The Week in Geek™ – April 23, 2011
I’m once again in ‘crunch time’ as I prepare the June revision of my textbook (read the current edition free online here, or buy print & e-Book versions here). As regular readers know, the Week in Geek may become more of a ‘Month in Geek’ during such times.
Tech Jobs Boom like it’s 1999
Break out that Prince single, in the geek’s world it’s time to party like it’s 1999. High Tech is undergoing its biggest hiring binge in over a decade. Microsoft has announced raises for everyone. Google also gave everyone a raise last year (including paying one uber-geek $3.5 million to keep him from fleeing to Facebook). The search sovereign alone hired 1,900 new employees in just its most recent quarter. HubSpot and Meebo are among the startups that will now pay anyone $10,000 for referring an engineer that these firms eventually hire. And eBay’s recent (rumored $135 million) acquisition of Boston-based Where is in part an enormous experienced-hire program designed to bolster the firm’s mobile efforts. One recruiter says we’re deep in a money war for engineers. “If you are highly talented and risk averse, a major brand (Facebook, Twitter, Zynga) is where you end up” Not only do these firms pay well, but each offers high prospects for the IPO or buyout gravy train. “If you’re talented and not risk averse, you start your own company.”
Facebook Open Sources Its Servers and Data Centers
As Facebook’s VP of Technical Operations puts it, data center plans were like Fight Club with the first rule being that you don’t talk about them. Not any more. Facebook has built the world’s most energy efficient datacenter in Prineville, OR (photo tour and video), and it’s telling the world how it did it. The social network’s Open Compute Project (more video) shares plans and CAD files for things such as the server power supply, chassis, motherboard, and cabinet specifications, battery backup cabinets and data center electrical and mechanical systems. Facebook claims its redesigned, stripped-down servers are 38% more efficient and 24% cheaper than those sold by major manufacturers. Zynga is among the firms considering using Facebook’s design. Serves in the Facebook design are made with commodity x86 (Intel or AMD) chips, use one screw, and snap together in minutes (Container Store-style, as GigaOm put it). The server chassis is a bit taller to accommodate larger, more efficient heat-sinks – claw-like structures on top of chips that draw potentially damaging heat away from sensitive computing components. Better heat-sinking lowers cooling needs. Facebook servers can also run in steamier environments, with Facebook’s Prineville facility operating at 85°F and 65% relative humidity. This lets Facebook rely on evaporative cooling instead of air conditioning. When it’s toasty outside water is sprayed on incoming air to cool it down. And when it’s cold, warm air from the servers is routed to heat up offices. By using a 277 volt electrical distribution system in place of the standard 208 volt system found in most data centers, Facebook has created a hyper efficient system that loses only about 7% of power vs. a 22-25% loss at typical data centers. Facebook has installed a set of solar arrays, too, but it only generates a fraction of heat needed. Greenpeace would have liked the server farm to be placed in a low-carbon footprint area (most of Prineville’s power comes from coal). But sharing ultra-efficient data center plans is a step in the right direction. It also underscores a key fact of Facebook’s strategy. Its competitive advantage isn’t in data center design – it’s in the network effects and switching costs the company’s social network has created. The Register pointed out as much (been reading our case, blokes?).
Inside Amazon’s Cloud Disaster
Cloud computing can bring tremendous benefits. Firms ‘rent’ someone else’s infrastructure instead of having to build out their own. In many scenarios, costs drop and firms can rent more capacity to scale up when need arises. This can be great for startups – allowing many to launch with much smaller capital requirements than in the past. But if your cloud goes down, it can be the equivalent of your ‘front door’ slamming shut – keeping customers and staff out. The April 21st failure of Amazon’s cloud left many startups in the lurch. Hootsuite & Quora were down completely, Reddit was in ‘emergency read-only mode’, and Foursquare, GroupMe, and SCVNGR experienced glitches. For an unlucky few firms, the failure stretched into a second day, while most other Amazon customers, including Netflix & Zynga, appeared to be entirely unaffected.
The cloud crash provides a lesson in fault tolerance & redundancy. And while as of this writing it’s unclear what happened, BusinessInsider points out that the Bezos cloud was supposed to separate parts of its data centers into different “availability zones,” where by an outage in one zone wouldn’t impact others. BI suggests that even though Amazon runs multiple large data centers scattered throughout the US, there wasn’t a complete backup of many cloud client systems that was able to be switched on at another location when needed. The cloud has been pretty reliable, and big firms ranging from Pfizer to the Nasdaq are Amazon cloud customers, but all systems need to be tested as part of a disaster recovery plan – testing which apparently wasn’t thorough enough this time.
