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Ho John Lee | February 4th, 2010 | Comments are closed
These are my links for January 30th through February 4th:
- Op-Ed Contributor – Microsoft’s Creative Destruction – NYTimes.com – Unlike other companies, Microsoft never developed a true system for innovation. Some of my former colleagues argue that it actually developed a system to thwart innovation. Despite having one of the largest and best corporate laboratories in the world, and the luxury of not one but three chief technology officers, the company routinely manages to frustrate the efforts of its visionary thinkers.
- Leonardo da Vinci’s Resume Explains Why He’s The Renaissance Man For the Job – Davinci – Gizmodo – At one time in history, even da Vinci himself had to pen a resume to explain why he was a qualified applicant. Here's a translation of his letter to the Duke of Milan, delineating his many talents and abilities. "Most Illustrious Lord, Having now sufficiently considered the specimens of all those who proclaim themselves skilled contrivers of instruments of war, and that the invention and operation of the said instruments are nothing different from those in common use: I shall endeavor, without prejudice to any one else, to explain myself to your Excellency, showing your Lordship my secret, and then offering them to your best pleasure and approbation to work with effect at opportune moments on all those things which, in part, shall be briefly noted below..The document, written when da Vinci was 30, is actually more of a cover letter than a resume; he leaves out many of his artistic achievements and instead focuses on what he can provide for the Duke in technologies of war.
- jsMath: jsMath Home Page – The jsMath package provides a method of including mathematics in HTML pages that works across multiple browsers under Windows, Macintosh OS X, Linux and other flavors of unix. It overcomes a number of the shortcomings of the traditional method of using images to represent mathematics: jsMath uses native fonts, so they resize when you change the size of the text in your browser, they print at the full resolution of your printer, and you don't have to wait for dozens of images to be downloaded in order to see the mathematics in a web page. There are also advantages for web-page authors, as there is no need to preprocess your web pages to generate any images, and the mathematics is entered in TeX form, so it is easy to create and maintain your web pages. Although it works best with the TeX fonts installed, jsMath will fall back on a collection of image-based fonts (which can still be scaled or printed at high resolution) or unicode fonts when the TeX fonts are not available.
- Josh on the Web » Blog Archive » Abusing the Cache: Tracking Users without Cookies – To track a user I make use of three URLs: the container, which can be any website; a shim file, which contains a unique code; and a tracking page, which stores (and in this case displays) requests. The trick lies in making the browser cache the shim file indefinitely. When the file is requested for the first – and only – time a unique identifier is embedded in the page. The shim embeds the tracking page, passing it the unique ID every time it is loaded. See the source code.
One neat thing about this method is that JavaScript is not strictly required. It is only used to pass the message and referrer to the tracker. It would probably be possible to replace the iframes with CSS and images to gain JS-free HTTP referrer logging but would lose the ability to store messages so easily.
- Panopticlick – Your browser fingerprint appears to be unique among the 342,943 tested so far.
Currently, we estimate that your browser has a fingerprint that conveys at least 18.39 bits of identifying information.
The measurements we used to obtain this result are listed below. You can read more about the methodology here, and about some defenses against fingerprinting here
Ho John Lee | January 31st, 2010 | Comments are closed
These are my links for January 23rd through January 30th:
- Leonardo da Vinci’s Resume Explains Why He’s The Renaissance Man For the Job – Davinci – Gizmodo – At one time in history, even da Vinci himself had to pen a resume to explain why he was a qualified applicant. Here's a translation of his letter to the Duke of Milan, delineating his many talents and abilities. "Most Illustrious Lord, Having now sufficiently considered the specimens of all those who proclaim themselves skilled contrivers of instruments of war, and that the invention and operation of the said instruments are nothing different from those in common use: I shall endeavor, without prejudice to any one else, to explain myself to your Excellency, showing your Lordship my secret, and then offering them to your best pleasure and approbation to work with effect at opportune moments on all those things which, in part, shall be briefly noted below..The document, written when da Vinci was 30, is actually more of a cover letter than a resume; he leaves out many of his artistic achievements and instead focuses on what he can provide for the Duke in technologies of war.
