Quote to Note: Murdoch on Paywall

August 12, 2010

Quote to note: The memorable passage comes from “iPad ‘Perfect Platform’ for News, Murdoch Says.” Here’s the segment:

Murdoch added that subscriber levels for The Times website has also been very positive: “It’s going to be a success. Subscriber levels are strong. We are witnessing the start of a new business model for the internet. The argument that information wants to be free is only said by those who want it for free.”

Paywalls are not new. SDC had them 40 years ago. Paywalls are great for must have content and for defensive plays. Paywalls allows publishers to keep existing subscribers. Paywalls are wonderful filters. Traffic drops are significant, maybe 90 percent or more.

Poison antidote data is a must have information resource. News, for me, not so much.

Stephen E Arnold, August 12, 2010

Google and Little Remote Controlled Flying Gizmos

August 11, 2010

Short honk: Navigate to Wirtschaftswoche. Learn about Google’s interest in wireless camera equipped flying aircraft. Ask yourself, “What would these devices add to StreetView?” Oh, come on now. Wireless, cameras, remote control, small, relatively quiet. Time’s up.

Stephen E Arnold, August 11, 2010

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Bezos Math, Google Numbers, and Symbian Statistics

August 8, 2010

I have noticed some puffery in the normally conservative world of marketing wackies. First, there was the announcement that Google is outgunning Apple in the mobile phone business. Okay, but I do see lots of bodies in the local Apple store. Then Symbian reported that it was installing 300,000 somethings every day, week, or month. I am not sure what difference that makes because there are lots of people in the Apple store.

Finally, I noted Amazon’s bold assertion. It’s the king of eBooks.

It’s safe to say everyone from John D. Rockefeller to Rich Uncle Pennybags have denied being involved in a monopoly. So it’s no shock that Amazon, with its assertion that it is devouring of the e-book market, is doing business behind a curtain of fog and smoke.

This was illustrated well in a recent Cnet interview: “Amazon: We Have 70 to 80 Percent of the E-book Market”. In an interview with the Kindle’s vice president, the Baby Bezos referred to competition like the iPad as a “gadget”. True to Bezos math, the Kindler failed to present hard market numbers. Claiming instead, “we’re pretty sure we’re 70 to 80 percent of the market. So, something, somewhere isn’t quite working right. I encourage you to do some more research,” when asked about hazy market share figures between Kindle, iPad and Nook. This type of secrecy reeks of monopolistic deeds and until we see hard numbers, we’ll continue to think so. I wonder what the search share of A-9 on Amazon is? Wait, I know. Five million objects.

Amazon math, Google numbers, and Symbian statistics. What happened to objective search?

Stephen E Arnold, August 8, 2010

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Leak or Plant: The New Ecology of Information

August 6, 2010

Where is the line between freedom of online speech and national security? One Web site is testing this border and creating quite a storm. The Washington Post recently ran a scathing editorial, “WikiLeaks Must be Stopped,”  discussing the legality of the aforementioned WikiLeaks (www.wikileaks.org), which claims to have leaked over 70,000 classified documents. The article pulls no punches, beginning with: “Let’s be clear: WikiLeaks is not a news organization; it is a criminal enterprise.” The article basically calls the site terroristic, though it is not affiliated with terror organizations. The Post actually encourages the United States to use military force, if necessary, to close down the site. Now, there’s no question this is a concerning site, but the internet is a place where voices can be heard, maybe the government should work harder on preventing leaks instead of crushing Web sites.

Beyond Search has some different thoughts. First, much of the information is recycled from open sources. Convenient. Second, is the information disinformation? The “value” of the content may not be the information itself but the notional impact of having these data floating around. Who loses? Who wins? Is this a new form of publishing?

Pat Roland, August 6, 2010

IBM and System Quality

August 6, 2010

I just read “Global CIO: IBM’s Bank Outage: Anatomy Of A Disaster“. Assume the inforamtion is spot on. The magnitude of the failure for IBM and its financial services customer underscores the complexity of large-scale systems. Here’s the passage that caught my attention:

According to ChannelNewsAsia.com’s coverage of the press conference, IBM regional general manager Cordelia Chung said that “the personnel directly involved with this incident have been removed from direct customer support activity and disciplined” and that “IBM has taken steps to enhance the training of all related personnel on the most current procedures.” And the BusinessTimes.com.sg article quoted Chung as saying, “We have also taken steps to review installations of the same storage system at other financial institutions in Singapore for whom we provide maintenance services.”

The problem, therefore, is one of those pesky humans. In the rush to replace people, organizations may lack the expertise to make software and deliver on the promises the azurini (that is, self appointed experts) and marketing mavens flippantly assert are “no problem.”

Well, problem. The notion that giant systems will work as advertised is one that needs scrutiny. In monoculture-centric methods, a single point of failure can have significant consequences.

The azurini and the mavens will write a nice case study but it seems to me more is needed. Talking about a problem is not the same as preventing a problem. So many experts are in a hurry today. Golf and fiddling with an iPad must be more important.

Little wonder that many search and content processing systems disappoint their users.

