Knocking at Silicon Valley’s door

Chasing the Silicon Valley model may be a mistake for cities trying to become modern industrial hubs

In opening Salesforce’s new London office yesterday, former BT CEO Lord Livingston described the city as “knocking at the door of Silicon Valley.”

Judging from the Computing UK article that description hasn’t impressed the rest of the British tech community as it confirms in their minds there is, as usual, too much focus on the capital and Livingston’s view also raises the question of whether London really wants to be another Silicon Valley.

Like all global industrial hubs Silicon Valley the result of a series of happy coincidences; massive defense spending, determined educators, clever inventors and savvy entrepreneurs all finding themselves in the same place at the same time.

Trying to replicate the factors that turned the region into the late Twentieth Century’s centre of technology is almost impossible – even the United States couldn’t afford the massive defense spending over the fifty years from 1941 that underpinned the Valley’s development.

Apart from the spending; the culture, economy, geography, markets and workforce of Silicon Valley are very different to that of London’s.

This not to say London doesn’t have advantages over Silicon Valley; access to Europe and relatively easy immigration policies make Britain a very attractive location for tech businesses. If the local startup community can tap The City’s banking resources then London could well be the next global hub.

If London is the next global tech centre – history will tell – it will almost certainly be very different to Silicon Valley.

Strangely, the event Lord Livingston was speaking at reflects how the Californian tech sector is evolving; Salesforce is a San Francisco company and represents a shift in the last five years from the suburbia of San Jose and Palo Alto to the quirky city life of SoMa and the Tenderloin.

At the same time Silicon Valley itself is evolving into something different, just as it did in the 1990s with the switch from microprocessor manufacturing to software development.

That shift illustrates the risks of trying to imitate one industrial hub; by the time you’ve build your replica, the original has moved on.

If you spent your life trying to knock on the door of heroes you want to imitate, it would be shame to finally make it only to find they’ve moved.

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Evangelism and the makers’ movement

Salesforce’s Reid Carlberg talks tech Evangelism, the Internet of Things and the Makers’ Movement

The latest Decoding the New Economy interview is with Salesforce’s Reid Carlberg.

During the interview with Reid we cover how the Internet of Things and big data is changing business and society along with the journey to becoming a software company’s evangelist.

Reid has a fascinating story to tell about how the makers’ movement is evolving as big data and the internet of things develops.

The interview is an insight into a winding career path and how Big Data and the Internet of Things is changing business and society.

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Customer service is no longer a department

Customer service needs to pervasive through modern organisations says Salesforce’s Alex Bard

When it comes to customer service businesses, Alex Bard calls himself a ‘career entrepreneur’, having founded four startups in the field since the mid 1990s.

In 2011 he sold his most recent business, Assist.ly, to Salesforce and became the company’s Vice President for Service Cloud and the Desk.com customer service offerings.

Bard tolds Decoding the New Economy last week how social media and Big Data are radically changing how organisations respond to the needs of their clients.

“I’ve been in the industry for twenty years and I’ve never been excited as I am now,” Bard says. “The real transformational things that’s happening now are these revolutions – the social revolution, the mobile revolution, the connected revolution.”

The philosophy of customer service

“What they’re really driving is this idea that customer service is no longer a department, it’s a philosophy.”

“It’s a philosophy that has to permeate throughout the organisation. Everybody in the company has a role in support. It’s not just about a call centre or a contact centre or even an engagement center which is what these things are called today.”

“I really don’t like the word ‘centre’ because I really fundamentally believe that everbody in that company has to interact with customers, has to engage and has to the information – no matter they are – about that customer to provide context.”

Abolishing the service visit

With the Internet of Things, Bard sees GE’s social media connected jet engine as illustrating the future of customer service where smart machines improve customer service.

“They’re going to capture more data in one year than in their entire 96 year history prior,” says Bard. “With that data they’ll be able to analyse and do things on behalf of that product or service that’ll reduce the number of issues.”

“Because the best service of all is one that doesn’t have to happen.”

In this respect, Bard is endorsing the views of his college Peter Coffee who told Decoding the New Economy last year that the internet of machines may well abolish the service visit.

“Connecting devices is an extraordinary thing,” says Coffee. “It takes things that we used to think we understood and turns them inside out.”

