Raja Jasti’s Blog - Renaissance Thinking

April 23, 2009

Cost of doing startups

Filed under: Entrepreneurship — Raja @ 9:46 am

I have been doing startups for close to 15 years. When you have a startup, it can consume you. This is particularly true if you have raised external funding, because you feel a tremendous sense of responsibility. One of the things that can get affected by all this is your health. My fitness and health were affected when I was running WebScope. I am still trying to recover my fitness and health. But I have a better appreciation for leading a balanced life and not get consumed by the startup.

There is a touching blog post on this topic by Jason Nazar, founder of DocStoc. If you are an entrepreneur, don’t miss it.

There is only one way I can imagine running a startup, obsessively giving it everything you’ve got.  In my opinion its what separates the winners from everyone else, and it’s the only way I’d ever be able to look back on this experience without regret.  But that kind of dedication comes with a price.  And anyone who has chosen a path of starting a business can tell you the unintended consequences of startups. 

For the past 2 years I’ve neglected my health, family, and friends.  For most of my adult life, I was about 165 pounds.  I’m almost 210 pounds these days, and trust me when I say my body’s not meant to carry this much weight. 2 years ago I was running 6 miles a day 3 times a week, and playing competitive basketball and tennis. 

After we raised our first round of capital I regularly started staying in the office until 2am.   I found myself so physically and mentally spent by the weekend that I typically slept most the day on Saturday, before I went back to work on Sundays.  I was so inactive, I’m convinced now my muscles started to atrophy and I tore the ligament in my right foot, trying to finally exercise one day.  Compensating for that injury I tore my left calf, and it’s been 5 months since I’ve been able to run or jog. 

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It took me a while to admit that I was stressed out, and even longer to realize I would turn to food to compensate for that stress.  Over the past year, I’ve become a more solitary person with my thoughts and emotions than I’ve ever been, while increasingly becoming a public figure who’s known as an outgoing social networker and showman.  It’s a strange dichotomy.    

My father who I love dearly, isn’t only from another generation/country, he might as well be from another planet.  He struggles the most to be supportive; I know he’s at least a little disappointed I didn’t practice law and take over the family real estate business.  A lot of what I do is to make him proud and prove to him that all his hard work for his children was not in vain.  If it were up to my father, we’d spend everyday together going to lunch and “working” side by side.  I get to see him about once a week.  He’s almost 80 and every time I see him I try and cherish the interactions, because I don’t know how many will be left.   

When it comes to my family though, my lack of time affects me most in relation to my mom.  My mother has been severely ill for the last 6 years.  Due to mental illness that set in later in life, and a very early onset of Parkinson’s and Alzheimer’s, she can’t hold a conversation, stand, eat, or function at all without full time caregivers.  She is the person that has done more for me than anyone else, and was always my biggest cheerleader.  She lives about 5 minutes away from my home.   She doesn’t always remember my name, but every time I see her she lights up, and when I say “I love you”, she always says it back.  I could leave the office every night at 8:00pm and give her a hug and kiss, spend a half hour with her, but I don’t.  Our first office was across the street from her (not accidentally), and I’d walk over during the day to check on her.  Since we moved further away, I typically go by to see her once every two weeks.  It’s a choice I’m not very proud of.

Pathetic state of US broadband

Filed under: Internet — Raja @ 9:11 am

US is the most advanced country in the world, except when it comes to boradband and mobile. US boradband services are more expensive and offer much less bandwidth than many developed countries. And it is going backwords. Boradband compnaies want metered brodband where they cap the bandwidth usage. These companies have powerful loobies in Washigton DC to help them control and hold back the market.

Here is a story that caught my attention. Time Warner and Embarq fight to outlaw 100mbps community brodband in Wilson NC.


Brian Bowman, the Director of Public Affairs for the city of Wilson, N.C., which runs the service, is fighting to keep state government from killing the competition in the area.  (Source: IndyWeek) 

The cable companies aren’t happy that they’ve been one-upped in both price and quality of service

Time Warner Inc., after finally dropping its plans for metered internet services for the time being, appears to be back to its old ways.  This story begins in Wilson, North Carolina.  Wilson is a small city of about 47,000 residents located in the middle of North Carolina, roughly 45 minutes east of Raleigh, the state’s capital.

The city’s residents, like many, long complained over high internet, cable, and telephone prices.  So the city launched an ambitious $28M USD program to deliver these services basically at cost, at much lower rates than local service providers Time Warner Inc. and Embarq.

