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Morsels from the Crunchies, or Whatever Happened to Business Software?

Now that The Crunchies, the Internet Startup world’s equivalent of the Oscars are over, the winners announced, a lot of champagne consumed, let me go back to a few thoughts that have been on my mind throughout the whole show.

First of all, it was nice to see so many startups recognized, meet familiar faces again, and I join the chorus in thanking TechCrunch, ReadWriteWeb, VentureBeat and GigaOm for putting the show together. Special kudos to Om Malik for coming only three weeks after his heart attack.

Second, I can’t help but think that some of the categories were .. well, almost deterministic, leaving zero chance of winning for the “little guys” lumped together with a giant. Right out of the gate, the first category, Best gadget/device: iPhone, Kindle, Ooma, Pleo, Wii. C’mon, did anyone doubt for a minute the iPhone would win? Or look at the Best mobile startup, where the finalist were AdMob, Fring, Loopt, Shozu, Twitter. Oh, please, 3 relatively unknown names against Twitter, a mega-phenomenon… smile_sarcastic

The other thought I’ve been pondering ever since the show is whatever happened to business software? The Crunchies were yet another proof that “enterprise isn’t sexy“: this was all about consumer-glitz, with a few startups who cater to businesses. That said, at least there was an Enterprise startup category, and I was really glad to see my friends at Zoho win it. Although I wholeheartedly believe they deserve it, this was by far not a slam-dunk category, with Zoho and 37signals, which has a religious cult-like fan-base being the two chief contestants.

Perhaps the Zoho team felt a bit of extra satisfaction, given that 37signals originally questioned their viability, and called them copycats rather than innovators. Well, the innovation debate definitely ended a few weeks ago, when PC World picked Zoho’s Notebook as one of the 25 Most Innovative Products of the Year. While the Crunchies were clearly a popularity contest (with over 100,000 votes) PC World’s list was compiled by professionals. This list was notably full of gadgets, and the only other software products preceding Zoho were Google Gears and the Facebook API.

Back to the Crunchies, Enterprise category, 37signals and Zoho are diametric opposites in many ways: 37signals product philosophy is all about simplicity, “products that do just what you need and nothing you don’t” while Zoho believes in functional richness, and their customer service attitude is quite different, too. Yet I believe they are both good companies, and there’s a clear demand for their products, which is well proven by the hundreds of thousands of loyal customers. Neither of them are really Enterprise software companies though. 37signals caters for what they call the “Fortune 5,000,000” and Zoho clearly stated their mission to be the “IT for Small Business” – not that a subset of their portfolio, the Office Suite could not become Enterprise-ready, but for now it’s not their primary focus. And focused they are …

I think the Crunchies used the term Enterprise quite liberally – I would have called this category Business Software. Now, if the names IBM, HP, SAP, Citigroup, Boeing, BMW, Shell, McDonalds, Pfizer sound familiarsmile_wink, I’m sure you agree that the company who claims these and others customers is truly an Enterprise Software company. Yet Atlassian ended up in the International category, to their bad luck, as they got paired up with Netvibes. The two are apples and oranges. Atlassian is a very successful company, but the people who buy enterprise software are not the types who hang out at the Web 2.0 tech blogs or vote for the Crunchies; Atlassian stood no chance against Netvibes, with their tens of millions of individual users, all potential voters in this popularity contest.

What do three so different companies, Atlassian, 37signals and Zoho have in common? All three are bootstrapped, fast growing, financially successful and follow the “old-fashioned” business model of making good products and charging for it. I could not help but think of these guys while listen to the announcement of the Best Bootstrapped startup category, decided between FriendFeed, PoliticalBase, ProductWiki, Techmeme, UpNext. Or while listening to the panel discussion moderated by Dan Farber, where Matt Marshall expressed his astonishment how far the ad-based business model propelled us, and was wondering if advertising as the only business model would work in the downturn (no R-word!). If we had to pick the survivors of a potential downturn, these three companies are certainly safe candidates. The good old business model of charging for your product, which, incidentally, your customers love works wonders. smile_regular

Of course there was a lot more to the Crunchies, but it’s been all more then adequately covered, and I wanted to focus on business software now. But…well, I am a guy and guys love cars… so I have to mention the Cleantech category, won by Tesla, makers of this beautiful electric sports car. The only problem is, the car does not exist yet, release date has been pushed out repeatedly, the company had to go back for repeat funding, just fired a bunch of people, including the VP Manufacturing, Lead Engineer if the motor team… but hey, why not give them the Award and keep on dreaming (about the car). smile_embaressed

Update:  Apparently I am not the only one questioning the rationale of some category assignments at the Crunchies; read CenterNetworks on user-generated content.