- jsMath: jsMath Home Page – The jsMath package provides a method of including mathematics in HTML pages that works across multiple browsers under Windows, Macintosh OS X, Linux and other flavors of unix. It overcomes a number of the shortcomings of the traditional method of using images to represent mathematics: jsMath uses native fonts, so they resize when you change the size of the text in your browser, they print at the full resolution of your printer, and you don't have to wait for dozens of images to be downloaded in order to see the mathematics in a web page. There are also advantages for web-page authors, as there is no need to preprocess your web pages to generate any images, and the mathematics is entered in TeX form, so it is easy to create and maintain your web pages. Although it works best with the TeX fonts installed, jsMath will fall back on a collection of image-based fonts (which can still be scaled or printed at high resolution) or unicode fonts when the TeX fonts are not available.
- Josh on the Web » Blog Archive » Abusing the Cache: Tracking Users without Cookies – To track a user I make use of three URLs: the container, which can be any website; a shim file, which contains a unique code; and a tracking page, which stores (and in this case displays) requests. The trick lies in making the browser cache the shim file indefinitely. When the file is requested for the first – and only – time a unique identifier is embedded in the page. The shim embeds the tracking page, passing it the unique ID every time it is loaded. See the source code.
One neat thing about this method is that JavaScript is not strictly required. It is only used to pass the message and referrer to the tracker. It would probably be possible to replace the iframes with CSS and images to gain JS-free HTTP referrer logging but would lose the ability to store messages so easily.
- Panopticlick – Your browser fingerprint appears to be unique among the 342,943 tested so far.
Currently, we estimate that your browser has a fingerprint that conveys at least 18.39 bits of identifying information.
The measurements we used to obtain this result are listed below. You can read more about the methodology here, and about some defenses against fingerprinting here
- Benlog » Don’t Hash Secrets – If I tell you that SHA1(foo) is X, then it turns out in a lot of cases to be quite easy for you to determine what SHA1(foo || bar) is. You don’t need to know what foo is. because SHA1 is iterative and works block by block, if you know the hash of foo, then you can extend the computation to determine the hash of foo || bar
That means that if you know SHA1(secret || message), you can compute SHA1(secret || message || ANYTHING), which is a valid signature for message || ANYTHING. So to break this system, you just need to see one signature from SuperAnnoyingPoke, then you can impersonate SuperAnnoyingPoke for lots of other messages.
What you should be using is HMAC: Hash-function Message Authentication Code. You don’t need to know exactly how it works, just need to know that HMAC is specifically built for message authentication codes and the use case of SuperAnnoyingPoke/MyFace. Under the hood, what’s approximately going on is two hashes, with the secret combined after the first hash
- Data.gov – Featured Datasets: Open Government Directive Agency – Datasets required under the Open Government Directive through the end of the day, January 22, 2010. Freedom of Information Act request logs, Treasury TARP and derivative activity logs, crime, income, agriculture datasets.
Ho John Lee | January 23rd, 2010 | Comments are closed
These are my links for January 20th through January 23rd:
- Data.gov – Featured Datasets: Open Government Directive Agency – Datasets required under the Open Government Directive through the end of the day, January 22, 2010. Freedom of Information Act request logs, Treasury TARP and derivative activity logs, crime, income, agriculture datasets.
- All Your Twitter Bot Needs Is Love – The bot’s name? Jason Thorton. He’s been humming along for months now, sending out over 1250 tweets to some 174 followers. His tweets, while not particularly creative, manage to be both believable and timely. And he’s powered by a single word: Love.
Thorton is the creation of developer Ryan Merket, who built him as a side project in around three hours. Merket has just posted the code that powers him, and has also divulged how he made Thorton seem somewhat realistic: the bot looks for tweets with the word “love” in them and tweets them as its own.
