(bay) Tech Notes

2008-03-27T11:00:00.000-07:00

Why Google's Not Clicking

There's little doubt in the tech world that Google has a huge advantage when it comes to search advertising .. it's been a gold mine for the company and its shareholders, and it seems that everyone else is struggling to catch up.

But the latest news is not encouraging for Google, and it only serves to prove what people have been guessing for months: Web surfers just aren't clicking on Google's ads like they once were.

Slow growth in the click area is bad news for Google, because that means advertisers aren't going to be pleased, and Google will become less valuable. Given that Google's share price -while still impressive- is now 300 points off its high, Wall Street has taken notice, too.

So .. is the Google model not what we thought it was? Not necessarily. Keep in mind that Google went public during a time of economic prosperity, and ad revenues were flowing well. The company does seem to have a better way of targeting customers, but when recession hits, it hits everywhere, and advertisers are traditionall among the first to pull back.

That hits radio, TV, newspaper .. and Google.

2008-03-25T07:50:00.000-07:00

Yahoo's About-Face

The technology press, me included, held Yahoo's feet to the fire when it was first reported that the dot com giant had turned personal information over to the Chinese Government, leading to the jailing of sone Chinese Dissidents who had used Yahoo.

It was, many thought, a deserved criticism. But for all the criticism Yahoo took, the company deserves some praise for what it's doing now.

Yahoo is starting what it calls a "human rights fund" that aims to help victims of government censorship, by providing legal advice, and other assistance. In a move both powerful and symbolic, Harry Wu, former political prisoner once deported by the Chinese Government, is overseeing Yahoo's plan.

It stands that human rights advocates who were recently critical of Yahoo's actions are now praising the company. Yahoo undoubtedly faces challenges operating in China, but by taking this stand, it's leading the way for other companies to do the same.

With so much focus on China as the Olympic Games approach, Yahoo's timing, and it's actions, are commendable.

2008-03-24T07:41:00.000-07:00

The Bay To Bangalore

One of the best assignments I've ever been on as a reporter was about a year and a half ago, when I went to Bangalore, India, to find (and it wasn't hard) technology companies that do business both here in the Bay Area, and in India.

HP, Cisco, Network Appliance, Infosys, Oracle .. the list goes on and on, and it's growing. I bring this up because just this morning, ignored in the big news of the day about JP Morgan and Bear Stearns, is the continuation of a trend that will be felt long after our market settles down from the recent banking shakeup.

VMWare, the red-hot, recently public software company from Palo Alto that made Virtualization Software a household name, just announced a 100 million dollar investment in Bangalore. More new jobs, more flights halfway across the world.

On top of that, Affyemetrix, the Santa Clara biotechnology giant, signed a deal with a Bangalore based biotech company to start a genetic project. Again, new jobs, new technology, etc.

It's easy, perhaps, to pass these moves off as companies trying to save money. But India, particularly Bangalore, is not just about saving money anymore. It, like the Silicon Valley, is about highly skilled engineers coming from top-notch Universities. Instead of pawning work off on Indians, Silicon Valley companies are wisely partnerning with India. Look for more, similar, deals in the future.

A flat world, indeed.

2008-03-19T14:57:00.000-07:00

A Change in iTunes?

Emerging from the crazy market trading of the past few days, this story, potentially changing the way we download music from the internet.

Apple, the company that already changed the way we download music from the internet once, may be at it again. According to the Financial Times, Apple is considering a plan to give you all the music downloads you could possibly want from iTunes, for free, if you pay a premium for an iPod or iPhone.

This would really be interesting .. after all, financial analysts have often said Apple moves songs on iTunes simply to sell more iPods. And, it's been working. There is not (according to the experts) all that much profit to be made from the dot com song download business, but iPod (and iPhone) sales have boosted Apple's fortunes -and that of its investors- into the stratosphere.

So .. does this mean an eventual subscription-based iTunes? I don't know .. that just doesn't excite me. Call me old-fashioned (or just old), but subscriptions don't do it for me. I don't mind buying songs or albums on iTunes. But free?

That might make an extra expensive iPod a good investment. Sort of like buying a hybrid car during times of high gas prices .. more cash up front .. but a good investment as time goes by.

2008-03-13T11:29:00.000-07:00

Recession & Hope

With oil, housing, and the dollar all going their seperate (and costly) ways, our econony is perilously close to, or already deep into, a recession .. depending on who you ask.

