Google has launched a local news service that scans local news items for context and then lists them according to relevance to your city or zip code query at Google News. Testing this today on a few Oregon cities I’ve been impressed with the results as they seem to pull from some obscure but relevant sources and if Google eventually starts using most of the tens of thousands of local newspaper online sites and other sources this could be a superb tool for mashing up news with websites and blogs.
Gas Pumping Robot
Hey there’s a new robot in town (well, if you live in the Netherlands that is) and it’s pumping your gas:
http://blogs.edmunds.com/Straightline/4236
Here’s a Youtube Video of “TankPitStop” in action:
http://youtube.com/watch?v=7gPqDGrHQoM
The moral of the story is that we will be replaced by robots and computers, and this is all a good thing.
Web 2.0 Conference
WebGuild of Silicon Valley sponsored a great one day conference last week. I missed the event but here are some pictures courtesy of Reshma Kumar and Daya Baran, the Vice President and President of WebGuild who have really done an extraordinary job making that group one of the premier internet insider gatherings in the world.
This year Craig Newmark from Craigslist gave one of the keynotes. He’s one of the most interesting folks in the internet landscape and it would really have been fun to hear his talk. For me, the huge success of Craigslist, combined with the simple and spartan look and structure, supports the idea that the internet at a core level is about *people and information* more than anything else.
Split Up Yahoo?
Fred Wilson’s a sharp guy and his Yahoo plan is basically to outsource search to Google and dismantle the place into Yahoo’s many valuable components like the stake in Alibaba. I’m intrigued by this creative proposal though I can’t see Yahoo doing many of these things.
Probably the big unknown in the big Microsoft+Yahoo equation is whether Yahoo will be willing to concede the search battle and use Google search and Google monetization. In the short term this would bring more profit to Yahoo, but long term effects are not clear since they’d be effectively a prisoner to Google who would control a key function of Yahoo’s business. However Yang and the Yahoo board would likely see this as a superior situation to ownership by Microsoft. Google’s stock has been dropping severely but they could still sweeten the pot with other helps, so I’ll be watching for better offers from Microsoft and counters from Google in the coming weeks.
disclosure: long on Yahoo
The proposed US Defense Budget is an outrage
As a fiscally responsible guy I had to chime in on the proposed US Defense budget which is, in a word, indefensible.
At $515,000,000,000 this amount is conspicuous for several reasons, and I find it incomprehensible that people who call themselves fiscal conservatives continue to support the insane levels of inappropriate military spending.
One of the biggest reasons the proposed budget is irrational is the very low ROI on military spending. Unlike infrastructure spending, the military spend does not leave you with more bridges, roads, and buildings. It’s only justifiable to the extent it *protects value* and protects the national interests. One need look no further than the Iraq war to see how questionable it is to suggest that spending 500 billion plus there has “protected” much of anything.
One could probably make a strong case for the WWII military effort as it clearly rescued much of the world from the tyrannical grip of Nazi domination, but note that this spending came *after* the hostile actions. I think GW would argue that spending now is a preventative measure for much greater spending later if regions like the middle east explode into much greater instability than now. This is an arguable point, but I’d like to see his ROI calculations on this. When you are talking about spending hundreds of billions annually you can reshape the entire planet with infrastructure improvements, and it is very hard to see how the military protection advantages would trump the tax, infrastructure, and good will advantages of redirecting military spending to other things or – probably more appropriately – lowering taxes and letting that help the economy and individuals.
I’d sure like to see the type of cost benefit analysis you’d do if the US was run more like a business than a bureaucratic empire, but one of the defects of our two party democracy is that neither party is interested in fiscal responsibility – they both want to spend irresponsibly and recklessly but on different things.
This amount is more than all other nations combined, and more than half the entire global military budget. It is true the US has historically born much of the expense of trying to maintain global stability (for complex reasons), so simply noting this is half all defense spending does not explain enough. However this amount still is highly questionable because many nations like Japan should be footing their own defense bills.
Note that this budget does not include funding for Iraq and Afghanistan wars. Much will go for bloated, advanced weapons systems that have little place in a world where most of the threats are from asymetric warfare practiced by fundamentalists with 12th century sensibilities.