- Building a Twitter Bot – "Meet Jason Thorton. To people who know Jason, he is a successful entrepreneur in San Francisco who tweets 4-5 times a day. But Jason has a secret, he’s not really a human, he’s the product of my simple algorithm in PHP
Jason tweets A LOT about the word “love” – that’s because Jason actually steals tweets from the public timeline that contain the word “love” and posts them as his own
Jason also @replies to people who use the word “love” in their tweets, and asks them random questions or says something arbitrary
It took me about 3 hours to code Jason, imagine what a real engineer could do with real AI algorithms? Now realize that it’s already a reality. Sites like Twitter are full of side projects, company initiatives, spambots and AI robots. When the free flow of information becomes open, the amount of disinformation increases. Theres a real need for someone to vet the people we ‘meet’ on social sites – will be interesting to see how this market grows in the next year
- Website monitoring status – Public API Status – Health monitor for 26 APIs from popular Web services, including Google Search, Google Maps, Bing, Facebook, Twitter, SalesForce, YouTube, Amazon, eBay and others
- PG&E Electrical System Outage Map – This map shows the current outages in our 70,000-square-mile service area. To see more details about an outage, including the cause and estimated time of restoration, click on the color-coded icon associated with that outage.
site admin | May 28th, 2009 | Comments are closed
These are my links for May 24th through May 27th:
- Formulas and game mechanics – WoWWiki – Your guide to the World of Warcraft – Formulas and game mechanics rules and guidelines for developing role playing games
- Manchester United’s Park Has the Endurance to Persevere – NYTimes.com – Korean soccer player Park Ji-Sung – On Wednesday night in Rome, Park is expected to become the first Asian player to participate in the European Champions League final when Manchester United faces Barcelona.
- mloss.org – Machine Learning Open Source Software – Big collection of open source packages for machine learning, data mining, statistical analysis
- The Datacenter as Computer – Luiz André Barroso and Urs Hölzle 2009 (PDF) – 120 pages on large scale computing lessons from Google. "These new large datacenters are quite different from traditional hosting facilities of earlier times and cannot be viewed simply as a collection of co-located servers. Large portions of the hardware and software resources in these facilities must work in concert to efficiently deliver good levels of Internet service performance, something that can only be achieved by a holistic approach to their design and deployment. In other words, we must treat the datacenter itself as one massive warehouse-scale computer (WSC). We describe the architecture of WSCs, the main factors influencing their design, operation, and cost structure, and the characteristics of their software base."
- Geeking with Greg: The datacenter is the new mainframe – Pointer to a paper by Googlers Luiz Andre Barroso and Urs Holzle on the evolution of warehouse scale computing and the management and use of computing resources in a contemporary datacenter.
site admin | May 21st, 2009 | Comments are closed
These are my links for May 21st from 06:07 to 22:34:
site admin | May 8th, 2009 | Comments are closed
These are my links for May 6th through May 7th:
- Content Syndication with Case-Hardened JavaScript – kentbrewster.com – Handy code for building Javascript widgets with content from various sources such as Twitter, Digg, Yahoo Pipes, etc.
- Mathematical Atlas: A gateway to Mathematics – "The Mathematical Atlas is a collection of articles about aspects of mathematics at and above the university level, but (usually) not at the level of current research. The goal of this collection is to introduce the subject areas of modern mathematics, to describe a few of the milestone results and topics, and to give pointers to some of the key resources where further information is to be found. Like any good atlas, we try to present several ways to look at each area and to show its relationship with neighboring areas and sub-areas. "
- Three Reasons Why Twitter Will NOT Index the Links You Share – ReadWriteWeb – Argues that Twitter will rely on bit.ly through partnership or acquisition to handle sentiment and semantic analysis of twitter search and link contents.
- Tough Love For Microsoft Search – December 2008 post from Danny Sullivan on Microsoft and the search landscape.
