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  Notes on Leadership: Be Like Steve Jobs, . . . And Bill Campbell, And Andy Grove

  Posted: March 14th, 2010, 9:29am PDT by Guest Author

  

  

  Editor’s note: When venture capitalists invest in early stage startups, more than anything else they are investing in the founders of the company and their ability to lead their employees through the most improbable set of circumstances to take an idea from a germ to a real and profitable business. In this guest post, Ben Horowitz of VC firm Andreessen Horowitz explains the leadership traits he and his co-founder Marc Andreessen look for before they invest in a startup. SOme of their investments include Skype, Zynga, Factual, and RockMelt. Before becoming investing partners, Horowitz and Andreessen co-founded Opsware, which they sold to HP for $1.6 billion, and prior to that Horowitz was an executive at Netscape.

  At Andreessen Horowitz, we favor founders running the company. The reasons are many (and will be the topic of a future blog post). As a result, we spend a great deal of time thinking about the characteristics required to be a founding CEO. Perhaps the most important attribute required to be a successful founding CEO is leadership. So what is leadership and how do we think about it in the context of the CEO job? Are great leaders born or made?

  Most people define leadership in the same way that Supreme Court Justice Potter Stewart famously defined pornography when he said: “I know it when I see it.”

  A better definition comes from former Secretary of State Colin Powell who said: “You have achieved excellence as a leader when people will follow you anywhere if only out of curiosity.” For our purposes, we can generalize this to be the measure of the quality of a leader: the quantity, quality and diversity of people who want to follow her.

  So what makes people want to follow a leader? We look for 3 key traits:

  • The ability to articulate the vision
  • The right kind of ambition
  • The ability to achieve the vision

  Let’s take these in order.

  The ability to articulate the vision—The Steve Jobs Attribute

  Can the leader articulate a vision that’s interesting, dynamic, and compelling? More importantly, can the leader do this when things fall apart? More specifically, when the company gets to a point when it does not make objective financial sense for any employee to continue working there, will the leader be able to articulate a vision that’s compelling enough that the people stay out of curiosity?

  I believe that Jobs’ greatest achievement as a visionary leader so far was a) getting so many super talented people to continue following him at NeXT, long after the company lost its patina; then b) getting the employees of Apple to buy into his vision when the company was weeks away from bankruptcy. It’s difficult to imagine any other leader being so compelling that they could do these back-to-back and this is why we call this one the Steve Jobs attribute.

  The right kind of ambition—The Bill Campbell Attribute

  

  Andy Grove once remarked that a company needs highly ambitious executives in order to achieve its goals. However, it’s critical that those executives have “the right kind of ambition”: ambition for the success of the company rather than the “wrong kind of ambition”: ambition for the success of themselves.

  One of the biggest misperceptions in our society is that a prerequisite for becoming a CEO is being selfish, ruthless, and callous. In fact, the opposite is true and the reason is obvious. The first thing that any successful CEO must do is get really great people to work for her. Smart people do not want to work for people who do not have their interests in mind and in heart.

  Most of us have experienced this in our careers: a bright, ambitious, hard working executive that nobody good wants to work for and who, as a result, delivers performance far worse than one might imagine.

  Truly great leaders create an environment where the employees feel that the CEO cares much more about the employees than she cares about herself. In this kind of environment, an amazing thing happens: a huge number of the employees believe that it’s their company and behave accordingly. As the company grows large, these employees become the quality control for the entire organization. They set the standard of work that all future employees must live up to. As in, “Hey, you need to do a better job on that datasheet—you are screwing up my company.”

  I call this characteristic the Bill Campbell Attribute after my friend Bill who is the best that I’ve ever seen at this. If you talk to people who worked in any of the many organizations that Bill has run, they refer to those organizations as “my organization” or “my company.” A huge part of why he has been so unbelievably strong on this dimension of leadership is that he’s totally authentic. He would happily sacrifice his own economics, fame, glory, and rewards for his employees. When you talk to Bill, you get the feeling that he cares deeply about you and what you have to say, because he does. And all of that shows up in his actions and follow through.

  Ability to achieve the vision—The Andy Grove Attribute

  

  The final leg of our leadership stool is competence, pure and simple. If I buy into the vision and believe that the leader cares about me, do I think she can actually achieve the vision? Will I follow her into the jungle with no map forward or back and trust that she will get me out of there?

  I like to refer to this as the Andy Grove attribute. Andy Grove will always be my model of CEO competence. He earned a Ph.D. in electrical engineering, wrote the best management book that I’ve ever read (High Output Management), and tirelessly refined his craft. Not only did he write exceptional books on management, he taught management classes at Intel throughout his tenure.

  In his classic book, Only the Paranoid Survive, Grove details the story of leading Intel through the dramatic transition from the memory business to the microprocessor business. In doing so, he walked away from nearly all of his revenue. He humbly credits others in the company with coming to the strategic conclusion before he did, but the credit for swiftly and successfully leading the company through the transition goes to Dr. Grove. Changing your primary business as a 16 year old, large, public company raises a lot of questions. As Andy describes in an incident with one of his employees:

  One of them attacked me aggressively, asking, “Does it mean that you can conceive of Intel without being in the memory business?” I swallowed hard and said, ‘yes, I guess I can.’ All hell broke loose.

  Despite shocking many of his best employees with this radical strategy, ultimately the company trusted Andy. They trusted him to rebuild their company around an entirely new business. And that trust turned out to be very well placed.

  So, are great leaders born or made?

  Let’s look at this one attribute at a time:

  • Articulation of the vision—There is no question that some people are much better story tellers than others. However, it is also true that anybody can greatly improve in this area through focus and hard work. All CEOs should work on the vision component of leadership.
  • Alignment of interests—I am not sure if the Bill Campbell Attribute is impossible to learn, but I am pretty sure that it is impossible to teach. Of the three, this one most fits the bill “born not made.”
  • Ability to achieve the vision—This attribute can absolutely be made; perhaps this is why Andy Grove’s tolerance for incompetence was legendarily low. Indeed, the enemy of competence is sometimes confidence. A CEO should never be so confident that she stops improving her skills.

  In the end, some attributes of leadership can be improved more than others, but every CEO should work on all three.

  CrunchBase InformationBen HorowitzAndreessen HorowitzInformation provided by CrunchBase
  

  
  

  
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  Craig Barrett Takes On Vivek Wadhwa In The Tech Education Debate

  Posted: March 14th, 2010, 7:17am PDT by Guest Author

  

  

  Editor’s note: The most valuable employees of any technology company are the engineers and scientists, which is why everyone in Silicon Valley does whatever they can to ensure the continuous supply to this talent pool. The size of the talent pool is ultimately determined by the number of people who graduate from colleges and universities with science, technology, engineering, or mathematics degrees. The U.S. is graduating fewer and fewer scientists and engineers, causing concern in many quarters.

  While many people agree this is a problem, not everyone agrees on what should be done about it. Former Intel chairman and CEO Craig Barrett is a strong proponent of priming the pump with more undergraduate science, engineering, and math students. Duke/UC-Berkeley professor (and regular TechCrunch columnist) Vivek Wadhwa thinks that better rewards for people who pursue engineering and science degrees is the right approach. So we asked Barrett and Wadhwa to debate the issue of how best to fix technology education in the U.S. Their exchange is below:
  

  Vivek Wadhwa:

  

  Craig Barrett is someone who I hold in the highest regard. Ever since he retired as Intel’s CEO, Dr. Barrett has made it his life’s mission to improve U.S. competitiveness. He believes that the way to do this is to teach more math and science. And he believes we need to graduate more PhDs in science and engineering.

  I wholeheartedly support improvements in education and know the value that math and science skills provide. But the problems I see in U.S. competitiveness aren’t related to the numbers of engineering PhDs or scientists that we graduate. American companies are shifting R&D abroad because it makes economic sense for them to be near growth markets, and they can hire talented workers at a lower cost. It isn’t about deficiencies in American workers or a weakness of U.S. math and science education.

  We are also graduating enough PhDs in science and engineering. The problem is that the majority of these graduates are foreign nationals (who are now increasingly returning home). American’s don’t consider it worthwhile to complete advanced science and engineering degrees because it doesn’t make financial sense for them to do so. Research by Harvard economist Richard Freeman showed that because salaries for scientists and engineers are lower than for other professions, the investment that students have to make in higher degrees isn’t cost-justified. Doctoral graduate students typically spend seven to eight years earning a PhD, during which time they are paid stipends. These stipends are usually less than what a bachelor’s degree-holder makes. Some students never make up for this financial loss. Foreign students typically have fewer opportunities and see a U.S. education as their ticket to the U.S. job market and citizenship. Hence, 60% of U.S. engineering PhD graduates are foreigners.

  As this article from Scientific American discusses, the problems are even worse for graduating scientists.

  …But today, however, few young PhDs can get started on the career for which their graduate education purportedly trained them, namely, as faculty members in academic research institutions. Instead, scores of thousands of them spend the years after they earn their doctorates toiling in low-paying, dead-end postdoctoral “training” appointments (called postdocs) in the laboratories of professors, where they ostensibly hone skills they would need to start labs of their own when they become professors. In fact, however, only about 25 percent of those earning American science PhDs will ever land a faculty job that enables them to apply for the competitive grants that support academic research. And even fewer—15 percent by some estimates—will get a post at the kind of research university where the nation’s significant scientific work takes place.

  So, my argument is that if we create the incentives for American children to study math and science and to complete advanced degrees, the magic will happen. In addition to math and science, we should teach our children about world culture, geography, and global markets. In the era of globalization, these subjects are equally important. And while we fix the incentives for Americans, let’s do all we can to keep the best foreign students who come to the U.S. to study, here, so they are competing on our side.

  Craig Barrett:

  Economic competitiveness in the 21st Century will be quite different than in the past. With the free flow of information, capital, and people, economies will have to look for new comparative advantages. Most observers of this topic conclude that there are only three things that a country can do to increase their relative competitiveness and provide for an increased standard of living for their citizens. Countries have to invest in the education of their work force (smart people), they have to invest in research and development (smart ideas) and they have to provide the right environment to let smart people get together with smart ideas and create new products, new businesses, and new services. The most fundamental of these three issues is education. Historically the standard of living or per capita income has tracked closely with the level of education of the work force—as education lets workers add value to what they do and as the economy grows the standards of living increase.

  Looking forward every major economy has identified the general areas that will drive innovation and economic growth. Japan, the US, and the EU have all listed those technologies (nanotech, photonics, new materials, micro electronics, alternative energy, biotech, etc) that will be key for development, productivity improvements, and growth. All of these areas have the common foundation of science, technology, engineering and mathematics (STEM). Hence it is straightforward to conclude that work force expertise in STEM will be a determinant of economic growth.

  If we look at the US for a moment we can make several observations about the education of our current and future work force.

