(No Surprise Here)
As I blog on the Google Blogspot service, using a Google Gmail account as my moniker, and search for research material on Google Search and Google Finance, I find it easy to recommend GOOG to investors.
Google hosts my company's email service (Google apps) and I highly recommend it to the organizations that I work with. I've largely abandoned the desktop driven MS Office application suite in favor of the web based and highly interactive Google Docs. We use Google Analytics for web traffic analysis, and spend some cash on Google Ad Words. I'm also looking into Google's cloud features for possible future deployments.
Google's revenue stream is heavily advertising driven, so one would expect their profits to suffer greatly in a recession. However, Google has capitalized on a great new market and is siphoning revenue from traditional media outlets (newspaper, TV, radio, etc) and competitors (Yahoo, Ask, Microsoft, etc) alike.
Google also gets a handsome amount of revenue for their enterprise applications like Google Earth, Google Apps, and Google Enterprise Search.
Google Chrome OS
Google's recent foray into the Operating System marks an important shift in computing. To many glossy eyed pundits, the announcement is dismissed as Google getting involved in what it knows nothing about.
Other pundits (including yours truly) see much more depth to this move than meets the eye. Forget for a moment that Google has essentially maintained its own operating system for years - what highly customized systems do you think run the worldwide Google farm? Forget for a moment that some very powerful open source operating systems have already found modest success on their own (Ubuntu, Red Hat). And do your best to forget that Apple's OS X is merely a pretty face on an open source operating system (BSD).
Google is simply going to apply a clean, user friendly face to the Linux kernel - much like Ubuntu and Apple have done with some success.
But the real secret to releasing an operating system is the recognition that the "Operating System" as we know it is over. The OS is a commodity in Google's world vision. There is no more room for a monopolistic company to keep the masses bound to one platform for all PCs.
For this world view to survive, two critical things must happen. (1) Companies must be willing to change their operating system, and (2) applications must be willing to go from the desktop and on to the web.
I think that since 2006 or so, many companies have been holding off on new IT investments. When hardware has reached a temporary plateau and Vista did not provide enough to convince folks to move, companies held tight to WinXP. Application vendors held off and many new services are at least partially offered online. Most importantly, the next crop of workers were raised in the Internet Age. They expect to do their work on the web.
The trend is moving overwhelming in support of Google's world view. The big question is how well Google is equipped to handle stewardship for the next great technology boom? Since they also have a lock on Silicon Valley brain power, I'd say their chances look good.
Just remember, Google: Don't be Evil.
Monday, July 20, 2009
Amazon (AMZN)
Amazon is truly a hidden gem of the modern technology age. I doubt that few investors fully understand the cloud technology that Amazon has developed and made into such a vital part of the company.
Aside from being one of the largest online retailers (focus on books), Amazon has drop ship services for merchants and sells a digital book reader called Kindle.
Below the surface of Amazon.com lives a hive of hundreds of thousands of machines at dozens of locations around the world. It is this massively scalable compute farm that gave engineers at Amazon a brilliant idea - rent out their unused horsepower to smaller organizations that could benefit from a massively scalable farm of their own.
Several years later, companies like Nasdaq, the New York Times, and countless unnamed government and Fortune 100 organizations now rely on the computing power in Amazon's cloud.
I'd love to go on and on about Amazon Web Services (AWS), but that's really a topic for a separate and highly technical discussion. The bottom line is that companies looking for short term horsepower or an outsourced core network can choose from a menu of services offered by Amazon.
For those needing to store large amounts of files (pictures, video, news content, backup files, etc), Amazon S3 charges a few cents per month per GB to hold the data. And it will also charge a few cents per GB transferred to host the data for the world.
For those needing 10 machines or 1000 machines, Amazon EC2 will provide this to you within minutes of issuing a command. There are no contracts or startup fees - you simply pay a few cents for each hour you use a machine. You can choose from a variety of hardware sizes, and you have the option to use Windows or Linux. This is a favorite of researchers, academics, and web startups looking for temporary or highly burstable traffic.