Stephen E Arnold, August 6, 2010

Ah, Now We Are Really Beyond Search

August 4, 2010

I love it when Fortune Magazine makes a brilliant business breakthrough. I don’t mean record setting revenues or surging subscriptions. Nope. I refer to Fortune’s article “Google: The Search Party Is Over.” The London newspapers have been nibbling on this dog bone for a year or so. The entire publishing industry has been howling in their kennels when it realized that Google was sucking money from ads and providing a road map for other tech-savvy entrepreneurs to exploit the traditional information industry. In my “domains collide” essays and talks, I pointed out that upstarts like Amazon, Apple, Facebook, and Google were pulling meta-plays, leaving those engrossed in checkers at the mercy of the 3-D chess players. The strategy for linear tactics allowed a number of multi-billion dollar outfits to poke their noses into a lousy financial climate. To make matters worse, the children of the “media establishment” were embracing the upstarts’ methods, not mommy and daddy’s.

What makes the Fortune article fascinating is that Fortune is now asserting that the miserable Googlers are going to face some tough sledding. The examples on offer range from Facebook (which is more like Google than most New Yorkers care to admit) to the New Age Apple. I mean black T shirts and blue jeans! Gasp. None of that in the Yacht Club on 44th, thank you.

Please, read the original. Get it on paper if you can. That will provide a gentle stroke to the money people at Time Warner. Who cares about that environmental, eco-thing. I used to work in Manhattan. Once you cross the river into New Jersey, who cares about the rest of the world, right?

Here’s a passage that caught my attention:

Amazingly, Google’s biggest and most promising opportunity to date, its successful Android operating platform for mobile phones, doesn’t produce much revenue or profit for Google — by design. The company in 2007 made the technology available to all comers in a bid to make the web more accessible on smartphones and in turn to encourage consumers to do more Google searches on their mobile devices. The strategy worked. Encouraged by this easy access to Android, handset makers began churning out multimedia phones, and the Android platform has been a consumer success: Google says some 160,000 new Android devices are activated each day, and device makers from Motorola (MOT) to HTC have all released popular phones on the Android platform. But Google doesn’t make gobs of money on those devices. (Google dabbled in phones but discontinued its Nexus One after only six months.) Apple, on the other hand, also stoked the smartphone market with its iOS, but with very different financial results: Last year the company posted an estimated $15 billion in iPhone sales, a benefit of making the hardware and the software.

There are four issues in this addled goose mind about the Fortune analysis:

First, Google has momentum. Just like Microsoft, complaining is not likely to stop the revenue flow. Sure the Web is “ever changing” – unlike the magazine business/ As a result, in course corrections are easier and the Google will make them. Will each adjustment be a home run? Nope. Will these modifications keep the company on track? In my opinion, yep.

Second, the problems Google faces plague its competitors and the many Xooglers in these companies. The legal hassles are just beginning, and I think that Google has been able to pull a Ronald Reagan. Some of its competitors won’t be so lucky. A single Microsoft-style anti-trust decision can trigger some interesting changes without much warning.

Third, the companies that are winning are increasingly monopolistic. A single problem within these constructs can have unexpected consequences. For example, as wonderful as Amazon and Apple are, both find themselves heading for a head on collision with regard to digital content. When monopolies collide, the impact will be quicker and more severe than when new methods of performing certain work intersect. In short, I see upheavals ahead. Big upheavals.

Finally, the problems at Google began in the pre-IPO period from 2002 to 2004. The Google got caught with its paw in the Yahoo-Overture-GoTo advertising method cookie jar. In 2006, Google was at its peak. The company could do no wrong. But after 2006, the company’s “culture” began to shift and the firm became careless. Betas were no longer tests; betas were outright mistakes. From the little known Web Accelerator tizzy to the spectacular Buzz flop, the caution signal was activated in late 2006. Hmmm. four years ago.

We’ve been beyond search for several years. In fact it is going on five years since I wrote in Searcher Magazine that search was dead. Slow reaction time works on Sixth Avenue. Doesn’t work in Harrod’s Creek.

Stephen E Arnold, August 4, 2010

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Taxodiary: At Last a Taxonomy News Service

August 3, 2010

I have tried to write about taxonomies, ontologies, and controlled term lists. I will be the first to admit that my approach has been to comment on the faux pundits, the so-called experts, and the azurini (self appointed experts in metatagging and indexing). The problem with the existing content flowing through the datasphere is that it is uninformed.

What makes commentary about tagging informed? Three attributes. First, I expect those who write about taxonomies to have built commercially-successful systems to manage terms lists and that those term lists are in wide use, conform to standards from ISO, ANSI, and similar outfits. Second, I expect those running the company to have broad experience in tagging for serious subjects, not the baloney that smacks of search engine optimization and snookering humans and algorithms with their alleged cleverness. Third, I expect the systems used to build taxonomies, manage classification schemes, and term lists to work; that is, a user can figure out how to get information out of a system relevant to his / her query.

taxodiary splash

Splash page for the Taxodiary news and information service.

How rare are these attributes?

