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October 2005

October 31, 2005

Turn on a Dime

Tomorrow Bill Gates (convicted monopolist) and Ray Ozzie (respect) are expected to announce the third coming of Microsoft. Just as they turned a massive organization on a dime to embrace the Internet, they will break with the past to offer software as a service. Initially it may be a storage offering, communications package for SMBs and CRM because of competitive pressure, but this pressure is from all sides.

The difference this time is it requires breaking something, not venturing out into whitespace. Steve Gillmor may be right that they are discounting the defensibility of the Office empire. But if they shift the value to serviced software, they also directly undercut their VARs, the distribution muscle that profits from overcoming the complexity of bad software.

As an entrepreneur with software as a service as an important part of my business model, I'm not worried in the slightest. Initially it is FUDing out the next rev of the web. But then the task is making stuff simple because the burden shifts back to them to service it. And with this move the game is on, on the turf of other credible Giants. Sergey Brin wasn't wrong when he said at Web 2.0 that Google Office, with the disclaimer that it may not exist, wouldn't be anything like the old Office.

You see, replicating Word for the web isn't social computing. Office and PC era apps do a great job serving the lone producer's need to complete finished documents. But the process of creating that document is only served through clumsy means (read: email). The next generation of productivity gains will come from something new.

I'd also make an argument that the business model for software is shifting to a blend of software as service delivered as hosted or appliance with the production dynamics of open source. At the end of John Markoff's book on the birth of the PC era, he juxtaposed the freedom to share sought by Hobbyists vs. the profit motive of Microsoft as the defining conflict. As that era comes to a close, a compromise has been found in commercial open source.

I think Microsoft's turn was first made when they readdressed the flaws in their security model. They had embraced the Internet, but with a weakness that today provides a negative user experience. Spam, spyware, adware and viruses plague the PC and Microsoft is held accountable for it. The opportunity they realized is that trusted computing models can put them back in control of the network. They will have their own DRM'ed lightnet in which any competing software as service or unsanctioned content vendor will have to get through them to the desktop. Not just through the web, but as deep as P2P itself.

Jerry Michalski said something brilliantly simple the other week at a collaboration conference. That we are certainly not waiting for Vista, we have lost trust in these guys and it's time to get these things out of the OS.

Jonas Luster Joins Socialtext

Many of you already know Jonas Luster, known quantity in open source and social software, who just joined Socialtext as our Open Source Community Facilitator.

Jonas has played an active role in OSS projects including Apache, mod_ruby and Drupal.  He is has worked with Lycos, CollabNet, Technorati and Blizzard Entertainment.  He got his doctorate in Social Psychology and Criminology from the University of Amsterdam, and is an occasional guest lecturer at UofA.

We could think of no one better to work the community and make it fun at the same time.

Come by and see Jonas at Wiki Wednesday.

October 30, 2005

Social Valley

I only got to pop in and out of TagCamp twice this weekend.  But it's been great following the notes on the wikiIngy and Casey West did a Kwiki microformat plugin for hCard, a simple way to generate a ContactList wiki style with Ajax goodness.  Go play with it.

Someone told me I should blog about how happenings made the Valley social again, at least in code.  Funny how we used to stay at work too long to be with our families, and now we have ad hoc events instead.  The smart ones at least encourage kids to participate.  Lately I've been thinking about holding KidCamp.  That's right, camp, for kids, a novel idea.

As an aside, yesterday was sports day.  Got to coach my daughter's soccer game and stopped by TagCamp with her for a bit.  Walked over to the UCLA-Stanford football game witness one of greatest comebacks ever. When Stanford led 24-3 with 7:03 remaining, I left a game early for the first time I can remember to drownd sorrows.  From a tailgate (I didn't hold one this year) I listened to roars and the radio as UCLA came back to send it into overtime.  Ran back in the stadium to witness the momentum that shouldn't have resulted a 30-27 victory.  What a 4th quarter team.  Even the Trojans are concerned with this undefeated dark horse.  There's a reason for the colors of this blog.

The other Football game had LA on top.  The San Jose Earthquakes had the best season record, and got ousted from the MLS finals by archrival LA Galaxy (.500 record, almost a wildcard, played for a tie).  Hard to be an MLS fan, but today I'm just nursing a hangover.

This week the whole team is in town for an on-site retreat.  Many will meet F2F for the first time, and you can at Wiki Wednesday.

October 28, 2005

Wikisphere

The consumer wiki space just heated up.  Paid Content has the news that Wikisphere, founded by a guy from Blue Nile, raised $5.2 million from Trinity Ventures and others.  This is a very good thing for the market, more wiki good, but I've only see one consumer wiki model that made sense to me (hint: obviously it's not mine) and this isn't it.

