Thursday, 26 July 2007

Google Apps for small businesses

The IT infrastructure is the key enabler for any business today. Whether it is an Entrepreneurial venture or an established corporation, having proper IT infrastructure (mainly email accounts, website and other collaborative tools) is extremely critical to run the day-to-day activities. Maintaining the IT infrastructure with high investment may not be affordable for businesses which are in bootstrapping (startup) phase. Google has come up with 'Google Apps’. Fore more details and check out the 'Overview presentation'.

What Google has done different here?

  • It has moved the initial IT setup work way from the business and made it available as an ‘on-demand’ application from the Internet.
  • Added support for integrating Google’s popular applications (like Gmail, spreadsheets, calendar etc...) to the domain-name of the business.
  • The whole package comes for free with guaranteed uptime of 99.9%. However for premium versions are charged additionally.

I feel this would be another killer application from Google. The main problem startups face is the cost and they may not be able to afford applications in hardware (servers) and software (like MS office) right from day one. Also, by making it available on the web, it’s been made independent of operating system.

How do Google make money from this?

Google makes money when the user clicks the sponsored advertisement.

My prediction – By offering Google Apps to small businesses, Google has opened up new avenues for contextual advertisement. For example when the user is reading the official, by having contextual advertisement displayed can increase the probability of clicking the sponsored link.

Whatever Google's strategy it may be, this is really a good application for startups which are in the ’bootstrap' mode.

Tuesday, 10 July 2007

United Villages

In third world countries like India, providing Internet connectivity to rural areas continues to be a challenge. Running copper cables to these areas is still a problem due to poor infrastructure. However the recent success of mobile phone re-iterates the fact the Wireless is the way to address this challenge. Also this kind of 'Bottom-of-the-pyramid' markets are having huge potential and yet to be tapped.

Recently came across the
'United Villages' website and the idea looks very interesting. Using pubic transport system (as Wireless Access Points) and providing pre-paid card for the service is definitely a good business proposition.

Friday, 22 June 2007

Reflections on Web 2.0

The success of any cutting-edge technological innovation can be measured by its adaptability it offers to the common man. In his famous book ‘Crossing the chasm’, author Geoffrey Moore calls this critical mass (the common man) as ‘pragmatists’ and they play a critical role in the success of any innovation. Conversely, when any new technology is hyped beyond certain level it is bound to hit the ground very badly. Nobody can forget the dotcom hype in the early 90s followed by the bubble burst in 2000-01. Fuelled by a bunch of startups, it was believed that anything and everything can be brought into the Internet and customers will start flocking into it. But by the end of the burst, only handful of those startups (like Google, Yahoo etc...) were able to survive mainly because they had products (rather online services) which made sense to a common man.


Last week I was reading the official whitepaper about Web 2.0 by Tim O'Reilly and found it pretty interesting. It mainly highlights how Web 2.0 is different from the initial Web 1.0. One of the main attributes of the Web 2.0 is its interactive nature. Unlike the previous version, where the contents are hosted by the service provider, in the 2.0 world, the end user becomes the creator of the content. This is very significant because, it inspires empowerment of the common man. Users of Web 2.0 can express their views about varied topics and share them in the form of a blog post or a wiki page over the Internet that connects millions world over. By creating such a platform for expressing individuals’ thoughts the Web 2.0 has truly emerged as a very strong platform for human expression.

Another main attribute of Web 2.0, is the ‘software-as-a-service’ (SAAS) model, where the user can access any application software from the internet without having it installed in the computer. More commonly used applications (like spreadsheets) are available online (Google spreadsheets), which can be edited by individuals or as a group. Thanks to high bandwidth, last mile technologies like DSL, the internet speed has increased tremendously and the prices have dropped sharply. For example, in the year 2001, I used to pay INR 250 (for the internet service provider) plus telephone charges to access a 56 Kbps internet. Now in 2007, speed upto 2 Mbps is available at the same price without any additional telephone charges. This has indeed set the stage for SAAS based model and Web 2.0.

At the same time, I have my own doubts about heavyweight applications being made available over the Internet using SAAS. For example -- recently I came across Nivio, which is an online version of Windows. By subscribing to this service (by paying $12.99 per month) it will provide 5 GB storage space with some pre-defined applications over the web. The main idea of accessing PC from everywhere looks interesting at the first sight and looks technically ‘cool’ as far as the geeks are concerned. But does it make sense for a common man? Ever falling hardware prices and free software (like Open source) have already made computing very affordable. So, if the user wants to store some data in the Internet, the online storage has become free of cost, hence providing a one stop shop for all stored and processed user defined data.

I have registered for the free trial version of Nivio and am yet to receive the login information. But when I look at products like these, they seem to be re-creating the web 1.0 days, in my opinion. I am willing to wait and watch the success or otherwise of such products no matter how skeptical I may feel about them at the moment.