The Way Things Work

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Magic, they call it. And indeed we may add an appendix to that old saw: any sufficiently advanced, or sufficiently obscure, technology is indistinguishable from magic.

You must know the story of the Mechanical Turk. How princes and tradesmen were amazed by this ingenious device’s ability to play chess intelligently. In an age of steam and brass hinges! Yet at the time thousands were fooled. Had they known a bit more about machines, they might have realized it was not just improbable, but impossible.

The Mechanical Turks of our day aren’t designed for entertainment, but to be bought and used, yet a similar contrivance goes into preventing the secrets of their operation from being questioned. In fact, we are already at a time where it is more or less impossible for one person to understand or question them. Apple may be ahead of the curve on this trend, but while it appears they’ve been leading the industry by the nose, they in turn are being led by the inexorable forward motion of technology. Open hardware advocates fight the good fight, and they fight it valiantly, but defeat is inevitable.

And what would victory be, exactly? A laptop you can repair in the comfort of your home? Sounds good, to be sure — but how deep does that capability really go? If your hard drive breaks or your RAM is corrupted, will you pull out a magnifying glass and correct the faulty sectors with your electron drill? Adjust the drive head in your billion-dollar repair toolshop out back? No, you’ll order a new drive, new RAM, a new screen.

RAM used to be pieces too, you know. In an excellent (so far) book about the origins of the computer, Turing’s Cathedral, the mechanical nature of early computing machines is presented for your humble contemplation. ENIAC, for instance, had 17,468 vacuum tubes, 1500 relays, and 500,000 hand-soldered joints. Operation was complicated, but mechanical: if you weren’t careful, you might get your finger caught in the RAM. If something broke, you needed a wrench. Now a stored bit takes up so little space that if it gets much smaller it will cease to be governed by Newtonian physics.

This is the real problem. Technology actually is approaching the magic point. You want to know how your laptop works. You can’t know. Even the people who made it don’t know. Apple has to call up LG or Sharp when it wants a high-density display. LG has to call Samsung when they want MLC flash storage. Samsung has to call NVIDIA when they want graphics cores. NVIDIA has to call ARM to make SoC architecture. Vertical integration is a thing of the past because no company can do it all. It took Intel five years and billions of dollars to develop just the processor your laptop runs today. The whole system is the culmination of a century of work by geniuses and specialists. Control over your hardware is the flimsiest of illusions. You only understand the snow frosting the top of the iceberg, and even then all you can do to fix it is pay for more.

But that’s a bit of an academic (and existential) appraisal of the subject. Realistically speaking, there are better and poorer ways of creating a laptop, ways that enable such a device to last for five years instead of two, or to enable upgrades that cost a few hundred rather than a thousand dollars. The new Macs are, by some standards, the worst yet made.

Even this is on its way out, though. Integration and portability are the word now, not modularity, at least for the vast majority of users. Mobiles and tablets use SoC architecture that unifies logic, graphics, sound, and other functions all under the same chip for reasons of compatibility and power savings. I’ve assembled my own PCs for years, and I expect I’ll probably assemble one or two more, but even now it’s anachronistic, at least at the consumer level. Modular and open hardware (such as it is) will continue to exist, but as before they will only funnel into more usable, closed systems.

We’ve made this surrender many times. We surrendered control of our government to representatives because it’s better to have a few (ostensibly) informed individuals whose (nominal) duty it is to govern on our behalf. We surrendered control over our cars decades ago with electronically controlled fuel injection and timings, with parts we couldn’t fix or even reach, because it improves mileage and reliability. We surrendered control over the way we interact when we decided we’d use Facebook and text messages, because it’s convenient and fun. Each time we make a little bargain: we control less and we get more. Is anyone surprised it’s happening again?

We should certainly be able to do what we want after the fact. We can impeach our representatives, tweak our timings, and use Facebook to organize anti-Facebook rallies. And we can and should run our own programs, our own operating systems, do what we will with the platform we’ve bought.

The biggest threat is not to hardware, which has in truth been beyond the comprehension of users for decades, but to what we are allowed to do with it. Apple can solder their RAM and seal it with custom screws all they want. They are only creating the medium and in this case, the medium is not the message. Their computers are more locked down than others, but we mustn’t underestimate how locked down the others already were.

More troubling is the deeper marriage we are seeing between hardware and software. How many OS X and iOS-specific functions do you think lie beneath the placid mask of the A5 processor? How long before locked bootloaders and UEFI and intelligent cables prevent you from installing a new OS or streaming from non-approved sources?

