December 2007

The Weekly Standard's cover story this week is "Google and its enemies -- the much hyped project to digitize 32 million books sounds good. why are so many people taking shots at it?"

• It's a very good in-depth look at one ambitious aspect of Google's legendary kleptomania of intellectual property.
• It also has some very insightful commentary about what this all means for Google's business model.

The article explains that Google is currently undertaking the most ambitious book copying project in human history, looking to scan 32 million books over ten years at an estimated cost of $800m.

I always enjoy learning about a new fresh take on an old issue.

Kudos to Dr. Daniel Ballon who wrote a great editorial on net neutrality for The Hill newspaper: "Net neutrality punishes everyone for Comcast's actions."  

He recounts a great analogy about how "neutral" networks on Black Monday, the stock market crash of October 19, 1987, was made worse by a traffic jam of orders that couuld not be managed in an orderly fashion to keep the stock market functioning and open.

• "After Black Monday, exchanges recognized the need to create “express lanes” and prioritize traffic to ensure orderly market function. The chairman of the House Telecommunications and Finance Subcommittee, Rep. Edward Markey (D-Mass), also understood the benefits of placing “sensible speed limits on our market participants so that individual investors and our biggest market players can happily co-exist.” Markey recognized that neutral markets fail as predictably “as if we turned off all the nation’s stoplights,” and “made all speed limits voluntary.”
  

At its core, the policy of net neutrality, that all traffic is always treated equally no matter what is -- unreasonable, unwise, and irrational.

Three times a year the Internet Engineering Task Force meets to discuss and work through major Internet issues.

• To my delight, one of the technical issues they recently discussed has great import to net neutrality and the FreePress petition on Comcast's reasonable network management.
• Kudos to Iljitsch van Beijnum who wrote "Growth of P2P leads IETF to debate "fair" bandwidth use" in ars technica.
  • His excellent article explains a new paper being debated by the IETF that raises the core question, if the voracious bandwidth appetite of P2P is "fair" to non P2P users.

The paper and the article point out that users of "unattended" P2P applications use dramatically more bandwidth than users of "interactive" applications like web browsing -- and then poses the question of whether this excess usage is fair. 

Van Beijnum points out that the paper's authors suggest that P2P users are using 500 times the bandwidth as average interactive users. Moreover, he points out that this assymetric bandwidth dynamic disincents an ISP from upgrading their network because the assymetry would make them even less competitive. 

The fundamental point here is a question of fairness.

With the Google-DoubleClick merger reportedly in the final decision phase at the FTC, it will be interesting to learn what they ultimately conclude and if they have been monitoring recent market developments closely.  

In my Googleopoly analysis published in July, I explained in detail why the search market had already tipped to dominance and why Yahoo and Microsoft would continue to fall behind Google.

The incoming evidence continues to prove my Googleopoly analysis was dead on.

• Information Week reported that per Hitwise: Google's search market share increased in the last year from 61.84% to 65.1%, while during the same period Yahoo's share fell 1.22% and Microsoft's share fell 2.73%. 
  • To put that in perspective, in the last year alone per Hitwise, Yahoo lost 5% of its overall share while Microsoft lost a whopping 28% of its overall share. Whoa.
  • Not the kind of facts that are easy to ignore.
• Comscore has Google's share at 58.5% and also reports that Yahoo and Google are losing share. To put this in perspective again, Comscore had Google share at only 36.5% in April 2005.

There has been some reporting of Ask.com's new program "search eraser" which is a great new feature to help protect people's privacy that want it.