Tag: internet

  • The Internet’s Pax Americana

    The Internet’s Pax Americana

    Tech journalist Kara Swisher has a twenty-five minute interview with President Obama on his relationship with the technology industry and Silicon Valley, it’s an interesting snapshot on how the United States sees its role as custodian of the internet.

    In talking about European agencies’ efforts to reign in the power of companies like Google the President is dismissive; “we have owned the Internet. Our companies have created it, expanded it, perfected it, in ways they can’t compete. And oftentimes what is portrayed as high-minded positions on issues sometimes is designed to carve out their commercial interests.”

    Obama is absolutely correct to say the Internet currently belongs to the United States, it was the US that developed the technologies and built the initial infrastructure for the global network in a similar way it did for the GPS system.

    The internet probably won’t remain the US’s sole domain as China, Indian, Russia and other powers find control of the global communication network resting with the US isn’t in their interests and develop work arounds or rival technologies.

    Just as Spain and then the English once dominated the world’s shipping and communications, it may well be the US’s dominance of the Internet is not permanent.

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  • Google’s Microsoft problem

    Google’s Microsoft problem

    The one factor that saw Microsoft become the biggest computer software company was the rise of the personal computer, similarly the decline of the PC has seen Microsoft stagnate.

    One of the companies that benefited from the forces that pushed Microsoft into stagnation was Google and now it appears they could be suffering the same fate.

    Yesterday Google released their quarterly results which showed the rate of growth in online advertising is slowing, which is a worry for the company as internet marketing accounts for 90% of the firm’s income.

    Like Microsoft, Google has to diversify. Whether it’s the internet of things, smartphones, apps, driverless cars or something else remains to be seen but the pressure is building. Should the shift to mobile or other advertising mediums accelerate, Google could be looking at a declining market and the same problems as Microsoft.

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  • Daily links – Chinese property developers go onto internet

    Daily links – Chinese property developers go onto internet

    Today’s links have a distinctly Chinese flavour around them with a look at how the country’s smartphone manufacturers are coming to dominate their market, Tencent’s plans for global domination and how property developers are looking to the internet to save their falling sales.

    Uber and Microsoft make their regular appearances to round out the links in their changes to billing and security.

    Chinese property developers turn to the web

    Faced with declining sales, Chinese property developers embrace – the Internet!

    How Chinese smartphone makers are beginning to dominate the market

    The rise of China’s smartphone makers: 10 of the top 17 smartphone manufacturers now come from China.

    An interview with Tencent

    Business Insider has an intriguing interview with one of the VPs of Chinese internet giant Tencent.

    In his Q&A, S. Y. Lau discusses how Chinese communities are seeing their incomes rise due to the internet. One of the famous case studies of connectivity are India’s Kerala fishermen who used SMS to arbitrage their market. We may be seeing a similar story with Chinese tea farmers.

    Microsoft restrict warning of patches to paying customers

    In a short term money grabbing exercise, Microsoft have unveiled a plan to only inform enterprise customers of upcoming security patches. My prediction is this won’t last.

    Uber cuts prices

    Car hiring service Uber has cut its fares in thirty US cities while guaranteeing drivers their incomes. This is probably a move to keep competitors like Lyft at bay.

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  • When the virtual mob comes calling

    When the virtual mob comes calling

    In China, the human flesh search engines track down people who have offended the herd sensibility.

    As Australia becomes more conservative and reactionary, the same phenomena is developing Down Under. Aussie businesses now have to be prepared for when they come to the attention of an online lynch mob.

    Last weekend a South Australian dairy company, the Fleurieu Milk and Yoghurt Company, announced it would not be seeking Halal certification for its yoghurts following concerted harassment from bigots, a decision that will cost it a $50,000 contract with Emirates Airlines.

    Fleurieu was not the first company to be targeted by groups of online bigots, a few weeks earlier Maleny Dairies from the Queensland Sunshine Coast announced it would not seek Halal certification for after being deluged with queries from similar groups.

    For a company of any size, a wave of abuse from online hate groups is difficult to handle but for smaller businesses like rural dairy companies it’s particularly hard as there’s little training for dealing with obnoxious and ill informed virtual lynch mobs and the resulting drop in morale can affect the entire workforce.

    Many managers would draw the conclusion that social media is a dangerous place that only exposes staff and the business to these vile individuals, however withdrawing totally from online channels might actually magnify the effects of being targeted as companies don’t see the internet campaigns developing.

    Reacting to a hate campaign is difficult however and much of how a company deals with being the target of one comes down to the owners’ and managers’ appetite for dealing with such a crisis.

