October 24th, 2006

You are currently browsing the articles from the VoIP Digest written on October 24th, 2006.

DIY Search from Google

It has been a challenge but I’ve tried not to jump on the bandwagon when Google unveils yet another tool (e.g. Google Spreadsheets, Google Base, etc.) but I have to admit the news about its newest creation from Google’s R&D lab, Google Custom Search Engine, is pretty cool. Basically, Google has rolled out a service that lets you define the Web sites you want included in a search. So, for example, if you’re really into food, you can use tags to create a personalized vertical tool that only searches food-related sites. And there’s more: Google has also created a way to place this search widget on a Web site or blog so it can be offered to visitors with the same interests. While many of Google’s new tools have been uninspiring or simply duds, DIY search is newsworthy because it’s all about vertical search, which has been getting more attention as people look for tools to make search even more effective and productive. Now, Google DIY is interesting but I wonder if it’s a sign of things to come from Google about its vertical search plans. For example, what if Google launched Google Travel Search for people interested in booking trips and learning more about the world around them. This would be a great way for Google to establish a huge foothold in the travel business if advertisers embraced it as an effective way to reach consumers. The same approach could be used for real estate, automobiles, consumer electronics, sports, etc. Maybe Google Custom Search Engine is a Trojan Horse that gets people turned on about vertical search. Once people like it, Google will simply roll out its own vertical search engines as a way to expand the market. For more, check out GigaOm and Matt Cutts, who provides a nice overview on Google DIY’s features.

Written by Mark Evans on October 24th, 2006 with no comments.
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Whatever Happened to P2P?

With all of the excitement around online video and distributing digital content, you’d think peer-to-peer systems would be smack in the middle of things. But yesterday, when we visited a small conference for P2P companies, there was little of the excitement found elsewhere in the industry. It seems P2P, despite its being both efficient and entrenched, is still sorely in need of a business model.

At the conference, lawyers and an MPAA rep spoke of harsher legal precedents for hosting unauthorized content; CacheLogic and BigChampagne reiterated that P2P traffic is growing; Kontiki (now owned by VeriSign) said its long-planned distribution deal with the BBC still won’t be live till next year.

There was a token guy bragging about a new anonymous open P2P network, and a bunch of people talking about using advertising and marketing tools to support filesharing (we wrote about another such effort, Skyrider, yesterday). Sony exec Mitch Singer stopped by to discuss an multi-device token system for using your own content that he says he’s been working on for four years.

The legit P2P efforts such as StreamCast, iMesh, Mashboxx, and Wurld Media were apparently not in attendance. They didn’t come up in conversation except to contemplate StreamCast’s recent court loss (over an older version of its software).

Meanwhile, away from the conference, BitTorrent announced some small deals to incorporate its software into routers and said its long-planned big content store also won’t be up till next year. Same old, same old. What happened, guys? How come P2P didn’t get to come to the party?

Written by Liz Gannes on October 24th, 2006 with no comments.
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Written by Skype Journal on October 24th, 2006 with no comments.
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Roll your own Google Search

Not a day passes by when someone or the other bemoans the fact that they cannot find anything on Google anymore. Well, they can stop complaining, because Google is doing something about it. The company has announced Google Custom Search tools, which allow anyone to simply roll their own vertical search engine. Now think of Google Custom Search as Rollyo, on a Google scale. The new tool allows you to pre-define sources whose content you want to search for, and it also gives you tools to keep adding sites in the future. Since the search can be hosted on either Google servers or your own, you can actually customize the look and feel of the search page, and embed Google Adsense and other advertisements. (Google has been offering something similar as part of its Google Mini effort, but that is more enterprise focused.)

It is a clever idea on Google’s part. By getting folks to build their own vertical search engines, the company is trying to blunt the efforts of some of the VC funded vertical search engines. It is also using “people’s power” to fine tune their own search index. My inner cynic thinks this is – distributed search optimization effort.

However, the problem is that they are not giving any real incentive for people to do that. The share of Adsense bounty is just the same as on a plain vanilla site. It should increase the payouts to the search builders. They are getting more focused search results (hence higher click throughs for their ad), so why not share the profits with folks who are doing the heavy lifting.

The emphasis here should be on getting more and more people to build these specialized micro search engines. Mike Arrington is not going to waste his time for peanuts, but make it a good deal, and I bet he can build what could be the most accurate Web 2.0 only search engine.

