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1.0 Minnesota Business and Technology Forums The Minnesota Business and Technology Forums are useful for many purposes. In order to view and post information on the web forums, you need to register by creating an account. There are many reasons to create a free account. In order to fully participate as a "NetSudser" in the Minnesota hightech community, you should create an account and use it to full advantage. The Minnesota Business and Technology Forums - http://www.masvf.com/forums/index.php Upcoming Events - http://www.masvf.com/forums/forumdisplay.php?f=4 HighTech Companies - http://www.masvf.com/forums/forumdisplay.php?f=17 People On The Move - http://www.masvf.com/forums/forumdisplay.php?f=12 Press Releases - http://www.masvf.com/forums/forumdisplay.php?f=13 Why email only to your small email list of associates when you can post this information on Minnesota Business and Technology Forums and have access to 5500+ NetSudsers. 2.0 Jobs in the "com and .com" Market Click on http://www.masvf.com/forums/forumdisplay.php?f=28 for a list of available HighTech Jobs in Minnesota that have been posted at the Minnesota Business & Technology Forums. We encourage you to post available jobs for hightech professionals in Minnesota. You must identify which company you represent. If your company is already listed, please do not create a duplicate thread. Instead, post to the same thread. If you are a recruiter, you must identify yourself as such.
3.0 Calendar of Events The calendar for hightech and medtech events in Minnesota is scattered all over in print, email and online publications. Up until now, there has been no single definitive calendar. NetSuds and MedSuds has created the first and only online calendar for all hightech, medtech, biotech and life science events in Minnesota. Calendar of Events - http://www.masvf.com/forums/calendar.php? You can use the online calendar to post your organization's events. We will even allow the posting of events which compete with NetSuds and MedSuds events. The calendars are free to use for both tracking events and for posting your own events. Non-Minnesota companies conducting events in Minnesota will not be allowed to post events for free, even if they are teaming up with a Minnesota company. Non-Minnesota companies or organizations should contact matt@netsuds.com to discuss the fees associated with posting such events.
4.0 Tidbits
Visiting
http://www.masvf.com/forums/index.php
allows one to visit the Minnesota Business and Technology Forums and observe
what is available. However, in order to become a member of the community,
one must register. Registration is simple and has several advantages.
First, you can search for other members in the community using names, IDs and
keywords related to industries. Second, you can identify yourself to the
community through the use of keywords and interests. Third, you can
subscribe to certain "threads" and receive email when these threads experience
activity. You may also unsubscribe from any thread at any time.
Fourth, you can post to the Forums. This is extremely powerful.
Members can post their opinions, information and engage in online discussions.
Jobs can be posted. Events can be posted.
NetSuds encourages members to choose
usernames which readily identify one's self to the community. For example,
the username "johnsmith" identifies the member as John Smith (or at least we
hope!). Use of IDs to hide one's identity is not encouraged in these
Forums. Remember, this is a professional Web Forum and not some
adolescent, rumor-spreading chatroom. Even after you register you can alter your user profile in the "CP" section
along the top of the Forum webpage. 4.2 Water, Sewer,
Internet - Spotting A Trend? More and more city governments are exploring offering Internet service to
their citizens. In many ways, Chaska's wireless service broke new ground.
Prior to that, Apple Valley's FTTH project was way ahead of its time. The
following article appeared in the Fargo Forum on January 2, 2005. Municipal Internet growing ... by Dave Roepke The Forum - 01/02/2005 Brad Mayer can tell when a television network or major newspaper does a piece on the budding trend of cities doubling as Internet providers. His phone rings off the hook the next day. “You can’t talk to everyone, but we try to accommodate most people,” said Mayer, who manages the city-run wireless Internet network in Chaska, Minn., a Twin Cities suburb of about 18,000 people. Since the network went online in September, Mayer has fielded calls from about 75 groups interested in the wireless service offered in Chaska, one of the first cities in the nation to build a mobile wireless network for public use. Some of those calls have come from Moorhead Public Service, the city’s public utility, which unveiled in October a proposal to offer wireless Internet service citywide to residents for $23 a month and businesses for $29. If the utility approves the ambitious proposal, it will be walking a relatively new but not uncharted path. A growing number of cities nationwide, about 20 by one expert’s estimate, have built networks offering Internet access to residents. Proponents argue the increasing pervasiveness of the Internet justifies cities’ efforts to improve access to what they call an essential service. “Five years ago, a lot of people could get by without Internet,” Mayer said “Today it’s become almost as important as electricity.” Critics say the trend is a troubling intrusion by local government into an already crowded industry. “As much as I believe in the technology business, I wouldn’t go so far as to call Internet an essential service,” said Dave Ekman of Multiband, a Fargo-based Internet provider. “So are groceries. Does that mean the government is going to start selling groceries and compete with Hornbacher’s?” Moorhead’s proposal is not a done deal. The City Council gave the $2.2 million project an implicit go-ahead in December when it unanimously passed an ordinance allowing the utility to sell Internet access. The utility board, however, has the final say. It hopes to vote on the $2.2 million project in February. WIRELESS JUMP Utility board President Ken Norman, the board’s self-described top critic of the plan, said he thinks the plan has a 50 percent chance of being approved. “Are we leaning in that direction? Yeah, we