Being Digitally Close

There is an article in the NY Times a few weeks ago called “Brave New World of Digital Intimacy” and i think it’s one of the best pieces i’ve read in a long time at explaining why Facebook Status, News Feed, Twitter and other new digital platforms are useful and popular.

The online area that the article talks about is “incessant online contact” or as some call it, “ambient awareness.” In the offline world people pick up on moods by little things like body language, sighs, little comments, etc..  In the online world this is being done by microblogging tools like Twitter (140 character updates), Dopplr (where are you traveling?), Tumblr (what web items do you like), and Facebook’s Status Feed.  The article asks the question that i get asked all the time, Who cares?:

For many people — particularly anyone over the age of 30 — the idea of describing your Image representing Twitter as depicted in CrunchBaseblow-by-blow activities in such detail is absurd. Why would you subject your friends to your daily minutiae? And conversely, how much of their trivia can you absorb? The growth of ambient intimacy can seem like modern narcissism taken to a new, supermetabolic extreme — the ultimate expression of a generation of celebrity-addled youths who believe their every utterance is fascinating and ought to be shared with the world.

This is indeed how many people view it.  But the genius of the article is how it explains the subtle usefulness of the information:

Each day, Haley logged on to his account, and his friends’ updates would appear as a long page of one- or two-line notes. The updates were indeed pretty banal. One friend would post about starting to feel sick; one posted random thoughts like “I really hate it when people clip their nails on the bus”; another Twittered whenever she made a sandwich — and she made a sandwich every day. Each so-called tweet was so brief as to be virtually meaningless.

But as the days went by, something changed. Haley discovered that he was beginning to sense the rhythms of his friends’ lives in a way he never had before. When one friend got sick with a virulent fever, he could tell by her Twitter updates when she was getting worse and the instant she finally turned the corner. He could see when friends were heading into hellish days at work or when they’d scored a big success. Even the daily catalog of sandwiches became oddly mesmerizing, a sort of metronomic click that he grew accustomed to seeing pop up in the middle of each day.

This is the paradox of ambient awareness. Each little update — each individual bit of social information — is insignificant on its own, even supremely mundane. But taken together, over time, the little snippets coalesce into a surprisingly sophisticated portrait of your friends’ and family members’ lives, like thousands of dots making a pointillist painting. This was never before possible, because in the real world, no friend would bother to call you up and detail the sandwiches she was eating. The ambient information becomes like “a type of E.S.P.,” as Haley described it to me, an invisible dimension floating over everyday life.

This is exactly how it works.  Now, i don’t have ESP through this but i do enjoy the knowledge of how my friends’ lives are progressing. These tools have enabled that to happen and it has certainly enhanced my relationships with them.

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Analysis of Chrome

A few weeks ago Google release a product called Chrome which is their own web browser. Only it is really so much more. At first it doesn’t look like much – and it isn’t, just yet. However it’s the direction Chrome is going and the intent behind the release that matters. Google doesn’t want a competitor to IE or Firefox, they want a new OS – a web OS that competes and beats Microsoft Windows.

Chris Messina who worked both a Mozilla and Flock – both browser companies – has a great post about how Chrome came to be and what it means (post is here). Chrome is the future of browsers. It’s one that embraces web applications and has Gears, an engine that enhances the internal code of apps to make them more powerful and quick.

On interesting piece of the post is pointing out WHO is working on Chrome. He paints Google as cohesive team of folks in the pennisula who are laser focused on delivering a next generation browser:

Google is a well-oiled, well-heeled machine. The Webkit team, as a rhizomatic offshoot from Apple, has a similar development pedigree and has consistently produced a high quality — now cross-platformopen source project, nary engaging in polemics or politics. They let the results speak for themselves. They keep their eyes on the ball.

Ultimately this has everything to do with people; with leadership, execution and vision.

When Mozilla lost Ben Goodger I think the damage went deeper than was known or understood. Then Blake Ross and Joe Hewitt went over to Facebook, where they’re probably in the bowels of the organization, doing stuff with FBML and the like, bringing Parakeet into existence (they’ve recently been joined by Mike Schroepfer, previously VP of Engineering at Mozilla). Brad Neuberg joined Google to take Dojo Offline forward in the Gears project (along with efforts from Dylan Schiemann and Alex Russell). And the list goes on.

