Tag: cloud computing

The Internet’s cold war

Should we align our businesses with the online empires?

“We’re designing exclusively for Android devices,” the software developer confided over a beer, “we don’t like the idea of giving Apple 30% of our income.”

That one business owner is making a choice that software developers, newpaper chains, school text book publishers and many other fields are going to have to make in the next year – which camp are they going to join in the Internet’s cold war.

As the web matures, we’re seeing four big empires develop – Google, Apple, Facebook and Amazon which are going to demand organisations and consumers make a choice on who they will align with.

That decision is going to be painful for a lot of business; each empire is going to take a cut in one way or another with Apple’s iStore charges being the most obvious.

For those who choose to go the non-aligned path – develop in HTML5 and other open web standards things will be rocky and sometimes tough. At least those on the open net won’t have to contend with a “business partner” whose objectives may often be different to their own.

Over time, we’ll see the winners and losers but for the moment businesses, particularly big corporations and publishers should have no doubt that the choices they make today on things as seemingly trivial things like reader comments may have serious ramifications in a few years time.

Consumers aren’t immune from this either; those purchases through iTunes, Amazon or Google are often locked to that service for a reason.

Probably the development that we should watch closest right now is Apple’s push into education publishing; those governments, universities and schools that lock into the iPad platform are making a commitment on behalf of tax payers, faculty and students that will affect all of them for many years.

For many, it might be worthwhile hedging the bets and sticking to open standards. A decision to join one or two of the big Internet empires is something that shouldn’t be made lightly.

Megaupload, cloud computing and trust

Has Megaupload damage cloud computing’s reputation.

The closing down of file sharing site Megaupload has raised the question of trust in the cloud; “It has made cloud services look that much less legitimate” one daily paper quotes futurist Mark Pesce as saying.

For those of us advocating cloud services and advising businesses on using them, this trust issue isn’t anything new. All of us have to be careful about who we trust with our data and Kim Dotcom, the founder of Megaupload, doesn’t come to mind as someone who would stand a great deal of due diligence.

Like investments – another area where trust is essential – we have to spread our risk around. Saving copies of data to your own computer and making sure the information you save on the cloud is in a form easily read by different systems is important, as is not trusting any one service for critical services.

The taking down of Megaupload also raises other questions – as privacy advocate Lauren Weinstein points out;

“But the Megaupload case is more akin to the government seizing every safe deposit box in a bank because the bank owners (and possibly some percentage of the safe deposit box users) were simply accused — not yet convicted — of engaging in a crime.

What of the little old lady with her life savings in her box, or the person who needs to access important documents, all legitimate, all honest, no crimes of any sort involved.

They are — to use the vernacular — screwed.”

It’s this over-reaction by government agencies which is the real concern and the co-operation of large corporations in shutting down services – as we saw with the shutting down of Wikileaks – probably does more to damage trust in all online services, not just cloud computing.

Cloud services are no less trustworthy than our computer systems, all of which can breakdown, catch viruses or be compromised by staff making mistakes. We have to understand that all technologies carry some degree of risk.

For businesses and home users, we need to spread the risks around – don’t just trust one service or technology to deliver your products or services and have a fall back plan if things go wrong.

Password blues

Sharing passwords is like giving away the keys to your car, be careful.

“Johnny down the street hacked my Minecraft account!” is something almost every parent today has heard in one way or another.

If you believed the kids, the schools are full of 12 year old hacking geniuses that can unravel passwords faster than a CIA super computer.

Usually it turns out the “evil hacker” in Grade 5 had the password all along as the kids share their login details with all their friends.

The New York Times recently pulled together story showing how teenagers are sharing passwords to show their affection. One wonders how many abusive relationships see the dominant partner control the other’s social media and online accounts.

It isn’t just kids and teenagers who find themselves in trouble though, businesses make the same mistakes. Commonly sharing a password to important files and tech functions across the organisation.

Thinking this is just a small business problem would be a mistake; Australia’s Vodafone made all their entire customer base available on the Internet thanks to single logins and shared passwords for each of their dealers.

Over the years this caused major problems for customers and the honest Vodafone dealers as their unscrupulous competitors hijacked accounts and churned clients to new plans. The cost to Vodafone Australia must have been huge but impossible to quantify given they apparently had no tracking mechanism to figure out who had accessed accounts.

In households and business, the main reason we share passwords is convenience – security by nature is always inconvenient. It’s convenient not to bother locking your front door or leaving your keys in the car.

