Common Paradox Tech Blog

Two weeks ago on TechCrunch I posted “The Facebook Imperative,” which posed a simple question, “Why isn’t all enterprise software like Facebook?” It was the next iteration of the question I asked in 1999 that spawned salesforce.com, “Why isn’t all enterprise software like Amazon.com.” If you have read my book, Behind The Cloud, you are well aware how that one question launched a company, and a movement. Its been an exciting decade. But the real excitement is just starting.

Frankly, I’ve been amazed by the huge amount of responses, tweets, and comments (aka “the ruckus across the blogoshere,” as Joe McKendrick calls it). It only strengthens my conviction that we are about to see the greatest revolution in enterprise software, ever. Well, really, the most exciting revolution in computing, ever.

Editor’s note: This guest post is written by Marc Benioff, chairman and CEO of salesforce.com.

Online retail sales aren’t growing at the torrid pace they once were, but they continue to grow steadily. Forrester Research put out a new five-year forecast today predicting that e-commerce sales in the U.S. will keep growing at a 10 percent compound annual growth rate through 2014. It forecasts online retail sales in the U.S. will be nearly $250 billion, up from $155 billion in 2009. Last year, online retail sales were up 11 percent, compared to 2.5 percent for all retail sales.

Some other stats from the U.S. forecast:

Legend has it that when Cortes landed in Mexico in the 1500s, he ordered his men to burn the ships that had brought them there to remove the possibility of doing anything other than going forward into the unknown. Marc Andreessen has the same advice for old media companies: “Burn the boats.”

Yesterday, Andreessen was in New York City and we met up. We got to talking about how media companies are handling the digital disruption of the Internet when he brought up the Cortes analogy. In particular, he was talking about print media such as newspapers and magazines, and his longstanding recommendation that they should shut down their print editions and embrace the Web wholeheartedly. “You gotta burn the boats,” he told me, “you gotta commit.” His point is that if traditional media companies don’t burn their own boats, somebody else will.

Every year year the World Economic Forum names its Young Global Leaders, a list of up-and-comers from the worlds of business, politics, culture, and non-profits. Last year’s list included YouTube founder Chad Hurley,, Facebook founder Mark Zuckerberg, Digg founder Kevin Rose, and Skype CEO Josh Silverman.

Today, the World Econmic Forum named its 2010 Young Global Leaders. There are 197 people on the list overall, including celebrities like musician Wyclef Jean and fashion designer Stella McCartney. Some of the startup CEOs and tech execs on this year’s least include:

Twitter is becoming a serious marketing vehicle for local businesses. Everyone from your local baker to your favorite restaurant is getting on Twitter to talk to customers and draw in new ones. Just last weekend when I was driving to Vermont with my family, I sent out a Tweet asking for a good place to eat lunch. I got more than five responses, including one from a local innkeeper couple recommending two spots in town (not owned by them). That was in Brattleboro, Vermont.

But that was so random. How do you even find out which of your favorite local businesses have Twitter accounts or what their Twitter handles are? Well, CitySearch is doing it for you. The local business guide is starting to build out a definitive directory of Twitter accounts and Tweets about local restaurants, hotels, spas and stores. It is starting small, with about 5,000 business listings currently tied to their Twitter accounts (which businesses can add themselves when they claim their CitySearch page), but its aim is to add Tweets by and about any of the 15 million businesses in its listings.

Editor’s note The following guest post was written by Ashkan Karbasfrooshan, founder and CEO of WatchMojo.You can also read his series on the state of Online video (Parts I, II, III, and IV) video..

Yesterday’s final implosion of video site Veoh, which declared bankruptcy after burning through $70 million of venture capital, was a long time coming. A lot of so-called smart money went into Veoh: investors included Goldman Sachs, Time Warner, Intel’s venture arm, Spark Capital and former Disney CEO Michael Eisner. And it was hardly an isolated incident. Joost, another high-flying video startup launched by the founders of Skype, went through $45M in VC money before ending up in a fire sale.  Who’s next?

Online advertising revenues among the four largest Web advertising companies (Google, Yahoo, Microsoft, and AOL) ramped up 10.2 percent in the fourth quarter to $9 billion.  This marks the second quarter of positive growth following last year’s advertising recession, and growth accelerated from 1.2 percent in the third quarter. And unlike in the third quarter, Google didn’t account for all the growth. All four companies showed decent sequential increases, indicating that display advertising is beginning to regain its health, and not just search advertising.

Editor’s note: Is Apple going to far with its restrictions on developers? Alistair Goodman thinks so and explains why in this guest post. He is the CEO of 1020 Placecast, a location=based mobile advertising startup.

Apple’s recent behavior bears an increasing resemblance to carriers with respect to the walled garden they are creating around the iPhone. Restricting applications, restricting the use of location on the device, blocking Flash, and now potentially taking advertising in house—these moves are taken from the carrier’s playbook with the hope of locking out meaningful competition. Ironically, Apple may very well become the barrier to open innovation in mobile in much the same way as carriers have been before the iPhone came along.

What is clear from the announcement to developers last week about plans to deny some apps that deliver location-based advertising is that Apple intends to control the flow of marketing dollars on the iPhone. Less clear are their plans for sharing the wealth with the ecosystem—but if you look closely at acquisitions like Placebase, key hires and patent filings, what emerges is a potentially more ominous view of a company that can only compete in the direct advertising business head-to-head with Google by seizing control of location-based advertising.

YouTube might be streaming more than 13 billion videos a month, or nearly 40 percent of total individual streams, but when you measure by time spent YouTube only accounted for 26 percent of all viewing minutes on the Web last year.  It is not surprising that it commands a smaller share of time spent watching videos than number of streams watched, since most YouTube videos are so short.  But what is surprising is how fragmented the Web video landscape remains once you go out past the top 25 sites.

According to comScore’s 2009 U.S. Digital Year in Review, more than half of all time spent watching videos on the Web (52 percent) last year was on Long Tail video sites beyond the top 25.  What you see is a real barbell distribution, with Youtube on one end and the Long Tail sites on the other.  Total video views more than doubled between December, 2008 and December, 2009, from 14 billion to 33 billion streams. So there is hope yet for niche video producers.

Are you a budding Web entrepreneur who would like some pointers or advice from seasoned company founders? MayField Fund and First Round Capital are sponsoring a raffle to give away mentoring sessions with the founders of Digg (Jay Adelson), Flickr (Caterina Fake), Mint (Aaron Patzer), Ning (Gina Bianchini), Slide (Max Levchin), and Zynga (Mark Pincus).

The raffle will take place at a private event in Silicon Valley with space for 100 attendees on March 1. But you can win a ticket for the event by applying here. The event and raffle are free, but the 100 attendees in the running will be selected beforehand by partners at Mayfield and First Round.