gunned the accelerator and I thought I had subjected myself to at least 4G's.  The new Fort GT 2006 has got to be 10G's.  What a thrill that ride must be.

Courtesy of an article dated May 13, 2010 appearing in GizMag 

SANSUNG'S DUALVIEW DIGITAL CAMERA ALLOWS YOU TO TAKE A PICTURE OF YOURSELF

Samsung Electronics America has high hopes for its new DualView line of cameras. And it's attempting to make its marketing measure up.

"We think it's the camera that will catapult Samsung from our current market share to two to three times [what it is]," Peggy Ang, VP of marketing communications for Samsung Electronics USA, tells Marketing Daily. "The marketing of it has to be equally ambitious and hard-charging."

To create a maximum effect, Samsung has enlisted pop star Alicia Keys -- and her hit song "Wait Til You See My Smile" -- to promote the new line of cameras, which have imaging screens on both sides, allowing users to view self-portraits before pressing the shutter button. A television commercial featuring Keys dramatizes this action through the story of a fan, who gets the opportunity to take a picture of herself and Keys together. Using the front screen to preview the photo, she nabs the perfect shot of herself and Keys together.

"It's about picturing yourself in the fun," Ang says of the approach. "We said, 'Let's latch onto this idea of taking pictures that people want to see themselves in'."

Keys and Samsung have had a previous relationship, with the singer performing at the company's Four Seasons of Hope charitable gala. Keys' appeal to a younger demographic that is both technologically and celebrity savvy made her a natural fit for the DualView product, Ang says. The fact that she had a song that fit perfectly with the idea of snapping photos was a "lucky strike," she says.

The television commercial will run on broadcast and cable networks through May 27 and will be supported with online, social media and point-of-purchase elements.

The Dual View effort is the second in Samsung's "Dedicated to Wonder" marketing platform, which is intended to showcase consumer moments of wonder and delight through Samsung products. The first showcased the company's 3D televisions.

The next, Ang says, will highlight appliances. "It gives us legs that we are one brand in the U.S.," Ang says. "This [DualView] campaign is bringing to life the wonder of picturing yourself in a dream [scenario]."

COMMENTARY:  I always get a big laugh out of pictures people take of themselves.  You usually see their outstretched in the picture.  Another triick is taking a self-portrait in front of a mirror.  Some taken in public restrooms, bathrooms or mirrored closet sliding doors.  You see a lot of these inpersonal ads.  A lot of people don't want others to know they are looking for love.  

I do wish Samsung very well with the DualView camera, but can't help to ask the question:  Does the DualView camera fill a real need or solve a problem in the marketplace?  If you love taking pictures of yourself all the time, you bet.  I thought the whole idea of taking a digital picture of yourself was to get a laugh of sorts.  So what if the pic is slanted slightly, or your arm appears in the picture, or your head is cutoff.   Taking a funny pic.  Isn't that the whole point?

Samsung boasts that the DualView camera will boost their market share 2 to 3 times.  Maybe.  Maybe Not.  I would prefer to see a gamechanger (in the words of Steve Jobs), that takes really great 3D pictures.  If that can be pulled off, whatchout Nikon, Canon, Minolta, etc.    

Courtesy of an article dated May 13, 2010 appearing in MediaPost Publications Marketing Daily 

MICROSOFT ANNOUNCES THE RELEASE OFFICE WEB APPS, THE CLOUD VERSION OF MICROSOFT OFFICE 2010

In the technology world, the battle to win the small-business workplace is about to heat up.

On Wednesday, Microsoft Corp. is set to launch Office Web Apps, the long-awaited "cloud" version of its Office suite of software, which includes business mainstays Word and Excel. The move is a nod to growing interest in Web-based applications among companies— and Google Inc.'s success in wooing an increasing number of people, especially small-business users, with its Docs online suite.

Office Web Apps will allow users to store files in Microsoft's datacenters—or its "cloud"—rather than on their own computers. The approach, popularized by Google and others, allows users to access their files anywhere from any device via an Internet connection.

The cloud service will be included free with the new 2010 versions of Office and SharePoint, Microsoft's Web-based collaboration software, also due out on Wednesday. A free consumer version, expected out in June, will compete with Google Docs' free, advertising-supported basic version. Docs also has a paid version with additional business features that costs $50 per user per year.