UPDATE: More from the local paper.

On Time Departure

It was abundantly clear last night when my connection was delayed that the airline industry is running on the wrong metrics.  Half of the plane missed their connecting flight, most by minutes, when doors were still open, but gates closed -- for sake of on-time-departure.  The last planes left within a half an hour and we were left stranded in Virginia without hotel rooms in the vicinity. 

On Time Departure rankings have become the quality obsession for the industry.  Holding for connections used to be the practice.  Today you get cascading failure that abandons customers, but still credits airlines as though they are doing their job.  Planes are mere vessels, the average measure gets gamed, the system is fragile in hubbed networks -- and you would think that on-time-delivery of individuals might be the goal.

The basic conflict isn't that loosing 12 minutes in their system cost me 12 hours in mine.  Airline shareholders count on detailed yield management systems for profitability that don't account for the service-profit chain.  This should be a priority for United (79% OTD) shareholders who are depending upon customer loyalty and consideration for Northwest (77.4% OTD)shareholders considering outsourcing their front line employees.

Wiki Wednesday November 2nd

The whole Socialtext team is in town for an on-site retreat next week, so we are having this month's Wiki Wednesday in Palo Alto.  Some great suprise guests are coming by.  Mark the date and sign up on the wiki.

Also, a few of us are coming to TagCamp this weekend. Unfortunately it overlaps with the UCLA-Stanford and Earthquakes-Galaxy football games, but I'll stop by for some geek time.

October 25, 2005

Enterprise Podcasting with IBM

Podtech.net, the best podcaster in tech, has been making some moves to serve the enterprise.  They have been using our office as a war room, so it's fun watching them grow like gangbusters.  The big news is IBM has enabled Podcasting enterprise-wide.  John Furrier has an interview with the IBM corporate podcasting team.

When I gave a talk to some IBM researchers a while ago, it was the first time I was asked in a non-public forum to have the session podcasted.  Maybe it was just a brain suck, but it is a way of making meetings accessible through time-shifting, and with 130k employees it should become a vibrant stream of conversations.

BTW, my interview on Podtech from the beginning of the month is still in the top three.

October 24, 2005

Bubblop

David Hornik is calling today's market Bubble 2.0, or Built to be Bought:

I even had one company pitch me at the Web 2.0 Conference that if all went well they would be acquired by Odeo (don't get me wrong, I'm a big fan of Ev's and I certainly think that podcasting is exciting, but it strikes me as a tad premature to bet your company's future on being acquired by a pre-revenue company).

You will recall the last time Venture Blog called a bubble, a bubblet that centered around social network, and they were right.

I'm wondering for the record, if I was the first to call this one, five months ago.

October 23, 2005

Long-armed Law of the Wiki

I'm just an amateur, but it seems to me that Mike Langberg is afraid of loosing his job.  Can't blame him, The Mercury News just went through a round of layoffs and print media economics are in shambles.  But one of my favorite local columnists took the easy way out when buying into Nick Carr's argument on the amorality of Web 2.0 with a column called An Internet fed mostly by amateurs is frightening.

Oh, wait, I am a pro, at least about one thing -- wikis.  So I guess I have to speak up about this:

Carr added some perspective last week by proposing what he called the Law of the Wiki: ``Output quality declines as the number of contributors increases. Making matters worse, the best contributors will tend to become more and more alienated as they watch their work get mucked up by the knuckleheads, and they'll eventually stop contributing altogether, leading to a further fall in quality.''

Wrong.

I'm very much on Carr's side of the fence. I don't want to read blogs by political extremists, listen to podcasts recorded by droning amateurs, or watch videos produced by talentless would-be directors -- even though the Internet makes all that possible.

I want to get my news from highly skilled professionals, listen to music by the world's most brilliant performers and composers, and be entertained by big-budget Hollywood extravaganzas.

Of course, I'm biased. I make my living writing this column, and my paycheck is threatened if everyone decides freely available blogs -- even at lesser quality -- are an acceptable substitute.

Output quality increases with edits over time.  Yes, you can find one edit where it declines, but odds are the next edit will revert or improve it.  Now I don't know what quality is, but I know it when I see it, and I'm a lot better seeing it with a group.  It's not that Wikipedia is faster, it's that the community process that once wondered about quantity continues to raise the bar with quality.  Don't take Jimmy Wales' comment that two pages need improvement as a sign of systemic failure (no, I haven't talked with him about it).  Authority is another matter

See my response to Carr for more on how Wikipedia works. 