- Annals of Innovation: How David Beats Goliath: Reporting & Essays: The New Yorker – Malcolm Gladwell, with a reporter at large on Vivek Ranadivé and his NJB girls basketball team, employing asymmetric strategies to overcome conventionally stronger teams, and a broader look at the history of insurgent strategies from David and Goliath, T.E. Lawrence, George Washington, etc.
site admin | April 29th, 2009 | Comments are closed
These are my links for April 28th through April 29th:
- With YQL Execute, the Internet becomes your database (Yahoo! Developer Network Blog) – Use Yahoo to query and assemble data from around the internet, manipulate resulting XML recordsets with server side Javascript.
- Glimmer: a jQuery Interactive Design Tool – Articles – MIX Online – "Makes jQuery accessible through a visual tool. The objective for Glimmer is pretty simple: to enable the power of jQuery through an interactive design surface. If jQuery is the "write less, do more” JavaScript library, then Glimmer is the “write none, do more” jQuery design tool. Glimmer has three core audiences: power users, designers and developers."
- Inside Facebook Reports: Why Hasn’t Facebook Grown More in China? – A look at Chinese consumer internet and social media usage, QQ, 51, Xiaonei, Kaixin, and some reasons why there are only around 300,000 Facebook users in China today.
- Facebook maps the swine flu hysteria | The Web Services Report – CNET News – Visualizing interest in swine flu by mapping percentages of mentions on Facebook wall pages, using data from Lexicon.
- Develop Twitter API application in django and deploy on Google App Engine — The Uswaretech Blog – Django Web Development – Walkthrough of a sample Twitter application on Google App Engine, using Django/Python.
site admin | April 17th, 2009 | Comments are closed
These are my links for April 15th through April 17th:
- Paul Buchheit: Make your site faster and cheaper to operate in one easy step – Compress text files with gzip to reduce file size/bandwidth, the incremental cpu cost is usually low relative to the performance gain from lower network cost. Friendfeed uses nginx in front of main web servers for this.
- Jabbify – Free Comet web service and browser client for simple chat and streaming status applications.
- TinEye Image Search Engine – Idée Inc. – The Visual Search Company – Finds references to images online, starting with an original image. Attempts to use image analysis to be independent of scaling, cropping, and other common manipulations.
- All That Twitters Isn’t Gold: A Popular Web Application in Search of a Business Plan – Knowledge@Wharton – Business school take on Twitter and high growth, non-revenue consumer web startups.
- Almost Viral: A Hybrid Acquisition Strategy – "By being almost viral you can grow very cheaply, control your rate of growth and demographics, and get enough traffic to conduct meaningful experiments. Need to grow more slowly? Just decrease your daily ad spend. Need statistically significant results more quickly? Increase your daily ad spend. With a viral coefficient of 0.9 you’ve dealt with your acquisition risk. Rather than going fully viral and dealing with the operational difficulties, it might be worth your time to deal with other market risks: retention, engagement, and monetization. "
site admin | April 12th, 2009 | Comments are closed
These are my links for April 11th through April 12th:
- Wordle – Beautiful Word Clouds – Wordle is a toy for generating “word clouds” from text that you provide. The clouds give greater prominence to words that appear more frequently in the source text. You can tweak your clouds with different fonts, layouts, and color schemes.
- The dark side of Dubai – Johann Hari, Commentators – The Independent – "Dubai was meant to be a Middle-Eastern Shangri-La, a glittering monument to Arab enterprise and western capitalism. But as hard times arrive in the city state that rose from the desert sands, an uglier story is emerging."
- Topless Robot – Hot Girls Have Lightsaber Strip-Fight for Your Viewing Pleasure – Star Wars CGI meets fake body spray ad
- Poll Result: Best VPN to leap China’s Great Firewall? – Thomas Crampton – - Witopia – Undisputed winner. Quality of service, speed of surfing, though it is said to be relatively expensive at US$50 to US$60 per year. Hotspot Shield – Bandwidth limits can be painful. Force you to wait until the next month if you use it too much. – Ultrasurf – StrongVPN
- InfoQ: Facebook: Science and the Social Graph – In this presentation filmed during QCon SF 2008 (November 2008), Aditya Agarwal discusses Facebook’s architecture, more exactly the software stack used, presenting the advantages and disadvantages of its major components: LAMP (PHP, MySQL), Memcache, Thrift, Scribe.
