Gearheads: The Sterling Communications Blog

Cloud Computing - The Next Disruptive Technology?

Change not only seems to be the operative word during the presidential elections, but it appears to be emminent for the technology industry according to Steve Ballmer's Cloud Computing memo titled, "A Platform for the Next Technology Revolution". I was very interested to read this in Patrick Thibodeau's recent Computerworld article as it also references Nicholas Carr, a prolific writer and Harvard Business Review Professor who just published a couple of books on Cloud Computing titled, "Does IT Matter?" and "The Big Switch: Rewiring the World, from Edison to Google". I recently had the pleasure of seeing Nicholas Carr speak at the last German and American Business Association event on Cloud Computing, is it ready for the Enterprise?

I was very intriqued by Nick's presentation on his book "Does IT Matter?", as I thought it had a lot of relevance in today's world where we are looking to reduce our carbon footprint, share resources and become more efficient. In summary, Nick compares the evolution of IT to the evolution of the electrical grid. Both are very similar in that they can be supplied centrally over a network. Today, many enterprises don't share corporate servers, storage and labor and as a result 65 - 80% of the resources are wasted. Nick believes that if these resources were shared, companies could reduce their CAPEX substantially. I would think this is definitively a trend that would appeal to companies operating in a depressed economy.

According to Nick, Cloud Computing has already arrived through Web 2.0 consumer applications, SaaS and virtualization. In fact, Clickability, one of our SaaS clients, has been running their business in the cloud for several years. Nick and as do I, believe that once certain SLAs, security issues and business model standards have been met, Cloud Computing will become mainstream. It might just be the next disruptive technology we've all been waiting for.

The changing face of technology media, part deux

A few weeks ago, I wrote about the decline in technology coverage by the local print media here in Seattle. Days later, two of the Seattle Post Intelligencer's star tech reporters, John Cook and Todd Bishop left the PI to form a new online venture under the umbrella of the Puget Sound Business Journal. This week they unveiled TechFlash, which promises to cover the technology industry across the Northwest.  Cook and Bishop are joined by Eric Engleman who also covers technology for the PSBJ.  It appears that Cook will continue to cover venture capital and start-ups while Bishop will continue to cover Microsoft, mirroring the beats they had at the PI.  Presumably, Engleman will cover everything else. According to Cook, if TechFlash succeeds here, American City Business Journals, the parent company of the PSBJ, might consider franchising the idea to other tech-heavy regions. American City publishes more than 40 business-focused weeklies across the country.  

In the Seattle area, TechFlash will go head-to-head with Xconomy, which has quickly established itself as a must-read for the local technology community. In addition to Seattle, Xconomy has a presence in Boston (where it started) along with a newly opened bureau in San Diego.  

Meanwhile, tech coverage in the Seattle Times and PI continues to dwindle.  Both papers have suffered from declining circulation and revenues in recent years (and, in the case of the Times, a costly - and failed - attempt to abrogate a joint operating agreement with the PI) leading to major staff cuts. One rumor making the rounds is that the Seattle Times is about to eliminate its stand-alone business section, where technology stories usually appear.  The Boston Globe announced a similar move just days ago.  

 TechFlash and Xconomy show that there's a clearly a market for in-depth local coverage of technology.  It's a shame that local newspapers can't figure out how to play in it.

Yin and Yang...

In these trying economic times, when all you read and hear is about fear, uncertainty, doubt and layoffs, I was happy to read Rafe Needleman's recent post about technology companies that are still hiring.  It's good to see that some companies are doing well and contributing to the economic engine. I guess with everything in life, there is another side to the story.

Sad Message from Jerry

Well, we knew it was coming, but here's the Yahoo layoff memo that Jerry Yang issued yesterday. I have to believe that Yahoos are now busy either frantically updating their resumes or sticking their heads in the sand and hoping that the 10% global workforce reduction won't apply to their jobs. I bet the thought of being a Microsoft employee doesn't sound quite so bad. And then there's the investor reaction to the quarterly numbers and Jerry's commentary about "unlocking shareholder value." With Yahoo shares down 48% this year, he'd better unlock that value pretty soon -- while there's still value left!

And the Fat Lady STILL Isn't Singing!

While Microsoft's official stance is that the company has "no interest" in acquiring Yahoo! at this point, Steve Ballmer's comments today at Gartner ITExpo might indicate otherwise.  And, with Yahoo!s shares hovering around a 6-year low (though Ballmer's comments have given it some lift this afternoon), seems to me there could be yet another "bailout" of sorts on the horizon.

Not that I'm one to say I told you so, but...

AIG PR FUBAR

• Dumb PR move: AIG throws a half-million-party the day Congress approves an $85-billion bailout for the insurance firm.
• Smart PR move: AIG cancelled another lavish party after rebukes from Congress.
• Dumb PR move: AIG considered buying advertisements to explain its position.
• Smart PR move: "To spend the taxpayer's money on an expensive ad campaign to apologize for how you used taxpayer money leaves you open to further attacks," a consultant wrote in an email for the CEO.
• Dumb PR move: The consultant accidentally emailed the message to the news organization Bloomberg.

R.I.P., Free TV

In a previous post I discussed some of the possible problems associated with the upcoming transition to digital TV on February 17. Now that I’ve splurged on a 42-inch HD digital set from Samsung, I can speak from first-hand experience: My reception was better on my analog set. Yes, the clarity and color of the digital picture is fantastic — on the few stations whose (weak) digital signals are picked up by the rabbit ears on my antenna booster. Luckily, I’m a huge PBS fan, and it’s a good opportunity to practice my Spanish listening comprehension. In theory I’d get better reception if I bought an even bigger antenna, but I’d really need a rooftop one (and I live in an apartment building). So, Comcast is getting a new customer in November, since AT&T U-verse doesn’t serve my area (yet).

Wilmington, N.C. agreed to be the test market for going all-digital. As reported by the AP and many other media outlets, a couple of thousand people complained to the FCC within the first few days of the citywide DTV switch on Sept. 8. If the same percentage of people were to call after the national switchover, we’re talking over a million people. At a senate committee meeting last week, the FCC chair said he needed at least another $20M to address the challenges involved in the transition. Add it to our bill …