November 2006

Reed Hastings on Success

by Andy Brudtkuhl on November 29, 2006

Business 2.0′s recent publication featured a section called ‘How to Succeed in 2007‘ which contained insights from some of the smartest people out there today. I haven’t got through all 50 but one of them so far has stuck out and will hopefully stick with me for some time.

Reed Hastings, CEO of Netflix

“Truly brilliant marketing happens when you take something most people think of as a weakness and reposition it so people think of it as a strength. [...] Most people always try to fix the product, which is a good thing. But brilliant marketing is taking the product you have and figuring out the right positioning.”

Read the full excerpt here.

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Living Uninstalled

by Andy Brudtkuhl on November 29, 2006

As you may know one of my technological passions is Software as a Service (SaaS). I’ve written about it a lot and have deciphered the differences between commonly interchnaged terms like Service Oriented Architecture (SOA) and Web 2.0.

I read numerous blogs (listed at bottom) about SaaS at all levels of business and consumer services. It’s the future – applications agnostic of your desktop platform.

So, when Jonas started dropping comments on some of my SaaS articles I wandered over to his blog to see what it was all about. I saw his tagline and I was hooked – “I want to uninstall all applications from my desktop and only use tools on the web. Call it web 2.0, webapplications or apps on tap. This is my story…”. I love this idea. So, I tapped him for a Q&A. Here goes…

Q&A with Jonas of My Uninstalled Life

What got first got you interested in Web Services?

Well, there are three reasons mainly.

1. I was working as a system consultant for one of the biggest companies in Sweden with 20.000+ employees spread over 100+ locations all over Europe and they had a huge problem with deploying their locally installed applications. They started to use “Terminal Services” to access applications installed on centrally deployed servers. But it was huge amount of work to get it to work, cost massive amount of money in time and licensing.

2. I supported all my realtives computer problems and they often broke their locally installed applications.

3. I travel a lot and I often miss “my local stuff” – apps, data and so on.

Why not simply just put it on the web – always accessible and no problems with locally installed apps.

What made you decide to make ‘the big switch’ to a web services based environment?

When I saw the potential and realized that I always had access to “my local stuff” – even from my mobile phone. I started with e-mail, my bookmarks, my RSS feeds and so on… Then I decided to start the blog “My Uninstalled Life” – www.myuninstalledlife.com where I want it to take it to the extremes. I more or less want a small “thin client” on my desk and keep everything else somewhere else (apps, my documents and files etc). I also challenge the market where I more or less ask for “impossible” stuff. For example, I do some video editing and I want an online application to do this for my – not a locally installed ones.

What are your top 5 web services?

To keep my knowledge up to the market, I use many different services. There are many large competitors that offer a “suite” with many apps that are “ok” but I try to get the best from each category – and it can changes in an instant, next month my top 5 could look completely different. Keep on visiting My Uninstalled Life for updates.

Google Apps for your Domain – I run a small company besides my work. Excellent online e-mail and calendar

EditGrid – Excel replacement that’s far ahead of all competitors

Zoho Writer – Word replacement

Windows Live – My personal startup page where I monitor RSS feeds and add gadgets

Technorati/Digg – Excellent tools to find blogs that inspires my own blog

How far along are you in replacing your desktop software?

I still have a few apps installed on my desktop – the ones I haven’t found replacement for yet. What I’m trying to do now is to find some small “hardware appliance” that runs nothing else than a webbrowser and just use my local desktop when I need to. I also tried to put all my 100s of gigabytes of data at an online storage provider but unfortunately – it didn’t work very well. I ran into technical difficulties and my 24/1 Mbit connection is simply not fast enough for upstream yet. So I decided to build a “NAS-box” with 1 TB of disk and since I wanted to keep it as “uninstalled” and simple as possible, I simply boot up FreeNAS from a USB-key instead. With this solution, I don’t have to manage updates of the OS – just a massive storage device where I keep my files. Also I’ve “uninstalled” my HTPC and now running my XBOX with XBOX Media Center. No need to manage the OS anymore and I just stream movies and music from my NAS-box.

Have you found any applications you can’t possibly replace?

Still, I can’t burn my CDs with an webapp. Also, apps that require quite much resources from your compuater are hard to find, such as GIMP (image editing such as Photoshop), VirtualDub (video editing such as Adobe Premiere).

How long do you think it will take for this Software as a Services model to break into the enterprise? small business? home office?

Home Office – I would say it’s already there. Or I’d rather say – it could be there. I would say most of the homeusers wouldn’t need more than what the web apps offer when it comes to features. It’s just a matter of time before the knowledge of web apps is transferred from the highly technical people to the general public.