If you need a database, you can also rent this functionality by the transaction. Amazon's SimpleDB is internally scalable, so there's no need to worry about clusters or mundane maintenance.
Bottom Line
Amazon has positioned itself as a leader and early favorite in the cloud computing market. This, combined with a strong online retailer position should push Amazon into a highly profitable future.
Disclaimer: My company runs its services entirely through the Amazon EC2 farm. We also take advantage of S3 for file storage and are looking at modifying some apps to take advantage of SimpleDB.
Aside from being one of the largest online retailers (focus on books), Amazon has drop ship services for merchants and sells a digital book reader called Kindle.
Below the surface of Amazon.com lives a hive of hundreds of thousands of machines at dozens of locations around the world. It is this massively scalable compute farm that gave engineers at Amazon a brilliant idea - rent out their unused horsepower to smaller organizations that could benefit from a massively scalable farm of their own.
Several years later, companies like Nasdaq, the New York Times, and countless unnamed government and Fortune 100 organizations now rely on the computing power in Amazon's cloud.
I'd love to go on and on about Amazon Web Services (AWS), but that's really a topic for a separate and highly technical discussion. The bottom line is that companies looking for short term horsepower or an outsourced core network can choose from a menu of services offered by Amazon.
For those needing to store large amounts of files (pictures, video, news content, backup files, etc), Amazon S3 charges a few cents per month per GB to hold the data. And it will also charge a few cents per GB transferred to host the data for the world.
For those needing 10 machines or 1000 machines, Amazon EC2 will provide this to you within minutes of issuing a command. There are no contracts or startup fees - you simply pay a few cents for each hour you use a machine. You can choose from a variety of hardware sizes, and you have the option to use Windows or Linux. This is a favorite of researchers, academics, and web startups looking for temporary or highly burstable traffic.
If you need a database, you can also rent this functionality by the transaction. Amazon's SimpleDB is internally scalable, so there's no need to worry about clusters or mundane maintenance.
Bottom Line
Amazon has positioned itself as a leader and early favorite in the cloud computing market. This, combined with a strong online retailer position should push Amazon into a highly profitable future.
Disclaimer: My company runs its services entirely through the Amazon EC2 farm. We also take advantage of S3 for file storage and are looking at modifying some apps to take advantage of SimpleDB.
AMD
I should start by saying that I've always been partial to AMD's processors. When I used to build my own PCs, I used AMD exclusively.
I believe that the EU's recent anti-trust rulings against Intel will favor AMD attempts to compete on a level playing field.
I also think that AMD should - in theory - have the sales advantage during a recession because their products consistently provide more horsepower for the dollar.
Combine this now with Google's efforts to release an operating system, and I think we're going to see a reemergence of the PCs wars. Such a burst in spending will greatly improve the AMD bottom line.
In the 90's, our choice was simply Apple OS on Apple hardware or Windows OS on a variety of PC hardware choices. Today, Windows can run on either AMD or Intel, as will Google Chrome and other Linux systems. In fact, Apple is now running on x86 architecture and could easily run their systems on AMD.
Barring some unforeseen revelation, there is nowhere to go but up for AMD.
I believe that the EU's recent anti-trust rulings against Intel will favor AMD attempts to compete on a level playing field.
I also think that AMD should - in theory - have the sales advantage during a recession because their products consistently provide more horsepower for the dollar.
Combine this now with Google's efforts to release an operating system, and I think we're going to see a reemergence of the PCs wars. Such a burst in spending will greatly improve the AMD bottom line.
In the 90's, our choice was simply Apple OS on Apple hardware or Windows OS on a variety of PC hardware choices. Today, Windows can run on either AMD or Intel, as will Google Chrome and other Linux systems. In fact, Apple is now running on x86 architecture and could easily run their systems on AMD.
Barring some unforeseen revelation, there is nowhere to go but up for AMD.
Wednesday, July 15, 2009
Delta Smelt or Delta Sharks?
