Domain: zdnet.com
Stories and comments across the archive that link to zdnet.com.
Stories · 2,686
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Office Tools On The Web
ReadWriteWeb writes "What will be the primary elements of an Office Suite for the Web be? Who among the big or small companies is currently providing the best examples? ZDNet's Richard MacManus reviews the contenders for collaborative Web Office tools. Some of these products may well be acquisition targets this year for Microsoft and Google, as it is anticipated that both companies will release fully functional Web Office Suites sometime in the next few years." -
VisiCalc Creator Developing WikiCalc
An anonymous reader writes "ZDNet has an article about a new wiki that is trying to combine the collaboration of wiki technology and the data manipulation attributes of a spreadsheet. The creator of VisiCalc, Dan Bricklin, is working on an alpha version of WikiCalc for sometime late in February." From the article: "'It holds a lot of promise, both because it's using the spreadsheet metaphor, which is the one thing people know for working with quantitative information and because 'there's nobody better in the world to build this thing,' said Ross Mayfield, CEO of collaboration software maker SocialText. To Mayfield, WikiCalc is the answer to a problem that has been percolating for some time in the world of IT. That is, he said, that spreadsheets have traditionally been a single-user application screaming for functionality that could let multiple people edit data quickly and easily. " -
Online Ajax Pages The New Web Desktop?
SphereOfInfluence writes "With our existing models for operating environments aging badly, how do we manage our information and software as we get increasingly mobile and short on attention? In a ZDNet piece, Dion Hinchcliffe discusses the rise of the new dynamic, online, roaming Ajax desktops like Netvibes, Live.com, Protopage, and Pageflakes. Will concerns about privacy and reliability kill these or is this the wave of the future?" -
Online Ajax Pages The New Web Desktop?
SphereOfInfluence writes "With our existing models for operating environments aging badly, how do we manage our information and software as we get increasingly mobile and short on attention? In a ZDNet piece, Dion Hinchcliffe discusses the rise of the new dynamic, online, roaming Ajax desktops like Netvibes, Live.com, Protopage, and Pageflakes. Will concerns about privacy and reliability kill these or is this the wave of the future?" -
Advertisers May Face Ridicule For Adware
An anonymous reader writes "A ZDNet article reports that the FTC may be gearing up to humiliate companies that advertise via adware." From the article: "The FTC would publicly announce and publish the name of a company that advertises using adware that installs itself surreptitiously on consumer PCs or using spyware, Leibowitz said. He would recommend publicly shaming advertisers to the other FTC commissioners if the adware problem doesn't decrease, he said." -
Player-Made Content Is The Future
ZDNet reports from The Entertainment Gathering conference last week, giving out some perspective on the future of games as it's seen by Will Wright and J. Allard. From their points of view, player-made content will be king in the coming years. With the expense of making games primarily due to the cost of content, allowing players to build the game they want to play will be popular ... both with designers and players. From the article: "Players' eagerness to go beyond the conventional boundaries has been seen in almost every online game. In the first major massively multiplayer game, Ultima Online, developers saw their swords-and-sorcery stories expanded by players who opened taverns to host online friends and create theater groups to perform 'A Christmas Carol' inside the game. That behavior helps create new content for the game and gives players a stake in the game to keep their interest piqued longer--a critical thing for online games in which players pay a subscription fee every month. " -
Cell Tracking on the Rise
An anonymous reader writes "ZDNet is reporting that with the recent advances in cell phone tracking tech more and more companies are using it to keep track of their employee's movements. From the article: 'The gains, say the converted, are many, ranging from knowing whether workers have been "held up" in the pub rather than in a traffic jam, to being able to quickly locate staff and reroute them if necessary. Not everybody is happy about being monitored, however, and civil rights group Liberty says the growth of tracking raises data privacy concerns.'" -
Search Engine Privacy Explained
Kesch writes "Zdnet has a posted a FAQ describing the storage of personal information done by the search engines of AOL, MSN, Yahoo, and, of course, Google. They describe what information is stored, how it is stored, what laws protect it (none), how you can attempt to protect your privacy, and what Congress is doing with regards to the issue." -
Kama Sutra Worm Hits Softly
An anonymous reader writes "Despite warnings of the danger posed by the Kama Sutra worm, ZDNet is reporting that things haven't been nearly as bad as expected." From the article: "There have been 'no reports of any (Kama Sutra) detonations so far. Also, the virus seems to be dropping in e-mail prevalence. It was down to second place yesterday, according to our monitoring stations, and slid again into third place today,' Paul Ducklin, head of technology at Sophos Asia-Pacific, told ZDNet Australia. The worm's ranking was overtaken by MyDoom and Netsky variants, which have been around for a number of years. " -
IE7 Bug Reports Flooding In
the JoshMeister writes "According to ZDNet, bug reports are already flooding in for Microsoft's new Internet Explorer 7 Beta 2 Preview. Specific issues include the possibility of arbitrary code execution as well as incompatibilities with McAfee Security Center, anti-spyware programs, and online banking sites." From the article: "... browser testers may already be at risk, according to security researcher Tom Ferris. Late Tuesday, Ferris released details of a potential security flaw in IE 7. An attacker could exploit the flaw by crafting a special Web page that could be used to crash the browser or gain complete control of a vulnerable system, Ferris said in an advisory on his Web site. Microsoft had no immediate comment on Ferris' alert." -
IBM Sets DB2 Database Free (Beer)
Anonymous Coward writes to tell us that in the hopes of winning more developer interest, IBM has released a free version of their DB2 database. From the article: "DB Express-C is the same database as IBM's commercial offerings but the company places limits on what kind of hardware it can run on. It can be deployed on systems with two processor cores or up to two dual-core chips on Advanced Micro Devices- or Intel-based servers. The memory limit is 4GB but there are no limits on the size of database or number of users. " -
Mozilla Severs Netscape News Legacy
Juha-Matti Laurio writes "After years of official separation, Mozilla is just now shaking off some of the last vestiges of its parental association with Netscape. From the article: 'Mozilla's Usenet public newsgroups have been moved from netscape.public.mozilla.* to just mozilla.*. The renaming officially ends Mozilla's public Netscape news legacy after more than 8 years of active use. Most of the approximately 63 different newsgroups that began with the old moniker have now been officially abandoned.' Related: Earlier this week Netscape Communications released version 8.1 of its Netscape Browser." -
Cooking Dinner From the Road
Roland Piquepaille writes "After 12 years of development and with the help of NASA's Embedded Web Technology software, the TMIO company is delivering its first smart ovens. You can monitor these refrigerator-ovens from any Internet connection. For example, you can adjust and control the oven settings from your cell phone and be sure that dinner is ready when you get home. But cooking from your office or your car won't come cheap: these ovens carry a price tag of $8,699. Right now, they're only available in North America, but I bet there soon will be distributors in other parts of the world. Read more for additional details about these smart ovens." -
Google Execs Happy With $1 Salaries
DarkClown writes "ZDNet is on the one hand reporting that Google execs will keep their $1 salaries again this year, and on the other hand is reporting that the executives cashed in more than $160 million worth of stock last month." From the stock article: "Since the search giant went public in August 2004, Brin has sold about 6.5 million shares at a market value of $1.68 billion. Page has sold about 5.8 million shares at a market value of $1.4 billion, according to calculations from Thomson Financial. Chief Executive Eric Schmidt, who was brought in to run the company before it went public, has sold more than 2.1 million shares, worth more than $502 million." They could be getting a multi-million dollar salary *and* the stock money. Good faith efforts go a long way in my book. -
Google Execs Happy With $1 Salaries
DarkClown writes "ZDNet is on the one hand reporting that Google execs will keep their $1 salaries again this year, and on the other hand is reporting that the executives cashed in more than $160 million worth of stock last month." From the stock article: "Since the search giant went public in August 2004, Brin has sold about 6.5 million shares at a market value of $1.68 billion. Page has sold about 5.8 million shares at a market value of $1.4 billion, according to calculations from Thomson Financial. Chief Executive Eric Schmidt, who was brought in to run the company before it went public, has sold more than 2.1 million shares, worth more than $502 million." They could be getting a multi-million dollar salary *and* the stock money. Good faith efforts go a long way in my book. -
Feds Asked to Take Action Against Adware Creator
An anonymous reader writes "CNet is reporting that a consumer watchdog group has asked the Federal Trade Commission to take action against 180solutions and CJB.net for unfair and deceptive business practices. The Center for Democracy and Technology submitted over 150 pages of examples of 180s bad practices." From the article: "180Solutions deliberately and repeatedly duped Internet users into downloading intrusive advertising software, according to a Center for Democracy and Technology complaint (download PDF). The company continued these practices even after it pledged to better itself and after receiving warnings from spyware experts and privacy advocates, the group said." -
A 'salty' source of coherent light
Roland Piquepaille writes "Coherent light is produced by a beam of photons that all have the same frequency and are all at the same phase. And today lasers are the only form of technology that we know able to create such light. But by sending shock waves inside a humble crystalline material -- kitchen salt -- researchers from Lawrence Livermore National Laboratory (LLNL) have found a new way to produce coherent light for the first time in 50 years -- at least in the terahertz frequency range. This could lead to applications in optical communications, quantum computing or shock diagnostics. Read more for additional details and references about this discovery." -
Tension Between Record Labels And Digital Radio
An anonymous reader writes "Now that digtial radio devices are allowing recording of shows, you knew it wouldn't be long before music executives started raising a fuss. They're worried that users will prefer to record the high-quality audio (for free) to buying a download or CD." From the article: "For now, the Recording Industry Association of America is in negotiations with satellite radio companies and is opening discussions with radio broadcasters over specific products. But over the long term, the music industry says, Congress should find a way to regulate these new digital radio networks so labels can get paid when consumers keep copies of songs, as is the case with iTunes." -
E-Passport System Test This Week
An anonymous reader writes "ZDNet has a story covering another Homeland Security test of the E-Passport system, a biometric program designed to stop counterfeit identification." From the article: "The passports contain biometric information such as a digital photo, as well as biographic information. The technology being tested promises to read and verify the electronic data when those carrying the e-passports attempt entry into the countries via participating airports. U.S. diplomats, Australian and New Zealand citizens and Singapore Airlines officials are among those who have been issued the e-passports. These people will also undergo normal screening procedures at the international airports." -
Should Apple make .Mac free?