For example, the city offers an expanded basic cable (81 channels), 10 Mbps (download and upload), and a digital phone plan with unlimited long distance to the U.S. and Canada, all for $99.95.  A comparable plan from Time Warner Inc., with six fewer channels (no Cartoon Network, Disney, The Science Channel, ESPNU, ESPN News, or ESPN Classic) and lower upload speeds costs $137.95, for an introductory rate, which lasts a few months and then will likely be ratcheted up.

The city service, named Greenlight Inc., also offers a premium package with 20 Mbps (download and upload), faster than any service provider in the area (Time Warner Inc. and Embarq’s “Turbo” plans top out at 15 Mbps download).  And Greenlight also offers a stunning 100 Mbps (download and upload) local service as well, though it is not listed on their website in the basic packages.

Rather than admit defeat to the pesky local service and go quietly, Time Warner Inc. and Embarq decided to take the fight to the state government, lobbying for several years to get the state government to pass laws to try to destroy the local effort.  And sure enough, thanks to a lot of hard work (and money), the cable companies are close to getting their wish — North Carolina’s State Senate have proposed bills to not only effectively crippling or banning the local service, but also to prevent such services from getting funds under the broadband portion of the national Stimulus law.

The city, has blasted the move, launching a new blog and urging the state government to reject the initiative.  Writes Brian Bowman, the city’s Public Affairs Manager, “I have a 10Mbps up/down connection at my house. Can’t get half that from the cable company. I buy it directly from the City of Wilson. After less than a year of residential service, almost 3,000 Wilson citizens are subscribing to Wilson’s fiber optic network. Local businesses can get up to one Gbps.”

 

Yahoo shouldn’t sell its search business

Filed under: Business, Internet — Tags: — Raja @ 8:49 am

Search is still in its infancy. Search experience still leaves a lot to be desired. There needs to be lot more innovation in the field. That is the reason why I don’t want to see Yahoo search being sold. Even as a business, search is one nice pillar on which to build the foundation. I never thought Yahoo should sell its search business. Of course they need to innovate and execute better. But they should not give up on it.

Fortune has a nice article on why Yahoo should not sell its search business.

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Yahoo CEO Carol Bartz

SAN JOSE, Calif. (Fortune) — During Yahoo CEO Carol Bartz’s conference call Tuesday to discuss the company’s quarterly results, there was much to discuss:

Sales fell 13% and profits sank 78% as advertisers cut back on online spending. And the company confirmed reports of layoffs, saying it would shed about 675 jobs.

Yet analysts seemed to care about only one thing: Yahoo’s search business.

The worst-kept secret in the tech world is that Yahoo (YHOO, Fortune 500) and Microsoft have been talking again about a potential deal. So everyone wanted to know if Bartz would sell search.

But that was the wrong question. A better one: Why would she?

Yes, Microsoft (MSFT, Fortune 500) covets Yahoo’s search business as its best hope for taking on Google (GOOG, Fortune 500). Yahoo has a 20% market share in search, which would give a big lift to Microsoft’s 8% share. Google’s commands 60% of the market.

Less clear is what Yahoo would get from a deal. Microsoft could offer to let Yahoo sell prime display ad space on its MSN properties perhaps, but that would leave Yahoo’s ad sales group in the awkward position of selling MSN inventory in competition with space on Yahoo properties.

And it’s not as though Yahoo is desperate for cash. It has nearly $4 billion in the bank, and its stock price has been holding up just fine - its shares are up 12% this year.

Meanwhile search isn’t just some non-core business that Bartz can toss off.

When Internet users plug a term into a search engine, they’re providing clues about what they want, and what advertisers might be able to sell them. That’s valuable data for the Yahoo engineers who are trying to improve their system for showing the right display ad to the right person at the right time -­ a minivan ad to an expectant mom, perhaps.

Then there’s the matter of measurement. Ad buyers haven’t been shy about telling Bartz that they want a clearer way to prove to their clients that ads on Yahoo lead to a measurable result - a test drive, say, or a purchase. If Yahoo can show that someone who sees a flashy display ad for a minivan later searches for one, that’s a step in the right direction.

But none of that can happen if Yahoo surrenders the search business - and that’s something Bartz doesn’t seem inclined to do. While I was working on a profile of Bartz for the current issue of Fortune, that was a theme that repeatedly surfaced. Ad industry executives who have met with Bartz said she told them that Yahoo’s 20% search share in search is plenty to work with, and that she’s not going to do any deal that threatens Yahoo’s access to search data.