are, because we’ve tried to be a progressive utility,” Norman said. Moorhead’s municipal wireless initiative is indicative of a larger trend, said Esme Vos, founder of MuniWireless.com, a publication that covers municipal wireless networks. “The number of cities offering these networks has gone up dramatically,” she said. In a report published last summer, Vos listed 20 cities who built wireless networks for public use. In most cases, the city or the municipal utility company also acts as the service provider. Vos said the report was not exhaustive, but she knows of no clearinghouse that tracks the number of city-built wireless networks. The increasing ubiquity of the Internet and the emergence of mesh wireless technology are probably driving the rising number of city networks, she said. A mesh network, which is the type being considered in Moorhead, deploys numerous radio transmitters over a wide area, allowing users to access the Internet anywhere in the network. A fixed wireless network, which has been available for many years, requires users to have a permanent antenna with a line-of-sight to a tower transmitting signals. This limits access to where the antennas are set up. Most systems have been built in cities similar in size or smaller than Mo orhead, where the cost of building a citywide network is not prohibitive and other Internet options have been limited, Vos said. “Governments don’t get into it because it’s a hobby. They usually do it because something’s missing,” she said. That is what happened in Buffalo, Minn., a town of about 10,000 between St. Cloud and the Twin Cities, said City Administrator Merton Auger. Buffalo built a $1.2 million fixed-wireless network in 2002 after begging providers like Qwest to bring in broadband access. Access to the Internet that was always on and high-speed was direly absent in town, Auger said. Banks wanted to use it to communicate with branch offices. An implement dealer needed it to order parts. “We started our own system because nobody else was doing it,” he said. In Chaska, the other Minnesota city included in the MuniWireless.com report, the city has been selling Internet to businesses for six years , Mayer said. “We pride ourselves in being a progressive city. We do a lot of things other cities might sit back and hem and haw about,” he said. In April, Chaska officials began studying a mesh network to sell access to residential customers, Mayer said. After some initial hiccups, the network was up and running by September, he said. Projections called for picking up 200 customers a month. With utility bill inserts being the only advertising, Chaska.net attracted 1,500 users almost immediately. The service now has 2,000 users and will pay off in two years the $650,000 it cost to build the network, Mayer said. “We initially figured if we ever got to 2,000 we’d be doing well,” he said. The efforts in other cities, especially Chaska, will be helpful to officials in Moorhead as they consider proceeding with the wireless plan. “It’s always nice to have a beta test site, if you will,” Bill Sc hwandt, the utility’s general manager, said of Chaska. “Chaska has been absolutely invaluable to us,” Norman said. For instance, Chaska had some initial problems when it started because it hadn’t fully tested its equipment before it started selling subscriptions, Norman said. Moorhead Public Service officials will make sure not to make the same mistake if they go ahead with the wireless service, he said. “We want to make sure everything’s right before we get too far down the pike,” he said. Chaska has been so instrumental to the utility’s plans that two separate contingents have toured Chaska.net, one comprised of utility officials and another of City Council members, business leaders and others. It was a November trip to Chaska that convinced Councilman John Rowell to back the wireless proposal. During the first two meetings concerning the plan, Rowell was the most skeptical council member. He peppered utility officials with questions about market share projections, which require the utility to eventually capture 40 percent of homes and 28 percent of businesses just to break even. He questioned whether one customer service agent can handle service calls and if the $18,000 annual budget for marketing and promotions was large enough. Seeing Chaska’s service thriving using similar plans made Rowell comfortable with the proposal. “I’m the kind of guy who actually has to kick the tires,” he said. There are still critics, both nationally and locally. “Sometimes when we get impatient for things, we make rash decisions that we later regret, like putting taxpayers on the hook for government-owned broadband networks,” wrote Tom Giovanetti, president of the Institute for Policy Innovation in the Oct. 30 issue of the Chicago Tribune. Ekman of Multiband said he has philosophical objections to the proposal . “I don’t like the idea of a municipality competing against a private business when those services are already being offered by the private sector,” he said. Scott Geston, general manager of CableOne, said the utility’s plan is flawed, citing many of the objections initially raised by Rowell. He also questioned the ability of a government entity to adapt in the fast-changing Internet industry. Like Ekman, he also doubts Internet access is essential. “Internet service is a luxury and probably will remain so for a long time,” he said. Unlike Geston, Ekman thinks the utility’s plan will work. “I think it could work, and it would be a great offering for the consumer,” he said. Readers can reach Forum reporter Dave Roepke at (701) 241-5535 4.3 VoIP Booming Among SOHOs Vonage continues to defy predictions as it doubled its customer base to 400,000 in the first week of 2005. Read the press release below. NetSuds has been using Vonage for business for over 3 years and was one of the earliest adopters of VoIP; having used the Enventis Telecom service starting 4 years ago. Biggest Broadband Telephony Provider Netted More than 300,000 Lines in 2004
Edison, NJ, January 5, 2005 – Vonage, the leading broadband telephony provider, today announced it has exceeded 400,000 total lines on its network, doubling its subscriber base in less than six months since reaching the 200,000 line mark. The company ended 2004 with more than 390,000 lines in service having added 115,000 lines in Q4 2004 alone.