A few more points he expands in the original and subsequent post:

  • One unique feature of Chrome is that it auto-updates without any notifications (with obvious security issues). Chris writes: “if you’ve read the fine-print closely, you already know that this means that Chrome will be a self-updating, self-healing browser….. by using Chrome, you agree to allow Google to update the browser. That’s it: end of story. You want to turn it off? Disconnect from the web… in the process, rendering Chrome nothing more than, well, chrome (pun intended).”
  • Another interesting point of note is that Google evolved the UI of the browser and “went ahead and combined the search box and the location field in Chrome and is now pushing the location bar as the starting place, as well as where to do your searching” This is interesting as it was a logical trend that no browser has yet picked up on


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AOL mail crushes Gmail

Not in terms of functionality or ease of use but check this out:

Yahoo dominates e-mail with 88.4 million users in the United States in August, according to comScore. That is far more than Microsoft’s Windows Live Hotmail at 45.2 million and AOL at 44.8 million, not to mention Gmail at 26.0 million.

When you look at how much time people spend reading their e-mail, Yahoo mail users spend the most time (286 minutes a month), Gmail users the least (82 minutes), with AOL and Microsoft in the middle (229 and 204 minutes, respectively).

Wow. As a Gmail-lover, i would have never thought that was the case. You read the whole article here.

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Google's Shot Across the Bow

It’s been a while since there’s been a major power play by someone in Silicon Valley.  A big “take over the world” type of action.  I think Google’s latest Chrome is that – reminiscent of the old days of Netscape, Sun and others who were all trying to take over the world.  

Fred Wilson does a good job of describing how their 3 latest projects: Chrome, Android, and Cloud/Gears are positioning them to be the OS of the future.  Saying

 

 

  1. They are building a modern browser, Chrome, that resembles an operating system as much as a browser.  It’s not that Google wants to build a better version of Internet Explorer or Firefox. They want to build a better environment for running web apps.
  2. They are building a mobile operating system, Android, that is also designed for running web apps in a mobile environment. I think in time, Google’s Android will be to the iPhone what Windows was to the Mac. The iPhone laid out many of the killer mobile device innovations, but its a closed device, a closed carrier relationship, and even a closed application store. Android will take all of those good ideas and put them on every device, with every carrier, and in partnership with every app developer
  3. Google is all about the cloud. They have developed all of their apps in what goes for the cloud these days. They’ve build a great cloud computing platform in App Engine. 
These three things ensure that Google will be a major player.  With other launches of OpenSocial and such don’t display the raw power of Google but here it is.  I love it and believe they will be the biggest and most powerful company standing – over facebook, Microsoft and others – when the dust settles. 

Coase's Law: Cost of Collaboration

One of the interesting things i read in Wikinomics is Coase’s Law. I had never heard of it. Here’s the deal:

Ronald Coase was a badass and won the Nobel Prize in 1991
Ronald Coase was a badass and won the Nobel Prize in 1991

Many companies today are turning to collaborative b2B models where consumers, employees, partners, and even competitors co-create value for a company. This is all happening due to the declining cost of collaborating.

It began in 1937 when a English socialist, Ronald Coase, published a paper called “The Nature of the Firm.” Coase was both fascinated and bewildered by american industry. He toured Ford and General Motors and wondered aloud why economists could say that Stalin and communism was mistaken to try to run the Soviet Union like one gigantic company when Henry Ford adn Sloan ran their own gigantic companies (Ford & GM) in similar ways. After all, the marketplace is the best mechanism for matching supply and demand, establishing prices, and getting maximum utility from limited resources.

He studies more the cost of information. Producing things (bread, a car, a hospital ER) involves steps where close cooperation and common purpose is essential. You can only break down day-to-day tasks so much before incurring costs that outweigh the savings of doing in under the same roof. These are called transaction costs:

  1. search costs (finding different suppliers and determining if they are good)
  2. contracting costs (negotiating prices and contracts)
  3. coordination costs of meshing products and processes

Most businesses in 1937 determined it was best to do all of these in-house. All of this encompasses “Coase’s Law” which states: A firm will tend to expand until the costs of organizing an extra transaction within the firm become equal to the costs of carrying out the same transaction on the open market. Basically, as long as it’s cheaper to perform a transaction inside your firm, keep it there.

The internet makes a difference because basically now transaction costs as so low that it has become much more useful to read Coase’s Law backwards: You should shrink a company until it’s harder to do things externally than internally, then bring it in-house.

It’s interesting because Coase’s Law does both a great job of explaining why old-school corporations were so big and powerful and does an equally good job of explaining why traditional companies are on the way out and why new businesses are smaller and more nimble.

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The Coach of Silicon Valley

On the plane this past weekend, i read a great article about a guy named Bill Campbell who is known in Silicon Valley as “coach.” He’s a former football coach at Columbia who is non-technical but has a knack for handling personalities and managing companies and employees. He’s on the board of Apple and Intuit, sits in on every Google board meeting, and can frequently be found around the valley drinking bud light and yelling at people (in a good way).