Youtube rolls out video downloads

Filed under: Entertainment, Internet, Media — Raja @ 7:28 am

Youtube is rolling out video downloads for some selected partners:

YouTube is trying to find more ways to monetize the popular web service, and recently started a test project with selected partners who were invited to start offering video downloads to interested viewers. Now it seems the Google-owned online video community site is ready to expand the program to other interested partners based in the U.S.

As we noted earlier when we first caught wind of the download service, selected YouTube partners can offer their video downloads for free or for a fee (determined by the partner), paid through Google Checkout. Most videos in the test charge about $1 each. The partner can also decide how the downloadable video will be licensed to the user - whether it will be restricted to a private non-commercial use video, or whether it can be used under Creative Commons.

It’s not entirely clear if Google / YouTube is currently taking a cut on the for-fee downloads during the test period, but it will most likely do that at some point if it isn’t already.

April 22, 2009

India sees record growth in mobile usage

Filed under: India, Mobile — Raja @ 6:22 pm

From Reuters:

NEW DELHI (Reuters) - Indian mobile operators added a record 15.64 million customers in March, helped by the expansion of networks to smaller towns and rural areas, data from the telecoms regulator showed.

The mobile subscriber base in the world’s fastest-growing wireless market rose by 50 percent, or more than 130 million, to 391.8 million in the 12 months ended March, the Telecom Regulatory Authority of India said.

India is the second-biggest market for wireless services, lagging only China which has more than 600 million users.

Indian operators had added 15.41 million customers in January and 13.45 million users in February.

The country also had about 38 million fixed-line subscribers at end-March.

India is all about mobile not the web.

Health on iphone

Filed under: Mobile — Tags: — Raja @ 8:51 am

Matt Marshall has a nice post on the health applications on iphone 3.0.

For my entire life, I’ve relied on habit. I wake up when my eyes open in the morning (sometimes prompted by the alarm clock), eat when my tummy says its time, exercise in the mornings, and fall asleep when I’m dead tired.

But the applications being built for the latest “3.0″ version of the iPhone operating system — and likely soon for a number of other smartphones — promise to monitor my every step, my cycles, my health, constantly, via sensors on my skin. They may make me even more efficient.

Right now, they’re focused on people with serious ailments. Last month, LifeScan, a Johnson & Johnson company focused mainly on diabetes monitoring devices and software, demonstrated a Bluetooth-enabled blood glucose monitor that syncs with the iPhone’s 3.0 operating system. The video demo is below. The iPhone 3.0 OS, to be released sometime this summer, lets the phone interact with other devices, thus making all this possible.

Looking forward to this, a bunch of companies are working away on applications that monitor all of your six vitals: These vitals are temperature, heart rate, heart rhythm, respiration rate, blood pressure and 02 saturation (or the amount of oxygen you have in your blood). I’m told there’s no reason that all six vitals can’t be tracked from a single sensor — which would then be synced to a phone application via Bluetooth. With all that information, the phone could do some cool stuff: If you drink too much caffeinated coffee on an empty stomach, your phone might be able to alert you that you’re extremely agitated and that you may want to cool off before you slap your annoying office-colleague upside the head.

The Lifescan application (screenshot at left) was created as a prototype for Apple to show off the iPhone 3.0’s capabilities — which allow companies to build apps customized for external devices like a glucose meter — but the product is not ready for commercial launch. Why use an iPhone, instead of the non-phone version of the wireless software? For one, LifeSpan says diabetics often feel lonely, and hooking up to the iPhone will let them communicate with others using social networking features.

 

 

Here is a video on medical apps & iphone:

Satyam fraud quite elaborate

Filed under: Business, India — Raja @ 8:32 am

NYT takes a close look at the elaborate fraud commited at Satyam, the  much maligned indian outsourcing company.

 

B. Ramalinga Raju, center, one of the founders of Satyam, is among the executives accused of fraud at the outsourcing firm

NEW DELHI — Managers at the outsourcing company Satyam Computer Services spun an elaborate web of fraud to attract customers and investors, while using stakes in the company to raise cash for themselves, according to a report filed by India’s top investigation agency.

The deception played out over at least eight years, involved dual accounting books, more than 7,000 forged invoices, dozens of fake bank statements, thousands of unnecessary employees and auditors who received fees several times the market rate, according to a charge sheet filed by the Central Bureau of Investigation in a court in Hyderabad.

The 77-page document details the scope of the fraud at Satyam, and lays out the bureau’s case for charging six company managers, their PricewaterhouseCoopers auditors and an adviser with cheating, forgery and falsification of accounts.