For that matter, with virtualization of services and externalization of storage, how many steps are we adding between ourselves and the things we use? Running the software we want, even if it was on hardware we don’t understand, was one of our last strongholds. And now “our” software is running on other people’s hardware, people who give it to you for free and in return we… what, exactly? We don’t question that nearly enough.

The fight is not to control the hardware. The hardware has been out of our control for a long time. Despite that, hardware today, more complex and inaccessible than ever before, is more enabling and powerful than ever before. If you want a fight, don’t fight against technological progress, which constantly moves these things ever further out of your grasp. Whether you or Apple has to replace the drive or screen in your new MacBook Pro is immaterial. Whether Apple, or Amazon, or the MPAA, can stop you from using it the way you like is not. Forget the soldered RAM; there are those who would solder you down given a chance. They are the ones to fear, and therefore the ones to fight.


Virgin Galactic Hits Milestone As Commercial Space Travel Rockets Toward Reality

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NASA may not be sending anyone to Mars anytime soon, the exploration of space and beyond – though on a much smaller scale – is being spearheaded by folks like Richard Branson and Jeff Bezos. (Maybe you’ve heard of them.) Though Bezos and Blue Origin continue to work under a veil of secrecy in Texas, Virgin Galactic keeps humming along in the Mojave having recently scored a major milestone for the sub-orbital space tourism arm of Branson’s Virgin empire.

Earlier this month Virgin Galactic and its partner Scaled Composites received an experimental launch permit from the Federal Aviation Administration, the first for a manned experimental aircraft. Considering there have been numerous test flights of both the mother ship (WhiteKnightTwo) and spacecraft (SpaceShipTwo) since 2009, I asked Virgin Galactic president and CEO George Whitesides what comes next.

“Over the next six to eight weeks, we’ll continue integrating rocket motor components into the vehicle [SpaceShipTwo] itself,” Whitesides told me. “Simultaneously we’ll be finishing ground tests of the rocket motor and then towards the end of the year we’ll get into the vehicle and get up to 50,000 feet for our first powered flight. It’ll be a short burn but we’ll probably get up to supersonic speed to see how the vehicle does.”

With over 500 passengers having thrown down a $20,000 deposit on the $200,000 flight into space, Whitesides says Galactic is “roughly on track” for a late 2013 commercial launch. Of those 500 plus passengers, Whitesides, the former Chief of Staff of NASA, and his wife will be aboard rubbing elbows with other notable passengers like Ashton Kutcher, Stephen Hawking and the dynamic Hollywood duo Brangelina. The Whitesides were two of the earliest customers having purchased tickets in 2005.

Besides a heap more tests over the next year, a commercial operating license from the FAA is the next milestone, says Whitesides. “Getting this experimental permit keeps us on track for the first milestone and within reach of that 2013 milestone.”




Notes From The Ebook Trenches

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I keep a close and interested eye on the world of ebooks, and I’m pleased to report that it keeps getting weirder. British supermarket chain Sainsbury – who I worked for once, helping to program a new payroll system for a few months, until they scrapped the whole project – recently bought HMV’s share in ebook hub Anobii for a whopping, er, one pound. (Americans: that’s about $1.50.) Huh?

Meanwhile, HarperCollins announced its “HarperCollins 360” global publishing program, which at first I thought was them taking a page from the music industry’s post-Napster ‘360 deals‘ — but no; on sober second thought it has nothing to do with those except for name. Instead it’s an attempt to make all of their English-language books available to all English-language readers. I know, I know: they’re only doing this now? Just as ebook revenue exceeds that of hardcovers? Ah, publishing.

Meanwhiler, Startup Weekend founder and semi-vagabond Andrew Hyde Kickstartered, wrote, and self-published a travel book called “This Book Is About Travel,” and then discovered that Amazon was marking up its digital delivery fees to the tune of an estimated 129,000%. Nice margin if you can get it.

But the rest of us, well, not so much. Here are some cold hard numbers from Amazon for yours truly, for the first half of this month:

That’s after I made a few of my books free for a couple of days under Amazon’s Kindle Select program. Which requires you to publish your books exclusively on Kindle, incidentally. I was content to do, since my iBooks sales were more or less nonexistent — but it’s really unclear how this works with my having previously released all these books under a Creative Commons license. I suspect the notion of authors giving away their books in perpetuity seems so weird to Amazon that it never really occurred to them.