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Microsoft Decides You Don’t Need Your Old Data

Do you think old, archive data on your computers is safe? Think again. Or just re-define safe: so safe that you can’t access it yourself.

In it’s infinite wisdom Microsoft decided certain old documents, including those created by their own Word, Excel and PowerPoint may pose a security risk, so they decided to block them in Service Pack 3 to Microsoft Office 2003. SP3 came out in December September (thanks for the correction) so you may or may not have it yet. Here’s the “fun” part:

  • There is no clear definition of what’s blocked: the easy one is PowerPoint, where anything before 97 is dead, but as for Word or Excel (let alone other, previously compatible programs), you have to rely on this cryptic description by MS.
  • There is no warning whatsoever at the time of installing SP3
  • Even if you know what’s coming, there’s no way to easily locate and convert what is about to become inaccessible on your computer. Disaster may hit months or years away, when you need to access an archive file, but can’t.

Now, before you shrug it off, remember, this isn’t simply abandoning users still running pre-historic versions of software; we’re talking about data files here. You may run the latest release of all applications and still have no reason to touch old documents. After all, that’s what an archive is all about – you *know* your documents are there and will be accessible, should the need arise at any time in the future.

Back in the 80’s and 90’s paperless office was a popular phrase but remained largely a dream, since a lot of information still originated in paper form. The balance has largely shifted since then: the few things I still receive in paper format either end in the waste-basket, or I quickly scan them trusting that with cheap storage and powerful search I will always be able to pull up anything I need. I am finally living in a largely paperless world. But Microsoft just violated that trust, the very foundation of going paperless. Of course I shouldn’t be entirely surprised, this coming from the company which previously decided that the safest PC is a dead PC.

Solution? Microsoft offers one, in this article: tinker with your Registry, an admittedly dangerous, and definitely not user-friendly operation. I prefer Wired’s alternative:

Naturally, there’s an alternative which is somewhat easier (and free): just grab a copy of OpenOffice which can handle the older file formats. Once you’ve got them open, now might be a good time to convert them to ODF documents lest Office 2017 decide to again disable support for older file formats.

And of course I wouldn’t be mesmile_wink if I didn’t point out that this, and many other headaches simply disappear when you ditch the desktop and move online. Web applications typically don’t have major new versions, they just get continually updated (e.g. Zoho updates all their applications every few weeks). When that’s not the case, like when Zoho Show 2.0 was released recently and it required updating the user documents, the service provider takes care of it. They work for you – you don’t care about program versions anymore, just have access to your data. Anywhere, anytime.

Related posts: CNet, Ars Technica, Compiler , An Antic Disposition, AppScout, Security Watch, Download Squad, Blackfriars’ Marketing, Feld Thoughts. The winning title comes from The J-Walk Blog: Office 2003 Downgraded With Service Pack 3.

Update: Phil Wainewright brings up an entirely new aspect of this issue: Microsoft breaks the perpetual licence covenant.

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Intuit’s Update Fiasco: There is a Better Way

Intuit appears to have entered a new market, that of permanent file deletion. Whether you want it or notsmile_angry:

“Mac users who installed an update to their QuickBooks software over the weekend were met with a nasty surprise: missing data.

The update caused several Mac users to lose data from their Desktop folders, infuriating many who were hoping to close their books this week for 2007, only to lose valuable purchase orders and spreadsheets” – reports News.com.

Intuit’s recommendation:

“For those of you who have been affected, we are testing out options for recovering the deleted files. Our recommendation for now is to turn off your computer and do not use it further. If you continue using your computer or reboot, you may over-write the area on the disk where the deleted data is stored, preventing any recovery efforts from being effective.”

