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Windows Live FolderShare No Longer Strictly P2P?

Foldershare is a life-saver: a peer-to-peer file synchronization product that does its magic in discreetly in the background, with the user barely noticing it even exists. While it needs to log in to the MS servers, it does NOT sync / upload actual data, all synchronization is strictly P2P. In fact one of the setup options is to define whether you allow remote P2P sync to occur through the Net, or strictly on your LAN, behind the firewall.

I’ve been using it for years now, as part of my data sync and backup strategy: I let FolderShare synchronize data between two laptops and a desktop, then I use the desktop as the “master” which will back up data online to Mozy, the other life-saver.

Of course using two products for somewhat similar purposes is redundant, and I have previously speculated that Microsoft should tie Foldershare and Skydrive (Live Mesh, Live Drive – pick your favorite buzzword) offering both PC sync and Web backup. I wonder if it’s about to happen.

I noticed this weekend that my computers could sync without them being online at the same time – which is (used to be? ) a primary requirement for FolderShare to work. Now I could repeatedly test turning off all but one computer, update files on the one with FolderShare running, then shut down FolderShare, start another machine, and voila! – my changes got synchronized. How was that possible when it had nowhere to get the information from, other than the Microsoft servers? (unless the closed program left behind a process running, other than Foldershare.exe)

If this means FolderShare is no longer strictly a P2P product, I actually welcome that change – except for the fact that it happened unannounced. Leaving users in the belief they are only sync-ing data between their own computers when in fact it’ stored on Microsoft’s servers would be a serious violation of their privacy.

Interesting coincidence (is it?): FolderShare will have a planned outage of 48-72 hours this week. 72 hours (3 days!) is a lot of time, it should be enough for major changes. In fact more than enough – such outage would be unacceptable from any service provider – except apparently from Microsoftsmile_sad. (Yes, I know, we get what we pay for, and this is a free service – it’s still a ridiculous outage.)

Update: Further testing reveals that the actual data files are not transferred between offline computers, only the *.p2p placeholder files. Sigh of relief: your data files are not stored on Microsoft’s servers. BUT …. BUT: the index is indeed stored centrally. This did not appear to be the case with the original FolderShare by ByteTaxi, prior to the MS acquisition. I don’t know when it changed, and I don’t recall being warned about it. The former FolderShare user agreement page disappeared and I haven’t found any updated information on FolderShare’s site.

Update (6/24):

Ouch!  C’mon guys, this is so simple, even I could fix it.

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Microsoft’s Aborted Baby: the First Web-Office (Almost)

The transition of power from Founder to Successor is never smooth. If there’s one company that planned it carefully and has been on the path of smooth execution, that’s Microsoft. Life-long friendship, 8-year-long transition – yet things got bumpy at times, especially in the early days. The Wall Street Journal runs a story with rare insight into some of the difficult times:

Things became so bitter that, on one occasion, Mr. Gates stormed out of a meeting in a huff after a shouting match in which Mr. Ballmer jumped to the defense of several colleagues…

The conflict between the two men paralyzed business-strategy decisions that the company still wrestles with today.

The two men clashed as Mr. Ballmer tried to assert himself in his new job. As the firm’s iconic leader, Mr. Gates still held sway that wasn’t tied to a title: In meetings Mr. Gates would interject with sarcasm, undermining Mr. Ballmer in front of other executives, Mr. Gates and other Microsoft executives say.

Two worked out their differences in 2001, when Founder Bill Gates realized he himself needed to change: having formally relinquished the CEO title to Steve Ballmer, he had to let him lead without constantly being challenged, overshadowed.

But let’s turn back to our angle here, how Microsoft could have been a very early SaaS pioneer:

In one case, two vice presidents clashed over the future of NetDocs, a promising effort to offer software programs such as word processing over the Internet. The issue: Because NetDocs risked cannibalizing sales of Microsoft’s cash-cow Office programs, some executives wanted NetDocs killed.

Messrs. Gates and Ballmer were unable to settle on a plan. First, NetDocs ballooned to a 400-person staff, then it got folded into the Office group in early 2001, where it died.

