Raja Jasti’s Blog - Renaissance Thinking

August 19, 2010

Intel Buys Who? McAfee?

Filed under: Technology — Raja @ 8:50 pm

Intel buys security software maker McAfee for $7.68M.

Here is the justification Intel gives for the acquisition:

“With the rapid expansion of growth across a vast array of Internet-connected devices, more and more of the elements of our lives have moved online,” Intel CEO Paul Otellini said in a statement. “In the past, energy-efficient performance and connectivity have defined computing requirements. Looking forward, security will join those as a third pillar of what people demand from all computing experiences.”

“Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow,” Renee James, Intel senior vice president, said in a statement. “This acquisition is consistent with our software and services strategy to deliver an outstanding computing experience in fast-growing business areas, especially around the move to wireless mobility.”

Intel sees integrating security into cloud hardware and mobile devices. Intel’s strategy is to use software to enhance hardware to neutralize commoditization. My question is why the security piece before some other pieces, say virtualization?

August 9, 2010

Google buys social payment company Jambool

Filed under: Business, Entrepreneurship, Internet, Technology — Raja @ 4:10 pm

Social gaming has overtaken email in the amount of time Americans spend online and Google has a huge hole in this activity. So it is buying up companies to fill its gaps. It recently bought Slide and now is buying Jambool that makes a popular social payment system called Social Gold.

Google continues to gobble up companies that will form the backbone of it’s new social strategy and the upcoming war with Facebook. Last week it was Slide. And they are now buying Jambool and their Social Gold payment product, we’ve heard from multiple sources. The purchase price is $55 million plus another $15 million -$20 million in an earnout, say our sources.

Social Gold gives app developers the ability to build payments directly into their games and other applications. It was founded by Amazon veterans Vikas Gupta and Reza Hussein, and has raised $6 million in funding.

Like other payments companies they’ve been hit very hard by Facebook Credits

August 3, 2010

How Big is AWS Business?

Filed under: Business, Internet, Technology — Raja @ 2:05 pm

A recent report by UBS research suggests AWS will be making $500M in 2010.

Today, UBS Investment Research analysts Brian Pitz and Brian Fitzgerald released a report which projects revenue numbers against Amazon’s web services. The duo estimate that in 2010, AWS will generate about $500 million in revenues and will grow this number to $750 million by 2011. By 2014, it would bring in close to $2.54 billion in revenues.

awsrevenues.gif

UBS analysts believe that the total market for AWS-type services will be between $5-to-$6 billion in 2010 and will eventually grow to $15-to-$20 billion in 2014.

June 22, 2010

Facebook Platform

Filed under: Business, Internet, Technology — Raja @ 6:33 pm

Facebook now makes around $1B per year in revenues. So does Zynga which develops social games on platforms such as Facebook. I would say Facebook has become a solid platform worth devloping for without too much of a platform risk.

It is extremely risky for companies to build on platforms that are still searching for business model (read twitter). I am not saying that companies can not be successful building twitter based products and services. At this moment it comes with a lot of risk. Facebook platform has significantly reduced its platform risk.

June 10, 2010

Video: GigaOm Interview with Facebook’s New CTO

Filed under: Internet, Technology — Raja @ 9:41 am

Part 1

Part 2

June 6, 2010

Video: Marissa Mayer on Explosion of Data

Filed under: Technology, Trends — Raja @ 12:57 pm

May 30, 2010

Telemedicine using 2-way video

Filed under: Internet, Mobile, Technology — Raja @ 10:26 am

NYT has a nice feature on the growing use of 2-way video for telemedicine.

 

Dr. Jerry Jones uses two-way video at his home in Houston to consult with a patient across town. Dr. Jones is under contract to NuPhysicia, one of the new telemedicine companies.

ONE day last summer, Charlie Martin felt a sharp pain in his lower back. But he couldn’t jump into his car and rush to the doctor’s office or the emergency room: Mr. Martin, a crane operator, was working on an oil rig in the South China Sea off Malaysia.

