Reflections & analysis about innovation, technology, startups, investing, healthcare, and more .... with a focus on Minnesota, Land of 10,000 Lakes. Blogging continuously since 2005.

Tag: MInnov8

Is #Fcommerce Inherently F***ed? A Recent Media Report Suggests So, But a Minnesota Startup Begs to Differ

F-incart_(c)WeeverMediaI read recently an analyst’s prediction that social commerce — of which Facebook commerce is a subset — would be a $5 billion business by 2015.  Does that sound big to you?  It didn’t to me — not considering that  Forrester says online retail overall will be $279 billion by 2015.

While I was mulling these numbers, I happened to delve into the blog of Sucharita Mulpuru, a VP at Forrester and a well known ebusiness analyst.  I discovered she’s been a longtime bear on F-commerce. Then I saw a sharply worded story pop up yesterday morning, first in a Shop.org newsletter I receive. It was based on a Bloomberg story: “Retailers Shut Facebook Storefronts Amid Apathy.”  What one might call the money quote the reporter ended her story with: ‘

“I give so-called F-commerce an ‘F’ ”

It was a quote attributed to Wade Gerten, CEO of 8thBridge, a Minneapolis-based social-commerce technology firm. Fcommerce-ShopDotOrg

The story ended abruptly with that quote — leaving me hungering for more. But I didn’t have to wait long, because last night a quick-comeback rebuttal to the story suddenly appeared on Forbes.com. It was a guest post from that very same Wade Gerten, entitled “Facebook Shopping Apathy? Smart Plays On F-Commerce.”  His company, 8thBridge, was a much-heralded startup here in 2009 that hitched its wagon to Facebook commerce, and soon after raised $15 million in two rounds of venture capital. Turns out he and his team had a wild day, he told me, pulling together that post to counter the Bloomberg piece.  A key excerpt from the post is the conclusion:

“Tomorrow’s online shopping experience will look very different than the product catalog-specific experience we have today. The rich intent data available via the Open Graph will enable brands to usher in a new era of ecommerce that is shaped by people and around people.

This is the most exciting innovation to hit e-commerce since its birth in the Nineties! Most of the brands working in this space are anything but apathetic.”

8thBridge-logoGerten also talks in the post about his firm’s recent partnership with TicketMaster. It was one month ago today that 8thBridge announced it had launched an app that people could add to their Facebook Timeline to share their plans to attend concerts, their actual attendance at a concert, and share ticket buying with their friends. They noted people could purchase tickets within the app without leaving Facebook.

On its web site, 8thBridge claims that more than 50 leading brands in fashion, retail, and entertainment have launched social commerce initiatives with its technology — some of those other brands being Delta Air Lines, Oscar de la Renta, Electronic Arts, and Avon.  The site doesn’t say how many of these “initiatives” may have been of the “storefront” variety that the Bloomberg story says are being closed — nor, of course, does it name which of its clients had (or still may have) such storefronts. But I think it’s fair to say the Open Graph initiatives are what 8thBridge is now very much concentrating on.

As you might imagine, 8thBridge is not the only company defending F-commerce.  Here’s another link, also on Bloomberg, which appeared prior to the recent dustup (it’s a video interview): “Payvment CEO Sees ‘Huge Business’ on Facebook.”  But note this guy is also hedging his bets — spreading his risk if you will, naming both Twitter and Google+ as other platforms where his firm can make money from its technology.

On top of all this recent uproar about Facebook commerce is the absolute juggernaut that is Pinterest! Pinterest-logoI’ve gone on record on the past two weekly Minnov8 Gang podcasts as saying this site will be a huge disruptor in social commerce.  But that’s the topic of another blog post — actually, countless hundreds that will no doubt be appearing soon everywhere!  (By the way, please follow me here on Pinterest:  www.pinterest.com/graemethickins.)

What future do you see for Facebook commerce?  Or for social commerce in general?  Please comment!

(Facebook logo-cart image copyright Weever Media.)

How to Get Buzz for Your Startup Launch: Write a Book!

Okay, not everyone can pull this off.  But one experienced Minneapolis tech entrepreneur, George Reese, is doing it in a big way with a new book on "cloud computing."  What's cloud computing, you ask?  Did you just come out from under a rock?   If you're involved in any way in IT, even on the fringes of it, you've been blasted for months with an almost endless amount of media coverage and discussion about this topic — a recent example being on the front page of The Wall Street Journal the other day.  Even most casual Internet users are now aware that many of their consumer web apps are accessed "in the cloud," as opposed to being software they install on their own computers. Google's Gmail is probably the best known example of that.