Today, we're out talking to economists and CEOs about how our current economy compares to past recessions, and why, even with so many factors going downhill fast, at least one large technology company says it's growing .. and hiring.

So I ask you .. has this economic downturn hit you differently that past slowdowns? Are you feeling better about the future having been through this kind of thing before, or do you think that our current economy is heading for an even deeper recession?

Feel free to comment here in this blog, or e-mail me at scott.budman@nbc.com

2008-03-10T13:15:00.000-07:00

Tech & Water

Pharmaceuticals in the water? Yet another water purity issue .. and technology jumps to the rescue.

Earlier today, we went out to a Bay Area reservoir to visit something called the "Solar Bee," a water purification piece of technology that runs on solar power. The "Bee" stirs up the water in a certain way to make sure that any mercury that creeps into the water table is kept underground inside the sediment, so no microbes, and no fish, ingest it.

Could this type of technology be used to dissipate other pollutants? Looks like it may .. the Bees are in very early phases of testing, but already moving from mercury to algae. Perhaps big pharma could be next.

Count on the Silicon Valley to give us technology to fight against the Nation's ills .. in this case, polluted water.

2008-03-07T11:26:00.000-08:00

TV's Digital Switch: Got Cable?

Another look at the upcoming TV switchover to a digital signal tonight .. it's coming next February, but we're already getting questions about what people have to do if they have cable pumped into their homes, or a satellite service beamed into their livingrooms?

The answer? Practically nothing. Cable and satellite services (for example, DISH Network) will make sure that the signal that gets sent to your TV set is digital. They take care of it. If you're a subscriber, you'll get the digital signal .. in fact, even if your TV is still analog, the companies can do something called "downconverting" to make sure that you get your digital signal, even if it's sent in the old analog way.

That said, you'll probably be tempted to upgrade in several ways. You may have noticed friends and neighbors getting new TV sets, and the cable and satellite services calling with upgrade offers. This is a time to (if you're so inclined) take advantage of some of these. Lots of competition (i.e., Comcast vs. AT&T) to bring you HD, new digital channels, etc., all because so many people are upgrading their home entertainment centers.

It's all well and good, and if you've been on the fence about a new HDTV, this may be the time to jump .. low prices, and (always good for us consumers) lots of choice. But remember: none of this is necessary. You'll get the digital signal from your paid service no matter what. The rest is gravy.

2008-03-06T12:20:00.001-08:00

iPhone Updates .. Live Blog

I'm coming to you live from Apple HQ, where the company just announced major updates to its iPhone.
You'll soon be able to get business email and contacts from the iPhone, just like a Blackberry.
Apple also will open up its code to outside developers, so you'll get a much wider choice of functions.
Look out Blackberry, Apple just answered a major user complaint.

2008-03-04T13:16:00.000-08:00

Gary Gygax, R.I.P.

A tip o' the multi-sided die, today, for the memory of a man who launched countless careers in the technology industry.

Gary Gygax co-founded Dungeons and Dragons, the role-playing game not only responsible for countless hours lost for many, many people my age long ago, but for many games (World of Warcraft, anyone?) that are in play today. I must say, when D&D came up (and it did a surprising amount of times) in technology companies where we were doing interviews, inevitably, some tech executive would blush for just a second, then launch into a story about how his 3rd level cleric .. well, you remember.

From the news stories out today, Gygax seemed to be not only at peace with his legacy, but happy to hear how so many people were influenced by the game. I'm not sure if he became wealthy through D&D, but he had to know that so many people loved the game, and I;m glad that made him happy.

He certainly deserves it.

2008-02-28T11:50:00.000-08:00

Tech Clicks In School

Students at Universities, especially here in the Silicon Valley, are already used to traveling with mobile technology .. iPods, cell phones, all sorts of texting devices are everywhere.

Add to that .. the iClicker. A piece of technology starting to catch on at the college level .. we found some in a class at Santa Clara University. A class teaching, ironically, 4th century history.

The "clicker" technology is totally modern, though, letting professors quiz students, with everyone knowing the results instantly. As one SCU student told me, no one will be sleeping in class anymore .. you have to have your clicker ready.

We'll show you how this technology is shaking things up in class, tonight at 6.