He could, though, get in touch with a doctor thousands of miles away, via two-way video. Using an electronic stethoscope that a paramedic on the rig held in place, Dr. Oscar W. Boultinghouse, an emergency medicine physician in Houston, listened to Mr. Martin’s heart.

“The extreme pain strongly suggested a kidney stone,” Dr. Boultinghouse said later. A urinalysis on the rig confirmed the diagnosis, and Mr. Martin flew to his home in Mississippi for treatment.

Mr. Martin, 32, is now back at work on the same rig, the Courageous, leased by Shell Oil. He says he is grateful he could discuss his pain by video with the doctor. “It’s a lot better than trying to describe it on a phone,” Mr. Martin says.

Dr. Boultinghouse and two colleagues — Michael J. Davis and Glenn G. Hammack— run NuPhysicia, a start-up company they spun out from the University of Texas in 2007 that specializes in face-to-face telemedicine, connecting doctors and patients by two-way video.

Spurred by health care trends and technological advances, telemedicine is growing into a mainstream industry. A fifth of Americans live in places where primary care physicians are scarce, according to government statistics. That need is converging with advances that include lower costs for video-conferencing equipment, more high-speed communications links by satellite, and greater ability to work securely and dependably over the Internet.

“The technology has improved to the point where the experience of both the doctor and patient are close to the same as in-person visits, and in some cases better,” says Dr. Kaveh Safavi, head of global health care for Cisco Systems, which is supporting trials of its own high-definition video version of telemedicine in California, Colorado and New Mexico.

The interactive telemedicine business has been growing by almost 10 percent annually, to more than $500 million in revenue in North America this year, according to Datamonitor, the market research firm. It is part of the $3.9 billion telemedicine category that includes monitoring devices in homes and hundreds of health care applications for smartphones.

Christine Chang, a health care technology analyst at Datamonitor’s Ovum unit, says telemedicine will allow doctors to take better care of larger numbers of patients. “Some patients will be seen by teleconferencing, some will send questions by e-mail, others will be monitored” using digitized data on symptoms or indicators like glucose levels, she says.

Eventually, she predicts, “one patient a day might come into a doctor’s office, in person.”

May 24, 2010

Requirements for SaaS companies

Filed under: Internet, Technology — Raja @ 11:20 am

SaaS (Software as a Service) is all the rage these days. But what does is take to be a SaaS provider? GigaOm takes a good post on this topic.

In order to become a sustained market leader in SaaS, software companies need to focus on building and delivering a highly efficient service to their customers without spending significant money on the underlying infrastructure (cloud or otherwise). A poor architecture will underutilize server resources, making software costly to deliver.

Feature-wise, most SaaS applications have the ability to quickly provision new customers to the system as well as to manage subscriptions in order to identify the types of application functionality they’ve purchased access to, metering systems to track what was used so they can be billed appropriately, and the ability to roll out upgrades to a live environment. The addition of such features could take anywhere from six months if the goal is to “just to get by” to well over a year if it’s to reach full SaaS stack maturity.

To be a market leader, however, companies must be willing to go the distance and attempt to reach full maturity as quickly as possible. Architecturally, this means: 

Handling multitenancy: The days of managing and executing data for a single customer at a time are over. To succeed in the cloud, software companies must be able to simultaneously recognize and handle requests from many customers (and their associated end users) at once. From a delivery standpoint this means one instance of your SaaS offering must segregate customers efficiently and offer them their own unique experience, despite sharing an instance of the software and the underlying resources. From a technical standpoint, this massive efficiency of scale adds significant complexity, and, as with most fields, complexity is money. 