“Again, Vonage has set the benchmark, proving its value proposition to a marketplace starved for full-featured, cost-effective alternatives to the incumbent local exchange carriers,” said Jeffrey A. Citron, chairman and CEO of Vonage Holdings Corporation. “Having added more than 300,000 lines in 2004, Vonage has once again illustrated its prowess in leading the transformation of the telecommunications industry.”
Using the latest technology, Vonage sets the standard for the new generation of phone service with residential and business calling plans.
About Vonage® Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. The fastest growing telephony company in North America, Vonage's service area encompasses more than 2000 active rate centers in over 150 global markets. Vonage is sold directly through www.vonage.com and retail partners such as Amazon.com, RadioShack, Best Buy, Circuit City, Staples, Fry’s Electronics and Office Depot. Wholesale partners such as EarthLink, ARMSTRONG®, Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own unique brands. With more than 400,000 lines in service, Vonage continues to add more than 30,000 lines per month to its network. Over 10 million calls per week are made using Vonage, the easy-to-use, feature-rich, flat rate phone service. Vonage is headquartered in Edison, New Jersey. For more information about Vonage's products and services, please visit www.vonage.com or call 1-VONAGE-HELP. Vonage® is a trademark of Vonage Holdings Corp. 4.4 Wisconsin Angel Network Governor Jim Doyle has announced the creation of the Wisconsin Angel Network. For details, open www.masvf.com/docs/WAN.pdf. 4.5 Wireless TV Networking
From EDN's Digital Den, January 19, 2005 The Digital Den
recently played host to one of the few shipping products that uses wireless
technology to boldly send video to televisions in areas of a home where no
wire has gone before. Although Belkin's PureAV RemoteTV system is impressive
for its simplicity and solid performance, it also underscores the work that
remains to be done before wireless technology becomes a standard
home-media-networking component. Full article: 4.6 UMA: Technology to Deliver Cellular Over Wi-Fi
From EDN's Digital Den, January 19, 2005 As Wi-Fi networks
become ever more pervasive in homes and public spaces, all kinds of
companies are eyeing the hotspots as potential on-ramps to their services.
GSM cellular operators, for example, are moving ahead with a VoWLAN (voice
over wireless LAN) game plan that centers on a technology called UMA
(Unlicensed Mobile Access). Full article: 4.7 Beware
Wi-Fi's "Evil Twin" From the January 21 edition
of eWEEK's eNews & Views The Evil Twin is essentially a wireless version of a phishing scam--users
think they're connecting to a genuine hot spot but are actually connecting
to a malicious server, which can then extract information such as bank
details. Read about this new danger. 4.8 Comments on FireFox From the Small Business Pipeline, January 26, 2005
From the Editor: I
asked for your opinions on Firefox, and I certainly got them. Most readers
who wrote in were enthusiastic about the browser's features and security,
though several also continue to use Internet Explorer for those Web sites
and applications that don't work well (or at all) with Firefox. A few
readers, however, feel no love for Firefox -- or for me for encouraging its
use. Valerie Potter, Editor, Small Business Pipeline, vpottercmp@hotmail.com, www.SmallBizPipeline.com 4.9 Anti-SpyWare Tips and Secrets http://www.smallbizpipeline.com/howto/57703611
4.10 NetSudsers Author Book on Java & Open Source Minnesota NetSudsers Carl Albing and Michael Schwarz have collaborated to write a book entitled 'Java: Application Development on Linux" published by Prentice Hall PTR. Contact Carl if you'd like to review it. Check out the current reviews on Amazon.com. They got some front page review on slashdot just this past week. Both Carl and Mike are software consultants who also do in-house training. Fore more details, visit www.javalinuxbook.com. Contact Carl at either albing@comcast.net or 651.336.3950. 4.11 2005 MN VC Conference and MASVF Conference - May 9-11 Once a year, NetSuds and MedSuds hosts the Minnesota Venture Capital Conference. This year, we've added a seed stage conference entitled the Midwest Association of Seed & Venture Funds Conference. These conferences can be found on the web at www.mnvcc.com and www.masvfc.com. Registrations for both conferences are off to a great start. The list of investors for the VC Conference can be found at www.mnvcc.com/agenda/investorprofiles/2005.htm. The agendas are filling.
