Power of the Cloud, Prudence in the Cloud -- Preparing Against Inevitable Failures

Cloud computing is powerful. And, it ain't just a fad. For most businesses, cost efficiencies alone warrant migration to Cloud-based infrastructures. Why buy expensive fixed capacity servers when you can pay only for precisely the right capacity you need at any given moment in time? (We at Sorenson Media offer our own Cloud-based transcoding solutions that drive such efficiencies.)

But, what happens when the Cloud "fails" -- and how should companies prepare for inevitable failures (because everything breaks now and then)?

CEO Michael Crandell of our partner RightScale -- which offers Cloud management solutions -- discusses this dilemma and offers interesting perspective in a guest post on industry blog Gigaom. Click here to read it -- I recommend it.

"Giving Tree Movement" Goes Live -- Seeking a Cure to "Race to Nowhere"

Many of you are parents -- so, that means many of you have probably heard of (or even seen) the documentary movie "Race to Nowhere." Definitely thought-provoking.

So, if that is the problem (and, let's face it, it is), then how do parents try to get "somewhere" and counter-act that societal trend?

Check out a new movement aimed toward that end -- "Giving Tree Movement" -- its site just got pushed live this morning. Click on this link.

Transcoding In-House or in the Cloud? -- What to Consider -- Expert Panel Discussion/Video

This "Transcoding In-House or in the Cloud?" expert panel from the recent Streaming Media East conference is definitely worth watching. Not only does it feature a service provider's perspective (Sorenson Media's very own David Dudas, VP Video Solutions), it also features a valuable enterprise customer's perspective (Shutterfly's Karl Wiley, a senior executive who oversees the company's Services business -- including its video service). A packed house watched this panel, making it one of the most popular at the conference.

Cathay Pacific -- Making Flying Fun Again (Yes, Actually Fun!)

It's been a while since I last posted, and that's because I have been on the road for quite some time. Oh, the joys of business travel.

We all know how painful it is to fly -- endless hassles. When was the last time it was enjoyable? Yes, human flight is incredible. But, hassle-free? Not anymore. I had essentially written off that concept as a vestige of a simpler time.

That just changed on this most recent business trip where I just experienced the joy of flying again for the first time in over 10 years -- and I wasn't flying 1st Class ... or even Business Class. It was good old Economy (not even Economy "Plus"). And, I mean I really enjoyed it.

Hard to believe, but here were the ingredients:

(1) a beautiful and hassle-free airport with lighter security (no shoes off, no belts off, no coats off) -- Hong Kong;

(2) an airline that actually believes in using airplanes from the modern era -- Cathay Pacific and its Boeing 777 (which is a great airplane -- comfortable seats; reclinable without getting in the face of the person behind you; huge overhead compartment; restrooms actually usable by real human beings);

(3) plenty of courteous flight attendants who actually smiled and seemingly were authentically happy to assist and make our flights comfortable;

(4) actual meal service (even on a 2 hour flight) for no additional charge; and

(5) amazing service all around, not only from the flight attendants -- but also from every Cathay Pacific person with whom I interacted (at the check-in kiosk, at the jet way, on the plane).

THAT is how to do it -- and, the flight was reasonably priced.

It was fun. Really really fun. (As I write this, I can't believe that I am writing this because the topic is air travel -- but it is true -- and it is eye-opening.) Attention to detail. Attention to the customer. Basic things. Cathay Pacific got it right. Wish others could do the same ... or at least sincerely try.

Skype's $8.5 Billion Pay Day -- Did SightSpeed Sell Too Early?

Skype is now in Microsoft's hands, of course, or a cool $8.5 billion. Good deal for MSFT? Bad deal? TechCruch reported that Microsoft's bid was $4.5 billion greater than the next highest bidder -- Google. So, from a pure price tag perspective, the deal my not make sense. But, here's the deal -- Skype is untouchable from a global communications and brand perspective. And, video chat is now front and center for Skype in its efforts to monetize the ubiquitous service in a big way ... and, we continue to be early in the ultimate video communications opportunity. So, the deal ultimately may prove to be smart. Very smart. (Here is Gigaom's perspective about Microsoft's rationale.)

Some of you may recall that, prior to Sorenson Media, I had the good fortune to serve as CEO of consumer video chat leader SightSpeed. We were a true David v. the Skype Goliath. Yes, we offered the undisputed best and highest quality consumer video chat technology and service. Yes, our P2P technology was superior to Skyp'e problematic and accident-prone "super node" P2P technology. Yes, we innovated, while Skype video chat lagged (as one example, Skype added multi-party video chat literally years after we introduced that key functionality). But, Skype, of course, was Skype -- plain and simple. They had hundreds of millions of registered users -- we had a team of 30. And, we also had a tiny fraction of the war chest available to Skype.

In the second half of 2008, blue chip global CE company Logitech came calling to buy us out. Yes, we knew it was still early in the consumer video chat game -- the vast majority of pundits still were doubters (by the way, where are they now?) -- yet, we had been at this video chat thing for a while and the offer was a strong one and would ensure an extremely positive return on all involved (investors, employees). So, we sold to Logitech in November 2008 for $30 million.

