The allure of Azure

It’s here! Microsoft have announced their own cloud to compete head on with the market already established by Amazon, Google and Salesforce.com. It’s called Azure and it’s currently in a beta preview phase. Determined to get their product right, Ray Ozzie has said that they’ll be taking baby steps with the unveiling – for instance there’s no real details yet of pricing.

We must assume that it’s competitively priced at the very least, but I have reason to believe Microsoft will look beyond a competitor orientated strategy and penetrate the market through innovating out the platform in a series of focus strategies. Based on what I saw and heard at Future of Web Apps, I believe that this cloud will be the technology at the core of a much grander picture yet to be painted by Microsoft.

Microsoft’s approach to startups and emerging business is to assist and nurture those building themselves through the supply of technology, licences, advice and introductions. They’re less inclined to acquire a startup and instead build out the business, almost in partnership, so that the future brings more customers their way.

There’s more to this platform than Microsoft have unveiled. I’ve tried out Live Mesh which is an impressive syncing online desktop, and I hope that Azure will mean developers can add to this experience. Next week we can expect another announcement that will be directly targeted at startups and hopefully make clearer where Microsoft are going next with B2B online services. From there I hope we’ll be able to see how this might all start to change the end user experience in time to align with Windows 7 and other offerings.

FOWA London 2008

Last Friday I was extremely fortunate to attend the Future of Web Apps conference in London, hosted by Carsonified. Very many thanks to Ryan Carson and his superb team for putting on the event, but also to all those that attended and made the experience so memorable.

I was there to listen to and learn from the best in the industry. I’m trying to prepare a research proposal for my postgraduate dissertation (MSc International Business Management), so this was the prime opportunity to build a small rolodex of willing contacts who would be prepared to respond to some questions in a couple of months time. In short, I went to work, but I had a surprising amount of fun and gained much more than I expected.

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Here is an overview of the university sessions:

Inuda talk from Jon Markwell (Founder)

They’re a 5 man team of Ruby on Rails programmers. In a long weekend off, they hacked together HowSociable – a tool to rate a brand name’s presence on social networks and the blogosphere by giving the Coca Cola brand’s online presence the score of 1000 and then using this as a benchmark.

It was a story of how important word of mouth is to get a product out. This wasn’t marketed in any way, and wasn’t even announced except in a note on a wiki. The tool is useful and stood the test of time. Users have started to email feedback and feature requests, offering to pay for the service.

Ways they plan to monetise – premium account with black box so popularity can be recorded over time, page ads perhaps.

Myspace talk from Chris Thorpe (Developer Platform Evangelist)

Sustainable communities and how they are looking to change apps on the API so that they’re profitable over a longer period of time. Myspace are looking to get rid of apps that have a 2 minute shelf life and that never get used after their first use and viral marketing. To do this, they’re launching an app development competition – £10k up for grabs to put their app to work.

This talk was important from a strategic HRM perspective – they’re making workers and outside coders hungry to write apps for them with rivalry and competition.

Marketing was also a big issue because the current system of small, cheap and nasty virally marketed apps has been recognised as not sustainable, not profitable, and actually pushing away end users from the service. The marketing isn’t appealing enough, and users have developed immunities to these style apps.

The competition, then, looks to address and manage these two business problems – spurring coders into fresh ideas on marketable apps.

Microsoft talk from Bindi Karia (VC/Emerging Business Lead)

“Start-up and stay up with Microsoft”

Microsoft take a different approach to Google and prefer to partner with startups than acquire them. Team provides contacts, technologies, licenses, business consultancy and advice, and sometimes cash.

Partnering offers more opportunities for business later on, adding more b2b as well as end users of a product. Partnering also ensures that products are made under Microsoft supervision yet with the fresh eyes staying outside of the company’s influence: allows workers to do what they are best at, innovation goes further.

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There was a lot to take in from the stalls being run by various SaaS and PaaS providers, startups and others. I had a great time in both the Sun and Microsoft lounges, especially the demo of the Microsoft Surface, which you can see a video or two of on my Qik account. I took the following notes from the stalls around the expo floor:

BookingBug.com is a startup looking to sell their service to small businesses such as plumbers, electricians and so forth. They aim to be a classifieds but with an inbuilt calendar system so that when the business logs in, they can see customer requests for service, and choose to accept that booking. Helps small businesses to manage their time, and customers to see when the business is available for service. Good idea, but how likely are they to get businesses signed up?

