US Tech Lobbying Spend

February 6, 2010

Short honk: If you want to know what it costs to be a squeaky wheel and get it greased in certain situations, you will enjoy InfoWorld’s “Follow Tech’s Trail of Money in Washington.” The big surprise for me was the table’s reporting that Google made the list at number seven on the spending list. The total? $3.2 million. Quite a change from the days when the Googlers showed up in T shirts and sneakers. Oh, number one? Microsoft at $5.8 million.

Stephen E Arnold, February 6, 2010

No money for this one. I don’t even know to whom to report in DC. I will have to track down a lobbyist for guidance. No original thinking for me.

Google and AdSense

February 6, 2010

I found “Most AdSense Publishers Want Google To Disclose Revenue Split” quite interesting. My hunch has been that Google tunes the AdSense revenue splits when it gets a sense of how a quarter is going to perform. I don’t have any evidence of this mathematical jiggering, but it just makes intuitive sense. A Google semi autonomous agent watches a certain value. When it hits a specific threshold, smart software makes an adjustment. Why would AdSense operate differently from the types of methods in use when Google determines which category tag to use for an processed content object.

The article states:

The majority of Google AdSense publishers do want to know the revenue split. Of the 80 responses, 66% said they want to know. Only 6% said they do not want to know. 27% said they do not care.

So what this tells me is that those with AdSense don’t know what percentage of the money Google collects goes to them. That was a bit of surprise to me as well. I think one of the goslings has hooked AdSense into the ArnoldIT.com Web site, but I must confess I don’t pay any attention to the ads or the money. (No wonder one of the goslings has a brand new Mini Cooper S.)

I think a better question is, “Can Google reveal a number that is dynamic and subject to change based on Googley factors?” Probably but there is the downside of making explicit how the semi autonomous methods work in the grubby world of money. The PR impact might be significant. Plus there is the fact that this is not, in my opinion, particularly exciting work.

I want to watch this subject because it could have legs.

Stephen E Arnold, February 6, 2010

No one paid me to point out the shortcomings of my own understanding of AdSense. I will report this to HUD, an outfit with a keen appreciation of accounting.

Microsoft Study Discloses Cost Savings from Avoidance of On Premises Software

February 6, 2010

Talk about a weird study. Read, please, “Microsoft Study Reveals Small and Midsize Businesses Using Hosted Services Have Better Financial Performance.” The idea behind this research is to make a case for cloud computing. For me, the most interesting passage in the write up was:

The SMB IT and Hosted IT Index 2010 commissioned by Microsoft researched 3,193 SMBs in a cross section of private industries in 15 countries. Overall, the findings show greater awareness of the benefits of IT among SMBs and a high reliance on IT across all industries and geographies. The findings indicate a clear path toward better financial performance than for those not currently taking advantage of IT advances such as hosted services.

I concluded that anyone in a small or mid sized business with on premises installations of Microsoft’s ubiquitous software would be better off getting this stuff via the cloud. Great conclusion because this suggests to me that Microsoft’s software is dragging down the financial performance of its customers. What?

Stephen E Arnold, February 6, 2010

Nope, no pay for this write up. I will report this sad situation to the Pew crowd, an outfit familiar with outstanding research.

Azure Chip Consultants Make Clear Why They Are Not the A Team

February 6, 2010

As a former Booz, Allen & Hamilton laborer, I became aware early in my career about the dividing line between the top line consulting firms and the other tiers. Keep in mind that I am now 65 and my memory is failing, but I sure recall the 60 hour weeks, the pressure, and the stressful review processes. I worked for Dr. William P. Sommers, a fellow who knocked off a PhD and an MBA before he was old enough to drink legally. Bright fellow, unlike me. Over the years, I kept in mind my brutal learning curve, moving from Halliburton’s nuclear consulting unit to BAH. Dr. Sommers pointed out that Halliburton NUS was a “C” grade firm. Interesting because at that time Halliburton NUS had 600 employees in the early 1970s, and lots of nuclear engineers. The rest of the staff were good at math, water treatment, and regular engineering stuff. Nevertheless, he told me that I came from a “C” grade firm and would have to work hard to keep my job as his helper.

I can’t imaging what Dr. Sommers would think of the baloney cranked out by some of the second and third tier outfits today. He had great respect for McKinsey, Bain, and BCG but some disdain for firms whose consultants did not work at one of the “A” outfits. Unfortunately he passed his bias on to me, the addled goose.

When I read “Forrester Crimps Bloggers: Epic E2.0 Fail”, I thought of Dr. Sommers. My hunch is that he would have found a way to balance the energy of his team with the opportunities of social media. I don’t think he would have created a situation which allowed a ZDNet columnist to describe examples of clumsiness and document that situation with the names of current and former employees. That’s why there are some outfits that are Grade A and some relegated to the “B” and “C” ranking. The difference is tough to explain. I think one has to be “there” to realize the gulf that separates the “A” or Blue Chip firms from the Azure Chip outfits.