We are still soliciting and selecting start-up and mature private companies
for inclusion in to the VC Conference. Apply at
www.mnvcc.com/entrepreneurs/
today! Sponsorships are still for sale. Early-bird
registration ends February 28. 5.0 Email Advertising The NetSuds and MedSuds email lists reach 8500+. The NetSuds email lists are double-opt-in and concentrated on professionals in the communications, IT and Internet markets. The MedSuds email lists are double-opt-in and concentrated on professionals in the medtech, biotech and life sciences markets. So, rather than spend your advertising dollars on any other email lists in the Twin Cities, consider the NetSuds and MedSuds lists. Contact matt@netsuds.com or 612.605.5252. For current ad rates, visit www.netsuds.com/adrates.htm. 6.0 NetSuds CEO Roundtable - Next Roundtables starting in June 2005 NetSuds is opening up another group of CEO Roundtables in June 2005. If you are tech or medtech CEO and want to join us, (the first session is free), contact matt@netsuds.com. A synopsis of the CEO Roundtable can be found at www.netsuds.com/ceo/ It is repeated here as well. NetSuds CEO Roundtable Membership Only CEOs of tech and medtech companies are allowed to join the NetSuds CEO Roundtable. If you are a VP, CxO or President, you are not welcome unless you also hold the CEO title. Perhaps we will start a CFO, CTO or COO Roundtable but until then, we are only interested in the top dog, the CEO. If you are interested in becoming a member, contact matt@netsuds.com. Membership is not automatic. There must be an available spot open in the roundtable. You must have employees. Your company must be incorporated. Your company must be a tech (communications, IT, software, Internet) or medtech (medtech, biotech, life sciences) company. You must pay a yearly fee of $1800 in advance. You may not send substitutes to the Roundtable. Roles Unlike the days of knights, kings and Camelot, there is no king of the NetSuds CEO Roundtable; only a facilitator; Matt Noah, CEO of NetSuds.com, Inc. Knights are replaced by CEOs and the table won't be quite round. Schedule The Roundtable will meet 10 times per calendar year on the last Tuesday of every month. Each meeting lasts 2.0 hours starting at 7 am. A facility convenient to the majority of Roundtable members is used. A continental breakfast is served.
Purpose CEOs need resources to assist them in executing their duties and leading their companies. Boards of Directors and upper management are not always the best or most independent resources upon which to draw. The CEO Roundtable exists to provide CEOs with an independent resource of wisdom and shared experience. Your key 'take-aways' from the Roundtable will be accelerated learning - so as to avoid common and uncommon pitfalls -, an expanded network of advisors and colleagues and tools to enhance the productivity and value of your enterprise. Content First, networking among the CEO members of a Roundtable is the best and richest content. Second, the Roundtable facilitator will schedule subject matter experts of interest to the CEOs. Examples include intellectual property, branding, sales, engineering, marketing, finance, compensation, human resources, M&A, etc. Format Meetings will consist primarily of 2 elements. First, "content" will be presented and discussed. Second, "discussion" of common problems and solutions will take place. The facilitator will lead both elements or assign elements to certain CEOs. Confidentiality Roundtable meetings are completely confidential. Nothing said in a roundtable discussion, short of illegal activity, leaves the meeting. This allows each CEO to feel comfortable discussing issues and subjects he may not feel comfortable speaking about with others. 7.0 Weblogs & RSS: How To Incorporate In To Your PR Strategy by NetSudser Mike Spataro, Weber Shandwick Web Relations, 617.520.7241, mspataro@webershandwick.com Web logs – better known as blogs -- are editorial-toned Web sites written by one person that allow the author the freedom to express uninhibited opinions in a public forum. Typically updated daily, blogs often reflect the personality of the author and are usually written in the style of a journal or diary. Topics range from politics to gardening, from serious social commentary to stand-up comedy. It’s unlikely you could find anything that’s NOT covered in a blog. And just as the topics vary, so do the styles. Some blogs stick to one topic; other bloggers write about a different topic every day with nothing tying the topics together. While most Web logs consist primarily of journal entries listed in reverse chronological order -- each with a time stamp -- they also include links to relevant articles, Web sites and other Web logs that the author recommends. This system of interconnection between the thousands of Web logs on the Internet is often referred to as the “blogosphere.” Today, the blogosphere is made up of several million blogs and number is increasing daily. Why are blogs gaining popularity? For the past several years, personal blogs have been gaining wide popularity and readership. People like to be heard and the Internet allows them to be. Free blogging software also allows anyone -- regardless of their technical skill level -- to see their words online seconds after typing them. Blogs also sometimes include feedback mechanisms allowing readers to post their thoughts and comments. Even if their blog does not include a channel for providing comments, authors will often respond to emails they have received from their readers, or to statements made on other sites or blogs. In this way, blogs have become a mechanism for not only the dissemination of information, but also for stimulating discussion and generating grassroots support. Bloggers have developed a very loyal community and work hard to protect and promote one another. One blog may contain hundreds of links to other blogs, for example. Blogs can also be accessed and updated on the fly from most wireless devices, making them simple to keep fresh with new content and even images. As communicators, we must be aware of how this “new media” channel can help or harm our PR efforts, just like the mainstream news media. Blogs represent a new communications channel and offer companies a new method to communicate messages and improve internal and external communications.