  1. US kids on average do poorly in mathematics, science and problem solving when compared to their OECD peers;
  2. Fewer US kids choose to major in the hard sciences and engineering each year (most of our engineering graduate students are in fact foreign nationals).
  3. The current 25 year old generation will be less well educated (defined by college graduation rates) than the 45 year old generation
  4. Most OECD and emerging economy countries are increasing their college (and STEM) graduation rates

  So in contrast to the importance of STEM education for economic performance in the 21st Century we see the US moving in the opposite direction. Certainly our universities are still top ranked in the world in STEM but increasingly the graduates of those universities are foreign nationals who are often choosing to return home to pursue their professional careers. And we are producing no more STEM graduates than we did decades ago.

  If the US is really serious about competing in the 21st Century economy we will have to decide to compete. This simply means that you have to create the work force (smart people), invest in R&D (smart ideas) and make sure the environment is attractive to investment in innovation (do something about tax rates, make it easier to form corporations, provide incentives to invest in R&D and make capital investments, etc). Otherwise you will see the continuous flight of capital and jobs to regions of the world where governments have made the environment more attractive. This is not a simple issue of wage rates—corporations chase after the best possible work force in areas where the total cost is most attractive and often the total cost is much more heavily weighted by corporate tax rates and incentives, not wage rates.

  STEM education is key for our future. We need a major upgrade in our K-12 education to produce high school graduates who understand and appreciate STEM.

  We need more undergraduates majoring in STEM for the jobs of the 21st Century. And we need more STEM graduate students to drive those industries that are key to our future. As a measure of how rapidly things are changing with time, it used to be that many STEM Ph.Ds turned right around and went after faculty positions in our universities. Today, STEM Ph.Ds are the entry level education requirements to get into the engineering and research laboratories of the successful tech corporations in the US, like Microsoft, Intel, Cisco, IBM, etc. It is also certain that not every STEM graduate is going to pursue a limited career in STEM. STEM education is a great introduction to many other professions – the basis of STEM education being problem solving means that this education is a great entry to other jobs. In fact the most common educational background of the Fortune 500 CEOs is engineering.

  So at a time when the rest of the world is gearing up for competition let’s refocus the US to do the same. That is unless you believe our future is in low value add services or manufacturing, investment banking, tort lawyers or asphalt ready construction jobs. Somebody has to create some wealth if you want your economy to grow.

  Vivek Wadhwa’s Rebuttal:

  Again, I wholeheartedly agree that we need to improve K-12 education and I agree about the importance of STEM education. The question is, how do you motivate American children to enter fields like science and engineering that are harder than others to learn, don’t provide the economic rewards, and that aren’t considered “cool”? We can’t force our children to do PhDs in math.

  As the article from Scientific American showed, many engineering and science PhDs can’t even get jobs – in academia or industry. This is after they have worked for years at ridiculously low wages as researchers or postdocs. Those that do get jobs don’t ever make up for the financial sacrifice they have made. When American children choose to study science or engineering, their friends call them geeks or nerds – they are made to feel inferior. Their Indian and Chinese counterparts are held in high regard by society and end up at the top of the social ladder. Indian and Chinese engineers and scientists are often national heroes. Here, our kids idolize football players and rock stars.

  We can’t also just tell our children that the nation’s competitiveness and standard of living depends on them making sacrifice and completing advanced degrees in math and science. They won’t care. We should improve the K-12 education system as you suggest. Our corporations should also invest in workforce development – which they generally don’t. We should also provide tax breaks for research as you say. And we should fix our university research system (I have written about the big problems with this).

  The issue I am highlighting is that even if we did all of the good things you suggest, this would not fix the problem of American children not being motivated to become scientists and engineers. My top students at the Masters of Engineering Management Program at Duke University still vie for high-paying investment banking jobs; they don’t become engineers. It is the same with our top PhDs in math; they become quants at investment banks. Their talent ends up being used by investment banks to find new ways of bilking the financial system.

  We need to create the excitement about science and engineering at the national level and motivate our best and brightest to become engineers and scientists. And we need to make it worthwhile financially for them to help our country stay competitive and to solve the problems facing our planet. This is as much a marketing problem as it is an investment problem. An example of a way to fix the marketing problem is what National Academy of Engineering President, Charles Vest, proposed with the Grand Challenges for Engineering program. But this is a tiny first step. We need to do a lot more.

  Craig Barrett’s Rebuttal:

  Let me respectfully disagree with one point Vivek makes and then give some suggestions on how to overcome his second issue.

  First, this is not a financial compensation issue. If it were then every kid who goes to college would choose to major in engineering because a BS in engineering (almost any subject) commands the highest salary of any university graduate. Most kids don’t major in engineering because they don’t have the interest, the aptitude, or they like some other major more. Our young college graduates do not chase the dollar; they tend to follow their interests. In addition, when I look at the unemployment statistics, engineers are usually amongst the highest employment professions in the country. Certainly the percentage of NFL or rock star wannabes or business administration majors or medieval history majors on unemployment is much higher than that for engineers. So can we please move away from the simplistic argument that STEM doesn’t pay?

  In addition if you look at graduate school and the graduate Ph.D who spends years working as a Post Doc angling for a teaching position at a prestigious university you simply cannot do an ROI analysis on his or her investment to land the faculty position and conclude that no one will be a Post Doc. The individual is chasing that faculty position because that is what they really want to do. Just like an aspiring actor spends years doing bit parts to finally land the big role. You know that because the end point, the faculty position, is not the highest paid option for the Ph.D. He or she can make more money in the private sector and probably have greater resources (capital facilities and research dollars) to pursue interesting problems. The Post Doc pursues their interest precisely because that is what they are interested in. As there are many more Post Docs than faculty positions available we have to conclude that Post Docs are Post Docs because they want to try to become faculty members and that Post Docs do not represent an inherent limitation or barrier to people trying to obtain a Ph.D in STEM. The private sector has a strong appetite for STEM Ph.Ds—just look at the hiring practices of the major corporations.

  The real barrier to pursuing degrees in STEM is that we have almost a perfect filter in place in K-12. For a student to want to major in STEM in college they have to exit high school with a strong mathematics background. That means that they need to have a good math teacher in nearly every grade (in addition to having a good physics, chemistry, and biology teacher). We know that about 1/3 of all math and science teachers in K-12 are not certified in their subjects and probably do not do a good job educating and motivating their students. If you assume for a moment that you need 12 good math teachers in a row to exit high school being proficient in math then the calculation of the probability of such an event happening is simple: 0.67 raised to the 12th power shows you what a perfect filter the K-12 system is.

  So how about a national effort to get more STEM content majors into K-12 teaching? A few exciting programs have started in this space (UTeach out of Texas, Teach for America, the revamp of the education school at ASU). All we need to do is start recognizing that hiring content experts in K-12 is more important than hiring someone who has studied education pedagogy for 4 years. Just imagine how many folks interested in STEM want to take all those School of Education classes to get their teaching certificate.

  On to the point where I want to support Vivek, i.e., the need to get more kids interested in STEM during K-12. This can happen in the class room with good teachers (can you imagine a PE teacher doubling as a math teacher inspiring kids to want to pursue math?) and it can happen outside of the class room. For example I just spent yesterday afternoon in Phoenix at the FIRST Robotics Championship competition—the energy, the enthusiasm, the application of STEM was fantastic. But only about 15,000 kids nationwide participate in this competition. Just suppose we had a FIRST team at every school in the country. Next week I am at the Intel Science Talent Search (the Nobel equivalent for high school students doing research). The 40 finalists will be doing research better than my Ph.D thesis topic. But only about 1500 kids a year enter this competition—what if we had 15,000? Or 150,000?

  This is where we need to mobilize the public and private sectors to improve. This is where we can catch the imagination of the next generation and turn them into candidates for those STEM Ph.Ds. There is sub critical mass working in this area – it just needs to be expanded. Suppose we organized the top 200 STEM oriented companies in the US and let them work at the local level to make FIRST robotics, science fairs, and computer club houses really happen across the US. Then we could overcome the tired arguments that our society doesn’t value STEM. There is a movement to make this happen right now. The best thing we could all do is throw our weight behind this effort.

  CrunchBase InformationCraig R. BarrettInformation provided by CrunchBase CrunchBase InformationVivek WadhwaInformation provided by CrunchBase
  

  
  

  
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  Famebook: Because You’ve Always Wanted To Have Your Facebook Feed On Paper

  Posted: March 14th, 2010, 4:53am PDT by Robin Wauters

  

  Remember that time when a marketing agency’s labs unit cooked up an application that allowed you to print your tweets in a custom notebook (aka, Tweetnotebook)?

  Ok, fair chance you don’t – I sure do because I have one of those lying around here somewhere.

  Anyway, it was only a matter of time before they did the same for Facebook – and lo and behold, here’s My Famebook.

  Concept is the same as Tweetnotebook: you can create and order a unique notebook, featuring an item from your Facebook feed at the bottom of every page, via the website in just a few minutes. You can make a ‘book of you’ or select the wittiest Facebook status messages from your friends.

  Once personalized with a custom lay-out, message selection and cover design, you can preview your Famebook and choose to order the 320-page paperback version for €14 ($19) or go for a 200-page hardcover edition at €18 ($25) – shipping costs not included. You know, if you really always wanted to have your Facebook stream printed on dead trees.

  Just a thought: who actually owns status messages posted on Facebook, and is it cool for My Famebook to just print them out? Not that we want to be party poopers, but there must be some copyright issues here, right?

  

  CrunchBase InformationFacebookInformation provided by CrunchBase
  

  
  

  
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  Something Is Technically Wrong With Twitter.com

  Posted: March 14th, 2010, 4:36am PDT by Robin Wauters

  

  

  OMGTwitterisdownagain. Or extremely flaky, at least. This time, the problems seem to occur only when trying to access the Twitter website, as the API seems to be fully functional and thus not causing any trouble for third-party clients.

  Search also seems to work fine, as you can tell from all the people tweeting that Twitter is down for them – go figure.

  We’ll keep it short and sweet: use a third-party client for your tweeting needs or find something else to do (like blog about the fact that Twitterisdownagain).

  CrunchBase InformationTwitterInformation provided by CrunchBase
  

  
  

  
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  “No Excuses” For European Startups And More Videos And Photos From Plugg 2010

  Posted: March 14th, 2010, 3:53am PDT by Robin Wauters

  Last Thursday saw the third edition of Plugg, a conference I started in my home country Belgium back in 2008 that essentially aims to launch and inspire European tech entrepreneurs and advance the startup ecosystem in these parts. The event is closely tied to TechCrunch, with myself as lead organizer and TechCrunch Europe editor Mike Butcher running things on stage. We invited a host of speakers from all corners of Europe to deliver inspiring keynotes about a wide range of topics, and as every year had 20 (well actually, 19) startups vying for the top prize in an exhilarating pitching competition. All these startups were carefully selected and are some of Europe's most promising early-stage ventures, so I invite you to take a look at the full list of finalists in our previous post. In the end, Estonia's Fits.me won the main award of the show, with RazWar snatching the audience choice prize and Distimo and Inbox2 as runners-up. If you didn't attend the event but are interested in finding out what went on on stage, we've got you covered: the whole thing was captured on video and in pictures, and we also embedded a handy Nomadesk widget on the Plugg website where you can access a virtual folder carrying all the presentations. Here's a selection of videos I think will interest TechCrunch readers most (but please check out all of them):

  
  

  
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  India’s Rural Cell Movement: Can You Hear Me Now?