Hm…considering the type/size of businesses typically using QuickBooks, not touching their computer in the middle of the year-end rush may not be a viable option.smile_sad. Intuit is clearly throwing in support resources, customers can register and will be called back to individually assess their situation. For many, the damage may very well be more than losing a few hours:

(This is where I wanted to quote an Intuit forum message claiming lost file, lost business damage – I saw the post 15 minutes ago, now it’s gone. Could it have been deleted?)

We’re living in the age of crappy software. QuickBooks is not alone, this incident is just more dramatic than the typical update failures. Even when updates don’t fail, they are becoming a nuisance. Last week I just pinged someone on Skype, when my Internet connection dropped again – a “standard” Vista feature, to be remedied by a reboot. So there I was, waiting to resume the chat session when the machine decided to implement 9 updates. This being a ‘screamer’ PC the update only took 7 minutes before shut-off, and a few more to configure on re-start; by the time I could come back online, my chat partner was gone. The two XP laptops in the house are a lot slower, so I just left them alone to complete their 11 updates… experience tells me sometimes these take half an hour or more.clock Who has time for this? Between the applications we actually use and all the crapware needed just to keep our computers running (virus scan, firewall, anti-spy, desktop search, backup, synchronization …etc), it’s just getting way too much to deal with.

By now my regular readers probably know where I am heading: there is a better, safer, easier way. Proponents of Cloud computing (On-demand, SaaS) typically point out portability, collaboration as key benefits, but there’s another huge benefit: ease of mind. The web applications I often use (Gmail, the Zoho Productivity Suite, CRM..etc) get updated just as frequently (actually, more) than their desktop counterparts, but I don’t have to worry about these updates: the service provider takes care of them. The whole process is not transparent to me, the user. I dumped the responsibility on the service provider: they work for me. smile_wink

Are you ready to have peace of mind?

Update: I could not have made this up: just as I was about to post this, I checked TechMeme for updates to the Intuit story, only to see this headline: Microsoft security update cripples IE .

I rest my case.

Related posts: support.quickbooks.intuit.com, CNET News.com, The Apple Core, CrunchGear, MacUser, Macsimum News, Ubergizmo, Apple Gazette, O’Grady’s PowerPage, Zero Day , Donna’s SecurityFlash, AccMan Pro.

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Will Google Enter the Business Applications Market?

Google’s next killer app will be an accounting system, speculates Read/WriteWeb. While I am doubtful, I enthusiastically agree, it could be the next killer app; in fact don’t stop there, why not add CRM, Procurement, Inventory, HR?

The though of Google moving into business process / transactional system is not entirely new: early this year Nick Carr speculated that Google should buy Intuit, soon to be followed by Phil Wainewright and others: Perhaps Google will buy Salesforce.com after all. My take was that it made sense for Google to enter this space, but it did not need to buy an overpriced heavyweight, rather acquire a small company with a good all-in-one product:

Yet unlikely as it sounds the deal would make perfect sense. Google clearly aspires to be a significant player in the enterprise space, and the SMB market is a good stepping stone, in fact more than that, a lucrative market in itself. Bits and pieces in Google’s growing arsenal: Apps for Your Domain, JotSpot, Docs and Sheets …recently there was some speculation that Google might jump into another acquisition (ThinkFree? Zoho?) to be able to offer a more tightly integrated Office. Well, why stop at “Office”, why not go for a complete business solution, offering both the business/transactional system as well as an online office, complemented by a wiki? Such an offering combined with Google’s robust infrastructure could very well be the killer package for the SMB space catapulting Google to the position of dominant small business system provider.

This is probably a good time to disclose that I am an Advisor to a Google competitor, Zoho, yet I am cheering for Google to enter this market. More than a year ago I wrote a highly speculative piece: From Office Suite to Business Suite:

How about transactional business systems? Zoho has a CRM solution – big deal, one might say, the market is saturated with CRM solutions. However, what Zoho has here goes way beyond the scope of traditional CRM: they support Sales Order Management, Procurement, Inventory Management, Invoicing – to this ex-ERP guy it appears Zoho has the makings of a CRM+ERP solution, under the disguise of the CRM label.

