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Daily, November 07
Installing Ubuntu 8.10 In 12 Easy Steps



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InformationWeek Daily - Friday, Nov. 7, 2008


Editor's Note

The Cloud Computing Monopoly Debate

I've been following with interest a cloud computing debate that's been going on the past week or so between O'Reilly Media founder Tim O'Reilly and technology writer Nicholas Carr about the potential for a single company to achieve monopoly control of the world of cloud computing.

The back-and-forth began with Hugh Macleod's crystal ball blog post The Cloud's Best Kept Secret:

"The way I'm seeing the future commonly talked about, is all this data and programs spread all over the networks of all these companies, relatively proportional to their current market caps. Some folk have their stuff with Sun, some with Amazon, etc. But nobody seems to be talking about Power Laws. Nobody's saying that one day a single company may possibly emerge to dominate The Cloud, the way Google came to dominate Search, the way Microsoft came to dominate Software."

O'Reilly disagrees with Macleod's analysis, since he thinks network effects instead of power laws ultimately determines the winner in any and all Web marketplaces. (A network effect is the phenomenon where a service becomes more valuable as more people use it, thereby encouraging ever-increasing numbers of adopters.) O'Reilly discounts the possibility for network effects in the cloud infrastructure space:

"Understanding the dynamics of increasing returns on the web is the essence of what I called Web 2.0. Ultimately, on the network, applications win if they get better the more people use them. As I pointed out back in 2005, Google, Amazon, ebay, Craigslist, Wikipedia, and all other other Web 2.0 superstar applications have this in common.

"Cloud computing, at least in the sense that Hugh seems to be using the term, as a synonym for the infrastructure level of the cloud as best exemplified by Amazon S3 and EC2, doesn't have this kind of dynamic. ... The cloud computing business will be huge, but it may be more similar to the Web hosting and ISP markets, which are also huge, but not hugely profitable."

Nick Carr counters O'Reilly's argument by quoting some of his own words back at him that seem to negate one of his original premises, that is, denying that Google's success is based on network effects:

Find out who gets in the last word. Could be you! Feel free to post your thoughts in the comment section.

Roger Smith
rsmith@techweb.com
www.informationweek.com

Quote of The Day

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The technical executive of the search engine said utilizing white spaces is good for the country, and it could increase the company's revenue by as much as 30%.

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The vendors posted a YouTube video showing the migration of a running virtual machine from an Intel Xeon-based server to one running AMD's quad-core Shanghai processor.

First Responder Terminal Market To Exceed $3.6 Billion In 2013

Global public-safety and other governmental agencies have been standardizing on new digital technologies, including the APCO/TIA Project 25 and the ETSI Tetra project.

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The popular listings site, which has been under pressure to screen out sex ads, has agreed to crack down in a pact struck with 40 states.

Web 2.0 Summit: Yahoo CEO Jerry Yang Open To Microsoft Sale

The co-founder also acknowledged Google's announcement that it would not pursue its advertising partnership with Yahoo.

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The Quadro FX 470 is marketed as a less-expensive alternative for designers and engineers working in CAD and digital content-creation applications.

Intel To Launch Core i7 Nov. 17 With PC Demos

The processors, code-named Nehalem, already have received strong praise from "first-look" reviewers.

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Avaya Pledges Continued Overhaul

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Windows 7 Features Include Touch Screens, Better Device Support

Microsoft says the successor to Windows Vista will offer improved performance in a number of key areas.

FairPoint Directors Support CEO, But Prepare His Exit

Eugene Johnson has indicated his desire to retire after the company successfully completes the systems transition of its newly acquired northern New England business.

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In This Issue


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