Fascinating. Eight years later web-based products still threaten to cannibalize Microsoft’s cash-cow, but they can no longer be ignored – largely because of Google and Zoho which now offer viable alternatives to users formerly “stuck” with Microsoft’s products. A costly debate, indeed.

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SaaS and the Shifting Software Business Model

Barely two years ago we debated whether little-known Zoho was worth paying attention to. The majority view was that their Office applications were weak contenders that would never challenge the Microsoft suite’s position. I think I was in the minority stating that I really did not need more than 10-20% of Word or Excel’s functionality, but online-anywhere access and collaboration made the switch worthwhile.

Today Robert Scoble reports he is seeing online applications wherever he turns:

Today I’d say the skill set is shifting once again. This time to something like Zoho Writer or Google’s Docs. Because if you visit Fast Company’s offices in New York, for instance, they want to work with you on your copy in live time. Fast Fast Fast is the word of the day. It’s in our title, after all. Now some people still use Word, but last time I was there one of the editors told me he was moving everything over to Google’s Docs because it let him work with his authors much more effectively.

These are no longer yesterday’s wannabe applications. Zoho Sheet recently added Macro and Pivot Table support , going way beyond the average user’s needs (and certainly exceeding my spreadsheet skills, which are stuck somewhere at the Lotus 1-2-3 level). Zoho Writer today added an equation editor and LaTex support. Heck, I don’t even know latex from silicone, what is it doing in my editor? smile_wink
As I found out it’s important for Zoho’s academic and student users, once again, going way beyond an average user’s needs. (the other update today is mass import from Google Docs: nice, special delivery for Dennis, but I still would like to see a list of all my online docs, be it Zoho or Google, open them, edit them, and save to whichever format (and storage) I want to.)

Online applications have arrived, they’ve become feature-rich, powerful, and are the way software will be consumed in the future. They also change the business landscape.

Software margins choked by the cloud? – asks Matt Assay at CNet, pointing out a shift in Microsoft’s tone about cloud computing, recognizing that in the future they will host apps for a majority of their customers, and that their margins will seriously decline:

There’s not a chance in Hades that Microsoft will be able to charge more for its cloud-based offerings–not when its competitors are using the cloud to pummel its desktop and server-based offerings. This is something that Microsoft (and everyone else) is simply going to have to get used to. The go-go days of outrageous software margins are over. Done.

Matt cites Nick Carr who in turn recently discussed

…the different economics of providing software as a Web service and the aggressive pricing strategies of cloud pioneers like Google, Zoho, and Amazon.

This is fellow Enterprise Irregular Larry Dignan’s key take-away from the Bill & Steve show, too:

Microsoft CEO Steve Ballmer acknowledged the fact that a lot of computing is happening in the browser and not in applications. He also said that the future of software will have “a much more balanced computational model” and that Microsoft will have to compromise.

Of course it isn’t just Office. The obvious business application is CRM, where Salesforce.com pioneered the concept and delivered the first On-demand product. But now a funny thing is happening: the pioneer is increasingly being replaced by more inexpensive competitors, including my Client, Zoho. Yes, SaaS disrupts the traditional software market, but there’s another equally important trend happening: the commoditization of software.

Commoditization is beneficial to customers, but a death-spiral to (most) vendors. Except for the few that drive commoditization. Zoho makes no secret of doing exactly that.

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Gmail Faster? Are You Sure?

Great performance has always been an obsession at Google and it’s something that we think about and work on everyday. We want Gmail to be really fast, and we keep working on ways to make it faster

– says the Official Gmail Blog. They go on:

One of the areas we worked on was the initial loading sequence: everything that happens behind the scenes between the time you press the “Sign in” button on the login page and the moment you land in your inbox. While the improvements we made won’t resolve every “This is taking longer than usual…” message you might see when loading Gmail over a slow connection, we’ve seen a real reduction (up to 20%) in overall load time compared to when we started.

Hm…so the initial loading sequence got faster. Great news – I have only one question: Why do I now always see this previously unknown progress bar every time I sign in to Gmail?

Btw, I created the account specifically for this test, so it has absolutely no email to be pre-processed. Truth be told the progress bar flashes up and disappears quite fast in the empty account, but it stays there long enough in my real accounts with a lot of data. Not exactly a sign of progress, if you ask me (pun intended).

