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Archive for September 17th, 2008

“Google hits 1 trillion URLs, skips trillions more”

The story isn’t that Google has found 1,000,000,000,000 unique URLs on the Web. It’s that there are many times more that Google’s engineers haven’t bothered to chase after. Always remember that when you search Google, you’re not searching the actual Internet. You’re searching a bunch of archives at Google with data plucked from the Internet — such as the Google News database, which I’ve been told their lawyers forbade from including either Drudge Report or Valleywag. That makes Google News the world’s largest searchable repository of stale, second-hand rumors and barely rewritten pr

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“YouTube founder claims text is dead by 2018”

In ten years, we believe that online video broadcasting will be the most ubiquitous and accessible form of communication.” It’s on the Official Google Blog, so take YouTube founder Chad Hurley’s claim as a company statement. I envy Google’s ability to have it both ways on just about any topic.

Hurley claims his own site’s “exponential growth” means video is becoming the dominant means of communication — not just for news and entertainment, but for everyday communication between individual people. He ignores the real-world evidence that people vastly prefer text-based communications — email, IM, phone texting — rather than the video tools built into nearly all new computers and most phones. Because he’s rich and works for Google, Hurley’s claim will be widely quoted today, and conveniently forgotten in ten years. Here’s what no one will ask him: Chad, why did you post your world-is-changing claim in text, instead of uploading a video? (Photo by AP/Danny Moloshok)

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“Bush could still attack Iran”

Despite the main finding in the latest report from the International Atomic Energy Agency that it “has been able to continue to verify the non-diversion of declared nuclear material in Iran”, the western media has focused on the issue of Tehran’s lack of transparency over the IAEA investigation into recent intelligence allegations (Report, September 12). These involve missile re-entry vehicle projects and have been rejected by the Iranians, who have not even been permitted to see the documents upon which the allegations are founded.

This week the US Congress is debating two non-binding resolutions which, if passed, will greatly increase the likelihood of military intervention against Iran. They call on the US president to “increase economic, political and diplomatic pressure on Iran to verifiably suspend its nuclear enrichment activities”, and demand “stringent inspection requirements” of all goods entering or leaving Iran and an embargo of refined petroleum products to Iran. Although both resolutions exclude authorisation for military action, the embargo will require a naval blockade. Such a blockade could result in skirmishes with the Iranian navy which could rapidly escalate.

The US is massing the largest armada of warships in the Gulf since 2003. Two aircraft carrier task forces are already there and a third was dispatched on August 22. French and British warships and carrier groups are also reportedly on their way.

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“Hewlett-Packard Cuts 25,000 Jobs After E.D.S. Purchase”

MILLBRAE, Calif. — The computer and printer maker Hewlett-Packard announced on Monday that it would eliminate 24,600 jobs, or 7.5 percent of its work force, as part of its plan for digesting the computer services giant Electronic Data Systems, which it acquired for $13.9 billion in August.

“I think most of you that follow us know I am a big believer that having the most efficient cost structure directly relates to your ability to scale and grow,” Mark V. Hurd, Hewlett-Packard’s chief executive, told securities analysts gathered at a hotel here, near San Francisco’s airport.

Almost half of the job cuts will occur in the United States. The company, based in Palo Alto, Calif., said it expected the reorganization to result in annual cost reductions of nearly $1.8 billion. It said it would record a $1.7 billion charge in the fourth quarter tied to the layoffs.

The layoffs are the start of a three-year plan in which Hewlett-Packard will try to unify its existing services business with its new acquisition. Up to half of the eliminated positions may be refilled over the course of the reorganization, it said.

The purchase gives H.P. added muscle to go up against the technology services leader, I.B.M. Some analysts have said, however, that Electronic Data Systems’ costs are still too high to compete with service firms in India and that the combined company’s breadth trails I.B.M., which has a large consulting arm.

Joe Eazor, the former head of corporate strategy at E.D.S and now a senior vice president at Hewlett-Packard, acknowledged that his former employer lagged industry leaders on crucial performance measures.

“There is still much work that we need to do,” he said.

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“First Google Phone to Be Announced Sept. 23”

T-Mobile said Tuesday that it would unveil details of the first and much-anticipated mobile phone based on Google’s Android software on Sept. 23 at a press conference in New York.

Google Phone(Illustration by The New York Times)

The phone itself, which is being manufactured by HTC, is not likely to be available until next month. But top executives from Google, T-Mobile and other companies are expected to unveil details about the phone’s release date, pricing, plans and software at the press conference.

The phone is expected to become a challenger to other high-end phones like Apple’s iPhone and the BlackBerry line of devices made by Research In Motion. Other manufacturers and cellphone carriers are expected to introduce Android-based phones in the coming months.

Google is promoting Android phones as a way to ensure that its services, as well as other services that may use its advertising system, are available on a broad range of mobile phones.

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“Cray’s new supercomputer runs … Windows?”

Cray, the supercomputer company once known for hand-tweaked $8 million machines, now ships a $25,000 model, the CX1, that ships with either Microsoft HPC Server 2008 or Red Hat Enterprise Linux pre-installed. Cray claims its Wintel machine “combines the power of a high-performance cluster with the affordability, ease-of-use and seamless integration of a workstation.” Computer-aided simulations estimate that founder Seymour Cray is currently spinning upwards of 162,000 RPM in his grave.

