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Facebook Nation Tops 200 Million

04/09/09 8:30 AM PT

Facebook now counts 200 million users worldwide, half of which were added in the last eight months. By comparison, the size of rival social networking site MySpace has basically plateaued at around 130 million. Facebook's growth rate may taper off soon as well, but the site has continually changed its offerings to attract new eyes. Growth, however, has not come without pain.

In less than eight months, Facebook has doubled its user base by signing up 100 million people from around the world, officially hitting 200 million on Wednesday.

Its population is now higher than Brazil's and Japan's.

The ubiquitous online hangout, available only to college students when it opened in 2004, has been growing rapidly since opening up to anyone who wants to sign up.

But how long can that continue?

'Dashboard for Internet Users'

After a meteoric rise, News Corp.-owned MySpace has petered off and now has roughly 130 million active users, according to comScore. Facebook could ultimately plateau as well. After all, while there more than a billion people connected to the Internet, that doesn't mean they all want to be on Facebook.

Still, even if it's inevitable that Facebook's growth will slow down at some point as the site runs out of prospects to convert, Facebook continues to change what it has to offer, meaning today's holdouts might decide later to join after all.

"What's striking to me is how Facebook has become a kind of dashboard for Internet users," said Lee Rainie, director of the Pew Internet and American Life Project.

He said Facebook, along with MySpace and other social sites like Orkut from Google (Nasdaq: GOOG) or Bebo from Time Warner's (NYSE: TWX) AOL, have clearly changed the online experience for many people.

Growing Pains

Facebook's expansion has been peppered by growing pains, from concerns about how it handles users' private information to site redesigns that irked tens of thousands.

Just last week, the company announced that finance chief Gideon Yu would be leaving, as Facebook looks for a replacement with "public company experience" -- never mind that Yu had worked at Yahoo (Nasdaq: YHOO) as treasurer.

On Wednesday, Palo Alto, Calif.-based Facebook also updated its display of site statistics .

According to these, more than half of its users log in to the site at least once a day, and the fastest-growing demographic is people over 35. About 70 percent of Facebook users are outside the United States (MySpace still claims to be the nation's largest social network).

For those itching to know if they are popular enough: The average user has 120 "friends" on the site

Cloud Implementation, Part 2: Cutting a Path to Customization

04/10/09 4:00 AM PT

From a purely financial standpoint, a move to a cloud environment may appear to save a company buckets of money. However, many technical details must be considered, including the issue of customization. Those considering a jump to the cloud should be aware of the contingencies that can arise.

Part 1 of this three-part series focused on planning out a successful move to a cloud environment. Part 2 investigates obstacles and strategies relating to customization in the cloud.

For some companies, the decision to move to the cloud is a no-brainer -- especially if they limit their planning to pure number crunching. Without a doubt, the savings for such a leap, both explicit and implicit, can be huge.

"Since you are sharing an infrastructure and application, the quality, usability, and price/performance are at least 50 percent better [than] what used to be in-house, and the rate of invention and innovation more than double," Rene Bonvanie, SVP of marketing, information technology and Serena On Demand at Serena Software, told CRM Buyer. "The risk has in fact diminished because rather than having to rely on my own always under-trained and under-paid resources, I can tap into a large collective pool of talent."

Still, though, there are technical issues to consider, not the least of which become apparent when the planning process begins to focus on customization. Simply put, customization in the cloud is not an easy endeavor -- certainly not easy enough for the average line of business manager to tweak for his or her own use.

By no means is this a deal breaker. Rather, those considering a jump to the cloud should simply be aware of the contingencies that can arise -- and the end goal of the project.

Big-Picture Considerations

Improving the customer experience should be a guiding principal for any cloud customization, Tom Gonser, founder and VP of product strategy at DocuSign, told CRM Buyer.

"To be of significant value and drive the biggest business benefits, any successful cloud computing application must also improve your customers' process and experience," he said.

Of course, it doesn't necessarily follow that such tinkering will be apparent to the front-end customer. "Cloud-based applications that include custom, secure data fields can be -- and should be -- customized to capture the data and automatically feed it into back-end systems to maximize the workflow automation and produce greater overall efficiency and ROI (return on investment)," he said.

Hire Good Help

Carefully screen the developer in charge of the project, as cloud-computing implementations and customizations can require special skill sets. This should certainly be a factor in the planning process, but it is also applicable to customization.