When you really value something, you lock it up and you don’t give a key to everyone in your neighbourhood. It should be the same with passwords, keep them strong and keep them secret.

Our kids learn this the hard way, we shouldn’t have to.

Tightening the screws

Cloud computing changes business IT economics, but it isn’t a magic pill.

Google had a big boost this week with Spanish bank BBVA announcing its 110,000 staff will switch to use the cloud based productivity software.

This wouldn’t be good news for Microsoft as their struggle to retain their almost monopoly position in corporate desktop applications and will undoubtedly mean reducing licensing fees and accepting tighter margins on their products.

BBVA’s move is interesting on a number of fronts although there’s a few myths among the trend towards cloud computing services and office productivity.

Cost saving myth

Part of the focus of selling these products is on cost and the head of Google Enterprise apps in Europe, Sebastien Marotte, said that his corporate customers on average achieved cost savings of between 50% and 70%.

The cost aspect is interesting, I’ve posted before about exaggerated claims for cloud computing savings, and Marotte’s statement deserves a closer look.

It’s highly likely the claimed cost savings are based on licensing – the standard Google Apps cost of $50 per user per year is substantially less than even the discounted rates large corporations receive on Microsoft licenses.

While the licensing cost is a serious line item, particularly when you have 110,000 employees, it isn’t the whole story; there’s training, maintenance, disaster recovery, security and a whole range of other issues.

Cloud computing services address a lot of those costs, but nothing like the order of 50 to 70%. In fact, it would be hard to find an enterprise that had the sort of slack in its IT operations to achieve those sort of savings.

In one respect, this is where its disappointing that cloud computing vendors tout those sort of savings – not only does it commoditise their industry but it perpetuates the myth amongst executives that IT staff spend the bulk of their time playing video games.

While there are real savings to be made for businesses switching to cloud computing, any sales person claiming a 50% or greater saving should be asked to justify their claims or shown the door.

Clean slate

Another interesting point with BBVA switching to Google is how the bank wants employees to leave all their old email and data in their old systems. Carmen Herranz, BBVA’s director of innovation, says we “want to start from scratch… don’t want to carry across old behaviours”.

Not migrating data is an interesting move and how BBVA’s users deal with retrieving their contact lists, dealing with existing email conversations and how staff will deal with feature differences like document revision tracking – an area where Microsoft Office outdoes Google Docs.

Internal use only

BBVA are only applying the Google services to internal documents as well which means the bank will be using other software – probably Microsoft Office – for corresponding externally.

This makes it even more unlikely the touted cost savings of 50 to 70% are achievable, and may actually increase support costs while reducing productivity as many customer facing staff will have to deal with two systems.

Having one system for use inside the business and another for external communications seems to be a European trend – before Christmas French company Atos announced it was abolishing email within the company but still using it for outside messages.

Both abolishing email and moving to cloud based office packages are really about improving productivity in a business while cost savings are nice, the main focus on adopting cloud computing – or any other new technology – should be on freeing your staff to do more productive work.

The death of the netbook

Is the cheap, ultra portable computer a dead product line?

“You don’t want to buy one of those of things,” said the electronics store assistant, “they don’t have much memory and the CPUs in the notebooks and ultra books are better.”

I was shopping for a cheap netbook for the kids, each of which had been saving up to buy one as they are sick of me yelling at them for playing Minecraft on my work system, and the consensus from the store staff was to do everything to steer folk away from the cheap systems.

This is understandable as most electronic store staff are on commissions, and these are lean on cheap computers. It’s much better to sell a thousand dollar unit – with upgraded warranties and accessories – than a low margin, one off unit.

For manufacturers, similar problems exists; these cheap unit cannibilised their higher priced products with better margins. Dell recently announced they are getting out the netbook market and others are following.

Netbooks themselves are in trouble as the market they addressed for cheap, portable, Internet connected devices is now largely covered by smart phones and tablets which offer better battery life and usability.

Interestingly, the battery life argument was even used by the computer store salesfolk who pointed out – correctly – that the newer laptops have better power management than their cheaper netbook cousins.

While the netbook as a category is dead; the concept itself isn’t. As the uptake of tablet computers like the iPad show, Internet connected portable devices are becoming the computer of choice for many people and the advantages of a laptop form factor; a proper tactile keyboard, USB ports and other external connectors are still attractive.

Probably the worse thing for the manufacturers and retailers is the price points are now established in customers’ minds – $400 is what people want to pay for laptops, which doesn’t bode well for those higher priced systems.

