Web Democratizes Auto Repairs
It is amazing to see how the internet has changed industry after industry. The latest to feel pressured by the power of a mouse, broadband connection and monitor is your local mechanic who now needs to worry that his/her prices are outrageous compared to other mechanics. As this article states, auto repair is one of those areas where the consumer is really at an informational disadvantage.The new site focusing on democratizing auto repairs is called RepairPal and it is in beta at the moment and in some ways may even be a guide for mechanics who aren't charging enough for their repairs.
If the site helps you, be sure and comment or drop me a line as I am very interested in seeing how the web is changing business after business.
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Yahoo/Microsoft Deal Off
The latest talks between the companies centered around Yahoo selling its search technology to Microsoft. As was expected by some, Yahoo did not want to part with technology it considers essential to its future.
What is perhaps most interesting about the talks breaking down is that it shows Microsoft places little value on display ads and page views as compared to search technology. This means Microsoft likely thinks search ads are really more valuable than display eyeballs.
It will be very interesting to see if the frenzy over search ads is not just a part of the natural change that comes into the advertising market from time to time. Apparently Microsoft thinks search is a real game changer and perhaps always will be.
It is worth pointing out that history shows virtually everything is more cyclical than you first think.
Here is an excerpt from a press release the company recently issued:
SUNNYVALE, Calif., Jun 12, 2008 (BUSINESS WIRE) -- Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, today announced that discussions with Microsoft regarding a potential transaction -- whether for an acquisition of all of Yahoo! or a partial acquisition -- have concluded. The conclusion of discussions follows numerous meetings and conversations with Microsoft regarding a number of transaction alternatives, including a meeting between Yahoo! and Microsoft on June 8th in which Chairman Roy Bostock and other independent Board members from Yahoo! participated. At that meeting, Microsoft representatives stated unequivocally that Microsoft is not interested in pursuing an acquisition of all of Yahoo!, even at the price range it had previously suggested.
With respect to an acquisition of Yahoo!'s search business alone that Microsoft had proposed, Yahoo!'s Board of Directors has determined, after careful evaluation, that such a transaction would not be consistent with the company's view of the converging search and display marketplaces, would leave the company without an independent search business that it views as critical to its strategic future and would not be in the best interests of Yahoo! stockholders.
Yahoo! remains focused on maximizing value for stockholders by continuing to execute on its strategy of being the "starting point" for the most consumers on the Internet and a "must buy" for advertisers. The online advertising industry is projected to grow from $40 billion in 2007 to approximately $75 billion in 2010 and the company believes it has the right assets, strategic plan, Board of Directors and management team to capitalize on this growth opportunity.
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Packet8 Virtual Trunking
Virtual Trunking performs just like SIP trunking - assuming you have an IP PBX which supports SIP. For those of you who do not, you can still take advantage of many of the benefits VoIP has to offer as 8x8 will provide equipment courtesy of Carrier Access to connect your older PBX to their IP communications network.
It is important not to confuse this service with a double-play offering which may bundle DSL or cable but instead you can consider it to be nomadic - so you can easily move the equipment to any Ethernet line meeting the quality criteria.
The service is available throughout the US except Alaska and Hawaii where the company currently does not have telephone numbers. Competition to the service comes from ILECs, Cbeyond, M5 and a number of others.
More than one 8x8 investor has asked me about whether this is a good move for 8x8 and I think it is because it allows the company to extend its customer base to larger companies meaning more opportunity to monetize its existing network. Finally, Virtual Trunking allows the company to tie in multiple services such as MobileTalk and video phones.
In addition, the company can sell Virtual Trunking to supply telephone service to a company headquarters while the branches can be supplied with the Virtual Office service.
According to 8x8 vice president of marketing and sales Huw Rees, the service can be up and running in hours with LNP taking up to seven days.
This news is great for 8x8 and I consider it to be a win/win for customers and investors. There are no revenue estimates being publicly stated for the trunking service but there is no reason why every company in the US shouldn't take advantage of SIP trunking in the next 5-10 years. The demand is there and will only grow worldwide.
The question now is how will the company go to market with this new service? How will they differentiate and will the great branding job 8x8 has done so far translate into a faster sales cycles among larger customers? I would say there is a high level of certainty that this new direction for the company will turn into a nice new revenue stream and from here I believe it is just a matter of execution.
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