Scale-out: In order be able to meet the aggregate demand of all customers, not just the largest, the software has to be able to utilize the elastic capacity offered by cloud infrastructure such as EC2, to give them the ability to scale-out each of their components independently. Simply running on EC2 doesn’t mean your application can scale infinitely, but that your application has infinite resources at its disposal if it knew what to do with them and how to manage them. And knowing what to do with an infinite number of resources requires highly complex software architectures that most applications simply don’t have. Maintaining a level of abstraction from the underlying hardware, and being able to dispatch requests from any user to any part of the network provides the foundation for such scale-out. 

Customer management: Of all of the cloud’s distinct advantages, among the most prominent are its superior operations and customer management tools such as customer provisioning, upgrade engines and monitoring. Granted, such tools have to be built into the core architecture, but by allowing customers to track their end users’ activities, they provide a path to stable and recurring revenue streams. Customer provisioning systems even allow a software vendor to seamlessly “turn on” a new customer without impacting existing ones.

It takes more than just building web based version of desktop software to be a good SaaS player. The SaaS customer value proposition is about reducing the friction of  buying, using and managing applications and solutions.

May 20, 2010

Native apps or Web apps

Filed under: Internet, Mobile, Technology, Trends — Raja @ 9:54 am

Sergey Brin sees them converging in the not too distant future.

Google co-founder Sergey Brin went further. “These models are likely to converge in the future. And not the too distant future,” Brin says.

He notes that during the keynote today, we got a glimpse at how the HTML model is coming along. Web apps are now able to go offline, and they can have richer graphics thanks to HTML5. “It’s getting similar to app frameworks,” he says. He also notes that there are benefits to using web apps versus native apps, such as the lack of installation, and certain aspects of security. ”It’s headed in a positive direction, but these are fairly recent developments,” Brin says.

Brin acknowledges that for now, the market is proving the need for native apps. The current generation of cellphones aren’t quite powerful enough, and HTML5 isn’t quite developed enough, he notes. Pichai also notes that screen sizes on mobile devices makes native apps more enticing as well.

As I keep saying mobile web will just be web in a few years. The mobile ecosystem today is similar to the PC ecoystem in the early 80s. There will always be some native apps just as there are desktop apps now, but future web apps will run on many devices such as computers, mobile phones, tablet devices, TVs etc.

May 12, 2010

SAP buys Sybase for $6B

Filed under: Business, Technology — Raja @ 4:02 pm

From Yahoo News:

SAN FRANCISCO – German business software maker SAP AG has agreed to buy Sybase Inc. in a $5.8 billion deal that ratchets up SAP’s rivalry with database leader Oracle Corp.

The acquisition is the first big move by SAP’s new co-CEOs Bill McDermott and Jim Hagemann Snabe, who took over in February after the previous CEO, Leo Apotheker, suddenly resigned. The resignation came amid concerns over SAP’s faltering finances and its ability to counter the mounting threat from Oracle.

SAP and Oracle are battling to run more of the programs that corporations use to manage their data. Their businesses overlap even more with SAP’s purchase of Sybase.

As the world’s leading maker of business-software applications, SAP has had the luxury of being largely quiet when it comes to acquisitions. It hasn’t had to buy its way in to many new markets.

Its last major acquisition was in 2008, when it bought Paris-based Business Objects for $6.8 billion. That company’s “business intelligence” software helps companies analyze their data and spot patterns to help them make decisions.

Oracle, meanwhile, has been on a $40 billion buying binge since 2004 in what in most cases has been an attempt to muscle into SAP’s markets.

Oracle’s primary business is making database software, an area where it’s the world’s leader with more than 40 percent of the market. Databases help companies store their information and retrieve it later through computer programs. Sybase is a small player in that market, with about 2 or 3 percent market share. Its absorption by SAP puts SAP into more direct competition with Oracle in that area.

This move by SAP into the database market was long overdue. They should have bought MySQL a while ago (before SUN did).

SAP makes very few acquistions while irs chief rival Oracle has been very agressive over the last few years. Is the new leadership changing their streategy and follow Oracle?

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