Google Billionaires and Their Toys July 7, 2006
Posted by Jerry Bowles in Companies, Google.add a comment
The Wall Street Journal (subscription-required) has an hilarious story this morning about Google founders Sergey Brin and Larry Page squabbling over the size of their beds on a Boeing 767 they were having turned into a “party airplane.” Seems Sergey wanted a “California king” and Larry didn’t–a dispute that had to be arbitrated by CEO Eric Schmidt (a guy who, if I’m remembering correctly was one of the earliest and most fervent Internet skeptics). Schmidt decreed that Sergey and Larry could choose whatever beds they wanted for their individual rooms and it was time to move on. The designer hired to renovate the plane says there were also some other “strange” requests, i.e., hammocks hung from the ceiling of the plane. A Boeing 767 is three times as heavy as the normal corporate jet and about ten times as expensive to fly. Not surprisingly, the whole boondoggle is now tied up in lawsuits.
Also at my other blog: Practical Widgets
Beyond Widgets: MuseStorm’s Advanced Data Services Vision July 5, 2006
Posted by Jerry Bowles in Ajax, Application Development, Companies, Enterprise Application Integration, Lite Computing, Small Apps, Web 2.0.3 comments
MuseStorm has created a lot of buzz in the past couple of weeks with its much linked tutorial on How to Create an Ajax Homepage and its web site that allows users to customize pre-made widgets, then add them to their site using a few lines of code. I spoke to MuseStorm co-founder Ori Soen by telephone this morning and he gave me an overview of company vision which goes far beyond widgets.
Right now, MuseStorm aggregates content from various Web sources (APIs) and serves data to applications. On the client-side, it provides modules that free the developer from dealing with APIs, Web services, data manipulation and most client-side programming.
MuseStorm widgets allow blogs and web site owners to easily integrate data from search engines, photo sharing services, EBay, Amazon, YouTube and others into their Web pages with no programming required. Web developers can use MuseStorm’s components and service to add dynamic data to their applications with minimal programming, in a variety of development environments.
As more, and more valuable, web-delivered services are developed and deployed in the future, Ori foresees the demand for a middle layer of advanced data management services to function as a “gateway” for customers on both sides of the server-client divide. For proprietary reasons, he is reluctant to name the specific services right now but he did share some of them with me and I think they are solid and have a lot potential. Says he:
It is no secret that the web is emerging as a service delivery platform, not simply a collection of static web pages. Right now, API providers are doing everything themselves. We think that a year from now, maybe a little bit more, these application providers are going to want to add various kinds of business management functionality and metrics to their offerings. That would require a lot of programming and platform- building that is extraneous to their core business. Long term, we see ourselves becoming that middle layer. If you’re an application or data provider, you can plug-in to MuseStorm and we can provide all kinds of valuable services to help you manage and run your business. At the same time, we are making it easy for users and developers to add dynamic functionality to their projects.
My impression is that MuseStorm’s plans to add advanced data services on top of its aggregation and distribution technology looks like an attractive business model.
Cross-posted from my other site Practical Widgets.
The Shark That Didn’t Eat PayPal June 29, 2006
Posted by Jerry Bowles in Companies, Google, Online Banking/Payment Processor, PayPal, Retail, Web 2.0.2 comments
Google officially rolled out Google Checkout, its online transaction service this morning and contrary to much speculation, (including my own, here yesterday) it does not appear to be the shark that ate PayPal afterall. At least, not for now.
Google Checkout will fuction as a centralized authorization service for customer purchases but it will not be a bank-like payment service that will compete directly with PayPal, which is owned by eBay. While it promises a level of transaction security that many online retailers can’t match on their own, details on how Google plans to protect what will surely become a Fort Knox of credit card information are still sketchy.
When customers click through to a merchant from Google AdWords, a little blue shopping cart icon that represents the Google Checkout option will go with them. Clicking on the icon will take the customer to the Google Checkout site, where the customer’s billing information and credit card information will already be on file. All four major credit and payment card services are participating.
In essence, Google is foregoing revenues in transaction fees in order to boost its targeted advertising sales volume by giving online retailers a major incentive to participate. Among those who have already signed up are Buy.com, Ace Hardware and the Starbucks Store.
Is Google’s decision to make GCheckout a marketing incentive rather than a transaction business a good one? In the short term, at least, it looks like a winner. Google builds ad volume without offending eBay, one of its best customers, and gets a feel for the banking business. Like all good sharks know, lunch will still be there if you get hungry later.
Web Payments Smackdown: Google vs. eBay June 28, 2006
Posted by Jerry Bowles in Companies, Google, Web 2.0.3 comments
Google is expected to launch an online electronic payment service called GBuy today that will directly challenge eBay’s PayPal for internet shoppers’ transaction fees and could touch off an internet turf war that will make Tony Soprano’s latest brush with the New York gang look like a kids birthday party.
Unlike so much of the stuff that Google releases in a kind of semi-permanent state of “beta,” there is no doubt how the company plans to turn this one into cash. GBuy will work in conjunction with AdWords, so that consumers who visit a merchant’s site through a sponsored link will have the option of going to a separate, GBuy checkout site. The goal, company executives say, is to “automate the advertiser click cycle,” which means that instead of simply handing you off to a merchant when you click through to an AdWord link, a virtual rep from Google will tag along and offer to charge your purchase if you decide to buy. That will speed up transactions which translates into more money for merchants and, of course, for Google.
According to widely leaked (some might even say, widely hyped) details, Google plans to charge merchants a 2.2 percent commission, as well as a fee of 30 cents per transaction. AdSense advertisers will get a discount.
What turns this into a potential killer app for Google is its apparent link to its newly announced Content Referral Network, an eBay style sales lead generation and transactional commission-based affiliate network that is bound to poach eBay (and Amazon and other online merchants’) customers. Of course, the nice people at eBay must have seen this coming because they just announced the test launch of AdContext, an automated, keyword-based contextual ad system for use by its affiliate network which looks suspiciously like it was designed to claim a chunk of Google’s territory.
Meanwhile, the two companies have to be pretend to be nice to each other. eBay is one of Google’s largest AdWords customers and, as such, Google delivers a lot of traffic to eBay, and gets a lot of money from eBay in return. This is going to fun to watch.
Nokia has quietly launched a new venture called 