Hey if they can buy YouTube for $1.65 billion, how about spending some moolah for the ’search builders.’

Update: Search Engine Watch has an interesting take on this.

Written by Om Malik on October 24th, 2006 with no comments.
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Ads Come to P2P Networks

Skyrider, a Mountain View, California based peer to peer networking company has figured out a way to embed advertising into P2P search results and wants to become a P2P marketing platform.

The company, which was profiled earlier on GigaOM has also raised an additional $12 million in Series C funding led by Com Ventures, along with existing investors Sequoia Capital and Charles River Partners. The company has raised a total of $20 million so far.

Skyrider started out as Cright and focused on anti-piracy solutions, but later changed its strategy. Even in our post earlier, the company remained quite ambiguous about its go-to-market strategy, and its plans. The company is still very coy about revealing its technology and how it works. From whatever little they revealed, here is how the system works.

Skyrider connects to P2P networks such as Gnutella by acting as an ultra peer on the network, and thus tapping into a P2P ecosystem. I suspect the more nodes they add (and hence building their own network), more queries will be sent their way. These queries are enough to sell ads. For instance, a Justin Timberlake search could embed ads for JT posters, concert tickets or even legal music downloads.

CEO Ed Kozel tells us that the company is in talks with media companies and working out ways to promote ad-supported rich media content in these P2P networks. “Content owners who are looking for new ways to reach out to their audience,” he says. Why not? After all they want to be YouTubed… again!

The growing traffic on the P2P networks is what is making them go googly eyed. P2P networks continue to grow in popularity, accounting for nearly 60% of traffic on the Internet (as per Comscore) but no one has been able to capitalize on its in an effective manner. (Please don’t bring up Kazaa. We all suffered from spyware, thanks to them.)

Of course, Skyrider ads could result in people moving onto another network or off the P2P nets all together. David Baxtin, in response to our previous post on Skyrider had expressed some concerns, that are pretty legit.

Written by Om Malik on October 24th, 2006 with no comments.
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3Com 3108 WiFi IP Phone

The 3Com 3108 WiFI IP Phone is the newest in a suite of powerful solutions from 3Com. The 3Com 3108 WiFi IP Phone is SIP based, leveraging 802.11b/g networks, and the 3Com NBX® and VCX™ IP telephony solutions provide the phone with call control. The 3108 features a four-way keypad, a 1.8″ color LCD screen, Wireless Protected Access 2 (WPA2) and advanced encryption standard (AES) that encodes conversations with 128-, 192- and 256-bit keys ensure privacy and safeguard information.

Additional 3Com 3108 Features Include:

The 3Com 3108 has a street price of $415 and is available now through your preferred 3Com channel partner.

Written by Garrett Smith on October 24th, 2006 with no comments.
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The New American Idol… The Coder

It is officially not a trend - but getting pretty close: big technology companies are busy promoting and webcasting codercons, aka marathon coder events where hackers jock for hacking props. Earlier this month, AOL let us know that they will be webcasting the 2006 TopCoder Collegiate Challenge will be produced live from San Diego On November 17, 2006.

Now there is word that Google will webcast Code Jam event in New York on October 27, 2006. These kind of talent hunts are becoming a big draw, especially now that the tech ecosystem is green again with venture dollars.

AOL, Google and everyone else to once again compete for talent. As an aside, one cannot but be impressed by Jack Hughes who started TopCoder, a company that organized many of these events, for catching the trend early.

So how long before we get a special reality show dedicated to coders… The American Coder! (Hey, you steal this one, you gotta buy me a cup of coffee at the very least!)

Written by Om Malik on October 24th, 2006 with no comments.
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O and A on Video Conferencing

Om and Andy (not Opie and Anthony) both had excellent posts today on Video Conferencing based on recent news from Microsoft and Cisco about their new Video Conferencing platforms. Both Om and Andy commented on the cost of the systems, from $3,000 per user for Microsoft’s RoundTable, to $79,999 - $299,000 for Cisco’s TelePresence - definitely not built for the average business user. Om pointed out that Cisco’s TelePresence is nothing more then a way to get buyers of TelePresence to upgrade their networks and Andy extrapolated on his idea of the era of “Instant Video.”