Why Are California's West Side Farmers Getting Squeezed?
California is the nation's top agricultural exporter and home to nine of the top ten farming counties in the entire nation (1). Much of the San Joaquin Valley (roughly the area between Sacramento to Bakersfield) is devoted to farming operations. This region was once one of the largest in-land lakes, but it was extremely shallow and irrigation projects allowed the region to be settled and farmed.
Fast forward to 2009. The hot button issue with farmers is a decision to cut off irrigation to many west side farmers out of "respect" for a variety of fish called delta smelt. These are not native fish, but they thrive in one of the key reservoirs that delivers mountain water to west side farmers. When the irrigation gates are opened, the small fish tend to clog up the machinery of the gates - killing many fish and costing money for clean up.
To fix the problem, the state says it will need as much as $25M to install fish screened gates. I'm sure they could have picked a more ridiculous number out of their hat, but $25M seemed credible enough. In the meantime, water deliveries to thousands of farmers are simply cancelled - a move that will likely cost 60,000 jobs in the farming sector in this season alone.
Sounds horrible, doesn't it? It's almost enough to get one hating all environmentalists and moving even further to the right...
Unfortunately, this story has many strange bedfellows.
It's like déjà vu all over again
As the Los Angeles basin was developing beyond its means last century, developers sought to get further out into the basin where land was cheaper and rules were loose. The problem was finding sources of water to support new residential and commercial developments.
Some of the very successful developers worked out deals with water commissioners that inexplicably led to water supplies getting cut off to small, rural farmers. The resulting season brought that farmer bankruptcy - without water, he can't produce and earn money to pay his debts. And without water rights for the farm land, the dirt was nothing more than a worthless desert.
At this point, developers would head out to that poor farmer and offer him a 'generous' deal on his land - walk away for pennies on the dollar and we'll assume your debts. Once all of the farmers in an area were out of the way, water rights would be restored and a city would spring up. All of this was massively profitable for the developer.
To see this scenario in action, go watch the classic movie called "Chinatown" (Jack Nicholson).
How does this relate to Delta Smelt?
Today's "Delta Smelt" water crisis is just cover for a more straightforward scenario.
California has long planned to develop the west side of the central valley into one large series of "sleeper" towns for LA & the Bay Area. The coastal regions are heavily populated and working class folks have trouble living in the towns that they work in. The plan has been to develop a high speed transit system to shuttle workers from the valley and into the major metro centers of LA and the Bay Area. Voters approved the high speed rail system last November, 2008.
But there is one problem to this plan: Farmers currently own all of the land.
Farming is a profitable business and California farmers have a penchant for strong business acumen and highly efficient operations. Modern farmers in this area are also wise to land prices. When urban development approaches, they know it's time to cash out and they work to transition their land into "entitlement ready" parcels.
And that's where modern farmers run afoul with history. By being smart businessmen, they are cutting out middleman developers who seek to buy farmer land below value by any means possible and sell it to builders. The workload is light and risk is low, but for all of their near zero effort they expect to see 10-20 fold returns.
It looks to me like these modern day developers (sharks) appear to be turning to old dirty tactics and slight of hand.
By convincing a few bureaucrats to cut off the water supply, many farmers will go into default on their land. They'll be forced to sell in a hurry or lose everything in bankruptcy. Speculators will come in and buy the land cheap, hold it for a few years, and then develop it during the next housing boom cycle. Without this fire sale, few developers will work to rapidly buy up and build out the valley. And without irrational development on the scale that we saw from 2003-2007, the state will not be able to fully realize the goal of a giant 300 mile long suburb along the I-5 corridor.
How to solve a phony crises?
I urge you to look at history as your guide as to how this situation was engineered and how it will play out. You'll have a lot less success fighting the delta smelt than you will fighting the true culprits of this phony crises.
You can do a few things.