Fascinating.

Stephen E Arnold, February 7, 2010

No one paid me to write this article. I will report this lack of compensation to the Bureau of Labor. With unemployment down, senior managers will have time to review my failure to weasel money from someone.

Mobile Devices and Their Apps: Search Gone Missing

February 5, 2010

VentureBeat’s “A Pretty Chart of Top Apps for iPhone, Android, BlackBerry” shocked me. Not a little. Quite a bit. You will want to look at the top apps for the iPhone, the Android devices, and the BlackBerry gizmos. There is no entry for search. In fact, there is no entry for any app related to reading. What’s this tell me?

First, search is not considered an app. I think people assume that finding stuff on a mobile device is a bit of hunting, some familiar icons, and letting the system spit out what seems to be relevant when looking at a map for pizza and walking around. That’s disappointing because search on a mobile device is important in my opinion.

Second, there is no app at hooks into reading. For those publishers in secret meeting with tablet makers, I have a hunch that readership of books and magazines may not take off like a sky rocket. Perhaps bundling a tablet and a subscription will work in some niches, but I am not sure if a major bump will occur.

Finally, the lists tell me too much about our society. I am delighted that I am an old and addled goose.

Stephen E Arnold, February 5, 2010

No one paid me to write about these lists of what are toys and entertainment applications. I suppose I need to report this sad situation to the Department of Education, a stellar outfit.

Lucene and Integrated Log Data

February 5, 2010

You may find “Into the Cloud: How Search Unlocks Log Metadata to Visualize Your Business Process” interesting if you are an open source technology maven. The idea is that different applications generate log files. When these log files are aggregated, the information that can be searched reveals insights about a business, customers, system issues, etc. The participants are Boomi and Lucid Imagination. Boomi is the “integration cloud company”. You can get more information at www.boomi.com. Lucid Imagination is the company that creates a build of Lucene and Solr that is current, complete, and ready to install. Lucid sells engineering services, and I have a hunch some services will be required to deliver unlocked log data.

After listening to the program, I had several questions:

First, the notion of integrating log files is a good one but I wondered how long it takes to suck big log files, determine deltas, and then update the indexes.

The second question pivots on the usefulness of search for log file analysis. In my experience, we have had to jump through hoops to concatenate certain query results, perform sub queries, and then crunch data. The bigger the log files, the more work these steps were.

Listen to the podcast. The idea is interesting, and I think the market uptake on this idea will be the proof of the pudding.

Stephen E Arnold, February 5, 2010

No one paid me to listen to the podcast or write this article. Too bad. I will report this failure to get paid to the Department of Labor. Too bad I am not a child. I could report myself for unfair practices.

Another Shot across the Bow of the Oracle Tanker

February 5, 2010

Oracle, in my opinion, is similar to those giant oil tankers that one can see in ports around the world. Some—like the vessels parked off the west coast of England—are just waiting for an economic uptick. Others dribble oil as they grind thousands of miles from one place to another. Every once in a while, one of these oil tankers dumps its cargo and makes headlines.

Oracle is an oil tanker in the enterprise software world. The company’s core technology is expensive to scale, mostly in my view because it, like DB2, was designed and built after the Korean War. Once the Oracle tanker leaves Sea World Parkway, it is tough to stop and almost as difficult to turn around quickly.

image

Source: http://upload.wikimedia.org/wikipedia/commons/f/fd/Oil_tanker_Omala_in_Rotterdam.jpg

There are some positives to the Oracle solution. Clueless investors like to hear “Oracle is our database engine” without understanding the implications of that phrase. I suppose the investors could ask the Salesforce.com engineers or the Amazon.com engineers who babysit the Oracle tanker at the core of their organization, but most just resonate with the brand name. And if the licensee has the human and financial resources, Oracle can scale. Presumably Oracle’s owning Sun Microsystems will help with the one-stop scaling shop, no non-Oracle hardware required going forward. And for any given problem, Oracle has a solution. Middleware. No problem. Search. No problem. XML capability like Mark Logic’s no less. No problem. Applications. No problem. ERP. No problem. Consulting. No problem. Google Search Appliance. No problem.

The downsides are easy to summarize. You need an Oracle DBA or multiple Oracle DBAs to keep the tanker shipshape. You need money. You need consulting support from Oracle. Getting help off the reservation can lead to some tense meetings with the Sea World crowd. Once in a while the “no problem” becomes a problem, and I will leave it to your own business savvy to figure out the implications of an errant Oracle service.

When I read “Netezza Teams Up with NEC to Battle Oracle”, three thoughts crossed my addled goose brain:

  1. Oracle is getting some competition from an unexpected pair, NEC and Netezza. Will HP, Dell, and Cisco find data management partners too? I think this will be fun to watch.
  2. What will IBM do? IBM’s PR department has been working overtime on the mainframe renaissance which seems to be of minor luminescence. IBM cannot sit on its hands and allow NEC and Netezza to go after Oracle and probably DB2. Six of one, half dozen of the other.
  3. Will the Google roll out its enterprise data management service, which of course does not exist, cannot possibly be a service, and has absolutely no traction within the Google management team?