  Posted: March 13th, 2010, 11:04pm PST by Sarah Lacy

  

  Last time I was in India I wrote about the amazing business model innovation that had allowed telecom operators to make money on a paltry $6 a month per average user. That compares to a desired average monthly payment of $50 or more in the U.S.

  The results have been phenomenal—550 million people in India have phones, and it has transformed the poorer service economy by giving them an affordable way to be reached and arrange jobs. Just last month, nearly 20 million new mobile accounts were opened. That’s more than double the people than have high speed Internet in the entire country. Even in slums where people live on less than $2 a day, everyone has a phone. If “Slumdog Millionaire” was more accurate, Jamal wouldn’t have had to go on TV to find Latika. He could have just called her, or worst case, called a few friends until he found her number.

  It’s unequivocally India’s most successful infrastructure achievement —despite some mounting concerns about the effects of all those towers dotting nearly any urban rooftop that can hold one. And a host of exciting applications are being built on top of this invisible thread that connects a disparate country with a vast terrain and even bigger gulfs in language, literacy, income, religion, language and living standards

  But amazingly, when Rajiv Mehrotra (pictured below) looked at the existing telecom penetration in India, he saw failure. What about the people who can’t afford $6 a month or live too far to get service? Don’t they deserve to be connected as well? The result was VNL, a company that’s already gotten a good deal of press and acclaim for its dead-cheap, low-maintenance, Ikea-like easy-to-assemble, solar-powered base stations that extend existing mobile footprints into rural villages for a fraction of the price, allowing the remotest, poorest villages to have mobile phones in every household at drop-dead low prices. “We are the bottom of the bottom,” boasts Mehrotra, practically daring competitors to try to play his low-cost, super-durability game.

  The World Economic Forum named it one of 26 Technology Pioneers, and just last month VNL won the Mobile World Congress’s Green Mobile Award. Time called it a “Tech Pioneer that Will Change your Life” and Fast Company named it one of the world’s 50 Most Innovative Companies in the world.

  I met with Mehrotra at the company’s headquarters in Gurgoan during my November trip to India. This time I wanted to see its technology live in villages and hear first hand what the impact had been. I traveled to a village that had now had phones for about seven months to see how the technology had changed their lives. Of the 500 families spread across this area, almost all of them had a phone—and most for the first time.

  The majority of the people I spoke with said the first calls they made were to family members, and that the biggest impact was the ability to stay in touch with family, to know when there was an emergency and be able to respond quickly.

  But there have been business effects too. One man (pictured here) has a business operating several trucks traveling between this village and Delhi and before he’d have to ride on a bike between back-and-forth to coordinate them. Now he can sit at home and just call the drivers. He installed one of VNL’s small base stations on his roof, and he said it had increased his standing among his peers—he is frequently the one called on to settle disputes. And now they can just call him. Similarly wives will call husbands out in the fields when its time to come in and eat, rather than trudging out to get them, allowing them to focus on kids and the housework.

  Another woman (pictured below) I spoke with was a widow with six kids and 21 grandchildren. (So many, she actually had to ask someone else how many she had.) As grandkids clambered in and out of her lap, she explained that she gets pension checks from the government, but the delivery used to be spotty. Before her phone she had no recourse but to travel to Delhi to inquire about it. Not exactly something she relishes, having lived her whole life in this village and only been to the big city twice. Now she can call the office and gives them an earful. Not surprisingly, the checks have started to come more regularly.

  Another man (pictured to the right) told me he felt more connected to the rest of India as a result of having a phone. This village is surrounded by mountains, and he said that he felt “imprisoned” and cut off, despite being just a few hours drive from Delhi. Now he has a renewed interest in politics and what’s happening in other villages and the country at large. This man had only had his phone for six months, but he expected it would change his life in ways he couldn’t articulate or imagine. “Since the day I got this, my life has already changed,” he said through an interpreter.

  Indeed, Mehrotra says it’s already having a ripple effect on the politics of Rajisthan—the state between Pakistan and India where VNL did its first installations. Politicians come through and make promises and villagers demand their cell phone numbers and call to check up on whether those promises are kept. “They have to be accountable,” Mehrotra says. “They can’t wriggle out.”

  These phones are not just a nice-to-have, they’ve quickly become a must have for these villages, deeply tied to the way they make money, participate in their government and retain closely important family relationships. And these ripple effects are only now beginning. Think of what the impact will be when there are better programs for marketing crops, saving money and even learning and game playing rolled out on these very basic phones. Life will always be different in a village or a city, but India can at least gain some basic common denominators between the two.

  Mehrotra is a big believer in the Ghandian mantra: Change the villages and you change India. He’s a serial entrepreneur who has already built businesses rolling out satellite TV and landlines to rural areas, but he thinks this company will have a bigger impact than anything else he’s done and is the one with the real potential to go global. It bears noting that he’s invested all of his own money in the project—and it’s taken far more than he expected.

  This is not a cheap venture—Mehrotra has invested more than $100 million in the last five years and is still investing more. But I’m not sure it could be built any other way. I don’t think there’s the venture capital appetite or risk profile in India to fund something like this and most of the mobile equipment companies Mehrotra talked to back when he started thinking about this insisted it couldn’t be done. Once he built it he’d take equipment and operator executives out to see it and they still couldn’t believe it. They were making calls to test the quality from different areas of the village trying to find pockets without a signal. “They were climbing on the antenna and shaking it like monkeys trying to break it and they couldn’t,” Mehrotra says.

  From a business point of view, the operators love VNL because it cheaply expands their existing footprint. The equipment operators aren’t so sure. In theory, VNL isn’t competing with them because they’re not going into the cities. Now that VNL has proved this model works, could a larger established vendor steal the market? The best chance of that would likely come from a Chinese powerhouse like Huawei. That said, any vendor that builds such a low cost solution that’s too good will risk eroding his higher priced systems designed for urban areas. “They’ll say ‘Give it to me in the city too.’ ” Mehrotra says.

  All these awards aside, this is the year for VNL to prove it’s really a viable business. And Mehrotra says there are some surprises in store. In terms of market, VNL is already rolling the technology out in other countries and in terms of product they’re not done with just simple mobile access. The countries are likely in Africa and perhaps Latin America, and my guess is the new functionality will entail turning on some kind of Internet access through the existing base stations. Expect much more on this newly minted international do-gooding darling in 2010.

  
  

  
  

  
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  Twitter Launches A Site So You Can Stalk Twitter Employees AT SXSW

  Posted: March 13th, 2010, 5:48pm PST by MG Siegler

  

  

  While a lot of the smaller startups like Foursquare and Gowalla are getting much of the buzz at SXSW, Twitter isn’t sitting idly on the location sidelines. Sure, they launched location integration on their site a few days ago, but they’ve also apparently set up a sub-site totally around location for SXSW. But here’s the weird thing: It’s only for stalking their employees.

  As co-founder Evan Williams tweeted out earlier, sxsw.twitter.com shows you a Google map of Austin, Texas (where SXSW is held) with tiny Twitter logos overlaid on it, showing Twitter employees at the conference tweeting.

  The site, which is clearly tailored for mobile usage (it looks great on the iPhone, for example), has two areas: “Twitter People” and “To Meet.” The Twitter People area is the one that shows the map and the tweets overlaid on it. The To Meet area is interesting because it asks, “Which of these sound like awesome things to work on?” and gives you a few different options to click on.

  For example, if you click on, “Making fast and sexy applications” it takes you to a list of various Twitter employees at SXSW that you should meet. If you click on “Partnering with Twitter,” you get a different list. Clearly, Twitter is using this site for both new employee recruitment, platform expansion, and partnership opportunities.

  Twitter, while now fairly commonplace in the mainstream (especially the media), first rose to fame among early tech adopters during SXSW three years ago.

  

  CrunchBase InformationTwitterInformation provided by CrunchBase
  

  
  

  
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  Danah Boyd: How Technology Makes A Mess Of Privacy and Publicity

  Posted: March 13th, 2010, 2:20pm PST by Jason Kincaid

  

  Today at SXSWi, keynote speaker Danah Boyd took the stage to talk about privacy and publicity, and how they intertwine online. Boyd is a Social Media Researcher at Microsoft Research New England, and has studied this space extensively for years. It was a compelling talk that challenged the notion that personal information is on a binary spectrum of public or private. To help underscore her points, she recalled and discussed a number of major privacy blunders from Facebook and Google. You can find my notes from the presentation below.

  Boyd says that privacy is not dead, but that a big part of our notion of privacy relates to maintaining control over our content, and that when we don’t have control, we feel that our privacy has been violated. This has happened a few times recently.

  How The Buzz Launch Failed

  As a first example Boyd brought up Google Buzz. She says that nothing with the launch was technologically wrong — you could opt out of Buzz, elect to hide your friend list, and so on. But the service resulted in a PR disaster because Google made non-technical mistakes, doing things that didn’t meet user expectations:

  • Google integrated a public facing system in one of the most private systems you can imagine. Lots of people thought Google was exposing their email to the world.
  • Google assumed people would opt out if users didn’t want to participate. “I can’t help but notice that more technology companies think it’s ok to expose people tremendously and then back pedal when people flip out”, she says.
  • You want to help users understand the proposition. You need to ease them in, invite them to contribute their content.

  Boyd says that years ago, researchers noticed people in a chat room would often ask “A/S/L” (age, sex, location). So some services, looking to streamlines things a bit, started building user profiles that had this information. What they failed to understand is that this “A/S/L” was a sort of chatroom icebreaker. Users lost that, and putting that information in a profile — even if they would have shared it to answer that chat message — could creep them out.

  With Buzz, Google found the social equivalent to the famous “uncanny valley” (where things seem almost natural, but aren’t quite close enough, so they’re creepy). They collapsed articulated networks (email) and assumed it was a personal network.

  Boyd then transitioned to talk a bit about the fuzzy lines between what is public and private. She says that just because people put material in public places doesn’t mean it was meant to be aggregated. And just because something is publically accessible doesn’t mean people want it to be publicized.

  The Facebook Privacy Fail
  Boyd’s second case study was Facebook’s privacy changes in December, when Facebook changed ‘everyone’ to the default. We’ve written extensively on this fiasco, which may take years to really reveal the extent of the damage it has done.

  • Facebook said 35% of users had read the new privacy documentation and changed something in the privacy settings. Facebook thinks this is a good thing, but it means 65% of population made their content public. Boyd has asked non-techie users to tell her what they thought their settings were. She has yet to find a single person whose actual privacy settings matched what they thought they were.
  • Boyd recounted a story of a young woman who had moved far away from an abusive father. The young woman talked with her mother (who had moved with her) about possibly joining Facebook. They sat down to make the content as private as possible, which worked well. But in December, the young woman clicked through Facebook’s privacy dialog (as most people did) and had no idea her content was public. She only found out when someone who should not have seen the content told her.