Satyam managers, including the founding brothers B. Ramalinga and B. Rama Raju “were able to attract prospective customers and investors by making them believe” that the company was “carrying out huge volumes of business,” the report said.

The details of the bureau’s investigation could bolster a string of class-action suits pending against Satyam managers and auditors.

Tech Mahindra, a joint venture between the Indian conglomerate Mahindra & Mahindra and BT Group, won an auction to take over Satyam on April 13 with a bid valuing the company at $1.1 billion. The deal may still need to clear regulatory hurdles in the United States and Europe.

The Raju family and their friends, which held 19 percent of Satyam when it went public in 1992, “made hay when the sun was shining” by selling shares as they carried out the fraud, the bureau said in its report. More than 300 investment companies were started, some of which used loans backed by shares to invest in real estate and agriculture, the report said. Banks issuing the loans included Deutsche Investments India, GE Capital Services and DSP Merrill Lynch.

April 21, 2009

Myspace founders out

Filed under: Business, Internet — Raja @ 10:30 pm

Update: This is now confirmed.

Techcrunch reports that Myspace founders may be on their way out.

An update to my post earlier today that News Corp., under new CEO of Digital Media Jonathan Miller, is looking to replace MySpace CEO and cofounder Chris DeWolfe. We’ve confirmed that things are actually moving much faster than we first understood, and that a decision has already been made to terminate Chris DeWolfe’s employment with MySpace. We’ve also been told that the core MySpace executive team will follow.

MySpace has a dozen or so “execs,” but our guess is that it’s the very senior team that will be terminated: cofounders Chris DeWolfe (CEO), Tom Anderson (President) and Aber Whitcomb (CTO). Removing any more of the team would be much more than a morale blow to the company - it would also bring operations to a screaming halt.

Our understanding is that a new CEO has already been recruited and is in the final stages of contract negotiations. An announcement could come as soon as this week or next. We’ll be posting a shortlist of who we believe are the likely candidates for the CEO position shortly.

Mike Arrington speculates on the next Myspace CEO. MediaMemo says News Corp may be talking to Owen Van Natta former facebook COO.

Free Mobile TV

Filed under: Mobile — Tags: — Raja @ 9:12 am

Soon you may be able to watch TV on your mobile for free.

There’s a nifty new wireless video technology on the horizon, and its best feature is its price: free.

A group of broadcasters and electronics companies has developed a standard called Mobile DTV that will let cellphones and other portable gadgets receive video using a part of the new digital spectrum given to broadcast stations, ostensibly to support their high definition signals.

The group announced Monday that it will start testing the service in late summer in Washington, D.C. Five local TV stations will broadcast their regular programming over the new system, including local affiliates of CBS, NBC, PBS and Ion.

So far, 70 stations in 28 markets have said they will be broadcasting in the format by the end of this year. The technology’s backers say that the equipment to broadcast using the format will cost each station about $250,000.

Right now there are no devices that can receive these signals, but Samsung and LG are two main backers, so there will be phones and other gizmos soon. Dell also announced it will make a laptop that can receive the broadcast signals. Another market will be backseat viewers for cars.

There are other companies working on mobile television services, such as MobiTV and Qualcomm’s MediaFLO . But these are subscription services, and I wonder how many people will want to pay $10 or more a month for another package of video channels.

In the future, the Mobile DTV technology could also be used for subscription video services, but for now it is meant for free simulcasts of the existing broadcast stations. The technology allows each station to broadcast up to 8 simultaneous program streams.

Mayo Clinic targets Google Health

Filed under: Internet — Tags: — Raja @ 8:54 am

I love Mayo Clinic website. I find it to be the best source for medical information on the web. It seems to be expanding its vision of online health as it opens a private medical data website similar to Google Health.

Mayo Clinic is the latest to offer a free, secure, online website for anyone — whether a patient or not — to store and organize medical information.

Such sites, also offered by Google Health and Revolution Health (started by former AOL Time Warner chairman Steve Case) are designed to replace the proverbial shoebox of medical documents kept at home.

Unlike some of its competitors, Mayo Clinic Health Manager will offer more than a place to organize medical data. It will also push out customized information, such as reminders for checkups, from one of the most respected brands in health care.

“In every family, there seems to be one person who keeps track of health info and figures out what to do,” said Dr. Sidna Tulledge-Scheitel, medical director for Mayo Clinic Global Products and Services Division.

On Mayo’s site, she said, “The more you enter, the more personalized the health care reminders and guidance there will be for each family member.”

Mayo Clinic is using Microsoft’s HealthVault software for the site.

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