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Bill Gurley writes correctly that Google is positioned to take over the world. I am certainly paraphrasing and adding some personal bias - he describes in detail how the company invested great sums of money to assemble a superior turn-by-turn GPS database which includes a street view and in so doing is now able to take marketshare from competing mapping vendors by using advertising to subsidize the cost of acquiring this information.

Advertising revenue in fact will drive the company's operating system, software as a service and just about everything else.

As the company shares part of this revenue with partners you have seen wide adoption of Android by wireless carriers and no doubt hardware vendors installing the Google Chrome OS are next.

Expect the company to continue going after Microsoft products - by giving services away and supporting them through ads.

Any competitor which has an inferior ad network and generates less money from advertising (this is all of them) is pretty much domed.

The only way to stop the onslaught is to build a far superior search engine and hope the world switches. At this point the sheer marketshare Google commands in search allows them to utilize their massive database of user behavior as a massive focus group allowing them to improve by the second.

I just can't see anything stopping this company besides, a scandal, high level departure, illness or something similar. Even then, the company is a monopoly at this point and perhaps momentum will ensure their future success.

Is the company using its power in a way which warrants them being broken up by the DOJ? Possibly, but Google reminds me a heck of a lot of Wal-Mart as the larger it gets, the better consumers do. Giving away free GPS for example is a pro-consumer behavior and as long as the company keeps breaking into new markets and giving things away, it is tough to see how the Google could be considered to be harming customers.

Getting back to the headline of this article -- do I really think Microsoft is doomed? Yes. Immediately? Obviously not. But any time a company with a quality name in the market can make money while giving away good products which you charge for, you are done.

Just a kid, that's all I was in the early eighties in high school as I took a class in BASIC. I was always fascinated by all things electronic and whether it was video games or advanced scientific calculators, I couldn't get enough. At Westhill high School, they had a Prime minicomputer and it was on this machine where I was instructed how to program. I also had a Commodore 64 at home and with it I wrote my own video games at night and on weekends.

In the early eighties, Route. 128 in Boston was the stuff of legend... It is where all the minicomputer companies lived - Wang, Prime Computer, DEC and many others. Prime was my link to this area and it seems like it was yesterday when I wrote a math quiz program on the schools's minicomputer which I used to better prepare me for the math portion of the SAT. Today, Rt. 128 is a distant second to Silicon Valley in terms of technology and of course all the minicomputer companies missed the PC altogether and are gone.

If you are wondering why Silicon Valley took the lead over Boston, you may want to refer to this article from Vivek Wadhwa which discusses how the Valley follows a more open model where innovation is more readily shared with small companies and moreover spread through job hopping. In addition, he points out a book from AnnaLee Saxenian (which was published in 1994 predicting that Boston would be the loser in the tech race

Here is an excerpt from the article:

She noted that Silicon Valley had an amazing dynamism about it. There were extensive professional networks, job hopping was the norm, information was exchanged openly, and the culture encouraged risk taking. The Silicon Valley ecosystem supported entrepreneurial experimentation and collective learning. In other words, Silicon Valley was a very open network--a giant social networking site working in analog before the concept of such a thing even existed.

This organizational mechanism was in sharp contrast to that of Route 128. Dominated by large, vertically integrated, and secretive minicomputer producers such as DEC, Wang, Prime, and Data General. Technology, skill, and know-how were trapped within the boundaries of the large corporations.

The differences were evident at many levels: venture capitalists in Silicon Valley had deep roots in local networks and were far more nimble than their east coast counterparts; educational institutions and research labs in the West partnered with local startups as well as more established firms, while those in the East worked only with the largest corporations; and the meritocratic openness of Silicon Valley made it a magnet for non-traditional talent and immigrants.

By the mid-1990s the east had missed the shift from minicomputers to personal computers as the flexible Silicon Valley ecosystem sped ahead with innovation across a diversifying range of components and systems going from chips, routers, and application software to ecommerce and search engines. Today Silicon Valley is the leading location for cleantech venture activity, an area widely considered to be the next big value creation engine for the U.S. and the world.