The energized competition between the two giants will benefit small companies by spurring product innovation, while keeping prices low, says Melissa Webster, content and digital media technologies analyst at research firm IDC. With Google providing free-to-cheap software, Microsoft will be especially motivated "to show the value of its advanced functionality," she says.

Companies of all sizes have been embracing the new "software as a service" model over traditional software in a box because the applications tend to be easy to use and a boon to worker productivity and collaboration, especially in this era of mobility. Such benefits are especially valuable to small companies, which tend to have minimal technology expertise and cash for servers and other big-ticket equipment.

"A small business typically does not have an IT staff, so the last thing they want to do is stand up [install] an email server or some other kind of server" —or patch computers or worry about data security and backup, says Rajen Sheth, senior product manger for Google Apps. "They would much rather get down to business and let the IT take care of itself."

But when it comes to basic office software, most small businesses have so far only dabbled with cloud services. This is partly because Office, which is widely used in 97% of organizations, according to IDC, retains a powerful grip on workplaces. But it also reflects the fact that cloud offerings, primarily because of limitations the Web has imposed, have not been as feature-rich as users accustomed to desktop software need or expect.

Luckily, faster connections, advances in browser technology and the lubricant of competition are changing that. Office Web Apps will closely mimic the look, feel and functionality of Office desktop software and work seamlessly with it, Microsoft says.

The company expects many customers will want to use both the desktop and cloud versions. "We're really focused on choice and flexibility," says Phil Sorgen, corporate vice president of Microsoft's U.S. Small and Midmarket Solutions and Partners Group. "We want to give our customers the option, based on how they work," to use whichever product they prefer.

The approach could also help Microsoft preserve Office's hold on company PCs by giving businesses the productivity and cost benefits of the cloud, as well as encouragement to keep, and indeed upgrade, their desktop products. That's key to Microsoft, since Office is its No. 2 cash generator after Windows.

And it could provide a bulwark against steady encroachment by Google Docs. More than 2 million businesses work entirely on Docs, and 3,000 more are switching every day, Google says. And millions more use it on an ad-hoc basis to share individual files online, including Office documents.

Of course, Google isn't standing still. It continues to add features to make Docs richer and more akin to desktop software, even as it tries to retain a fast-loading, lightweight "design for the primarily online world, sometimes offline world," Mr. Sheth says. Docs added 60 new bits of functionality in 2008 and 100 in 2009, and the development pace is accelerating, he says. This year, his team made a number of improvements designed to give Office users more of the functionality and look and feel they expect and more tools for real-time collaboration on documents. And it will soon make it possible for users of Office 2003 and 2007 to integrate Docs into their old desktop software using a plug-in made by DocVerse, which it acquired in March.

With these changes, he says, many more small companies can comfortably skip Office upgrades and "move to Google Docs for their primary platform."

COMMENTARY:  It's about time that Microsoft Office went cloud, but I don't think that the 3 million Google Doc users represent a major threat when you consider the 250-300 million licensed users of Microsoft Office that are out there.  That's a drop in the bucket.

I have to agree with the writer, that Google Docs is sort of a step child to Microsoft lacking the features and robustness of the Microsoft Office Suite.  I do like the convenience, but I don't necessarily want my confidential and valuable Office documents compromised on a Google server.  The recent hacking of Google's servers by a group of Chinese hackers proves my point.  The same goes with Microsoft.

I much prefer the speed of using Microsoft Office on a desktop as opposed to a mobile device using Office at your typical Starbucks or Panera Bread.  A lot of these WIFI hotspots are not secure and their signal strength varies.  Just the idea of doing my banking online strikes fear into my psyche.

With all the individuals using Google apps, you would think that they would have far more than 3 million users.  So I just wonder if this is all much ado about nothing.

Only time will tell how businesses are going to take to the cloud version of Microsoft Office.  You can bet that IT heads everywhere are voicing similar concerns as mine.

Courtesy of an article dated May 12, 2010 appearing in The Wall Street Journal's Small Business

CONGRESS PUSHES FOR REGULATION OF VENTURE CAPITAL FIRMS

Venture capital and private equity firms looked like they would largely escape the regulatory net in Sen. Chris Dodd’s (D-Conn.) financial reform bill, now being debated. But Sen. Jack Reed (D-R.I.) may yet have something to say about that.