  Boyd then discussed how different groups of people think about privacy. She says that teenagers are much more conscious about what they have to gain by being in public, whereas adults are more concerned about what they have to lose.

  As an example, Boyd talked about a teenage girl who often put risqué, sometimes illegal content online. When Boyd asked why she’d want to do something, the girl replied, “I want to get a modeling contract just like Tila Tequilla”. Her calculation wasn’t about what she could potentially lose, but rather what she stood to gain.

  Boyd says that most techies think about Personally Identifiable Information, but that the vast majority of people are thinking about personally embarrassing information. People often share private information with their friends in part because it allows them to bond, it makes them somewhat vulnerable and establishes trust. But when it’s through technology (e.g. Facebook’s public by default setting) it’s a huge technology fail.

  Boyd also called out the presence of racism in social media. On the night of the BET awards last year, all of the trending topics were dominated by terms relating to the event and the black community. In response, some Twitter users made very racist comments — clearly even these open communication platforms are still prone to hate.

  To conclude the talk, Boyd pointed out some of the challenges we will continue to face with regard to privacy online. She asks whether or not teachers can be expected to maintain a professional, pristine presence online — something that is very difficult to do while leading a normal life.

  Ultimately, she says, “neither privacy nor publicity is dead, but technology will continue to make a mess of both.” We’ve been looking at privacy and publicity as a black-or-white attribute for content, when really it’s defined by context and the implications of what we’ve chosen to share.

  
  

  
  

  
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  Pixelpipe Gets Into The Location Game With Foursquare Integration

  Posted: March 13th, 2010, 2:00pm PST by Leena Rao

  

  Pixelpipe, the service that lets you syndicate text, audio, video and image files to 120 different social networks, blogs and sites, is adding geolocation functionality to its site with a Foursquare integration. The true virtue of Pixelpipe’s service is the fact that it lets you publish all types of files to various social networks and sites from a centralized place. And the startup offers its service on mobile devices, including a nifty Android app, as well.

  Using Foursquare’s API, Pixelpipe now allows you to add check-in to a location with a link to media captured at the venue, which is hosted on your Pixelpipe Page. And you can check-in to a location with media (text, photo, video, audio or a file) with Pixelpipe’s Android app. Pixelpipe will present a list of venues to a user. The number after the venue represents the number of recent check-insFor example, if you are at SXSW, you can record an audio clip or video and post the media long with your check-in to the Austin Convention Center. The link will lead vistors back to your Pixelpipe landing page.

  Sort of like a Ping.fm for media, Pixelpipe automatically distributes any new audio files, images, or videos to your profiles on social networks, including Twitter, Facebook, and FriendFeed. You can choose to group these services by tags, so you can be more selective about where you’d like to to post the content. Pixelpipe’s CEO Brett Butterfield tells me that Brightkite and possible Gowalla integration will be rolled out in the future.

  As the geolocation wars heat up, it seems like web applications and mobile apps, both new and old, are getting into the location game. Hot Potato, SimpleGeo and new startups StickyBits and Social Great have hooked up their applications with Foursquare. And Foursquare competitor Gowalla upped the ante with a new release.

  CrunchBase InformationPixelpipeInformation provided by CrunchBase
  

  
  

  
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  Foursquare Opens Up Its Firehose. Social Great Takes A Drink.

  Posted: March 13th, 2010, 12:09pm PST by MG Siegler

  

  There’s been a lot of hoopla over the past couple of years about Twitter’s so-called “firehose.” Essentially, it’s an open stream of all their data that is provided to developers to use for third-party apps. Foursquare has a firehose of its own, but access to it has been on lock down. Today, for SXSW, Foursquare opened up its firehose a bit more.

  Social Great, a service which tracks trending places in cities back on location data, has just gotten access to this firehose of data. This allows them to show in realtime the trending places throughout Austin, Texas, where SXSW is taking place. The service also pulls in data from Gowalla, Brightkite, and GraffitiGeo (Loopt).

  As Polaris Ventures EIR Jon Steinberg notes (who helped build Social Great), “the numbers look crazy.” What he means is the check-in data at SXSW. Judging from what I’m seeing on the ground here in Austin, that may be an understatement. Venues routinely have dozens if not hundreds of other Foursquare users at them when they’re trending.

  SimpleGeo, one company that has had early access to Foursquare’s firehose, built Vicarious.ly to visualize real-time check-ins around Austin. That data looks fairly insane as well. Most of the check-ins appear to be coming from Foursquare (which saw over 300,000 check-ins on Thursday alone) and Gowalla, but co-founder Joe Stump notes that the battle is too close to call still.

  One other note: all these check-ins are made possible by the fact that AT&T’s network has been up and working the whole time. It’s been impressive. Crisis averted, so far.

  CrunchBase InformationFoursquareSocialGreatInformation provided by CrunchBase
  

  
  

  
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  Foursquare Opens Up Its Firehose A Bit. Social Great Takes A Drink.

  Posted: March 13th, 2010, 12:09pm PST by MG Siegler

  

  There’s been a lot of hoopla over the past couple of years about Twitter’s so-called “firehose.” Essentially, it’s an open stream of all their data that is provided to developers to use for third-party apps. Foursquare has a firehose of its own, but access to it has been on lock down. Today, for SXSW, Foursquare opened up its firehose a bit more.

  Social Great, a service which tracks trending places in cities back on location data, has just gotten access to this firehose of data. This allows them to show in realtime the trending places throughout Austin, Texas, where SXSW is taking place. The service also pulls in data from Gowalla, Brightkite, and GraffitiGeo (Loopt).

  As Polaris Ventures EIR Jon Steinberg notes (who helped build Social Great), “the numbers look crazy.” What he means is the check-in data at SXSW. Judging from what I’m seeing on the ground here in Austin, that may be an understatement. Venues routinely have dozens if not hundreds of other Foursquare users at them when they’re trending.

  SimpleGeo, one company that has had early access to Foursquare’s firehose, built Vicarious.ly to visualize real-time check-ins around Austin. That data looks fairly insane as well. Most of the check-ins appear to be coming from Foursquare (which saw over 300,000 check-ins on Thursday alone) and Gowalla, but co-founder Joe Stump notes that the battle is too close to call still.

  One other note: all these check-ins are made possible by the fact that AT&T’s network has been up and working the whole time. It’s been impressive. Crisis averted, so far.

  CrunchBase InformationFoursquareSocialGreatInformation provided by CrunchBase
  

  
  

  
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  Rushin’ For Fiber, Baltimore Appoints A “Google Czar”

  Posted: March 13th, 2010, 9:20am PST by MG Siegler

  

  A couple weeks ago, we noted the city of Topeka, Kansas’ humorous attempt to get Google’s attention: by rebranding their city “Google, Kansas.” Why would they do such a thing? Because they want in on Google’s fiber action — the search giant’s proposed plan to sell 1 gigabit-per-second broadband to consumers. Now Baltimore, Maryland is getting in on the fun as well.

  The city has appointed a “Google Czar” — yes, that’s the actual title — to lobby the company to put Baltimore on the list of cities in the initial trial. Tom Loveland, CEO of a local tech company, Mind Over Machines, has been appointed by Baltimore’s mayor to take this exalted, but volunteer position.

  The Baltimore movement has also launched a website, BmoreFiber, which states in huge, bold letters, “Ask Google to Invest Billions in Baltimore’s Future.“

  These attempts by cities to catch Google’s attention, while humorous, show a massive desire for better broadband in this country. It’s kind of sad that it takes an outsider, Google, to spur faster broadband development. Meanwhile, companies that offer broadband as a core business, like Comcast, drag their feet with service that is an order of magnitude slower at huge prices.

  
  

  
  

  
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  The New Museum Brings Together Seven Artists With Seven Engineers (50 Discount Tickets)

  Posted: March 13th, 2010, 9:10am PST by Erick Schonfeld

  

  

  What happens when you pair seven visual artists with seven engineers and technologists? The New Museum in New York City is about to find out. An upcoming exhibit called Seven On Seven will put together artists and programmers for one day and tell them to come up with something together. It could be an application, a work of art, a full-blown product, or anything they want. Some of the participating technologists include Delicious founder Joshua Schachter, WordPress co-creator Matt Mullenweg, former Facebook data dude Jeff Hammerbacher, and Tumblr founder David Karp.

  Here are all seven pairings:
  Artist / Technologist
  Cao Fei / Jeff Hammerbacher
  Evan Roth / Joshua Schachter
  Aaron Koblin / Matt Mullenweg
  Monica Narula / Andrew Kortina
  Ryan Trecartin / Hilary Mason
  Tauba Auerbach / Ayah Bdeir
  Marc Andre Robinson / David Karp
  

  Schachter, for instance, is being paired with artist Evan Roth, who has created open-source software to analyze graffiti tags and has even created a Graffiti Markup Language (GML). Schachter, of course, pioneered the use of data free-form tags to categorize Delicious bookmarks years ago. Mulennweg is being paired with Aaron Koblin a digital artist who creates art based on the input of thousands of individuals. He is also the artist who created Radiohead’s “House of Cards” video using no cameras (embedded below)

  The seven pairs of collaborators will present their final project at the New Museum on April 17. We have 50 discount codes good for $100 off the $350 ticket price (just enter the code “techcrunch” here).

  The idea to pair programmers with artists came from betaworks CEO John Borthwick, who is also a board member of Rhizome, the New Museum affiliate which is put the program together.

  

  CrunchBase InformationJoshua SchachterMatt MullenwegJeff HammerbacherInformation provided by CrunchBase
  

  
  

  
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  An Ecosystem Is Born: Animoto Opens Up API

  Posted: March 13th, 2010, 5:12am PST by Leena Rao

  

  

  We’re big fans of Animoto, a website that lets you easily create photo and video slideshows matched to music. The site is constantly innovating its nifty product, most recently adding an iPhone app and the ability to incorporate video. For those not familiar with Animoto, the startup basically allows you to take your images, video and your music and mash them together to create cool videos. What makes the videos cool is the company’s technology that renders the pictures so they’re in-step with the music you’ve chosen, adding nice transition effects. This morning, Animoto is opening up its API, allowing partners to now incorporate Animoto’s compelling technologies into independent sites

  The first API that being rolled out for the Animoto Partner Platform is Animoto Quickstart.  The API essentially allows any website to tap into Animoto’s video creation flow.  The aim is to make Animoto one click away from any website that has photos, videos or music.  Quickstart allows websites to connect their own content, including photos, video clips and music to Animoto as the first step in creating an Animoto video. So partners can integrate Animoto’s video slideshow creation tool into their sites. And the startup promises that Quickstart takes only hours to a partner to set up on a site.