Moby Cock writes "The recent display of iLife '06 at Macworld showed that the suite has a very fine integration with .Mac, Apple's subscription-based web portal. In a recent post to his blog on ZDNet, Dan Farber argues that a .Mac subscription ought to be included with the purchase of an Apple computer. There is no doubt that web portals are huge revenue engines, could Apple be missing an opportunity here?" -
Instant-Messaging Attacks On the Rise
Ant writes "CNET News.com and ZDNet News report that security attacks over instant-messaging (IM) networks became more prevalent in 2005, according to a new study. MSN experienced the largest number of IM security incidents in both 2004 and 2005, while year-on-year incident growth rates were largest on AIM." -
Google Unveils The Google Pack
7hunderstruck writes "Google yesterday announced the release of Google Pack, a 'free collection of essential software'. Along with Google's own programs, such as Google Toolbar and Google Earth, Google Pack contains Firefox, Adobe Reader, a six month subscription to Norton Antivirus, and Trillian as well as other apps. Any respectable /. user should have most of this suite installed already (excluding a few things), but it will be nice to make it all widely available to the general public." Commentary on ZDNet. -
WINE Still Vulnerable to WMF Exploit
blast3r wrote to mention a ZDNet Blog posting by George Ou, stating that WINE is still vulnerable to the WMF flaw. From the article: "All applications launched inside Wine, Cedega, or Cross-Over Office are technically still exploitable. Wine runs on most x86 platforms, including Linux and the various BSDs. The surprising part about finding this flaw in Wine is that they implemented the entire Meta File API without realizing that this could be a security issue. Exploiting a Windows application running inside Wine depends on that application calling the vulnerable function with malicious data." -
The Odds at Macworld
Moby Cock writes "Jason O'Grady has posted the odds on what is to be announced at the Macworld Expo beginning next week. Coming in at 100:1 is OS X 10.5 and even money on a new and sexy Intel Mac Minis and iBooks. Gentlemen, start your credit cards." -
Is This Rembrandt a Real One?
Roland Piquepaille writes "About a year ago, I told you about how computer scientists from Dartmouth college were investigating digital images. But they're also interested in old paintings authentication, as reports Wired Magazine in The Rembrandt Code. Mathematicians are using high-resolution digital cameras and computers to examine old paintings and evaluate their authenticity. Even the New York's Metropolitan Museum of Art is asking them to discover which of the 42 paintings it owns and that were once believed to be Rembrandts are really authentic. The Wired article is pretty entertaining, but this overview contains more details, pictures and references about this authentication process." -
Santa Shopped Online This Year
An anonymous reader writes "ZDNet is reporting on another blockbuster year for online shopping. Online shopping was up almost 30 percent over last year." From the article: " Clothing was the top seller in terms of dollar amount, at $5.3 billion total, up 42 percent from last year's revenue, the report said. Computer hardware and peripherals showed the most growth, 126 percent, at $4.8 billion. Consumer electronics was the second fastest growing category, garnering $4.8 billion, up 109 percent. People spent $3 billion on books online, up 66 percent, and $2.3 billion on products in the toys/video games category of hardware and software, a drop of 9 percent from last year, the study found. " -
Biotech Data Mining
Roland Piquepaille writes "In the last ten years, biotech companies have been busy accumulating mountains of data. And it's becoming more and more difficult to find useful information about interactions between genes and proteins for example. It's one of the reasons why the European Union has started the BioGrid project. In Mining biotech's data mother lode, IST Results describes this project. Among current results, the researchers involved in it have delivered a better search engine for PubMed by analyzing over-expressing genes and predicting the protein interactions that are likely occurring. And many of the tools developed by BioGrid are available for public use -- even by yourself. For more information, this overview contains additional details, pictures and references about this project." -
Glass Shapes Can Make Us Drink Too Much
Roland Piquepaille writes "Some people think that a glass is half empty while others see it as half full. But one thing is sure: some glasses are fuller than others. According to the British Medical Journal (BMJ), researchers from Cornell University and the Georgia Institute of Technology have shown that short glasses are more likely to lead to over-indulgence. In fact, people pour 20-30 percent more alcohol into short, wide glasses than into tall, narrow ones of the same volume. The researchers obtained similar results with students and professional bartenders. So, as New Year's Eve is coming, remember to use only tall glasses for your party!!!" -
Is Microsoft Still a Monopoly?
Microsoft Windows still dominates the desktop. But in many other areas, including Web servers and supercomputing, Microsoft is just one player among many, and often a weak player at that. On the gaming side, despite the latest xBox getting all kinds of media buzz as "the" console to buy, Sony's Playstation outsells the xBox at least two to one, and many analysts expect Sony to widen that gap even more when Playstation 3 comes out in the Spring of 2006. On the Internet, MSN and MSN Search are so far behind AOL and Google that it isn't funny. And even on the desktop, Linux keeps getting stronger, while Mac OS X is commonly accepted as more reliable, secure, and user-oriented than Windows. So why do we keep saying Microsoft is a monopoly? Microsoft (Slowly) Moves Away from Monopolistic Behavior
If a major IT user tells a Microsoft salesperson that he or she is thinking about switching to Linux, Microsoft will usually come back with a cut-price offer, something the company never used to do. Microsoft also now sells something called Windows Starter Edition in some parts of the world -- supposedly for as low as $37 or $38 (US) in Thailand, including a basic version of Microsoft Office. In other words, Microsoft is starting to compete on price, which is not monopoly-style behavior.
This does not mean Microsoft has suddenly adopted a "let's all love one another" attitude.I believe Microsoft is getting more concerned about interoperability not out of goodness, but because of market pressure. But in the long run, as long as Microsoft stops treating every other operating system and file format as some sort of devilspawn, life is a little easier for those of us who would rather not use their products, and that's what really matters.