Swirrl.com is a wiki service being bootstrapped. They’ve been live for a couple of weeks. 2 man team, very friendly. I was unable to see the difference between this and other wiki services like WetPaint, but I know nothing about programming and real technical workings, so perhaps there’s more to this than meets the eye. Very straight forward freemium business model with 3 levels of paying packages. I can see small and medium enterprises using this as a work and collaboration solution, but due to the quantity of similar wiki services mass or larger scale adoption not happening. I’m sure they’ve thought through the technical side of scaling it, but where’s the unique selling feature that would make everyone jump and grab at it? I definitely do want to give this a try though.

Adknowledge is an ad solutions company, looking to take on Google and Yahoo! with their pay per click system for advertisers. As well as trying to appeal to advertisers, they offer ad solutions up to publishers. They have funding from Technology Crossover Ventures, and can’t really go wrong with their ad business, it just seems that there’s a lot of competition in this arena already. I’d like to talk to them a lot more about monetising through ads and how the model can grow.

AbilityNet provide services for disabled people to enhance their interaction with technology. They’re a not-for-profit charity, backed by Microsoft and others.

Salesforce.com were demonstrating force.com platform as a service which is an incredibly powerful system. Looking around their stall, they demonstrated their services for other businesses, providing sales, crm, marketing, channel management, analytics, customisation, integration, and an app exchange market place. The marketplace was what impressed me the most, a place to trade in apps, it looked so simple and functional. The guys were extremely helpful with answering my questions and I’ll definitely be getting in touch with them at a later stage.

Anish Kapoor (CEO and Founder) from yuuguu demonstrated his cross platform remote assistance technology. Has an installed client for the desktop that launches the request, and then a web portal viewing for the support. Features integration with Google Talk, so the request can take place through your buddy list. This can be sold to consumers and businesses, although I came away confused as to who was the main focus. With services out there like LogMeIn and remote assistance built into Windows Live Messenger, will this take off?

Cmypitch.com is a way for startups to record themselves pitching their company, be rated and advised by other startups on their pitch, and then viewed by potential investors. I take this to be a way of removing the nerve racking experience of pitching that would take place in an office, and maybe saving some time and money for both sides. It’s more than that though: they are another social network, but with a business and video podcasting spin. I assume that businesses will have to pay to be listed in the directory, else there seems to be no way for the site to make money. Nice idea, and I hope it gets adopted by companies to make them more transparent to the community.

Veedow.com is all about “shopping without searching”. I was told to think of StumbleUpon clashed with Amazon. My answer to which is why not partner with StumbleUpon? I assume this will monetise by transaction percentage, and probably ads too.

Skimbit lets you research and compile your research into one page and then share this page with others, a little like delicious bookmarking, but aimed more at collaboration. It’s a nice idea, but I felt it filled a very small niche in the market, and that there are a bunch of other ways I could put together a similar result. I do think that there’s a ton of directions this product offering could be taken. At the moment it reminds me of instapaper, which I used for about 5 minutes and then realised that I saved a lot of time just leaving articles sat in my Google Reader and it was one less page to visit. Skim-in-a-box is great because it lets you put their service into full swing through your own site, a white label service. This and ads on their main site would seem to be monetising sorted.

Empressr is a competitor to SlideRocket. I didn’t get to chat to anyone from their team, so I was just left to guess about it from posters and leaflets.

GoodBarry is a webhost that make running your ebusiness a lot simpler. They have made the complete package of services and tools so that a business can be run through a backend web portal. The demo was impressive, and I’m sure they will attract a lot of customers who are looking to set up an online business but lack time and tech knowledge to do so. The interface was exceptionally clean and very quick to learn your way around. I really liked the live feed of usage, that’s a neat feature. As standard it lets you keep on top of every element to your business and produces stats on everything from page hits to revenue.

Fav.or.it is a blog aggregator, that to me seemed like cheating: it’s like turning your rss feed reader into a blog. You can import content through certain tags, feeds etc and add commentary, or just leave it to gather and publish all that info. What I like is that commenting through the interface actually posts the comment back to the original site that the article came from. Revenue comes from ads by Google, and they’re proudly powered by Sun who had brought a surf machine and internet cafe to the expo for everyone to enjoy.

These are the stalls I got to see, the people I got to speak to, and the interesting leaflets I picked up. Time flew, and as everyone began to pack up, the focus turned to the live taping of Diggnation. Congratulations to Alex and Heather on getting engaged! I had such fun watching this, meeting new people and drinking Google Beers. Marketing genius – provide free beer and people will love your brand. A couple of rounds at Fox bar run by Digg and Facebook finished a thoroughly enjoyable and productive day. Many thanks again to all those that made it happen!