  For example, SmugMug, a photo sharing site that caters to professional photographers, uses Quickstart so users can ‘pass’ their photo albums into Animoto’s video creation flow. So the user now has the option of making a slideshow from their hosted photos and simply needs to pick a song to complete their Animoto video. Once a user clicks to make the slideshow, he or she will be taken to Animoto’s site, where their video and photos will automatically be placed into Animoto’s site.

  Another use case is a promotion Animoto is launching with iconic musician John Bon Jovi where fans of Bon Jovi can go to Bonjovi’s site to create an Animoto music video with Bon Jovi’s latest single and footage from his music video.  Pepsi also used the Quickstart API to help users create video slideshows in a contest involving its ShareTheJoy campaign.

  With the launch of this API at SXSW, Animoto is partnering with music publication SPIN magazine to allow fans to promote their favorite South by Southwest bands for a chance to win prizes.
  From now until March 31, 2010, fans can create and submit Animoto videos featuring songs from top South by Southwest bands for a chance to win $1000 and a spot on Spin.com, and other prizes.
   
  Currently Animoto has 1.4 million users and makes money off of its paid subscriptions. On its site its free to create 30 second videos, but you need to pay $3 per video to make an lengthier slideshow. The site sells a year long subscription to users for $30. A large part of Animoto’s subscription business is composed of professional videographers and photographers who pay $250 per year to create their own branded videos that they can download, and burn to a CD (and the slideshow doesn’t bear the “Animoto” logo). Animoto’s CEO Brad Jefferson tells me that 10 percent of users, so 140,000 people, are have paid for at least one product on the site.The company is already cash-flow positive, which isn’t bad for a startup that’s less than three years old.

  In terms of monetizing the API, Animoto isn’t charging any of its partners. In fact, it’s actually paying its partners in terms of affiliate fees. So if any partners lead new users to the site who end up buying a subscription, Animoto will give the partner a 40 percent cut of the first year’s consumer subscription fee or $50 of the first years pro subscription fee.

  The Quickstart API seems to be the first of a few sets of APIs that will extend Animoto’s technology onto the other sites. It’s a smart move. While many photo sharing sites have the ability to make slideshows, the technology is not nearly as fun and easy to use as Animoto’s. And Animoto is undoubtedly a compelling tool for an brand marketer to use for a campaign. Frankly, the possibilities are endless because Animoto is such an easy tool to use.

  CrunchBase InformationAnimotoInformation provided by CrunchBase
  

  
  

  
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  MySpace’s Mid Level Management Structure Is Crumbling

  Posted: March 12th, 2010, 9:32pm PST by Michael Arrington

  

  The problem with all of these people who are walking out the door at MySpace isn’t so much the number of them, because MySpace is trying to replace them by hiring more people. It’s the fact that the best people are leaving, and taking a lot of the knowledge base with them.

  Three star senior employees left to go to cross-town startup Gravity, we reported earlier this week. And tonight we’ve heard that Jeff Webber, the engineering director that oversees the email, instant messaging and other “communications” platforms for MySpace, resigned earlier this week as well to join a startup. He’s been at MySpace for nearly three years and was one of the star engineers and leaders, says one source.

  Other recent departures – VP and General Manager of Mobile John Faith, SVP User Experience Katie Geminder and most of her team. And of course CEO Owen Van Natta. And lots more as well, only a few of which we’ve reported.

  The company has no direction, says everyone we talk to at MySpace except the top execs, and internal politics are the only thing that seem to matter. Ambitious new projects like Remaking MySpace have been thrown away just because the wrong exec supported it. Anyone who actually wants to build products has left or is looking for a new job, say many, many sources.

  If you’re a MySpace employee and feel differently, please contact us anonymously. Because right now all we see is a ton of fluff and absurdity coming from the top, and massive morale problems at the middle management ranks.

  The title of this post is actually a recent quote from a (now former) MySpace employee, and it seems to be accurate. They say a company has to hit rock bottom before it can even think about rebuilding into something new. If that’s the case, the time to start rebuilding is, apparently, right about now. But in our opinion MySpace has no chance at all until it is free of the News Corp. death grip.

  CrunchBase InformationMySpaceInformation provided by CrunchBase
  

  
  

  
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  E-Book Readers: Will Secondary Features Win Consumers’ Hearts Or Leave Them Cold?

  Posted: March 12th, 2010, 6:47pm PST by Devin Coldewey

  

  
  How many e-book readers do you think are out there right now for you to choose from? If you did a little digging, I bet you’d find 50 or so. Maybe 10 really worth checking out. But right now is a bit of a weird period in e-reader history. The Kindle cemented e-readers in the consumer headspace, catapulting them from weirdo alternative technology to mainstream gadget. That’s what the iPad threatens to do with tablets — we’ll see about that. But the Kindle and the iPad are two important data points in the current e-reader wars; the question, upon the answer of which depends the success of many a device, is whether “bonus” features like second screens and weird form factors in e-readers will be enough to differentiate them from the high-profile devices pressing them on both flanks?

  See, the vast majority of e-readers were designed as a response to the Kindle, not to tablet computers, which may or may not obsolete e-readers altogether. It’s a bad situation: the whole time you’re improving your competitor’s product, someone else is skipping your entire device class on the grounds that it will be made ridiculous by their awesome gadget. Some of the special features developed to combat the Kindle will stay, and some won’t live to see their own first birthday.

  Continue reading…

  
  

  
  

  
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  MyBrandz: Finally, You Can Find People Who Love Nike, Apple, And Ferrari As Much As You Do

  Posted: March 12th, 2010, 3:50pm PST by Jason Kincaid

  

  Ever wanted to tell the world how much you love BMW, Coca-Cola, and any of the other biggest brand names on Earth? Here’s your chance: MyBrandz is a new community site that looks to let people talk about their favorite brands with other users, allowing them to share their favorite products, photos, and more. You may remember MyBrandz as the company that convinced a guy to tattoo the YouTube logo to his arm a few months back.

  My initial reaction to the site was that it was a bit bizarre — is there really an audience of people who want to talk about how much they love these multibillion dollar corporations (many of which couldn’t give a hoot about their customers)? And then I remembered the throngs of die-hard Apple fans that police internet forums, and the Ferrari store in downtown San Francisco that sells $200+ leather jackets emblazoned with the classic logo. Yeah, there’s definitely an audience for this.

  Once you’ve browsed to the fan page of the company you like, you can share notes, photos, video, and links with like-minded fans. To help boost engagement, the site is currently running a promotion that invites users to ‘own their brand’ — the top user for a given brand site will win a free stock certificate. The site is happy to point out that “a Google share is worth more than $600 and an Apple share over $200″, but doesn’t go out of its way to say that the top user on Playboy’s fan page can expect a windfall of $3.58.

  The site has some nice touches, like a scrolling wall of logos to help you quickly build out a roster of your favorite brands, and a graph that plots the ranking of brands based on their market value and popularity. But, as with most social sites, it’s going to face a chicken-and-egg problem. And many of these brands have already spawned their own communities and forums — it’s going to be hard to get those to migrate to MyBrandz.

  Brand fans may also want to check out Logorama, the brand-studded animated short that just won an Oscar.

  

  CrunchBase Information MyBrandz Information provided by CrunchBase
  

  
  

  
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  South Asian Mobile Social Network Mig33 Sending Twice As Many Messages A Day As Twitter

  Posted: March 12th, 2010, 2:02pm PST by Leena Rao

  

  

  Mobile social networks have tremendous potential to flourish in developing countries where mobile phone usage trumps internet connectivity. SMS based social networks like SMSGupshup have gained considerable traction in Asia because of this. For example, in India, there is currently a 10 to 1 mobile-to-PC ratio. Mig33, a mobile social network that involves VoIP calls, instant messaging, e-mail, text messaging, and picture sharing, has accumulated 35 million registered users of its service and is growing fast in South Asian markets such as Indonesia and India. Assuming 3 to 10 percent are active on a monthly basis, that would be 1 million to 3.5 million active users.

  Mig33’s users are now sending over 1 million virtual gifts a month, and posting approximately 100 million messages a day on its network, or 1,000 messages every second. Twitter, in comparison, just passed 50 million a day. Mig33 is eying the virtual gift economy as a revenue maker because of the model’s success for China’s similar application, Tencent QQ. According to Mig33, the Chinese mobile social application has nearly 8% of its over 500 million users in China paying about $2 per month in virtual gifts and goods. Mig33 is hoping to emulate that model in markets like Indonesia, India, South Africa, Bangladesh, Kenya, and Bosnia.

  Mig33 is available worldwide and optimized for more than 2,000 different mobile devices. The startup has steadily added to its app by integrating social games, user-owned groups, virtual gifting and, most recently, avatars. Avatars are actually a source of revenue for mig33, by charging users to customize and enhance their avatars. Mig33 is looking to expand the virtual economy. In fact, the startup says that its revenue stream has grown to over $1 per user per month in countries such as Indonesia and India.

  Founded in 2005, mig33 is backed by Accel Partners, Redpoint Ventures and DCM and has raised a total of $23.5 million.

  CrunchBase InformationMig33Information provided by CrunchBase
  

  
  

  
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  It’s Hard To Watch The Newsosaurs Turn A Blind Eye To Their Own Extinction

  Posted: March 12th, 2010, 11:47am PST by Erick Schonfeld

  

  

  Sometimes it is obvious where the world is headed, but some people and industries become frozen in place and time. They are like the duckbilled dinosaurs happily munching on the still-abundant plants around them when the meteor strikes instead of the small furry mammals underfoot who take cover every day by natural habit. In the print newspaper industry, it’s the same story. Everyone wants to wall off the Web and keep grazing on declining ad revenues.

  A week ago, I wrote a post based on a conversation I had with Silicon Valley entrepreneur and investor Marc Andreessen in which he made the case that print media companies would be better off shutting down their print operations now (“Burn the boats”) and move forward unencumbered into the digital age, no matter how painful that may be. That suggestion hit a deep nerve, and continues to do so.

  Just yesterday, Allan Mutter, who writes the blog Reflections of a Newsosaur, took exception to Andreessen’s advice. By his estimate, in 2009:

  Print-driven newspaper revenues still are running at better than $30 billion a year. It doesn’t take a certifiable Silicon Valley genius to see that no business can walk away from some 90% of its revenue base without imploding.

  Mutter’s indignation is typical of the response to the article, even among enlightened newsosaurs. But that is exactly what Andreessen is saying. As I noted in my original post, he is quite aware that “at risk is 80% of revenues and headcount” (or 90%, if you take Mutter’s numbers).

  Yes, the Internet media business is much less lucrative than the print side, and may never replace it in terms of the revenues it generates. But Andreessen’s point is that the meteor is on its way and the sooner that media companies start looking for cover, the more likely they are to survive.

  He is not trying to be an alarmist. He’s just a realist. In the technology industry, similar disruptions happen all the time. The companies that survive are the ones that adapt and jump onto the next wave of technology before the one they are on finishes cresting. So the real question is one of timing. How long will it take that $30 billion print business to go to $20 billion, $10 billion, or zero? No doubt, it will take years, probably decades. But how long do print media companies wait before they leave their old business behind?