Microsoft Explorer No Longer Rules the Online World
A majority of desktop computer users may still run Microsoft's Internet Explorer browser, but it no longer has 95% market share. In a 2002 book, and again last year in an online article, I warned Web designers not to make IE-only sites, just as in the (distant) past I'd warned them not to make Netscape-only sites. Some listened. Some didn't.
Firefox adoption may have slowed in 2005, but it certainly hasn't stopped. Opera has become enough of a force that we hear rumors about first Google, then Microsoft, buying it. In any case, whether MSIE is currently running on 90% of all desktops or on only 70% (as a few surveys indicate), it is becoming less popular every month. Now Microsoft has decided that Explorer is no longer fit for Mac users, so its market share will drop even more. Sure, there's a new version of Explorer coming out, but it isn't going to help the millions of "legacy" Windows users who don't want to buy XP. If they want modern browser functionality, they must switch to Firefox, Opera or another non-Microsoft browser.
'The Network is the Computer'
I don't think this is quite true today, if by "the network" we're talking about applications delivered over the Internet instead of over well-maintained LANs. Back in October I explained why I don't think Internet-delivered applications are quite "there" yet. More recently, Salesforce.com had an outage that angered many of its (claimed) 350,000 subscribers. Worse, ZDNet blogger Phil Wainewright pointed out that Salesforce.com compounded the problem, and possibly made users leery of all Internet-delivered applications' claims of "99.9% reliability," by poor communication with its users.
Most of the Web 2.0 (and even Web 3.0) stuff that's getting so much hype these days is not OS-dependent. You can run things like Google Maps on Linux, Mac OS, Unix, and even Windows, using any standards-compliant browser you choose.
Even Microsoft is trying to get into the Web 2.0 game. I got a press release from their PR people that included this sentence:"And if you enjoy taking a drive to check out your neighborhood’s Christmas lights visit this great Windows Live Local developer application at http://msnsearch101.com/searchmap."
I found this online utility's behavior strange and primitive, not nearly up to the standards of Google Maps and some of the mashups based on it. "Ah," I thought, "that's probably because I'm trying to use it with Linux and Mozilla." So I turned to my one Windows (XP) computer and checked the site with both Firefox and Explorer. For some reason the map background didn't load at all in Firefox, on Windows, and its behavior in Explorer, on Windows, was just as clunky as it was in Mozilla, on Linux.
If this is supposed to be a sample of what Windows Live Local can do, I don't think Microsoft is headed for any kind of monopoly -- or even much market share -- in the online map business. Not only that, it makes me wonder how good their promised Microsoft® Office Live is going to be. If even a quarter of the rumors we've heard about Google and Sun joining up to produce a Webified version of OpenOffice.org are true, I suspect Microsoft is going to be a distant also-ran in the (inevitable) Internet-delivered office software business, too.
Hundreds of Thousands of Competitors
It's fun to play the "Google is cooler than Microsoft" game and talk about how Google, not Microsoft, has become the hot place for top-end programmers to work if they want to make their mark on the world, but even Google can only hire a tiny fraction of the world's software development talent. There are over 100,000 Open Source projects on SourceForge.net (which is owned by the same company that owns Slashdot), and SourceForge.net is but one of many Open Source and Free Software hosting services out there. There are literally millions of programmers working on Free and Open Source Software, plus countless others working on personal proprietary projects.
We've all heard -- probably too many times -- the old saw, "If you have enough monkeys banging randomly on typewriters, they will eventually type the works of William Shakespeare." This may or may not be true. But it is certain that if you put millions of programmers in front of millions of computers and let them do whatever they want, some of them will turn out brilliant, world-changing work. Even if 999 out of 1000 of our putative programmers work on established projects or never finish what they start, that still gives us thousands of potential world-changing software projects, most of which won't be developed by Google (or Microsoft) employees.
I've been to India, and the smartest programmers I met there weren't working for outsourcing mills but worked for themselves. I'm sure there are plenty of self-employed programmers in China, Brazil, Kenya, and almost everywhere else on this planet, too, and there are certainly plenty of them here in the United States. And, all over the world, millions of programmers have day jobs doing routine work for corporate employers to put food on the table, and do their "real work" at home, at night.
Neither you nor I nor Google's management nor Microsoft's management know what might be going on right now in the mind of a brilliant Saudi woman with a computer science degree who can't work outside her home because her country's laws keep her from mixing with men who aren't related to her. There may be a poorly-dressed young man coding furiously in a Beijing Internet cafe, while you read this article, whose new operating system will make all current ones obsolete -- and you may not learn about his work until it shows up in a Chinese-made $100 laptop computer.
When Bill Gates and his friends started Microsoft, it was one of very few companies that sold nothing but personal computer software, and the others were so small that Microsoft managed to buy most of its competitors -- or at least license their best work or hire away their best programmers. Back then, programmers were scarce and expensive, as were the computers they programmed on. Now there are both programmers and computers all over the world, linked together by the Internet. The Internet not only helps programmers collaborate with each other across geographic boundaries, but allows them to distribute their work without shipping physical products.
The only reason to have a software company's employees work in an office these days is control, both of employees' schedules and of what they work on. Self-motivated geniuses have no need of offices and may even resent being asked to show up at one on a regular schedule, which means that many of the world's best programmers will never work for Google, Microsoft or any other company. Instead, they'll start their own software companies or, in many cases, Open Source-based consultancies.
So Microsoft doesn't face a few dozen competitors, as it did in the 1980s, but hundreds of thousands. And these competitors are spread all over the world. This kind of competition is a lot harder to co-opt, buy out or fend off than competition from a single company, a la Netscape, or even from a group of companies as substantial as IBM, Sun, Oracle, and their computing industry peers.
Competition has Forced Microsoft to Improve its Products
Microsoft may no longer be able to hire all the top programmers it wants, but there is already plenty of talent among its 60,000-plus employees, and they have done some excellent work in recent years. Windows XP is immeasurably better and more stable than Windows ME or Windows 98. The next generation of Explorer will have many of the modern browser features that those of us who use Firefox or Opera have gotten accustomed to. Microsoft Office may not have some of the features OpenOffice.org users take for granted, like a built-in graphics utility, the ability to act as a front end for industrial-strength free databases like MySQL, and the ability to save your work in 30+ different Open and proprietary formats, including PDF. But Microsoft Office today is a lot better than it was 10 years ago, and the next version may even use a sort-of free XML file format that may not be as open and standardized as the OASIS Open Document Format used by OpenOffice.org, but is less closed and less proprietary than previous Microsoft file formats.
A true monopoly would not need to make these improvements in its products. It would give you whatever it wanted, at whatever price it wanted to charge. It would not be selling cut-down versions of its products at cut-rate prices in developing countries -- many of which, you may note, are rapidly turning into "software developing" countries.
Without Linux, combined with Apple's move to BSD-based Mac OS X, I doubt that Microsoft would have put much development effort into Windows. They sure didn't do much with Explorer between the time they crushed Netscape and the time when Firefox started making a big splash, did they?
The U.S. antitrust case against Microsoft wasn't about the company being a monopoly (which courts agreed that it was at the time), but about illegal misuse of that monopoly. That case was settled in a way that left Microsoft essentially unharmed, but with a judge overseeing its actions for five years, a time period that is going to end before long.
The Age of the Software Monopoly is Over
IBM tried to create a monopoly in the business desktop computer business, but failed to hold onto its market-leading position as dozens, then hundreds, and later thousands of competitors made better/faster/cheaper PCs. Even today, while Dell is the world's largest personal computer vendor, if you add up all the market share reports from major computer vendors in this C|Net article, you'll see that they account for around 60% -- not 100% -- of total sales, with smaller companies getting the rest. (And some of those companies are *really* small, like the one-man Bradenton, Florida, shop where my sailing buddy Gene just bought his latest home computer.)