“If you are working with connected products you can identify behaviours across the entire population of those products long before they become gross enough to bother the customer.”

For Alex Bard, the customer service evolution has followed his own entrepreneurial career having evolved from being personal computer based in the 1990s to today’s industry that relies on cloud computing, big data and social media technologies.

As these technologies roll out across industry, businesses who adopt the customer service philosophy Bard describes are much more likely to adapt to the disruptions we’re seeing across the economy. Changing corporate cultures is one of the great tasks ahead for modern executives.

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Driving out inefficiencies

Inefficiencies are being squeezed out of business and corporations are going to have to adapt, warns the World Economic Forum.

“We’re driving inefficiencies out of every single facet of life,” AT&T CEO Randall L. Stephenson told The World Economic Forum’s New Digital Context panel last month.

The CEO panel at the Davos forum, which included Yahoo!’s Marissa Mayer, Salesforce’s Mac Benioff, Cisco’s John Chambers and Gavin Patterson of BT discussed how corporations of all sizes are being affected by rapid market changes.

“All this bandwidth, all these connected devices, are as disruptive as anything this society has ever seen,” Stephenson said.

“Companies that aren’t moving and driving the new technologies are companies that don’t stay alive.”

Stephenson’s view was supported by Cisco CEO John Chambers, “if you look at big companies only a third of us will exist in a meaningful way in two decades.”

Chambers cited Cisco’s experience from the past two decades to illustrate how business is rapidly changing, “my competitors from fifteen, twenty years ago – none of them exist or they’ve exited. From ten to fifteen years ago only one exists, from five to ten years ago only a few.”

“If you don’t disrupt, you get left behind,” warned Chambers.

Chambers’ advice to managers is that teams have to be empowered and encouraged to take risks and learn from failures, advice endorsed by Yahoo!’s Marissa Mayer.

“The best thing you can an executive can do is play defense, not offense. Get out everybody out of the way and set up an evironment where they can really run and make a difference.”

Yahoo!’s Marissa Mayer endorsed the change, describing a much flatter organization; “we try and run things really flat, really transparent.”

That flat organisation is really the biggest risk to many executives in staid, safe organisations; it means fewer middle managers as the workplace is increasingly automated.

As businesses adopt new technologies, the need for Executive Vice Presidents or Group General Managers is eliminated – along with the armies of assistants and underlings required to help these folk in their roles.

In the past, those layers of management have isolated senior executives from their customers which Salesforce’s Marc Benioff is a luxury companies can’t afford in the current marketplace, “everything is going faster, companies have to change faster.”

“Today if you’re not listening to your customers more deeply than ever before and not reacting to them more rapidly than every before,then you are probably making a mistake,” warns Benioff.

Most of those in the room at WEF were the world’s top executives and government officials, how many of them take note of how business is changing will become clear in the very near future.

There’s also a warning for those government leaders on how employment and government services are going change in the near future which a lesson that needs to be heeded as policies are developed.

Now’s the time for every manager, business owner or executive to look at the inefficiencies in their workplace and whether it can be eliminated either through technology or business restructuring. It may well save you from being identified as an inefficiency yourself.

Steam train image courtesy of Gabriel77 through sxc.hu

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Microsoft’s business fightback

Microsoft stake their place in the CRM market. How will this affect companies like Salesforce?

Yesterday a series of vendor briefings showed how Microsoft is fighting back in the enterprise computing market and taking on upstarts like Salesforce in the CRM and business analytics markets.

Microsoft’s briefing presented a series of happy customers – including Colliers International, Servcorp and Metricon Homes – describing how they had deployed the Microsoft Dynamics product.

All the businesses at the Microsoft event said how it fitted into their existing business IT infrastructure. All were Windows shops running Exchange and Sharepoint.

This installed base illustrates Microsoft’s strength in the Enterprise marketplace along with its partner network of resellers and integrators.

Microsoft’s partner network was illustrated at HP’s Next Generation of Information Workers briefing where the company’s workplace of the future vision is very much a Windows service, even the layout is a replica of the Window 8 tiled layout.

The Next Generation of Information Workers product is largely built over Microsoft’s Sharepoint and HP’s own Trim product which again shows how legacy providers are leveraging their established technology.

Whether this is enough to hold off the likes of Salesforce and other cloud based services remains to be seen. Being Windows-centric is particularly tough at a time when many employees bringing their own Apple iPads and Android smartphones to work.