Think about it. All they need is the addition Accounting, and Zoho can come up with an unparalleled Small Business Suite, which includes the productivity suite (what we now consider the Office Suite) and all process-driven, transactional systems: something like NetSuite + Microsoft, targeted at SMB’s.

The difficulty for Zoho and other smaller players will be on the Marketing / Sales side. Many of us, SaaS-pundits believe the major shift SaaS brings about isn’t just in delivery/support, but in the way we can reach the “long tail of the market” cost-efficiently, via the Internet. The web-customer is informed, comes to you site, tries the products then buys – or leaves. There’s no room (or budget) for extended sales cycle, site visits, customer lunches, the typical dog-and-pony show. This pull-model seems to be working for smaller services, like Charlie Wood’s Spanning Sync:

So far the model looks to be working. We have yet to spend our first advertising dollar and yet we’re on track to have 10,000 paying subscribers by Thanksgiving.

It may also work for lightweight Enterprise Software:

It’s about customers wanting easy to use, practical, easy to install (or hosted) software that is far less expensive and that does not entail an arduous, painful purchasing process. It’s should be simple, straightforward and easy to buy.

The company, whose President I’ve just quoted, Atlassian, is the market leader in their space, listing the top Fortune 500 as their customers, yet they still have no sales force whatsoever.

However, when it comes to business process software, we’re just too damn conditioned to expect cajoling, hand-holding… the pull-model does not quite seem to work. Salesforce.com, the “granddaddy” of SaaS has a very traditional enterprise sales army, and even NetSuite, targeting the SMB market came to similar conclusions. Says CEO Zach Nelson:

NetSuite, which also offers free trials, takes, on average, 60 days to close a deal and might run three to five demonstrations of the program before customers are convinced.

European All-in-One SaaS provider 24SevenOffice, which caters for the VSB (Very Small Business) market also sees a hybrid model: automated web-sales for 1-5 employee businesses, but above that they often get involved in some pre-sales consulting, hand-holding. Of course I can quote the opposite: WinWeb’s service is bought, not sold, and so is Zoho CRM. But this model is far from universal.

What happens if Google enters this market? If anyone, they have the clout to create/expand market, change customer behavior. Critics of Google’s Enterprise plans cite their poor support level, and call on them to essentially change their DNA, or fail in the Enterprise market. Well, I say, Google, don’t try to change, take advantage of who you are, and cater for the right market. As consumers we all (?) use Google services – they are great, when they work, **** when they don’t. Service is non-existent – but we’re used to it. Google is a faceless algorithm, not people, and we know that – adjusted our expectations.

Whether it’s Search, Gmail, Docs, Spreadsheets, Wiki, Accounting, CRM, when it comes from Google, we’re conditioned to try-and-buy, without any babysitting. Small businesses don’t subscribe to Gartner, don’t hire Accenture for a feasibility study: their buying decision is very much a consumer-style process. Read a few reviews (ZDNet, not Gartner), test, decide and buy.

The way we’ll all consume software as a service some day.

Update: As an aside, the Read/WriteWeb article that inspired this post demonstrates the “enterprise software sexiness” issue, which was started by Robert Scoble and became a Firestorm, per Nick Carr. I really think it’s a very thoughtful post, which, quite unusually for Read/WriteWeb sat alone at the bottom of TechMeme, then dropped off quickly. Now, has this not been about Accounting (yeah, I know, boring) software by Google, but, say adding colors to Gmail labels, in the next half an hour all the usual suspects would have piled on, and this would have taken up the top half of TechMeme. smile_sarcastic

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Ulteohhhhh…

Before I say anything, I want to prefix this post by stating that I am an Advisor to Zoho, which can be perceived as a competitor to Ulteo, the company that just announced providing OpenOffice On-Demand. That said, I often I’ve repeatedly stated my belief that we’re at a state of early expansion for Software as a Service, and for now, the more players the better. It’s not about slicing the pie yet, it’s about making sure the pie will be huge:

Summing it all up, I believe the winner of the “on-demand race” will not be Google, Zoho, or any of their competitors – the winners will be the customers who will have a lot more choice in picking the right business solutions later this year.