Reed, you may recall, back in spring 2009 submitted a bill that would require any private equity, venture capital and hedge fund with more than $30 million of assets to register with the Securities and Exchange Commission and face more stringent regulation. But that legislation was watered down until it excluded VC and PE firms entirely, covering only hedge funds.

Reed is now introducing an amendment to the financial reform legislation, hoping to get some of his original proposals back into it. He still believes both private equity and venture capital firms should be required to register with the SEC, but has backed off that original $30 million size threshold. His amendment now contemplates that managers with $100 million or more of assets under management should be required to register, Reed said on a conference call. The new threshold was adopted because that’s the level currently in the financial reform bill for hedge funds, he said. Reed’s amendment would require firms with less than $100 million in AUM to either be registered and examined by a state regulator, or registered with the SEC.

“We’re going to be very forceful in pushing our position and we hope very much to prevail,” Reed said.

While the hedge fund industry and larger private equity firms have been supportive of Reed’s proposal, the venture industry has opposed it, arguing that its business model is different – it uses no leverage - and that many venture firms are small enough that the cost of registering will hurt their businesses, not to mention those businesses in which they invest.

Emily Mendell, spokeswoman for the National Venture Capital Association, said that the NVCA opposes the amendment along with any other efforts that would “undo the concept set forth for venture capital by Senator Chris Dodd.”

“Venture capital does not create systemic risk and should not have to register,” said Mendell. “We believe that most members of the [Senate Banking] committee agree with Senator Dodd.”

But Reed said that requiring all types of alternative investment funds to register would eliminate the potential problems that might result if one type of firm claimed to be another type of firm to escape the regulatory net. He said he believes regulators do not have the resources needed to evaluate such claims, and that he believes the cost of SEC registration will not be excessive.

“Size and risk have been a problem. And the size of the funds, without regard for their business model, argues for some type of disclosure,” Reed said. “”I don’t think we have the regulatory capacity to evaluate everyone’s business model to see if they’re venture capital-heavy or private equity-heavy.”

COMMENTARY:  I am of the opinion that venture capital firms should not be subjected to SEC registration and regulation.  This would only hurt the availability of venture capital, which is already down about 40% from 2007. 

We should concentrate our efforts in passing legislation to regulate banks and Wall Street investment banking and trading firms.  They are the ones whose greed created the Financial Meltdown of September 2008, and got us into this fine economic mess known as the Great Recession.  

Venture capital firms are somewhat self-regulating, carefully measuring risk and uncertainty, establishing investment criteria, and being very selective in the business startups in which they invest.  The Dot Com boom and bust was uncontrolled greed.   The recession and volatile nature of the stock markets have made quick exits much tougher, if no impossible, to do.

Courtesy of an article dated May 10, 2010 appearing in The Wall Street Journal's Venture Capital Dispatch

SHUTSDOWN: HOLLYWOOD VIDEO SHUTS DOWN REMAINING 1,900 STORES

CLOSED FOR BUSINESS - HOLLYWOOD VIDEO CLOSES DOWN FOR GOOD

Movie Gallery Inc., owner of struggling movie rental chain Hollywood Video, is planning to close its remaining stores and liquidate as consumers increasingly get movies through the mail, vending machines and high-speed Internet connections.

The No. 2 rental chain behind Blockbuster Inc. filed a notice with the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond that it would terminate its business operations after defaulting on a loan from one of its creditors.

An agreement filed with the court says the move to close more than 1,900 remaining stores is in the "best interests" of the company and its creditors. The agreement does not specify a time line. It must be approved by a bankruptcy judge.

Phone calls to Movie Gallery and an attorney representing the company were not immediately returned Monday.

The company, based in Wilsonville, Ore., filed for Chapter 11 bankruptcy protection in February, buckling under the competitive pressure from movies-by-mail service Netflix Inc., DVD kiosk company Redbox and delivery of movies and TV shows over the Internet.

The bankruptcy filing does not include Movie Gallery's Canadian operations.

It was the second trip through Bankruptcy Court in just three years for Movie Gallery. The company first landed there in October 2007, unable to sustain the debt it took on in its $850-million acquisition of rival Hollywood Entertainment Corp. in 2005. Movie Gallery agreed to assume about $350 million of Hollywood Entertainment's debt as part of the deal.

Although the acquisition made Movie Gallery the second-largest rental chain, it has been forced to close more than 2,400 of its stores in the last three years, according to court filings. It had since announced plans to close more stores as part of its restructuring.