For instance, Lori MacVittie, technical marketing manager for F5 Networks, told CRM Buyer about a common challenge. Developers, according to MacVittie, are not always familiar with the nuances in what is essentially a load-balanced environment.

"The biggest challenge in doing so is around session management," she said. "Almost all Web applications utilize sessions on the application server to maintain some sort of user information for the duration of the user's time in the application."

In a load-balanced environment, she said, the load balancer needs to be able to "persist" connections to the same server on which a user was first connected in order to maintain access to that state information. "If the cloud environment is not able to support persistence in this way, then it becomes necessary to implement a shared session management scheme using, for example, a shared database in which to share sessions such that every instance can access the appropriate session data for all users. Understanding which model can or will be used before development is necessary to avoid 'breaking' the application in the cloud and potentially requiring a rewrite of large chunks of the application to make it work in the cloud environment."

Other Cloudy Considerations

A highly skilled developer can also squeeze greater efficiencies out of the cloud environment when customizing the app, saving the company time and other resources.

For instance, Brian Goodman, IBM (NYSE: IBM) manager of cloud engineering and experience, suggested focusing on those parts of the applications that are long-running or resource-intensive. "These are great candidates for distributed computing design patterns," he told CRM Buyer. "One of the uses of an elastic cloud is to leverage its massive distributed resources to solve many smaller problems and then assemble the pieces to form a solution."

Applications tend to suffer from logic congestion, wherein one element is doing the work of many, Goodman continued. "The trip down componentization lane is all about simplifying without losing power. Consider your application and start breaking it up into pieces that could live as parts, but currently, for whatever good reason, do not.

"Also, if your application isn't service oriented, cloud is the reason to take the leap." This ties into componentization, he said: enabling the company to standardize service interfaces while ensuring flexibility and reuse. "If you are still building monolithic stacks, there is a lot of opportunity in this space. Don't just consider service endpoints, but also consider the use of widgets -- services that are delivered with an end user interface -- as services."

Services don't necessarily imply componentization, but if you can conceive of them, then you also have opportunities to scale parts of the application independently, he said. "This is very important, because we often just make clones of our applications and run it over and over, distributing loads across many instances. But the truth is that different pieces could scale at different rates, allowing you to economize and drive efficiencies into the system

An Xserve Lift, an iTunes Shift and a Gift Card Grift

04/10/09 4:00 AM PT

The run-up to June will no doubt be awash with iPhone rumor and speculation. For now, though, there's plenty of other action going on in the world of Apple to keep things interesting. This week, IT types got to pick through Apple's new servers, music fans got to pay less -- or sometimes more -- for a fix, and flimflammers may be trying to lure app developers into a scheme to wring cash from cracked iTunes gift cards.

Most of Apple's (Nasdaq: AAPL) core products have seen some sort of refresh since last September, and it appears there aren't a whole lot left to update any time soon.

Most recently, Apple unleashed Intel's (Nasdaq: INTC) Nehalem processors in its Xserve server line, which doubled the performance ... so, that's cool, but definitely cool for a limited audience of professional business users. In a more consumer-oriented vein, the next-generation iPhone won't blow anyone away until probably June or so, and the Apple TV has been mostly ignored -- only Apple knows what kind of product timeline it's on.

In the mean time, the Apple-focused blogosphere will likely spend the next two months looking under rocks and peering into crannies to pass the time. Oh, and there will be rumors, lots of rumors (but we'll cover those another day).

The Xserve Factor

As for the Xserve, Apple slipped in Intel's Nehalem Xeon processors and a next-generation system architecture. The 1U rack-optimized Xserve now delivers up to an 89 percent improvement in performance per watt, Apple boasts. The Xserve is available with up to two 2.93 GHz Intel Xeon processors, as well as an option to include a 128 GB low-power solid state drive (SSD) and up to 3 TB of internal storage. It starts at US$2,999, but it also includes an unlimited client license for Mac OS X Server version 10.5 Leopard.

Each processor contains an integrated memory controller with three channels of 1066 MHz DDR3 ECC memory, which Apple says delivers up to 2.4 times the memory bandwidth while cutting memory latency up to 40 percent.

On the surface, the 128 GB SSD drive seems a bit small -- until you realize that it's designed as a boot drive to run the system.

"I think the SSD makes quite a bit of sense. It doesn't eat a drive-bay and it has ultra-fast seek-times. There are quite a bit of uses for SSD in server-use IMO," commented Evangelion on the MacRumors.com post on the subject.