So I am happy to see new On-Demand offerings that work – and am royally p***ed when they don’t. I tried to use Ulteo, repeatedly. At the first attempt in the morning, I got stuck with a blank screen:

Next I tried in the evening: I spent a minute or so at the above blank screen, but finally I got some signs of life:

Oops… I don’t know of another instance, I don’t have Openoffice installed on this machine, and a Vista glitch forced me to reboot since my early morning attempt with Ulteo. And I certainly have no clue who the *** user u7670 is or how I should close Openoffice for this user on the Ulteo servers. But let’s click Yes to continue anyway:

Why am I in document recovery mode and just what is it I am about to recover? Finally, I got into this somewhat broken screen:

Not a very positive experience, if you ask me. On the other hand, it’s still more than the previous web-office “announcement”: Live Documents, which is still to materialize…some time next year.

Like I said, I am happy to see more On-Demand services. Those that actually exist, and perhaps even work.smile_eyeroll

Update: Jason Brooks at eWeek had similar experience.

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The Wait is Over – Zoho Show 2.0 is the Real Deal

If there’s one application where the benefits of collaborative creation, sharing, easy access from anywhere speak for themselves, that’s presentations. After all, we rarely create presentations to ourselves: it’s a one-to-many, or more typically few-to-many situation. But dealing with version number 115 of the Sales Presentation, just figuring out which one is current, let alone contributing to it while someone else might be working on a different version is a nightmare – and when you’re ready to present, you’re still prone to accidents like this.smile_embaressed

However, until now, we did not have a truly powerful online Presentation tool. Today (actually, on the weekend) it all changes: Zoho Show 2.0 is a truly PowerPoint-class application to collaboratively create, edit, show and share online presentations.

The user interface has been completely revamped, and you can start building your presentation by picking one of the 50+ default themes. You’ll find extensive support for shapes, clip-art, flow-charting, bullets and numbering. Images can be easily manipulated, rotated, flipped around.

Most presentations don’t start from scratch though (you had to get to version #155 somehow..), so Zoho’s import facility is now significantly improved. I’ve tested it by importing several PPT decks that had suffered some deterioration in Show 1.0 – they come out perfectly in 2.0.

Show 2.0 now is a perfect online replacement for PowerPoint, except for transition effects, which are in the plans for Zoho. And that’s a comparison from a single user’s point of view. But again, presentations are rarely single-user projects… Zoho Show has built in Chat to facilitate work with your co-creators, and it also integrates Zoho Meeting, a full-blown conferencing, desktop-sharing application. Here’s Wired on the subject:

Given the slew of new features and slick interface, it makes more sense to compare Zoho to Powerpoint than other online competitors like Google. But even against desktop apps Zoho Show comes out a ahead in many areas — version control, sharing, online collaboration and ability to embed finished slideshows on your website are all features you won’t find in most desktop applications.

As they say, a picture is worth a thousand words, so I’ll stop talking – here’s a Show 2.0 presentation instead:

There’s also a video, which I am not embedding, as my blog often chokes while waiting for Viddler…you can easily watch it here though.

Finally, that remark above about the weekend: this is not a pre-announcement, Zoho Show 2.0 is ready, I’ve played with it. However, the servers will be updated this weekend, as there may be some downtime involved, and the Zoho team is trying to minimize the inconvenience. Show 2.0 is expected to be available late Sunday.

Read more on: TechCrunch, Read/WriteWeb, CenterNetworks , Mashable!, Between the Lines, Wired, Zoho Blogs

(Disclaimer: I am an Advisor to Zoho)

Update (12/15): The update appears to be done, if you log in to your Zoho account, you’ll see Show 2.0. (Remember, the update was expected later during the weekend, I’ve just accidentally discovered it now, which does not mean it’s really complete – the Zoho team might very well be still tuning it.)

There are some amazing slideshows in the Public presentations area, like this, this, this, this, this, this, this, this, this and this, just to pick a few.