The personal computer hardware business has become totally demonopolized, decentralized, democratized, and internationalized. If you have enough mechanical ability to assemble components neatly (and enough sales ability to get people to buy what you make), you can get into it yourself with a very small investment, just as Michael Dell started out reselling computer components and assembling systems in his college dorm room.
Starting a software business takes even less investment. If you're a competent programmer -- or you have a friend who is a competent programmer and you are a whiz-bang marketing person -- you have everything you need to get going. You can either produce and sell proprietary software or customize (and probably install and maintain) Free or Open Source Software for corporate clients. If the Internet is your primary sales and distribution channel, you don't need to live and work in expensive IT business hotbeds like Silicon Valley or Boston, either: JBoss, for example, is based in Atlanta, Georgia; and Digium, the company behind Asterisk, is in Huntsville, Alabama.
There are software businesses springing up all over the place. Most of them are tiny, and few of them will ever get big enough that analyst firms like Gartner or IDC will track their market share (or even notice them). But there are so many of them being started that, in aggregate, they are becoming a more significant market force than any single big software company, even Microsoft.
This doesn't mean Microsoft will be replaced next year by 100,000 startups. The company will still be around, it will still get lots of press, and -- assuming it embraces (but does not keep trying to extend and extinguish) Open Standards -- it will still be a powerful force in the software world.
But no matter what Microsoft does, it will never have a software monopoly again. Nor will any other company. The barriers to entry in the software business have become too low for that to happen, and too many skilled software developers are learning that they can earn at least as much working for themselves as they would by working for big software companies.
Small is Beautiful was a fine book title in 1973. Today, it's a fine description of the software industry's future.
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Is Microsoft Still a Monopoly?
Microsoft Windows still dominates the desktop. But in many other areas, including Web servers and supercomputing, Microsoft is just one player among many, and often a weak player at that. On the gaming side, despite the latest xBox getting all kinds of media buzz as "the" console to buy, Sony's Playstation outsells the xBox at least two to one, and many analysts expect Sony to widen that gap even more when Playstation 3 comes out in the Spring of 2006. On the Internet, MSN and MSN Search are so far behind AOL and Google that it isn't funny. And even on the desktop, Linux keeps getting stronger, while Mac OS X is commonly accepted as more reliable, secure, and user-oriented than Windows. So why do we keep saying Microsoft is a monopoly? Microsoft (Slowly) Moves Away from Monopolistic Behavior
If a major IT user tells a Microsoft salesperson that he or she is thinking about switching to Linux, Microsoft will usually come back with a cut-price offer, something the company never used to do. Microsoft also now sells something called Windows Starter Edition in some parts of the world -- supposedly for as low as $37 or $38 (US) in Thailand, including a basic version of Microsoft Office. In other words, Microsoft is starting to compete on price, which is not monopoly-style behavior.
This does not mean Microsoft has suddenly adopted a "let's all love one another" attitude.I believe Microsoft is getting more concerned about interoperability not out of goodness, but because of market pressure. But in the long run, as long as Microsoft stops treating every other operating system and file format as some sort of devilspawn, life is a little easier for those of us who would rather not use their products, and that's what really matters.
Microsoft Explorer No Longer Rules the Online World
A majority of desktop computer users may still run Microsoft's Internet Explorer browser, but it no longer has 95% market share. In a 2002 book, and again last year in an online article, I warned Web designers not to make IE-only sites, just as in the (distant) past I'd warned them not to make Netscape-only sites. Some listened. Some didn't.
Firefox adoption may have slowed in 2005, but it certainly hasn't stopped. Opera has become enough of a force that we hear rumors about first Google, then Microsoft, buying it. In any case, whether MSIE is currently running on 90% of all desktops or on only 70% (as a few surveys indicate), it is becoming less popular every month. Now Microsoft has decided that Explorer is no longer fit for Mac users, so its market share will drop even more. Sure, there's a new version of Explorer coming out, but it isn't going to help the millions of "legacy" Windows users who don't want to buy XP. If they want modern browser functionality, they must switch to Firefox, Opera or another non-Microsoft browser.
'The Network is the Computer'
I don't think this is quite true today, if by "the network" we're talking about applications delivered over the Internet instead of over well-maintained LANs. Back in October I explained why I don't think Internet-delivered applications are quite "there" yet. More recently, Salesforce.com had an outage that angered many of its (claimed) 350,000 subscribers. Worse, ZDNet blogger Phil Wainewright pointed out that Salesforce.com compounded the problem, and possibly made users leery of all Internet-delivered applications' claims of "99.9% reliability," by poor communication with its users.
Most of the Web 2.0 (and even Web 3.0) stuff that's getting so much hype these days is not OS-dependent. You can run things like Google Maps on Linux, Mac OS, Unix, and even Windows, using any standards-compliant browser you choose.
Even Microsoft is trying to get into the Web 2.0 game. I got a press release from their PR people that included this sentence:"And if you enjoy taking a drive to check out your neighborhood’s Christmas lights visit this great Windows Live Local developer application at http://msnsearch101.com/searchmap."
I found this online utility's behavior strange and primitive, not nearly up to the standards of Google Maps and some of the mashups based on it. "Ah," I thought, "that's probably because I'm trying to use it with Linux and Mozilla." So I turned to my one Windows (XP) computer and checked the site with both Firefox and Explorer. For some reason the map background didn't load at all in Firefox, on Windows, and its behavior in Explorer, on Windows, was just as clunky as it was in Mozilla, on Linux.
If this is supposed to be a sample of what Windows Live Local can do, I don't think Microsoft is headed for any kind of monopoly -- or even much market share -- in the online map business. Not only that, it makes me wonder how good their promised Microsoft® Office Live is going to be. If even a quarter of the rumors we've heard about Google and Sun joining up to produce a Webified version of OpenOffice.org are true, I suspect Microsoft is going to be a distant also-ran in the (inevitable) Internet-delivered office software business, too.
Hundreds of Thousands of Competitors
It's fun to play the "Google is cooler than Microsoft" game and talk about how Google, not Microsoft, has become the hot place for top-end programmers to work if they want to make their mark on the world, but even Google can only hire a tiny fraction of the world's software development talent. There are over 100,000 Open Source projects on SourceForge.net (which is owned by the same company that owns Slashdot), and SourceForge.net is but one of many Open Source and Free Software hosting services out there. There are literally millions of programmers working on Free and Open Source Software, plus countless others working on personal proprietary projects.
We've all heard -- probably too many times -- the old saw, "If you have enough monkeys banging randomly on typewriters, they will eventually type the works of William Shakespeare." This may or may not be true. But it is certain that if you put millions of programmers in front of millions of computers and let them do whatever they want, some of them will turn out brilliant, world-changing work. Even if 999 out of 1000 of our putative programmers work on established projects or never finish what they start, that still gives us thousands of potential world-changing software projects, most of which won't be developed by Google (or Microsoft) employees.
I've been to India, and the smartest programmers I met there weren't working for outsourcing mills but worked for themselves. I'm sure there are plenty of self-employed programmers in China, Brazil, Kenya, and almost everywhere else on this planet, too, and there are certainly plenty of them here in the United States. And, all over the world, millions of programmers have day jobs doing routine work for corporate employers to put food on the table, and do their "real work" at home, at night.
Neither you nor I nor Google's management nor Microsoft's management know what might be going on right now in the mind of a brilliant Saudi woman with a computer science degree who can't work outside her home because her country's laws keep her from mixing with men who aren't related to her. There may be a poorly-dressed young man coding furiously in a Beijing Internet cafe, while you read this article, whose new operating system will make all current ones obsolete -- and you may not learn about his work until it shows up in a Chinese-made $100 laptop computer.
When Bill Gates and his friends started Microsoft, it was one of very few companies that sold nothing but personal computer software, and the others were so small that Microsoft managed to buy most of its competitors -- or at least license their best work or hire away their best programmers. Back then, programmers were scarce and expensive, as were the computers they programmed on. Now there are both programmers and computers all over the world, linked together by the Internet. The Internet not only helps programmers collaborate with each other across geographic boundaries, but allows them to distribute their work without shipping physical products.