Adding to what they have already said, I believe that you will see hardware manufacturers like Grandstream, who recently acquired StepDigital, a video algorithm company, have an immense impact in this emerging market of Video Conferencing. Grandstream, who is known for their low-cost, high feature phones and telephone adaptors already have an IP Video phone, the GXV-3000. With the acquistion of StepDigital, it is not a far streach to see Grandstream putting out a Video Conferencing Server packaged with IP Video Conferencing Phones for an eighth of the cost of a Cisco or Microsoft solution.

In addition to Grandstream, mainstream players such as Linksys (whom Andy mentioned) and D-Link are in an excellent position to prosper from the marketing dollars spent by Cisco and Microsoft to push Video Conferencing into every business. I’d look for more on this from each of the three companies mentioned above as early as Janurary of next year.

Written by Garrett Smith on October 24th, 2006 with no comments.
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Up Next, Mobile Created Content

We’ve pointed out the growing trend of cell phone users creating and sharing video and photo content, pushed by the popularity of camera and video-camera embedded phones, content-sharing mobile applications and high speed networks. While user-generated mobile content is still a relatively small market, the International Herald Tribune points out the success of the carrier 3’s “See Me TV” service, which the carrier says has brought in more than 100,000 amateur videos and photographs, resulting in more than 12 million downloads.

All carriers are looking to take advantage of user-generated mobile content, given it doesn’t cost the carrier anything to create, and gives the customer something to send over the pipes other than low-margin voice services. While this market is exploding online, evidenced by Google’s YouTube purchase, the mobile environment is moving slower, because of networks, handsets and the carrier-controlled environment.

But it’s still starting to grow rapidly. In Europe, Mobile Streams and MTV Europe are starting to push the FunkySexyCool mobile social service which highlights photo and video profiles and a voting system. Even in the U.S., where mobile video adoption is slower, Cingular is offering a “Messaging Awards” program, where customers vote on the best user-generated video, photo and text submissions. Perhaps in anticipation of the nationwide availability of its 3G network. On Wednesday mobile video sharing startup Veeker, which we’ve written about a few times, plans to launch its service.

Written by Katie Fehrenbacher on October 24th, 2006 with no comments.
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Efimova: From blogs to Skyping, escalating conversations

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Written by Skype Journal on October 24th, 2006 with no comments.
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Hollywood versus Halo

So it looks like Master Chief will have to keep waiting in the lobby a bit longer. The gruff cyborg hero of the Halo series (the crown jewel of Microsoft’s Xbox consoles) was set to star in a film adaptation produced by Lord of the Rings auteur Peter Jackson, in a deal Microsoft signed in 2005 with both Fox and Universal Studios.

(In a display of adorably geeky charm– or total ballsy arrogance– Microsoft put their approved screenplay up for bid by sending copies through couriers dressed up in Master Chief’s gleaming battle armor, who’d then sit uncomfortably in the studio foyer, waiting for executives to finish reading the script.) In a statement released last Friday, Microsoft reported that Universal wanted to renegotiate financial terms, and rather than do that, Microsoft trudged out of the deal altogether, sniffing (with a hint of hurt peevishness), “We are already in discussions with potential partners who recognize the value of the ‘Halo’ brand.”

That Universal balked is no suprise: with an estimated budget already pegged at $145 million, the project would have to earn over $350 million at the box office, to break even. (Rule of Hollywood thumb: a movie needs to gross 2.5 times its budget, to become profitable.) The economic track record for game adaptations is unrelentingly mediocre (except for the first Tomb Raider movie), and the Halo movie’s closest precedent, 2005’s Doom, took in a pathetic $55 million worldwide.

The real mystery is why Microsoft is still plowing ahead. Has anyone bothered to tell them a Halo movie must be one of the most ill-inconceived film projects ever?

I say this as someone who still enjoys playing the PC version of the first game, but as a movie project, the plot is basically Aliens slapped on top of several Star Trek: Next Generation episodes (just with cooler, Biblical-sounding names), and little appeal outside its hardcore fanbase. And that’s not even the worst of its problems, to wit: The protagonist is a faceless killing machine with no personality who wears an opaque helmet through the whole thing. It’s as if Microsoft decided that basic, time-tested Hollywood storytelling rules don’t apply to them. (For example, that a hero should be likeable, sympathetic, and someone that an A list star would want to play– which usually involves, you know, being able to see their face.)