Back to being an amateur. The frickin Internet was made by amateurs.  I'm in good company.  Mike should know that, given the exposure he has in the Silicon Valley.  Or from his peers and former colleagues. Mike may be writing tongue-in-cheek, but 'Nuff said.

Carr's argument concerns me for the same reason IT Doesn't Matter did.  The claim then was that IT no longer provided competitive advantage, music to the ears of every other industry under disruption.  JSB and Hagel and others tore apart that argument, fortunately, and today those other industries are working with tech to invest in competitive advantage again.  The concern is it is an argument that will resonate with the disrupted, gaining a core constituency and create a false divide the engenders further disruption.

Case in point, let's get back to Mike's job.  If every columnist seizes on the threat of disruption that social media represents and and argues for the status quo, they will be left in it.  This can easily seep into the newsroom and when the publisher side of media relates the disruption to revenue, a core bias can set in (note that Mike more than disclosed the inherent bias -- and I have to disclaim that I wish him well and it is unfortunate I am using his single column as an example). 

Don't argue for quality, deliver it.  There will always be demand for quality.  The masses are not asses.  This isn't a broadcast degradation of news into entertainment.  Readers are becoming more savvy, not less.

Social media presents an opportunity for mainstream media to save itself -- not from blogs or people spending more time online -- but from a 20 year trend of bad economics.  If print media asserts it will stand on it's brand it will end up on the cutting room floor.  Now is the time for piloting things where the economics were the barrier before, because amateurs are here to participate.

UPDATE: Techdirt, Jeff Jarvis, Om, Mitch, Tim

October 21, 2005

Stickers are the new Business Card

Rafe has the scoop.

Speaking Up

Yesterday I was doing an interview and was asked about the prospect of social software for government.  I pointed out use cases for activism, government as an organization and how Socialtext had three prominent Democratic campaigns as customers.  Unfortunately and admittedly Dean, Kerry and Raseij lost.

I was asked if it was okay to have a political bias in business.  I explained that we had a decision point on if to serve a Republican campaign as a customer when the business was just four founders.  We did, and using the metaphor of a phone company, instilled a principle of non-discrimination for customers.

But just because you are in business does not mean that you should not strongly express your views as an individual and citizen.  For that, I thank Adam Bosworth for speaking up.

October 20, 2005

Legal Resources for Startups

The Startup Exchange keeps on cooking. We just got an anonymous contribution to the public domain from a respected law firm of a mutual and unilateral NDA to start a legal resources section of the wiki. Use at your own risk.

October 17, 2005

Ward Cunningham on the Crucible of Creativity

UPDATE: Ward left Microsoft

Impressionistic transcript from Ward Cunningham's opening keynote at wikisym...

I don't need to explain wiki to this audience.  It;'s so tiny it doesn't need explanation, but you don't understand it until you have been there and done that.  It's you and the community that participates that makes it real, gives me perhaps too much credit.  My hope is that wiki becomes a totem for a way of interacting with people.  Tradition in the work world has been more top down, while wiki, standing for the Internet, is becoming a model for a new way of work.  Largely driven by reduced communication costs, it changes what needs to be done and how it's going to get done.  I hope that the wiki nature, if not the wiki code, makes some contribution.

A wiki is a work sustained by a community.  Often asked about difference between wiki and blog. Something tangible is ve  The blogosphere is the magic that happens above blogs -- the blogosphere is a community that might produce a work.  Whereas a wikis a work that might produce a community.  It's all just people communicating.

One's words are a gift to the community.  For the wiki nature to take whole, you have to let go of your words.  You have to be okay with that.  This goes into the name, called refactoring.  To collaborate on a work, one must trust. The reason the cooperation happens is we are people and it is deep in our nature to do things together.  Important to make a distinction.  Cooperation has a transactional nature, we agree it is a mutual good.  Collaboration is deeper, we don't know what the transaction is, or if there is one, but if I give of myself to thsi collablration, some good will come out of it.  You have to trust somebody to collaborate. With wiki, you have to trust people more than you have any reason to trust them. In 1995, it was a safer environment, don't know if I could have launched wiki today. 