The only reason to have a software company's employees work in an office these days is control, both of employees' schedules and of what they work on. Self-motivated geniuses have no need of offices and may even resent being asked to show up at one on a regular schedule, which means that many of the world's best programmers will never work for Google, Microsoft or any other company. Instead, they'll start their own software companies or, in many cases, Open Source-based consultancies.
So Microsoft doesn't face a few dozen competitors, as it did in the 1980s, but hundreds of thousands. And these competitors are spread all over the world. This kind of competition is a lot harder to co-opt, buy out or fend off than competition from a single company, a la Netscape, or even from a group of companies as substantial as IBM, Sun, Oracle, and their computing industry peers.
Competition has Forced Microsoft to Improve its Products
Microsoft may no longer be able to hire all the top programmers it wants, but there is already plenty of talent among its 60,000-plus employees, and they have done some excellent work in recent years. Windows XP is immeasurably better and more stable than Windows ME or Windows 98. The next generation of Explorer will have many of the modern browser features that those of us who use Firefox or Opera have gotten accustomed to. Microsoft Office may not have some of the features OpenOffice.org users take for granted, like a built-in graphics utility, the ability to act as a front end for industrial-strength free databases like MySQL, and the ability to save your work in 30+ different Open and proprietary formats, including PDF. But Microsoft Office today is a lot better than it was 10 years ago, and the next version may even use a sort-of free XML file format that may not be as open and standardized as the OASIS Open Document Format used by OpenOffice.org, but is less closed and less proprietary than previous Microsoft file formats.
A true monopoly would not need to make these improvements in its products. It would give you whatever it wanted, at whatever price it wanted to charge. It would not be selling cut-down versions of its products at cut-rate prices in developing countries -- many of which, you may note, are rapidly turning into "software developing" countries.
Without Linux, combined with Apple's move to BSD-based Mac OS X, I doubt that Microsoft would have put much development effort into Windows. They sure didn't do much with Explorer between the time they crushed Netscape and the time when Firefox started making a big splash, did they?
The U.S. antitrust case against Microsoft wasn't about the company being a monopoly (which courts agreed that it was at the time), but about illegal misuse of that monopoly. That case was settled in a way that left Microsoft essentially unharmed, but with a judge overseeing its actions for five years, a time period that is going to end before long.
The Age of the Software Monopoly is Over
IBM tried to create a monopoly in the business desktop computer business, but failed to hold onto its market-leading position as dozens, then hundreds, and later thousands of competitors made better/faster/cheaper PCs. Even today, while Dell is the world's largest personal computer vendor, if you add up all the market share reports from major computer vendors in this C|Net article, you'll see that they account for around 60% -- not 100% -- of total sales, with smaller companies getting the rest. (And some of those companies are *really* small, like the one-man Bradenton, Florida, shop where my sailing buddy Gene just bought his latest home computer.)
The personal computer hardware business has become totally demonopolized, decentralized, democratized, and internationalized. If you have enough mechanical ability to assemble components neatly (and enough sales ability to get people to buy what you make), you can get into it yourself with a very small investment, just as Michael Dell started out reselling computer components and assembling systems in his college dorm room.
Starting a software business takes even less investment. If you're a competent programmer -- or you have a friend who is a competent programmer and you are a whiz-bang marketing person -- you have everything you need to get going. You can either produce and sell proprietary software or customize (and probably install and maintain) Free or Open Source Software for corporate clients. If the Internet is your primary sales and distribution channel, you don't need to live and work in expensive IT business hotbeds like Silicon Valley or Boston, either: JBoss, for example, is based in Atlanta, Georgia; and Digium, the company behind Asterisk, is in Huntsville, Alabama.
There are software businesses springing up all over the place. Most of them are tiny, and few of them will ever get big enough that analyst firms like Gartner or IDC will track their market share (or even notice them). But there are so many of them being started that, in aggregate, they are becoming a more significant market force than any single big software company, even Microsoft.
This doesn't mean Microsoft will be replaced next year by 100,000 startups. The company will still be around, it will still get lots of press, and -- assuming it embraces (but does not keep trying to extend and extinguish) Open Standards -- it will still be a powerful force in the software world.
But no matter what Microsoft does, it will never have a software monopoly again. Nor will any other company. The barriers to entry in the software business have become too low for that to happen, and too many skilled software developers are learning that they can earn at least as much working for themselves as they would by working for big software companies.
Small is Beautiful was a fine book title in 1973. Today, it's a fine description of the software industry's future.
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U.S. Ecommerce To Be Broadly Taxed?
fl!ptop writes "ZDnet has a story about U.S. Senators proposing sweeping changes to how Americans are taxed for online purchases. As proposed, businesses would be required to collect sales taxes and send them to the state the purchase was shipped to. As a small business owner that primarily sells via ecommerce, I am shuddering at the prospect of having to deal with government sales tax forms and coupon books for 30 or more states. Will I have to register with each state's tax department? As an ecommerce Web developer, I'm also wondering what implications this will have on maintaining code that calculates sales taxes, expecially in states like Ohio where they differ by county and municipality." -
Santa IM Worm Hits AOL, MSN and Yahoo
elmtree95 writes "CNET News reports A Santa Claus worm is attempting to trick America Online, Microsoft MSN and Yahoo instant-messaging users into clicking on a file that delivers unwanted software to a victim's computer. The IM.GiftCom.All worm attempts to dupe IM users into thinking an acquaintance has sent them a link to a harmless Santa Claus file. IM security vendor ELMTree Software has released a patch to their ChatPatrol (www.chatpatrol.com) product to address this issue." -
FTC Declares Can-Spam a Success
TheSixth1 writes "ZDNet is reporting that the FTC announced in a recent report to Congress [PDF Warning] that the Can-Spam act is 'effective in providing protection for consumers.' The report boasts that the substantive provisions of the Act have mandated adoption of a number of commercial email "best practices" that many legitimate online marketers are now following. Second, the Act has provided law enforcement agencies and ISPs with an additional tool to use when bringing suit against spammers. The more than 50 cases brought to date by the FTC, the Department of Justice, state Attorneys General, and ISPs demonstrate CAN-SPAM's enforcement efficacy." -
Google Zeitgeist '05
Garett Rogers writes "Google has just released their Google Zeitgeist 2005. From the site: 'It turns out that looking at the aggregation of billions of search queries people type into Google reveals something about our curiosity, our thirst for news, and perhaps even our desires. Considering all that has occurred in 2005, we thought it would be interesting to study just a few of the significant events, and names that make this a memorable year. (We'll leave it to the historians to determine which ones are lasting and which ephemeral.) We hope you enjoy this selective view of our collective year.'" -
Microsoft Hires GUI 'Design Guru'
overpayd writes "ZDnet is reporting that Microsoft has hired 'user interface guru' Bill Buxton to work as a senior researcher. Will this move help focus the design teams for Vista, Office, etc? From the article: 'My sense is that Microsoft is in transition from an engineering-led company to as much a design-led company ... There are more designers at Microsoft on any single team as there were, not too long ago, in the entire company. It's a wonderful change.'" -
Fantastic Voyage Into the Heart
Roland Piquepaille writes "According to the Journal of Clinical Investigation (JCI), researchers from the Harvard Medical School have written a sequel to 'Fantastic voyage,' the 1966 sci-fi movie. By injecting self-assembling peptide nanofibers loaded with pro-survival factors into rats, they've showed that the animals could be protected from heart failures. So far, the researchers have not extended their experiments to humans." -
Microsoft and MTV to Launch Music Service
An anonymous reader writes "According to ZDNet Microsoft and MTV have joined forces to form Urge, a new online music service. From the article: 'The company said Urge would include a subscription component, as well as allowing individual song sales. A spokesman declined to discuss pricing, saying full details would be announced next month. The company gave no specifics on launch date beyond saying it would be sometime in 2006.'" -
E-Tracking May Change the Way You Drive