What Amazon thinks matters. They remain the big dog of the book industry. The Kindle has dwindled from a vast majority to a small minority of Hyde’s sales — as he puts it, “Kindle Sales Vanish When Users Know About Their Fees To Authors” — but that’s a special case. With ebooks, at least in the USA, Amazon’s Kindle is dominant and everything else is irrelevant. Which ain’t necessarily so bad; some self-published authors are making a pretty good living off the Kindle ecosystem.

Not me, obviously, but I still find the above chart cheering: close to twenty thousand downloads of my novels Invisible Armies and Night of Knives in two days, with zero publicity. But of course virtually no one went on to actually buy the books. At least I have a lucrative software job; but just so you know, a lot of people who write really good books are in such dire financial shape that they may never be able to afford to take the time to write another..

What irritates me most, though, is that I’d like to make these books available for free forever…but of course Amazon won’t allow it. And again, they’re the big dog. Twenty thousand downloads in two days; that’s more than all my books combined get in a full month on Feedbooks. And I only just cracked Amazon’s Top 40 Free Books bestseller list.

I’m convinced that in the long run we’ll move to business models where paying for a book (or song, or video) is accepted as a) strictly voluntary b) often something you do after reading/hearing/viewing it. For the record, I view this as more inevitable than desirable, but I also think that this will ultimately be good for artists–as long as we can get the reading/listening/watching masses to accept this cultural shift, and to voluntarily choose to pay for the things they enjoy, sometimes after they’ve enjoyed them.

That will not be easy. And it’s not being made any easier by the existing entrenched business models fighting voluntary payment tooth and nail. By doing so they’re inadvertently teaching a vast audience of consumers that paying for books, music, and TV is something you only do if/when you have no choice in the matter. Call me a crazed idealist, but I think that instead we need to convince consumers that they need to pay money because that’s what supports the storytelling they want; and I fear the entertainment industries of the world will eventually find that what feels like hanging on tooth and nail actually means slowly gnawing their own limbs off.


Aidin Finds $600K From General Catalyst & More For A Yelp For Continuing Care

Aidin Logo

Aidin, a startup that helps people find better continuing care after they leave the hospital, is announcing today that it has raised $600K from General Catalyst, HLM, Red Swan and a band of angels and physicians from the healthcare space. The startup, a member of the NYC healthtech accelerator Blueprint Health, will use the funding to accelerate its growth and keep rampin’ up that team. Everyone needs more developers these days.

But what does this healthtech company do? Well, you shouldn’t want to go there anyway, but hospitals need patients to find better care providers after they leave the hospital. Because they keep coming back. In the U.S., one in four Medicare patients are readmitted to the hospital within 30 days, and readmissions have a $17.4 billion price tag for hospitals.

This is especially true for “post-acute care,” or the care you receive after leaving the hospital to recover from an acute illness, injury or from surgery. Traditionally, “post-acute care” has meant care for elderly patients after they leave the hospital, but that’s changing. There are 25K post-acute care providers in the U.S. that deal with all ages, according to Aidin co-founder Russ Graney, which include nursing homes, health agencies, and rehab centers. And there’s a huge variability in care at all of them.

To get better outcomes and avoid going back to the hospital, patients need better information, but hospitals can’t tell their patients which care facilities to choose — no objective ratings or reviews of the providers to help them find a good one.

So, Aidin helps patients (or their families) make the right choice post-hospital by providing them with up-to-date ratings and reviews of the available providers in their area, as well as giving them data around the outcomes of each providers’ patients. 50 percent have gone right back to the hospital? Well, probably want to avoid that one.

The information they provide, Graney tells us, is customized to their specific conditions and needs, so that, say, a patient needing follow-up wound care will see ratings for providers that have really nailed wound care — not postnatal care. This includes ratings and reviews from patients who’ve received that specific treatment from that specific provider. In a sense, they’re trying to create the Yelp for continuing care — but which makes hospital staffs’ lives easier, too.

Through Aidin, hospital staff can easily create referrals, share provider ratings with their patients, enter the patient’s choice in the system, as well as take advantage of eMessaging and emailing. The idea is by integrating this into hospitals’ existing infrastructure they can help them save hospitals money on readmissions, documentation, etc. And for patients, it’s a much more effective way to be matched with the right care provider.

As to where the startup plans to make money? They haven’t decided concretely on a business model yet, but potential revenue streams could come from hospital subscriptions, lead-gen/transaction fees for providers, etc. Though it’s somewhat of a niche market, there is some competition from electronic referral systems like ECIN and Curaspan, but with a fresh Web 2.0 interface and some ease of use, Aidin thinks it can do it better.