  The people who read print newspapers and magazines are getting older and older, while advertisers always chase the young and impressionable. That audience is already on the Web. And they are no longer satisfied with getting all of their news from one or two trusted sources. They get their news from all over the place: newspaper sites, TV news sites, blogs, Twitter, Facebook. More and more, the news is coming to them through their friends and the various streams they consume. The old days of cross-subsidizing political news with ads from the Travel and Auto sections are over.

  The longer media companies wait, the bigger disadvantage they will have when they cross over to the other side and find a whole new host of competitors who never had any print legacy businesses to protect. Those competitors right now are blogs and online news hubs who are still furry little rodents in the underbrush, but who won’t stay little forever. The sooner print media companies cross over, the sooner they can be on pure offense. Their online strategies and business models won’t be crippled by any allegiance, or need to protect, to the old print business. If they wait until their online revenues become 25 or 50 percent before they fully commit, it will be too late.

  But that is probably what will happen. Media companies are still surrounded by $30 billion worth of leaves that look mighty good.

  Photo of duckbilled dinosaur fossil by Ed Schipul .

  
  

  
  

  
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  Brightkite’s Sneaky Plan To Get Regular Users Into Location: Group Text

  Posted: March 12th, 2010, 11:41am PST by MG Siegler

  

  Brightkite is tricky. Tricky and smart.

  While larger than most of their location-based rivals with over 2 million users, they know that in the past year they’ve lost some momentum to the newer check-in services like Foursquare and Gowalla. So they’re trying to do something unique to swing momentum back in their favor.

  Today, at the SXSW festival in Austin, Texas, Brightkite is unveiling its new Group Text service. It’s both a feature on the website and a standalone application in the App Store (it should be available shortly). With it, Brightkite is latching onto one of the most popular and fast growing categories in mobile applications: group texting. Unlike regular text messaging, this type of app allows you to message many people all at once (and go back and forth). And better, in a world where cell providers are still managing to rip-off users with their text message bundles or $0.15 rate per-text, group texting is absolutely free.

  Services such as textPlus have already made the functionality very popular on the iPhone, and now Brightkite hopes that will translate into converting different types of users over to its core location-based service. The reason is that built-in to the Brightkite Group Text app is the core Brightkite functionality itself. While it’s a bit buried to the left hand side of the menu, you can both check-in at venues, and get check-in updates from other users in the app.

  It’s a smart play. As other location services such as MyTown have proven, there’s a market to get users outside of the traditional early-adopter crowd into location by doing something novel (in their case, a straight-up Monopoly-type game). Group texting users seem to be rabid about the software, so why not give them a little location-based bonus to play around with if they desire?

  At the same time, this app provides a nice compliment to the Brightkite service itself. With it, users get another social outlet to communicate with, sending messages or pictures, and having them threaded both in the app and online. And yes, it still works with traditional SMS messaging, as Brightkite was lucky enough to be granted a texting shortcode (41414) and it can work with these threaded conversations. For example:

  By adding three digits to the end of the code, each person can now have 100 simultaneous threaded text conversations running on their phone.
  41414-001 = conversation 1
  41414-002 = conversation 2

  And thanks to the SMS support, you can contact anyone in your address book, not just those using the app.

  The service is now live on Brightkite’s site, and look for it later today in the App Store.

  

  CrunchBase InformationBrightkiteInformation provided by CrunchBase
  

  
  

  
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  CauseWorld’s New App Melds The Check-In With The Check-Out

  Posted: March 12th, 2010, 10:30am PST by MG Siegler

  

  Last night, we wrote about a CauseWorld teaming up with TechCrunch to provide double karma points during the SXSW festival starting today in Austin, Texas. These points, obtained through checking-in at various locations, can be used to donate to charities through big brands that support the app. It’s a great feature, and we hope you’ll use it in Austin. What we didn’t talk too much about is the app itself that enables it, CauseWorld, which just released a new version of its iPhone app in the App Store.

  We first covered the app back in December, but now it has been significantly upgraded. One of the core ideas behind the app has always been the intersection of the mobile and physical world (something I’ve thought a lot about as well). A new feature bridges the gap a bit more as you can now scan barcodes on individual items with your iPhone to earn extra karma points. Proctor & Gamble are the ones sponsoring these points on different products they make. It’s a good idea, because even if you choose not to buy the item, it forces you to pick it up and look at it a bit.

  This feature points to the bigger idea that CauseWorld parent Shopkick is thinking about when it is ready to launch its flagship product (CauseWorld was born as just a trial site of an idea, but quickly ballooned into an app with over 300,000 downloads). It’s the idea that the cellphone is the only interactive tool you carry in a non interactive setting at all times. So why not use it to make the physical retail space more interactive, Shopkick CEO Cyriac Roeding reasons.

  Another huge addition to the CauseWorld app is a social layer. Previously, the app was all about what you did. But now you can hook it up to Facebook (which will earn you bonus karma points) and share the progress and donations you’re making with your friends. On top of this there are new features such as gifting which will help the app virally spread through social networks.

  This social layer also allows for a leaderboard to be created showing which of your friend have donated the most karma points. Sometimes social pressure is the best way to get people motivated.

  Again, CauseWorld stems from trying out an idea to see what would work with the larger Shopkick plan when that eventually launches. But the response to it has shown Roeding enough that he believes ”the next big thing after the check-in is the check-out.” Given the big brands they’re signing up to support CauseWorld, he just might be right.

  You can find the new CauseWorld 1.5 in the App Store here. It’s a free download.

  CrunchBase InformationCauseWorldshopkickInformation provided by CrunchBase
  

  
  

  
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  FunMail’s FunTweet Visualizes Twitter Streams With Pretty Pictures

  Posted: March 12th, 2010, 9:58am PST by Leena Rao

  

  We’ve written about FunMobility’s nifty picture messaging app for the iPhone and Android, called FunMail, that allows users to blasts their text into the application, which then breaks down whatever the user typed for context and places fun graphics with your original text. Now, FunMobility has caught the Twitter bug and is launching FunTweet, a web service which turns any Twitter stream into visual messages that are related to the text.

  Similar to FunMail, FunTweet will turn text in Tweets into a matching image. On FunTweet’s site, you sign in with your Twitter credentials and the service will draw your Tweets from your Twitter homepage feed and display each tweet as a FunMail image on FunTweet. Users can also enter a @UserName, a HashTag or a Subject as well to the images. If you like the image FunTweet picked, you can publish the Tweet to your Twitter account. If you don’t like the image, click “Try Again” and you can choose from other images. For example, if you tweet about writing a story or reading a book, then FunTweet will come up with images that match “story” – a book, a magazine, a typewriter, or a pen.

  FunMobility is hoping FunTweet can be a display tool for parties, conferences and other gatherings where live stream messages may be projected. I find myself wishing I could include my own pictures into my FunTweets so I’m hoping the site will soon include that functionality.

  FunMail for the iPhone has gained a bit of traction in a short amount of time with 100,000 downloads since its launch in November. So FunTweet could gain a loyal following a fun tool to spice up Tweets. TwitSig and SayTweet also allow you to make images from Tweets.

  CrunchBase InformationFunMobilityInformation provided by CrunchBase
  

  
  

  
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  Pentagon Partially Blames The Internet For That Christmas Underwear Bomber

  Posted: March 12th, 2010, 9:41am PST by Nicholas Deleon

  This is the lede, verbatim, from a story that appeared in The Hill yesterday: "The Internet allowed extremists to contact, recruit, train and equip the suspect responsible for the attempted Flight 253 bombing on Christmas Day 'within weeks,' a top Pentagon official told lawmakers Wednesday." What's the implication, that because someone used the Internet to plan something, something bad, we should get rid of it? Fine by me, believe me.

  
  

  
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  Sonos Confirms $25 Million Investment From Index Ventures

  Posted: March 12th, 2010, 9:31am PST by Michael Arrington

  

  Sonos has now confirmed the Index Ventures investment we reported two days ago. The company has taken an additional $25 million in capital from Index, raising the total raised by the company to $65 million. And Index Ventures Partner Mike Volpi, a former CIsco executive, has joined their board of directors.

  The funds will be used for growth equity, says the company, which signals that they are past the proof of product stage (well past, in this case) and will use the funds to speed market penetration.

  From our original post:

  Volpi will bring real expertise to the Sonos board. As recently as 2007 he ran an $11 billion routing and access products busines for Cisco. He clearly knows how to sell products at scale.

  Sonos has been around since 2003 and has raised some $40 million from private angel investors and BV Capital. Until last year the company sold very high end music products that users loved passionately, but the mutli-thousand dollar price point for a complete system made mainstream penetration difficult.

  But in 2009 Sonos began selling a new product, the S5 music system, that users control via their iPhone. The S5 is just $400 and has driven “massive growth” says the company.

  Like Flip last year, Sonos likely had a choice between selling now or raising new money for major expansion. Flip sold to Cisco. Sonos, it seems, is taking more money, but adding an ex-Cisco exec as well. Perhaps they’ll get their cake and eat it, too.

  CrunchBase InformationSonosIndex VenturesMike VolpiInformation provided by CrunchBase
  

  
  

  
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  TechCrunch Friday GiveAway: An Apple iPad #CRUNCH

  Posted: March 12th, 2010, 8:49am PST by Michael Arrington

  

  It’s Apple iPad day, and every early adopter worth their salt is pre-ordering one of the soon to be ubiquitous little devices and counting the days until they get their hands on it on April 3. You’ve been waiting on this thing since December 2008, after all.

  We know you’ve already bought two for yourselves, the limit, because that’s how TechCrunch readers roll. We know this because we’ve told our advertisers that every single one of our 9.2 million monthly readers is a high disposable income influencer in technology and media that just loves to try out new things that they see advertised on TechCrunch. And since those advertisers believe us, we have the means to buy an extra iPad and give it to you. Even though you’ll then have three of them. Because you, dear reader, are a high disposable income influencer.

  Anyhow back to the iPad. This isn’ the 3G version, which comes later in April. This is the 16GB Wifi iPad, a $499 retail device, that we’ll give away to one lucky reader chosen at random who comments below or retweets this post. Just fan the TechCrunch Facebook page and then do one of two things: either retweet this post, and make sure to include the #crunch hashtag, or leave a comment below telling us why this device must be yours. The contest ends at noon California time on Saturday. Please only tweet the message once, anyone tweeting repeatedly will be disqualified. We’ll pick a winner tomorrow afternoon and contact you for more details. Anyone in the world is eligible, as long as you can receive delivered packages (our Nexus One winner lives in Romania). And we’ll throw in a TechCrunch tshirt.

  Update: The winner and runner up have been chosen randomly and have been contacted. As soon as we confirm contact we’ll update with the winner.

