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	<title>Joseph Dwyer &#187; Strategy</title>
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	<link>http://www.josephdwyer.net</link>
	<description>inveterate entrepreneur, and occasional pontificator</description>
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		<title>Four things holding back Chrome OS</title>
		<link>http://www.josephdwyer.net/2009/07/08/four-things-holding-back-chrome-os/</link>
		<comments>http://www.josephdwyer.net/2009/07/08/four-things-holding-back-chrome-os/#comments</comments>
		<pubDate>Thu, 09 Jul 2009 00:10:53 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Strategy]]></category>

		<guid isPermaLink="false">http://www.josephdwyer.net/?p=77</guid>
		<description><![CDATA[The blogosphere has been speculating on the future of the &#8220;Google OS.&#8221; Many thought it would be based on Android, their open source telephone platform. When I read about Chrome&#8217;s protected memory spaces (via acquisition of GreenBorder in 2007 or so), I thought that it sounded more like an operating platform than a web browser. [...]]]></description>
			<content:encoded><![CDATA[<p>The blogosphere has been speculating on the future of the &#8220;<a title="Google blog on Chrome OS" href="http://googleblog.blogspot.com/2009/07/introducing-google-chrome-os.html" target="_blank">Google OS</a>.&#8221; Many thought it would be based on  Android, their open source telephone platform. When I read about  Chrome&#8217;s protected memory spaces (via <a title="ZDNet on Google's  acquisition of Greenborder" href="http://blogs.zdnet.com/security/?p=241" target="_blank">acquisition  of GreenBorder</a> in 2007 or so), I thought that it sounded more like  an operating platform than a web browser.<span id="more-77"></span></p>
<p>Protection allows much more complex applications to run with lower  risk of crashing or affecting other applications. I don&#8217;t know about  you, but I haven&#8217;t had too many problems with this yet. But I guess  Google thinks (probably rightly so) that it&#8217;s going to be an issue as  applications move to the cloud.</p>
<p>By owning its own browser, Google can have much more influence on  which features are built into browsers. I think it&#8217;s only a matter of  time before Firefox and the other browsers include protected memory. And  Chrome&#8217;s emphasis on fast javascript rendering is definitely creating a  bit of a (great) arms race in that regard.</p>
<p>All of this dovetails with Google&#8217;s <a title="CNET commentary on  Google browser strategy" href="http://news.cnet.com/8301-13512_3-10282844-23.html" target="_blank">strategy of pushing toward browser based applications</a>.  Their Google Apps just came out of beta, and are making a good run at  the enterprise&#8230; even threatening Outlook (long term). Google&#8217;s  strategy is simple, and probably inexorable. They can provide high  quality solutions for free because they make money from ancillary  sources, e.g., advertising.</p>
<p><img title="More..." src="http://www.fusio9.com/blog/wp-includes/js/tinymce/plugins/wordpress/img/trans.gif" alt="" /></p>
<p>Meanwhile, Microsoft is building <a title="Official MS Office 2010  blog" href="http://blogs.technet.com/office2010/default.aspx" target="_blank">Office 2010</a> to include web-based versions of Word,  Excel, etc. However, MS Office will cost money, and over time the  feature discrepancies are likely to narrow. There&#8217;s also the issue of  fundamental focus: Microsoft just doesn&#8217;t really seem to get it. Or at  least they&#8217;re deeply afflicted with the innovator&#8217;s dilemma.</p>
<p>One way to look at this is <a title="Wikipedia - fat client" href="http://en.wikipedia.org/wiki/Fat_client" target="_blank">fat  client</a> versus <a title="Wikipedia - thin client" href="http://en.wikipedia.org/wiki/Thin_client" target="_blank">thin  client</a>. One complaint I have about Windows is that it has gotten  very &#8220;fat.&#8221; Google&#8217;s Chrome OS is much thinner, but it&#8217;s not a true  &#8220;thin client.&#8221; Google Chrome is based on a Linux kernel, but it&#8217;s ultra  simplified. It sounds like just enough of Linux to run a web browser and  little more. Instead of the heavy, feature-rich nature of Windows,  Google is betting that users want fast, easy, and (mostly) free  applications on the web.</p>
<p>So, are we all going to be using Chrome OS by this time next year? My  guess is no. It will be popular, particularly on low-end netbooks. But  there are 4 major limiting factors that I see:</p>
<h3>BANDWIDTH:</h3>
<p>Our network infrastructure renders certain applications (such as  video) very hard to manipulate efficiently through a browser  application. I don&#8217;t think video, image, or audio intensive applications  are going to the web any time soon (at least for professional  purposes). Maybe if we could <a title="1Gbit internet access in Japan  only $50" href="http://www.littlefishsupport.com/news/broadband/20080928/1gbps-internet-speed-now-available-in-japan" target="_blank">improve our network to the levels they have in Japan</a>,  things will be different.</p>