Aidin here, product demo here.


#FailedTechBands Is Funnier Than Most Hashtags, Shows Genius Of Twitter Personalized Trends

Twitter Smart Bird

“The Black IPs” lol. I follow nerds on Twitter, so rather than just the latest pop stars and sports games, I was delighted to see a nerdy hashtag in my Trending Topics. It’s thanks to Twitter’s new Tailored Trends that launched on Tuesday and shows you personalized trends based on who you follow.

“Creedence ClearRecentHistory? Revival” brilliant. In just a few days Tailored Trends has shown algorithms can beat back the stupidity of the Internet. Here’s why this matters, and a look at the best of #FailedTechBands.

The sad fact is that there’s a bag full of idiots for every genius on Twitter. Worse yet, smart people respect those who follow them and don’t flood their streams with a thousand repetitive tweets — dumb hashtags for example. Meanwhile, the imbeciles of the world post a flurry of tweets oblivious to it drowning out more sensible content.

That meant intelligent hashtags and topics were less likely to reach the volume necessary to break into the Trending Topics list. As a result, Trends was often filled with inane, offensive, and downright stupid hashtags and phrases because of this difference in tweeting behavior. But now if I see idiotic trends, it’s my own damn fault for following idiots. Well done, Twitter.

Well done because advertisers are probably a lot more willing to pay for a Promoted Trend now that it’s less likely to sit next to “#BlameTheMuslims” “#BigDickProblems” and other racist, sexist, childish, and otherwise offensive content I’ve seen become Trends. Twitter should avoid censorship of actual tweets at all costs. But when it comes to repurposing content within the service, focusing on relevancy might incidentally keep things a little cleaner, smarter, more productive.

So what did my delightful discovery of a truly relevant hashtag win me? These awesome #FailedTechBands:

Linkedin Park #FailedTechBands
Christine Erickson (@christerickson) June 15, 2012

Bit.ly Spears "It's Bit.ly b****!" #FailedTechBands
Tania (@CongoKasongo) June 15, 2012

The USB Gees #FailedTechBands
Poco Vicio (@pocovicio) June 15, 2012

A Flock of SQLs #FailedTechBands
holly woolard (@holly_woolard) June 15, 2012

MatisYahoo! #FailedTechBands
Mike (@DemonJuice) June 15, 2012

The Google Dolls #FailedTechBands
Christine Erickson (@christerickson) June 15, 2012

The Black IPs #FailedTechBands
Hannah Harland (@HannahHarland) June 15, 2012

Earth, Wind, and Firewall. #FailedTechBands
Kiernan (@KiernanProud) June 15, 2012

Kernel Panic at the Disco #failedtechbands

I’ll take my award now, thank you.—
Kiernan (@KiernanProud) June 15, 2012

The Jackson HTML5 #FailedTechBands
DevCon5 (@DevConFive) June 15, 2012

A Dell #FailedTechBands
Vince Speelman (@VinSpee) June 15, 2012

Jefferson AirPlay #FailedTechBands
Prashant (@pmgandhi) June 15, 2012

And our favorite tech conference speaker / new Microsoft employee:

MC Yammer #FailedTechBands
Brooke Pietsch (@brookepietsch) June 15, 2012


Yahoo Mobile Sales Head Paul Cushman Joins Ad Targeting Startup Drawbridge

Paul Cushman

Drawbridge, a cross-device ad targeting startup backed by Kleiner Perkins Caufield & Byers and Sequoia Capital, announced today it has hired Yahoo’s former mobile sales head as its new vice president of sales and business development.

The hire in question is Paul Cushman, whose official title at Yahoo was senior director of mobile sales strategy. Despite the turmoil at the top of Yahoo, and the virtually unending criticism it seems to get in the press, Cushman insists that his departure shouldn’t be read as a sign of dissatisfaction with his old employer.

“I was having a great time at Yahoo,” he says. “It’s an insanely good company and it gets very bad press.”

Nonetheless, Cushman says that when Drawbridge approached him about building up the business side of the startup, he was intrigued. At Yahoo it was relatively easy to connect a person’s activity on desktop and mobile, because users were signing in to Yahoo Mail and Messenger on multiple devices. Because of that, Cushman knew how important that data is for advertisers, yet unlike Yahoo, most companies don’t have it.

