Skype -- Its Major Service Outages Are Inevitable Time & Time Again -- Here's Why

I use Skype. You likely do too. It's a great voice and video chat service.

But, can you depend on it as a business user? I mean, really depend on it? No, you must have back up plans always ... always.

Last week, as many of you know, Skype suffered a massive service interruption -- for 24 hours beginning on December 22. Essentially, the entire service was down. In a bold move that I fully applaud for its complete transparency and accountability, Skype's CIO, Lars Rabbe, wrote a lengthy blog discussing why and how this happened -- here is the link. (As an aside, this is precisely how companies should treat their customers during major periods of service disruption -- i.e., full transparency and accountability. Major brownie points for Skype on this one.)

Obviously, Skype restored its service, but 24 hours is a long long time if Skype is your primary mode of communication. And, is this an isolated event? Can Skype now institute fail-safes to prevent a massive outage yet again? Is that even possible?

From what I understand from one of the foremost experts on these matters -- former SightSpeed CTO (and now Logitech executive) Aron Rosenberg -- the answer is absolutely not. The problem is Skype's particular flavor or P2P upon which its entire systems sits -- i.e., its supernode architecture. By its inherent nature, Skype's form of P2P apparently is always vulnerable to cascading system failure -- and that exposes all of us users to service interruption. This same risk is not inherent in all P2P systems -- again, it is inherent in Skype's particular implementation of P2P. I urge you to read this former guest post by Aron Rosenberg on this subject -- explaining with great precision why this is the case.

This means that all Skype users -- including me -- should have back up plans when this happens again. Unless Aron is wrong -- which I highly doubt -- this eventuality is an inevitability time and time and time again ...

Again, I like Skype and I greatly respect the company. I'm just pointing out something that all Skype users should know ... and something that is not well understood.

It's That Time of Year Again -- No, Not the Holidays -- CES!

Hard to believe that 2010 is nearly a distant memory. And, that can mean only one thing -- the annual Consumer Electronics Show (CES) is nearly here. Ahh, yes, nothing like starting the New Year with your favorite hundreds of thousands friends as you stroll along the Las Vegas Strip for miles ... and miles ... and miles ("is that hotel getting any closer?").

We at Sorenson Media will be at the show in full force -- taking meetings and soaking it all in. There was a time not long ago when CES was not high on our priority list. But, things have changed a lot -- my meeting schedule for three full days is already nearly full. And, among other things, we have very significant consumer-focused stories that we are in a unique position to tell -- i.e., and among others: (1) enabling consumer-focused services (a la Netflix and others) to deliver the highest quality video to consumers on demand or for streaming; and (2) enabling consumer electronics and mobile eco-system companies to offer their customers a seamless video storage and sharing solution (read more about what I have in mind here by clicking this link to my earlier post on the subject).

In any event, meet me in Las Vegas and let's soak up the local culture together. Please send your meeting requests to my attention at bizdev@sorensonmedia.com

And, don't forget to take your flu shot before you go!

Sorenson Media 2010 -- Our Year in Review (Top 10+ List)

It's that time of year -- end of year lists. And, here's mine for my company, Sorenson Media -- our Top Ten list for 2010 (actually, I am throwing in an extra one for no extra charge):

(1) 35 Percent-plus Revenue Growth. Perhaps most importantly, we experienced significant revenue growth across each product line, highlighted by consecutive quarters of more than 35 percent overall revenue growth;

(2) 30 Percent-plus Staff Expansion. I am proud to say that we expanded our team by more than 30 percent during the past year, including expansion across every department, and particularly in enterprise sales to meet the needs of new clients as the demand for our enterprise-level video encoding solutions accelerates (more on that below);

(3) Major New Enterprise Customers. We had several significant new customer “wins” for our portfolio of best-in-class video solutions, including Shutterfly, Go Daddy and Compuware Gomez; expect many more significant announcements in early 2011;

(4) Major New Sorenson Spark Licensees. we also experienced major expansion of our Sorenson Spark codec licensing program, which now includes some of the most recognized and innovative consumer electronics and mobile brands (including LG, Samsung and others);