California is the nation's top agricultural exporter and home to nine of the top ten farming counties in the entire nation (1). Much of the San Joaquin Valley (roughly the area between Sacramento to Bakersfield) is devoted to farming operations. This region was once one of the largest in-land lakes, but it was extremely shallow and irrigation projects allowed the region to be settled and farmed.
Fast forward to 2009. The hot button issue with farmers is a decision to cut off irrigation to many west side farmers out of "respect" for a variety of fish called delta smelt. These are not native fish, but they thrive in one of the key reservoirs that delivers mountain water to west side farmers. When the irrigation gates are opened, the small fish tend to clog up the machinery of the gates - killing many fish and costing money for clean up.
To fix the problem, the state says it will need as much as $25M to install fish screened gates. I'm sure they could have picked a more ridiculous number out of their hat, but $25M seemed credible enough. In the meantime, water deliveries to thousands of farmers are simply cancelled - a move that will likely cost 60,000 jobs in the farming sector in this season alone.
Sounds horrible, doesn't it? It's almost enough to get one hating all environmentalists and moving even further to the right...
Unfortunately, this story has many strange bedfellows.
It's like déjà vu all over again
As the Los Angeles basin was developing beyond its means last century, developers sought to get further out into the basin where land was cheaper and rules were loose. The problem was finding sources of water to support new residential and commercial developments.
Some of the very successful developers worked out deals with water commissioners that inexplicably led to water supplies getting cut off to small, rural farmers. The resulting season brought that farmer bankruptcy - without water, he can't produce and earn money to pay his debts. And without water rights for the farm land, the dirt was nothing more than a worthless desert.
At this point, developers would head out to that poor farmer and offer him a 'generous' deal on his land - walk away for pennies on the dollar and we'll assume your debts. Once all of the farmers in an area were out of the way, water rights would be restored and a city would spring up. All of this was massively profitable for the developer.
To see this scenario in action, go watch the classic movie called "Chinatown" (Jack Nicholson).
How does this relate to Delta Smelt?
Today's "Delta Smelt" water crisis is just cover for a more straightforward scenario.
California has long planned to develop the west side of the central valley into one large series of "sleeper" towns for LA & the Bay Area. The coastal regions are heavily populated and working class folks have trouble living in the towns that they work in. The plan has been to develop a high speed transit system to shuttle workers from the valley and into the major metro centers of LA and the Bay Area. Voters approved the high speed rail system last November, 2008.
But there is one problem to this plan: Farmers currently own all of the land.
Farming is a profitable business and California farmers have a penchant for strong business acumen and highly efficient operations. Modern farmers in this area are also wise to land prices. When urban development approaches, they know it's time to cash out and they work to transition their land into "entitlement ready" parcels.
And that's where modern farmers run afoul with history. By being smart businessmen, they are cutting out middleman developers who seek to buy farmer land below value by any means possible and sell it to builders. The workload is light and risk is low, but for all of their near zero effort they expect to see 10-20 fold returns.
It looks to me like these modern day developers (sharks) appear to be turning to old dirty tactics and slight of hand.
By convincing a few bureaucrats to cut off the water supply, many farmers will go into default on their land. They'll be forced to sell in a hurry or lose everything in bankruptcy. Speculators will come in and buy the land cheap, hold it for a few years, and then develop it during the next housing boom cycle. Without this fire sale, few developers will work to rapidly buy up and build out the valley. And without irrational development on the scale that we saw from 2003-2007, the state will not be able to fully realize the goal of a giant 300 mile long suburb along the I-5 corridor.
How to solve a phony crises?
I urge you to look at history as your guide as to how this situation was engineered and how it will play out. You'll have a lot less success fighting the delta smelt than you will fighting the true culprits of this phony crises.
You can do a few things.
- Call a spade a spade. Shine the light on this scenario - but do it carefully and in full view of historical examples. You'll quickly find politicians from both parties aligning to dismiss such claims. Take their names and look into their political donations.