Update: A sure sign that Gmail must have gone through some changes is that the very popular Gmail Manager Firefox add-on is now knocked out: it is unable to login to any Google Apps email accounts. Regular Gmail accounts appear to be unaffected.

Update#2: I guess I should point out the positive side of the story: this approach is a lot better (transparent) then the Microsoft approach to their slow copy problem, where Vista SP1 improved (perceived) performance partly by rethinking the progress-bar. smile_omg

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Document Collaboration Just Got Easier

I often need to share a document with a few reviewers / contributors, and I hate sending attachments. Attachments are redundant, wasteful, and if you start marking up different copies of the same document, then emailing them around, you’re in for a major version-control nightmare.

The clean solution: share an online document. But which platform to use? I use Zoho applications, widely recognized to be the best. But until today, there’s been one obstacle to unlimited, open collaboration: users had to create a Zoho account first. Not that it was complicated (30 seconds?), but some people will stay away from apps requiring account registration as a principle.

The solution? Well, if you have any sort of online presence, chances are you already have an account either with Yahoo or Google. From now on you can use these credentials – yes, your Google / Yahoo account – to log in to Zoho applications. No more worrying whether the other party can access your shared documents.

The Zoho team points to a poll ran by Lifehacker last year. Obviously there are more Google than Zoho users. But look at the reason: most already have a Google account, and refuse to create another one for Zoho. Those who actually tried both system prefer Zoho by a 3:1 margin. So it clearly made sense for Zoho to remove the bottleneck and open up to their systems.

But I suspect this is just the beginning. TechCrunch France Editor Ouriel Ohayon and ZDNet’s Dennis Howlett raised the issue of mass importing one’s Google documents to Zoho. I think it would make sense, although I don’t necessarily like importing – it’s a one-time shot.

Why not just make all documents available to online users, no matter where they were created? You should be able to list your Google and Zoho documents, open them, edit them, and save to whichever format (and storage) you want to.

Either way I’m sure we’ll see more open access and collaboration coming soon. smile_regular

(Disclosure: I’m an Advisor to Zoho)

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Zoho Launches in China @ Baihui.com

Just days ago we read that China, already the world leader in cellphone use, has surpassed the USA as the No. 1 nation in Internet users., so of course it’s a huge market that SaaS providers would love to enter. What better way than have the market come to you?

That’s what happened to Zoho when their Beijing Office was contacted by PC Stars, the largest online distributor in China with more than 2400 resellers and over 1000 system integrators. The are assembling a portal at Baihui, currently offering specific search and productivity tools. Their search products appear to be geared to product groups like software, hardware, games and automotive.

For the productivity apps they teamed up with Zoho, who would provide white-label versions of their products. After a few months of private beta testing, Baihui built a new data center (*), and today they are launching the Zoho Suite under their own brand:

These apps will be offered free to individual users, just like they are in the US, and CRM will have a similar pricing, too: free for the first 3 users, then 99RMB /user/months, which is about $14, close to the US pricing. (I would have thought Chinese prices to be less, but they know what they’re doing…) Baihui will later add other Zoho (Business) products.

Zoho’s current user base is 800,000 adding 100k about every 5-6 weeks, and they certainly expect that number to jump with the China deal.

OEM-ing their product is not unusual for Zoho, and especially for the parent company: there are other deals under consideration, and if you own a D-Link access point, chances are the wifi-manager software you have is from Adventnet. I plan to write a backgrounder on Adventnet, their approach to business and their international presence in the near future.

(* Please note, Baihui’s investment is into their own data center, running the Zoho Apps, not Zoho’s parent company, Adventnet, as (first) incorrectly reported on TechCrunch.) Update: it’s now fixed on TC.

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How to Make Outlook Cool. Actually, Kool.

Outlook read backwards is Kooltuo. Wow, it would make a good startup namesmile_wink. No, I did not go crazy, but TechCrunch reports that Microsoft just signed a letter of intent to acquire Xobni. And Xobni = Inbox, backwards.

Not that it’s a surprise: I wish I could predict everything with such certainty. This is what wrote in February, when Bill Gates presented Xobni for Outlook as “the next generation of social networking” at the Microsoft Office Developers Conference:

What does it mean when Bill Gates presents your product, a super-cool Outlook plugin to his crowd of developers?