frdmfghtr writes "ZDNet.com is running a story about a runaway idea of a tracking automobiles via GPS. Not to be confused with the Canadian project geared towards anti-speeding ideas, this one does in fact have the goal of tracking your vehicle. 'The U.S. Department of Transportation has been handing millions of dollars to state governments for GPS-tracking pilot projects designed to track vehicles wherever they go. So far, Washington state and Oregon have received fat federal checks to figure out how to levy these 'mileage-based road user fees.' However, the article goes on to talk about how there is no provision in place to prevent the uncontrolled surveillance of motorists without a court order." -
IBM To Support OpenDocument Next Year
An anonymous reader writes "IBM announced this weekend that early next year it will begin supporting the OpenDocument standard in its WorkPlace line of products. They're planning on pushing this widely accessible format and their products in developing nations." From the article: "Rather than create an analog to Microsoft Office, IBM is offering editors for creating documents, spreadsheets or presentations within a Web browser. Documents are delivered via a Web portal and stored in shared directories. Access control and document management tools allow people to share and edit documents with others. Until now, Workplace supported the formats from open-source product OpenOffice, from which the OpenDocument was derived. Workplace Managed Client software also can read, write and edit documents created with Microsoft Office." -
Car Paint Changes With Temperature
PlayfullyClever writes "It's now common to build materials which can change colors depending on their surrounding environment because of progresses made in colloid chemistry. But now, German researchers have gone a step further. They've used ion bombardment and gold metallisation to produce new particles whose bonding behavior can be chemically tailored. This could lead to new shimmering car finishes which can change with temperature or humidity, new cosmetics, but more importantly, to new applications in optical data processing" -
Film Documents Software Creation
vasanth writes "Aardvark'd: 12 Weeks with Geeks a story of intern programmers at New York-based Fog Creek Software creating a product from scratch to shipping, is now finished, one of the first films to delve wholly into the life and culture of coding. And though it may not be the next Harry Potter, it's an engaging film that focuses more on the personalities of the people than on the technology, bringing to life a process ordinarily wrapped in geek mystique." -
Nanotechnology Gets Finer
An anonymous reader writes "ZDNet reports on a new level of detail found in nanotech construction." From the article: "Japan's NEC Electronics has developed a technology to make advanced microchips with circuitry width of 55 nanometers, or billionths of a meter, the Nihon Keizai Shimbun business daily reported Sunday. Finer circuitry decreases the size of a chip and cuts per-unit production costs. It also helps chips process data faster." -
IE Flaw Utilizes Google Desktop Search
abscondment writes "An error in the way Internet Explorer parses CSS files has been discovered by Matan Gillon of Israel. The flaw can be exploited by any website, and used to access personal information via Google's Desktop Search program. Of course, Google contends that this is a flaw with IE, and not their search software." -
Sun Opens Up Enterprise Software
abscondment writes "Stating that "open source is the future" of the software industry, Sun's President and COO Jonathan Schwartz announced that Sun will be opening its enterprise software in a manner similar to Solaris 10. Sun is opening up the Java Enterprise System, Sun N1 Management software, and Sun developer tools, etc. - practically everything except Java - hoping to lure more developers and chief executive officers worldwide to use and deploy its enterprise software." -
Apple Releases 'Highly Critical' Patch
Toothpick writes "Apple Insider reports that a new security update is available for download from Apple. This addresses issues identified in sudo, Safari, and OpenSSL among others. The gory details are, predictably, available on the Apple Info site." Commentary from ZDNet is also available. -
Why Can't Microsoft Just Patch Everything?
paneraboy writes "If smaller software companies can patch all of their bugs serious or minor, ZDNet's George Ou asks, why can't Microsoft -- with its massive army of programmers and massive budget -- patch all of its vulnerabilities? Had Microsoft fixed a low risk browser vulnerability six months ago, perhaps we could have avoided last week's zero-day exploit. Currently, more than two dozen Windows XP issues remain unpatched. Ou thinks Microsoft ought to fix them all." From the article: "Almost 4 years after the launch of Trustworthy Computing, I found myself wondering why am I staying up till 4:00 AM to deliver an emergency set of instructions (Home and Enterprise) to my readers because Microsoft felt it unnecessary to patch a flaw six months ago that was originally low risk but mutated in to something extremely dangerous." -
2005 The Turning Point For Online Ads
An anonymous reader writes "Google's advertising sales vice president, Tim Armstrong, said this week in an interview that 2005 was the turning point for online ads. Older businesses went from trying out the internet as an advertising venue to investing full-on." From the article: "'The experimenting and testing phase begun in the 1990s has ended. Corporate ad buyers are investing now,' he said. Jupiter Research estimates the U.S. online advertising market will grow 28 percent over last year, to $11.9 billion in 2005, moving to $13.6 billion in 2006 and $15.1 billion in 2007." -
A Recipe for Newspaper Survival in the Internet Age
I've spent seven years working as a writer and editor for Slashdot's parent company. During this time I've been to at least a dozen mainstream journalists' and editors' conferences where the most-asked question was, "How do we adapt to the Internet?" You'd think, with all the smart people working for newspapers, that by now most of them would have figured out how to use the Internet effectively enough that it would produce a significant percentage of their profits. But they haven't. In this essay I will tell you why they've failed to adapt, and what they must do if they want to survive in a world where the Internet dominates the news business. I'm going to use the Bradenton Herald as an example, not because it's a bad newspaper but because I live in the middle of its circulation area. The Herald is a typical Knight Ridder small-city newspaper in every way except one: it serves Manatee County, an area with a fast-growing population where most new residents are old enough that they grew up reading newspapers every day. Despite these favorable factors, the Herald's circulation has declined by 3.5% in the last year. Of course, newspaper circulation declines are now normal rather than exceptional. Other newspapers have done far worse, with the San Francisco Chronicle recording a 16.4% drop in the last six months alone.
Readership vs. Circulation
Much of the Chron's circulation decrease was because it stopped giving away free papers. The Boston Globe also stopped a giveaway program and suffered a circulation decline as a result, although only about half as big a loss as the Chron's, but the Globe's marketing people have said that only half of the loss came from stopping the giveaways, and blamed the rest of it on the usual suspects, notably TV and the Internet.
These figures only measure paper newspaper circulation. They don't include Web readership, which generally seems to be trending (slowly) upwards on newspaper Web sites. Circulation figures can also be misleading because they only measure the total number of newspapers distributed, not the kind of people who read them. And readership quality can often be more important, in a business sense, than quantity. This is especially true for those newspapers (namely, just about all of them) that rely on advertising for the bulk of their income.
By definition, anyone who reads a newspaper online at home can afford a computer and an Internet connection, which means they aren't at the very bottom of the economic pile. Online readers are also likely to be more open to new experiences, products, and services than those who don't feel they need to use the Internet -- which by some estimates may be as many as half of all households within the Herald's circulation area, which has a higher percentage of retirees than all but a few other U.S. counties.
Journalism professor Douglas Fisher and media executive Alan Mutter have both talked about intentional circulation losses on their blogs. In his post, Fisher says, "The industry evolves to the point of small, expensive print publications and most of the 'mass' news on the Web somehow. Then, as we evolve toward paid content online will come issues such as whether a certain amount of 'base' information should be free for every person -- sort of like a public utility of information (perhaps presented as a social utility necessary in a functioning democratic society)."
Meanwhile, when newspapers talk about readership vs. circulation, they're typically trying to estimate how many people read each copy of their print product (pdf download) rather than come up with a total picture of their publication's readership, including its online presence. This is a mistake. Instead of treating their Web sites like unwelcome stepchildren, newspapers should turn them into their primary method of news delivery -- and teach their reporters, editors, and ad sales people how to work effectively with this new -- to them -- medium.
Slashdot Lessons
1. No matter how much I or any other reporter or editor may know about a subject, some of the readers know more. What's more, if you give those readers an easy way to contribute their knowledge to a story, they will.