Boston, however, is no slouch. The Route 128 community remains the second biggest in the U.S. in terms of venture funds committed. Boston has powerful research institutions, still, and lots of very strong companies. In some areas, such as biotech, Boston may even rival Silicon Valley. But overall, its pretty clear that the Valley has not only won but is racing further ahead.

Most entrepreneurs and engineers that come to Silicon Valley, come to experience this network and to embrace the culture it has created. That's why I came, too. Network effects don't just work for fax machines. But then again, most of them knew that intrinsically. University guys like me need to do a bunch of surveys to figure it out. They voted with their hearts and feet.

At this point the game is even tougher to win if you aren't in Silicon Valley due to the propensity for exit strategies to present themselves more readily where the acquirers are. Yahoo, Google, Cisco and Oracle are just a few of the companies responsible for billions of dollars worth of M&A dollars. And as this these companies have grown, they  have made so many millionaires that they in turn go out and launch new companies and/or invest in others which are nearby.

If you are looking for a lesson here it is that a company which mirrors Silicon Valley and is more open, flexible and shares information more readily will likely always beat the company which is inflexible and contains many silos.

I spent some time analyzing a Blackberry Storm 2 in a Verizon store in Norwalk, CT where I chatted with prospective customers as well as Verizon store employees and management. First the phone itself is improved with WiFi support, a capacitive touchscreen and worldphone support. I think typing on the device is about as good as it is on the iPhone at this point. Although a common feature of smartphones I really like the ability to go back to my last application. As you would expect the device is fine for applications like email where it does a good job of understanding what is typed and autocorrecting text, it still comes up short as a web browser.

Although faster than the previous device, the delay in browsing graphically rich sites and those with JavaScript continue to be its undoing (yes, JavaScript rendering is now faster -- thankfully) and it is evident that the mobile browser is the major Achilles heel for device manufacturers. They should all partner with companies like Opera until they figure out how to do mobile browsing correctly.

Prospective customers I spoke with were not extremely impressed by the device and most I spoke with were in the store to compare the phone with - you guessed it, the iPhone.

By the way, reasons given to me to not buy the iPhone include the AT&T network and the fact that applications like Loopt (the iPhone needs to allow background apps for it to function properly) and Blackberry Messenger don't work on it.

Store employees were eager to volunteer that Droid is coming out in a few weeks and is worth a look. They also mentioned that there was interest in the latest RIM phones and many are selling but unlike the rollout of the first version of this device, they aren't seeing the long lines. Then again, it was a cold and rainy day which could have been part of the problem as nearby Stew Leonard's, that world famous supermarket had half the normal amount of cars in its parking lot.

My take? People have already purchased their iPhones and other smartphones and if they weren't out in force today to see their Storm 2, they aren't coming out in force to see the Droid. Besides I haven't seen much if any consumer promotion for this gadget - could this be a sign of Verizon giving up and hoping for better results from the new Google Powered Motorola phone? If the Droid is the iPhone killer Verizon store representatives say it is, the death will be very slow as word of mouth and advertising get more people to trade up. Time will tell.

As Om Malik points out, turn-by-turn GPS navigation with voice guidance has come to Google Maps and carriers can't be happy about it. Who is even less happy? TomTom and Garmin. According to Google, less than 1% of navigation devices are connected to the cloud and ironically my TomTom Go 740 Live with Google local integration is one of these devices and it is limited - it really only allows you to query Google for local establishments and it does receive real-time traffic data.

As the video above explains, Google Maps navigation was built from the ground up to be internet connected meaning you can get the latest maps and business data automatically over the net without having to download new maps manually. Google touts lots of features which they say most GPS units don't have such as voice recognition, the ability fix spelling errors and of course infinite points of interest. Other benefits touted include the ability to navigate via search meaning you can ask your device to navigate to a museum with a specific exhibit.