<h3>LATENCY:</h3>
<p>When I click, how quickly does the server know it? And how quickly  can it get the proper response back? Desktop apps still have browser  apps beat when it comes to responsiveness. I&#8217;m an incredibly impatient  user, and I brook no defiance from my (always too slow) computer. I  think a lot of others users feel the same. When will this be fixed? I  don&#8217;t know. Rich media interfaces can be optimized to reduce latency,  but until we fundamentally improve the network infrastructure we will be  dealing with this issue.</p>
<h3>BROWSER LIMITATIONS:</h3>
<p>Browsers have limitations in terms of the interfaces they can  support, and security restrictions. Rich media solutions such as Flash  can help interface a lot, but there are still issues remaining.  Javascript is still too slow for highly complex interfaces. Big <a title="Adobe Flex" href="http://en.wikipedia.org/wiki/Adobe_Flex" target="_blank">Flex</a> apps still take too long to download. Of course, this is all improving  rapidly, and I don&#8217;t think it will be a limiting factor for much longer.</p>
<h3>USER HABITS:</h3>
<p>Computer users are habituated to local applications. In particular, I  think we are used to local storage. If Chrome OS permits only remote  storage, users may be reluctant to use it. And until a broader array of  web applications are available, many users may put off switching to  Chrome OS for everyday computing.</p>
<h3>Conclusion</h3>
<p>I think many people will desire a Chrome OS &#8211; in addition to a  desktop. A highly portable device dedicated to surfing the web? I want  one. My iPhone is great, but it is just too small and too slow. I think  the upcoming <a title="Crunchgeat Crunchtablet web browsing hardware" href="http://www.crunchgear.com/2009/04/09/crunchtablet-hits-the-net-a-little-early/" target="_blank">Crunchtablet</a> will tap into this need. I want one,  but only in addition to my desktop. For now.</p>
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		<title>Effortless scalability</title>
		<link>http://www.josephdwyer.net/2008/04/16/effortless-scalability/</link>
		<comments>http://www.josephdwyer.net/2008/04/16/effortless-scalability/#comments</comments>
		<pubDate>Wed, 16 Apr 2008 23:19:12 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Strategy]]></category>

		<guid isPermaLink="false">http://www.josephdwyer.net/?p=57</guid>
		<description><![CDATA[Effortless scalability. I want it. I&#8217;ll pay for it. Planning a smooth scale-out growth of a web application can be a nightmare. You are never certain how popular the application will be. You can&#8217;t tell when the users will actually use the service. When your site hits the first page on Digg, you feel elation and [...]]]></description>
			<content:encoded><![CDATA[<p>Effortless scalability. I want it. I&#8217;ll pay for it. Planning a smooth scale-out growth of a web application can be a  nightmare. You are never certain how popular the application will be. <span id="more-57"></span>You can&#8217;t tell when the users will actually use the service. When your  site hits the first page on <a href="http://www.digg.com" target="_blank">Digg</a>, you feel  elation and terror at the same time. Even worse, it can be very  difficult to estimate how your users will use the site, how many videos  they will watch, and how many database updates they will trigger.</p>
<p>It is easy to set up a single-server web application, or even to  separate the major tiers onto separate servers. But when it comes to  scaling out to more servers, particularly more database servers, life  gets difficult. You face data concurrency issues, latency challenges,  failover needs, and backup requirements. Solving each of these is  complex, time-consuming, and often expensive.</p>
<p>None of this is conducive to building the next big Internet startup.  Solving the scaling issue is a necessary evil&#8230; for now. In my opinion,  whoever fixes it will make a heap of money. It&#8217;s a commodity problem.  Someone ought to fix it.</p>
<p><img title="More..." src="http://www.fusio9.com/blog/wp-includes/js/tinymce/plugins/wordpress/img/trans.gif" alt="" /></p>
<p>The cloud computing services (such as <a title="Amazon Web Services" href="http://aws.amazon.com/" target="_blank">AWS </a>and now <a href="http://appengine.google.com" target="_blank">Google AppEngine</a>)  are the first steps towards effortless scalability, but they leave a  lot to be desired. With a combination of <a title="Amazon EC2" href="http://aws.amazon.com/ec2/" target="_blank">EC2</a> and <a title="Amazon Simple Storage Service" href="http://aws.amazon.com/s3/" target="_blank">S3</a>, you can build a very credible Linux (or even  Windows with emulation) solution that can scale with reasonable ease and  cost efficiency. However, you still have to bake your own solution for  load balancing, database clustering, and server provisioning. Amazon&#8217;s <a title="Amazon SimpleDB" href="http://aws.amazon.com/simpledb/" target="_blank">SimpleDB </a>is  not a great database alternative (it&#8217;s not really a database in my  opinion), and has some limitations (eventual consistency, data type  limitation) that require a substantial layer of custom code to serve the  needs of most applications.</p>