How to integrate blogs into your PR strategy Blogs can impact a company’s public relations strategy in a variety of different ways: 1) A blog may not be read by millions, but its influence on mainstream media can be extensive, according to respected journalists like Dan Gillmor, a technology columnist in Silicon Valley. “Any reporter with a brain is reading blogs. No matter what the beat, you’re missing something if you’re not reading blogs and grass-level journalism. Journalists are actually getting a lot of scoops because it’s not a traditional channel.” Journalists like Dan are not only following blogs for story ideas and trends, they are also writing their own blogs and distributing information directly to consumers which does not appear in their primary, traditional publications. These media bloggers are often overlooked by PR pros as a channel for story ideas. 2) Blogs are also among the best ways today for companies to speak directly to consumers -- an increasingly important strategy in this age of “participatory citizen journalism.” In fact, one recent survey found that many consumers who regularly read blogs now believe what they read in a blog as much or more than what they read in their local newspaper or hear on television. 3) Corporate Web logs are also starting to have an impact on a company’s PR strategy. These are employees who blog about their particular areas of expertise. Web logs can be used to demonstrate “thought leadership” and industry expertise on a particular subject or field. Web logs can be tremendous buzz generators for a company and in today’s competitive environment, brands can’t afford to turn down any opportunity to create a greater sense of connection with their target audiences. Many forward-thinking companies encourage their employees to interact with customers via their blogs, and some have implemented corporate blogging policies to be sure employees know what is permissible to say and do online on behalf of their organizations. At Microsoft, where more than 700 employees have personal blogs, the company does not enforce formal guidelines, but does loosely monitor the sites. In fact, Microsoft recently hosted an employee forum to discuss corporate blogging. The company also suggests that employees make it clear, when appropriate, that the opinions they state in their blogs are their own, not those of the company. Even C-level executives have joined the blogging community, establishing their own Web logs to share their insight and vision with employees and the broader Internet community. An executive-authored blog is an excellent way to share thoughts, ideas and perspectives from an organization’s leadership with the media, customers and employees, in a tone that is personal, informal and engaging. Tips for working with bloggers Be extremely careful when approaching blogs for coverage. Bloggers aren’t “pitched” in a traditional sense, though many of the same rules of mainstream media relations do apply to bloggers:
Remember, many bloggers took up blogging to AVOID
public relations-generated stories and other corporate sponsored fodder, so
the battle is definitely uphill. Only honest, legitimate and knowledgeable
outreach should be attempted -- when in doubt, don’t pitch.
Blogs are not the place for blind CC:ing the world with your pitch -- it’s not simply a matter of your pitch being ignored, it’s the possibility of extremely negative public exposure which could come as a result. While an editor at USA Today relies upon PR pros to feed him or her information, a blogger, however, is different; there are:
A blog’s content is pure. Any defamation of this purity subverts the intent of the blog’s existence; any act perceived to be a threat to this purity will be ignored, or worse, publicly scorned. However, a recent poll of 610 bloggers found 74 percent of bloggers are open to receiving information from companies and organizations, though 91 percent have never been approached. As with any PR effort, understand you can't control what bloggers say. Their brutal honesty is what appeals to their readers, after all. The blogging community at large is also very sensitive to “astroturfing” – the practice of cooking up a grassroots campaign or story ideas where none exists. This could cause a major backlash in the blogging community, including a call to boycott your products or services. So beware of “generated” news and only pitch if you have a newsworthy item. RSS – Really Simple Syndication RSS is an acronym for Really Simple Syndication. In a nutshell, it is a quick and easy way for anyone to create "syndicated content" in an efficient, spam-proof way to notify someone else, such as a journalist, about new information from your organization – news; commentary; reports, press releases; experts available to comment on current hot topics, etc. RSS is another reason Web logs have grown in popularity because virtually every new blog contains a corresponding RSS feed. The easiest way to experience RSS is through an RSS "newsreader" or "aggregator" for your desktop computer. This will fetch and organize recent content and provide a simple interface to read it. When information published on a Web site is made available in RSS format, a reporter or anyone can take a simple code and with RSS software automatically begin receiving that information at their desktop in real-time – bypassing e-mail. RSS is poised to grow even more popular when RSS newsreader software is integrated in the next generation of Web browsers – meaning no special, separate software will be required to receive feeds from anyone who publishes information on the Web. RSS has incredible implications for corporate and PR communicators. Many forward-thinking marketers are already utilizing RSS feeds to increase their awareness with the press. For instance, Cisco provides its corporate press room content in RSS, allowing busy reporters to easily bypass traditional press release distribution services and e-mail pitches to receive news directly from the company.