Other benefits include real-time traffic data and the ability to choose alternate routes. The software also allows you to search for POIs on your route and you can also leverage satellite and street view as you navigate. By the way, I bet you didn't know some Google Street View data comes from a tricycle (pictured and courtesy of AP/MSNBC)

The video above also references the new Droid phone which has an available car dock which when connected goes into car mode which makes it easier to access features you need while driving.

Om is right that carriers are likely not happy about this new and free service from Google but I wonder if at the moment carriers aren't just more frenzied about not having the iPhone which includes tens of thousands of applications in its device ecosystem.

From Verizon's point of view, this new relationship with Google is a defensive land grab and will slow down the onslaught of the iPhone by making their devices more attractive and simultaneously cutting the legs off of Garmin and TomTom. It should be noted that TomTom does have a $99 iPhone GPS app which is pretty slick but can they keep this price point when the competition has a lot more features and is free?

Google's challenge remains, do they ignore the iPhone when they come out with leading edge applications like this one so they can artificially boost their Android OS sales or do they try to get all apps they produce to work on as many devices as possible so they can boost ad revenue? It has to be a constant debate for the search leader and for now, if you have an Android 2.0 device you can get a real nifty GPS app for free. What's not to like about that?

Oh, and one other point. If we have known mobile search is coming and will be he and Microsoft and Yahoo! are trying to take on Google in this space and finally have an opportunity to become a leader in at least one niche of search, why haven't either of these companies jumped on this opportunity? Why is it that Google is the only company to take advantage of an opportunity we all saw coming. I realize Yahoo is trying and so is Microsoft but Google seems to be in a position to have even greater marketshare in mobile search than they do in PC search. And it seems unacceptable that the competition just let them take it so easily.

I really excited to speak at the Illinois Institute of Technology Rice Campus for the VoIP Conference and Expo 2009. This will be my first time to this event and interestingly the third time in recent weeks in which I am in Chicago instead of Vegas for a show. Maybe the city didn't get the Olympics but they certainly seem to have gotten all the shows - WiMAX World, Supercomm and now this event.

Getting back to my talk - I am moderating a Keynote Panel titled: Are the "Bells" ringing for Carrier VoIP? And my panelists include Carl Ford, Crossfire Media; Anne Lee, ALU; Gaston Ormazabal, Verizon and Henning Schulzrinne, Columbia University at 4:00 pm this Thursday 10/29/2009. I hope to see you there. Here is the schedule with my panel in yellow at the bottom.

Here is the website for details.

I wanted to alert my readers to some exciting news happening at TMC. As you likely know TMC is among a handful of media companies growing at a time when the media landscape is in dramatic decline. As you might imagine this growth is primarily online. Over the last decade and especially in the last few years we have focused on building online communities (Channels and GOCs) for customers who sponsor these areas as they rapidly attract focused decision-makers from around the world.

The visitors who come to these communities benefit from a massive amount of free content which helps them make informed purchasing decisions. For example people looking for products in Call Recording, Smart Data Centers, IP communications, HD Voice, Fixed Mobile Convergence or Next Generation Communications can come to the respective communities focused on these topics and have access to hundreds and in most cases thousands of TMC written articles detailing the news in their specific area of interest. Our business model is straightforward; aggregate massive amounts of focused and quality content using custom-built content targeting technology - make it relevant and pertinent so as to attract the right readers who need this information as they research the products and services they are looking to buy.

For our sponsors, these communities allow them to rank high organically on search engines to get their message out to a focused audience while simultaneously being able to measure the traffic to ensure they can justify their spend to the sales and executive management teams.

Basically, this suite of communities replicates the trade show model online and just like a trade show that attracts more attendees as the exhibitor base grows; the 120 monthly sponsored communities on TMCnet attract a massive audience which in turn attracts more sponsors.