(5) Released Sorenson Squeeze Server. In November 2010, we launched the first enterprise-grade, cloud-based transcoding service, Sorenson Squeeze Server. This new first-of-its kind enterprise solution offers what we believe to be the highest quality, most scalable, flexible way to encode video quickly and efficiently and with all the inherent benefits of the Cloud (our early customers seem to agree);

(6) Partnered to Create Squeeze Solution Pack. In a continuing relentless effort to out-innovate, we also partnered with recognized cloud leaders RightScale and Aspera to create the first cloud-based software stack for high-volume, scalable video encoding queue management and fast file transfer;

(7) Released Sorenson Squeeze 6.5. In September 2010, we launched Squeeze 6.5, the newest version of our award-winning desktop encoding application and total workflow solution for video professionals and businesses (which featured AVCHD decoding, improved filtering capabilities and the enabling of users to directly publish to Amazon Web Services);

(8) Launched Major Update to Sorenson 360 OVP. As part of our continuing effort to offer the most differentiated and highest quality video encoding solutions, we also launched a new version of our complementary Sorenson 360 online video platform in May 2010 (which featured an enterprise-level content management system that enabled users to directly publish to a host of locations using a dynamic feature set, such as playlist functionality and fully customizable video players);

(9) Announced Video Optimization and Support for Apple’s iPad. We were among the first to optimize for the Apple iPad and other Apple devices on THE day those Apple products were available;

(10) Released New VP8 WebM Support. In May 2010, and at Google’s invitation, we were the first to introduce immediate support for the new VP8/WebM ecosystem, enabling users to encode directly to the WebM format using the VP8 codec; and

(11) Named Winner of Streaming Media European Readers’ Choice Award. In October 2010, after winning the award three years straight in the United States, Sorenson Squeeze was recognized as the top transcoding solution in Europe (a further indication of the power of our brand worldwide).

I am pleased with what we accomplished in 2010 -- but, as cliche as it sounds, we are just getting started. We see 2011 as being an even-more-compelling breakout year, particularly for our Cloud-based transcoding solutions.

Merry Xmas Sonic! Your $720 Million Gift (Thanks to Rovi)

Wow, I didn't see this coming! Rovi (formerly Macromedia) is buying Sonic Solutions for $720 million. This follows Sonic's buy of DivX earlier this year. It truly is the season of giving!

Congratulations to Chairman Bob Doris, Mark Ely and others at Sonic (for whom I previously consulted back in the day); and congratulations (again!) to my good friend Kevin Hell (former CEO of DivX).

Sony Unwraps New Online Music Service (Again)!

Sony has launched its new online music streaming service, which comes bundled on many of its new TVs and other devices. It is available now in the U.K. and Ireland. The company previously tried to "connect" with music lovers with its, uh, "Connect" service. That didn't work. So, will the second time be the charm?

I previously wrote about my predictions in this regard -- click here to read.

HAPPY HOLIDAYS!

Not to Be a Scrooge, BUT ...

... does ANYONE read those generalized Happy Holiday email cards from business contacts? Or do you instinctually delete them like I do (and I am a sentimental guy!)? I mean -- what's the point?

Anyhow, HAPPY HOLIDAYS! (am I guilty too by posting this warm wish in my blog?)

Mobile Live Video -- Early Doubters Are Doubters No More

Several years ago, when I was CEO of consumer video chat leader SightSpeed (acquired by Logitech in 2008), I predicted that mobile live video (both two-way video chat and one-way "see what I'm seeing") would be massive. That consumers and business users alike would eat it up. Here is one of my post about the subject a few years back (click here) -- in it, I described some of the primary use cases that I foreshadowed.

At the time, there were numerous doubters -- in fact, I think it is fair to say that doubters significantly out-numbered believers like me. Well, guess what, they are doubters no more.

Mobile live video is everywhere this holiday season -- in fact, it is used by some of the biggest names in consumer electronics and technology as THE headline and differentiating feature of their products. Consider this -- Apple and its iPhone 4 (Face-Time); Google, its CE partners and Droid phones; Samsung and its Galaxy tablet; and Sony and its new Google TV TVs. And, this is still just the beginning for mobile live video (and overall mobile video for that matter).

Hey doubters -- what do you think now?