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Trusting Foldershare – Almost

FolderShare AutoDeletes Files. Whoops – reports TechCrunch. As a Foldershare user I’ve also received the urgent email warning:

From 12/3/07 to 12/6/07, some files may have been accidentally moved from their original folders into the FolderShare Trash folder. The bug that caused this problem has been fixed.
The only files affected are ones with names containing certain characters, such as accents, trademark signs, etc. For example, “España.jpg.”

I happen to have an accent in my family name (which I dropped since I moved to the US – simplicity!), so Foldershare nuked quite a few important documents. Thankfully, the email came in time to recover all from the trash folder.

This is not the first time “accidents” happened, only the first time it was on such a mass scale Microsoft had to acknowledge it. (Foldershare was originally developed by startup Byte Taxi, which got acquired and the product is now part of Microsoft’s Live Services).

Previously I used Foldershare to duplicate all my data on a new laptop – since I had already used it to synchronize two other machines, I already had the libraries defined, just had to add the new computer. A random check at the end of the process uncovered 165 (!) p2p files (placeholders) with the actual content missing. Nothing in Foldershare warned me about these, and there was no way to force the placeholders to download the actual content. Foldershare Support was clueless, and to day I still wonder if I hit some unpublished limit with the massive amount of data I wanted to copy all at once (not the typical use case for Foldershare).

Not on the above scale, but similar glitches still occur, where a file is not synchronized, a .p2p file is created instead: I have learned there is no way to fix those, just delete the .p2p, rename the original file to something else on the source machine, and the new file will likely be synchronized.

Another annoying bug is when for some reason a file is locked on the destination computer and Foldershare chokes. It does not allow to skip the “offending” file, the only choices are retry (won’t work), or shut Foldershare down – that’s just plain stupid.thumbs_down

Despite all the above, I’ve become very dependent on Foldershare: it’s a fundamental piece of my infrastructure. I let it synchronize the two laptops and a desktop, then I use the desktop as the “master” which will back up data online to Mozy. Mozy is a life-saver, and has improved a lot since I first covered it. Of course the third part of my strategy is the increasing portion of content that does not even exist on my local disks: documents created by Zoho Writer or Sheet, safely in the cloud.

All in all, this system works, but Foldershare is a step shy from being a “set-once-forget-it-even-exists” stage, which is what these infrastructure services should aim to deliver.

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Now You Can Really Zoho Offline

As much as I am a certified web-app fan, I’m not naive enough to believe I’ll always have 100% broadband availability. Crazy shooters, limited conference availability, or just traveling to less covered areas (and I don’t mean here) – there will be times when we need our documents offline.

That’s why I’m happy to see Zoho Writer get offline editing capabilities today. The offline implementation is based on Google Gears, which, ironically, has yet to show up in Google’s own Apps. This video tutorial walks you through the new features – note, the steps to install Google Gears are obviously required only once. After that, you just click “Go Offline”, and can access your documents at writer.zoho.com/offline. When you’re connected again, click “Go Online” and Zoho will sync your changes back to the original document.

The features are more than covered by all the “big names”, including TechCrunch, Read/WriteWeb, GigaOM, /Message, Digital Inspiration, CenterNetworks, Webware.com and Wired – to name just a few. I’ll focus on what’s still missing, and a few comments.

Yes, this is not a perfect solution – yet. Going offline has to be a planned activity since you actively need to click the option while still online; this is the way Google Gears works for now. But life produces unexpected situations, like the other day when I had to hop on a train, and was staring at an empty Google Reader as I had forgotten to click “Offline” at home (Google Reader’s offline capability is also based on Gears). But Zoho never stops enhancing their products, and they plan to tackle auto detecting online/offline status and periodically sync the contents of online and offline documents.

Some reviewers compare Zoho’s approach to full integration by Live Documents. I find it rather funny: since when can we compare a PR release to existing products? GigaOM’s headline is also quite surprising: Zoho Seeks to Replace, Not Embrace, Microsoft Office. Again, this in comparison to yet-to-be-launched Live Documents‘ “embrace and extend” strategy. What this comparison forgets to mention is that Zoho has their own MS Office plugins, so, using their analogy, Zoho’s strategy includes “embrace, extend or replace”. The choice is up to the users, as it should be.

