A cloudy future?

This morning’s Observer column

Google Trends reveals that ‘cloud computing’ first starts to figure in queries in 2007. Interest grew slowly until April this year, when Salesforce.com announced a deal with Google. There’s another peak in July, when Yahoo, Intel and HP announced they were collaborating with several universities to set up cloud computing labs. This week’s news from Amazon will doubtless produce an even bigger spike in Google searches by people wondering what’s going on.

If you believe the enthusiasts, it’s nothing less than our old friend, the paradigm shift…

The blog as literary genre

This morning’s Observer column

Initially, blogging had a bad press, at least in the press. Editors derided it as vanity publishing by egomaniacs. Who did these oiks think they were, imagining people would be interested in their views? Working journalists – incredulous that people would write for no financial reward – ridiculed blogging as self-indulgent insanity.

It turned out that this was an epic misjudgment, but it took a few high-profile casualties to bring home the message. In 2002 the Republican majority leader in the US Senate, Trent Lott, was brought down by a story that was ignored by the mainstream media but kept alive within the blogosphere. Then in 2005 the career of Dan Rather, the celebrated American TV network anchorman, was unceremoniously terminated when he (and his colleagues) casually dismissed bloggers’ criticism of the evidence used in a 60 Minutes documentary about George W Bush’s national service…

Good Times R.I.P.

This morning’s Observer column

It’s not just in Iceland that it has dawned on people that there is a connection between the hallucinatory world of securitised assets and the real world of savings and deposits. Silicon Valley has also woken up to the realisation that – shock, horror – it might affect technology companies too.

Just to underline the point, last Tuesday Sequoia Capital, the second-smartest venture capital firm in the Valley (after Kleiner Perkins Caufield & Byers), invited entrepreneurs and chief executive officers from its stable of start-up and established companies to a meeting. According to one report from an insider, invitees were greeted on arrival by a tasteful image of a gravestone engraved with the message: ‘RIP: Good Times.’

The aphrodisiac effect of power

This morning’s Observer column

Once upon a time, the ultimate put-down to a bright spark was to say, ‘well, if you’re so smart, how come you’re not so rich?’. Wall Street Crash 2.0 has rather undermined this ploy, by making it clear that an awful lot of very rich folks were anything but smart. It turns out that we were unduly dazzled by the Masters of the Universe, but we had to wait until they had vaporised the US economy before getting wise to the fact.

Actually, this was just a special case of a more general human weakness – our tendency to lose all capacity for critical thought when confronted by great wealth or power. This ‘aphrodisiac effect’ seems to be ubiquitous. One saw it, for example, in the way leggy females used to throw themselves at Henry Kissinger, a stumpy troglodyte who just happened to be US Secretary of State. And we see it in the way even hardened hacks go weak when offered an audience with Bill Gates, Warren Buffett or even, God help us, Steve Ballmer, chief of Microsoft…

Androids and walled gardens

This morning’s Observer column

‘We are all,’ said Keynes, ‘the slaves of some defunct philosopher.’ The question that will increasingly preoccupy mobile-phone executives from now on is which deceased sage is more appropriate for their product. Up to now, the relevant thinker has been Lenin – who, you may remember, was a control freak. Given that most mobile operators had their origins in traditional telephone companies – which liked to think they ‘owned’ their customers – this is hardly surprising. These outfits have control freakery in their corporate DNA.

Last week, the first mobile phone based on Google’s Android operating system was released by T-Mobile in the US. (The network is bringing it to the UK in November.) The philosophy underpinning the device is radically different from anything we have seen thus far in the mobile-phone market. The world is about to become a more interesting place. And what happens next could have far-reaching implications…

CORRECTION: An observant reader, Duncan Thomas, has just spotted an error in the piece as published. The piece says that “the most important difference [between the Google phone and the iPhone] is that the Android software ecosystem will not be an uncontrolled, open space”. That ‘not’ ought to have been deleted. Drat and double drat.