2008-02-26T13:39:00.000-08:00

Faster Surfing

It doesn't look all that imposing .. kind of a like a server bank we've seen in dozens of Silicon Valley companies.

But the new testing lab set up in Santa Clara by IXIA will eventually help you surf the 'net faster than ever. IXIA's new facility, just opened today, is a testing pad for companies like Cisco, Juniper, and AT&T .. companies that give its customers faster internet, smart phones, and IPTV.

Those companies can pre-test its new gear in IXIA's site, getting a good idea of how a city will react if a certain amount of users log on at the same time. This testing will allow the company to tweak its hardware & software, to better your experience.

This goes back, in some ways, to the early days of the dot com boom. Companies like Cisco and Marimba used to talk about "plumbing." It wasn't sexy, but it made the dot com world work. It's still working, and thanks to IXIA's new plumbing .. it will work faster.

2008-02-25T11:37:00.000-08:00

Mergers? Just Say Yes!

First off, I'm not a shareholder in either Yahoo! or Take-Two Interactive.
That's probably not a surprise to you, given that in one case, I have to stand outside corporate headquarters and talk about layoffs, and in the other, I have to talk about controversy over an ultra-violent video game.

Nonetheless, I'm a bit baffled by the roller coaster ride each company is giving its shareholders. In Yahoo's case, Microsoft's offer sent the stock up 50% .. is management really going to say no, and eventually watch its stock price sink back to $19 a share? I think not.

In Take-Two's case, the video game maker, which really has ONE TITLE (albeit a very successful one), "Grand Theft Auto," just got a two billion dollar buyout offer from gaming giant Electronic Arts. That sent its stock price up a Yahoo-like 50% this morning. Then, the company said no.

Now, I understand that playing hard to get is a negotiating tactic in the business world .. often a good one. So, sure, let's see Yahoo and Take-Two get more money for their shareholders. If they can.

But will they really say no?

If you're a shareholder in either company, please let me know how you feel, and how you're leaning, either by commenting in this blog, or via an e-mail (scott.budman@nbc.com)

Are you ready to say yes, or gearing up for a fight?

2008-02-22T14:08:00.000-08:00

Genentech Vs. Breast Cancer

As blogged about here earlier today, it's a big day in the fight against breast cancer.
We just learned that Genentech's Avastin drug, already used to fight some cancers, has now been approved, by the FDA, to treat breast cancer.

Breast cancer advocates are very happy about the decision, which helps to clear the way for another weapon in the battle against breast cancer .. and also puts money into the pockets of Genentech (DNA) investors. Already a big money-maker for the company, Avastin now has another big market to try & conquer.

There's still a ways to go before Avastin can prove that it's a sure-shot way to beat breast cancer, but today's FDA ruling means it's well on its way .. we'll keep you posted as the Bay Area's biggest biotech company continues to do well, by doing good.

2008-02-22T09:26:00.000-08:00

DNA-Day for Breast Cancer?

Today, a very cool video-game related story for you, and something else, far more important.

We're waiting on the FDA's decision as to whether Avastin, already a billion-dollar drug for Genentech (DNA) of San Francisco, can also be used in the fight against breast cancer.

We'll let you know, in this space, and on the air at 5 & 6, what the FDA decides.

2008-02-21T12:52:00.000-08:00

Video Game Feedback

The Silicon Valley loves vesting, but this takes it to a new level.

I just got back from the Game Developer's Conference, and one of the coolest things we saw was a new way to get video game force feedback .. not a mouse ot joystick, this is a vest you wear, that will really bring you the feeling of the game.

Admittedly, this will work best for fighting or shooting games, and some people avoid those. But if you've already got 'em, the vest from TN Games will enhance your playing in a serious, feel-the-action kind of way.

The vest, developed by a vascular surgeon, is available online now (at www.tngames.com) .. soon to gbet more mainstream distribution.

If you get a chance to give it a try .. it'll make your gaming experience more realistic .. a real kick in the chest.

2008-02-18T12:21:00.000-08:00

The Digital Present

It's coming .. one year from now.
The TV signal piped into your home will be digital, and you're going to have to be ready.