Intuit’s Big Refresh
Technology Review covers how Intuit has turbocharged innovations. Among the ruthlessly cool new services is SnapTax, an iPhone and Android app that prepares and files a United States 1040EZ tax form when a user takes a smartphone photo of their W-2. Teams are encouraged to brainstorm several ideas at the outset of a project, instead of getting attached to the first one. Teams also frequently touch base with target customers to get regular feedback to ensure they’re on the right track. The SnapTax team, for example, would trawl Chipotle and Starbuck stores, soliciting feedback from SnapTax’s user demographic used to further refine ideas & designs. For this past tax season the SnapTax app was free to download, but charged $19.95 to file taxes electronically. Intuit is also deep into one the most significant and successful packaged-to-cloud/SaaS shifts in the industry. Fueled by new applications as well as savvy acquisitions (such as Mint.com), Intuit last year had already boasted $1 billion in cloud revenue.
FT Series on The Connected Business
Technology is radically changing the face of the Human Resources function. Consider that firms used to horde their employee directories for fear they’d fall into the hands of a competitor. Now rivals can use soon-to-be-public LinkedIn to offer a rifle-scope talent raid, complete with resume access, the ability to view endorsements, and discrete private messaging. Put this way, the bar for employee satisfaction has never been higher. The Financial Times exposes some other HR-focused developments in its ‘Connected Business’ special section, noting that the face of HR is increasingly a portal, not a person. Software such as StepStone feeds website job postings to LinkedIn, Twitter, Monster, and other sites. Retailer Makor reports these systems have helped save the firm more than $1.2 million in recruiter agency fees, all while increasing the quality of the candidate pool. Another example cites that data mining through shift management software can save firms upwards of 3% of labor costs via more efficient scheduling. And talent management software can help firms track metrics that showcase stars and identify slackers. The talent management software category grew 41% between ’09 & ’10, with two leaders (SuccessFactors and Taleo), both posting 2010 sales above $200 million.
Apple’s Quarter: A Blow Out…Again
The last quarterly report before our students head to Cupertino on TechTrek was once again freakishly strong – providing great fodder for class discussions on strategy, execution, profits, growth, and firm valuation. Cupertino’s quarterly profits were up 95% year-over-year to nearly $6 billion – another record for the March quarter. The firm sold 18.65 million iPhones in the quarter, up over 2x year-over-year. The device is a corporate hit, with 88% of the Fortune 500 testing or deploying the iPhone. Laptop sales were up 53% vs. a year ago. Half of all Macs (both portable and desktop) sold were to new customers switching from Windows-only platforms. Mac sales have outperformed the overall PC market for 20 straight quarters. The firm sold 4.7 million iPads including every iPad 2 it could make. As for iTunes, sales are up 27% in the last year. Over 10 billion apps have been downloaded and Apple has paid over $2 billion to iOS app developers. Although cautioning the situation is unpredictable, Apple claims “we did not have any supply or cost impact from Japan quake in Q2 and we don’t anticipate any in Q3”.
Your iPhone is Tracking You. So What?
Apple’s quarterly numbers came out following reports that iPhones store a local minute-by-minute time-stamped location logs. David Pogue’s blog offers a quick read correcting misinformation and showing examples of what’s really being kept, how it can be accessed, and frames it in the context of what’s really at stake. Wired points out that Apple actually disclosed the practice more than a year ago. Data collection is tied to the firm’s iOS 3.2 move away from Google/Skyhook Wireless location data to its own services. Regular updates (recorded when Location Services are “on” in iOS device settings menu) allow the accuracy of the geographic database to be continually refreshed. The data are anonymized with a random identification number generated every 24 hours, and are transmitted over an encrypted link to Apple every 12 hours. Essentially this means you’re helping build location services by being enlisted as an anonymous mapping censor. So despite headlines this isn’t about a big database in the sky with your name and movements on it. The WSJ (image above left) points out that Google’s been doing this, too (and of course, mobile providers know where an account holder is when they provide voice & data services). One likely gaffe was exposed and this is a very important lesson for tech students: the iOS file was stored unencrypted by default (backups can be set to encrypt in iTunes) and it seems this file will linger seemingly unnecessarily for up to 10 months (odd since anonymous updates are sent to Apple about every 12 hrs). That means that if someone stole your phone or had access to your backup, then they could potentially download a file (consolidated.db) that exposes your movements. This really isn’t a big deal for most users, but potentially quite important for those who count on secrecy. Apple does provide a method for corporate users to remotely ‘wipe’ their missing phones, and the firm clearly understands the importance of user privacy. Analysts suspect that the locally stored file was likely mistakenly allowed to linger, and that the implications of the file weren’t considered when auditing security on the iOS release. In an age of constantly connected devices, constantly changing security threats, rising concerns over privacy, and a high-velocity media that’s always ready to hype a headline, it’s critical that engineering teams consider the broad implications of design, data storage, and deployment.