It is about time for people who call themselves fiscal conservatives to stop their sheep-like, bleeting support of these huge military budgets and start applying the same (correct) standards they apply to other government spending to the defense budget.
Yahoo and Google BFF?
Reuters reports that Yahoo really wants to find a way out of the MS deal, and Google is offering *something* though it’s not at all clear to any outsiders what that something is. Probably a partnership to help Yahoo monetize all their traffic using Google tools and perhaps Google search, though I’m somewhat skeptical that Yahoo can come away from this with a valuation boost near the value of what MS has offered.
If Microsoft is smart they’ll let Yahoo be Yahoo, with contractual assurances that Yahoo can keep on innovating and doing what they have done well for some time in the overall internet and Web 2.0 space. They’ll let Yahoo retain their brand and culture, and basically keep things the way they have been minus the crappy monetization. In turn Yahoo will have a few years – with the newfound clout and help of MS – to turn around the crappy monetization, bad morale, and loss of search share.
disclosure: Got the Yahoo Stocks. Loving the Yahoo stocks.
Google to the YahooRescue?
Google’s concerned that Microsoft could poison Yahoo and make it less open, a state of affairs Google feels created both Yahoo and Google. I’m sympathetic to some degree to their points, though I think Google has more than enough internet opacity in their critical search ranking practices to make me skeptical of all the whining about how Microsoft won’t play fair and keep things “open”.
Google has been more open than most, but far less responsive to ranking problems and search issues than they should be. To the extent MS + Yahoo brings more competition to the space it might help Google see the light and practice more of what they preach about transparency. Just a quick example of the lack of transparency – Google does not share with publishers the “revenue share” percentage for your own site. This would be a totally unacceptable practice offline, but in Google land it’s just another example of the power of a virtual monopoly on search monetization.
Meanwhile, Henry Blodget has some great advice for Yang and Balmer, but it’s clear to me that neither party will view things this broadly. I think there is only small difference in the IT worldview of management at Yahoo and Google, but a world of difference with MS. As a shareholder I’m loving the Google overture to Yahoo which should boost the share price even more. This is a fascinating situation because Google has been happy to watch Yahoo whither on the search vine. Now Google needs to consider a powerful partnership as a defensive attack on the Microsoft search potential after an aquisition. I think this in part relates to a key factor that is underreported: Yahoo’s search quality is now comparable to Google’s according to many objective measures.
Yahoo’s “response” to Microsoft
Wow, talk about saying nothing. Yahoo’s official public response to MS is a blunt “we’ll consider it”. Given that the offer was so high above Yahoo’s share price, especially after the earnings call meltdown on Tuesday, I’d hate to face shareholders after rejecting this offer which would likely send the stock down. I just can’t see Yahoo refusing this in light of lackluster performance over the past few years and a questionable future.
The word in tech land seems to be that Jerry Yang really does not want to sell to Microsoft. Understandably Yang probably wants more time at the helm to try to turn Yahoo around the good old fashioned way: Hard work. But I don’t think he’ll win this one. C’mon Jerry – your net worth just went up what, a billion dollars on the Microsoft offer? That’s got to be good for something.
Dis Closure: I got the Yahoo Stox. I wants them to go up.
Microsoft and Yahoo
I’m still digesting all the Yahoo Microsoft commentary but it seems to shake out as tech folks thinking it will not work and investment folks loving the deal. Hmmm – the comments seemed favorable, but Microsoft lost a huge chunk of value in stock trading so clearly the “market” is skeptical of this.
One of the things I’ve noted in Silicon Valley is how popular Google has become and how poorly regarded Yahoo and Microsoft have been with respect to internet stuff, though part of this may be that I’m involved with mostly search related online events and conferences and Google clearly rules that roost. I think the Google success and mystique has probably kept tech folks from focusing on the huge potential of a combined MS / Yahoo empire. Where both Google and Yahoo have succeeded in capturing online traffic Microsoft has conspicuously failed. Yet Microsoft has continued to pull very expensive enterprise computing rabbits out of its hat, with even the most recent earnings reports suggesting they still are a dominant and profitable force in the software market. What better way to smooth the transition from old to new than to buy Yahoo? Pitfalls? Sure, but the cultural differences will be happily overlooked by Yahoo employees hungry to see their stock pulled out of the sewer. If Microsoft is smart they won’t merge the brands – rather inject life and some cash into the flailing Yahoo search and affiliate system. Microsoft could strongarm online affiliate publishers in a way Yahoo could not – by essentially bribing them to move over from Google via 100% revenue sharing. The extra total traffic and buzz would be well worth the sacrifice of some of the publishing money.