Refactoring makes the work supple. Word borrowed from mathematics, not going to change the meaning of the work, but change it so I can understand it better.  Continuous refactoring.  Putting a new feature into a program is important, but refactoring so new features can be added in the future is equally important.  The ability to do things in the future is something that I consider suppleness, like clay your hands that accepts your expression.  Programs and documents get brittle very quickly.  Wiki imagines a more dynamic environment where we accept change, with the aid of a computer not make that dramatic, embraces hypertext which lets a document start small and grow while always being the right size.  When there are two ideas in the page, split them into different pages with new names, so a third page can reference both.  This is built into the web in some sense, it's just exploited in a wiki.    Phenomenal that so much as been done in a tiny text interface, writing an encyclopedia.  I have to apologize as a computer scientist that we have to go through that, but also says how strong the desire is for people to work together, but I look forward to the day where we don't have to do it just this way.

I was in favor of anonymity when I started this.  Anonymity relieves refactoring friction.  Have learned that people want to sign things.  But try to write in a way where you don't have to know who said it.  But when someone who is not in a giving mood uses anonymity (spammers), that abuse can drive us away from anonymity.  But I hope we can drive the ill-intended out without having to give up the openness.    Can one trust the anonymous?  If you think of trust as believing people will behave in the way they did before, it seems dependent upon identity, but it may not be imporant to know if online behavior is consistent with offline behavior.  But knowing what is going to happen when you give something away is significant.

The web has been an experiment in anonymity.  Conscious design of low level protocols.  Lots of identity infrastructure has been created to make it an online shopping mall, which makes it unpleasant for all of us because the machinery isn't that great.

Result: people can and do trust works produced by people they don't know. The real world is still trying to figure out how Wikipedia works.  A fantastic resource.  Open source is produced by people that you can't track down, but you can trust it in very deep ways.  People can trust works by people they don't know in this low communication cost environment.

Result: the clubby days of friendly internet are over. Lots of technical questions about to sustain something we have experienced in a more complicated environment. 

Opportunity: reputation systems for the creative (non-transactional). Reputation systems are an umbrella term for where the computer keeps more track over who you are and trys to make that visible in controlled ways to other people.  eBay as an outstanding example, creating a space that didn't exist before.  Again, going back to collaboration vs. cooperation.  Doing this well depends upon excellent collaboraiton between the scientific community and the practitioners.  Hopes this symposium becomes the center of this exchange.

Opportunity: organizational forms supporting creative work. The form we have today is a legacy from GM.  Corporations aggregate and deploy capital to make things happen.  Necessary back when communication was more expensive in this country.  Top down hierarchies make communication work when it is expensive, I hope that wiki can be a flagship in this move in the industry to produce computer support for this kind of work and evolve organizational forms.

Eugene Kim asks about the conflict between anonymity and reputation. He calls it an opportunity because it isn't reconciled.  The first thing we think of with reputation will be wrong and has adverse impacts.  Do it by watching the impact it has on people in the area of creativity.  Doesn't have to be complicated, but careful with what it reveals.  If you walk in

Richard Gabriel: reputation can be attached to an individual or to something, such as words.  The reputation can be attached to the words can enable anonymity.  Ward says great, idea -- take notes.

On moderating change in the original wiki over the past year, and the tools he created for it (the following is probably only of interest to wiki moderators)...
Less than a year ago, my site, which had been growing exponentially, got to the point where things were happening on the site, spam.  Where a dedicated set of volunteers had been defending the site, the posting of spam links put a load on them that wore them out.  Combined with that you had arguments about page content, he left it to be a community standard, but bathroom humor pages were fended by programs made by programmers, increasing page edits.  Finally had some people that wanted to behave by taking from the community.  Had all three going on this year.  Next thing I know, I get lots of email asking to shut it off, go read-only and call the experiment done.  In the midst of this I was trying to have a career, but this was on the brink.  Neat thing about exponentials is that they go on and go on and then suddenly a crisis.  Didn't want to go into a programming contest.  Created a community within a community, put the smallest amount of login I could.  Captchas, or if you are from a place on the net known for abuse, you had to go through people that were close to Ward.  A group of people that were not anonymous, asked their postal address to make a strong connection between the cyberworld and real world.  Also asked a modest but non-trivial contribution to the running of the site, $100.  People were willing to chip in.  There are about a dozen people on the site that I consider Stewards. 

The site hit a plateau, changed programming purposefully, would not be disappointed if it didn't keep growing.  Will have value as a site, but if I made it read-only it would ruin the way people really read it.  The question is what you want to change in the world before you plateau.  Inspired by Clay Shirky's a group is it's own worse enemy to develop the Steward process and foster a core community collaboratively.  One question is how open it should be, the Free Speech question, people submitted paragraphs between this is about programming or this is about free expression, turns out by letting people sort them, the community is more about free expression.  1/3 or 1/2 of them help moderate changes.  Tried to send the password out through a trust network, but there are modern ways to do this better. 