  1. Gates’s message: now go back and copy this fast. That would be the classic Microsoft style, as many software startups can attest to. It would also put the market introduction to somewhere … around 2015? Unlikely.
  2. Microsoft will acquire Xobni in no time. Sweet and fast deal. Congratulations to the Xobni team and investors!

So, yes, congratulations to the Xobni team! On a personal note, I regret I can’t try Xobni, as I long ago ditched Outlook along with a lot of desktop bloatware, and am in happier land now, using Web-based applications. I’m perfectly happy ( and productive) with the combination of Gmail and the Zoho apps, and if I ever leave Gmail, it will be for another web-mail, not back to the desktop. The air is fresher in the Cloud.smile_regular

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Zoho CRM Enterprise Edition @ SMB Price

This morning Zoho announced the Enterprise Edition of their CRM product.  The key updates are:

  • Introduction of Role-based Security Administration
    • Profiles for managing CRM module-level permissions
    • Roles for modeling organizational hierarchy and setting up data sharing rules
    • Groups for sharing the data among various departments
    • Field-level security for controlling the access rights (View or Edit) of fields in CRM modules

  • Enhancements in product Customization & Data Administration
  • Multi-language Support (11 Languages)
  • SSL Support for Professional & Enterprise Version
  • Integration with Zoho Sheet
  • Improved Business Functionality
    • Automatically update Stock information once the Purchase Order is approved
    • Find and Merge the duplicate records in Vendors module
    • Convert Quote to Sales Order or Invoice in a single click
    • Convert Sales Order to Invoice in a single click
    • Add account information automatically while creating quotes/orders/invoices from the potentials
  • Wiki-based Context-sensitive Help

     

    The key in “going enterprise” is no doubt the new security/permissioning scheme. That said, Zoho CRM has already been functionally rich even before today’s upgrade.  I’ve repeatedly stated that supporting business processes like Sales Order Management, Procurement, Inventory Management, Invoicing  Zoho really has a mini-ERP system, under the disguise of the CRM label.smile_wink.  In fact let’s just stop here for a minute. 

    Today’s announcement aside, I still consider Zoho’s primary focus to be the small business (SMB) market.  As for CRM, it really comes down to the classic breadth vs. depth of functionality question.   Zoho CRM’s breadth, along with the other productivity applications allows many SMB’s to use it as their single, only business application.  The market leader in SaaS CRM, Salesforce.com clearly supports fewer business processes, offering more depth in each – probably a better fit for larger enterprises which likely run several applications anyway.   This matrix provides an overview of Zoho CRM vs. Salesforce CRM Group and Professional Editions. (click on pic for detail)

     

    Having done a functional comparison, a quick look at pricing demonstrates why Zoho CEO Sridhar Vembu called Salesforce.com still very expensive:

     

    CRM Pricing Comparison - http://sheet.zoho.com 

     

    No wonder Larry Dignan at ZDNet declares “Zoho aims to poach Salesforce.com customers.”  But Larry (and Marc), you ain’t seen nothing yet… just wait till Zoho comes out with a Salesforce.com importer smile_tongue.   

    Clearly, Salesforce.com does keep a close eye on Zoho, otherwise why would they spend money on the Google Adword “Zoho CRM“?

     

    But again, reality check: Salesforce.com does own the Enterprise space.  For now.

    Finally, a word about integration.  After all, Zoho is known for their almost endless range of products, they should work together…  Currently Zoho Sheet, the spreadsheet application is fully integrated with CRM – most data can be edited either inside CRM or in the spreadsheet format that many business users are more familiar with.

    Zoho plans to integrate Writer, their word processor, Mail (still in private beta) as well as some of the business applications, namely recently released Invoice and People. When all that’s done, Zoho will have a more complete offering than two industry giants, Salesforce.com and Google together.   I can’t wait…

     

    (Disclaimer: I am an Advisor to Zoho. Take anything I say with a grain of salt.  In fact with a pound of salt.  Don’t believe a single word of mine about Zoho products: go ahead and check them out yourself).