- Provide training to farmers to arm them with the tools necessary to negotiate their land prices. Show them the basic steps to removing their land from the Williamson Act and work towards basic entitlement steps. Such moves blunt efforts by developers to claim that the land would be worthless without a farm. Farmers must be one step ahead of developers if they hope to stay in control of their land.
- Use "environmentalism" to your advantage. The recent federal energy bill paves the way for small landowners and farmers to use their property for energy production. The west side has decent winds and full sun, so consider adding a few turbines and solar panels along side your crops. Not only would you get access to new federal funds and financing, you would also be protecting your land from urban conversion and generating some passive revenue. Revenue generated from electricity could be enough to float you through a season without water.
- Get connected with Families Protecting the Valley. While they appear to be a decidedly right wing only organization, they are well funded and well directed to meet this challenge.
Tuesday, July 7, 2009
Palin Resignation
I've been struggling to understand the core reason why Gov Palin abruptly resigned her office. It would certainly make sense to resign if she had been appointed to an ambassadorship, was elected to a national office, or was embroiled in an embarrassing scandal.
None of the conventional reasons appears to be in play. Unless the governor has not disclosed the true reason for leaving - such as a brewing scandal, big money deal, or a plan to run for Senate or the White House - we all just sit here and guess.
Palin may actually believe that quitting during the middle of her first term as governor will improve her 2012 prospects. It might actually play well with her ever hardening base of "true believers". But I'm sure anything she does would play well with them - just as it would with the hardcore base of any popular politician.
Let's not forget that Palin has abruptly quit public office before. She was appointed to a state oil & gas commission, but resigned in protest halfway in to her term. Now she has resigned as Governor halfway into her term for what is being explained as fatigue.
Interestingly, Palin has also suggested that her resignation is for Alaska - that it's not fair to the state that so much focus is being put on her and not on the issues at hand. Following that logic, Palin believes that she is actually sacrificing herself for the state as it's the only way to move legislation forward. How messianic of her.
I can't believe I'm saying this, but I completely agree with Karl Rove: I am perplexed by this resignation.
It is a bizarre move for a politician at that level. I would dare say it is an amateur move. It is almost as if Palin was playing a game of checkers while everyone else were playing chess.
Her actions must be disappointing to the GOP. They were hoping to revitalize the party at midterms and have a solid option to Obama in 2012. The GOP needed someone who had a good run as a governor and was ready to step it up at the national level. I'm sure they were looking for Palin to step into this role.
Palin should no longer be a credible candidate for an even more rigorous and vicious office at the national level. If she thought being Gov of Alaska was tough, trying working in the Senate or White House. You simply cannot quit in the middle of your term because you're getting picked on or you feel tired. These are serious jobs that require serious and dedicated individuals - and Palin may have just showed herself to be less than serious.
Time will tell what her true game plan her was. We'll see if a scandal pops up, or if she gets a high dollar gig at Fox News, or if she goes on the speaker circuit, or if she really didn't think this through and fades from public view, or if she announces her candidacy for 2012 a few years early just to get dibs.
I certainly do not believe that her 60 days under the campaign microscope compares to the grueling two year primary that Barack & Hillary went through. Palin has nothing on the 8 year ordeal of George W Bush. That guy was parodied from the start by SNL (Will Ferrell) as a bumbling, drunk frat boy. Bush was skewered through the failings of the Iraq war, two close elections, intel lapses, domestic spying, torture, Katrina, etc... yet the guy still kept his chin up and came to work every day. I can respect that.
Politics is a dirty game. For someone who strives to someday be President, Gov Palin needed to meet her challenges with thick skin, brilliant solutions, and hard work. Resigning early is whithering in the face of challenges and not the stuff that our national leaders are made of.
None of the conventional reasons appears to be in play. Unless the governor has not disclosed the true reason for leaving - such as a brewing scandal, big money deal, or a plan to run for Senate or the White House - we all just sit here and guess.
Palin may actually believe that quitting during the middle of her first term as governor will improve her 2012 prospects. It might actually play well with her ever hardening base of "true believers". But I'm sure anything she does would play well with them - just as it would with the hardcore base of any popular politician.
