This morning, I gave a keynote speech to the Toronto Venture Group about the differences between running a start-up during the dot-com boom and what's happening now. There was no earth-shattering advice but simply my contention that companies need to be smart about how they spend their money, and make sure they focus on doing things to grow the business as opposed to distractions such as swag and cool office space.
A major theme of my talk was chairs. In fact, if I had to re-name the presentation, it would have been "It's All About the Chairs". During the dot-com boom, companies were spending $1000 to $1500 for a Herman Miller Aeron chair as opposed to shopping at Staples/Business Depot and buying a chair for $30. In many ways, the Aeron symbolized how far too many dot-com companies spent their money in the wrong places during the dot-com boom...and we're not even talking about all the swag that was distributed and all those parties with open bars. You can find some more thoughts about the "then and now" on Sean Wise's blog.

Technorati Tags: Aeron Chair

Can a tiger change its stripes? Can you turn water into wine? Can Ray Ozzie and Steve Berkowitz transform Microsoft into an Internet company from its Windows/Office roots? This is a question highlighted by the New York Times, which looks at Microsoft efforts to beef up is online operations through initiatives such as Live. At the risk of under-playing the dominance of Internet Explorer and the popularity of MSN.com, Microsoft isn't an Internet company and, frankly, it will never be seen as anything else other than a giant software company with some interesting side projects (e.g. Xbox).

This isn't necessarily a bad thing but it is what it is even though Microsoft has been struggling to convince people otherwise for the past decade. If you take a step back, Microsoft's track record beyond Windows and Office has been, at best, mediocre. A good example is television where it has toiled for years and spent billions of dollars to establish a foothold in the living room. Microsoft has acquired stakes in cable companies, purchased start-ups (anyone remember WebTV?) and, most recently, tried to developed an IP-TV platform for carriers. But after all this time, money and effort, Microsoft only has a modest presence in the TV or video markets.

Microsoft's problem - and challenge - is the Internet isn't part of the corporate DNA so it's hard to really be a vibrant and innovative Internet player when it's not really who you are. A part of this reality is Microsoft continues to make billions of dollars from selling Windows and Office. It's the business so Microsoft's lack of success in diversifying into other businesses is no different than what many other companies have faced over the years. Microsoft, however, is fortunate its core business continues to rumble along as opposed to being forced to diversify because the core business is eroding.

What Microsoft and investors need to accept is Microsoft will continue to be a software company with a Web presence as long as its continue to operate in its present form. If, however, the company decided to break itself into independent operations (Windows/Office, Xbox, MSN/Internet) then it might be a different story because each entity would have its own core mission and raison d'etre. In the meantime, Microsoft will attempt to fight the good Internet fight while chasing after dyed-in-the-wool Internet rivals such as Google and Yahoo.

For more on Berkowitz, News.com recently did a Q&A with him. By the way, read what you will into this quote Berkowitz gave the NYT about life at Microsoft compared with his previous employer, Ask.com: "I’m used to being in companies where I am in a rowboat and I stick an oar in the water to change direction. Now I’m in a cruise ship and I have to call down, Hello, engine room!. Sometimes the connections to the engine room aren’t there."

Technorati Tags: Google, Microsoft

Ever since I made the leap from tech journalist to blogging executive, my inbox has seen a rash of LinkedIn requests. Maybe this has something to do with the fact few people want to network with a journalist. In any event, LinkedIn is one of those companies that has quietly become one of the more successful players in the social networking market. In the past year, its membership has doubled to more than eight million people, and the company expects to hit $100-million in revenue by 2008. Business 2.0 has a profile about the Palo Alto, Ca.-based company and its co-founder Reid Hoffman in the latest issue.

If you haven't heard about DailyMotion.com, you probably will fairly soon, particularly if you're one of those people who wants to watch commercial-free television shows for free. I stumbled upon the video-sharing site via by brother, who read about it on Forbes.com.
So who is DailyMotion? Well, they're based in Paris and there does not appear to be any ways they make money right now: no advertising, no sponsored links, nothing. The company, which received seven million euros of venture capital from Partech and Atlas Ventures, has 18 employees, although some of them could be part-timers or volunteers as opposed to full-time staff. The company's two founders are Benjamin Bejbaum and Olivier Poitrey.
According to Forbes, DailyMotion's traffic has tripled in the past three months, albeit off a small base given it only has 0.22% market share compared with 65% for YouTube. (I'd insert an Alexa chart but you barely be able to see DailyMotion on it.)
With DailyMotion running complete TV shows, the question is whether it's violating copyright laws. Forbes quoted someone from the Electronic Frontier Foundation that DailyMotion could be protected by the Digital Millennium Copyright Act's "safe harbor" provision, which lets sites host infringed content if they aren't aware of it, don't profit from it and remove any infringing content immediately upon the copyright holder's request. I suspect DailyMotion may start getting more of these copyright holder requests once its profile starts to grow. In the meantime, have fun. I'm off to watch some "My Name is Earl" episodes as we speak.
Note: You can read an interview with Bejbaum on seomoz.org