Imagine a newspaper with a space for comments below each story on its Web site. This Slashdot story has comments directly attached to it, not tucked away from public view the way the Bradenton Herald's site hides reader comments on Bulletin Boards that aren't directly connected to any of the paper's articles or editorials. To make matters worse, the Herald's Bulletin Boards require a separate login to post. Even if you're a logged-in reader you must put in your username and password again to use them.
As a result of these posting barriers, you hardly see any reader comments on the Herald's site, and what few there are seem to come from a small group that posts over and over. Even the Herald's single (hard to find) blog, maintained by token hip-dude entertainment reporter Wade Tatangelo, draws so few daily comments that you could count them on the fingers of one hand -- and usually have four or five fingers left over.
By contrast, the Washington Post's Web site has two blogs, Achenblog and The Debate, prominently displayed on the Opinions page that almost always draw 100+ comments per post.
A truly Web-hip newspaper would not only allow but encourage reader comments on all of its stories, not just on a blog or two. With thousands of readers as fact-checkers, mistakes would rarely go uncorrected for long, and if there was any perceived bias in a controversial article, reader comments would make sure the other side got heard. Even better, a reader who witnessed an event the paper covered would be able to add his or her account of it to the reporter's, which would give other readers a richer and deeper view of it.
2. Not all readers know what they're talking about.
While some readers know more about any given topic than a professional journalist writing about it, most don't. Some, indeed, post anything about anything, including misleading or false information. This is why Slashdot has a moderation system, and why all newspaper Web sites need to have moderation systems in place before they allow reader posts attached directly to stories. Slashdot's, which is built into the code that runs the whole site, is probably too complicated for most newspapers, but everyone (including newspaper publishers) is free to download, use, and modify it. For those who don't want to use the code behind Slashdot, there are many other free (and proprietary) content management programs available that have similar -- and often simpler and less geeky -- moderation features built into them.
3. No matter what you do, some readers will post malicious and/or obscene comments
Slashdot removes posts only in response to Cease and Desist orders or legitimate copyright infringement complaints. We find that malicious or obscene posts are usually moderated into oblivion almost immediately, because our readers -- hundreds of whom have moderation power at any given moment -- have a sharp eye for stupid stuff.
A mainstream newspaper might choose to remove blatantly disgusting posts, which would take some staff time. There would also -- inevitably -- be second-guessing and complaints, including whines from readers who believed their posts were removed because they didn't follow the [fill in political party here] line, not because they used offensive language.
Moderation never makes everyone happy. Someone will always feel the rules are too loose, while someone else will believe they're too tight. And moderates -- I mean moderators -- will always get flak from ____-wingers who think they're biased. But these problems shouldn't stop grown-up newspaper people from soliciting and publishing readers' posts. They should already be accustomed to bias accusations.
4. What if readers post comments that advertisers don't like?
This is a problem, and one to which some newspapers are extremely sensitive --not just over readers' comments but sometimes over their own reporters' stories. A 1999 Washington Monthly article had some examples of how newspapers sometimes cater to advertisers instead of their readers. Allowing readers to comment on stories, and allowing them to post anything they want (other than obscenities, blatant hate speech, and personal attacks) increases readers' faith in the newspaper, which makes it a more effective advertising medium in the long run because some of that trust will rub off on advertisers that support it.
The Business Side of a Newspaper Web Site
Slashdot, like almost all other Web, broadcast, and print media outlets, depends on ad revenue for most of its income. For the first few years of its existence as a commercial entity, major advertisers were afraid to buy ads on Slashdot or other free-wheeling, community-driven sites. They worried that every time they touted a product, all the customers they'd ever irritated would post bad things about them. It's impossible to run a company of any scale without having at least a few dissatisfied customers, no matter how good your products and services are, so this was not an unjustified fear.
Luckily for Slashdot (and our parent company), many companies have learned that they are going to get criticized online whether they like it or not, so at the very worst, running ads on pages where they get slammed gives them a chance to tell their side of the story.
Keyword-based ad placement helps them do this. Imagine making software that's often knocked for its security vulnerabilities, while competing software is available that costs little or nothing and doesn't share your product's problems. You'd want to run a Get the FUD (Fear, Uncertainty, and Doubt) campaign on every Web page where the competing product was being discussed so that you could tell people who are (obviously) interested in the competing product how awful it is, and why they should buy yours instead.
On a local newspaper Web site, a developer intent on replacing pristine wilderness along a scenic river with ugly condominium towers in the face of opposition from local citizens' groups could run a keyword-targeted campaign explaining why their buildings would be better than a swampy, mosquito-ridden riverfront. They could stress the fact that they would reduce the population of turtles, spiders, alligators, shore birds, frogs, and other annoying wildlife, and that runoff from their chemically-fertilized landscaping would help keep local fish populations down by contributing to red tide, thereby reducing the number of smelly fishermen infesting the area.
Other, more sensible, businesses would use the same tactic -- keyword ad placement -- to sponsor discussions in a positive way. An obvious example here in Florida would be resort property owners linking ads to tourism-related stories and the discussions attached to them. With geotargeting becoming common on the Web, ads aimed at visitors could be visible to all of a Florida newspaper's online readers, while ads for a local business would only be shown to local residents -- unless the local advertiser was canny enough to realize that Florida has many thousands of seasonal residents, and that reaching these snowbirds through the local newspaper's Web site before they come South is a great way to get a leg up on competitors.
Some other ways to exploit the Web that newspapers don't seem to do well:
- Print-them-yourself coupons. This is lots cheaper than putting coupons in a print newspaper. Many newspapers boast that today's paper contains $___ worth of coupon savings. Why don't more papers make this boast about their online editions? TV stations could do this on their sites, too. This would be an entirely new source of revenue for them, since there is no way to put a coupon in a TV spot.
- Online ad circulars, similar to the paper ones that pack print newspapers on Sundays and holidays. The print ones are expensive to produce and deliver, especially in color. Online circulars would be far less costly.
- Selling sponsorships for community calendars and other "public interest" sections that should be on every newspaper's Web site -- but often aren't or are produced in too scattered a manner to be useful for readers. C'mon, newspaper (and local TV) people! A well-organized, database-driven events calendar is easy to produce. If you don't have one (and sponsors for it), you should.
- Sponsored, "free to individuals and small businesses," local classifieds. craigslist and eBay are busily taking the classified ad market away from newspapers, with Google getting ready to help them with this effort. The Poynter Institute's Steve Outing suggests that the best way to beat back this threat is to "Turn newspaper classifieds into an active and interactive community, instead of just static, dull listings. A cold-hearted newspaper classifieds database could well be smothered by Google classifieds. A local-focused interactive community may be less vulnerable."
I believe the future of not only classified ads but of local news gathering and distribution is the "local-focused interactive community." According to this article, craigslist founder Craig Newmark agrees with me. So do plenty of other Web entrepreneurs and venture capitalists who are busily building and financing "community" sites.
Local newspapers should have dominated all of this interactivity from the beginning. They had the name recognition and -- through their print editions -- the promotional muscle to make their Web sites into unassailable community hubs. But they didn't, and now they're reduced to playing catch-up.
If the Sarasota Herald-Tribune had followed through on its plans to incorporate reader-written blogs into its site, Suncoastblog.com probably wouldn't exist. This group blog is an admittedly lame effort, barely begun, put together by several people in this area (including me) who thought it would be nice to have a local site that might eventually cover events and places that don't make their way into the local papers. We know the Herald-Tribune, whose circulation area overlaps the Bradenton Herald's, had thought about hosting reader blogs at one point, because they asked readers to submit blog ideas several months ago. I submitted one and never heard back.
I also submitted a local computer business column concept to the Herald. I came up with it because the Herald has a Sunday business page it calls "Digital Manatee," on which I have never seen anything other than out-of-town wire service material even though there is more than enough local computer and Internet business activity to fill a weekly column, and enough local computer and computer service vendors to surround that column with profitable advertising.
The Herald's editor didn't respond to my proposal. I've written three computer-oriented books, and thousands of articles that have run online and in print all over the world, but I am apparently not worth even a polite turndown from my local paper's editor. No problem. A week later I was having lunch with a couple of local entrepreneur buddies. I told them what had happened. They suggested an online computer business magazine instead of a Herald column, and offered to finance it on the spot, out of their pockets.
