Sunday, April 24, 2011

Amazon cloud problems

http://www.nytimes.com/2011/04/23/technology/23cloud.html?ref=technology

The above link is to an article that discusses Amazon and problems in its cloud computing services the past week. Amazon has been an industry leader in the cloud computing services, having over 1000 different companies, many of them start ups, relying on its services to supply the computing power for their operations. The cloud model makes sense for many small businesses interested in rapid growth who do not want to pay for large, up front hardware and software costs. However, Amazon's cloud has experianced problems this past week, resulting in many companies being forced to halt their operations. This has further increased the discussions surrounding the cloud model; is it worth allowing a third party controlling a company's data, beyond its control? By tapping into the cloud, companies forgoe large startup costs. However, is the cloud model less costly when taking into account the added risk of a thrid party managing such a large portion of your resources? This is a question that companies must ask themselves when deciding to use the cloud model.

Monday, April 18, 2011

New Tech Bubble

http://www.businessweek.com/magazine/content/11_17/b4225060960537_page_5.htm


The above link is to a businessweek.com article that argues the current technology bubble we are in may not be such a great thing. The current tech bubble focuses on social media websites and better ways to market ads to consumers of these sites. Therefore, the emphasis in this bubble is not on new technology, but instead based on the underpinnings of older technology. The author then asserts that a significant portion of this generation's brightest minds will be wasted trying to develop advertising models for websites when they could be developing new technology for a greater purpose. The article then shifts to discussing companies which have applied the data analysis tools used in the Silicon Valley realm to solve real-life tangible problems, such as cancer. The company Claudera, started by a former Facebook employee, is trying to build an operating system for analysing enourmous amounts of data for answering questions regarding cancer.

Sunday, April 10, 2011

iPad effects on market

http://www.businessweek.com/magazine/content/11_16/b4224031138429.htm

The above link is to a businessweek.com article which discusses the iPad and how it has had a detrimental effects to other companies in the PC market. The article discusses Acer and Asustek, two PC manufacturers who were very successful in selling inexpensive netbooks the past few years due to the economic downturn. However, Apple's iPad has allowed customers to purchase a product more appealing at the same cost. This has caused sales growth in companies like Acer and Asustek to decline dramatically. In response these companies are planning to launch their own line of tablets. A major problem for these companies though is to find a capable operating system for the tablets. Currently companies like Microsoft and Google have focused their time on operating systems for smart phones and have not geared toward tablets. This poses a major problem for companies looking to get into the tablets market as they are already far behind Apple. The author then suggests a strategy for Acer and Asustek to take back their market share would be to undercut Apple with price cuts. However, Apple already set its iPad price so aggresively low that it is very difficult to do this.

Sunday, April 3, 2011

Google and Social Networking

http://www.nytimes.com/2011/03/31/technology/31ftc.html?pagewanted=2&_r=1&ref=technology

The above link is to a new york times article which analyzes a recent Google move into the social networking spectrum. The article discussed a new tool, called +1, which allows users to "like" certain web pages/advertisements and share this information with friends. According to the article, the tool is very similiar to Facebook's "like" tool. The author discusses how the new tool is a response to Facebook's increasing threat to Google. Users are more likely to trust reviews from friends, family, etc. Thus, Facebook is cutting into time users would normally spend on Google, lowering revenue recieved from advertisers. +1 is a response to this threat by allowing Google users to see what their friends and contacts have to say, making the search engine service more user friendly. The article also discussed potential privacy complications with the Federal Trade Commission (FTC) over its new tool. There is debate over whether the information displayed via +1 is truly public and thus whether or not is violates Google's privacy policy. Either way, i think this is a step in the right direction for Google to further compete with Facebook.