So what Drawbridge has done (as founder Kamakshi Sivaramakrishna explained to me before the company launched) is build “probabilistic and statistical inference models” to suggest which PC and mobile users are likely to be the same person using two different devices. Then advertisers can use the data collected about someone on the desktop to target ads on mobile. Cushman sums up his reaction to the Drawbridge pitch: “I’m doing this at Yahoo, and if you can do this for everyone else, then you’ve got game.”

Now he says he’s trying to help the Drawbridge team, which is science- and engineering-driven, work with advertisers. Cushman claims to hate the word “productize,” but he admits that’s basically what he’s trying to do with Drawbridge’s technology.

“We need to take the unique capability of the company and orient the message towards the marketer of women’s underwear and say, ‘This is how we’re going to get women 18-34 buy more push-up bras,’” Cushman says.


Fritz Lanman’s ‘Livestar’ Launching Soon, To Fill The Gap Between Foursquare And Yelp

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It’s been a little over a year and a half since we wrote about Fritz Lanman’s departure from Microsoft, to build his own startup called “5Star.” Well, now we’re hearing that his startup, actually called Livestar, is going to launch soon, judging by a demo video posted on Lanman’s Facebook page. As early as next week even.

Since our initial article, Lanman, a former Microsoft and Yahoo deals guy, has made some pretty savvy angel investments, most notably getting in early on Pinterest and Square. And now he’s ready to focus on his own project.

We’re hearing that the startup is trying to own the trusted recommendations space, and aiming squarely for the gap between Foursquare (mobile-enabled local) and Yelp (reviews). Livestar is apparently approaching this from a unique perspective, but one that that demo video does not entail.

We’re also hearing very very specific funding information, that the startup has raised $2 million from investors Hadi and Ali Partovi, Peter Chernin, Paul Buchheit, WME and Ray Ozzie. More next week apparently!


From The Archives: Watch Yammer’s First Public Demo And Launch At TC50

Yammer, Yammer at TechCrunch 50 TechCrunch50 on USTREAM. Conference

Way back in 2008, Yammer made its first public appearance at the TechCrunch TC50 conference. David Sacks, who introduced himself as the CEO of the genealogy siteGeni, not Yammer, gave an 8 minute demo of the new product. He finished the demo by flipping the switch and officially launched Yammer to customers. Less than 4 years later, Yammer appears close to a $1.4 billion exit and purchase by Microsoft.

In this video captured via Ustream, Sacks explained how he came up with the idea:

“I’m David Sacks, and I’m the CEO of a company called Geni doing a startup with about 30 employees. And we needed to find a way to stay connected as a company. And we looked for something like an enterprise version of Twitter because that would have been ideal, and there was nothing out there that really did that. So we decided to build it ourselves as an internal productivity tool.”

Yammer was a hit from the start. In its debut post on TechCrunch, Erick Schonfeld wrote how Yammer was a private Twitter for employees of a company but “unlike Twitter, Yammer actually has a business model.” One of the panel’s judges, Salesforce CEO Marc Benioff said “I really like this company the best. The name is not very corporate. It reminded me of what I’m having for Thanksgiving. Maybe you could use a Yam for a logo.” It’s a bit ironic that the Microsoft corporate logo might wind up now on the product.

In the demo, Sacks talks about certain features as being just like FriendFeed. There was no mention comparing it to Facebook.

Reading the comments in the original post is pretty entertaining. One wrote:

I somehow doubt a genuine Yammer stream would look anywhere as productive as their demo. In the real world, it probably be nothing but “Where we should go for lunch?” and “Who jammed the printer?”

Companies might end up “claiming their networks” just to shut the stupid things off so that employees get back to work.

Another asked “What company in its right mind is going to let its employees waste time and share company secrets with a third party web site?”

Yammer beat out all the other TC50 companies to take top prize and a $50,000 check at the conference.

While TechCrunch today has a love-hate relationship with the Yammer product, and they work on a different floor of our building, I’m hoping if they are acquired, Microsoft will use some of its decades old technology to get Yammer to auto-update properly. And Yammer won’t require Microsoft’s famous daily patch updates.


Zynga And CBS Are Working To Bring Draw Something To Primetime TV

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So you wondered how Zynga was gonna make money off its $210 million acquisition of OMGPOP? How about this: Hit game title Draw Something will soon be at the center of a new primetime game show, according to a report by Variety. The show’s pilot, which was picked up by CBS after an apparent bidding war, will be produced by Sony Pictures Television, Ryan Seacrest Productions, and Embassy Row.

The pilot concept will reportedly pit multiple celebrities and users against each other in front of a studio audience, translating a game most people play in their spare time while commuting or before bed into a hilarious new game show. Viewers at home will also be able to play along with the folks on TV, according to Variety.