     

    Related posts:  Zoho Blogs, CenterNetworks, VentureBeat, CNET News.com, Mashable!, Between the Lines, Web Worker Daily, Irregular Enterprise, InformationWeek,

     

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    3 Half-Truths about SaaS

    I am a big fan of Software as a Service, but it frustrates the hell out of me to see industry pundits over-hype it without really understanding it.  Here are 3 killer (in the bad sense) half-truths about SaaS:

    1 – SaaS is simpler, easier to implement than On-premise software (see update at the bottom)

    2 – SaaS is for the SMB market

    3 – SaaS is bought, not sold, it’s the end of Enterprise Sales

    Let’s examine them in detail:
     

    1 – SaaS is simpler, easier to implement than On-premise software.

    The only part that’s absolutely true is the technical installation, which the customer no longer has to worry about with SaaS.  But we all know that this is a fraction of a typical implementation.  Implementations are all about business process and training, hence the difficulty / duration / cost of an implementation depends on the complexity of business and the size of the organization – these two tend to correlate with each other.

    It just so happens that all SaaS solutions so far have started (and many stay) at the SMB level, so they are simpler not by virtue of being SaaS but by their target market’s needs. 

    2 – SaaS is for the SMB market

    Yes, traditionally all SaaS started with Small Businesses, but that does not mean it may not move upstream. Salesforce.com and several HCM applications have proven technical scalability, but they offer partial / departmental functionality. 
    I am a strong believer that in 4-5 years most software developed will be SaaS, and that in 10 years it will be the predominant method of “consuming” software by large enterprises – but I can’t prove it.  There’s no empirical evidence, since there has not been any Integrated Enterprise SaaS available so far.  The closest to it is NetSuite today (but it’s still SMB focused), and SAP’s Business ByDesign tomorrow.  In fact despite SAP’s official positioning, driven by market focus and current limitations (functional and infrastructure), I believe that SAP will use BBD  to learn the SaaS game – i.e. BBD will be a test bed for a future Enterprise SaaS offering. But we’re not there yet.
    (longer discussion here)

    3 – SaaS is bought, not sold, it’s the end of Enterprise Sales

    Hey, I’ve said this myself, so it must be true (?).  Well, it depends on the position of the sun, the constellation of the stars, and several other factors, but mostly the first two we’ve just covered.smile_wink

    SaaS for very small business: that’s the clear-cut lab case for the click-to buy pull model to work.  In fact in this respect (sales model) I believe the business size is the no.1 determinator.    Some solutions will have to be configured and may even require pre-sales business process consulting.  This inflexion point will clearly be higher for functionally simpler solutions, like CRM and lower for integrated business management systems, like NetSuite or SAP’s Business  ByDesign. 

    Once you reach that inflexion point, you’re in a more interactive, lengthier sales process, and that’s typically face to face.  At least that’s what we’re conditioned to: but it does not have to be that way.  That will be the subject of another post – to come soon.

     

    Update:  Ben Kepes challenged #1 on his blog, and to some extent I have to agree.  My post here is continuation of a discussion we started at the virtual SAP Marketing Community Meeting, and my mind-set was still business process software, e.g. CRM, ERP..etc, but I forgot to specify that.  Instead of replicating the argument, why don’t you read my response to his response at Ben’s place.

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    Benchmarking: No Longer the Hidden Business Model in SaaS

    The cat is out of the bag – was my first reaction when FreshBooks announced the launch of their new benchmarking service in October 2006.  Then, and later I called it the hidden business model in SaaS:

    He basically announced the hidden value proposition enabled by SaaS: competitive benchmarking. All previous benchmarking efforts were hampered by the quality of source data, which, with all systems behind firewalls was at least questionable. SaaS providers will have access to the most authentic data ever, aggregation if which leads to the most reliable industry metrics and benchmarking.

    With Google’s entry today, benchmarking is no longer the hidden business model: it has just gone mainstream.  Potentially great value added service, a new revenue source for the provider, which may even allow them to give the core service away for free.

    Give away?  Do you think I’m smoking something?   Read Jeremiah Owyang who predicted that storage companies will (?) eventually pay for your data. smile_shades

     

    Related post:  Dennis @ AccMan Pro,