  CrunchBase InformationiPadInformation provided by CrunchBase
  

  
  

  
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  Lunch.com Communities Let You Build Your Own Niche Reviews Site

  Posted: March 12th, 2010, 8:10am PST by Jason Kincaid

  

  Last August, we wrote about Lunch.com, a reviews site that’s setting out with the goal to make the world a better place by changing the way people think about each other (as I wrote then, it’s a pretty lofty goal). Today, the company is launching a new feature called Communities that lets users build their own review sites around any niche topic. If you’d like to try founding a community, you can do so using the beta code “techcrunch”.

  The new feature can be likened to a ‘Ning for review sites’. As a community founder, you select a topic on whatever you’d like, then invite other users to contribute reviews and other content (you can elect to moderate this as it comes in). For examples, check out Strollerland, a new community that’s dedicated to reviewing strollers. There’s also Gluten Free Groupies, for (surprise) people who like to talk about gluten-free foods.

  The benefits of this kind of niche-community setup are clear — if you cater to a group of people passionate about a given topic, they’re probably going to be more knowledgeable and engaged than your average user. I’d rather take recommendations from someone who reads about strollers all day than from a guy who liked the one he chose at random at Wal-Mart.

  CEO J.R. Johnson says that Lunch’s system allows for the creation of multiple communities around the same topic (for example, there could be ten different reviews communities that revolved around bicycles). Because all of these niche review sites are built on the Lunch.com platform, the site can use its universal search and suggestion engine to recommend content you may be interested in, even if it’s found on a different community than the one you’re currently browsing.

  However, it sounds like new communities may have some trouble getting off the ground.  Johnson says he expects that lots of the niche review sites will be launched by existing online communities (say, a Yahoo Group).  For them, the system should work well, but if you just want to launch a review site about stamps but don’t already have many friends who are interested in the topic, you may have trouble getting much traction.  That said, these niche communities will be exposed to search engines, and if you produce relevant content Lunch’s recommendation engine should also help introduce your community to new users.

  

  CrunchBase Information Lunch Information provided by CrunchBase
  

  
  

  
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  Update: In Time For SXSW, Twitter Officially Turns On Geolocation

  Posted: March 12th, 2010, 7:37am PST by Leena Rao

  

  

  A few days ago, we spotted Twitter’s initial roll out of a geolocation feature on its Website. It appeared that Twitter was testing the feature because it quickly turned it off. Last night, the feature went back on, and Twitter co-founder and CEO Biz Stone officially announced it.

  While Twitter’s geolocation feature has been live through its API since last November, this is the first time Twitter has enabled geolocation on its site. To start Tweeting with your location attached, you need to enable the feature in your Twitter Account Settings. Once you’ve opted-in, you will be able to add your location information to all your Tweets or choose to add them to individual Tweets as you compose them. You can choose to share your exact location (your coordinates) or your neighborhood or town.

  Currently, the feature only works with Firefox 3.5 and Chrome for Windows. If you decide you want to send a Tweet without your location, you can simply click the “x” next to your location to disable it. Interestingly, if you Tweet with your geolocation on Twitter, the location doesn’t seem to show up in TweetDeck, Seesmic or presumably other third-party clients. And It doesn’t work from Twitter’s mobile site, at least not on the iPhone, where it would make more sense.

  As we wrote in our earlier coverage, the timing of this move by Twitter is purposeful. With the SXSW conference in Austin starting today, the location wars are heating up. Earlier in the week, the New York Times reported that Facebook would unveil its answer to location next month at its f8 conference. Google, meanwhile, is in the game with Latitude and to some extent Buzz (but could have been in it a lot more). And of course, Foursquare, Gowalla and a host of other location-based apps are rolling out additional functionality. As we previously noted, many of these apps use Twitter’s geolocation API to pass the data back to Twitter, so it makes sense that this would be a good time to turn the functionality on for the website.

  CrunchBase InformationTwitterInformation provided by CrunchBase
  

  
  

  
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  AOL’s Big SXSW Bet On Seed and “Bionic Journalism”

  Posted: March 12th, 2010, 6:24am PST by Guest Author

  

  

  Editor’s Note: This guest post was written and reported by Steven Rosenbaum, the CEO of Magnify.net.

  Today, the world of music, film, and the internet converges on Austin, Texas for what is fast becoming one of the key places to launch new software products. For the folks at AOL, South By Southwest—known also as SXSW—will be a debutant party for AOL’s new Seed form of journalism.

  AOL has it’s hopes pinned on that fact that SXSW will be the perfect place to both introduce the new Seed content machine to a large audience and test the concept of mixing freelance and pro-journalists to create a huge amount of original content. Seed has been operational for a few months now, but SXSW will be it coming out party, according to former New York Times writer Saul Hansell who is now the Programming Director of Seed.

  How’s this all going to work? Well, fielding an army of freelancers to cover SXSW’s 2000 bands is certainly a baptism by fire. AOL solicited freelance writers on its music site Spinner. Those interested in contributing were redirected to Seed, where they signed up. Hansell asked for work experience, music tastes, and clips. He says: “I can tell you now that we didn’t read the clips. We looked at these things to see if people can follow directions and if they didn’t write us 1,000 words when we asked for 100. And that was the criteria.”

  Next, each of the more than two thousand bands that will play at SXSW were assigned to a Seedster to interview. Hansell says he had his fingers crossed. “I think we’re over the hump of my darkest fears,” he says, “and I had many of them. The first dark fear was we’d get total losers. The second fear was how good the interviews would be. “

  Now, with first results surfacing on Spinner, Hansell says, “The people who sent us e-mails back were entertainment writers for weekend publications, kids in J-school who are also in bands, exactly the right type of people.” But they aren’t treated exactly like journalists. Hansell points out that Seedsters don’t get a press pass—if they want to hear the bands live they’ll have to buy their own ticket. But he expects some number of folks to try and hustle their way into shows by waving around their AOL clips. “That’s just expected.”

  With clips like these, Seed writers are held to the same standards as any other freelancer on the AOL site. AOL Music’s managing editor Melissa Olund and her team edit the submissions and have final say on what runs and what doesn’t.

  Why launch at South By Southwest? For Hansell, that was a no-brainer. “I know it is communicating our ambition. We are about reporting. We are about doing big and interesting things.” The big SXSW bet is that Hansell and his Seedsters can make more content, faster, better, and cheaper than anyone else. In addition the distributed community of potential contributors on Seed, AOL already employs 3,500 professional journalists on staff or as regular freelancers. And AOL has some interesting content search technology from its earlier acquisitions of Relegence and Truveo.

  Man vs. Machine: The Bionic Solution

  

  AOL has built a three legged stool to create content: part professional, part freelance, and part aggregated . . . but its model is far more hand-crafted than the other new players in the mass content creation space. “The essence of journalism has always been separating signal from noise,” says Hansell. “It’s all judgment. It’s all selecting the best bits.” What AOL hopes to create with Seed is an editorial machine which automates the assignment process as much as possible, but keeps the final selection part in human hands.

  “I call it Bionic Journalism,” says Hansell. “Left brain, right brain. We are trying to take the best of a machine, which does lots of things over and over again, and a person.” It’s a tall order, and will take a lot more than a couple thousand band interviews to prove it works.

  Is AOL trying to beat Google at the news gathering game? Hansell says it’s far more than that. “Google News will give you a whole clump of things that are probably about the same thing with a reasonable degree of accuracy. But it can’t tell you what it’s really about. It can’t summarize it. It can’t translate it into people language.”

  The Ugly Economics: Not My Problem

  So, what about cost? Some freelancers are complaining that the web doesn’t pay a living wage. “That is not my problem” Says Hansell. He quickly rephrases, “It is my problem but I didn’t do that, the world did that.”

  He is however trying to sort it out. Asks Hansell: “How do you deal with the fact that the economics of the Internet can’t let you pay what people think that a freelancer can get paid? One way is you give them a bundle. If you give them ten of the same assignments, even if the price is low, by the time they’re done with the tenth one, they can do the tenth one in half the time they could do the first one.”

  Here’s another one of Hansell’s analogies: “Seed is to freelancing as Ebay is to classified ads.” AOL’s Seed may be the future of freelance, but the math remains daunting; “The fact that we gave somebody ten interviews to do after she did one or two before, she’s delighted. That’s 500 bucks. That’s 500 bucks more than she was going to make doing something else, and it’s fun.” Well, “delighted” might be pushing it. Pumping out ten assignments for the price of what many professional freelancers charge for one will favor quantity over quality.

  But if it all works—if Bionic Journalism can attract a massive audience and save AOL—what’s the home run? Here Hansell gets a little bit ahead of himself, but at least he is thinking big:

  “It’s the most high risk improbable outcome, but the most exciting, which is that we become the most dominant force in journalism, broadly defined, in the Twenty-First Century. That’s what we’re shooting for. That’s what Tim is shooting for. That’s what I’m shooting for.”

  And it all starts this weekend with 2,000 indie rock band interviews.

  Steven Rosenbaum is the CEO of Magnify.net, a video curation platform that powers more than 68,000 web sites. Rosenbaum is a serial entrepreneur and Emmy Award winning documentary filmmaker. Watch his video notes of Saul Hansell talking about Bionic Journalism and AOL’s larger journalistic ambitions by clicking in the two previous links. .Follow Steve on Twitter.

  CrunchBase InformationAOLSaul HansellInformation provided by CrunchBase
  

  
  

  
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  Seven Alternatives to the Apple iPad

  Posted: March 12th, 2010, 6:23am PST by Matt Burns

  

  

  Wait! Stop. Before you hand over Apple your credit card and pre-order the iPad, you may want to check out the other touchscreen options available now and in the near future. The iPad isn’t the only game in town. Sure, it might have a fancy-pants interface, but each of the follow seven tablets win the hardware fight, which is just as important to a lot of consumers.

  Of course the hardware only tells part of the story. The iPad has a leg up on all of these options because of the user-friendly iPhone interface, but it’s not like you’re dropping $600+ on a tablet for your parents, right?

  Read more…

  
  

  
  

  
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  Confession: I Pre-ordered My iPad And Breguet Made Me Do It

  Posted: March 12th, 2010, 6:14am PST by John Biggs

  

  I’m a sucker. It’s true. As much you guys think we rail against Apple, we’re like abused puppies, slinking back to our master’s hard ankles, shivering and awaiting praise. Why did I pre-order the iPad? Well, first I’m a gadget blogger. Second there is no certainty that mother Apple will grace us with an early review unit so I want to hedge our bets. Third? I want to see where computing is headed.

  Bear with me here. Apple is not the bringer of fire to a benighted world. Far from it. In my recent writing I’ve been struck by a few parallels with Steve Jobs to Abraham Louis Breguet, a French watchmaker who lived in the 18th century. He was a mechanical genius, to be sure, but he was also a salesman. While the rest of the benighted world was sloshing around in an admixture of feces and mud in the streets of Paris and telling the time by whether the pikemen were stabbing them for being out after curfew, Breguet was selling watches that would not be out of place on the wrist (had they had straps) of a whale in Las Vegas. He invented secret anti-counterfeiting measures but made them part of the allure and not part of a DRM scheme. He designed elegant and beautiful watches in an age of rococo designs but wasn’t above creating a “subscription” watch for the masses who wanted to own a piece of the good life without paying an exorbitant sum of money. Other watchmakers were making commodities and following Breguet’s lead. That’s what’s happening here.