As I wrote over four years ago (in another post on the subject), "If you build it, they will come ...."

Top 5 Predictions for Online Video in 2011

Over the weekend, Jeremy Allaire -- a respected colleague in the online video space -- wrote his Top 5 Predictions for Online Video in 2011.

Here is the link -- it is worthy of a read (click here).

Of particular note to me are the following nuggets (on which I give my own added and expanded thoughts below):

(1) "Web video is just getting started" -- I agree 100%, as I have written several times that I believe that online and mobile video are only in the 2nd inning of a 9 inning game; as pervasive as Web video appears to be, it is early, early, early and we ain't seen nothin' yet;

(2) Connected TV platform wars -- once again, I am in violent agreement -- screens two and three (i.e., the living room and the mobile phone) are directly in the lines of sight for many of the largest companies in the world, with billions of dollars at stake; again, it is early, early, early and we are now in a phase of massive experimentation. Here's a critical thing that few talk about -- it is not all about premium TV and motion picture content. The companion to that is private personal video -- i.e., your videos of your families and friends that you don't wish to share publicly on YouTube, etc. A massive opportunity is to store and share your personal videos with the highest quality on any platform (including the living room);

(3) Over-the-Top Internet TV -- I agree with Jeremy, Google TV and other "Internet TV" initiatives will struggle to gain real significant acceptance until those services can significantly deepen their content offerings to include the freshest motion pictures and television programming; and, that won't be easy, since the studios will resist throughout 2011 until they get paid top dollar;

(4) Video Ubiquity -- Every Company is a Video Company -- again, I wholeheartedly agree. Remember, online video is much more engaging than text or still images; that means that businesses of all shapes and sizes will be able to harness the power and unique impact of video to market better, engage more with customers and prospective customers, and simply sell more -- in other words, drive more revenues and better build your businesses. More revenues equals more demand -- every business ultimately will "get" this in the same way they now understand that they all need a Web presence;

(5) Proliferation of Video Standards and Devices -- things will only get significantly more confusing for businesses and video content providers throughout 2011; they will increasingly turn to those companies that can solve those problems (so that they don't have to).

Bottom line -- online video battles will continue in the years ahead -- I like where we sit at Sorenson Media (i.e., right in the heart of it all).

Mobile 2010 -- The Video Year in Review

What happened in mobile and Internet video in 2010? What were the big stories? The trends?

Don't ask me -- watch this video instead (click on this link) -- trust me, it is compelling (and demonstrates the inherent power of video over text in conveying the message).

The Art of Partnering Successfully -- Here's How

I have been fortunate to have led several successful companies that have achieved great results both for investors and employees alike -- as well as its partners. All of my VC-backed companies (eNow/Relegence first, Musicmatch second, SightSpeed third, and now Sorenson Media) have been partner-driven -- and I have focused on building successful partnerships of all kind (distribution, marketing, joint ventures, licensing) throughout my ever-lengthening two decade plus career.

I frequently am asked the fundamental question -- how do companies partner effectively and why have your relatively small companies (i.e., the "Davids" in this discussion) proven to be a better fit than 800 pound "Goliaths" for global blue-chip partners like Logitech, Dell, Google, Shutterfly and numerous others?

Of course, there is no "one answer" to this question -- several factors come into play. But, consider these as being absolute prerequisites to partnership success (and -- to be clear -- success means first and foremost success for your partners):

(1) You must be best in class, period. At Sorenson Media (as well as my former companies) this IS our mantra. And, in the case of Sorenson Media, as online video has now become strategically critical to many (with emphasis on "many"), we are THE most established brand and company for encoding in this online video "space" period and, accordingly, we are a natural choice for partners; no other companies (big or small) can say that; to be clear, this is a badge of honor rather than boasting; we don't and cannot rest on our laurels -- we absolutely must out-innovate and delight our users and partners alike (after all, partners are also our customers); we must listen and learn from them -- that is the best way to improve; and, we must never take our users and partners for granted; we must continuously earn their trust; we can do this better than the "Goliaths" because each partner matters more to us (significantly more) than they would to larger companies driven by their own agendas; we are like Avis -- we simply try harder!;