In short, I am very confident we can continue to provide free quality content in all the areas we enter. Meaning while other media companies are beginning to charge for their once free content and many others are reducing their editorial teams, TMC is adding to its editorial, sales and marketing teams as we have a model which works exceptionally well for our readers and sponsors.

We are growing our team as we enter a slew of new markets with our business model of providing laser-focused content - backed by over a decade of proprietary content targeting technology; essentially building targeted online communities which rank high on search engines as they attract large amounts of focused traffic.

Here is my quote from a press release we put out today mentioning the hire of a brand new position - VP of Business Development. Matt Weiner is filling this position and his background of working for Penton and Yahoo! make him a good fit for the position."Over the last decade, TMC has invested in the technology and people necessary to build a next-generation media company which creates communities online, in-print and in-person," Tehrani continued. "By providing our audience with top quality news, training and information, we have attracted global purchasing decision-makers to our communities. As TMC's global communities have increased in size and quality, they have attracted hundreds of advertisers and sponsors who receive regular measurable results for their marketing and SEO budgets. Our future strategy involves continuing to build communities which draw large amounts of targeted traffic as we continue to connect buyers and sellers -- and adding Matt to the team is an integral element of that strategy."

Aside from Matt, we have added a number of other positions and just as importantly we continue to ink partnership after new partnership as we enter new spaces where we leverage our community building engine in combination with the thought leadership of individuals and/or corporations in new markets.

Thank you for continuing to support our rapid growth - thanks to our readers and existing and news sponsors - we look forward to helping all of your companies grow with ours.

The next time you are in a restaurant listening to some captivating tune and see other people in the restaurant signaling for others to be quiet as they hold their phone up to the ceiling, you may be witnessing someone using Shazam (dare I say Shazaming?) to try to discover the song which is playing. I have used the service quite often and I think it is amazing. It doesn't always work but when it does I am thrilled as without it, I am not sure how I would figure out what I was listening to.
 

The company just announced it got funding and moreover they have 50 million users worldwide with 15 million added since February of this year. Kleiner Perkins Caufield & Byers (KPCB) gave the company an undisclosed sum from its iFund which contains a cool $100 million which is being doled out to an iPhone developer near you.

Currently you can use the service for an unlimited amount of song discovery but going forward you will get five free songs per month and have to pay $4.99 for unlimited usage and other features. The company also plans to sell tickets to concerts and other media like video.

The ability to decipher the entertainment a person is enjoying could be a big step towards personalizing content delivery based on personal taste. In other words, if Shazam was to run on a mobile phone all day while it deciphers what you listen to on the radio and watch on TV, it could collect all the pertinent information needed to construct a personalized playlist of television programs and songs you may like.

Of course, this functionality may not be on the company's roadmap but if you start to integrate technology from Pandora and Slacker you could come up with some really interesting applications which could increase the relevancy of programming and advertising.

Of course KPCB is a top firm having funded very successful companies such as Google and Amazon. They must know Shazam has significant potential. It will be great to see how they navigate the mobile landscape to turn song discovery into profit.

A fascinating bit of reporting from the Wall Street Journal confirms some things that many in the communications industry already knew and some things we didn't.

1. eBay doesn't get Skype - this is as obvious as it gets.
2. The current Skype Management and investors don't want to deal with Niklas Zennstrom or Janus Friis
3. Mike Volpi, past Joost CEO wanted to change Skype's underlying technology to SIP - knowing this would upset Skype's founders Zennstrom and Friis - Coincidentally about five years ago at ITEXPO Niklas Zennstrom was giving a keynote and at the end of the presentation Andy Voss, founder of Session Border Conrol company Sansay asked why Skype doesn't support SIP. Zennstrom replied accurately that there are far more Skype endpoints than SIP endpoints.

What amazes me the most about this situation is that to all the people who understand Skype, there is a tremendous amount of value in the company and it is worth fighting over tooth and nail. To those who don't understand it - eBay for example, there is limited value.