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“Bargain $8 million condo just the latest favor from Sergey Brin’s banker”

The $8.5 million pied-à-terre that Google cofounder Sergey Brin and 23andMe cofounder Anne Wojcicki recently purchased in Manhattan’s Greenwich Village? The previous owner, Bill Brady, paid $7 million for the condo around a year ago and was trying to move the unit for as much as $12 million after buying into a different building owned by art superstar Julian Schnabel. If you think it was the negotiating mastery of Brin and Wojcicki — who are expecting their first child together — think again. A tipster points out that besides helping with Google’s IPO at Credit Suisse First Boston, Brady and former boss Frank Quattrone still advise the company:

[Brady] underwrote subsequent stock offerings, is a bidder in Google’s transferable stock option program, covers its conference calls, and tries to cheerlead its price up to $900.

Our tipster asks how something that could appear as a conflict of interest got past Google’s Code of Conduct Police, but he answered his own question: After funding his wife Wojcicki’s biotech startup, it’s clear that Brin, his fellow cofounder Larry Page, CEO Eric Schmidt, and other executives hold themselves well above any ethical guidelines they may have put into place for the underlings at the Googleplex.

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“The 5 tech companies most immediately affected by Wall Street’s meltdown”

If Silicon Valley is mentally disconnected from this week’s Wall Street mess its because ad-supported companies dominate the Valley these days and they will not be immediately impacted by the demise of Lehman Brothers or Merrill Lynch. Lehman spent just $501,900 on offline and online ads in the first half of 2008 and Merrill Lynch, which has a much larger consumer-facing business, still only spent $38 million online and off during all of 2007. Still, some 150,000 people will lose their jobs in this week’s fallout. That’s a lot of tech infrastructure no one will want to pay for anymore. Lehman, for example, spent $309 million on IT last quarter alone. What’s more, Lehman’s investment banking connections run deep in the Valley’s world of startups, VCs and big company buyers. Below, five tech companies that find themselves wishing they could be disconnected from Wall Street’s fate.

The New York Times reports that between shots of hard liquor at the office yesterday, one Lehman employee shouted: “Are they going to take my BlackBerry? Come on, come get it.” Oh, they will. Research in Motion’s BlackBerry sales were already disappointing in August. With Lehman expected to lay off most of its 29,000 Lehman employees, Merill Lynch and Bank of America expected to cut some 20,000, and plenty of Bear Stearns bankers still unemployed, September could be worse. 150,000 people will lose their jobs from this mess and we’re betting not a few of them are Crackberry addicts.

New York’s most successful tech company is financial information provider Bloomberg, which somehow manages to charge users thousands of dollars a year per subscription for access to the terminals that every Wall Street trader has on their desk. But with Lehman cutting 29,000 and Bank of America cutting another 20,000, Bloomberg’s already low-volume business just got smaller at time when its facing redoubled competition from Thomson Reuters.

The benefit of a merger like Bank of America and Merrill Lynch is that the new company can combine their profits and cut redundant costs. Unfortunately for IP telephony provider Cisco, it’s one of those redundant costs. After flirting with Avaya for a couple of years, Merrill Lynch returned as a Cisco client in 2005. Last May, Cisco announced it would deploy 100,000 phones to Bank of America.

On February 27, 2007 Salesforce.com announced its largest deal ever, signing Merrill Lynch as a client and adding 25,000 new subscribers. How will Salesforce.com fare now Merrill and those 25,000 accounts are moving to Bank of America? At worst, Bank of America will insist Merill’s brokers and their assistants use the Soffront CRM software the bank signed up for in March. At best, Salesforce.com will lose several thousand accounts as the new company seeks to reduce reduncancies and lays off as many as 20,000.

Investment bank Marlin and Associates helped Rupert Murdoch and News Corp’s subsidiary Fox Interactive find MySpace, but otherwise its been Lehman Brothers advisers bringing their favorite startup clients to the Murdoch empire. IGN Entertainment hired Lehman in the summer of 2005 and sold to Fox Interactive in the fall. Then in April 2007, photo-sharing site Photobucket hired the investment bank only to sell to Fox in May of the same year. Without Lehman Brothers, how will News Corp grow on the Web?

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A Year of Heavy Losses – Interactive Graphic – NYTimes.com:

A year ago, financial companies were flying high. But as problems in the mortgage and credit markets have grown, the stocks of many Wall Street firms have been hard hit. Some of the biggest companies have been bought out, taken over by the government or gone bankrupt.

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The collapse of so many major financial institutions in the past year, and over the past few days especially, is hard to fathom in its enormity. Sometimes you need a good visual to put things in perspective. The New York Times has an interactive graphic up on its site that pretty much says it all. It shows that $4 trillion has been wiped off the total market capitalization of the U.S. stock market since last October. Of that, nearly $1 trillion is from the decline in the financial sector alone.

Each box in the graphic is proportional to the size of the market capitalization of the biggest financial firms then and now. As you mouse over the squares, you can see how much each value each company lost between October 9, 2007 and September 12, 2008. Here are some of the individual losses by market cap:

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