Last but not least, the little birds are singing that the next Zoho announcement will prove that web-based apps can be on par with their desktop counterparts: care to guess which application I am talking about? smile_wink

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Bite the Hand that Feeds You?

There’s a new online Office player in town: Sabeer Bhatia, co-founder of Hotmail, the web-mail service that perfected viral marketing and got acquired by Microsoft for $400 million, unveiled his free web-office suite yesterday. It does not look at Google, Zoho or ThinkFree, it aims at Microsoft directly:

“We are just a few years away from the end of the shrink-wrapped software business. By 2010, people will not be buying software,” Mr Bhatia said. “This is a significant challenge to a proportion of Microsoft’s revenues.”

So be it – I am a certified web-app fanboy. I’m still waiting for my trial account (and wonder if I will ever get it after this post) , so I can’t comment on the applications themselves, but I think Mr. Bhatia’s choice of a name is rather tasteless: Live Documents. What’s wrong with that? Nothing.. except the close resemblance to Microsoft’s Windows Live brand. I only have “conspiracy theories” here:

  • Live Documents is a shameless rip-off of the MS brand, Mr. Bhatia is literally biting the hand that fed him and indirectly funded this company.
  • He is riding on Microsoft’s coat-tails: his application is (supposedly) very similar to MS Office 2007, he offers a plug-in to the MS products, uses the MS Office logo quite liberally throughout his site, people know his background with MS – all this creates the impression that his products is somehow jointly developed with Microsoft. (?) While this may help gaining traction initially, I think confusing customers is a very-very bad policy. (But what do I know, I haven’s sold a business for $400Msmile_embaressed)
  • Finally, the most far-fetched speculation: this is indeed Microsoft’s secret weapon, named appropriately so it fits easily after it’s absorbed in a $billion+ deal.

I can’t wait to hear from Microsoft… Don? Cliff? Chris? Anyone?

Update (11/23): Dan Farber on ZDNEt came to the same conclusions – literally.

Update #2: As much as I don’t like the Live copycat, I have to admit calling it “service plus software” is a smart play on Microsoft’s “software plus service“, indicating the shift in priorities. smile_wink

Related stories: Times Online, Techspot, Macworld UK, PC Advisor, Digital Inspiration, Between the Lines, /Message, Rough Type , deal architect, Zoho Blogs, TECH.BLORGE.com, Read/WriteWeb, TechCrunch, Betaflow.

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Zoho in the Entertainment Business?

You read it here first: Zoho must be planning to take over the entertainment business. Need proof? Just watch the promo video for Zoho Creator Mobile version. Gone are the screenshots, canned demos… it’s all Life 2.0 smile_shades

Hm… I hope his sweethearts’s phone number is not real … otherwise he’s got competition for that movie.smile_tongue

On a more serious note: Zoho is mostly known for their Office Suite and are often compared to Google and Microsoft, when talking about documents, spreadsheets and presentations. Database management and application generation are often overlooked, probably since Google does not have anything to offer in these areas. But Zoho does, and in fact that’s the application that attracts the largest active user base. Creator allows non-tech-types (like yours truly) to easily create fairly sophisticated applications, which are often shared by dozens or hundreds of users. There are about 60K (!)applications developed in Creator, used by over half a million people. (Side note: there must be a fair amount of redundancy among 60 thousand applicationss, and while you can share them publicly today, I’d like to see Zoho develop the search / categorization tools to easily locate them; a sort of “marketplace” even if there’s no actual money flow.)

We can’t really talk about Creator without mentioning a related product: Zoho DB. While Creator is an application generator, DB is primarily for data manipulation, analysis and reporting. Zoho CEO Sridhar Vembu explains the differences here.

Computerworld recently listed Zoho Creator amongst the Five free Web apps we can’t live without. There is also a blog started started by users, entirely dedicated to Zoho Creator, with special focus on using it as a small business software platform: Land of Zoho Creator.

(Disclaimer: I’m an Advisor to Zoho.)