My guess is, if you're reading this blog (and thank you, by the way), you're already hip to the digital changeover .. if not, here are some simple facts:

The changeover is not an expensive one .. I know (firsthand) how tempting and intimidating it can be at the same time to cruise through a Best Buy or Circuit City and see all the cool thin, HD plasma screens that can cost thousands of dollars. Truth is, you don't have to spend a lot of money to upgrade your set .. today, we saw digital TV sets for $150. If you want more, it's there, but it's not necessary to take out a second mortgage to join the digital TV revolution.

I'll be blogging more about this, and what we all need to do to keep up. Just be assured, it doesn't take a huge amount of money. You may need a new set (or at least an adapter - for sale now, by the way), and a little tweaking of your cable or satellite systems.

We'll keep you posted, as the changeover gets closer.

2008-02-15T11:03:00.000-08:00

Movies & Robots

If this was a movie, you could call it "Rise of the Machines."

It's actually a story about the company that sends out nearly two million DVDs a day .. Netflix. Long known as a software company, Netflix recently created some of its own hardware to better sort its vast library of DVDs, and get them in the mail faster.

We got the very first look inside the Netflix Sunnyvale sorting center, where people have been (largely) replaced by robots. Extremely cool, high-tech robots. They can sort and prepare the DVDs almost four times as fast as people. That's good for Netflix's bottom line, its shareholders, and its subscribers, who get the DVDs mailed faster.

Netflix is not entirely giving up on the human touch .. you'll still see some people in the sorting center. Their voices, however, are drowned out by the hum of robots, who don't need a break, and who work extremely fast.

Well show you how they work, tonight at 6 o'clock.

2008-02-14T11:17:00.000-08:00

High Tech In The Hospital

We just got back from Valley Medical Center, where they're taking technology that we take for granted every day, and doing something extraordinary with it.

The hospital rooms inside the trauma center are small .. as one patient told me, the only things that change are the clock and the television set. But thanks to something as basic as a laptop computer, and a wifi network, patients can now travel, virtually, to the outside world.

Dorothy Hushing-Kline is a 16-year old patient at VMC. A drunk driver hit her car on january 18, leaving her with a severe brain injury, and a family struggling to cope. Her recovery is remarkable, and today she goes home, two weeks early. The fact that she's been able to communicate with her family and friends every day is thanks to VMC's wifi network, and a computer that was donated.

In fact, Dorothy's mom says as soon as Dorothy started to communicate via her laptop, her mood changed, and her brain started functioning better by the day. Her laptop was not only a window to the world .. it was a way to help her recover, and got home.

2008-02-11T09:52:00.000-08:00

Yahoo's Next Move?

It seemed like a good idea at the time .. but now Yahoo has rejected Microsoft's proposal to buy it for 44.6 billion dollars.

Is this a stall tactic? It wouldn't be the first. With most contract negotiations, there is a first offer, a coy denial, and, eventually, a compromise with a handshake. Not sure how eager Yahoo and Microsoft are to shake hands, but at some point, a deal seems to to be coming.

How do we know this? The markets. Yahoo stock did not fall when it rejected the deal that boosted said stock price by 50 percent. That means Wall Street is confident Yahoo make actually get a better offer. Microsoft stock is still slipping .. perhaps the consensus is that the Redmond Giant will come up with a better offer.

Meanwhile, there is also talk of some sort of a Yahoo/AOL tie-up. This would give Yahoo even more coveted "eyeballs," but would that put a dent in Google's armor?

We'll follow developments as they happen today, and keep you in the loop.

2008-02-04T09:16:00.000-08:00

Do You TiVo?

We all know people who fire up the DVR during the Super Bowl .. after all, it's not just the great plays people re-watch .. we now know yesterday was the day to check out clever commercials.

And TiVo (TIVO on the Nasdaq) knows what you watched .. and what you re-watched.

According to the Alviso based company, the E-Trade ad with the baby investor was the #1 rated spot during the big game. Good for E-Trade. It's been a horrible year. So bad, in fact, that when I saw the baby ad, I could only think of the fact that this is a company that lost billions of dollars over the last three months .. and it's buying a Super Bowl ad?

But, that's just the business reporter in me. Today we head over to TiVo, to figure out how the magic happens that this company knows all of our TV watching habits.

We'll show you at 5 & 6.

2008-02-01T09:22:00.000-08:00

YahooSoft?

This is the story we'll be covering all day today ..
Microsoft, admitting that it's been coming up short in the search department, making a hostile bid for Yahoo!, to the tune of 44.6 Billion dollars.