Shows backend housecleaning tools: Controls, Browsing, Editing, Visualizations, Queries and Monitors. Originally Recent Changes was just another page, so people would annotate them, so it was informative, not mechanical.  The only editing people did in recent changes was the deleting older changes or silly gaming, so made it computer generated.  Shows a dashboard for within seconds, minutes and hours where you can see number of edits to see when there is a massive change, click on it to see the diff, and have revert button.  After reverting something, gives suggestion for what else you might revert (changes from the same IP address).  Big guns for an edit war are good for the good guys. Visualization of how much posting is going on, a grid with days as rows and hours by column with the edit count as the variable.  Shows a cool Sparklines-like view of activity per IP address over time.  Shows some more advanced tools I think we are not supposed to blog about to tip his hand to spammers.

Wikisym

I'm in San Diego for Wikisym, the first international symposium on wikis to panel alongside Ward Cunningham, Jimmy Wales and Sunir Shah on the future of wikis.  The event brings together peer-reviewed research and practitioners participation.  The event is co-located with OOPSLA (a ACM programming conference that we provided an Eventspace for last year) which may be a hat tip to the geeky past of wikis.

I'm sorry I can't be with my friends at BlogOn in NYC, the first one was a blast, but Matt Mahoney is there from Socialtext.  We'll find a way to bring the blog and wiki worlds together soon.

October 15, 2005

AO Interview

AlwaysOn has a five part interview with me about all kinds of things:

Part One: Why Wiki?
Part Two: Kill Your E-mail, Wiki Wiki!
Part Three: Big Brother Is Watching
Part Four: Open-Source Kwiki Equals Money in the Bank
Part Five: Will Wikis Enter the Mainstream?

October 10, 2005

The World is Spiky

John Hagel has a great account of a spike heading for your aggregator:

Tom in his best-selling new book says “The World Is Flat” and Richard in a new article in the October 2005 issue of Atlantic Monthly asserts “The World Is Spiky”...Richard focuses on one particular quote from Tom’s book: “In a flat world you can innovate without having to emigrate.”  Richard responds that location still matters and that, by a variety of measures, the world is extremely spiky – meaning that activity is very concentrated in a relatively few locations.

Let me play Harry and introduce a frothy market proof point from today's Boston Globe (I'm also quoted in it on the bottom-up aspect of Web 2.0):

Web 2.0 companies seem to be concentrated in Silicon Valley, not Boston. Mike Hirshland, a general partner at Polaris Venture Partners in Waltham, told me he has been doing a lot of prospecting for deals on the West Coast and expects to finalize an investment in a Web 2.0-type company soon.

''You don't hear the term Web 2.0 much in New England," he said. The lone local company that was demonstrating its technology at the conference was Brightcove Networks, a Cambridge firm that is building a system to enable anyone to publish video on the Web and then make money when it's viewed, either by inserting ads or charging on a pay-per-view or subscription basis.

Now this may be one VC positioning himself for dealflow, but location matters for some things.  The In the Valley, the difference is that open source and easy group forming has combined to foster a salon of code atmosphere that harkens back to the days of homebrew yore.  There is a culture of sharing that underpins today's commercial spike.

The end of John Markoff's book pits hobbyists (Homebrew) vs. commercialization (Microsoft) as the conflict of our industry for years to come. A balance has been struck with commercial open source that supports both freedom and profit/

Blog to Email

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October 09, 2005

More Entrepreneur Resources

On the Entrepreneur Exchange, I started a section on Entrepreneurship, and someone started an Entrepreneur Blogroll.

Then someone started a section on Angel Investors including an Angel Blogroll and Angel Groups.  Great idea.  You may recall that I met my Angels through blogging.

October 08, 2005

Design + Social Infrastructure

Matt Mahoney, on the Web2con wiki page for the Ajax business case session:

What's next: Design + Social Infrastructure

If Web 2.0, whatever it is, becomes a worthwhile investment for businesses, two things must occur.

* People must (want to) begin using something
* People must (want to) continue using it

Few tools clear both hurdles in significant ways.

Peter and Jesse from Adapative Path say technology has predominantly been carrying the torch, so far, to Web 2.0, and what's been missing is the discipline of design -- simplicity in experience. They're right. Purely simple user experience (with high efficacy) will decide uptake. Simplicity will drive first use, and use #2-5.

Pete Kaminski sees the other signficant defining signature of Web 2.0 -- groups of people finding each other to get things done they care about. When people have simple, useful ways to connect, they do. The social infrastructure will drive continued use.