Those manufacturers can’t even get into the tablet computer market as Apple now own that sector that the PC vendors and Microsoft squandered a decade’s lead with substandard equipment and badly designed software.

Despite the best efforts of the electronic store’s salesfolk, my kids ended up buying cheap, low specced netbooks out of their savings and those systems run Minecraft quite nicely. Which is another problem for shops and manufacturers stuck with a 1990s business model.

The year of the cloud

2011 was the year cloud computing took off.

This post originally appeared in Smart Company on December 23, 2011.

I was asked last week to join Stilgherrian and Jeff Waugh on ZDNet’s Patch Monday reviewing the year that was in technology. One of the things that came out of the session was much of what happened in the tech world over the last year was really a continuation of 2010’s trends.

That’s certainly true and the biggest buzzword in business tech for the last two years has been “the cloud”.

Over the last year we’ve seen a lot more providers getting on the cloud bandwagon with Microsoft responding to the Google Docs threat with their Office 365 product, MYOB launching Live Accounts, to respond to threats like Xero Accounting Software and Saasu and a whole range of vendors proclaiming they are ditching the desktop and moving onto the web.

Despite the hype businesses are slow to respond as they evaluate the various risks with moving to web-based services. Partly this is due to suspicion of the more outrageous claims such as “saving 80% of your costs by going onto the cloud” that have been peddled by some vendors.

A lot of that suspicion is fair enough, too. Many business owners – along with CEOs and government ministers – have been burned over the years by IT salespeople claiming big savings available if the gadget or software of the day is purchased.

Unlike corporate leaders and government minsters, the managers and owners of smaller businesses tend to learn from their mistakes and so they are waiting to see if the cloud services really deliver.

Eventually businesses will move a lot of their computing applications to the cloud as the cost-benefit equation is better for most services than running it in your own office as it eliminates the overheads of buying computer hardware and hiring some geeks to look after the things.

Given the real advantages of cloud services – not just in terms of cost savings but also in business flexibility, productivity, security and reliability – it’s worthwhile using the quiet January period to have a look at where your organisation can benefit from moving online.

Some of the other buzzwords like social media, collaboration and site optimisation are worth having a look at too. The holidays are an opportunity to see where these can be used better in your business.

One thing is for sure – next year you’ll be hearing more about cloud computing as vendors are gearing up for some big marketing campaigns next year. So knowing what you want for your business may well pay dividends.

Quitting our email addiction

What can we do to reduce the size of our electronic inboxes?

This post originally appeared in the Xero Accounting Blog on December 9, 2011.

With 74,000 staff, you’d expect the CEO of French technology company Atos to be buried in email, but Thierry Breton hasn’t sent an electronic mail message for three years.

As the US ABC news service reports, Atos and Breton are implementing a zero email policy for their employees, steering them to use instant messaging and collaboration tools that reduce the need to send attachment heavy messages.

Breton claims only one in ten of the 200 messages his employees receive each day are useful and 18 percent is spam which – given some security companies estimate over 90% of world email traffic is unsolicited messages – shows Atos has a pretty good spam filter.

Email has been one of the main applications of business technology for the last twenty years, so how feasible is it really to move away from the inbox as being the first and last thing you check each day?

Instant Messaging

The ability to send quick messages between computers has been around since they were first networked in the 1950s but consumers and business largely ignored these clunky features until they were made popular in the late 1990s by the web based AOL and MSN Messenger services.

Most business communications platforms like Microsoft Office, Google Apps and  Novell Groupwise have an Instant Messaging (IM) tool built in which can be easily turned on.

None of this is new technology and it’s probably one of the most used business features in the Skype Internet telephone service.

A downside with IMs is they generally demand immediate attention and can distract someone from their work. They also leave detailed logs so don’t for a minute think your rant about a customer or staff member hasn’t been recorded.

Social media

Many of the social media tools have their own built in instant messaging with LinkedIn, Facebook and Google+ having their own services with Google’s service offering the Hangouts feature to create impromptu video conferences.

By definition Twitter is an instant messaging service offering both public and private channels. The Yammer platform is a grown up corporate tool that offers all the social media functions for a business environment.

The downside with using social media platforms as mission critical business tools is their reliance on the best efforts of external providers that can raise security and reliability issues.

Wikis

Atos makes specific mention of their company wiki. Simply put, a wiki is a website that can be easily updated by anyone with permission to do so.