As a Yahoo stock holder I’m obviously happy to see the offering price pull the stock up, and positive attention focused on this deal, but I also think it’s a good ideas for the reasons I’ve discussed over the past year. Most notably MS internet failures, Yahoo’s internet successes in Web 2.0, and the huge combined traffic footprint of a combo-company.
Henry Blodget, who helped me in an oblique way with his rumor that pushed me to buy more Yahoo on Tuesday, now is reporting that there may be other parties interested in Yahoo. This would make sense given the companies clear potential to be as successful as Google while it languishes at a Market capitalization of about 20% of Google. I’ve never understood the huge pessimism about the company – clearly the “number two” online behemoth. We’ve got dozens of major automakers, oil companies, etc. Why is there an assumption that only Google can succeed online?
Disclosure: I’ve got Yahoo, and finally don’t have to say that hanging my head in shame.
Israel Web Tour coming to Silicon Valley
Following is a Press Release – this looks like a very interesting event for Silicon Valley:
IsraelWebTour Returns to Silicon Valley with 15 Hot Web Startups
California Israel Chamber of Commerce Announces 15 Israel-based Companies to Tour Silicon Valley
SAN FRANCISCO January 16, 2008 The California Israel Chamber of Commerce (CICC) has announced the selection of 15 startups that will be touring Silicon Valley as part of its popular road show.
The Tour will kick off on February 4th, 2008 when CEOs from Israel’s most exciting startups arrive in Silicon Valley for a week of activities. The companies will meet with investors, strategic partners, customers, entrepreneurs and industry leaders in a mix of private one-on-one meetings, roundtable discussions and ad-hoc networking events. The highlight of the week will be a public showcase on Wednesday, February 6h hosted at Microsoft where each start-up will present to the industry and press. The tour will end with a closing night party in San Francisco on February 7th.
Over 90 companies applied to take part in this year s tour. The IsraelWebTour Committee selected the following 15 startups:
5min – www.5min.com
PLYmedia – www.plymedia.com
AllofMe – www.allofme.com
NuConomy – www.nuconomy.com
ClickTale – www.clicktale.com
blogTV.com – www.blogtv.com
Sportingo – www.sportingo.com
PicScout – www.picscout.com
Qoof – www.qoof.com
8hands – www.8hands.com
Velingo – www.velingo.com
Erayo – www.erayo.com
Semingo – www.semingo.com
PageOnce – www.pageonce.com
Journeys – www.codename-journeys.com
The IsraelWebTour is an initiative spearheaded by the CICC (The California Israel Chamber of Commerce) – a non-governmental, industry supported organization. The 2008 Tour is sponsored by: Google, Yahoo, Adobe, Sun Microsystems, Microsoft, Lehman Brothers, USVP, Wilson Sonsini Goodrich and Rosatti, Elron and Gemini Israel Funds and the Israeli Consulate in San Francisco.
The IsraelWebTour is proven to be an excellent platform to present and accelerate emerging internet start-ups from Israel — offering hands-on tools, strategies and fast- track access to Silicon Valley s leading VCs, companies and industry influencers, said Shuly Galili, Executive Director, CICC.
About California Israel Chamber of Commerce
The California Israel Chamber of Commerce (CICC) is a not-for-profit, non-governmental membership supported organization dedicated to strengthening business and economic relations between California and Israel. With its wide and dynamic network of over 5,000 companies, business executives and investors, CICC is positioned to serve as a facilitator and active supporter for joint ventures between the two communities. Through its programs and activities CICC supports hundreds of Israeli entrepreneurs through their journey to grow, fund and advance their startup companies. www.ca-israelchamber.org