VC Blogroll

I started a VC Blogroll on the Entrepreneur Exchange.  I know I'm missing some folks, so please contribute a link if you can.

October 07, 2005

Pierre Omidyar at Web 2.0

Full disclosure, Omidyar Network is an investor in Socialtext.

ON invested in FM Publishing too. Could have gotten a higher valuation if it got Pierre out of speaking.

From the beginning at eBay I knew that once it had begun becoming a business, if I was lucky I could build it to a certain point and then hand it over to someone for the next level. An issue of bringing in new blood to build something new with the same values. Not needing to be involved in every decision, Interested in how we coudl take the learnings at eBay and apply them to other sectors.

Started a foundation. Trying to make the world a better place in the traditional way. Started thinking that if you want to have an impact in the real world, why do you have to in this sector? When you look at eBay, after 10 years, 150 million customers have learned they can trust a complete stranger. That a business can have this very social impact of a slightly higher level of trust was intriguing. Reorganized as ON, expanded into for profit ways.

JBat: Now in the VC Biz?

A little different, it's a mission based fund. We are about fostering individual self-empowerment. The fund is $400M, all my money, going to do something good with this, investing over 5 years.

JBat: I'm not good with math. Oops, shouldn't say that in front of our funder.

Looking for businesses that can only be successful if they have a positive social good. We are building tools with new technology to bring people together. Adam Smith: given the right environment with people pursuing their self interest leads to an increase in the general welfare. In fact, look at the profit generated in an economic system, if the environment is right, then the existence of profit is evidence of general welfare. If the baker can sell bread to a shoemaker, he can feed his family, and also apply the profit to buy shoes. It's more complex than that, but the principle holds true.

We look for three things: does it have a level playing field? does it foster interaction, connecting and communication around shared interests? do the participants have a sense of ownership for what is going on?

Then we look at the business model. Is there a revenue model that can only be successful if it maintains the three values and enables the social impact.

For instance with a business about trade, and you need people to trust one another, the model predicated if the trade going through.

We are pretty rigorous (I can testify to that) in due diligence. Tighter screen because of the mission fit, which also limits the number of opportunities. We are doing this for a social impact on the world. Need to examine the business model that has the social impact.

In the social sector there has been a lot of work on trying to measure the social return. Some things easy to measure (how many people did you feed), but the game changing things you can't measure. Going back to Adam Smith, with the right environment (criteria for investment), then evidence of profit is fulfilling the mission.

There are so many creative people innovating when the barrier is lower. Fundamentally a good thing, but more competitors, but that's a good thing.

Because of our challenge of looking for this tight fit, it is a challenge to invest as much as we want.

If you are a company like Google or others building infrastructure for the future, you have to be careful. Want to foster innovation, such as with eBay we have an API program with 20k developers, 45% of listings come from that API program. Trying to foster innovation outside the company's walls. No matter how great we are internally, we need to give people tools so we can foster more innovation.

Would invest in eBay now. People connecting around shared interests, the commonality, is a result that you couldn't have done 10 years ago.

We look at management team and other more traditional and critical criteria. I personally have less concern about investing in the one winner in a category, or having bets in the same space. Can understand if an entrepreneur has a problem with that.

There has to be competition for the pursuit of self interest to work. No externalities that are not priced into the product that you are selling. Market failures. Commercial sector has the ability make the world a better place, but governmental regulation is responsible for fostering the right environment. As an investor, we want government to help understand it's responsibility, while being a good citizen in the private sector and not distort markets.

An organization that only focuses on their social good has difficulty scaling compared to those that focus on profits. With both, you get great people and you set them loose. That's what we did at eBay. With the full confidence that as they were pursuing returns they are making the world a better place.

On disasters, we haven't looked at preparedness in a very direct way. Have concern about general preparedness. The pandemic will present some very unique challenges.

JBat: FM Publishing is aggregating high quality blogs and hopefully make it pay.

Web 2.0 is about putting the tools in peoples hands, making them widely available, letting them work together share and collaborate. Start with the belief that people are good, connecting them together is inherently good also, and it will change the world.

Scott Cook on simplicity

A monk in the 14th century invented accounting and we've been dealing with it's complexity since. That's what Quicken does. Shows a series of charts and examples where a focus on simplicity has gained them market leadership.

When building a TurboTax, at first they used the language of the IRS instead of using what people use, redesigned and it gained them a huge increase in user satisfaction.