This story keeps getting more interesting.

In the last two weeks I drove (well I was in the car anyway) for more than 1,500 miles meeting with tech companies in Montreal, Ontario, Massachusetts, Rochester, NY, Los Angeles and San Diego. The last stop on my latest trip was at CTIA where I saw dozens of companies from around the globe.

Most of my travels involve learning about companies in the communications and technology space and often advising them on how they can be more successful. Sometimes I get to see some very innovative solutions which I can't share at the time for a multitude of reasons (embargos, etc) and other times I get a firsthand look at things which I share as soon as I can. In many cases, companies ask me about TMC's experience in helping companies with their thought leadership, branding and lead generation activities.

As CEO of a media company which builds online, in-person and print communities for millions of global purchasing decision-makers each month, I have an unusual role of also writing about many of the companies, products and services I see. What is fun for me is finding new ways to bring buyers and sellers together. Buyers want to quickly learn about which products they should consider before purchasing and sellers are looking to sell as much as they can while spending the least amount in doing so.

It is an amazing place to sit because extremely often I see industry-changing technology which languishes because an engineer sets the marketing budget and has the corporate communications skills of sheetrock. Remember, I have an engineering degree so I feel I am uniquely qualified to beat up my brethren. Then there are the companies I visit where their products shouldn't be accepted for free, yet they sell in volume and make massive margins because they are able to communicate the benefits properly.

Then there are a slew of "Hail Mary" companies which have really cool products but no business model to speak of. Sometimes I can convince the founder of such a company to modify their offerings to actually make money but other times the companies die on the vine because they think they know best - after all, I just meet a thousand companies plus like them a year - what do I know?. Sometimes though the amazing happens and they  get purchased by a Google, Cisco or Oracle and thus the "Hail Mary" designation.

I am thrilled to act as a trusted advisor on PR and marketing issues and I figured it is unfair for me to only share information with people I choose to visit and subsequently I spoke on a webinar a month or so ago about hosted SEO which was well-attended and generated lot buzz in the industry. So many companies wonder about search engine optimization and what the trick is to ranking high. While there are lots of factors to consider, the basic premise is to write lots of content which people want to read and share with others.

SEO consultants get paid to help companies rank higher and in some cases they can boost a company's search rank for a while. But in the end, steady and relatively large amounts of content are what companies need to generate to rank high on various terms.

I could go on about building communities and improving SEO for hours - I am truly passionate about figuring out how to instantly bring a group of people with similar interests together on a single web portal. Coming from the world of magazines, it used to take TMC six months to build a mailing list and in many cases you really needed 18 months to do it right. Oh and did I mention you had to mail at least half a million subscription offers and it would cost you about $400,000 at a minimum to rent lists, print and mail your subscription forms? To show you how much things have changed, TMC has been involved in projects in the past few months where we built communities on new topics which are up and running and attracting hundreds of thousands of people in a matter of a few weeks. It is truly amazing to see how media has evolved through the use of news-generated, laser focused community building.

Again, these topics are a major passion of mine and something my team at TMC has gotten great at focusing on. The next webinar I will speak on takes place Thursday of this week, October 15^th at 12:00 PST and on it I will discuss how you can partner to boost your search engine marketing. I look forward to seeing you there. Be sure to register now so you don't miss it. As a reminder, you can view the archive if you aren't around at this exact time. Just be sure to register. Also, be sure to bring any questions you have. I look forward to answering them this week.

Where is my Mobile Data?

An overwhelming amount of wireless, communications and tech news is the best way to describe the last few weeks. Perhaps one of the most important nuggets is a catastrophic loss of T-Mobile USA Sidekick customer data and if you have one of these nifty little gadgets, be aware the wireless carrier asks that you not reset it. This issue highlights the problems with SaaS and cloud-based services. Google, thought to be the gold standard of hosted data companies has suffered outages and so have Amazon and Salesforce.com. The one constant here is cloud-based services seem to be as error-prone as CPE equipment which makes sense. If it can better, it will gain a larger share of the data center pie.