- The Running Man, Revisited § SEEDMAGAZINE.COM – a handful of scientists think that these ultra-marathoners are using their bodies just as our hominid forbears once did, a theory known as the endurance running hypothesis (ER). ER proponents believe that being able to run for extended lengths of time is an adapted trait, most likely for obtaining food, and was the catalyst that forced Homo erectus to evolve from its apelike ancestors.
site admin | April 10th, 2009 | Comments are closed
These are my links for April 9th through April 10th:
site admin | April 9th, 2009 | Comments are closed
These are my links for April 7th through April 9th:
site admin | April 7th, 2009 | Comments are closed
These are my links for April 3rd through April 7th:
- Agile Testing: Experiences deploying a large-scale infrastructure in Amazon EC2 – Practical guidance on using cloud computing at EC2. Expect failures, automate deployment, more.
- joshua’s blog: on url shorteners – Joshua Schachter (founder of del.icio.us) summary on the state of URL shorteners (tinyurl, bit.ly, etc), and issues with 3rd party redirects, link sharing through twitter, etc.
- Control Yourself » status.net coming soon – On status.net, plans for hosting laconi.ca sites, and federating microblogging status networks
- There must be some way out of here (Scripting News) – Comments on the rise of celebrity accounts on Twitter, increasing spam/noise, and alternative models for laconi.ca and status.net
- Stochastic Models of User-Contributory Web Sites – Tad Hogg, Kristina Lerman 31 Mar 2009 Abstract: We describe a general stochastic processes-based approach to modeling user-contributory web sites, where users create, rate and share content. These models describe aggregate measures of activity and how they arise from simple models of individual users. This approach provides a tractable method to understand user activity on the web site and how this activity depends on web site design choices, especially the choice of what information about other users' behaviors is shown to each user. We illustrate this modeling approach in the context of user-created content on the news rating site Digg.
site admin | March 8th, 2009 | Comments are closed
These are my links for March 6th through March 8th:
- Wolfram Blog : Wolfram|Alpha Is Coming! –
- Wolfram Alpha is Coming — and It Could be as Important as Google | Twine –
- Wolfram Alpha — it’s like plugging into an electronic brain » VentureBeat –
- If browsers were women – Sharenator.org – "[Chrome] Extremely skinny, but very cool and friendly. However, when it comes to the bedroom, she is very inexperienced and has little to offer. [IE] For most, she's the first woman they tried. She's really easy but can get you infected." etc etc
- Rough Type: Nicholas Carr’s Blog: The coming of the megacomputer – Nick Carr commentary on Rick Rashid's statement that 20% of servers were going to major cloud data centers. Also some interesting discussion in comments.
- FT.com | Tech Blog | How many computers does the world need? – According to Microsoft research chief Rick Rashid, around 20 per cent of all the servers sold around the world each year are now being bought by a small handful of internet companies – he named Microsoft, Google, Yahoo and Amazon.
- The New Hot Cuisine: Korean – WSJ.com – Korean food is slowly making its way into mainstream awareness, both high end (French Laundry, Le Bernardin) and everyday (CPK, Kogi BBQ).
- WriteOnIt – Fake pictures – Build fake magazine covers, newspapers, and photos.
site admin | March 6th, 2009 | Comments are closed
These are my links for March 4th through March 6th:
- Welcome to VIPERdb – Scripps – VIPERdb is a database for icosahedral virus capsid structures . The emphasis of the resource is on providing data from structural and computational analyses on these systems, as well as high quality renderings for visual exploration.
- Virus images at VIPERdb – If you have ever wanted to make beautiful images of viruses, in colors of your choice, then go to VIPERdb, the virus particle explorer.
- Reverse HTTP – IETF draft-lentczner-rhttp-00.txt – Formal description of the reverse HTTP proposal for initiating connections through firewalls then reversing server and client roles.