Bottomline: Life is going to force Oracle to become even more aggressive. I am glad I am in Harrod’s Creek and not involved in procuring oil tanker software any longer.

Stephen E Arnold, February 5, 2010

No one paid me to write about software in sea faring terms. I will report this sad fact to MARAD.

Exalead Reports Banner Year

February 5, 2010

Exalead contacted me after reading the posts about Autonomy and Coveo. The essence of the message from the Paris-based, search-enabled-applications company was,

Despite the economic downturn, Exalead continued its growth in 2009 with a worldwide revenue of $22,7M. Software sales grew by almost 20% in France and by 30% in the US, which is a great source of satisfaction to us. We added 50 new references to our global customer base, achieving a 25% growth. (Exalead source)

I followed up and learned that the experienced a strong demand for its professional services revenues. The company is, according to my Exalead source, a leader in “SBA”. This acronym means search-based applications.

Exalead indexes the Google Web logs on the ArnoldIT.com Web site as part of my team’s effort to provide demonstrations of participating vendors’ technology. You can see the Exalead search system with entity extraction and other features at http://overflight.labs.exalead.com/.

Stephen E Arnold, February 4, 2010

No one paid me to write this short item. I will demand that the Exalead CTO provide me with a Diet Pepsi next time I am in Paris. No wine, please. The goose is an alcohol-free zone, avoids paté, and usually steers clear of CDG. I will report this lack of payment to the Department of State. Bring back American fries!

SSN Minute Now Available

February 4, 2010

The Beyond Search team has rolled out its first video feature for its new social media information service, Strategic Social Networking. The first video in the series is “A Plan Is Needed” is available from the SSN splash page or via YouTube. Each video tackles one topic in one minute.

ssn minute

The feature will be posted each Thursday and different members of the SSN editorial team will participate. We will be rolling out video advertorials later this year. If you want information about this sales method, write ssnblog@gmail.com.

Stephen E Arnold, February 4, 2010

This is a shameless marketing message paid for by me for me to promote me. I will report this the group in DC monitoring the Toyota issue. Speed to the YouTube.com video too.

Autonomy Hits $740 Million in Revenues

February 4, 2010

The lads from Cambridge have, according to the Denver Business Journal, hit $740 million in revenue. You must read “Autonomy corporation plc Announces Results for the 12 Months and Fourth Quarter Ended December 31, 2009.” The addled goose points out that Autonomy is a heck of a marketing company. Now its approach to growth is paying off. Google does a good job staying in the headlines, but its financials don’t shed much light on its revenues from the Google Search Appliance. Microsoft Fast search revenues are even more difficult to discern. Oracle and search are the most difficult to pin down. Endeca is privately held, so the figures circulating for that firm are tough to validate. Most of the other players in the enterprise search sector are working to catch up with Autonomy, but that will be hard for three reasons:

First, Autonomy grows via an inorganic method. The firm buys a content sector and then converts that firm to the Autonomy way of processing information. The result is an increase in sales opportunities plus whatever upside in cash and revenues accrue from the deal. Autonomy is better at this game than OpenText, which has a similar approach.

Second, Autonomy has a wide range of market sectors into which it can push its products and services and from which it can take great ideas and offer them to existing Autonomy clients. A good example is the Zantaz business which put Autonomy in the hosted services business.

Third, and it is a repetitive point, Autonomy is a savvy marketer. The company has a track record of sniffing trends and moving quickly.

There are some issues that I have noted in my write ups for clients and my search studies. With each acquisitions, Autonomy’s engineers have more integration and other fiddly code tweaks to undertake. Go too quickly and Autonomy gets in front of the market. Go too slowly and Autonomy has to spend to play catch up. This is a balancing act and so far Autonomy has been doing an okay job.

In addition, there is a large installed base of Verity, Autonomy, Interwoven, and other software plumbing. Customer support is one challenge. The other is that some competitors can focus resources on a particular client of niche and deliver a combination of price and quality that can siphon off some accounts. So far Autonomy has been able to handle these thrusts, but going forward, one of these competitors might find a way to take some bites out of market sector that Autonomy is unable to keep in the stable.

Finally, there is the pressure to make sales. This can fatigue marketing people who must create compelling messages, clients who must listen to sales presentations, and sales professionals who have to bring home the new accounts. Once again Autonomy has been able to keep its sales force focused, but as the company grows larger, plain old management becomes an ever larger challenge.

When will Autonomy hit $1.0 billion in revenue? When it makes its next big acquisition. Rumors are floating around the goose pond as I write this. Honk.

Stephen E Arnold, February 4, 2010

No one paid me to write down these obvious comments about the financial and managerial health of Autonomy. I will report non compensation to the National Institutes of Health.

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