Eagle Eyes on Turning Point
The moving and powerful work of Carroll School of Management Egan Professor, and Information Systems Department Chair, James Gips is profiled in the PBS documentary Turning Point. Prof. Gips’ work allows severely handicapped individuals to communicate using ground-breaking assistive technology. It is an extraordinary example of research that underscores BC’s tenant of “Men and Women for Others” (the one-hour piece alternates between coverage of Eagle Eyes and another story, The Clark Family and their 21 adopted children, so be sure to watch until the end. And have a hanky handy). Share the link with your loved ones, and take a moment to congratulate Prof. Gips on his inspirational and impactful work. We are all so proud to have Jim as a colleague. Also visit these links to learn more about Eagle Eyes, and the free Camera Mouse technology. You can also read a recent interview with Prof. Gips in the Boston Globe, and coverage in BostInnovation (which includes additional video & images).
Two Teams Tie for First in BC Venture Competition
The track record for the Boston College Venture Competition is extraordinary. In less than three years BCVC-affiliated teams have won competitions at MIT and Yale, enrolled in the prestigious Y-Combinator accelerator, launched multiple products and services, and raised millions in venture capital. Judges claimed the five finalist teams in this year’s competition represented BCVC’s strongest field yet – with pitches on par with the nations’ most elite graduate programs. This year’s competition saw BCVC’s first ever first-place tie between AddItUpp – a novel advertising model that will pay users for answering questions about ads & websites, and MySavvyShoes – a ballet flat for girls that allows for snap-on decorative accessories. Campus phenomenon, the location-based social game Moglo, came in third (their app has already soft-launched in the App Store). And keep an eye on LeaseDash (whose team members won the MIT $100K ESC Mobile Track), and Cura College Counseling (a BC/Harvard college counseling service that’s already serving customers). Congrats to all of the winners – now get big fast so we can keep writing about you! Wondering what last year’s winners PIQC.net are up to? They’ve raised six figures in angel funding and are now out in the Bay Area (along with two other BCVC-affiliated startups, WePay & WakeMate). Check out PIQC’s recently launched SSEO.com and LocalOn.com!
Photos From TechTrek NYC
Finally, on Patriot’s Day (when the Boston Marathon is held) BC’s Information Systems Department held a geek marathon of our own. 25 students (9 grads, 16 undergrads) boarded a bus at 4am and headed to New York City for a full day of meetings with some of the Big Apple’s hottest tech firms. The day started out with Foursquare co-founder Naveen Selvadurai, who discussed the firm’s wildly successful March product update (here’s a video of CEO Dennis Crowley discussing the firm’s vision). Then it was on to TechStars New York, where we met Managing Director Dave Tisch just days after the accelerator hosted over 500 VC and angel investors during its dozen firm showcase Demo Day at Webster Hall. Then it was on to Google New York, where we met with four Eagle alums including Tristan Smith of CreativeLab, who co-wrote the Parisian Love spot that ran during Super Bowl 2010. Next up was Rent the Runway, where BC alum Dan Nova sits on the board, and where BC Alumna Brooke Hartmann (recently quoted in the Wall Street Journal), gave a master class on the red-hot startup. Finally FreshDirect’s senior management team not only shared insight on the firm’s phenomenal success, we also got to sample some of their scrumptious products! The FreshDirect case (scroll down about 1/3 of the page) is a staple in our studies of strategic technology alignment, so this was a particular treat. Thanks to all who so kindly helped make our first TechTrek NYC such as success. Yet another reason why technology studies at Boston College have grown four fold in four years.