Darned rare. When I worked on ABI/INFORM, Business Dateline, and the other database products, I relied on two people to guide my team and me. The first person is Betty Eddison, one of the leaders in indexing. May she rest in indexing heaven where SEO is confined to Hell. Betty was one of the founders of InMagic, a company on whose board I served for several years. Top notch. Care to argue? Get ready for a rumble, gentle reader.

The second person was Margie Hlava. Now Ms. Hlava, like Ms. Eddison, is one of the top guns in indexing. In fact, I would assert that she is on my yardstick either at the top or holds the top spot in this discipline. Please, keep in mind that her company Access Innovations and her partner Dr. Jay ven Eman are included in my reference to Ms. Hlava. How good is Ms. Hlava? Very good saith the goose.

Read more

Pundit Ignores Information Retrieval Reality

August 1, 2010

Short honk: I don’t have the energy to deal with “Cookie Madness”, an essay that appeared in the Buzz Machine. Maybe academics are afflicted with “a certain blindness” to use William James’s brilliant phrase? Maybe academics forget that most of the people using computers don’t know that their online activities can be tracked, including hover time, mouse movement, and cursor movement patterns?

More important is the penchant for publishers and reporters to embrace the roots of American journalism. The catch phrase for this approach to information fit nicely under the precept at the Courier Journal’s WHAS television unit as “If it bleeds, it leads.” Why? Money. Simple. Fear, controversy, and explosive allegations are the chemicals that feed the modern Venus Fly Trap of journalism. Nothing is more effective than creating an issue and then huffing with indignation about that issue. Quite an information ecosystem, right?

The Wall Street Journal is owned by a modern media mogul, presumably an owner of properties employing journalism school graduates, new media specialists, and even PhDs in social collaboration (whatever that means). When these rosy cheeked warriors arrive, those titanium tipped diggers will ferret out what sells.

The Wall Street Journal is focusing on fear and breathless explanations of how a computer system can track a user’s every online action. Hey, as long as it generates sales and gets the pundits’ panties in a bind, the Wall Street Journal’s story about tracking is doing its job. At least the journalists working on the story have jobs, for a while at least.

Sigh. Next Hyde Park moment coming up. Film at 11. Now this word.

Stephen E Arnold, August 1, 2010

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When Domains Collide: The Apple-Time Bonk

July 30, 2010

My NFAIS lecture will appear in a forthcoming book of essays. I won’t drag you through the argument in that write up. I do want to call your attention to “Apple Blocks Time, Others from Running iPad Subscriptions.” The issue is that Apple is taking a somewhat arbitrary stand with regard to a publisher using the Apple ecosystem sell an Apple device user a subscription without Apple being in the middle. For me the key passage in the write up was:

Why Apple would reject subscriptions isn’t known, but it’s speculated that the company may be worried about how publishers would use the consumer data collected with each subscription, even though such collection is standard in the print world. Apple might alternately be worried about missed revenue opportunities, since allowing direct payment for subscriptions would cut the company out of some or a lot of income. The latter approach would be incongruous though, since Amazon and the Wall Street Journal can already bill customers directly in some cases.

The view from the goose pond is easy to explain. Publishers want control but no longer own the distribution channel. Apple owns the distribution channel, including the bank, the customer, and the information pipeline. Apple wants control and will take it until someone or something prevents Apple from doing what it wants. Publishers on the other hand think they are in control.

When domains collide, the nature of who is on top guarantees friction between those who are crushing others and who is being crushed. In this battle, the publishers like the music folks are learning that the person with power pretty much calls the shots.

Solution: find a way to regain control. This might be tough because a core competency in distributing information in a 19th century world does not mean much in the data-centric world of 2010. Apple, which was a possible dead on arrival company two or three times in the last 20 years found a way to survive. Now publishers have to find their solution.

Complaining and trying to be clever in order to “work around” the Apple guidelines won’t work. Anyway, it may be too late.

Stephen E Arnold, July 30, 2010

Freebie, unlike a single copy of Time

Quote to Note: Google about Android and Content

July 29, 2010

Here’s a quote to note. Today is July 29, 2010, and I don’t want this puppy to slip away. The story “Eric Schmidt on Google’s Next Tricks” is about Google’s dependence on advertising revenue. There is nothing wrong with billions of dollars. The problem is that Apple’s revenues are more diversified and Apple is moving into advertising. Google is jumping into hardware but in a Platonic manner. Google gives away Android and allows other companies to build hardware. Apple on the other hand gets its hands dirty with deals, hardware, software, and online services. So in terms of tricks, the Apple orchard has more diversity than Google’s patch.

Now here’s the quote to note:

“If we have a billion people using Android, you think we can’t make money from that?”

That’s a good question. The proof will be like Apple’s bushel basket full of revenue, earnings, and valuation. Google’s good, but a monoculture may be more vulnerable than diverse revenue streams that are up and flowing, not glimpsed in the mirror reflecting the horizon. Plato was not into money. Investors are the kinds of folks who say, “Show me the money.” Very un-Platonic in this goose’s opinion.

Stephen E Arnold, July 29, 2010

Freebie from the goose

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