Android is Everywhere

But for Google, cloud computing is just one of many projects they have their hands in. Last week at the CTIA show in San Diego I witnessed Google Android everywhere... Android has even caused Verizon to start getting along with the search leader. And you wondered why that Nobel Peace Prize was awarded. At the same time, Microsoft rolled out Windows Mobile 6.5 and this platform is just not cutting it as it is tired and old. Once upon a time I marveled at this OS but then again I did the same with my Commodore 64 back in 1982. Yes it's getting better, but I used it myself and wasn't too impressed. One thing for sure is the web browsing on an iPhone 3GS seems to be far superior to either competitive mobile OS.

Will a Mobile Search for "Microsoft" Show Results?

The scary part of this equation for Microsoft has to be that they are in danger of losing the mobile device OS race altogether. And this is where Google and Microsoft will tell you the future of search is. In fact, Google is looking to tightly couple search with mobility in a way which will offset their inability to effectively compete with the sheer slickness and elegance of the iPhone.

AT&T Hates Google and Apple Learns From Decades of Defeat

Two points worth mentioning are that AT&T may be distancing itself from Google (hint, they aren't friends) and moreover, Android has some challenges ahead of it - primarily figuring out what Android really means in a world where open source platforms are able to grow in various and competing directions quite rapidly. The problem of course is for users and developers looking to easily roll out apps across a broad range of platforms which are all supposed to be equivalent. In reality they aren't and developers have to deal with individual phone models when programming for Android. The process is not as easy as it should be. Finally the concept of Apple owning the hardware shows how this can be superior to the open hardware scenario. Sure, it can cost more for non-open hardware which is controlled by a single provider but Apple seems to have learned from its experience of getting kicked in their rear by Microsoft in the eighties. They have realized it makes sense to price mobile devices reasonably (or have the carrier chip in as needed) so they can profit from software and music. Back in the eighties when we were all listening to Journey, Apple didn't get a cut of every piece of software on their platform. Now (what do we listen to nowadays?) they do. So for Apple, they have to be price competitive with their phones as they make it up on the backend.

Microsoft's Acquire or Die Mobile Strategy?

Going forward, Microsoft has its work cut out for it if it wants to be a major player in mobile search. After all, they are losing share and quickly in the mobile world. It seems they need to try and pick up Nokia and/or RIM and tell those pesky regulators this is the only way they can compete effectively with Google Android.

Why Develop a Revenue Strategy, We are having too much fun Prematurely Aging Ballmer?

Then again, some will point to the fact that Google hasn't figured out their mobile search strategy - and to some degree they are right. But to me the model is pretty obvious. Dominate the apps and service market by giving it away and then experiment endlessly by showing ads in various formats until you find a way to make money without upsetting (too many) users or advertisers. This is not rocket science as Adwords was born in this manner and YouTube is the latest Guinea pig. Just recently in fact, the company started to insert ads in the Google Maps application of the iPhone. Of course this is likely the reason Apple decided to buy a mapping company - they either don't like the idea of the company behind Android profiting from their platform or they are interested in getting a piece of the advertising pie for themselves. Maybe both - stay tuned.

Spare some Change? Here's a Decade's Worth

The one constant in communications is change and more change. We have ourselves an industry where new paradigms are invented constantly and new competitors emerge from unlikely areas. All the while, existing players have to learn how to navigate alliances and competitive sets to emerge as credible and profitable players in a mobile, broadband and fixed-line ecosystem of dizzying complexity.

From where I stand, fewer things can be more exciting. But for the companies making the products and those looking to partner and purchase, try not to blink or you could miss major and ground-breaking news. This is not Internet time, we have gone to the next level - things are happening at optical or photonic speed. Boy is it exciting. I'll have more to discuss soon but for now I need to brew a fresh pot.