Some journalists are already warning that they will soon prohibit PR professionals from e-mailing pitch notes and press releases in favor of subscribing to RSS feeds instead. If your company doesn’t provide RSS-friendly content, you’ll soon be missing one of the best ways to distribute information to the press, consumers or your business customers.
Many journalists are already subscribing to dozens of RSS feeds from companies like Cisco, Apple, and Amazon, as well as 3rd party blogs, as an easy way to keep up with what’s important to them. This gives them a simple, time-saving way to peruse in minutes headlines and summaries of the latest information and trends from many online resources. What should you do? Weber Shandwick Web Relations (WSWR) has in-depth knowledge of how to extend a PR campaign into the world of blogs, RSS, and also the emerging world of wireless cell phone communications. We’ve built a comprehensive database of the most popular blogs broken down by industry category and contact and how they like to interact with PR pros. WSWR has been building relationships with influential bloggers for several years and understands the most effective ways to work with this “new media” segment to communicate messages. While the risks of pitching blogs may be greater than the risks of pitching traditional media, the payoff can be significant. With a little knowledge about which blogs are influential, and how to go about working with them, a well-thought-out “blog-relations” campaign can be an effective communications strategy for your company. 8.0 Outsourcing: What even your best friend won't tell you - Part ThreeBy NetSudser Charlie Demerjian, charlie@stonearch.net
WHEN A MACHINE is fixed properly, the customer is overjoyed, and
tells his friends about the wonderful service he got from your company. They
are likely to buy again. If it took an hour instead of five minutes, at $15
an hour, it cost you $13.75 more to fix things the right way, and you will
make that up when the customer buys their next computer in a few years.
The people who were told to put in the restore disks and follow the prompts end up with a "like new" computer, with new defined as none of the family pictures or half completed PhD theses on them that were there before. If you don’t count the follow up calls that first plead with you to find the lost files, then demand to talk to a manager while threatening lawsuits, you saved $13.75! The follow-ups will cost more, but you will still be less than the $15 it would have cost to fix things in the first place. The next time they purchase a new computer, that $13.75 will go to your competition. I guarantee that, my money did. The problem is that when you outsource like this it completely removes the incentive to fix problems. It turns a process that is about support and fixing things to a numerical assembly line. Worse yet, the people who are in touch with your customer have absolutely no incentive to fix things. Their goals are not your goals, and that is deadly. Worse yet, if the outsourcing company has met their numeric goals, they get paid. Customer satisfaction? What’s that? We hit the numbers. If a customer is pissed off, they don’t steer their dollars away from the support company next time, 99 out of 100 of them couldn’t tell you the name of the outsourcer anyway. They will steer their purchase away from the parent company, as well as directing their wrath at it, all they have to do is look at the computer on their desk to know who to hate. The outsourcer laughs all the way to the bank, the employees go home dejected and poor, and the only ones who win are the corporate bigwigs who increase their margins a little. This quarter, next quarter too, but the next purchasing cycle is a different story. By then, the current management is on that little sunny island being served drinks with little umbrellas in them. This disconnect is deadly, and no one seems to care. Corporations are blinded by the short term, and when they have dollar bills waved in front of them, they jump. Pavlov would be really impressed, and the current lack of vision in the Fortune 500 CxO hierarchy will make a fascinating case study some day. Sadly, it will not be about success. The lesson here is that if you are going to offer support, you damn well better mean it. You don’t do that by fielding a veritable army of people who at best don’t care. The goals of an outsourced workforce are never the same as yours. They simply do not care if you do well, they care that they do well, not you. If you write a contract that aligns these goals, you can at best meet in the middle. You can drive prices down any way you can, usually by cutting corners. The outsourcer will always cut corners so they can bid lower, and possibly increase profit margins. This is the same thing that you are trying to do when you outsource. Because all the repercussions for failure lie on the outsourcee, not the outsourcer, it is almost a certainty that the company who thought up this brilliant scheme will lose out. Having staff that care, and goals aligned with yours is the only way to be successful. You can’t do this with an outsourced staff. If you are making screws, OK, you can test them and see that they meet numeric targets, and will hold the plane wing on securely. Tech support is much more nebulous. Overall, both general problems with outsourcing stem from a singular lack of corporate vision. Modern large corporations are not only geared to pleasing sheep with a short term outlook, but