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Given Mark Zuckerberg's announcements at the Facebook F8 conference , one thing is certain: newspapers can no longer ignore Facebook's impact and reach. Whereas publishers continue to scapegoat Google for many of their current troubles, they should be equally, if not more, wary of Facebook. Whether they acknowledge it or not, newspapers are losing out to the social networking site on the fundamental fronts of community relevance, attention and information dissemination. Yet behind the perceived threat from Facebook, there is also a new opportunity for publications to achieve newfound audience relevance. Sponsor Guest author Chris Treadaway ( @ctreada ) is founder and CEO of Lasso , and author of the upcoming book Facebook Marketing: An Hour a Day, an imprint of Sybex. He blogs at treadaway.typepad.com . Facebook's rise to dominance has been astounding. It is currently the most visited site in the United States, and boasts 400-plus million worldwide users. We've seen it go from a dorm room distraction to now being larger than the combined population of the United States and Mexico. With the social network claiming that roughly 70% of its user base is outside the United States, that means that there are at least 120 million Americans on Facebook today. Taken down to the local level, though, this means that Facebook might just already have more reach in the community than any other media outlet - especially local newspapers. With the unveiling of their Web-ubiquitous "Like" button and "social bar," as well as their Graph API, Facebook is now using its strengths to redefine how we interact with the Web in its entirety. So what does all of this mean for the publishing industry and for newspapers in particular? A few very important things: Facebook is now a legitimate threat to Google. It has accomplished this by changing the game from search discoverability to social context, which wasn't doable with 40 million users but is with 400-plus million users. Facebook is trying to become the first place people visit when logging into their computers every morning. The site that leads this battle carries the most online leverage, at least until it is knocked off the pedestal. Facebook is attempting to become pervasive across the entire Web, and without permission. Like it or not, site owners are going to have to deal with social media, but now in a much more pervasive way than ever before. Facebook is a competitor for the attention of local audiences. One minute spent on Facebook is a minute not spent on another Web property. Facebook will become a more interesting place as it aggregates data on what people are doing and how they are reacting to the Web as a whole, not just Facebook's network. So it isn't just necessary for media outlets to build a better Web sites anymore - they have to build engaging content that can appear on Facebook and drive value to their paper. It isn't impossible, but it has to be a priority. All of these things impact discoverability of a newspaper's content, who monetizes it and how. Those that succeed in becoming a viral Facebook content commodity will grow rapidly. Likewise, the decline of those news sources that fail to realize the necessary potential of Facebook will be swift. A deep and complete understanding of social media is necessary for publishers of any kind to modernize, grow and ultimately survive. It's becoming a necessary core competency, and fast. Yesterday, The Washington Post announced their "Network News" initiative, integrating Facebook into the paper's website. The Post's incorporation of activity from users' Facebook friends immediately creates a value of social relevance that trumps efforts like the New York Times' similar, though detrimentally insular, TimesPeople network . More importantly, however, are the possibilities such integration might provide for local newspapers. Relevance is a central theme to both the content shared on social networks and the community publication. Facebook offers those newspapers a readymade audience that is already connected to their desired local demographic. Local publications need to recognize the importance of tapping into Facebook's community, because, first and foremost, it is precisely where their readers are finding, sharing and discussing the types of pertinent content that the papers seek to champion. Newspapers no longer need traditional Web developers. Papers now need Facebook developers, experts who can partner with creative social-savvy businesspeople who know how to take advantage of the social graph. In the wake of Facebook's new features, it will not be long before newspaper and media executives are attacking and blaming Facebook for their problems in the way they do Google today. However, those publications that more progressively pursue the opportunities and value opened to them by Facebook's new tools will have a very different reaction. Photo by Michael Rogers . Discuss
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Why Newspapers Need to Heed Facebook, Now