Small Business – I would say the same as home office but there needs to be a better guarantee it works. It’s totally unacceptable that a complete business would be stranded just because there’s a problem at an online service provider that hosts their word application are having problems

Enterprise – I think it still takes a few years. I’ve seen many companies moving from locally installed apps to web apps but I think they will keep it in-house just for security and also they want to manage it themselves. It’s hard to guarantee the Service Level Agreement otherwise. But I’m sure we’ll see the possibility to buy a “Google Docs server” for the enterprise and let internal users use it instead of the public ones. They already sell the Google Search Engine as an appliance.

What do you think are the advantages / disadvantages to this model?

Advantages is cost and simplicity. Companies offer web apps could probably have a much lower price than companies that sell CDs in boxes. For enterprise there could be massive savings by simply putting a link on their intranet to the applications than installing them on locally on all clients or publishing them in an Terminal Services farm. Disadvantages could be the amount of features. Most online apps are a little bit behind when it comes to features – so you probably still need some users that need locally installed ones – at least until the web apps catches up ;)

What do you think of Phil Wainewright’s post called ‘Why Office 2.0 Will Never Go Online‘?

He’s completely right. They have to solve the “offline issue” – not just because “network glitches” but there are some places you simply can’t connect. But he focus on TODAY – I focus on tomorrow. 10 years ago, I usually couldn’t get an Internet connection to my house without paying a fortune. And people couldn’t dream of an Internet connection on an airplane or on the train – now you can. And in 20 years I think Internet will evolve and you see it as obvious as you see electricity, TV, phone… It will simply “work”. But yes – offline access has to work aswell. But why shouldn’t this be possible – there’s a “Work Offline” choice in Firefox. Why wouldn’t it work with complicated apps like Google Calendar, GMail and EditGrid? All changes is stored locally until you connect again and all changes are synchronized – just as with your local Outlook client today. I don’t care if it needs to download 100 MBs just to get it to work. Scrybe is one application going this way – be sure to check it out once released.

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I want to thank Jonas for taking time in answering my questions. Keep up the great work.

Want more on SaaS?

Enterprise Web 2.0
Service Oriented Architecture
Software as Services

 

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Des Moines and Viral Marketing

by Andy Brudtkuhl on November 28, 2006

I hate ‘buzz’. You may have read many posts from me about how much I dread reading about buzzworthy topics and what not. I consider myself on the cusp of early adoption of information, especially being in Iowa.

The biggest problem with buzz is that often times people run with and idea or concept without really understanding how to facilitate it and the effects of implementation. Exhibit 1: Viral Marketing. I imagine that if you are a reader of GANB you are well aware of viral marketing.

I know its been written about a hundred times and often gets bundled with Web Marketing. And we all know that just saying you have something viral does not mean you do. Advertising on the web is not guaranteed to spread word of mouth. That works about as good as a billboard.

Yes, Yes you’ve heard this all before and I’m preaching to the choir. But here in Iowa (as I’ve stated before – 3 years behind) marketers are just finding out about this. It’s big news for the Des Moines Register (who I have my beefs with and will address here). The front page of the business section of the DM Register today touts a local campaign to raise awareness for Des Moines in an article entitled, “Campaign channels Web buzz to tout D.M.“. It seems as though they have taken this concept and run without really understanding what it takes to make it work.

In this article writer Donnelle Eller discusses the local Greater Des Moines Partnership’s new advertising campaign, ‘Do More‘ announced yesterday. According to Donnelle the campaign is based on two ‘buzz’ ideas: crowdsourcing and viral advertising.

Donnelle points out that, “If the Greater Des Moines Partnership’s advertising blitz is successful, residents will be doing all the work for the central Iowa business group.” What’s that? Crowdsourcing. Let your community create content and awareness.

She also points out, “‘Viral advertising’ is a big piece of the group’s new $300,000 marketing plan – called ‘Des Moines. Do More’ – and it depends on fun-loving, computer-savvy folks to spread the word.”

According to the Des Moines Partnership’s website, the campaign will consist of the following viral elements: posters, notecards, ‘viral videos’, sticker books, wearables, e-cards, etc.

I have several qualms with this entire scenario. First of all the DM Register article was light and fluffy with no analysis or insight to the arena of web advertising, buzz/viral marketing, or ‘viral videos’ (again, more on this later). But that’s come to be expected from the DM Register.

If the viral nature and tech savvy crowd is going to carry this crowd why is this first someone like myself has heard about this? Like I said, when it comes to being on the edge here in Iowa there are few as close as me, including Mike (among others) who hasn’t mentioned this either. Why wouldn’t the DM Register or the DM Partnership reach out to local bloggers – those of us who are supposed to carry this ‘viral’ message.