Let's not forget that Palin has abruptly quit public office before. She was appointed to a state oil & gas commission, but resigned in protest halfway in to her term. Now she has resigned as Governor halfway into her term for what is being explained as fatigue.
Interestingly, Palin has also suggested that her resignation is for Alaska - that it's not fair to the state that so much focus is being put on her and not on the issues at hand. Following that logic, Palin believes that she is actually sacrificing herself for the state as it's the only way to move legislation forward. How messianic of her.
I can't believe I'm saying this, but I completely agree with Karl Rove: I am perplexed by this resignation.
It is a bizarre move for a politician at that level. I would dare say it is an amateur move. It is almost as if Palin was playing a game of checkers while everyone else were playing chess.
Her actions must be disappointing to the GOP. They were hoping to revitalize the party at midterms and have a solid option to Obama in 2012. The GOP needed someone who had a good run as a governor and was ready to step it up at the national level. I'm sure they were looking for Palin to step into this role.
Palin should no longer be a credible candidate for an even more rigorous and vicious office at the national level. If she thought being Gov of Alaska was tough, trying working in the Senate or White House. You simply cannot quit in the middle of your term because you're getting picked on or you feel tired. These are serious jobs that require serious and dedicated individuals - and Palin may have just showed herself to be less than serious.
Time will tell what her true game plan her was. We'll see if a scandal pops up, or if she gets a high dollar gig at Fox News, or if she goes on the speaker circuit, or if she really didn't think this through and fades from public view, or if she announces her candidacy for 2012 a few years early just to get dibs.
I certainly do not believe that her 60 days under the campaign microscope compares to the grueling two year primary that Barack & Hillary went through. Palin has nothing on the 8 year ordeal of George W Bush. That guy was parodied from the start by SNL (Will Ferrell) as a bumbling, drunk frat boy. Bush was skewered through the failings of the Iraq war, two close elections, intel lapses, domestic spying, torture, Katrina, etc... yet the guy still kept his chin up and came to work every day. I can respect that.
Politics is a dirty game. For someone who strives to someday be President, Gov Palin needed to meet her challenges with thick skin, brilliant solutions, and hard work. Resigning early is whithering in the face of challenges and not the stuff that our national leaders are made of.
Thursday, July 2, 2009
eDoorways Part 1 - Introduction
This article is the first in a series that analyzes a company called eDoorways.com (EDWY). I spent some time reviewing the service and considered buying stock, but decided against the purchase for now.
Here's why:
In real life, I have been working in the IT field for over a decade. I've earned some high level certifications as a grunt, worked my way into managing a regional IT dept for a Fortune 250 company, and currently own/operate a web based company focused on a vertical niche (completely unrelated to eDoorways). I've been asked by some angel investors in my company to analyze other start ups that hold promise.
I have no desire to trash EDWY - quite the opposite. I see things in the company that have potential for a viable site. But I also see some big land mines in their path that they're planning to step on. If you are an investor, please read my recommendations before you start commenting. There is real promise here, but you must use your leverage as an investor to effect change in the company.
All the best - Jim
Update: I'm currently an investor in EDWY. I bought in at $.0255 so that I can participate in the investor preview of the software. As of 7/9/09, I'm down a few hundred bucks. No surprise. You can bet I'll sell my initial investment as soon as the pps exceeds $.027.
Here's why:
- Primary Focus
- Target Market
- Technology Scalability
- Enterprise Driven Design
- Achilles Heel
- Recommendations
- Summary
In real life, I have been working in the IT field for over a decade. I've earned some high level certifications as a grunt, worked my way into managing a regional IT dept for a Fortune 250 company, and currently own/operate a web based company focused on a vertical niche (completely unrelated to eDoorways). I've been asked by some angel investors in my company to analyze other start ups that hold promise.
I have no desire to trash EDWY - quite the opposite. I see things in the company that have potential for a viable site. But I also see some big land mines in their path that they're planning to step on. If you are an investor, please read my recommendations before you start commenting. There is real promise here, but you must use your leverage as an investor to effect change in the company.