Draw Something was the key piece of Zynga’s acquisition of OMGPOP earlier this year. But traffic has plummeted ever since the deal closed, leading some to question the wisdom of Zynga buying at what seems to be the game’s peak.

Putting Draw Something on TV, and letting users interact with the on-air players, is one way to resurrect interest in the game. That will also bring a social element to the TV show, and could help boost ratings as users interact with the program on their mobile phones and tablets.

Interestingly, CBS’ choice of shows — and the stars that appear on the network — suggest a strong affinity toward Silicon Valley. It picked up ill-fated comedy $#!% My Dad Says in 2010. And it is airing a show called Friend Me, which apparently is about a couple of friends who work for a tech company. And how could we forget about the choice of Hollywood star and Valley investor Ashton Kutcher to replace Charlie Sheen on Two And A Half Men — a role which Kutcher used to promote various investments with startup stickers on his on-screen laptop.

Anyway, while the network has signed up for the pilot, it’s not clear how soon the show would arrive on air. Variety notes that CBS has a full fall lineup, although the game show could find its way to primetime mid-season if the network has some cancellations.


EBook Revenues Beat Hardcovers For The First Time

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The Association of American Publishers released a report today that shows that ebooks have beaten hardcover revenues for the first time. Ebook revenues topped out at $282.3 million YTD while hardcovers hit $229.6. Almost exactly a year ago the tables were turned with ebooks hitting $220 million and hardcovers brushing past $335 million.

The only growth in hardcovers is in the young adult/children’s category where hardcover revenue rose to $187.7 million and children’s ebooks rose to $64.3 million, up from $3.9 million in 2011.

In short, ebooks are winning.

While Children’s/Young Adult physical format Hardcover and Paperback both saw strong double-digit growth (68.9% and 61.9% respectively), AAP’s first monthly data on Children’s/YA eBooks showed a massive +475.1% increase from 2011 to 2012. Some publishers have attributed this to the availability of more options for devices aimed at those demographics as well as a number of popular new releases.

The AAP surveyed 1,149 publishers to gather their data and found that total trade revenue rose 27.1% over the past year. Considering most of those sales were ebooks, it’s clear that the old adage of the medium being the message is lost on most book buyers. In fact, the medium is clearly immaterial when it comes to long form fiction and non-fiction.

Given that Ikea is even reducing the size of its shelves to reflect the lack of interest in printed books, you’d better stock up now before this stuff goes the way of vinyl, 8-tracks, and the merkin.

via Galleycat


Hardware Accessory Maker PCH International Acquires Design-Centric Lime Lab

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You may have never heard of PCH International. But this Irish company makes packaging and accessories for some of the most iconic hardware products in the world. Nudge, nudge. Wink, wink! They make cases, chargers, docks and earphones, among other accessories. They also create those whizz-bang unboxing experiences for many of the world’s best-known hardware makers, but they can’t disclose who their clients are.

Now the company just picked up Silicon Valley design consultancy Lime Lab to bolster its product development know-how. Lime Lab was co-founded by former Ideo director Andre Yousefi and former Design Within Reach director and Apple manager Kurt Dammermann. The price wasn’t disclosed.

“We were looking for high caliber people,” says PCH’s chief executive Liam Casey. “Andre and Kurt have great backgrounds, having worked at Apple and Astro Gaming. This will give us a great base to start with here in the Valley.”

PCH will turn it into a full R&D lab that has rapid photo printers, a soft goods lab and incubator rooms for startups. The company will open 15 new jobs in San Francisco by year-end and plans to double that by next year.

“They’ll be working on prototyping products and early-stage design and engineering,” Casey says.

PCH has raised at least $77 million from Lightspeed Venture Partners, Norwest and more. Oh yeah, and PCH has 1,300 employees and disclosed that it had $410 million in revenue in 2010.


Carat: The Brilliant App That Increases Your Battery Life By Showing What Other Apps To Kill

Carat Battery Life

“Kill Pandora – Expected Battery Life Improvement: 1 hour 50 minutes” This is what you’ll learn from Carat, an incredibly useful free new iOS and Android app that’s the first to give you personalized mobile battery life-saving recommendations.

Carat quietly takes measurements from you device, does some math, combines it with other people’s anonymized data, and sends back tips on if you should update your OS, kill or restart apps, and how many more minutes of tablet or phone fiddling you’ll gain.