LATER: Webmonkey’s five reasons why Android might do the business

1. It promises to run on most modern smart phones – More cell networks will support Android than iPhone does — the iPhone is bound to just AT&T. Mobile providers NTT DoCoMo, Sprint Nextel, T-Mobile and more have committed to the project. Also, more handsets will operate on it. You might even get more life out of your old phone if it supports it. Handset manufactures HTC, LG, Motorola and Samsung have already signed on.
2. It’s open-source software – Any programmer can whip up some code to match popular features from any other phone. Under the Apache license, any programmer can take the code and port their own version of the OS.
3. It has support for Google products out of the box – The latest Android demonstration displayed the phone’s compass prominently in Google Maps. You can bet Google will have the latest and greatest features of their software running on Android before it hits other operators.
4. Third-party developers have more access – iPhone prohibits people from using its internet capabilities for things like VoIP or an alternative browser. Android’s API allows you to create an application for anything, even the dialing software. The evidence is in the 50 applications already developed for the Android Developer Challenge last May.
5. Android allows for ‘unlocked’ phones – Most handsets in America, including the iPhone, are locked by software to a cell phone provider’s network. While there are various ways to jailbreak, it’s not easy and might break your terms of service. The availability of downloading and installing your own unlocked OS might just change the game in respect to shopping for mobile phone providers and signing contracts. If this method gets more popular, it is conceivable phone networks may drop the contracts in lieu of (better) European pre-pay pricing.

Toxic assets and silver linings

This morning’s Observer column

Every cloud has a silver lining. Ask the cybersquatters. Even as the short-selling vultures began circling Lehman Brothers, HBOS, Merrill Lynch and co, a legion of entrepreneurs began betting on domain names for hastily merged financial institutions. For example, when Barclays and Bank of America began to emerge as buyers for Lehman, names such as barclayslehman.com and bofalehman.com were promptly registered by enterprising hopefuls.

Some of these domains were being offered for sale on eBay last week. For example, www.bankofamericamerrilllynch.com was available at a starting bid of $1,500…

Genius? What genius?

This morning’s Observer column

In triumph of the Nerds, Robert Cringely’s 1996 TV documentary series about the rise of the personal computer industry, Steve Jobs was asked what made Apple such an unusual company. ‘It comes down,’ he said, ‘to trying to expose yourself to the best things that humans have done and then try to bring those things into what you’re doing. Picasso had a saying, “good artists copy, great artists steal”, and we have always been shameless about stealing great ideas.’

Before we get too sanctimonious about this, it’s worth remembering that Jobs’s adoption of Picasso’s mantra is what has made Apple such an innovative force in the computer business. Its unique selling proposition is that it takes good ideas and turns them into products that ordinary human beings can use…

Ten years on

This morning’s Observer column

In the old days, dates fell into one of two categories: BC and AD. Now the relevant categories are BG. and AG: Before and After Google. The critical date was 1998, when Larry Page and Sergey Brin launched their PageRank system for rating web pages. It was an epochal moment. No British child knows there was once a world without Google. In fact most would be astonished that people were able to get along without it.

Google is 10 years old today and it has celebrated by upsetting the world’s applecart – again…

Back from the dead

This morning’s Observer column

Premature obituaries have their uses. It is said that when Alfred Nobel, the Swedish arms dealer, read an obituary which described him as a ‘merchant of death’ he was moved to endow the Nobel Prizes as a way of laundering his image. They also provide opportunities for setting up jokes, as when Mark Twain observed that ‘the report of my death was an exaggeration’, or when the Daily Telegraph published an obit of folk singer Dave Swarbrick after he’d been admitted to a Midlands hospital with a chest infection. ‘It’s not the first time,’ Swarbrick observed, ‘that I’ve died in Coventry.’

What are we to make, then, of the obituary of Steve Jobs, Apple’s mercurial CEO, which was inadvertently released by Bloomberg News last week?

The lessons of history

This morning’s Observer column

Forty years ago this week, a British scientist named Donald Davies unveiled one of the great technological ideas of the 20th century. He called it ‘packet-switching’, which must have sounded odd at the time because it was a way of enabling computers to communicate with one another. But it turned out to be the basis for all modern digital communications and it’s the technological foundation on which the internet is built…