Despite moving to shut down unprofitable locations, the company said it continued to see significant losses in 2009. Annual revenue fell $546.3 million, or 28%, to $1.4 billion.

In a court filing, Movie Gallery Chief Restructuring Officer Steve Moore said the company was facing "looming defaults" on its loan agreements. The company listed debts of between $500 million and $1 billion, compared with assets of between $10 million and $50 million.

COMMENTARY:  This comes as no surprise.  Blockbuster not fairing too good either (see my previous post).   Their stock trading at about 40 cents a share.  The era of brick-and-mortar video rental stores is over.  It is all digital now as viewers can download just about any video film or tv program they want.  

 

Courtesy of an article dated May 10, 2010 appearing in The Los Angeles Times 

 

ONLINE VIDEO VIEWING MORE THAN DOUBLES IN THE PAST TWO YEARS

In a typical week, 10% of all U.S. adults watch streaming content online such as videos, TV programs and movies. This percentage has doubled in just the last two years.

Watching online streaming video is becoming ever more popular among adults of all ages. Nonetheless, 18-to-34 year-olds are the most likely to watch online streaming video. In fact, the gap between 18-to-34 year-olds and older adults when it comes to watching online streaming video has continued to increase. In January 2008, young adults maintained a 6 percentage point lead over adults age 35 and older. In March 2010, the lead had increased to 11 percentage points.

Males are more likely to watch online streaming video than females, but females are increasingly involved in this activity as well, with 12% of males and 9% of females watching streaming online video as of March 15, 2010.

Expect the number of U.S. adults watching videos, TV programs and movies online to continue to increase as specialized websites multiply and traditional media websites like NBC.com, ABC.com or TBS.com continue the move towards streaming video content, including full episodes of popular TV shows. Experian Simmons will continue to monitor this and other important consumer trends and share those findings here. To be the first to know when new insights from Experian Simmons DataStream are available request an alert here. 

COMMENTARY:  The numbers do not surprise me.  YouTube had 234 billion video downloads in 2009.  That's approximately 20 billion video downloads per month.  Seems everybody is watching online videos these days.  Driving online video viewing are those damn smartphones (see my post below).  I guess people just have too much free time on your hands.  In spite of this worker productivity has increased.  Blame the economy and slow rate of hiring, but we will save that for a later post.

Courtesy of an article dated May 4, 2010 appearing in Experian Simmons website 

FACEBOOK USERS BECOMING MUCH MORE MOBILE, DOUBLING NUMBERS SINCE MAR 2008

Facebook’s upcoming location-based status update feature will likely be extremely relevant to its users. An increasing percentage of American adults are Facebook users who also access the Internet via their cell phones—a prime target audience for Facebook’s new mobile feature. As of March, 22 2010, 29% of the adult population were facebook.com visitors who also access the Internet via their mobile phone, up from just 12% as of March 24, 2008). However, users are not the only ones to benefit from this new feature.

According to AdAge, McDonald’s will be the first marketer to take advantage of location-based status updates by building an application that will allow users to post featured products from specific restaurants. Experian Simmons DataStream substantiates this marketing decision as McDonald’s customers are increasingly likely to be facebook.com visitors who access the Internet from their cell phones. The same holds true, however, for Starbucks customers. As a matter of fact, Starbucks customers are twice as likely as McDonald’s customers to be facebook.com visitors who access the Internet from their cell phones.

Experian Simmons will continue to monitor this and other important consumer trends and share those findings here. To be the first to know when new insights from Experian Simmons DataStream are available request an alert here. 

*Addendum: On May 7, 2010 there were 7,084,599 Facebook users who liked Starbucks and 2,209,919 Facebook users who liked McDonald’s. McDonald’s offers free wi-fi at more than 11,500 participating restaurants and both McDonald’s and Starbucks feature prominent links to Facebook and Twitter on their homepages.

COMMENTARY:  Those are impressive numbers.  Driving the increase in Internet surfing using cellphones is the increase in smartphones, particularly Apple iPhone and Android-based smartphones, and explosive growth in both Apple and Facebook apps. 

Facebook now has 400 million members.  Big number.  No kidding.   They are about to revolutionize the use of location-based marketing.  Goodbye Forsquare.

I highly recommend subscribing to the Experian Simmons DataStream service by clicking the above link.

Courtesy of an article dated May 11, 2010 appearing in Experian Simmons website