George Reese is cofounder of a new Minneapolis startup, enStratus, GeorgeReese-headshotand is right smack in the middle of all the buzz. 
Thanks to his new book, which he worked on for six months, he's in a great position to help clear the air surrounding a lot of the cloud computing hype that's flying around out there now.  He's especially interested in helping enterprises that are looking to take advantage of the economic benefits of this form of corporate IT. 

GeorgeReese-book-200w
On April 10, George's new book will be released by O'Reilly Media:  "Cloud Application Architectures: Building Applications and Infrastructure in the Cloud."  And here's the Amazon link.  It's now available at both these links for pre-ordering. I've known George since 2006, in relation to his previous startup, Valtira (a SaaS marketing platform), from which enStratus is being spun out.  (I also know David Bagley, the CEO of Valtira, who's the other cofounder of enStratus.)  I thought it would be fun to get George's thoughts about this uber-hot topic of cloud computing, and hear the story behind his book.  This is an interview I conducted with him earlier this week, which first appeared on the cloud computing site Cloud Ave. and, later, on our own Minnesota tech news site, Minnov8.

Graeme:  How long have you been involved with cloud computing, and what made you decide to write this book?

George:  I suppose that depends on what you mean when you say "cloud computing." I've been developing SaaS systems for the past five years, but got into Amazon Web Services and Infrastructure as a Service in late 2007 when my company Valtira needed an alternate approach to a high-availability infrastructure. During this time, I've developed a body of experience in putting transactional database applications into the Amazon Cloud.  My editor at O'Reilly, with whom I've written several books in the past, heard I was doing cloud work and asked me to put together a book on the subject.

Graeme:  Why is cloud computing gaining adoption like it is?  What is its attraction?  We know Internet and IT startups love it, but do you think it will catch on in any significant way with larger enterprises?

George:  The primary attractions to cloud computing are cost and flexibility. Cloud computing enables you to build out a world-class IT infrastructure with no up-front capital investment and pay for the growth of your infrastructure as the business it is supporting grows.

I believe enterprise IT has a strong need for the benefits of cloud computing, but they have higher expectations with respect to reliability and scalability than startups. My company enStratus is all about dealing with these two concerns for enterprise IT, and I talk a lot about that in the book.

Graeme:  For what types of readers did you primarily write the book? What will they get from it that they can't get elsewhere?

George:  The book is for people tasked with making the move into the cloud and guiding them through that move. I start by establishing what the cloud means from my perspective and what its value is to an organization. The book covers how you evaluate what makes sense to move into the cloud and, once the decision is made, the security, availability, and disaster recovery planning necessary to operate at an enterprise level in the cloud.

Graeme:  Do you deal in the book with the issue of choosing a cloud computing provider? In not, why not?  Do you attempt to compare providers?

George:  No. Anything I might say in the way of a comparison would be out of date by the time the book hit the shelves. Jeff Barr from Amazon reviewed the book for technical accuracy, and E.J. Johnson from Rackspace and Randy Bias from GoGrid both provided appendices describing their offerings.

Graeme:  What are some of the other key issues you deal with in the book, such as security and reliability of the cloud?  And what does the book deliver that's not available elsewhere?

George:  Given my role at enStratus, cloud security and reliability are obviously key concerns of mine. I spend an entire chapter on security issues and cover how to architect your applications for maximum availability throughout the book. I have not seen much of this kind of talk available on the Internet; mostly warnings about how security and availability are things you should worry about.

Graeme:  Readers of the book will also learn about the management tools you have developed for use in your own company, Valtira, which offers a SaaS marketing platform. Please tell us how those tools led to the formation of a separate, spinoff company.

George:  Valtira was looking to build out a new service offering that required a high-availability infrastructure. We priced out a managed services infrastructure to support our needs, but that proved too costly for a new product offering. We then turned to the Amazon cloud to see if it would meet our needs. We ran into a number of obstacles along the way. Some of these obstacles have since been addressed by Amazon through new service offerings like Elastic Block Storage. For other obstacles, we built out tools to take care of things. It turns out that people who were not Valtira customers really wanted our tools, so we spun them out into enStratus.

Graeme:  You began working on the book many months ago. The release of the book seems now to be right at a time of intense focus on cloud computing, undoubtedly driven in part by current economic conditions.  What's your take on all the hype?

George:  Cloud computing is the most disruptive technology to hit business since the Web. It's not hype. Like any disruptive technology, however, there's a lot of misinformation flying around. To make matters worse, every person has a different internal definition of "the cloud" that frames their discussions on the subject. So, the hype is warranted, but everyone needs to pay particular attention to context and definitions in their discussions.