- Reverse HTTP – Second Life Wiki – Experimental protocol which takes advantage of the HTTP/1.1 Upgrade: header to turn one HTTP socket around. When a client makes a request to a server with the Upgrade: PTTH/0.9 header, the server may respond with an Upgrade: PTTH/1.0 header, after which point the server starts using the socket as a client, and the client starts using the socket as a server.
- WTFs/m – The only valid measurement of code quality, WTFs/min
site admin | February 26th, 2009 | Comments are closed
These are my links for February 26th from 10:39 to 20:05:
site admin | February 24th, 2009 | Comments are closed
These are my links for February 23rd through February 24th:
site admin | February 19th, 2009 | Comments are closed
These are my links for February 18th through February 19th:
- Single Google Query uses 1000 Machines in 0.2 seconds – Google Fellow Jeff Dean says from 1999-2009, while both search queries and processing power have gone up by a factor of 1000, latency has gone down from around 1000ms to 200ms. Crawler updates now take minutes compared to months in 1999. 1000 machines handle a single query, all in memory.
- Government 2.0: Tweeting the Talk, Walking the Walk « Adriel Hampton – List of twitter users in various government organizations.
- The Absurdly Artificial Divide Between Pure and Applied Research – Olivia Judson – NYTimes.com – I used to explain myself as an "applied research" guy, small "r", not big "R" pure research. Love theory and analysis but want to see it get used for something eventually.
- Amazon Web Services Developer Community : Load data into S3 via hard drives? – Amazon asks for feedback regarding the FedEx option for bulk data transfer. "We have heard a number of requests about sending hard drives to AWS to load into S3. If such a service would benefit your business, we’d like to learn more about your use case."
- Local Media in a Postmodern World, Part XCI, Advertising Loses Its Balance – On the shifts in supply and demand, buyers and sellers in advertising markets as media moves from 1-to-many to niche-oriented, many-to-many and sellers take control of their own online media and advertising campaigns
site admin | February 17th, 2009 | Comments are closed
These are my links for February 16th through February 17th:
- Top 100 Network Security Tools – Many many security testing and hacking tools.
- FRONTLINE: inside the meltdown: watch the full program – "On Thursday, Sept. 18, 2008, the astonished leadership of the U.S. Congress was told in a private session by the chairman of the Federal Reserve that the American economy was in grave danger of a complete meltdown within a matter of days. "There was literally a pause in that room where the oxygen left," says Sen. Christopher Dodd"
- The Dark Matter of a Startup – "Every successful startup that I have seen has someone within their ranks that just kinda “does stuff.” No one really knows specifically what they do, but its vital to the success of the startup."
- Why I Hate Frameworks – "A hammer?" he asks. "Nobody really buys hammers anymore. They're kind of old fashioned…we started selling schematic diagrams for hammer factories, enabling our clients to build their own hammer factories, custom engineered to manufacture only the kinds of hammers that they would actually need."
- Mining The Thought Stream – Lots of comments around what is Twitter good for and how will it make money, revolving around real/near-time search, analytics, marketing, etc.
- Understanding Web Operations Culture – the Graph & Data Obsession … – Comparison of traffic at Flickr, Google, Twitter, last.fm during the Obama inauguration. "One of the most interesting parts of running a large website is watching the effects of unrelated events affecting user traffic in aggregate."
site admin | February 16th, 2009 | Comments are closed
These are my links for February 15th through February 16th:
- Berkeley cloud report gets mixed reviews | The Wisdom of Clouds – CNET News – James Urqhardt commentary on UCB paper, "The paper begins by setting a definition of Cloud Computing that will be considered controversial by many, as it is firmly in the "there is no cloud computing inside enterprise data centers" camp."
- Above the Clouds: Above the Clouds Released – UC Berkeley RAD Lab starts a new blog and publishes their take on the state of cloud computing.
