Good morning, I.T. entrepreneurs. Today's 9:01 update from After Nines Inc. involves some key lessons about small business cloud computing. Here are five technology news nuggets, rumors, gossip, insights and updates to start your day for Tuesday, Oct. 28, 2014.
Actually, today's entry involves eight nuggets of info. Read on:
8. Cloud Migration: TOGL LLC, a small business cloud provider built atop the OS33 platform, is closing its doors on Oct. 31, After Nines Inc. has confirmed. What will happen to customer data? According to a TOGL statement we received, One World Technology (OWT) "will provide service and support in addition to your continued access to the TOGL Cloud platform." OWT did not, however, acquire TOGL. This is the second time in recent years that I've heard about an OS33 cloud provider either closing or shifting business models. I've heard some great things about the OS33 platform, but I wonder how cost effective it is to try and promote desktop as a service against cloud giants like Google, Microsoft and even Amazon.
7. More Entries Coming: Check this blog entry a few times today. I've got a few nuggets to add after my usual 9:01 a.m. ET deadline.
6. Small Business M&A: The number of small business mergers and acquisitions rose 18 percent in Q3 2014 vs. Q3 2013, according to BizBuySell.com. The Q3 2014 figure (1,987 deals) was the second highest ever -- trailing only Q2 2014 (2,029). Media sale prices for small businesses also rose 5 percent in Q3 2014 vs. Q3 2013. Roughly 35 percent of the deals were in the services sector -- though not necessarily IT services. I'll be back later today with more insights.
5. Summing Up IBM: According to Peter E. Greulich, IBM needs to "invest in people, products and processes -- not paper." He notes that IBM has spent $150 billion "on its own corporate paper" buying back IBM shares in the past decade. Instead, IBM needs to invest that type of money in the business. Let's just say I agree fully.
4. Can We Talk?: I'm set to speak with Zimbra CEO Patrick Brandt later today about the collaboration company's M&A strategy, culture and more. Special thanks to Brendan Cosgrove, director of product management, for opening a few doors. And for those who are wondering, "What will After Nines Inc. do with the interview?" The answer will surface Nov. 4 or sometime thereafter...
3. YouTube Subscription Fee?: CEO Susan Wojcicki is mulling a paid subscription model for Youtube. If you're an IT entrepreneur providing content over YouTube, be sure to keep a close eye on Wojcicki's strategy. At the Code Mobile Conference, she hinted that that a paid subscription model that eliminates ads could be coming... In other words: If you hate video ads enough, are you willing to pay to suppress them? Are your customers?
2. Russia Holes the Smoking Gun: FireEye, the IT security company, has released a detailed that takes a close look at Russia's alleged cyber espionage operations. The report examines Moscow's alleged cyber attack on the U.S. Department of Defense network in 2008. At a time when so many IT companies release fluffy research and puffy statistics, FireEye has signaled that IT companies can be the cyber investigators and reporters that we so desperately need right now.
1. Hot and Not: In Twitter's most recent quarter, revenue more than doubled and the company turned its first profit. Time to celebrate? Not quite. Wall Street was expecting even better results and shares fell about 13 percent in after hours trading. The lesson: How you perform doesn't matter. How you perform vs. expectations is the real measure of success -- at least on Wall Street.
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