It’s possible to lock wikis, restrict access or to undo any changes that aren’t suitable so all the information is controlled and subject to review. These can be run on your own office server or hosted on an outside cloud service.

Wikis are a fantastic tool for building a corporate memory and developing standardised procedures and policies across an organisation.

Collaborative tools

One of the big changes in the modern office is the rise of cloud office software services like Google Docs, Basecamp and – of course –Xero Accounting that allow people to work together on the same files at the same time.

In the past, office software has locked individual documents while one person used them and that aspect alone has probably been responsible for many of the emails spinning around corporate offices.

Another benefit of the new breed of collaborative tools is they make it easy to control documents as all team members are working only one version of a file, meaning there’s no uncertainty of who has the latest version.

External risks

There are some outside risks with some of these services as they are cloud based so Internet access is important and there can be some questions of security and reliability with trusting processes to outside providers.

Email itself is evolving into a cloud based commodity as many businesses move to Gmail or hosted solutions rather than running their own email servers.

If those external risks are a concern, then it is possible to run these services on your own networks although most businesses are comfortable with outsourcing their technology.

Discovery

One of the first things that jumps to mind from a business IT point of view is that moving to a non-email environment reduces the risk of having to provide masses of data in the event of a legal dispute.

Many organisations have been caught out by a “smoking gun” message hidden within the pile of emails sent within an organisation every day.

The reality is that instant messaging, wikis and collaborative tools all leave their own “digital fingerprints” and if anything the non-email platforms may make it harder to hide evidence from a determined investigator.

Outside parties

Atos aren’t banning electronic mail with outside parties though, with a company spokesman quoted saying their goal is focused on internal emails rather than those from outside the company.

This makes sense as email is still a key business communication tool and not using it to talk to suppliers and customers wouldn’t make sense. For most organisations such a ban would make it impossible to send invoices.

Email is a key part of business and probably will continue to be, what we are seeing though is an evolution of how it is used in the workplace as new tools are developed.

The last word goes to Thierry Breton who said when announcing the policy, “We are producing data on a massive scale that is fast polluting our working environments and also encroaching into our personal lives”. He has a point.

How are you managing your business email and would you abolish it if you could?

Cloud Computing Explained: 702 Sydney Weekends

This month’s 702 Sydney Weekend spot looks at cloud computing.

What on earth is cloud computing? Is it just another IT buzzword or something that you can use in your home and business?

On the November 20 ABC Weekends show, Paul and Lex Marinos discussed what cloud computing is and how it can help you.

We also helped out listeners with various computer and tech questions, including the following;

Malware

Sue was caught out by the DNS Changer Trojan that was recently busted by the FBI. Probably the best fix for this is downloading and running the free Malwarebytes software.

Our IT Queries site has instructions on the somewhat convoluted process for removing this Trojan and other viruses from your computer.

Synchronising an iPhone with iCloud and Google Calendars

One advantage we have with the cloud is that it means you can use devices anywhere, however there is a bug where iPhone calendar functions aren’t synchronising with Google Calendar.

Unfortunately the problem is the iCloud and Google services aren’t compatible on the iphone so one has to be turned off.

If your preference is to use the Google services, then you will have to turn off the iCloud services through the iPhone’s settings app and turning off all of the calendar and contact settings.

You may then want to check your Google services are being synchronised through the iTunes settings.

Sharing data between laptops.

One of the advantages with networking is that you can share data between computers. Sonya wanted to know how she can setup her windows 7 laptops to share data to an external drive.

The best option is to use a Windows 7 compatible Network Area Storage device that sits on the network.

For the setup to work, the network name has to be the same on all three devices, Microsoft has instructions for setting Windows7 network name and the hard drive will have the instructions included for setting it up correctly.

It’s also worthwhile using Microsoft’s Active Sync software to synchronise machines as well so you have files stored on your computer.

If you missed Sunday’s ABC program, there’s more details at Netsmarts’ Cloud Computing explained and The Networked Business, we’ll also be running a Demystifying the Cloud webinar on the Australian Businesswomen’s Network at the end of November.

That will probably be the last ABC 702 Weekends spot for 2011 unless there’s something else that comes up.

Subscribers to our newsletter get early notice of any upcoming programs and other useful information on getting more value online. Don’t miss the next program.

Reaching connected communites

How do associations and clubs make sure they are visible on the web.

As our homes and communities become more connected, people are expecting to find all their information online. How do associations and clubs make sure they are visible on the web.