All the best - Jim
Update: I'm currently an investor in EDWY. I bought in at $.0255 so that I can participate in the investor preview of the software. As of 7/9/09, I'm down a few hundred bucks. No surprise. You can bet I'll sell my initial investment as soon as the pps exceeds $.027.
eDoorways Part 2 - Primary Focus
A Purpose Driven Site
One of the top killers of a .COM venture is the lack of a primary purpose.
When you think of Google, you think of search. eBay - auctions. Linkedin - networking/recruitment. Facebook - social/networking. And so on.
When I first looked at eDoorways.com, I had to go back and re-read the home page. I could not find what the purpose of the site was. I'm sure there is one, but the company has not made the effort to be clear on the primary function of eDoorways. That will haunt them if they go to launch with this fuzzy purpose.
The site talks a lot about how they are like Google, eBay, and MySpace all mixed up in a high speed blender. That's utter nonsense if I've ever heard it. Get serious if you want my investment.
Every site must have a primary purpose that consumers attach to your .com. Without it, you'll be forgotten very quickly.
Examples of Purpose Driven Sites
To get a sense of what I'm talking about, compare the following sites to the screenshots on eDoorway's site.
With these examples above, the user clearly sees what the site is about. Furthermore, the user does not see tons of side clutter and pages full of wigdets and gadgets that confuse the eye and delay usage.
Bing Case Study
A great case study of this clutter phenomenon is Microsoft's evolving search platform that has recently culminated with Bing. Microsoft's first major attempt at a search engine was MSN.com. They made it the default homepage of every Windows/Internet Explorer user. Even with this built in advantage of getting 90% of the world to see you first, little old Google still won the search wars. Then came Live.com. Still, too many things going on, too much noise, and it just couldn't catch up to Google.
Bing has a chance only because it is a different type of search for a different type of purpose. Google has the quick and dirty searching locked up, so Bing has focused on a niche search that combines several related search avenues into the default search results page. For Google and other engines, this is often a secondary step. Bing won't topple Google, but it may have found a way to carve out a viable place in the search world.
Most importantly, the purpose of Bing is clear from the homepage. A big simple page with a pleasing graphic and only one thing to do - Search! Microsoft may have finally learned.
Hunch Case Study
eDoorways should take a close look at Hunch. This is an automated version of consumer decision making that is similar to the EDWY model (consumers ask and live professionals answer in real time).
With Hunch, businesses buy ads through answers and help develop a controlled set of questions that lead the user to predetermined set of answers. It's a clever way to mix non-commercial answers with paid advertisements. As long as the advertisements are relevant and accurate, this should be a great tool for the indecisive.
Get Focused
The final thought I have on this topic is about the common response I've heard from investors in EDWY - "eDoorways is revolutionary and will unify all aspects of consumer and business interaction." I wonder if they have ever said this out loud a few times to hear how silly that sounds.
From the beginning of the commercial Internet, ventures have set off to "unify" the world with a holy grail type web site. ALL HAVE FAILED. It's like chasing the gold at the end of a rainbow or searching for the fountain of youth. Unifying the web is such a vague concept. Successful companies tackle one major need and do it well.
Once they're successful, they often branch out to complimentary services - but never will you see a successful company like Linkedin start holding eBay style actions and selling pet food.
EDWY does not currently have a self-evident purpose. People have to spend a lot of time reading to really "get it". A consumer will give you 5 seconds.
EDWY Advice
EDWY - Get a purpose. Focus on one thing and do it well. And most importantly, be able to explain that one thing in a single phrase.
Investor Homework
Investors - Go to the eDoorways web site and come up with a one sentence description of this company. Post it here, on the Google Finance boards, or on the EDWY corporate blog.
Update: 7/9/09
Since I have not been able to get valid answers from investors on "what does eDoorways do?", I decided to post the phrase that should be on the tip of every investor's tongue:
"eDoorways helps you solve your problems."