Quickbooks used by 34 of the Fortune 100, including NCR, Sprint, and the Girl Scouts. Initially to automate the work processes in small customers. A global 500 division with $1.2 billion in procurement. ERP solution almost ready since 1996, nightmare of email and spreadsheet. One guy in one weekend, tailored to fit, no training, ASP. Now there are 600 people who have visibility into the process with instant audit-ability.

Talks about Facebook-like profiles inside companies to find each other based on their specialties.

Their Newest thing -- Quicken Medical Expense Manager. Dan Robinson had a child with congenital defects and had to deal with real complexity, spent $1M in the first year. Had to deal with the medical billing problem. Has pre-canned dispute letters for when someone is ripping you off. In line with Intuit's mission: Change live so profoundly that people can't imagine going back to the old way.

Entrepreneur Exchange

Entrepreneurship is the discipline of starting a company in absence of resources.  Today the Entrepreneur Exchange opened, a renewable resource (wiki) for entrepreneurs.

Most entrepreneurs don't fully understand their own power, especially when they work together.  For example, Venture Capital is an asynchronous market, which should favor the entrepreneur.  You will always know more about your business than they can.  But there is a certain fear first time entrepreneurs have in dealing with VCs, not because they don't know their business, but the process of raising and working with venture capital has been relatively opaque.  This is changing with the rise of VC bloggers, many of them offering their content under Creative Commons licensing, openly sharing otherwise private equity insight.  So the first part of the exchange aggregates some of the best links and resources on venture capital.  I hope VCs jump in and contribute themselves (especially because there is a wiki page about a number of VC firms).

The second starting point of the Exchange is a StartUp Kit created by Andy Stack -- a set of wiki templates and best practices to help entrepreneurs manage formation and growth.  Andy co-founded Stata Labs which was acquired by Yahoo.  Now he is sharing his expertise on how to manage a company lifecycle, timing your spend and organization with small investments that make all the difference when you are acquired.  Andy used Socialtext for a couple of years at Stata, including coordinating due diligence for the acquisition, so he has thought through not only the practices, but the tool.

These two resources are really just starting points.  There is no social contract for the space yet, just a creative commons license.  Take advantage of it, contribute a bit and let's see how this grows.

Wiki Textbooks

Vinod Khosla, a believer in open sourcing everything, just advocated applying the Wikipedia model to textbooks.

Vinod, we are already with you.

Random Rants

Found someone's notepad at the Web 2.0 conference...

One thing that's different this year is talk of infrastructure. One stealth mode startup sees the need for different data center capabilities for social software. Rackable was brought on the big stage. This cycle happened during the boom, and in fact, it's the infrastructure guys that are safer bets.

Everytime the AT&T Research guy gives a talk, he says, "It's what I call a [insert common technology term here]."

If you see me wince, it's because I cracked a rib playing soccer this weekend. Hard to breath, not just because there isn't much oxygen here.

Was kind of weird how many friends I had to congrat for striking gold, the most bubble feeling I've had yet.

Mary Hodder pointed out, do you have to have an acquisition to be cool these days?

The buzzword drinking game Wednesday night during the MS talk started with a single toast to Long Tail. My head still hurts.

Sergey's drop in session was one of the better conversations, as often is when things are not planned. His comments that Office for the Web wasn't the right thing were spot on. "Taking previous generation of technologies and porting them to the web (e.g. mini computer on the web with ajax) doesn't make sense. The tech we have today lets us do new and better things that lets us accomplish the same things and more."

Menatizate.

Is the only business model get acquired? Until you wake up and remember revenue.

The NetGen panel was the wisest. Especially the freshman from Cal that uses Facebook and MySpace to help do her homework. Or the guy who would spend his $100 on burritos and gasoline.

"We played in the park and we always played better when we played free. I think it's a good thing to share and give people something. Whets their appetite too...if they go to the trouble to bring a machine and tape it, they should have it."

October 05, 2005

Working Together, Wherever They Are

Steve Lohr in the NY Times on the collaboration payoff:

...The second round of Internet innovation appears to be here. Companies large and small experienced soaring productivity in the 90's as the Web made worlds of information available at the click of a mouse, and the Internet drastically reduced the cost of communicating and doing business with someone on the next floor or the next continent. That cost-cutting payoff continues to spread. But in the next wave, companies are embracing the potential of networked computing to let workers share their knowledge more efficiently as they nurture new ideas, new products and new ways to digitally automate all sorts of tasks.

Companies are drawing on collaborative models that first blossomed in nonbusiness settings, from online games to open-source software projects to the so-called wiki encyclopedias and blogs to speed up innovation. This networked collaboration is creating new opportunities and disrupting industries. New styles of work and, in business schools, new theories of innovation are rising.