The RAID add-on price, however, seemed to irritate a few. "Still crappy that in a server they charge you $700 to have RAID capability (hello! it's a server!). At least it brings SAS with it though," added edesignuk. "Can't help but think if you pick up an HP (NYSE: HPQ) Proliant DL you'll get all this and more as standard."

Perhaps. "Was looking in to this for both HP and Dell (Nasdaq: DELL) , Apple are quite competitive, when most Windows servers come without things like operating systems and hard drives! Devil's in the detail as they say ...," added Schizoid.

"Especially as you get an unlimited client version of OS X Server for it. Try buying an unlimited client version of Windows Server (I know you can't) and see how much that costs you ...," chimed in Cromulent.

The upgrades Apple gave Xserve were well-timed for Mel Beckman, an independent network and Internet security consultant, who received a pleasant surprise.

"I ordered one about three weeks ago, not knowing Apple had new ones coming," he told MacNewsWorld.

"It hadn't shipped yet, and Apple called me today and said, as a result we're going to give you a free upgrade. And the new model, with all the upgrades I had configured, will still cost me about $1,500 less than originally planned," he said.

So, sometimes Apple's pricing models actually drop.

Variable Pricing Comes to iTunes

Then again, sometimes prices go up. Apple's one-price-fits-all model for iTunes songs, which had been tweaked and battered a time or two in the past, will now break into at least three pricing tiers -- $0.69 for older and less popular tracks, $0.99 for the bulk of the catalog, and $1.29 for premium popular songs. Naturally, music labels will likely work with Apple and other online outlets for special promotions.

"The labels are now scrambling to find ways to cash in on their most popular offerings. One approach has been a concept called iTunes Pass. Similar to an iTunes Season Pass for TV shows, the digital offering combines upcoming album releases with exclusive singles, videos, and other media that will be made available to subscribes over the period of several weeks or months for a premium price," noted AppleInsider.com.

For example, for $16.99 you can buy an iTunes Pass to The Fray, which gives you new music and special bonus content, namely the group's "Live from Soho" session, a video performance, and some additional audio and video live performances. There's a "grayed-out" song listed as well, which will be delivered at some unknown point in the future.

Many of the comments expressed disappointment in higher-priced songs, and some even blamed Apple for it -- though it may not really be Apple's fault, according to Mike McGuire, a vice-president of media research for Gartner (NYSE: IT) .

"If you look at the stuff they announced months ago, when they first brought up the changes of the tiered pricing discussion, notice the careful wording -- the prices are set based on what Apple pays the labels -- basically the wholesale price," McGuire told MacNewsWorld.

Apple didn't exactly cave to the music labels, according to McGuire -- remember, the new tracks are DRM-free. Its attitude, he explained, was more along the lines of, "'OK, guys, you've been wanting this for years, and if this is what you really want to do, go for it.'

"Apple made great pains to tell me that price changes would only happen once a week," he added. Rapid price changes could easily turn into a PR nightmare.

"What's going to be interesting is to see how consumers react to $0.99 versus $1.29," McGuire said.

"I believe the .99$ was psychologically much smaller price than it really was. I bought some songs just because I liked them and never thought about the price. Yes I noticed the 5$, 10$ invoice, but when I bought the song I didn't care," commented gabriel_bl on the AppleInsider.com post. "Now when I hear some song and I like it, from the same CD I usually buy 2-3 songs that could end up to be nearly 4$. I will question my decision and think if it is not better to buy a whole CD somewhere for 9$ and I will wait and look for a deal. While the time goes by and the radios play the same songs I will hear the song enough time to not want to buy it anymore.

"There will be less spontaneous shoppers," gabriel_bl noted.

Meanwhile, the Hackers Are Cracking Apple's Codes

While Apple is still trying to sell music, hackers have found a way to crack Apple iTunes Gift Card codes, which basically means someone can use the code to "buy" (steal, really) music, media and apps from iTunes.

As of now, that means Apple is the one losing out. However, the real profit for the hackers is a bit hard to visualize. They either get free media (no big deal there -- they could get the same stuff much more easily through file-sharing) or they have to sell a cracked code to someone who wants to buy media (who could also use file-sharing). The line to cold hard cash isn't very direct.

Enter the App Store developers. Some iTunes gift code crackers, according to Ars Technica, are attempting to wrangle iPhone app developers into a kickback scam to generate more money from the cracked codes by driving up sales of apps in exchange for 50 percent of the developer's cut. Basically, the hackers/crackers use bogus codes to buy a bunch of a cooperating dev's apps, Apple cuts the developer a check, and the developer then gives the hacker a cut.