This is the transcript of the opening keynote to the Australian Seniors Computer Clubs Association’s 2011 conference. The accompanying slideshow is available on Slideshare.

Reaching Connected Communities

Thank you very much for the kind introduction and the opportunity to open Australian Seniors Computer Clubs Association’s 2011 conference.

We’re in a time of history where all of us have the planet’s information at our fingertips and the ability to broadcast our own views and beliefs to the world.

Increasingly our roles as productive members of society are determined by our access to that information and our ability to use it.

Seniors computer clubs have a critical role in ensuring older generations have the opportunity to contribute to the connected society of the 21st Century.

The problem for clubs is that all of us struggle to be heard through the noise of the online world. This morning we’ll have a look at what tools computer clubs can use to stake their claim on the Internet and be found on the web.

It isn’t just clubs affected by this, many of the traditional models of media and business are struggling with these changes and this presents opportunities for computer clubs and community organisations.

Underlying the use of these tools there are the principles that I call the four C’s –community, collaboration, conversations and communications.

Communications

Of the four, communications is the most traditional area. We need to be talking to those who need our assistance.

We have to be telling people how we can help them, what our services are and of course when and where the clubs meet.

In a traditional way, we advertised, or had articles put into the local papers and other publications. These channels are evolving in the digital era and are important to clubs as the people you want to reach out to are those who aren’t using the web effectively.

We also have newer communications platforms in local search, mobile apps and social media.

All of these channels complement each other and allow us to post relevant and timely messages that keep members and the public up to date with key issues.

With search engines and social media now the main ways that people research and find information, it is more important than ever that clubs have a legitimate online presence.

Communications isn’t just about getting the message across, it’s also about working together and many of the cloud and social media tools like Google+, GoToWebinar and Webex allow us to have conversations with the housebound and dispersed groups.

Conversations

Traditional broadcast methods of communicating do not encourage conversations. If you want to have your voice heard in the local paper you have to write a letter to the editor which may take weeks to be published, if at all.

In reality there was no conversation. The owner of the printing press or broadcasting licence controlled the message and who was allowed in the discussion.

Today’s online tools today allow us to talk to our audience. This is a great advantage for community and volunteer groups.

This is something that big companies and governments, with respect to the minister, struggle with and it is where computer clubs and other community organisations will increasingly carry out an important role.

Collaboration

One of the traditional problems with volunteer groups is that much of the work fell on one or two individuals. The cloud computing tools of today mean groups can collaborate far better and take the load off key members.

Tools like Google Docs, Dropbox and WordPress mean that the load can be shared among a group and no longer has to rely on one person to update the website or complete meeting minutes.

These cloud computing tools allow clubs to work together better internally, improve efficiency and engage more effectively with their communities.

Community

The most important part of clubs is communities.

One of the problems we’ve seen in the 20th Century is that the rise of the motor car and broadcast media fragmented our communities.

Online tools, particularly social media, will work to bring communities back together, a process that’s going to accelerate as the era of cheap credit ends and the limitations of government are going to become apparent.

The tools

So what are the tools we can use for our clubs. I’m going to run through some basic ones. This is by no means a definitive list and you may find alternative tools that suit your organisation’s needs better.

These are listed on my website and at the end of my presentation I’ll give the web addresses to this presentation online so you don’t have to write down the scripts.

We’ll look at social media platforms, web publishing services and local search. First let’s look at the collaboration tools that help clubs deliver a better message to the community.

Google Apps

Google Apps, which is free for organisations with less than ten users, is a really handy service that offers basic word processing, spreadsheets and presentation software.

Its great strength is the ability to share those documents, spreadsheets and presentation with other users who can all work on them at the same time.

Google Docs also has a form feature which allows you to setup quick and ready surveys, feedback and booking forms.

Other similar tools are Zoho and Office365 which both offer collaboration and sharing features.

Dropbox

Dropbox, and its competitors Box.net and Microsoft’s SkyDrive, are great tools for sharing files between computers and collaborative teams.

These services allow you to create folders on an Internet service that you can then securely share with other people. It makes working on projects very easy and eliminates the shuffle of email attachments around groups.

If you are using these tools you don’t need to be converted about them.

Mailchimp

Mailchimp is the sanity saviour of small businesses and community organisations wanting to get newsletters out.

Managing a mailing list is hard work and these services take the hard work out of them as well as make sure your organisation complies with the spam act.

The service offers templates and sophisticated management tools so you can see who is opening your newsletters and what links they are clicking.