(2) You must be flexible and open. Sorenson Media supports the widest array of formats both on the input and output side (we are known as being Swiss in this way, because we are neutral in this regard -- others in our "space" (both big and small) are not -- case in point, Apple's Final Cut (and its Compressor encoding engine) which does not support Flash; this is a critical differentiator for us compared to the competition;

(3) You must be built to partner, partnership "friendly" and partnership proven. Sorenson Media WAS built to partner, IS partner "friendly," IS partner proven, and IS a partner for the long haul -- and this ain't just talk:

First, our architecture, our back-end, our customer support, all of it -- was built with partnerships in mind; we are built to scale and have an established and proven Cloud-based global infrastructure; we also can be far more flexible than others (both big and small); we can implement quickly and efficiently, and we can deliver important back-end reporting and more; we also prioritize customer support and take it very serious, because all success flows from customer satisfaction and we know we need to continuously get better;

Second, our team -- both on the business and development side -- is partner "friendly"; we have extensive partnership experience and we pride ourselves in listening to our partners and meeting THEIR timetables and development roadmaps and THEIR needs (as just one example, we are happy to customize our partner solutions and white label them); others (big and small) simply are not and cannot be as flexibl, because they were not built with partnerships as a foundation -- in other words, it is not part of their DNA. Partnering effectively is a fundamental aspect of our growth strategy. So, get to know your partners at an individual level to understand their needs. If they are successful, you will be successful.

Third, we are partner proven both on the business side and development side -- we have a long history of working closely with partners; and, of course, we are an established brand with the best reviewed encoding solutions.

Fourth, we are here as a partner for the long haul -- and we have a much different story here than virtually everyone else in the space. We uniquely have been doing this for 15 years and have been long-term profitable. While virtually all other companies are in a constant need to replenish their coffers through more and more VC funding -- and are, therefore, vulnerable -- we have an extremely healthy balance sheet and are in no need for new funding. That means we can focus our time on our partners, rather than on fund-raising efforts. Think of us as being the Allstate of encoding -- "You are in Good Hands."

Other factors come into play, of course, but these are just some of the considerations for companies looking for encoding solutions (which is every company that wants to get its videos online).

One final note -- the fact that our company is best positioned to meet the needs of partners should be of no surprise, because we have seen this time and time before when smaller "nimbler", more focused and more responsive companies succeed over much larger "rivals" who have their own agendas. When I previously served as CEO of SightSpeed and President & COO of Musicmatch, for example, we also succeeded in meeting the needs of multiple partners across multiple channels, even though we too were up against others much bigger than us. The same general concepts and conclusions above applied during those days as well. The point is this -- these same concepts/lessons apply in any industry. They are a roadmap to significantly improve the chances of success.

So, at the end of the day, how do we succeed in partnering? It really is very simple -- we put each individual partner's needs first. While that may sound a bit cliche, you may be surprised how difficult it really is to build a successful business with that kind of overall philosophy and business model. But, we are doing just that. It takes many things to make that happen -- unique talent, unique expertise, unique experience, unique contacts. And, you need all of those things to succeed. That is a tall order.

(4) Oh yes, you must have the right team and passion. It takes one more critical factor -- THE single most critical factor from which all the rest of it flows -- you must have the right team and passion. The passion to innovate. The passion to "win." And, the passion to change the world. I can tell you this -- our team has it in spades. Not only is our team talented and focused -- we "stick to our knitting" and singularly focus on providing the highest quality differentiated video encoding solutions. This is not just a job -- we really want to offer the best solutions for our customers so that they can harness the unique power of offering the highest quality video online.

(NOTE -- this post is a revised version of an earlier post written a couple years back when I was CEO of SightSpeed -- I have updated that post because the same lessons apply -- in other words, these "truths" are universal.)

The Detroit Vikings? Sad, But True

CAUTION -- THIS POST HAS NOTHING -- ABSOLUTELY NOTHING -- TO DO WITH DIGITAL MEDIA (unless I really stretch it and use a DirecTV-To-Go connection ... )

Ahh yes -- my home state -- lovely Minnesota. Home of the wintery-est of winters -- and the frozen-est of the tundras. And, home of my beloved Detroit Vikings ...

... huh, what?