"The big payoff for the future will be in helping knowledge workers to be more inventive and creative, and to get those innovations into the marketplace," said Erik Brynjolfsson, a professor of managerial economics at the Sloan School of Management at the Massachusetts Institute of Technology. "That's where a wealthy nation like the United States is ultimately going to have to seek its competitive advantage."

Open-source software is a pioneering example of the kind of collaborative work made possible by the Internet. Networks of far-flung programmers share code and ideas to constantly improve and debug their software. So the open-source Linux operating system is challenging Microsoft's Windows, a product backed by one of the world's richest corporations.

The open-source formula is being applied in one field after another. Projects range from Wikipedia, an open-source encyclopedia, to Biological Innovation for Open Society, or BIOS, an open-source initiative in biotechnology. Corporations are rapidly adopting software tools intended to nurture collaborative work, including wikis, blogs, instant messaging, Web-based conferencing and peer-to-peer programs.

So far, economists say that only a fraction of the cost-cutting opportunity from networked computing has been captured. Looking ahead, they say, the United States must master how to use networked collaboration to accelerate innovation...

Dresdner Kleinwort Wasserstein, an investment bank, has been using wiki software, which lets users collaborate on Web pages, to encourage teamwork among its traders and bankers around the world. The wiki software, from Socialtext, a start-up, has replaced e-mail and conference calls for tasks like pricing international bond offerings. "It's a virtual work space for tapping the expertise and knowledge of more people," said P. J. Rangaswami, chief information officer of Dresdner Kleinwort Wasserstein. "Conference calls and e-mail just aren't suited for collaborative work."

I quoted heavily here, but go read the whole thing.

Web Dawn

The day begins at 8:30 with me on VC 2.0: An Entrepreneur's Market? and Pete on Applications 2.0: AJAX and Beyond (The Business Case), or you could listen to MSN talking about Building a Developer EcoSystem.

October 04, 2005

Email 2.0

Tim O'Reilly (I'm not worthy! -- huh, that kind of rhymes) picks up on my email signature meme:

This is a first for me, but I expect it will eventually become common. I received an email with the following addition to the signature block:

this email is: [ ] bloggable [x] ask first [ ] private

Now that's a social hack that could one day be replaced by a technical hack. Email messages could have "bloggable" as a mime-type for example, and forwarding to a blog client would set up an entry. Lacking that mime-type, you'd have to resort to cut and paste, as now...

I post this here not for sake of memetic vanity, but to make a point. The reason we are building Web 2.0 is because we were not able to build Email 2.0. The first web didn't support our social needs, so we used email for everything. But we couldn't really hack it. Most social software has by now adapted to email, but email could never have adapted to it.

October 03, 2005

Jimmy Wales Joins Socialtext Board

Really great news.  Jimmy Wales, founder of Wikipedia, has joined our Board of Directors.

SynchroEdit the Web

Christopher Allen and Kalle Alm have been hard at work creating Synchroedit -- an open source synchronous editor for the web.  Socialtext sponsored this open source project because many of us have waited years for a SubEthaEdit for the web that we can hack upon.  Unfortunately you have to wait a bit more, it still needs IE support and hasn't been integrated with Kwiki and Socialtext, but you can go play with it now. 

The developer wiki is here.

UPDATE: Chris Allen, in comments:

One key point that people seem to be missing is that SynchroEdit is an open source project. This means that we are making available the source code, and publishing the protocol, so that this capability can be added to any web service or application.

Thus comparisons to JotLive and Writely are somewhat orthagonal. They are web services. If they wanted to, there is no reason why they couldn't implement our source code as part of their product.

The goal of SynchroEdit is to offer the capabilitity of synchronous editing as broadly as possible.

Wiki BoF

Socialtext is hosting a Wiki BoF session with Ward Cunningham as our guest of honor. 

Thursday at 8 p.m at Jillians in the Metreon.  Sign up on the Web2con wiki today, as space is a bit limited.

We also folded our after hours party into the del.icio.us, WordPress, wink, Flock, Technorati, Odeo and Flickr mashup so we could hang out with our friends.

Web 2.0 Wiki

The Web 2.0 Wiki is up and running.

Start by creating a profile and adding your blog to the list.

Just like the first Web2con, Socialtext is providing an eventspace. This year, we have added the open source wikiwyg editor -- just double-click to edit.

Writeboard

Neat. Best advice I could give those guys, seeing how the market is big enough for all of us, is to integrate wikiwyg.

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