Looking back -- and given Skype's $8.5 billion price tag -- did SightSpeed sell too early? Here are my answers to that question:

(1) you can't look back and live your life/think that way -- anytime you make a significant positive return (and multiple) for your investors and for your team (which we did), you should be happy. It ain't easy to do it -- the vast majority don't. Enjoy it.

(2) we closed our deal -- with healthy multiples for our investors and team -- in November 2008. Think about that for a second. Does that ring a bell? November 2008 was POST crash -- THE worst economic conditions in 75 years since the Great Depression! The bottom had just fallen out in the month before. Yet, we got the deal done -- during a time when no deals were getting done unless they were fire sales. I am extremely proud of this feat -- and the end result.

(3) everyone made money! Not only did our investors enjoy a healthy return on their investment, every single full-time employee made meaningful money as a result of the deal!

(4) virtually everyone retained their jobs and transitioned into Logitech -- this was no slash and burn acquisition. So, the human factor was extremely positive here in all respects.

Again, I am very proud that the end result was extremely positive all the way around for all involved. It was a great team -- and most of them are still at Logitech now nearly 3 years later. That is extremely rare.

So, do I have any regrets about our $30 million price tag in the face of Skype's billions?

No way. SightSpeed did many great things -- it created a lasting legacy (it is the foundation for the Logitech Vid service, among other things). And, everyone involved did well under anyone's definition of doing well. So, perhaps we sold a bit early -- after all, the video chat revolution has really taken off since November 2008 (hey doubters, look at video chat everywhere -- including mobile!).

But, then again, perhaps we did not ... The tech world is littered with roadkill from VC-backed companies that held on too long ....

Why Tweet From Top of Mount Everest? Because It's There!

Brilliant sky high marketing (literally) -- yesterday marked the first Tweet from the summit of Mt. Everest. And, in large part, it was a PR stunt for Samsung. Here's that Tweet in all its profound glory:

"Everest summit #9! 1st tweet from the top of the world thanks to a weak 3 signal & the awesome Samsung Galaxy S2 handset!"

Pretty inspirational, huh? What would Sir Edmund Hillary think!

Spotify's New Moves -- No Threat to iTunes

Euro-based online music darling Spotify -- long a press favorite -- just introduced a new set of features that are said to directly target industry behemoth iTunes (click here to read a nice overview of these new features). In bombastic fashion, TechCrunch says of Spotify's new move, iPod "meet your new rival." And, Gigaom calls Spotify a meaningful threat to iTunes.

Here's the thing -- I don't think the folks from Cupertino, and Steve Jobs in particular, are losing any sleep over Spotify. I certainly don't believe (unlike the writer at Gigaom) that Apple will change one thing about its iTunes strategy as a result.

I for one have never understood Spotify's Svengali-like effect on the US tech press (and have written about this frequently). For years now, Spotify has threatened to enter the US market -- but, here we are, and still no Spotify. And, has anyone ever really dug into and challenged its subscription numbers (for churn, etc.)? I have never seen that. What's so different about Spotify in the first place? How does Spotify really differ from not only iTunes (which it can't), but also Rhapsody, Napster, Slacker -- and new online music "big boyz" such as Amazon -- and a long list of others. It hasn't, and it can't.

I, for one, remain a skeptic (although I continue to admire Spotify's PR machine -- that is one place where the service has absolutely differentiated itself by getting much more positive ink than virtually all other music services combined!).

Steve Jobs, undoubtedly, slept just fine last night.

Video -- Biggest Challenge in Video Distribution is Transcoding

Watch this video interview of industry expert Andy Abramson -- couldn't have said it better myself. Transcoding is at the heart -- the absolute core -- of video distribution.

Biggest Problem in Video Distribution is Transcoding - The most popular videos are here

Pandora's Box Filled with Thumbs -- 10 Billion of Them

I have written several times about music streaming service Pandora. I myself am a fan -- and have been a paying subscriber for several years now. Pandora is everywhere. It works well, and is easy, easy, easy. And, it places music discovery front and center (even with its sometimes limited play lists). I like that. I like that a lot.

The basic form of interaction with the service is via "thumbs up" or "thumbs down" icon the user clicks on a particular song. If I click one way or the other, I fine-tune my music listening experience (a "thumbs down" click means that I will not hear that song again, for example). Now get this -- Pandora just recorded its 10 BILLIONTH thumb! THAT is impressive.

So, while I previously have questioned Pandora's actual profitability, no one can question its ubiquity. Virtually everyone I know uses it. And, as you may recall, Pandora recently filed for a $100 million IPO that is expected to value the company at nearly $1 billion.

That kind of cash certainly can buy a lot more thumbs ...

I Had Another Post In Mind, But ... Bin Laden's Compound on Google Maps

There is one news story this morning plain and simple -- Osama Bin Laden.

So, I am ditching my intended post today (about the major cable companies and IPTV) to instead forward on a fascinating tidbit -- i.e., Bin Laden's "in plain view" massive compound is, not surprisingly, already on Google Maps. Click here for that link.

And, here is Gigaom's "take" on the new stages of news propagation in this age of social media -- click here for that story.