Graeme:  With the book's release, your speaking schedule is naturally heating up.  Please tell us where people can find you in coming weeks and months.

George:  Well, first, I'll be presenting at CloudCamp in New York City on April 1. Following that, O'Reilly has a webcast on "Getting Started with Amazon Web Services" scheduled for April 8.  In Minneapolis, I'll be speaking at the Minnesota High Tech Association's spring conference on April 15, and then at CloudCamp Minneapolis/St. Paul on April 18 at the U of MN.  Recently, my company enStratus was chosen as a presenting startup at the Under the Radar conference in Mountain View, CA, on April 24.  The following month, I'll be speaking on the topic of information privacy and security in the cloud at the Glue Conference in Denver on May 12. Then it's off to London, where I'll be speak on May 15 at WebTech Exchange 2009 on the topic of hardening an EC2 infrastructure.

Graeme:  That definitely qualifies as a whirlwind, George! Thanks for taking some time to tell us about your book, and I look forward to seeing you at some of these upcoming events.

By the way, follow George on Twitter @GeorgeReese and his company's tweets @enStratus.

(Disclosure: the author has a consulting relationship with enStratus.)

What I’ve Been Blogging and Tweeting Lately

Just a post to catch you up to what I’ve been doing elsewhere online recently, on venues other than this.  First of all, my volunteer/pastime blogging thing over at Minnov8.com included a post a couple days ago on a bigtime conference held here in the Twin Cities last week called the MIMA Summit. Mimasummitpost_3  It was sponsored by, you guessed it, MIMA (the Minnesota Interactive Marketing Association). Here’s a partial screen clip of that post, and the whole post is here.

Then, just yesterday, I participated again in the weekly Minnov8 Gang Podcast, this one Episode 9 already. (Wow, time flies when you’re having fun.)  You can grab it off the Minnov8 home page via the link at top center there, as you can see on the second screen clip. Minnov8podcastlinks We talked about a number of topics, including recent confabs in the Twin Cities, the economic times, social media (of course), and, hey, even wine.

Finally, I continue to Twitter all the while — that just never stops! 🙂  I’m including here a recent screenshot of my Twitterstream. But please do follow the whole dang shebang hereGraemetwitter1008
One cool thing that happened recently is this: I received a rating for my Twitter account of 91 out of 100 from twitter.grader.com.  Wow, that means my Twitter presence is rated higher than 91% of all the other accounts they’ve graded! Nice to know I’m doing something right..

UPDATE 10/6/08:  Meant to say that social media is a part of everything I do now for my clients, and also that I’m quite active in our local Social Media Breakfast organization. Be sure to keep the morning on Oct 31 open, because we have an exciting, nationally known speaker coming to town. [Actually, he was already here for a private gig, and I convinced him to stay over a night…  🙂 ] Watch the "SMBMSP" site above for the announcement later today.

UPDATE 10/9/08:  I see our local media site MinnPost picked up my story on the MIMA Summit.

A New Blog About Innovation

Several months ago, some of my Minnesota buddies and I started talking about a need for a site that could focus on the cool things happening in technology and the Internet right here in our state. Minnov8logo_2
We ended up deciding that a multi-author blog seemed to be the way to go, since we as a group (six of us) seemed to collectively be plugged in to most of what was happening here  — the founders, the technologists, the  developers, the investors, the new ideas.
We started sharing thoughts of what we could blog about and kinda blew each others’ minds — so many good Minnesota tech stories out there, just waiting to be told. My esteemed blogging buddy Steve Borsch, of Connecting The Dots, really led the charge. Hats off to him, because this idea simply wouldn’t have happened without his energy and passion.

Well, today, Saturday, you can now check out Minnov8.com"Minnesota Technology Innovation News & Insights." After talking about it for months, it’s finally a reality. Well, kind of a soft-launch, anyway. Trouble is, starting in January, we all got really busy, but we decided we had enough content in the can, as it were, that we should go, at least with a few posts to get started. (More is coming as we speak.) My first post was about innovation in angel investing, a topic I’m very close to and have also written about here on Tech~Surf~Blog, as well as on GetGoMN.org.

None of us needs another blog to be committed to. But I hope to be able to contribute ongoing, at least in my spare time, weekends, etc. And I personally intend to recruit guest bloggers from time to time. The community needs a forum like this, we’re convinced, and it was time to let ‘er rip. We all really believe strongly in our community. But there’s lots more to come from our current team of contributors, so keep your eye on Minnov8. And do let us know what you think. Go, Minnesota tech!