One interesting thing about the article is how he evaluates talent. He believes that startups often hire “early stage” people without thinking about whether they will succeed as the company grows. Instead, he believes they should hire major players who know how to scale up. Once hired, the review system should measure these 4 areas:

  1. On the job performance – the typical quantitative goals
  2. Peer group relationships
  3. Management / leadership and how well you develop the people around you
  4. Innovation and best practices

I thought these were interesting, especially having peer group relationships being part of a review. I think that’s smart as these interactions do impact your performance immensely. If you can’t get along with your co-workers, it’s hard to be productive, or manage or lead.

Twitter the most pure social network

Some social network thoughts…..

I’ve been using Twitter more and more lately and i have to say that i’m really enjoying it.  I love the simplicity and ease of use.  The fact that they limit the characters, is only text and is just a list of your friends thoughts makes it always interesting.  Of course, Facebook used to be like that for me too.  I’m not sure if it will ever catch on for the masses.  The fact that only a subsection of my friends use it makes it more useful for me so i don’t get too many updates.  I’m not sure if it’s fun enough for everyone just yet.  I do think the mobile aspect of it could tip it over the edge. I wasn’t that into Twitter until i started doing it on my iPhone and then it became a must-have app.  I still don’t see much difference between the AIM away-message, the facebook status message and Twitter other than the mobile/cell-ness of Twitter and the simplicity.

More and more i think facebook will develop into a utility instead of a place of expression.  I think it will be like the yellow pages – where is a tool people use to look up people, find out about friends of friends and find phone numbers, emails, etc.  It’s a social address and people directory. It’s a tool

MySpace continues to be about self-expression and i think that’s a good differentiator as they could never beat facebook at their game.  However, i do believe self-expression can be done even better.  Something like Uber or Virb or something could be better – if it had more of Tumblr-type experience int it.  We did some focus groups the other day and everyone used both Facebook and MySpace.  They liked Myspace b/c it really represented them – it was a good badge but they hated the sketchiness about it.  “Too many old weird guys” they said.  They had facebook b/c everyone had it and it was easy to connect but it didn’t seem like it was fun to them.  It was interesting.

What are your thoughts

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YouTube getting its ass kicked by Hulu?

I read an interesting post by Cuban called “Hulu is kicking Youtube’s Ass”  where he argues that YouTube’s business model is broken and that Hulu has the only sustainable model going forward. He argues that because Hulu has rights to sell ads on their videos they are doing a much better job in revenue per video and revenue per user. Hulu is gaining momentum.  Cuban argues that they might already have more monetizaable users and traffic and that by next year it will have more revenue than YouTube.

These are fighting words but it does lead to a bigger question of whether you can monetize users and self-expresssion.  Web 2.0 is all about user created content but if that content is only that and not something that can be monetized – then do you have a big business?  Facebook and MySpace have taken shots lately of not being able to monetize their huge traffic.

Almost as if YouTube heard the conversation, they announced today that they are removing the 10 minute limit on their videos for Partners. I could see them getting more into Hulu’s business as time goes on and licenseing more and more content to distribute and sell ads around.

Like Hansel, these are so hot right now

My cousin P-Walk asked me what sites are “hot” right now. My list of sites that may be below the radar of regular people but getting some well-merited attention is:

  • yelp – anyone who loves food in a city should use this
  • dopplr & tripit – for travel sites they are both good
  • imeem – getting some mean traffic
  • mahalo – really interesting for search (challenging Google by doing it person/wikipedia style)
  • twitter – the most pure social interaction. It could be monstrous. Give this one some serious attention.
  • Tumblr – a great little microblog tool

What am i missing?

(i’m just happy i went the entire post without saying Web2.0)

Nathan Myhrvold – Pretty Badass

I just watched this video about Nathan who is quite an incredible guy who spends 18 minutes describing what he does. It’s a lot of very scientific stuff like:

  • Archeology – digitizing Easter Island statues and the pyramids
  • Inventing new nuclear reactors – which are more efficient and better than the current designs
  • Inventing meta-reactors which are really real invisibility cloaks
  • Bio-medical research – is studying the eyes
  • Building radio-telescopes and funding the SETI project. If you want the movie Contact, he describes that all the characters are based on real-life folks. He’s the creepy rich guy
  • Cooking – took a sabatical from Microsoft to study cooking in France and occasionally works at a Seattle restaurant
  • BBQ – he won the world championship BBQ prize
  • Paleontology – he’s discovered a T-Rex in a badlands

It’s just a video about him and how he loves to do a million things. As he says, the talk is “a mile wide and an inch deep.” But that’s how he operates. One thing that stands out is that he seems to be one of the bigger badasses alive. I’m happy that people like them are out there and trying to discover the past mysteries of the world and invent new ones. Pretty interesting stuff…

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