LinkedIn gets lucky

lucky pantsSeveral readers have asked for my take on Microsoft’s purchase this week of LinkedIn for $26.2 billion — a figure some think is too high and others think is a steal. I think there is generally more here than meets the eye.

Microsoft definitely needed more presence in social media if it wants to be seen as a legit competitor to Google and Facebook. Yammer wasn’t big enough. LinkedIn fits Redmond’s business orientation and was big enough to show that Satya Nadella isn’t afraid to open up the BIG CHECKBOOK.

A simple financial analysis of the deal shows LinkedIn was way cheaper at $59 per registered member than buying Facebook for $329+ per member (if Microsoft […]

Predictions #2 (and 3?): Microsoft and Apple hit walls

2016predictionsIt isn’t easy being huge as both Apple and Microsoft are starting to realize. Both companies are incredibly successful and I’m not here to say either is in real danger, but both are suffering major structural challenges that will hurt them in 2016. What’s key for these predictions is how they respond.

I’ll deal with Microsoft first because there the challenges and solutions are both clearer than they are with Apple. I’ve been very impressed with Microsoft CEO Satya Nadella who I think hasn’t saved the company, because it didn’t need saving, but he’s a real improvement over Steve Ballmer. Nadella has done the best he can to get Microsoft in order and reinvigorated, […]

Amazon’s cloud monopoly

GartnerCloudEarlier this year two different research reports came out describing the overall cloud computing market and Amazon’s role in it. Synergy Research Group saw Amazon as by far the biggest player (bigger in fact than the next four companies combined) with about 30 percent market share. But Gartner, taking perhaps a more focussed view of just the public cloud, claimed Amazon holds 82 percent of the market with cloud capacity that’s 10 times greater than all the other public cloud providers combined. I wonder how these disparate views can be possible describing the same company? And I wonder, further, whether this means Amazon actually has a cloud monopoly?

Yup, it’s a monopoly.

Last chance to get a Mineserver™ for Christmas!

newmineserverlogo.jpgIt took only two days for our three sons to reach their $15,000 Kickstarter funding goal and visions of building a kit car were dancing in their heads. Almost three weeks later, however, total pledges are just nearing $30,000, which puts profits more in the deluxe quadcopter range. Still good, but not a Manx dune buggy. But there is one more day to make your pledge — the only way to get a Mineserver™ or Mineserver Pro™ in time for Christmas.

Along the way we gained the attention of Mojang, owners of Minecraft, who didn’t like our logo so the boys held a contest with the winner (from Hamilton, New Zealand!) getting a […]

The Cringely boys Kickstart Mineserver™, a $99 Minecraft server

When my three sons, ages 13, 11, and 9 decided to do a summer business together I thought it could be almost anything. After all, they’ve visited three dozen tech startups with me in our RV and they’ve been surrounded by technology entrepreneurs their entire lives. What business would it be?

I just never expected a $99 Minecraft server.

It’s brilliant, really. Minecraft is hugely popular but the Minecraft hardware market is almost nonexistent. It’s not that nobody thought to do such a server but that it’s a business idea most entrepreneurs would see as not having legs. It will scale, sure, but will it endure? In a few months someone — no doubt someone in Asia — will copy the idea, […]