Microsoft’s awareness of its position was shown in the billing of the briefing where the invite billed the session as showing how Microsoft competes with Salesforce.

That competition is manifesting itself with both Salesforce and Microsoft aggressively acquiring social, analytics and marketing platforms to compliment their CRM products.

If the competition was just a matter of size there would be little contest as Microsoft’s $290 billion stock market capitalisation is more than ten times bigger that of Salesforce’s.

But it isn’t just a matter of size. Microsoft are have a legacy business to protect while disruptors like Salesforce aren’t encumbered by older desktop and server products.

What is clear though is that Microsoft is gearing to fight for these markets.

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Salesforce’s place in the web’s walled gardens

Can Salesforce take a place alongside Apple, Facebook, Amazon and Google?

“Did he just say we’re at the half-way mark?” Whispered the ashen faced journalist beside me as Mark Benioff’s Dreamforce keynote reached the 90 minute mark.

Benioff did and the presentation did indeed go three hours because Salesforce.com had a lot to announce with launches of new mobile apps, customer service programs and HR services.

At the press conference later in the day, Benioff said “we are interested in collaboration and the customer. the reason we’re in marketing is because our customers want us to be in marketing.”

An interesting part of this is the Facebook relationship, with the Buddy Media acquisition 10% of Facebook’s advertising revenue comes through  Salesforce. This in itself makes Salesforce a key Facebook partner.

Facebook’s relationship goes deeper with Salesforce, at the media conference Marc Benioff mentioned that the company’s purchase of Rypple came about because of urging from Tim Capos, Facebook’s CIO.

That deep relationship was on show in the opening keynote where Facebook were one of the strategic partners showcased by Benioff.

Of the products showcased, one of the important points that kept being raised was Salesforce’s role as the enterprise social media identity service.

A partnership between Salesforce and Facebook to provide online identity validation would effectively kill  Eric Schmidt’s aim of Google being the Internet’s identity service although Benioff was at pains in the media conference to emphasise there was room for more than one player.

Google are also being challenged by Benioff’s announcement of Chatterbox, a secure online file storage and sharing service.

While the focus with the Chatterbox announcement was on the threat this presents to Dropbox and Box.net, the bigger targets are Google Drive, Apple iCloud and Microsoft’s SkyDrive.

Salesforce’s move into the various fields of HR, marketing, file storage and collaboration are part of the company staking its own position among the various web empires.

With a strong enterprise position, it’s quite possible Salesforce could establish itself as the fifth of the Internet’s great empires.

Every empire needs an army and a particularly strong claim Salesforce would have are the ranks of developers and supporters gathering around the service’s open APIs.

The move to establish an independent position on the web would also explain Benioff’s commitment to HTML5 as this avoids locking the company into an Apple, Google or Microsoft dominated app environment.

We’ll see over time how Salesforce establishes their position among the internet empires, right now though their range of services, customer base and partner ecosystem means they are well placed to compete with the big four currently dominating the web.

Paul travelled to the San Francisco Dreamforce conference courtesy of Salesforce.com

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Live Blogging from the Dreamforce keynote

A live commentary of the Dreamforce keynote session

01.29

So the session begins with some case studies and interviews with happy Salesforce customers including Comcast, Deliottes and a not-for-profit.

At the front of the bloggers section, things are pretty civilised but that will change in a few minutes as the doors are about to open for delegates.

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11.55

Now we’re into the final run, Marc revisits the Touch mobile plaform and starts the final ‘vignette’ which is Burberry.

The thrust of the Burberry video is how the company is using all of the various Salesforce tools.

“It sounds like Minority Report” Marc asks, “it is” says Angela Ahrendts the CEO of Burberry.

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11.44

George and Dan demonstrate a smart QR-code enabled Coke vending machine. One should worry if the Daleks get this technology.

Now Marc talks with Coca-Cola on integrating an SAP back end with a Salesforce social platform before winding up.

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11.40

George gives a big thank you to those who’ve contributed to the Ideas Exchange and then introduces Salesforce Identity to manage the enterprise social media indentity.

Is this a direct competitor to Google+ or to Microsoft?

The single point of user management was a selling point for the various Microsoft services shown at last week’s Australian TechEd.