<p>I want a better solution. I suppose the market is heading for it, but  just in case, I&#8217;m going to whine until I get it. I want effortless  scalability.</p>
<p>What is effortless scalability? I build my application on my local  machine. Once it&#8217;s working, I upload it to the cloud, assign it a URL,  and I&#8217;m done. I get 100 visitors, I pay a bit. I get 10 million  visitors, no problem (although I pay a lot more). Some key requirements:</p>
<ul>
<li>No server requisitioning&#8230; computing resources are allocated  automatically as needed</li>
<li>Built-in database scaling, without the limitations of SimpleDB</li>
<li>Automated load balancing, with configurable settings for picky  developers</li>
<li>Automated data storage that looks like a file system to me (think  cPanel like you would see in a shared hosting environment)</li>
<li>Flexible stack support (check out <a title="CohesiveFT Elastic  Server on Demand" href="http://www.cohesiveft.com" target="_blank">CohesiveFT </a>for  an example of how that might work)</li>
<li>Automatic failover</li>
</ul>
<p>Amazon Web Services is a good start. A highly scalable relational  database in the cloud would be a great next step. Or at least a cloud  datastore that more closely approximates the capabilities of a  relational database, and abstracts away the complexities from the  developer.</p>
<p>Some will argue that one of the things that makes Amazon Web Services  so powerful is its very simplicity. Complexity abstracted away from the  developer will inevitably accrue to the cloud. That is likely true,  although from an allocation of resources standpoint, it makes more sense  than requiring developers to solve the same problem over and over.</p>
<p>Solutions such as <a href="http://www.mediatemple.net/" target="_blank">Media Temple</a> only chip away at the problem, for example offering dedicated MySQL <a href="http://www.mediatemple.net/webhosting/gs/mysql-containers.htm" target="_blank">containers </a>as their database scaling solution. How  can that support a heavy duty site?</p>
<p>Anyway, someone please turn application scaling into a click of a  button. I&#8217;ll be happy to pay for it.</p>
<p>[<em>Disclosure: I have a relationship with CohesiveFT mentioned in  the post through my role at OCA Ventures, a venture firm that has an  investment in the company.</em>]</p>
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		<title>The User Participation Hierarchy</title>
		<link>http://www.josephdwyer.net/2008/04/05/the-user-participation-hierarchy/</link>
		<comments>http://www.josephdwyer.net/2008/04/05/the-user-participation-hierarchy/#comments</comments>
		<pubDate>Sat, 05 Apr 2008 22:59:56 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Social Media]]></category>
		<category><![CDATA[Strategy]]></category>

		<guid isPermaLink="false">http://www.josephdwyer.net/?p=40</guid>
		<description><![CDATA[Despite the financial and market challenges of the dot-com crash, some companies not only survived, but flourished. Many new internet sites also emerged. Google hurtled past incumbent search engines like Yahoo and AltaVista. EBay grew steadily. Friendster and then MySpace appeared without warning. In 2005, YouTube began its meteoric rise. These sites all share one [...]]]></description>
			<content:encoded><![CDATA[<p>Despite the financial and market challenges of the dot-com crash, some companies not only survived, but flourished. Many new internet sites also emerged. Google hurtled past incumbent search engines like Yahoo and AltaVista. EBay grew steadily. Friendster and then MySpace appeared without warning. In 2005, YouTube began its meteoric rise.<span id="more-40"></span></p>
<p class="Body">These sites all share one thing in common: they are to one extent or another <strong>social web ventures</strong>. These ventures harness the social interests of their customers to create value, enabled by an Internet platform. This category includes obvious players such as MySpace, YouTube, Flickr, Wikipedia, and Digg. A less obvious example is eBay, a sort of social commerce site where reputation determined by other users plays one of the key roles in the platform’s success.</p>
<p class="Body">But what are the factors that differentiate a successful social web venture from a bust? Our user participation hierarchy provides the beginning of a framework for this sort of analysis.</p>
<p class="Body"><!--more--></p>
<h3>The User Participation Hierarchy</h3>