As battery tech is expected to improve slowly, some say increasing life just 5% a year, and as we get faster processors, more powerful apps, and brighter screens, everyone could use a Carat in their pocket.

The guys that built Carat? They’re not joking around. They’re a team of top-notch M.S. and Ph.D scientists from the UC Berkeley electrical engineering and computer science department’s  Algorithms, Machines, and People Laboratory (AMP Lab). Carat wasn’t built to make money. It’s the consumer product of cutting-edge battery science and a way for the team to collect more anonymous, privacy-respectful data for research that could make all our devices last longer.

Carat’s recommendations break down into killing off bugs and hogs. These usually aren’t “bad” apps Energy bugs are apps that are sapping a lot more power from you than everyone else because they’re probably malfunctioning, so Carat tells you to restart or re-download them. For example, a notes app that uses little power for 95% of users, but it’s accidentally activating your GPS over and over.

Hogs are apps that just naturally use of ton of power or needlessly run in the background, like streaming music apps. Carat reminds you to shut them down, which is especially useful when you get that 20% battery remaining notification half-way through the day and you’d do anything to still be able to get calls and texts rather than have your phone die.

You can click through suggestions on the Actions for instructions on exactly how to fix your problems. You can also check out the My Device tab to see your average battery life, and a score for how it stacks up against other users.

Some things Carat has discovered:

  • In an initial test with just 100 users, it found 35 apps with energy bugs proving how badly users and developers need Carat’s data.
  • Carat has since found thousands of instances of these energy bugs on devices in the wild
  • Skype, Yelp, and Pandora are some of the most popular energy hogs. They’re not necessarily inefficient, they just require more power than most apps and might be the best to temporarily kill off.

Adam Oliner, the project leader for Carat who’s a Stanford CS PhD with degrees in math, CS, and EE from MIT, tells me his app is a big leap forward because other battery life recommendation apps make very unscientific, generic suggestions based only on your data, like “shut down all your apps” or “dim your screen”. Gee, thanks Captain Obvious. Others require you to have jailbroken your phone, go through a lengthy installation process, or even suck a lot of energy themselves.

But Carat’s philosophy is “deploy to the crowd, debug in the cloud” so it can empower everyone to easily collaborate for a more satisfying mobile experience. “Carat uses almost no energy, and the longer you use it, the better recommendations you get. The team even shares its bug data with developers of apps that exhibit them, so they can fix them.

With Carat, knowledge really is power. The app is available for download for iOS, and Android, as well as for tinkering on GitHub.


AOL’s Armstrong on Winning Proxy Battle: Time To “Maniacally Execute”

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AOL fended off activist shareholder Starboard Value today, as all of the company’s existing directors were re-elected to the board. All eight of them — Tim Armstrong, Richard Dalzell, Karen Dykstra, Alberto Ibargüen, Susan Lyne, Patricia Mitchell, Fredric Reynolds and James Stengel — are staying according to a preliminary vote count, while the three candidates Starboard suggested were not elected.

It’s a short-term victory for Armstrong, although he still faces the very formidable task of making AOL a sustainable business that can withstand the decline of subscription dial-up revenue. Shares fell 5.7 percent today to $25.55, giving the company a market capitalization of $2.4 billion.

We caught up with Armstrong after the call. “We have one of the most public company strategies in the world,” he said. “Investors knew what they were investing in. They saw us buying back a lot of shares, the patent transaction and the operational results.” AOL sold 800 patents to Microsoft for $1.1 billion in April.

How much time does this buy him? ”You know better than I do that in the Internet space, every second is a day,” he said. “We’re on a fast mission to be a growth company again.”

AOL’s dial-up revenue declined at a rate of 15 percent year-over-year to $182 million in the first quarter. Meanwhile, display advertising revenue — which is what the company is betting on — grew just 5 percent year-over-year to $330.1 million.

The timeframe for AOL’s controversial local media effort, Patch.com, remains the same. They’re looking at profitability by the end of 2013. AOL filed a fairly long slide deck defending the unit last week (excerpted below). Groupon, Google, Yelp and others are all gunning for the same local business advertising market with varying success.

As for the premium brands like The Huffington Post, Armstrong says he’s going to continue investing in them. He’s not planning any bigger acquisitions in the near-term. ”We don’t have any plans for any major acquisitions. As for the acquisitions that we’ve done over the last two years, we’re very interested in growing those and putting resources into them.”