Wow.

This is a direct shot at Google, which has been vexing both Microsoft and Yahoo! for years.
Can this combination work? It seems to make sense, what with Microsoft needing the search Yahoo! has, and Yahoo! needing the stability that Microsoft has.

We'll be asking around the Silicon Valley to see what people think .. the guess here is that this merger will eventually go through, but not without some pain - think legal antitrust concerns, maybe Yahoo! looking for a sweeter deal, etc.

And Google? Silent so far this morning .. still licking its own wounds after a weaker-than-expected earning report from last night.

2008-01-30T14:14:00.000-08:00

On The 'Net

Two days .. two companies, going in different directions.

Yesterday, Yahoo, aside from the layoffs, told a story of slow growth. Lots of visitors, but a stalling bottom line, and it's stock sunk today to a near 4-year low.

Amazon.com on the other hand, says its profit just doubled. Amazon stock has been hot as of late .. the online shopping leader seems to be firing on most, if not all, cylinders.

Do you Yahoo? Or, are you more likely to do your shopping on a website like amazon.com? Online shopping has become practical, safe, and part of life. As for Yahoo's portal-like approach? .. Seems to be losing ground to fast-movers like Facebook & Google.

Speaking of Google, we get its earning report tomorrow.

We'll let you know what the third company in the group has to say then.

2008-01-29T09:47:00.000-08:00

Steve Jobs To The Rescue?

As we wait for the latest quarterly numbers (and possibly restructuring news) from Sunnyvale's Yahoo, we caught a glimpse of a surprising letter sent out recently by Steve Jobs to his Apple troops.

Courtesy of "Apple Insider," the letter shows Jobs reassuring Apple employees and other shareholders, in light of Apple's recent drop in stock price. "Hang in there," Jobs advises, suggesting that the company's huge cash stash, absence of debt, and well-known products will carry the company through the stock drop-off.

Jobs, as usual, has a point .. lots of stocks have been pummeled lately, many undeservingly. You could make a case, as Jobs does, that Apple's stock drop has been largely because of a hit taken by the overall economy. If you watch financial news, you've seen a parade of tech-watchers recommending Apple stock as a "buy," because the company remains so strong, with good future prospects.

Unusual, perhaps, for a CEO to put out a stock-related letter himself, but Jobs has never been one to fall victim to commonality. he himself has lost hundreds of millions of dollars on paper as Apple stock has tumbled, so he knows of what he speaks.

Now .. what will Jerry Yang say to Yahoo shareholders today.....?

2008-01-23T15:18:00.001-08:00

Ebay's Whitman to Retire

After a crazy, investor-affirming day that saw stocks rebound by more than 600 points to end firmly in the black, we got news from Ebay that shifts the way the Silicon Valley looks, and the way it will act.

Meg Whitman, after ten years leading the world's biggest online auction house, will retire at the end of March. It makes sense, especially when you hear Whitman herself say that CEOs in the tech industry should be replaced every ten years or so. Nonetheless, her presence will be missed. Not only did she transform Ebay into a world-beating entity worth tens of billions of dollars that helped launch the dot-com boom (and survive the bust), but just think of the jobs (and wealth she created).

She was also one of the early female executives in the go-go atmosphere of the Silicon Valley .. clearing a path for many others who have followed, especially in the dot-com arena.

She made a big mark, did very well for herself, and stepped away while things were still good.

2008-01-23T11:28:00.000-08:00

The Tech Wreck

Technology has, for several months now, been seen as a safe place for your money, even as our economy spins into recession.

And why not? Sales during this last holiday season were very strong for tech products, even as they were fairly weak among other industries. And, as banks and credit companies bleed cash, technology companies sit on big piles of it. Since cash is king during a recession, it makes sense that tech companies would be able to whether the storm.

All that may have changed in the last couple of days. Last night, Apple warned of possible weakness in the next three months. This is a company that set the bar very high with recent holiday sales, so a bit of a slowdown can be expected. Nonetheless, investors bailed out of Apple stock, sending the share price tumbling.

Then, this morning, Motorola says it's struggling to sell cell phones .. now the entire wireless industry is paying the price.

Is tech actually safe? We here in the Silicon Valley will be watching very closely to see if we're part of the problem, or a potential solution.