    Submit to the mob

    The quickest way of defusing the situation is to agree to the mob’s demands, as Maleny and Fleurieu did, which has the advantage of relieving the stress on staff and management distractions.

    Submission though is not without its risks; the mob may not be happy or agreeing to their demands may upset other customers who actually spend money with the business.

    This latter point is something Australia’s agricultural industry and governments should be paying attention to as Middle East nations takes over ten percent of the nation’s food exports.

    Agreeing to one group’s demands may also irritate other equally other vocal groups which could actually make the problem worse. Ultimately though it comes down to what a company’s management is most comfortable doing.

    Should you decide to go along with the mob, don’t equivocate. Be absolutely clear about what you are doing and why you are doing it. This is something both Fleurieu and Maleny diaries have done.

    Don’t engage

    If the choice is not to submit, either on principle or for commercial reasons, then it’s necessary to be prepared for continued criticism with staff and management coming under further stress. It’s important everyone is supported by the team in the face of often vile and crude behaviour.

    One of the key tenants of online marketing and community management is to engage with your critics, however there is a point where trying to engage with irrational people is pointless and possibly even counterproductive.

    When that point has been reached, then there is no need to reply to them and any inflammatory or provocative posts should be deleted. The saying of “don’t feed the trolls” applies.

    Should commenters become too strident or silly then they should be blocked and, if they are misbehaving on a social media site, their actions reported to the service’s management. Any threats of violence should be immediately documented and a complaint made to the police.

    Don’t provoke

    Provoking these groups is also a mistake, descending to their level of behaviour will only encourage them and their friends along with risking alienating your own supporters. Keep things professional and straight forward.

    Not being a dill yourself is something that could have heeded by one of the other businesses that found itself on the receiving end of an online lynch mob this week. Mark Clews, the proprietor of Tuk Tuk Hunter Valley, was on the receiving end of an online campaign after a snarky post about a vegetarian who visited his hamburger bar in the wine country north of Sydney.

    Reading the Tuk Tuk Facebook page quickly gives one the impression Clews enjoys an online fight and he certainly got one which led to his business receiving dozens of poor reviews and at least one critic set up a Facebook page, later taken down after legal threats, highlighting the business’ poor reviews.

    In a heated environment — be it vegetarianism, Halal certification or any sort of politics — it’s worthwhile business owners keeping their own personal views separate from their company’s online presence.

    The moral of all three of these stories is the internet is a tough place and in today’s increasingly intolerant society one not without its risks. While every business needs to have an online presence, it’s necessary to be prepared for when the online mob appears with virtual torches at your door.

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  • Driving the hybrids — VMWare and the case for hybrid cloud computing

    Driving the hybrids — VMWare and the case for hybrid cloud computing

    A decade ago VM Ware disrupted the corporate IT world with its virtualisation software that changed the way big organisations used their servers. Today the company is facing up to the challenge of dealing with its own business being disrupted.

    In the late 1990s when a big business wanted a new server it had to get someone to physically install one, VM Ware’s founders came up with the idea of ‘virtualisation’ with their software creating a virtual server that looked to the network like it was a discrete, real computer.

    Naturally this was quicker and cheaper than buying and setting up a whole new server and VM Ware was an immediate success that upended the ‘big iron’ end of the computer industry.

    Today VM Ware is valued at $42 billion on the stock market and is one of the IT industry’s giants.

    However the virtualisation market itself is being disrupted by cloud computing. For many businesses, it’s even cheaper to pay Amazon, Microsoft or another cloud service to provide the servers for you.

    So VM Ware is reinventing itself with a range of services to meet the challenge from the cloud providers. One of it’s key strategies is to provide a ‘hybrid’ cloud where customers run some IT services on their own servers and others on the cloud, the idea is this offers the best of both worlds.

    This is almost the same challenge that Microsoft faces as both companies see their core business models being threatened by internet based technologies, something that VM Ware CEO Pat Gelsinger concedes.

    “We think of Microsoft having a strategy much like ours, given they have on premise and in the cloud,” says Gelsinger. “We sort of agree on the shape of the market. We would say that Amazon and Google see a different shape in the market.”

    Amazon and Google’s view is a ‘pure cloud’ model where companies and consumers run all their IT on web based services. In that world, purists like Xero’s Rod Drury are openly disdainful of the hybrid model believing it to be cumbersome and adding complexity to a simple business solution.

    For companies like VM Ware and Microsoft their future lies upon the hybrid model being adopted by business. This is a high stakes industry battle which will define the careers of many IT workers and the shape of the businesses they work for.

    Paul travelled to the VM World conference in San Francisco as a guest of  VM Ware.

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