they also punish those with a grander vision. Companies jumping on the outsourcing bandwagon will wither and die in the long term, and the people who should pay the price never will. The system is set up to reward them. Stockholders and employees, the people who do end up suffering, don’t have a say. Worse yet, they will not stand up and question long term harm because if they do, they get shouted down by people blinded by short term profits. It is the responsibility of a CEO and a company’s board to avoid these pitfalls, but almost none do. To do things right, a company should avoid outsourcing to save a few dollars here and there. Think long term, spend on R&D, keep customers happy, and do the right thing for the right reasons, not for cost, and it will come back to you. The example I was going to use in this column was Sun, but I think it proved me wrong by falling from the clear win category. In the middle is a company like Dell, a ruthless cost cutter if there ever was one. It was one of the first outsourcers of support. It didn’t work out all that well. It realised it wasn’t working out as well as it should have, and it was getting complaints. Dell did the right thing, and admitted it screwed up, publicly, and took things back from the outsourcers. It is far too early to tell what the result is, but I think customers will be happier in few months. If things continue like they are, Dell will most likely be the "good" case study next time. And so to HP. While it won’t officially give out the numbers, those that are available show that hold times are way up, customer satisfaction is way down, and the outsourcing is not saving anywhere near what it should. Customers are running to the hills, I know, I see them poking their heads into my big blue cave. The R&D cuts I hear about won’t help things a few quarters down the road either. In a few years, this will be the case study on how not to do things. Those companies that want to be around for the long term will at best judiciously use outsourcing because it has its purpose and its place. Short-term jobs, things that are truly tangential to your business, and thing that customers don’t directly see. If you can guarantee that the outsourcer wants the same thing that you do, by all means, do it. If they don’t, you are at best looking at a short-term gain with a painful long-term loss. Outsourcing is not a panacea, or even a sane tool to use for most situations. There is almost always a good reason why processes developed in house, and kicking them to the proverbial curb is not a good idea. If done improperly, you end up with a dejected work force, a hollow company, and a highly mortgaged future. Is there an upside after the next 180 days? Part One was published in December. Part Two was published in January. 9.0 Taking A Bite Out of Spam From InformationWeek, January 11, 2005.
Bob Evans is editorial director of
InformationWeek and TechWeb. E-mail him at
bevans@cmp.com, or tell him what you think of his
column in his
discussion forum.
And from a handful of the letters I received, it's also perfectly clear that some readers believe I don't know the difference between spam and filet mignon. If that's all they had to say, I congratulated them on their insightfulness and filed the letters appropriately. However, three writers in particular delivered not only vigorous woodsheddings but also some terrific resources and connections for the anti-spam warriors so many of you are becoming. So I'd like to share with you the important resources those good folks offered, as well as—in the interest of full disclosure, healing, and penance—some of the verbal thrashings. Here we go. I'd like to ease into it a bit by starting with comments from a colleague—heck, a longtime friend!—who, although speaking softly, carried a big stick, and that stick bore this message in big fat letters: THE IDEAS ARE USELESS! Mitch Wagner, editor of the Security Pipeline site from InformationWeek sibling TechWeb wrote an excellent response to my Dec. 20 column, and this excerpt is typical: "Like all the usual proposed spam solutions, InformationWeek's readers' ideas are great. But, alas, they won't work." For example, regarding the idea proposed by numerous readers that an ISP-imposed "tax" on each E-mail message sent would eliminate spam, Wagner says, "... the problem with all proposals like Mr. Lepant's, requiring that Internet service providers charge an E-mail tax, is that many ISPs are unscrupulous. They're spam-friendly. They won't charge the high rates for E-mail, and [thus] they'll rake in even more dirty profits than they did before." And Wagner has this to say about readers' suggestions that federal-government legislation will do the trick: "The problem with that solution is that it assumes the federal government actually cares about spam. "In fact, the government just doesn't care. Not a bit. Congress passed the Can-Spam Act last year, with its sponsors claiming that it would put a stop to spam. Now it's a year later, and the Can-Spam Act has had very little effect, and the effect it has had has been bad—Can-Spam canceled out tougher state laws that might have actually worked. If Congress had simply done nothing, it would have been bad enough. But the Can-Spam Act is worse than nothing, it's an insult to the Internet community." After that wrist-slap, things got more intense with this well-reasoned and resource-rich reply from Andy Lester. While Andy's opening sentence did a pretty good job of expectation-setting, I still