- Forget Dunbar’s Number, Our Future Is in Scoble’s Number « I’m Not Actually a Geek – A look at changing interaction styles enabled by growing use of online social networks and applications. "If Dunbar’s Number is defined at 150 connections, perhaps we can term the looser connection of thousands as Scoble’s Number. "
- What really happened at Ma.gnolia and lessons learned – Video podcast with Larry Halff describing how Ma.gnolia was implemented (Ruby on Rails), its ongoing operation leading up to the failure of the (1/2 TB) MySQL database a few weeks ago.
- Infrastructure for Modern Web Sites « random($foo) – An overview of packages, services, and approaches for building web systems, circa January 2009. With assorted comments.
- Online Mind Mapping – MindMeister – Web-based, embeddable mind mapping software, sort of like MindJet, wiki-style collaborative editing.
- Jean-Lou Dupont’s WEBlog: Cloud Computing Mind Map – A mind map of companies and projects in the cloud computing space.
Ho John Lee | January 28th, 2009 | 2 comments

Spent some time at CloudConnect last week. “Cloud computing” has an increasing amount of buzz lately. I notice that India is the top region and Korean is the top language for searches on the topic. The top 3 cities are Bangalore, San Jose, and Seoul. That sounds consistent with my impression of levels of interest and activity. Infoworld says “Cloud Computing shapes up as big trend for 2009″. It’s certainly turning into a hot label, although the underlying internet service infrastructure ideas have been around for a long time.
The current business environment is characterized by high uncertainty. However, assuming the global economy doesn’t totally collapse, companies that successfully migrate IT activities to the cloud can achieve lower costs and flexible scale, at the potential cost of vendor lock-in, regulatory uncertainty, and the operational risk of the transition itself.
Some of this reminds me of the dynamics around corporate ERP projects a decade ago. If you were the incumbent leader in your market, you’ve already invested in your line-of-business IT infrastructure, and it’s working. You may have even been an early adopter of ERP technologies, gaining time and experience in pilot projects to develop a competitive advantage in your in-house IT. At some point the other competitors in a given market end up in a difficult position – either continue as they are with a strategic disadvantage (no ERP), or take on a risky overhaul of their core IT systems and business processes to become more competitive (if the project succeeds). Kind of like Iron Man rebuilding the power supply for his heart and super-suit. It’s great, as long as it actually works. But it might kill you.
So who went down this path? The leaders tend to, because part of how they became the leaders in their markets is by looking for the next competitive edge, whether it is a technology, business process, or other. The interesting part is that in many ways it is more attractive for an *uncompetitive* company to attempt a radical technology and process overhaul, simply because what they’re doing is already *not* working. So it’s literally adapt or die. The implementation risks were substantial, sometimes companies suffered major setbacks through failed ERP adoption, Hershey’s being a the poster child for a disastrous SAP project, although it didn’t *quite* kill them.
Now let’s look at cloud computing. It is clearly a win for startups and insurgents in a given market. They gain IT capabilities and scale on par with all but the very largest organizations, and don’t have a sunk cost of equipment, staff, and existing business process. They can’t differentiate themselves on better IT per se, but they can develop their processes around the flexbility and scalability of the cloud, and design for competitive advantage within its constraints. They also have nothing to lose, so why not take the risk?
The more typical case is much more difficult. An existing enterprise already has substantial IT infrastracture assets, staff, and business processes. They will be severely criticized and probably sued if someone doesn’t like what they’re doing, which is problematic because they have an actual working business and assets. Nonetheless, in the current business environment, many existing organizations will be approaching that “adapt or die” point, in which the choices are to try something risky and maybe have it fail (in this case, moving IT services and processes to the cloud), or die (weighed down by higher costs and lower flexibility). One implementation risk is that the regulatory issues around privacy, security, accountability etc haven’t been worked out yet, and what major financial institution, bank, insurer, or health care provider would want to be the guinea pig in court? Not their first choice, but the prospect of lower incremental costs and the operating flexibility grow more and more appealing every day. Someone is going to be first, probably get sued, and then everyone will know what the rules are and jump in. Either that, or startups and insurgents in their markets are going to take over first.
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