Survey Monkey

Survey monkey helps organisations keep in touch with their members and understand their needs. It’s a great tool for measuring customer satisfaction and feedback.

Google Apps has a more basic survey function built into it as well.

Both are excellent ways of keeping your membership in the loop when it comes to agreeing on new ideas.

Local Search

Local search is changing the way we do business.

Consumers using local as they abandon phone directories and classified ads as the net is a quicker more effective way of searching.

These local search results not only appear at the top of the page but they also feed into the popular social media services.

All organisations, local or otherwise should be listing on these not just to improve their search results but to also appear on other services and on devices like GPS systems.

If you have a relative or friend running a business I’d urge them to list on all of these services as this is an area that is seriously changing the business landscape.

Google Places

It is essential to be listed on Google Places as this will appear at the top of a local search and feeds into other social media and services like street directories and GPS navigators.

Ensure you fill in as many fields as possible, especially the times and days you are open and contact details.

Use the custom fields to improve your keywords and give a richer description of who you are.

You can also upload photos and videos which will improve your search results along with give visitors more information about what you do.

True Local

News Limited’s answer to Google Local ties into News’ local newspaper network.

True Local charges for some functions that are free in Google Places and offers additional free services like the ability to upload Word and PDF documents.

Sensis

Sensis is digital roadkill, the most common complaint with the print edition now is that it’s too small to read and the phone book doesn’t make a good monitor stand anymore.

However, Sensis’ free listing is important as it feeds into NineMSN’s search which is the default on Windows computers.

You’ll also receive a free listing in the printed Yellow Pages for what it’s worth, which to be fair is probably where the most digitally challenged folk will find you.

Social Media

In recent years we’ve been lead to believe that social media is something bigger than the industrial revolution that will cure various tropical diseases, rescue broken business models and make a cup of tea for you in the morning.

The reality is social media is changing the way communities and markets communicate. It’s the 21st Century’s town square or village tavern.

Social media services are great for driving traffic to your site and excellent for listening to trends, monitoring news and talking to your community. They are also the greatest driver for people getting online.

Facebook

Contrary to stereotypes, the fastest growing group among Facebook’s 800 million users are seniors.

This is the biggest opportunity for clubs as the late adopters – the sceptics who’ve resisted going online are now doing so, if only to talk to their grandkids.

There’s a view that Facebook, and most other social media services, are for teenagers putting up pictures of cats and talking about what they did last weekend. That’s wrong on many levels as the service cuts across all demographics and groups.

Facebook Pages

Like a Google Places page, a Facebook Page is free and vital to clubs and businesses. If you have relatives running a business, they should also sign up for a free site.

Increasingly this is where the public goes to online and we have to be there. You can also add events and publicise them through these pages. Your community can contribute and share to your page.

Get 25 members to like your page and you can claim the full name as well.

Google+

Like Facebook, Google+ has a free pages function for community groups and pages. However it remains to be seen how much traction Google+ will get as the service develops.

Google itself seems to be confused about what Google+ actually is, Eric Schmidt, Google’s chairman, calls it an identity service rather than a social media platform. This confusion of what Google Plus actually is doesn’t fill me with optimism on the service’s future.

Apart from the social aspect, Google+ has some interesting collaboration tools such as Hangouts, that allow ten people to work together. If you have a webcam installed, and most new systems come with one, you can set up a group for training or collaboration.

Along with Google+ there are other webinar programs such as GoToWebinar or Webex and Skype’s conferencing feature does a very job at this as well.

Twitter

As a conversational and listening tool Twitter is excellent, although it has been largely mis-sold by the social media business community as a marketing and PR tool.

Twitter allows you to be ahead of the news cycle as most journalists use it to find stories. My own use of Twitter is as a news source.

It’s a good way of keeping up to date on what is happening in communities and with connecting with individual journalists and opinion makers.

Own your platform

The website is your site and your property. Overlooked the dangers of not owning the space you are publishing on.

Websites have become easier to use and build. It you’re using a service like Blogger or WordPress you can get a site running for as little as seven dollars a year and you can be delegating access to various members of the group.

Your website is the centre of your online presence and your home base in the digital economy.

Blogger

Blogger – Google’s free blogging service – is a great tool for getting a website running.

Easy to use, with dozens of templates and plugins for services like e-commerce, newsletters, social media and events it’s an effective and quick way to get a website running.

You can also use your own business domain name for free. Which means you can get online for under $50 a year.