Should Salesforce be able to get traction with a corporate identity service then it creates a real threat to Eric Schmidt’s concept of Google+ being the identity management service of choice.

George shows off how the cloud services can be bought together with intelligent vending machines that can even track who scarfed all the diet coke.

 

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11.28

Now we have a look at Coca-Cola with a historical look at their advertising.

50,000 tweets a day about Coca-Cola and they try to answer every one that is a question.

The concept Coca-Cola putting forward of personalised drink dispensers linked to reward programs and social media is interesting. While it may not work for soda, this is something we will see.

Now George Hu, COO of Salesforce takes the stage. George has a good story himself as he started at the company as an intern.

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11.19

So the work.com system works around awarding badges. Do we get a drink if the word ‘gamification’ is used?

The integration into Amazon allows managers to create incentive prizes.

Tim Campos the CIO of Facebook is introduced by Marc. Applause from part of the audience – not sure if that’s fanbois or Facebook employees.

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11.10

Now we get the demonstration of how Salesforce are looking to change the HR department with Work.com

In many ways the social angle makes sense for HR, one of the failures in the modern corporation is how the employee management has become depersonalised. Even the term “HR” illustrates the industrial machine mindset.

Joh Wookey, EVP work.com and social applications, show off their HR software.

Facebook was one of Work.com’s first customers. This is an interesting alliance.

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11.01

Wow! Marc Benioff is almost as tall as Tony Robbins. I wouldn’t like to meet those two in a dark alley.

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10.59

Harris announces a secure, Salesforce integrated version of Dropbox, Chatterbox.

This is an interesting product as one of the concerns of CIOs and IT folk is the potential security risks of staff sharing documents on public cloud services.

Harris demonstrates how Virgin can use Chatter to expedite customer support. It would have been interesting to how Virgin Australia would have used this feature during their reservations system implosion two years ago.

Notable during Harris’ presentation is how integral iPads are in the demonstration.

Another aspect of the support demonstration is real time advice to passengers through inflight wireless networks and personal IFE systems.  It would be hard to see how this could work on airlines like United.

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10.50

Virgin America’s turn arrives. The fastest growing airline in the US using Chatter.

Thirty percent of communication in Virgin happens through tablet devices.

A big call for Chatter and now Salesforce co-founder Parker Harris takes over the presentation from Mark Benioff.

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10.46

Now HP. Now this is a company that needs help both with customers and internally.

George Zimmer, Mens Warehouse CEO now joins Mark and makes the point that his business was built on a billion dollars worth of advertising to baby boomers, marketing to Millennials requires selling through social media.

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10.41

The reskinned Radian6 control panels are shown for the CBAs social presence.

Andy Lark of the CBA joins Mark Benioff, “banking has always been a social business,” Andy says.

 

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10.30

“By 2017, CMOs will spend more on IT than CIOs” quotes Benioff

Brett Queener EVP of Salesforce’s marketing cloud.

“Social is the biggest change to marketing in sixty years” says Brett. It’s interesting that marketing ceased being social.

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10.28

And now the Aussie contingent. I’m not sure if I’d call the Commonwealth Bank an “amazing company”.

Kaching appears as the CBA first product being showcased which isn’t surprising.

CBA claim Facebook and Radian6 are one of their most effective marketing platforms.

“It’s not about technology, it’s about meeting customers’ needs better.” Is this the same Commonwealth Bank we know in Australia?

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10.24

Now Jeremy Stoppelman from Yelp! joins Benioff.

“Mobile is the core” says Stoppleman which is obvious.

“Monetizing mobile” – is Yelp making a profit?

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10.20

Some screenshots of the control panel for Service Cloud tracking customer issues through social media.

The demo continues in showing the call centre and service desk applications in bringing up a customer’s social media activity along with their service history.

Now we see how customers can use Facetime or any onboard video to diagnose service problems.

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10.11

Now a case study from gaming company Activision. Salesforce’s videos are definately more interesting than a boring IBM style whitepaper.

Fergus Griffin, SVP of Solutions Marketing at salesforce.com shows off the small business aspects of the Servicecloud product.

I wish people would find an alternative to saying “I’m thrilled to announce….”

 

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10.03

One could say Powerpoint free sales presentations could be one of mankind’s greatest achievements and concludes Hilary’s product demo.