I don't have time to start a new publication. But I am in a position to help someone else start one, and to write a story or two for it now and then. Financing's in place. So is a domain name. So at some point the Herald and Herald-Tribune may have (yet) another niche publication competing with them. It won't be a big competitor, but its ad revenue will come from lucrative business-to-business accounts you'd think a local newspaper would be eager to lock up with a weekly (or more frequent) column for local computer-using business people.
This doesn't mean the Herald has a bad editor or that another small paper would have reacted differently. I use this anecdote only to point out that it is now easier to start an online publication than for even a highly-qualified outsider to get his or her work into a local paper. Is it any wonder that local blogs and other online niche publications are springing up like mad? And as a corollary, is it any wonder that newspaper circulation and influence continues to decline?
Newspapers need to open up more to the communities around them. They need to stop confining their interaction with readers to advisory board meetings and questionnaires, and allow readers' stories, opinions, and thoughts to become an integral part of the newspaper itself. They should not allow readers to alter the newspaper's own words, as the Los Angeles Times did back in June with their laughable wikitorial experiment. Moderated comments are a much better way to give readers a voice. So are journals that allow (logged-in) readers the same level of freedom they'd have with their own blogs, but also give them the cachet of being published on a "major brand" Web site.
'Local' is the Key Word
The Herald, Herald-Tribune, and many other (if not most) local newspapers seem to think that they are still their readers' primary source of national and international news, just as they were 20 years ago. So that's what fills their front pages most of the time, with local and regional news stuck in a "B" or "C" section.
Welcome to the Internet age, local newspaper (and TV) people. I can and do get my national and international news from the New York Times, The Washington Post, BBC, Al Jazeera, Fox News, CNN, and other online media that cover faraway events better and faster than you ever will. I turn to you for local news. You tell me more about last week's home invasion robbery on 11th Street East than they ever will.
It's time for local newspapers to become truly local; to feature local news on the front pages of both their Web sites and print editions, with only a few out-of-the-area stories up front, augmented by an above-the-fold story list that tells readers where to find national and international news on their inside pages.
Add readers' stories and comments to the mix and you suddenly have a local online community, not just a newspaper. This will not take work away from professional reporters, photographers, and editors, who will still be the foundation of local news-gathering. In fact, increased interaction with local community members will probably give them more work than ever, because they will find themselves inundated with news tips and story suggestions they never would have found on their own. Some of these story ideas will be dreck and some will be invaluable. It will be up to the newspaper's editors to find the (rare) nuggets in the huge pile of dross they will need to sort through every day, and up to the newspaper's reporters to follow up on them.
One important thing a community-oriented, Web-based newspaper must do is credit readers for their story leads unless they specifically request anonymity. Another good idea is to pay readers who submit news stories that are written well enough that they can run with only routine editing and fact-checking. Those readers are, in effect, doing a reporter's work, and they should get some sort of compensation for it. Some may even turn into stringers capable of covering government meetings and other events when staff reporters aren't available, and a few of those stringers eventually ought to become staff members. After all, if a newspaper is going to be about, by, and for its local community, shouldn't that community be its primary recruiting ground?
Newspapers Will Not Die
Some newspapers (and newspaper chains) will probably not survive the shift from news-as-monologue to news-as-dialog. Most will, although those that wait too long to adjust will have much of their audience, influence, and ad revenue taken away by more agile competitors.
The smartest newspapers will follow my survival recipe or come up with their own way to become an integral part of their community instead of a building full of people who have been sprinkled with Secret Journalism Powder that makes them better and smarter than their readers. These newspapers will not only survive, but prosper. They may even become the prime outlets for bloggers in their communities, which will increase their readership and ad revenue. Extreme ____-wing bloggers won't want their words associated with the hated Mainstream Media, but most others will be happy to have a widely-read, influential outlet for their work.
Eventually, I expect print newspapers to become "snapshots" of their Web editions taken at 1 a.m. or another arbitrary time, poured into page templates and massaged a little by layout people, then sent to the printing presses, a pattern that has potential for significant production cost reductions if handled adroitly. From that point on, their paper editions will be distributed the same way newspapers are now.
Senior citizens and others who can't afford (or don't want) computers are and will continue to be a viable market. So will commuters who use public transportation. Then there are those -- a substantial part of the population -- who simply prefer reading words and looking at pictures on paper to seeing them on a screen. They will still want physical newspapers, even if they are not as up-to-date or as complete as what they'd get on the Web.
However it is delivered, text will not go away anytime soon. For a fast reader, it is the most efficient way to take in large quantities of information. Most people speak at a rate of between 130 and 200 words per minute. Most college students, according to a Virginia Tech student guide, can read non-technical material at 250 to 300 words per minute, and can increase that reading speed significantly with a little thought and practice. Listening to a city council meeting at 150 words per minute takes much longer than reading a meeting transcript at two, three, four or ten times that speed. Now have a skilled reporter -- whether a staff member, paid contributor or volunteer -- write an intelligent summary of that meeting, and even an average reader can learn what happened there in a few minutes instead of slogging through a two hour audio or video recording.
The Web version of that summary can be posted without waiting for the printing presses and delivery trucks to roll, and can have audio or video snippets embedded in it, but there is no reason not to make the text portion of it available on paper for those who prefer it in that form, unless the paper's editors decide so few people are interested in a city council meeting that it doesn't deserve a spot in the print version -- and tracking page readership on the Web version of the paper before the paper edition goes to press should give those editors a good idea of what they should and shouldn't put on paper.
Printed newspapers will have a significant following for many years to come. They may or may not become "expensive," as Professor Fisher predicts, but they will likely become smaller than they are now, and subscription sales efforts will probably be targeted more closely at groups unlikely to have Internet connections, especially senior citizens.
On the Web side, it's likely that newspapers will end up keeping most of their content free, with specialty sections (and posting privileges) reserved for logged-in users. Whether they'll be able to charge for some or all of their Web content is questionable. I paid $50 for a year's subscription to the NYT's Times Select program, and I don't think it's a good enough value that I'll renew my subscription when it runs out. I would be more likely to pay if I lived in New York and that subscription, in addition to what it gives me now, offered access to additional features like complete transcripts of government meetings. Indeed, I would happily pay at least $30 per year to the Bradenton Herald for a well-organized Web edition that gave me what I now get in the paper edition, plus government meeting transcripts and other useful subscriber-only features.
But if I paid for an online subscription to the Herald, I'd probably drop my subscription to the paper edition. I'd still be the same person, with the same interests, earning power and spending habits. The only thing that would change about me, from the newspaper's perspective, would be my news delivery preference.
The challenge for local newspapers that beef up their Web editions at the expense of their paper versions won't be to keep (or add) readers, but to teach advertisers that the Web, not paper, is the best way to reach their most lucrative potential customers.
This may not be easy, but it will be a lot easier than explaining to advertisers why they should keep spending money in a newspaper that has fewer readers, and less influence, every year. -
Microsoft Receives Open Source VIP Blessing
* * Beatles-Beatles writes to let us know that Larry Rosen has given his blessing to the new terms that Microsoft is Making their Office XML Reference Schema available under. Rosen, "the attorney that wrote the book on open source licensing and the man who was the Open Source Initiative's first general counsel and secretary," described this move as the "most significant olive branch to date" to come from the Redmond software giant. -
A Continued Look at Linux vs Windows
Rogier van Vlissingen writes to tell us Paul Murphy has an interesting writeup on his blog about the continued Linux versus Windows debate with regards to some of the recent insights provided by various groups. From the article: "Disinformation comes in three major forms: innocent mistakes, intentional disinformation (aka FUD), and (self) delusion. Delusions are easily the most dangerous of these. In the IT context the most common delusion is simply that what we know is right in general or applicable to some specific issue when, in reality, it isn't. We know, and we act accordingly - with frequently catastrophic results."