"Hopefully no devs will even reply to those emails. It's fencing of stolen goods and money laundering (because taxes are being evaded). Those aren't things you want to be involved in by ANY means," commented mabhatter on the ArsTechnica.com post.

From Laid-Off Seattle Reporter to Accidental Web Entrepreneur

04/10/09 4:00 AM PT

The death of a major daily newspaper in a city like Seattle leaves the public underserved and no small number of journalists underemployed. Kery Murakami aims to help remedy both problems with a new online venture he started after the Post-Intelligencer folded its print edition last month. However, the transition from newsman to businessman is no easy task.

It's been another eventful week in the continuing original drama, "The Death of Journalism As We Knew It."

Our story so far:

• Near the beaches of San Diego, the leadership of the Associated Press drew a line in the sand Monday by announcing at its annual members meeting that it would sic its lawyers on online news aggregators that illegally use its material. It's also going to develop technology that will track its content usage. And although AP chairman Dean Singleton didn't mention its name, Google (Nasdaq: GOOG) apparently was hounded enough in the Guilty Conscience department that it felt compelled to blog about its license to scrape AP content and its ability to help newspapers stay afloat with ad revenue.
• The next day, near those same sunny Southern California beaches, Google CEO Eric Schmidt told the Newspaper Association of America that it is imperative they find a new Web business model that included mobile options -- but please don't give up on those online advertising revenues. Say, did we mention that Google can help you sell those ads and is working on mobile options?
• On that same day in Dallas, reporters, photographers and editors at the Morning News started getting the dreaded human resources calls they were warned about in January as parent company A.H. Belo began implementing personnel cuts. The Metro section was gutted; sports also took a big hit, which can mean only one thing: The Cowboys/Mavericks/Rangers/Stars must be moving en masse to San Antonio. Dmncuts.blogspot.com gave those laid off, and those who remained, a chance to vent.

In their opposing corners of the Web, the usual media analyst suspects digested all this and either wailed about, or hailed the approach of, the Death of Journalism. Tweeps, Facebookers and LinkedIn-ites linked and shared and overshared.

None of this helps Kery Murakami get any closer to his goal: to once again be a working journalist in the city of Seattle.

Unemployed and Working Harder Than Ever

"I'm doing this mostly out of passion and belief for what we do, but also out of desperation, because you go to JournalismJobs.com and you look at the landscape, there are no jobs out there. In the old days, you'd think about selling your soul and going PR, but there are no PR jobs out there. There's nothing out there."

So Murakami, a 20-year-plus journalism veteran who covered city hall for the Seattle Post-Intelligencer right up until the daily newspaper folded in mid-March, is trying to create his next job out of thin air. That's meant working with several of his fellow laid-off colleagues 10 to 12 hours a day, six to seven days a week, transforming himself into journalist-entrepreneur. That's why his words tumble out in a rush during our phone interview late Tuesday night: This guy needs more sleep.

"Part of it is just starting any small business," Murakami says. "The gazillion details, and each and every detail will drive you crazy. The regulatory forms you have to fill out, where to get computers."

Luckily, he and his staff are working with local public broadcasting representatives KCTS-TV and KPLU-FM for what will be Seattlepostglobe.org, a news site which hopes to launch next Tuesday. KCTS is letting Murakami and company work out of their office space free for three months.

"They're looking into grant funding to hire a business consultant to create a business model, and also to look at us as a demonstration project and give us a little bit of operating funding at the outset," Murakami said. "That's the ultimate goal, to create a news site totally operated by all three entities that would share content and resources." Murakami wouldn't have to turn himself into an all-platform, multi-media journalist -- laptop computer in one hand, camcorder in the other. His public broadcasting partners would provide the audio and video content to ensure that everything looks and sounds professional and doesn't turn into amateur hour.

For Murakami, it's about one more choice for Seattle news consumers. "When the Rocky Mountain News closed, the people in Denver were affected by it, but they got no say in it. No one asked the people in Seattle what kind of journalism they wanted here. So that's part of what we're trying to do."

Reporter-Turned-Businessman

Professionals get paid. Murakami is still doing what Bob Woodward and Carl Bernstein did to break open Watergate; he's following the money, but for slightly different reasons.

"We haven't been that successful," Murakami says. "We've met with potential investors and the question they ask is, 'How sustainable is the business plan?' I don't know. It really comes down to what people in Seattle are willing to pay for. I have no marketing studies, and no one I've talked to has any. Without a business consultant, we have no idea what the revenue is going to be."