That's right -- Detroit Vikings. Tonight, as you sports fans know, my Vikes play a critical home game against the Giants IN DETROIT! Why? Because our white elephant of a stadium -- the Metrodome -- was trampled on (and deflated ... literally) by a white elephant -- two feet of snow!

I asked my family who still live in Minneapolis (I escaped long ago) why our city couldn't handle 2 feet of snow. In a Monty Python-is way, two feet of snow to me (and other Minnesotans) is a mere flesh wound. Bud Grant, Fran Tarkenton, Alan Page and Jim Marshall would mock that kind of snow -- they would welcome it and welcome the abuse it would heap on opposing teams who came to their old stadium, the "Met" (no relation to the indoor collapsed marshmallow known as the Metrodome). But, of course, the hallowed ground of the old met has been the home of the Mall of America now for nearly 20 years (the only thing retained is a left field seat inside the Mall that shows where home plate was in relation to it -- I think Banana Republic now sits where Harmon Killebrew previously stood tall!).

For the past 30 years, the reality has been that the Vikes -- who play in the land of the rugged -- have shirked that home field advantage to play within an esoteric non-descript indoor environment. If it were the other way -- and we had embraced our snowy roots years ago -- then we would have played outdoors yesterday. And, even if the Vikes would have lost by themselves, I have little doubt that the snow would replace Brett Favre and make the win.

But, alas, that was not meant to be. Instead they play tonight in the Lions' den. Well, at least it is on DirecTV (and I am pleased that I have my DirecTV ... even as I long for the snowy outdoor days of yore ...).

Video Professionals -- Come Together and Market YOURself at "The Exchange"!

Video professionals -- want some completely new, completely innovative, and very very cool? (Well, who doesn't, right?)

Check out "The Exchange" -- the first bona fide marketplace and one-stop-shop for everything you need for your entire workflow (that's right, from video production all the way through video distribution and syndication).

Here, and only here, you can come together, get what you want, share your expertise, learn from other video professionals, pick up innovative new video encoding presets (recipes) developed by some of the most renown video professionals (like Robert Reinhardt), and ADVERTISE AND MARKET YOURSELF AND YOUR SERVICES to other video professionals (and others who are in need of the services and expertise of video professionals).

This all comes from the great minds, passion and creativity of my team at Sorenson Media (this ain't boasting, because I am talking about the team). And, this all comes absolutely free, free, free.

We literally just announced it now -- so, be one of the first to check it out (click here to enter The Exchange), share your thoughts, and let the world know what you do. Here is the official press release.

Skype Moving Calls to the Web -- It's About Time

To date, all Skype calls have required Skype's client application -- i.e., a download and installation of its software. While this software-related requirement hasn't exactly slowed the company down, it certainly wasn't optimal for many.

Well, this is finally changing, as the company apparently plans to release web-based calling (i.e., no download needed) in the next few months. Imagine the possibilities -- simple one-click calling to someone else's LinkedIn profile as an example (in fact, LinkedIn is rumored to be one of Skype's first partners in this regard).

Compelling, eh? Absolutely! Novel and innovative? Nyet.

Interestingly, my former little company SightSpeed (acquired by Logitech in late 2008) featured web-based video calling for years -- here is a link touting this ease-of-use from back in the day.

So, just like Skype's late entry into the realm of multi-party video chat, its new move is a bit late in coming. Has that really hurt the company? Well, not so much.

E.T. -- The Real Thing? NASA to Announce "Astrobiology Discovery" Tomorrow

From the "kind of out of left field" desk -- and not precisely digital media (although the blogosphere most certainly will be abuzz) -- NASA has issued a press release announcing a news conference tomorrow, Thursday, to discuss an "astrobiological finding that will impact the search for evidence of extraterrestrial life." Here is NASA's official press release -- click on this link. And, NASA has chosen to make its announcement at 2 pm Eastern Time (ET) tomorrow? ET? Coincidence? I think not!

Talk about intriguing!

The announcement certainly was intriguing to the Sorenson Media team -- where several anticipate that NASA's announcement will be focused on Neptune's moon Triton. Not necessarily E.T., but perhaps the first concrete findings confirming the possibility of E.T.?

I'll certainly stay tuned.