  Read more…

  
  

  
  

  
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  Formerly Cc:Betty, Threadbox Emerges As A Realtime Collaboration Platform

  Posted: March 12th, 2010, 6:10am PST by Leena Rao

  

  Recently, startup Cc: Betty, a nifty service that organized and managed group email threads, decided to rebrand and relaunch its service. The new product, Threadbox, was going to be streamlined and tweaked to appeal to workspace users.

  Today, Threadbox is officially launching in private beta, as a more collaborative and user-friendly service. Essentially, the site aims to combine email, IM, and collaboration tools into one platform. Instead of focusing on email like Cc:Betty, Threadbox centers around collaboration in the workplace. The service organizes and logs every type of communications with clients, allows users to share documents and images, and record decisions and feedback. The new service also has the ability to serve as a project management tool, allowing users to share and track requirements and specs, then track and follow team members from start to finish.

  Additionally, Threadbox aims to serve as a communications tool between employees, with the ability to gather comments, opinions, exchange feedback, share documents and media on the same page. You can add maps, files start conference calls from within the platform. And as the service’s name implies, all communications are threaded and organized according to client and subject. Threadbox still incorporates elements of Cc:Betty’s technology. You can received notifications of thread activity and reply to threads directly from your email client. It’s unclear if the service will integrate with social networks, like Twitter and Facebook.

  The basic Threadbox service is free but the startup offers a premium product for $19.95 per year. Cc: Betty raised $500,000 in December of last year, and has $2 million in total funding now.

  With Threadbox the startup is clearly making a play towards the work user; I’m doubt the average consumer will find the service as appealing as Cc:Betty was for personal use. But collaboration is the key word in enterprise-focused products at the moment, so Threadbox will certainly catch the wave of small to medium sized businesses which are looking to upgrade their communication platforms. However, this is a crowded space with many worthy players so the competition, which includes Yammer, Chatter, Jive, Socialtext, WizeHive, and many more products, will be tough.

  Here’s a video from Threadbox that goes into more detail about the new service:

  

  CrunchBase InformationThreadboxInformation provided by CrunchBase
  

  
  

  
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  Amidst Controversy Storm, Kwedit Reveals Repayment Rate Already At 26%

  Posted: March 12th, 2010, 1:20am PST by Michael Arrington

  

  Kwedit, the innovative and suddenly controversial payments platform for virtual goods, is releasing some early data.

  The service lets users promise to pay later in lieu of a direct credit card payment when they want virtual currency for social games like Farmville. It’s not a legally binding promise, but users have an incentive to pay amounts owed because that allows them to get more virtual currency through the service. Users can pay by, among other methods, mailing in cash or paying at a 7-11.

  When the product first launched they had no idea what percentage of promises would be repaid. Anything at all is incremental revenue to game publishers, and since the stuff they’re selling has no marginal cost (virtual currency), it’s all upside. But after nearly two months of being live, they say the repayment rate is 25.9% If you’re a credit company that would put you out of business.

  But for game publishers, that’s a staggeringly attractive monetization option. Hopefully the company (or its partners) will also disclose the monetization rate as well down the road. Because right now game publishers are only able to get cash out of 1-3% of users. If they can get another few percent to pay via Kwedit, and 25% of that money is actually paid, revenue from games can double or more.

  It’s controversial because Colbert made fun of it, and then the Huffington Post and CBS jumped on the bandwagon. CBS actually called it “toxic.”

  Founder Danny Shader posted a long response here. But the short version is this – the criticism is ridiculous. It’s coming in one case from a competitor (the Huffington Post article was written by the CEO of a company that promotes Visa cards to teens and adults, without any sort of disclosure on the conflict). And the author of the CBS article doesn’t appear to actually understand the product and seems more concerned with getting parents all worked up.

  The really scary stuff in social games was the Scamville nonsense where teens and pre-teens where being tricked into putting long term subscription charges on their parent’s cell phone and credit card bills. Kwedit isn’t even close to that kind of evil. It’s simply a very clever way of monetizing social games, and the most innovative new payments product I’ve seen in a very long while.

  CrunchBase InformationKweditInformation provided by CrunchBase
  

  
  

  
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  The Real War At SXSW: AT&T Versus 15,000 Data-Crazed Velociraptors

  Posted: March 11th, 2010, 11:20pm PST by MG Siegler

  

  We’ve talked a lot this week about the so-called “Location War” brewing at the SXSW festival in Austin, Texas starting tomorrow. That war will happen, but actually, there are likely to be a lot of winners because a few of the location-based services should be able to leverage the exposure to gain usage after the conference. Those with real bloodlust should probably be watching another war: AT&T versus everyone in Austin on their network.

  AT&T’s struggles to stay up last year are well-documented. CNN recently ran a piece about how AT&T hopes to avoid a similar fate this year. But actually, “struggles” is way too kind of a word. If you were at SXSW last year and happened to be on AT&T’s network — like, say, if you had an iPhone, like many festival-goers did — it was an absolute nightmare. You couldn’t make a call. You couldn’t send a text. Data? Ha. At a few points early on I seriously wondered if I had forgotten to pay my bill and AT&T had simply shut my phone off — except that it was happening to everyone.

  AT&T has a funny word for the failure, they like to say it was “unprecedented.” As in, the usage of its network was at levels previously unseen, as a strong percentage of the over 10,000 festival goers (just the interactive part) were using iPhones. Well guess what? Word is that is year, there will be some 15,000 people there for the interactive part. As Samual L. Jackson’s character, Mr. Arnold, says in Jurassic Park, “Hold on to your butts.”

  I’m leaving for Austin tomorrow and I’m terrified of what the AT&T situation will be when I get there. So much so, that I have a back-up plan (which Sprint sent me just in time to test out during SXSW after reading some of my rants against AT&T). With attendance up as much as 50% from the previous year, the number of iPhones in use is sure to be through the roof as well. Did I mention that just about every location-based service known to man is launching an app at the event and hoping every single one of those 15,000 people use it all the time? And based on the early signs, they intend to.

  You’ll remember that after Mr. Arnold says the above line in the movie, he’s savagely ripped limb from limb by a velociraptor.

  But there may be hope for AT&T. They’re clearly well aware of the failure last year, and did try to solve the issue to minimal effect towards the end of the conference. I asked a company representative what they’re planning to do this year, and they have a plan of attack.

  Much of what they sent me is fairly technical, but basically, they now have a system around the Austin Convention Center (where SXSW takes place) that’s the equivalent of 8 cell sites, with 50 antenna nodes to cover the whole venue. Also, they’ve greatly expanded network capacity, moving from one radio network carrier to three, boosting the spectrum available for phones to use. They also say they’ve expanded the capacity of the so-called “high quality” 850 MHz spectrum, which works better indoors because those signals can go through walls more easily. They also have the new HSPA 7.2 software installed at all of the 3G cell towers now. But don’t be confused: that doesn’t mean their network has been upgraded to 7.2 Mbit/s speeds (sadly, at the peak, it’s still half that in almost all of the country), it just means that the upgraded software is in place and should be more reliable and efficient.

  But there’s more. AT&T has brought in two Cells on Wheels (the so-called COWS that they brought in to help last year), and also a third rooftop temporary cell site. Each of these are equipped with both 3G and WiFi networks to help alleviate overall network strain. AT&T says these three cells are placed in optimal positions around the city of Austin where they expect the most strain.

  All of that sounds great, but I’m still terrified. Why? Because I live in San Francisco. AT&T has known for months that the network is awful here, and while there have been baby steps taken to improve it in some areas, more often than not, it’s still awful. Take tonight, for example. So if AT&T knows it’s bad here, but still can’t seem to fix it, why should I believe Austin will be any different? I don’t. I’ll just have to hope I’m wrong.

  Or I’ll have to kick back, relax, and take joy in the bloodbath as iPhones are magically turned into glistening bricks being hurled in anger left and right. As I boot up the Sprint Hotspot, of course.

  

  [photo: universal pictures]

  CrunchBase InformationAT&TInformation provided by CrunchBase
  

  
  

  
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  Music Distribution Service Zimbalam Opens

  Posted: March 11th, 2010, 11:19pm PST by Steve O'Hear

  

  Zimbalam, the digital music distributor from Believe Digital, launches in the US today.

  The service lets artists submit and distribute their music through 25 of the most popular music platforms, including Apple’s iTunes and Spotify, in addition to “several hundred additional stores worldwide”. This makes Zimbalam the largest music distribution network as measured by number of stores and geographic reach, says the Paris-based company.

  To distribute their music via Zimbalam’s network, artists are charged a simple annual fee ($29.99 in year one then $19.98 per year after for an EP or album) and then once the fee is recouped, get to keep 100% of royalties – after, of course, whatever commission is taken by each store. Additionally, following year one, artists won’t be charged by Zimbalam if they don’t make enough sales to cover the annual fee.

  
  

  
  

  
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  And It Begins: Foursquare Shatters Its Check-In Record The Day Before SXSW

  Posted: March 11th, 2010, 9:17pm PST by MG Siegler

  

  

  The official Foursquare account just sent out a tweet letting everyone know that today is already the service’s biggest day ever. This is interesting since it’s actually the day before the SXSW conference kicks off in Austin, Texas.

  According to the tweet, Foursquare broke 275,000 check-ins (the previous record, set last Friday) for the day “hours ago.” This means they’re very likely well past 300,000 now and perhaps even higher. To put that in some perspective, just a month ago, Foursquare set a record with 1.2 million check-ins for the entire week. And that was double was it was the month prior. At today’s rate, Foursquare would be doing well over 2 million check-ins a week.

  Today happens to be the first birthday of Foursquare, so they shared some numbers earlier. The service now has over 500,000 users, they’ve given out over 1 million badges, there are over 1.4 million venues in the system, with over 1,200 specials available. And in total, there have been some 15.5 million check-ins. But that was before today’s record numbers.

  While there are well over a dozen location-based services launching something at SXSW, the main two competitors vying for users’ time are expected to be Foursquare and Austin-native Gowalla. For its part, Gowalla noted that it was “Amazing to watch the Gowalla action on the eve of SXSW. AMAAAAAAZING!,” earlier today. Both recently revamped their websites, and both yesterday launched their new iPhone apps. And judging from the Vicarious.ly data provided by SimpleGeo, both are absolutely on fire right now and could go nuclear this weekend.

  Update: Gowalla has a range of just about every possible venue you can imagine for SXSW and so far (again, the day before the conference), they’ve seen 352 check-ins at the SXSW Badge Pick-Up alone.

  CrunchBase InformationFoursquareGowallaInformation provided by CrunchBase