In fact, the only buzz in the local Des Moines blogosphrere about this subject comes from a DM Register blogger who said nothing but regurgitate what was in the article. The ‘viral videos’ have yet to show up in any video distribution network (ie YouTube, Google Video, etc). The Des Moines Register cannot be your sole word of mouth on this.

This is definitely a beef I have with Des Moines (especially after returning from Seattle). Let’s catch up here folks. There are several people on the edge that you can tap. Can we at least try to get up to only being two years behind?

And I’m always free for some consulting :)

Another thing to note that’s humorous (not so much haha funny). I would bet that Donnelle and the DM Register will never know I wrote this, nor will participants in the Greater Des Moines Partnership. Ironic? Yes.

Apparently they cannot eat their own dogfood.

 

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ChangeThis – The Bootstrapper’s Bible

by Andy Brudtkuhl on November 28, 2006

If you haven’t got into ChangeThis yet, I think you should. It’s an almagamation of ‘arguments’ formed into ‘manifestos’.

From their site:

ChangeThis doesn’t publish e-books or manuscripts or manuals. Instead, we facilitate the spread of thoughtful arguments…arguments we call manifestos.

A manifesto is a five-, ten- or twenty-page PDF file that makes a case. It outlines in careful, thoughtful language why you might want to think about an issue di?erently.

If we strike a chord, the manifesto will spread. You can email the manifesto to anyone you like, you can even post it on your website or print it out. A great manifesto says something you’ve wanted to say for a while, but does it eloquently and simply and saves you the trouble of writing it yourself.

Read it and pass it on.

I love this idea and I’ve been a subscriber to this site for sometime. You can read more on their manifesto here.

The reason I’ve finally succumbed to writing about this great resource is they recently released a Seth Godin manifesto / book entitle The Bootstrapper’s Bible, which I have read before and is excellent.

I thought I’d share… It’s only available until the end of December. Get It Now!

 

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Are Choices Bad?

by Andy Brudtkuhl on November 22, 2006

I recently read an article from Joel Spolsky called, “Choices = Headaches“, where he claims the more choices the user has the less usable the software is. At the heart of his argument is this: the more choices a user has, the more confused they get. Essentially for each choice added, the likelihood of each choice given being used is lessened.

I love this idea and you can see it perpetuated in the best and most popular applications and services on the web. Web Services like Flickr, YouTube, Craigslist, Google, etc were built on this idea. That’s why ‘Less is More’ has become an important mantra for a lot of niche startups. In many senses it is more – it creates more value and user experiences are more efficient.

Joel discusses the notion that most software shops and any industry really – be it retail or consulting – believe that a plethora of options is beneficial to the customer. Joel, and I, disagree. He notes,

“This highlights a style of software design shared by Microsoft and the open source movement, in both cases driven by a desire for consensus and for “Making Everybody Happy,” but it’s based on the misconceived notion that lots of choices make people happy, which we really need to rethink.”

Futhermore it is noticeable in other places, like hardware – the iPod’s success is derived from simplicity. Apple in general provides minimalistic and simplified hardware which is a big factor in their success in the last five years.

Can this be used outside technology? It sure can! Joel is right – this does need rethought throughout many business areas. The reason this idea is often implemented, I think, is twofold.

First marketers love the Goldilocks theory. Consumers don’t want the low-end (cold porridge) and they don’t want the high-end (hot porridge). Most of the time they will settle for the middle (warm porridge). This has become a basis of price versioning for years and the medium size is priced at a point where the most money is made on the margin. This is great psychological marketing. McDonald’s does it; Starbucks does; everyone does it.

Secondly, and worse, marketers take it too far to the point they decide – if we provide more choices than our competitor, the customer will choose us. This has been a haunting problem for Microsoft over the years and its beginning to catch up to them. The learning curve for, say, Microsoft Office is far more than that for Google Docs.

The 80/20 rule can be applied to much more than the software industry. It should be taught to marketers, designers, salespersons, and all businesspeople.

Eighty Percent of your customers will use Twenty Percent of your offerings. 80% want the same cell phone package. 80% of your visitors read only two of the ten sections of your website. 80% of your customers order the Tacos Supreme. So why waste everyone’s time with the extra sixty percent?

Sometimes limited choices is beneifical, especially in software, but applicable in many areas. Does your company provide too many choices? Sometimes it’s better for both parties to focus if less choices are provided. Maybe you should consolidate some of your pricing plans… Maybe you should remove a few features from your software… Maybe you should rethink your next website redesign…

Is Less More? I think so. Do you?

 

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