<p>Traditionally, mainstream media content has been created by a few select entities. Hollywood studios, big record labels, newspaper and television journalists created small libraries of content and generated significant value by attracting large audiences through limited distribution channels like cinema chains, music stores, and television networks. This top-down value creation model concentrated power in the hands of select creators and distributors.</p>
<p>At the same time, consumers created content, like photos and written content, which were shared primarily with their friends and family. Yet the mass distribution of this user-generated content was limited by technological constraints.</p>
<p>In recent years, these technological constraints have been removed. The increasing comfort of consumers with online activity has changed the way that content is consumed. Traditional media, like television shows and movies, are now accessible online and can be viewed on demand anytime by consumers. At the same time, user-generated content can now be shared with a mass audience, setting off an explosion of new types of content like blogs, social imaging sites, wikis, and online videos. This online phenomenon is changing the rules of media creation and creating a new hierarchy of participants &#8211; creators, distributors, collaborators, and consumers. It is also rapidly blurring the divide between the consumers and the creators as consumers move up the hierarchy through collaboration, distribution, and creation.</p>
<p style="text-align: center;">
<p><em>Creators</em>: Person(s) who define and create the original content. These people seed the original idea and occupy the top tier of the user participation hierarchy. Based on the frequency distribution there are mainly two types of creative activities: commercial and non-commercial. The commercial (typically mass media) creators occupy a narrow high traffic band. Non-commercial users (typically individual and purpose specific creators) create the majority of the content and occupy the long tail.</p>
<p><em>Distributors</em>: Person(s) who provide outlets and utilize channels for consumption of content. These people are credited with cross-fertilization of the content which they take from original channel and inject into other channels. In some sense they work as filters by cross-planting content that is high quality and provides value. Distributors use word of mouth to spread ventures, ideas, websites, and content.</p>
<p><em>Collaborators</em>: Person(s) who add secondary value to the content (e.g. reviews, tags, or comments). The value added is highly dependent upon the level or service and options provided by the social ventures. An ideal website would make it easier for consumers to become collaborators. Collaborators could themselves be subdivided based on level of involvement – tagging, rating, commenting, reviewing, and responding.</p>
<p><em>Consumers</em>: Person(s) who passively consume content without adding any value to the content itself. But we would point out that consumers in fact do passively add value to the creators by spending time on the content. Thus each view constitutes a value activity for the content and the website. The consumption activities are also mainly of two types based on frequency distribution: a narrow band where high frequency of unique consumers occurs and the long tail where most of the consumption takes place.</p>
<h3>Social web disrupts the status quo ante</h3>
<p>Social web sites introduce the means for a much broader group to participate in creation, distribution, and collaboration. As users move up the user participation hierarchy, their participation expands to include additional roles. In traditional media, creators, distributors, and collaborators comprise a minority of the market, and a relatively small percentage of the user population falls into those categories.</p>
<p>The social web dramatically increases the scope of involvement, bringing a broader array of perspectives, interests, and skills to the creation of original content. This evolution of the content creation model creates a substantial increase in consumer utility through greater variety and volume of content.</p>
<p>Why is the user participation hierarchy so important? Because it leads to useful insights into why certain social web ventures were more successful than others. The successful ventures consistently followed two rules:</p>
<p>1. Focus on providing value to consumers<br />
2. Encourage and facilitate consumer movement up the hierarchy</p>
<p>Stay tuned for a follow-up post examining why these rules are so important, and how to assess the value of a social web venture.</p>
<p style="text-align: left;"><em>Note: This article derives from a paper I co-authored in 2007, &#8220;Understanding Key Success Factors for Social Web Ventures&#8221;.</em></p>
<p class="Body">
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		<title>How far ahead of the chasm am I?</title>