There has to be an explanation for Microsoft’s stubborness, other than a desire to go Hollywood (a common affliction among game developers, many of whom secretly yearn to see their work cross over into the more respected, glamorous medium.) The most likely explanation, I think, is that box office success is not Microsoft’s main goal with the Halo movie; instead, they need the movie to promote the Xbox 360.

Think about it: Set for release in Summer 2008 release, the Halo movie would come out a few months after Halo 3 (scheduled to go on sale in the 2007 holiday season), with the DVD available just in time for the 2008 holidays. All this would come at a time when Xbox 360’s current head-start advantage in the next generation console wars had long ended. A Halo movie would keep the Xbox momentum going at that most crucial time, while providing promotion and content throughout. (Think Halo movie trailers and excerpts downloadable only on Xbox Live, the Halo movie DVD packaged with Halo 3, and so on.)

If that theory is right, it doesn’t matter that much to Microsoft if the only people who watch a Halo movie are Xbox gamers, and it loses money at the box office. For the most part, the console market is already a loss leader competition; all Microsoft has to do is find a studio gullible enough to help them fund and distribute it. That, and an actor who’s willing to wear a face-obscuring outfit for a cult sci-fi project with limited mass market appeal. I’m thinking John Travolta.

Written by Wagner James Au on October 24th, 2006 with no comments.
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Jingle Goes Big

Free directory assistance provider Jingle Networks said today it had raised $30 million in Series C financing, bringing its total funding to over $60 million and its post-money valuation to more than $150 million. Jingle has been able to attract so much money because it’s bringing the ad-supported business model that we talk about all the time to an area that’s relatively unpolluted with ads.

The company operates 1-800-FREE411, which dispenses free directory assistance in exchange for targeted advertising – ideally for a direct competitor to the business you’re seeking. Though we use the service a fair amount, we have yet to hear an ad that is an appropriate alternative to the business we are looking up.

At the same time, our non-techie friends instantly understand the Jingle concept, and this obviousness seems responsible for its 13 million inquiries each month, or three percent of the directory assistance market. We hope the company doesn’t have to raise any more money before it can finally have an inventory of relevant ads!

Jingle’s funders now include Goldman Sachs, Hearst Corporation, Comcast Interactive Capital, First Round Capital, IDG Ventures Boston and Liberty Associated Partners.

Written by Liz Gannes on October 24th, 2006 with no comments.
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No More Free MuniFi for New Orleans

The municipal WiFi network in New Orleans has been the subject of a lot of debate. Clashes with incumbent carriers, a CIO that says he’ll go to jail to save the network, and then a deal with Earthlink to build a private Municipal wireless network. And that meant one thing - the city’s access to a free WiFi service had a short time to live. Perhaps as little as a few more months.

According to an article published last week in the New Orleans’ paper the Times-Picayune, the free public network will be taken down in favor of Earthlink’s subscriber based and temporarily free network. Though this may not have been widely publicized, the plan to transition to a paid network has been in the works for a while. Back in May Earthlink had told us that the free service on its network would only be temporary and that the city’s own network would likely be dismantled. New Orleans CIO Greg Meffert said back then that he hoped the free service would be available for as long as possible.

We spoke with Clifton Roscoe, the General Manager for Earthlink’s Municipal Networks in New Orleans, this morning and he said that the public network would be dismantled as soon as Earthlink’s network was up and running - hopefully by end of this year. It will cost Earthlink between $2 million to $3 million to build a network that covers a 20-square mile area.

When asked about how long the temporary free service would be offered, Roscoe said the company would revisit the decision in the second half of next year. So, probably only a few more months of free for New Orleans residents. Earthlink likely hopes that shutting down the city’s free WiFi service won’t hurt its attempts to bring in customers, though it is hard not to imagine negative feelings amongst the users of the free network.

“Our business model is a paid service,” says Roscoe, pointing out that the partnership with Google to unwire San Francisco is an exception. Earthlink needs the subscriber numbers to make back its investment in muniFi. Earthlink’s recent earnings show that the company gained 47,000 net broadband customers, and a third quarter loss of $3.2 million. No wonder free isn’t in the works.

Written by Katie Fehrenbacher on October 24th, 2006 with no comments.
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Skype for Mac 2.0 Goes Gold

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Written by Skype Journal on October 24th, 2006 with no comments.
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