Marc now interviews the CEO of Rossignol, Bruno Cercley before moving onto a Charles Schwab executive.

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09.56

Hilary Koplow-McAdams, President of Salesforce’s Commercial/SMB Business Unit takes the stage to announce the new products announced this morning which we covered earlier today

The audience seems a little underwhelmed by the new Touch iPhone app.

Hilary takes the hall through how the various products integrate through a demo around Rossignol who were showcased in the previous segment.

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09.48

The production values in the videos are exquisite. Salesforce don’t cut corners when it comes to making a promotional clip.

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09.46

And now the business case studies start. It might be worth slowing down the live blog for a while.

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09.44

And so ends the GE segment. As @evanshrugged says on Twitter;

Loving #Dreamforce, but since they’re interviewing GE employees I must say #RememberTesla. GE sucks.

 

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09.40

Beth Comstock from GE claims her sales team are 100% digitised.

Demonstrating using Chatter for customer,  maintenance and design teams working on the early Boeing Dreamliner GEnx engines.

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09.37

“The social revolution is a trust revolution.”

Benioff asks “are you and your company going through a social revolution?’

And now the story of GE and Marc Benioff’s 30 minute conversation on the future of GE with Jeff Immelt.

“I believe the future of GE is the man-machine interface” said Immelt, “we  believe the revenue future is becoming a customer centric business.”

GE Share: Jet engines with APIs – a social network around an aircraft turbines or CT scanners that structures customer information and service details.

And now a promo video on GE proclaiming itself to be a social company.

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09.30

“It’s a customer revolution” states Benioff as he prowls the aisles of the hall.

Social is “a fundamental change in business. We  saw that to be really successful in this time we had to be a company customers could trust. We’d have to have a level of transparency that has never been seen.”

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09.24

We’re in a social revolution — “you only have to see the news this morning to see how a video can change the world.”

“How many companies here today use social computing in your business in some way?” Most people put up their hands.

“Business is social”.

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09.21

“We are standing on the shoulders of giants” — Watson, Gates, Ellison, Sergei Page all get a mention as building the tech industry with a special shout out to Steve Jobs.

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09.19

For the last decade, Marc has been travelling the world saying “the cloud is coming”.

Putting 1% of equity into charity is “the best decision we have every made” creating million of grants, donations to 16,000 non-profits and 350,000 hours in hours donated by Salesforce staff.

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09.15

Now Marc Benioff takes the stage and thanks the audience for making Salesforce the success it has been.

 

Marc Benioff onstage at dreamforce

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09.12

The clip now goes through some of the applications for mobile commerce; aircraft engineers using their iPads to service planes, ordering hot dogs from your stadium seat and, most unlikely of all, making flying a pleasure.

 

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09.09

Impressive promotional clip to kick off the keynote. A big emphasis on the mobile phone and social.

Too many stats to recount, it’s like a social media expert’s dream.

“Everything is social, everything is in the cloud.”

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09.06

And now MC Hammer takes the stage. Sadly he’s lip synching most of it except for the last rap.

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09.01

Excitement grips the room as the safe harbour investment statement is read out.

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08.59

Now Evan Trent from the School of Rock comes onto the stage to discuss how franchisees use Salesforce’s small business tools like Do.

I had a beer with Evan last night at the media reception, School of Rock has a big operation and they’ve streamlined what was the typical ad-hoc small business mess onto the cloud with Google Apps and Salesforce.

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08.49

So Do.com is kind of a competitor to Basecamp that plugs into Facebook and Google+

Sean announces a Do app for Android and open APIs for developers. We’ll probably hear about many more APIs and app releases.

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08.46

Sean Whitely from Salesforce’s Do.com is now up to give a demo of the business social media platform

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08.44

The San Francisco Mayor Ed Lee now joins the event. He’d be pretty happy with 90,000 attendees today.

Ed makes the case for San Francisco as a technology hub – “San Francisco; innovation capital of the world” and he’s declaring October to be Innovation Month.

“Vote Early and Vote Often” for city Proposition E that gives tax breaks to technology companies based in San Francisco.

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08.37

The customer interviews continue with a small business story in local business Carlos’ Bakery and multinationals in Schneider Electric and Accenture.

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08.34

Whoops! The time settings on the blog were set to Sydney time, so the initial date stamp was 17 hours out. All fixed now.

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