“We went from the worst merger in history to where we are today,” he said. “We have a lot of long-term thinkers behind us and we’re going to maniacally execute for those shareholders.”


iPad Sees Small Drop, Nook Tops Kindle Fire In New Tablet Traffic Rankings

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Web traffic from the Apple iPad saw a slight drop in early June, according to new data from the Chitika Ad network, which analyzed a sample containing hundreds of millions of impressions to arrive at its conclusions. In May, the iPad had accounted for 94.64% of all tablet web traffic, the company previously reported. Today, the company says the iPad has dropped to a 91.07% share. However, the iPad still has a wide lead over its competition, so the change is fairly negligible. Among the non-iPad tablet devices, the top tablet was the Samsung Galaxy Tab, with a 1.77% share of traffic, for example.

Meanwhile, the Barnes & Noble Nook overtook the Kindle Fire in tablet traffic share, now accounting for 0.85% of tablet traffic versus the Kinde Fire’s 0.71%.

Analysts at Chitika speculate that B&N’s new advertising campaign and launch of the new Nook Simple Touch reader (the one with the glowlight) could have had an indirect impact on Nook sales, and that even though the Simple Touch doesn’t support web browsing itself, Nook has benefitted in an increase in brand familiarity via its Simple Touch ads. However, given that the time frame for the study (June 4th through 10th) is so minimal, it’s hard to read too much into these conclusions just now. Take them for what they are – a single source’s spot check on tablet traffic. It’s something that paints a better picture over time, than it does in the moment.

That said, neither the Nook or Kindle ranked in the top of the (non-iPad) charts this go around. Instead, the leaderboard began with the Galaxy tablet, followed by the Acer Iconica, Toshiba Thrive, then Asus Transformer before reaching the Nook. The Motorola Xoom was also ahead of the Kindle Fire, the latter which only managed to beat out the BlackBerry PlayBook, HP TouchPad and the Sony Tablet 5.

I particularly like how Chitika has to leave the iPad out of its chart visualization altogether (pictured above), so we can even spot the differences between all these other tablets.


Is This Mysterious Microsoft Press Conference About The Yammer Acquisition? (Update: Probably Not)

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Wow, Microsoft just got exciting again! We’re hearing (like everybody else) that the company is in “serious” talks to acquire enterprise social network and our 410 Townsend Street neighbor Yammer — for a reported $1 billion.

I’ve independently heard from another source that Salesforce was also in acquisition talks with Yammer, but at this point I think everyone’s just constantly talking to everyone about buying everyone so that’s not surprising.  But the Microsoft rumors are legit I’m hearing, though it’s unclear if a deal has been reached (Bloomberg is reporting that might happen as soon as tomorrow).

And as we’re all chattering about this at the TechCrunch office cooler, and yes, on Yammer, we get the following email telling us to head down to LA for a “major” Microsoft announcement. I can’t recall Microsoft ever being so mysterious … Then again, it doesn’t really have a history of announcing acquisitions like this (Skype was a press release, and that buy was billions of dollars).

One interesting tidbit that gives the “Yammer Acquisition Announcement” theory more credence: Yammer CEO David Sacks is having his big Snoop Dogg/French 18th Century costume 40th birthday bash (I know) in LA this weekend. So…. he’s already down there.

Update: Ina Fried is reporting that it’s actually about some tablet thing. God, so boring.

Full press invite below.

>> ———- Forwarded message ———-
>> From: MSEVENT
>> Date: Thu, Jun 14, 2012 at 12:01 PM
>> Subject: INVITATION – Microsoft Announcement & Event – Monday, June 18th
>> To: MSEVENT
>>Ill
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>> You are invited to an exclusive Microsoft media event in Los Angeles, California on Monday, June 18th. Doors open at 3:30 PM.
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>> This is an invitation only event and you are allowed to register up to one additional guest from your publication. All guests must be registered by replying below.
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>> Additional information regarding the specific venue, address and parking information will be sent via e-mail to registered attendees on Monday morning, June 18th, no later than 10:00 AM.
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>> This is a non-transferrable invitation, however, if you would like to send your local colleague in your place, please submit that name and it will be reviewed. If you would like to bring a photographer please register that person as your additional guest. Please note – still photography and video will be limited.
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>> All attendees must be registered with exact names and done so in advance, no later than Sunday, June 17th at 10:00 AM, Pacific. You will be responsible for securing your travel and lodging.
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>> Registration will be first come, first served.
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>> To confirm your registration and to register a guest, please respond to the below e-mail address with name, phone number, e-mail address and outlet affiliation.
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>> This will be a major Microsoft announcement – you will not want to miss it.