		<link>http://www.josephdwyer.net/2008/03/20/how-far-ahead-of-the-chasm-am-i/</link>
		<comments>http://www.josephdwyer.net/2008/03/20/how-far-ahead-of-the-chasm-am-i/#comments</comments>
		<pubDate>Fri, 21 Mar 2008 02:20:03 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Posts]]></category>
		<category><![CDATA[Strategy]]></category>

		<guid isPermaLink="false">http://www.josephdwyer.net/?p=21</guid>
		<description><![CDATA[This is my first blog post. Ever. I should have done this years ago. Apparently, the first bloggers started at it in 1994, around the same time I began my first technology startup, a web consultancy. Although I was knee deep in the web, I had never heard of blogging, and was sleeping about four hours [...]]]></description>
			<content:encoded><![CDATA[<p>This is my first blog post. Ever. I should have done this years ago.  Apparently, the first bloggers started at it in 1994, around the same  time I began my first technology startup, a web consultancy.<span id="more-21"></span> Although I  was knee deep in the web, I had never heard of blogging, and was  sleeping about four hours a night. No blogging for me at that time.</p>
<p>By 1999 when blogging became more popular, DDS (the unfortunately  unappealing acronym for my first startup) had grown so much that I had  to split it into two companies with a total of perhaps 60 employees. I  was also an executive board member and CTO of a venture backed online  mortgage company. In retrospect, I probably would have both enjoyed and  benefited from starting a blog at that time. But I was too busy, or at  least that is what I told myself.</p>
<p>Which leads us to the question, &#8220;<em>How far ahead of the chasm am I?</em>&#8221;  I am speaking of <a title="Crossing the Chasm, by Geoffrey Moore" href="http://books.google.com/books?id=yJXHUDSaJgsC&amp;dq=geoffrey+moore+chasm&amp;pg=PP1&amp;ots=KSLFj4V9_l&amp;sig=tBpMNNQ0GnURQ6QPaiin7mq7rb4&amp;hl=en&amp;prev=http://www.google.com/search?q=geoffrey+moore+chasm&amp;ie=utf-8&amp;oe=utf-8&amp;rls=org.mozilla:en-US:official&amp;client=firefox-a&amp;sa=X&amp;oi=print&amp;ct=title&amp;cad=one-book-with-thumbnail#PPP1,M1" target="_blank">Geoffrey Moore&#8217;s chasm</a>, of course. Am I an  enthusiast or a visionary? Or (shudder) am I part of the early majority  (the first post-chasm group).</p>
<p>My wife would like to peg me as the earliest of enthusiast adopters,  always trying out the newest and uncertain technologies. As evidence,  she would present the very nature of Blir, one of my more successful  (prior) companies.</p>
<p><img title="More..." src="http://www.fusio9.com/blog/wp-includes/js/tinymce/plugins/wordpress/img/trans.gif" alt="" />Blir  was a custom software development and technology strategy  consulting firm. For clients such as <em>Albertson&#8217;s</em>, <em>Exodus  Computing</em>, and <em>Bain &amp; Company</em>, we cut deep into the  bleeding edge of technology to find ways to improve performance or  create new business opportunities. The technologies we used were  typically so new that our clients had very few people to turn to for  implementing them. It was, of course, a critical part of the way we won  business against the much bigger players in the market.</p>
<p>In response, I would point out that while we used cutting edge  technology, our goals were eminently practical. Enthusiasm for the  technology itself was far less important than excitement about what it  could <em>do</em> for a company. In 1996-97 I had failed with an angel  backed e-commerce marketplace. That (hard) lesson taught me to think  twice about technology opportunity. Part of Blir&#8217;s marketing was that we  could leverage our past failures to benefit our clients. The web, after  all, was still a very woolly and frightening place.</p>
<p>By now, I can tell far too many stories about how uncertain web  technology and startup businesses can be (mine included). Have these  experiences changed me? Made me more reluctant to jump into new  technologies? For example, I have put off purchasing an iPhone until  version 2 comes out (I want 3G support). Also, I&#8217;m rarely the one  playing with the latest nightly builds of an open source project. I go  straight to the most stable release, and stick with it until there&#8217;s a  reason to change.</p>
<p>As a serial entrepreneur (and sometime venture capitalist), it is my  job to keep abreast of the latest technology. I like to think that I&#8217;m  in the &#8220;visionary&#8221; bucket of adopters, which is where I think people  such as I belong. But are hard knocks pushing me back along the adoption  curve? Am I becoming a part of the &#8220;early majority&#8221; of adopters? My  wife would tell you no, but it&#8217;s definitely something I&#8217;m keeping an eye  on.</p>
<p>Readers, where are you on the adoption curve? Where do you think  entrepreneurs should be?</p>
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