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Dot Con: How Infospace Took Investors For A Ride
Jeff writes "On the subject of the dot com crash, the Seattle Times recently ran an outstanding three day series on the corruption at Infospace, with a follow up today on the company's continued relations with its founder, Naveen Jain. Sunday's cover photo of Jain's new office shows a birthday photo of himself and another self-portrait in the background. Only the reflecting pool is missing."
I can't figure out why either company matters, what the hell this has to do with GNU, Linux, GNU/Linux, the F/OSS community, iPods, Eugenia from OS News, or Microsoft. It's not a MySQL story. Nobody's hammering the Mozilla Foundation. Firefox isn't even mentioned. And there's no question at the end like "what does this mean for Google's world domination plans?"
I'm sorry, man, I just don't know what to make of this article.
REM Old programmers don't die. They just GOSUB without RETURN.
I'm still pissed that I lost the money I invested in Infospace. Oh well, I hope to make a large return from the money I've invested in CherryOS and the Phantom console.
Their technical lead proudly described the amazing fast database system he'd written to handle full-text search, because none of the commercial DB engines could possibly be fast enough.
He was using binary search to look through what he was estimating would be about a million records on disk.
Perhaps it was a mistake to explain that using a hash table would find the correct record in an average of 1.5 disk hits, as opposed to the 19 that his system was taking, because they didn't offer me a job. Then, again, maybe it wasn't a mistake-- after all, I didn't end up working there.
The real reason there isn't the incredible outcry over conmen like Bernie Ebbers, Ken Lay, and the man linked is because people don't realize that they, too, are part of the "investor class." Many people think that Enron's failure resulted in nothing more than a few robber barons transplanted from the 19th century having to switch their Cuban cigars to Dominican; they don't realize that they are being hit in the pocketbook, and that people who invested large amounts their life's savings were taken for a ride.
As for investors not doing enough research, that's simply not true. If you will remember, it was a fairly large scandal a few months ago that stock analysts - people who are hired by brokerages to deliver an unbiased analysis - were rating stocks highly, but privately commenting that those stocks weren't worth the paper their certificates were printed on. The end result was that investors who did everything "right" and read all the research available were actually more likely to get ripped off than someone who simply picked stocks because they had a cool-sounding name.
That's it. I'm no longer part of Team Sanity.
Shortly after my last day in December 2003, the entire executive board was replaced. Now InfoSpace is posting good numbers and wireless makes money.
Coincidence? I think not.
Don't be so hard on yourself. I'm sure it had nothing to do with you leaving.
I apologize for posting this AC, for obvious reasons.
.com imperative that I can't recall.
I first met Naveen Jain while he was still with Microsoft. It was 1995, and Naveen was telling a bunch of Time Inc. New Media honchos (the folks that brought the world Pathfinder - remember that? First commercial website?) that the Internet was _dead_.
It seems that Microsoft was intent on replacing all Internet technologies with its own "embraced and extended" versions. A binary version of HTML that allowed for 8 different types of hyperlinks. IRC, but with additional functions. That kind of thing. Pathfinder would be extinguished as the commercial Internet baby was stabbed in the cradle by the upcoming "Winternet". No kidding, he used that term.
The Time Inc. honchos ponied up a huge sum to get Pathfinder's url on the upcoming MSN. In classic Microsoft style, they took the money, and then hid the icon several levels of navigation down. No one ever saw it, but then again, MSN 1.0 had very few users anyway.
Naveen started Infospace, and I was sent on a fact-finding group mission to see if Pathfinder wanted to use their technology. Their office looked like a dump - they didn't have a data center, they had a huge mass of PCs piled almost randomly, hooked to the Internet. That was Infospace in '96/'97. They were so arrogant that they thought that'd impress the folks from Time Inc, who served Pathfinder on Sun (and only Sun), and had a datacenter that was a model of datacenters. I remember Time Inc. sysadmins' argument about whether the faraday cage was constructed correctly... but I digress.
At any rate, the best part of the tour was Jean-Remy showing off all of their home-grown technology. He claimed that _everything_ was home grown - database servers, DNS, web, even the operating system (!). In fact, he confided to me that he had "borrowed the best pieces of NT", including the kernel, in creating their home-grown operating system. And as others have said, he bragged endlessly about how his database was faster than Oracle.
As before, Time Inc. drank the Kool-Aid and signed up with Infospace - despite these kinds of issues - because they thought that they had to do so, for some stupid
Naveen Jain is an amazing huckster, I'll give him that. Pity that he escaped the SEC's special brand of torture.