somehow managed to disappoint: "I don't always expect computer journalism to be of the highest quality, but Bob Evans' column in the Dec. 20 issue of InformationWeek has turned into the print equivalent of a talk-radio show about spam, providing a non-critical platform for any old idea in the guise of public forum." Here's Andy's reaction to ideas that ISPs should be targeted: "Again, no commentary from Bob. Anyone who's vaguely aware of the issues surrounding spam knows that it's impossible to get all ISPs to do something, and that legislation is not global. It's impossible to get 'each ISP' to 'simply charge for E-mail.'" To ideas that spam messages be automatically returned to the spammer, thereby overwhelming its systems, Andy said, "That's fine, but where's the analysis? At the very least, Bob should have pointed out that all these ideas won't work because the spammer has no reason, other than basic human decency, to not bother you. He should also have pointed out that yes, there is a way to tell the spammer the message is no good. It's a 550 response code in the SMTP transaction, which the spammer gets and then tries another E-mail address to see if it's valid. This approach is called a dictionary attack." I think Andy then got to his basic point: Wicked problems can't be solved by lightweight solutions, and I had thereby done a disservice to readers by summarizing their "unworkable" ideas without supplying my own accompanying critical analysis. On that one, I stand guilty as charged. Yet, I could also say that the point of the column was not so much for me to attempt to demonstrate that I have deeper technological insight into spam and anti-spam than you do (a prospect that is beyond absurd), but rather to use these collected submissions as a reflection back to you of how some of your peers view this rapidly escalating problem. Does the IT community seem to have a handle on stifling spam? Based on the ideas some of you sent, apparently not. And that's where the value of people like Andy Lester and Mitch Wagner is truly revealed, because they went well beyond constructive criticism and offered numerous ideas and solutions. I've offered some of those below, and you can find even more-complete lists from Andy and Mitch here. As Andy put it, "If you think you can "simply return the message to the source" or "simply charge for E-mail," then you're not thinking the problem through. However, you can rest assured that others have. For real questions and answers, here are some sites: Thank you, Andy Lester. The third letter was from Paul Howell, and it touched on some similar themes: "The majority (yes, majority) of spam coming to my clients' in-boxes is from hijacked home computers on broadband. Not from identifiable, semi-legitimate bulk E-mailers but from home PCs on DSL and cable broadband that have been infected by Trojans and serve out spam all day, unwittingly, until the ISP figures it out and shuts them down. Any return E-mail to these spam factory robots is ignored, of course. They aren't set up to process incoming E-mail. A worse problem is that sending such a reply would unwittingly bomb legitimate E-mail users who are totally unrelated to the spam problem.... "So, regarding your editorial, none of the suggestions from readers of the 'cat-o'-nine-tails' persuasion will help me, none of the 'traceable sender' or return E-mails ideas will help me, and certainly none of the 'pay-as-you-go' ideas will help me. Improved filtering does help, both on my incoming servers and at my desktop. Alert ISPs that automatically alert and shut off access to the robot spam clones would help—but such ISPs don't exist...." The full text of Paul's letter can be found with Mitch and Andy's additional resources here. So, folks, I stand before you woodshedded, chastened, and at least, I hope, a bit wiser. While I will continue to use this column regularly as a forum for your ideas and perspectives, I'll be more careful about how I frame the overall issue under discussion and the thoughts you've submitted. Thanks again to all of you. 10.0 The Best Tech Products of 2004 The following is a re-print from InfoWorld, December 30, 2004. http://www.infoworld.com/article/04/12/30/01FEtoyawards_1.html The most innovative and effective solutions among the nearly 300 products we tested during the year, the following 33 products are our Technology of the Year Award winners. Hardware and Software Platforms Best Server Hardware
Best Blade System Best Operating System Best Virtual Server Networking Best Networking Hardware Best WAN Accelerator Best IP PBX Best Wireless LAN Solution Storage Best SAN Solution Best Storage Router Best IP Storage Router Best NAS Solution Systems and Network Management Best Systems Management Solution Best Network Management Solution App Dev Best Web Services Development Tool Best Java Development Tool Best Application Testing Tool Best Software
(Profile,
Products,
Articles) Change Management Solution
Databases & Data Management Best Database Best Mobile Database Best Content Management Solution Enterprise Apps & Integration Best Enterprise Portal Best CRM Application Best Process Automation Solution Best Web Services Integration Solution
Collaboration Software Best Enterprise IM Solution Best IM Management Solution Best Team Collaboration Solution Security Best Firewall Best Network IDS Best WLAN Security Product Best Host-Based IDS Best Anti-Spam Solution 11.0 Guest Writers for This Report | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||