At this point in our conversation, Murakami's frustrations with the business side of the Digital Age of Journalism rise to the surface. Some are encouraging him to focus on certain segments of the news-consuming population -- political junkies, environmentalists. It's not part of the grand plan: to continue providing general news. "We keep hearing 'niche and differentiation.' If I hear 'niche' one more time I'll scream. Maybe that works from a business standpoint, but from a societal level, it shouldn't matter if your primary concern is the environment or race or immigration or low taxes or whatever. Everybody ought to be concerned about their own issues, but if we just focus on that, then nobody is going to be able to reach out to the general public the way they used to.

"I hope to God folks realize that it's about a community issue. It's not about journalism or a jobs issue. Whatever you care about is affected by this."

"This" refers to the sudden lack of people keeping an eye on what's going on with public officials. "There are tons of aggregators out there, and tons of bloggers, and I don't mean to disparage what they do. They fulfill a goal in the media mosiac that's out there. But no one's out there doing what a city hall reporter does. He goes through city records, sits through hours and hours of incredibly boring meetings looking for that nugget that tuns into an important story. That's just not happening or being done. That bothers the hell out of me. I take what we did very seriously.

"There's one city hall reporter left in Seattle. God only knows what's going to go on when people aren't watching."

Burying the Lead

By the time you read this, Murakami will have taken part in yet one more panel discussion about the future of news in Seattle. The voices heard there will no doubt join the chorus raised, re-Tweeted and linked-to on the Internet by the likes of PressThink's Jay Rosen, BuzzMachine's Jeff Jarvis, authors Clay Shirky and Steven Johnson and media columnists David Carr of The New York Times and Jack Shafer of Slate.com. (Let's see, is that everybody on my media guru name-check list?)

At the end of that discussion -- if nobody shows up with a check or winning lottery ticket -- Murakami will go back to finding a way to get paid for doing what he's wanted to do since second grade: Be a reporter. He's ready for the talk to end and for people -- Seattleites for now -- to start voting with their pocketbooks for the kind of news they've always wanted.

Maybe Dean Singleton and the AP are feeling a similar sense of weariness with reading their profession's obituary over and over again; hence its stand against aggregators, no matter how hollow some may find the threat. It may also explain the recent trial balloons floated by New York Times executive editor Bill Keller regarding a return to paid online content and The Wall Street Journal's decision to offer more exclusive paid content.

Whatever. Just make a decision soon and see what news consumers will pay for. It might help Murakami with his biggest challenge since the P-I layoffs ; getting his unemployed colleagues excited about continuing to practice journalism when they're worrying about the bills.

"For the nine years I worked at the P-I, the small core group of people who worked very hard are having a hard time just getting out of bed to figure out what to do with their lives," Murakami said. "All the things you have to do when you're unemployed. The parents are having really rough conversations with their children. Just trying to get people to do stories when they're overwhelmed is hard

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The first RFC was released in April 1969

Exactly forty years and two days ago, the first RFC (Request For Comments) was released on April 7, 1969. In RFC No. 1, Steve Crocker described the software architecture of the emerging ARPANET. Today, the Arpanet is now what we called the Internet, and has certainly come a long way since.

The Arpanet was actually designed and built mainly to ensure long-term and reliable communications between the Pentagon, the White House and a few universities in case of an attack or a major war launched against the U.S.

The original RFCs were actual contributions to discussions within a "Network Working Group" of manageable size (RFC 2 is a direct answer to RFC 1, and so on and so forth). As the group was still working on the ARPANET setup, the first RFCs were exchanged on paper only.

Over a lenght of time, the RFCs became the standard documents of the ARPANET and of its later successor, the Internet. The network's astronomical growth was reflected in the number of RFCs released. After a phase of intensive discussion during the development of the ARPANET, there was a period of calm in which the network itself required less attention.

But in the late 1970s there was a technological surge, and since the introduction of the TCP/IP protocol, the network and RFCs have developed at the same rate. For example, the 2,555th RFC discussed the first 30 years of RFC history. Almost 3,000 texts have been added in the 10 years since.

In deed, the Internet has grown a lot since, and continues to grow at an exponential rate, global recession or not...

Of course, it's not just the number of RFCs that has increased, but also the length of the individual standards. For example, the definition of the Post Office Protocol (POP3) from 1985 comprises a lean 24 pages of information that any reasonably talented programmer can rapidly implement in servers and clients.