WordPress

WordPress is the most popular web content management system. Offering a vast number of templates and plug ins with the advantage of a big community of developers to support the product.

The software also allows an easy upgrade path to other services like Drupal.

Not business as usual

This is not business as usual.

Many of our business and political users are locked into 1980s ideologies and business models that are rapidly being challenged.

In the media we have a whole generation of journalists who are seeing their careers being twisted out of shape by forces they don’t recognise, something that has already happened to the record industry that thought it could use the old business model of developing new technologies that would extend their playlists in the way the LP had in the 1970s and CD in the 1980s.

We see this in the consumer goods industries where old business models are being challenged.

Earlier this year Bernie Brooks, the chief executive of Myer, signed a deal with one of China’s biggest contract manufacturers to make Myer’s homebrand clothes.

The problem with this is it’s the 1980s model. Today consumers can research these things and they will quickly figure out that Myer’s $200 branded shoes are made in the same factory and little different from those you can by for $50 at Target or Lowes.

This mindset illustrates the problems of established businesses and it’s no problem that Coles and Harvey Norman are campaiging to obstruct online shopping in an environment where the informed consumer is able to circumvent the old distribution and retail models.

In many ways these are modern equivalents of the stagecoach operators and it’s no co-incidence that a hundred years ago this year that Cobb & Co went broke. This is risk that any business runs when it is unfortunate to have managers who ignore trends.

Addressing the digital divide

Seniors computer clubs have an important part in today’s society.

The real digital divide is not across age, it is not between “digital natives” and “digital immigrants”, the real divide is between those who are prepared to understand and use these online tools and those who won’t.

Those who won’t are going to be increasingly isolated from a world that is going online. At a time where we’re seeing the NBN rolled out, the launch of 4G networks and increasing use of the web by business and government agencies it’s going to be essential to have some knowledge of the online world and the tools to use it.

Being on the wrong side of the divide will make it increasingly hard to access services and information.

The role of groups like the local seniors’ computer group is to help people remain valued and productive members of our community in today’s connected society.

Hopefully I’ve given you some ideas this morning on how to carry out the important role you have in this decade of great change.

What business can learn from Groupon

How can businesses use the web to grow like the group buying companies?

Groupon, pioneer of group buying and one the fastest growing companies in history, will have its launch on the stock markets today with an initial public offering (IPO) that’s values the business at thirteen billion dollars, more double the $6bn that Google offered for the three year old company last year.

A recent Business Insider profile of Groupon had some fascinating insights on this unique company and its growth, there’s a number of lessons that most business owners, entrepreneurs and managers can take from this company’s dramatic growth and market leadership regardless of the sector they operate in.

Apply tech to your business

Many people make the mistake that Groupon is tech startup when it’s actually a sales operation.

Groupon’s business model isn’t really new, what they have done is applied various web technologies to the directory and voucher shopping industries and come up with a 21st Century way of doing things.

Bringing together different modern tools like social media, cloud computing, local search and the mobile web makes businesses more flexible and quick to develop new market opportunities.

Prepare for quick changes

Groupon was born out of another business – The Point. As The Point steadily died, Andrew Mason and his mentor Eric Lefkofsky decided to try something different and Groupon was born.

This ability to change focus quickly – often called “pivoting” – is essential in changing markets. In volatile times like today where today’s business conditions can’t be taken for granted we have to be prepared for rapid changes.

Fortunately the cost and time to changes your business focus has dropped dramatically with digital and online tools, which is another reason to embrace tech.

Get a good business mentor

Eric Lefkofsky bought maturity and a perspective to Groupon’s young leadership, having a different and more experienced view of the business helped it develop and grab the opportunity.

An experienced business mentor can be worth their weight in gold.

Back a good idea

In Nicholas Carson’s Business Insider profile he describes Andrew Mason role at Eric Lefkofski’s business before The Point as “an intern, ‘kind of squatting in their offices'”. Lefkofski was prepared to back the geeky kid camping on his premises.

Putting your prejudices and judgements on the shelf to back good ideas, particularly those that don’t cost much to execute, is one way to find where the opportunities lie.

Tell your business story

Regardless of what you think of Groupon’s claims, they tell a very good story which has lead to their amazing growth and the development of the group buying industry.

Being able to tell your story, in your terms, is one of the great advantages the web, local search and social media deliver. There’s no reason why your business shouldn’t be dominating the local market in whatever field you work in.