That's kind of a generic umbrella, but it clearly communicates the primary focus of the core eDoorways service (SOLVE). IRG will need to help eDoorways more effectively communicate this purpose to the masses.
One of the top killers of a .COM venture is the lack of a primary purpose.
When you think of Google, you think of search. eBay - auctions. Linkedin - networking/recruitment. Facebook - social/networking. And so on.
When I first looked at eDoorways.com, I had to go back and re-read the home page. I could not find what the purpose of the site was. I'm sure there is one, but the company has not made the effort to be clear on the primary function of eDoorways. That will haunt them if they go to launch with this fuzzy purpose.
The site talks a lot about how they are like Google, eBay, and MySpace all mixed up in a high speed blender. That's utter nonsense if I've ever heard it. Get serious if you want my investment.
Every site must have a primary purpose that consumers attach to your .com. Without it, you'll be forgotten very quickly.
Examples of Purpose Driven Sites
To get a sense of what I'm talking about, compare the following sites to the screenshots on eDoorway's site.
With these examples above, the user clearly sees what the site is about. Furthermore, the user does not see tons of side clutter and pages full of wigdets and gadgets that confuse the eye and delay usage.
Bing Case Study
A great case study of this clutter phenomenon is Microsoft's evolving search platform that has recently culminated with Bing. Microsoft's first major attempt at a search engine was MSN.com. They made it the default homepage of every Windows/Internet Explorer user. Even with this built in advantage of getting 90% of the world to see you first, little old Google still won the search wars. Then came Live.com. Still, too many things going on, too much noise, and it just couldn't catch up to Google.
Bing has a chance only because it is a different type of search for a different type of purpose. Google has the quick and dirty searching locked up, so Bing has focused on a niche search that combines several related search avenues into the default search results page. For Google and other engines, this is often a secondary step. Bing won't topple Google, but it may have found a way to carve out a viable place in the search world.
Most importantly, the purpose of Bing is clear from the homepage. A big simple page with a pleasing graphic and only one thing to do - Search! Microsoft may have finally learned.
Hunch Case Study
eDoorways should take a close look at Hunch. This is an automated version of consumer decision making that is similar to the EDWY model (consumers ask and live professionals answer in real time).
With Hunch, businesses buy ads through answers and help develop a controlled set of questions that lead the user to predetermined set of answers. It's a clever way to mix non-commercial answers with paid advertisements. As long as the advertisements are relevant and accurate, this should be a great tool for the indecisive.
Get Focused
The final thought I have on this topic is about the common response I've heard from investors in EDWY - "eDoorways is revolutionary and will unify all aspects of consumer and business interaction." I wonder if they have ever said this out loud a few times to hear how silly that sounds.
From the beginning of the commercial Internet, ventures have set off to "unify" the world with a holy grail type web site. ALL HAVE FAILED. It's like chasing the gold at the end of a rainbow or searching for the fountain of youth. Unifying the web is such a vague concept. Successful companies tackle one major need and do it well.
Once they're successful, they often branch out to complimentary services - but never will you see a successful company like Linkedin start holding eBay style actions and selling pet food.
EDWY does not currently have a self-evident purpose. People have to spend a lot of time reading to really "get it". A consumer will give you 5 seconds.
EDWY Advice
EDWY - Get a purpose. Focus on one thing and do it well. And most importantly, be able to explain that one thing in a single phrase.
Investor Homework
Investors - Go to the eDoorways web site and come up with a one sentence description of this company. Post it here, on the Google Finance boards, or on the EDWY corporate blog.
Update: 7/9/09
Since I have not been able to get valid answers from investors on "what does eDoorways do?", I decided to post the phrase that should be on the tip of every investor's tongue:
"eDoorways helps you solve your problems."
That's kind of a generic umbrella, but it clearly communicates the primary focus of the core eDoorways service (SOLVE). IRG will need to help eDoorways more effectively communicate this purpose to the masses.
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