Regardless of what your business does, it can benefit from applying the online tools that are available to all of us.

We may not be the next Groupon but the web gives us the opportunity to build our business to take advantage of the 21st Century. It’s worthwhile understanding the new tools at our fingertips.

The IT industry’s damaged business models

Can the Information Technology industry deal with a radically changed business environment?

JT Wang, Chairman of personal computer manufacturer Acer believes the release of Windows 8, Microsoft’s next operating system, will see a resurgence of sales for Windows based computers. Market trends suggest those hopes are in vain.

Right now the Personal Computer market can be roughly split into two camps; those happily running Windows XP who have no need to upgrade and those who are delighted with Windows 7 who have no need to upgrade.

Short of their computers breaking down, neither group have any good reasons to change to the new operating system as, unlike Windows 3.1, 95 or XP, there is no new technology breakthrough or advance to warrant making the jump.

To make things worse for the PC manufacturers the rise of cloud computing services extends the life of older Windows XP systems and eliminates the biggest driver of new computer purchases in businesses – the software upgrade.

During the PC era one of the banes of business owners were enforced software upgrades where vendors would release a new version of a program every year or two and withdraw support for the older editions.

Frequently the newer software would require the latest hardware, forcing the business into an expensive and disruptive upgrade of all their IT systems.

Today, software companies following the forced upgrade model are finding customers have viable cloud alternatives which destroys the revenue stream behind those frequent releases.

When a customer moves to a cloud service, they also delay buying new desktop or server hardware which is partly driving the steady increase in the age of business computers.

For computer manufacturers the release of Windows 8 could actually be bad news as customers will probably postpone system upgrades until the first service pack of the new operating system is released.

Even if Windows 8 does deliver increased sales as JT Wang hopes, the trend of steadily falling PC prices as smartphones and tablet computers take market share is inevitable.

The PC industry in both laptops and desktops has been a commodity industry for some years and any hope of establishing premium pricing from tablet computers has been dashed by the iPad’s competitive price points.

Regardless of the hopes of the IT industry’s leaders, both the hardware and software sectors are under a lot of stress. It will be interesting to see who adapts to today’s market.

 

Technology’s magic pills

How a social media or cloud computing ointment won’t solve your business problems

As railways rolled out across the US in the mid 19th Century, the snake oil merchants selling dubious medicines weren’t far behind.

Communities that had never before seen things that were taken for granted in the big cities were easily fooled by miracle treatments that would fix all their ills. By the time the locals discovered the scam, the snake oil salesman and his shills would be well out of town.

Technological change always brings out hype and over the last few decades we’ve seen a similar thing happen with the tech industries, as products and services were sold on the back of claims that could be described as ambitious, if not outrageous.

The Y2K bug was a good example of this as planes were going to fall from the sky and dams collapse if we didn’t hire an expensive consulting firm or buy a widget that would remind our computers they were now in the 21st Century.

A similar thing is at work with Internet names, where the current push to sell Top Level Domains – a bargain with their $385,000 application fee – is being touted as the fix to everything that is wrong with web addresses.

With digital snake oil it’s interesting how often big organisations sometimes act like 19th Century American sharecroppers – all too often we seen ministers and CEOs announce an outsourcing deal that will save taxpayers or shareholders millions only to later find the only winner was the consulting firm that sold the idea.

A similar trend is at work in the PR industry, Sky News presenter John Kerrison has an entertaining look on his personal website on how social media is being sold as an easy fix for a business with far more fundamental problems.

The sad thing is that there are real benefits behind the grandiose claims; Y2K was a real problem, money can be saved through intelligent outsourcing and social media is a great PR tool.

Eventually hype backfires, consumers are rightly dubious about anything that has the slightest hint of PR spin while the IT sector is viewed with well-earned suspicion by business proprietors, executives and managers.

A good example of this was last week’s Digital Readiness report from Optus that found businesses aren’t particularly interested in cloud services. This mirrors similar studies by Sensis, MYOB and MelbourneIT which all find organisations aren’t too fussed about the online world in general.

The danger with this is there is fundamental shift happening in society and technologies like websites, social media and cloud computing  – just like the railroads in the 19th Century – are part of those changes which businesses need to understand.

In an era where snake oil is a commodity there are two challenges for business people; the first is not to be perceived as one of the charlatans and the second is to see the miracle cures for what they are.

Probably the best tool for dealing with the digital snake oil merchants is turn on your own, old-fashioned bullshit detector and treat the shills with the suspicion they deserve.