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The Nikkei Daily in Japan is reporting that Fujitsu will invest $537 million in cloud computing for 2011. That seems like a staggering investment to us but perhaps it's not at all surprising considering the metamorphosis in the IT sector. According to The Nikkei and Reuters , the investments will be for more servers and external memory storage at data centers in the U.S., the U.K., Germany, Australia and Singapore. Sponsor Fujitsu is not a name that is often thought of in terms of cloud computing. But it is one of the largest IT management services companies in the world, competing with the likes of companies such as CA and Microsoft, two providers with deep investments of their own in cloud computing. A little more insight into the investment came at the Symantec conference last week during an interview with Fujitsu CTO Dr. Joseph Reger. According to TechPulse 360, Reger said that relationships are developing, so to speak. "The IT industry and the cloud thing are in the dating stage... Dating is when you see only the bright side, the opportunities and you don't sit down and worry about what could be the issues." And like a lot of enterprise technology companies, Fujitsu is pushing for is own cloud stack for he enterprise: "It is a step away from current IT but it needs to be connected to the current IT: so private-public cloud. We're thinking about trusted boundaries, the security perimeters and so on. And we are seriously hoping that the cloud will be just another incarnation of IT, not a total different thing. Meaning that there will be a cloud stack where everybody can contribute... Because if the cloud is like an end to end proprietary big heater proposition, that's not good for us, for you [Symantec] and for our customers either." Open standards, anyone? Discuss
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Fujitsu Making $537 Million Investment in Cloud Computing
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It was announced Tuesday that email management startup SendGrid had raised $5 million in Series A financing from a handful of prominent investors, including Foundry Group , Highway 12 Ventures , Dave McClure , David Cohen and WordPress founder Matt Mullenweg . SendGrid, a graduate of last year's summer TechStars program, launched last fall and raised some seed funding from many of the same investors on its way to sending nearly 1.2 billion emails for its over 4,000 clients. Sponsor SendGrid is a cloud-based service that helps companies, big and small, manage automatic transactional emails sent to its users while also providing analytics and delivery assurance. A demo plan gives companies 200 free emails per month, and after that monthly prices range from $10 for 10,000 emails, to $800 for 500,000 emails, along with a few other premium features. More interestingly, the company managed a solid Series A round after strong customer development and acquisition without the blitz of marketing tactics we see from a lot of young startups. Sure it's important to spread the word about your product, but in other cases, letting your product speak for itself through customer referrals can play a large part of product growth. Ryan McIntyre of Foundry Group mentored Isaac Saldana, SendGrid's co-founder and CEO, during the TechStars program last summer and spearheaded Foundry Group's efforts to lead the investment round. Tuesday morning, McIntyre offered a look into the SendGrid investment , which he says fits with Foundry Group's theme of protocol investments. "As we observed SendGrid's rapid customer growth, which has occurred through word of mouth and without formal sales or marketing efforts, we made an offer to invest in SendGrid, and, thankfully, they accepted our offer to lead this round," writes McIntyre. Being a graduate of TechStars has been an obvious benefit to SendGrid. Dave McClure and David Cohen have participated in both the seed and Series A rounds of financing, and some of the programs other graduates ( SnapABug and Next Big Sound ) are users of the service. Other more prominent companies have started using the service as well, including Plancast , HootSuite , Get Satisfaction , SlideShare and Foursquare , all helping to spread the word about the service. Not only is SendGrid providing an excellent service that many startups could take advantage of, but they also serve as an example to other early-stage companies out there looking for funding. First, they are a shining example of the opportunities that come from participating in startup incubators like TechStars, as some of their investors and customers have come from the program. And secondly, SendGrid's focus on steady customer acquisition and development, instead of on viral marketing, is a valuable lesson. Last Friday we mentioned a book called The Referral Engine which helps companies focus their business strategies to drive customer referrals, and it seems SendGrid has done this well, growing their customer base without traditional marketing blasts. Discuss
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TechStars Grad SendGrid Collects $5M Series A Financing Round
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Yesterday, Hitachi took the wraps off their Unified Computing Platform by introducing its open data center platform. It is aimed at consolidating the enterprise functions of networking, storage, and compute into an orchestration layer. Virtualization is still guiding the evolution of the data center, in this case all the way to the physical form. If you like consolidating your systems into big iron with lots blinking lights, Hitachi has you covered. And if you like open systems that connect to your existing infrastructure, Hitachi believes that playing nice with others is in the domain of unified computing. Sponsor If you're interested in this idea, check out the video summary of the platform . The company shares us a deeper view of this product line and the problems it is intending to solve. Many of the opportunities targeted address budgets, for example, how to remove operating expense through the orchestration of resources. Orchestration is the Huddle on Third Down Orchestration merges network, system, and storage resources as a single unit to be managed and reported in. An analogy might be found in football. In the huddle, the quarterback might call "the slant 6" and all eleven members of the team interpret that play and perform their respective jobs. Orchestration, as Hitachi describes it behaves in a similar way. It will respond to plays like "scale up for product launch". All the members of the team (disk, server, and network) go to their respective places and do the jobs needed. And, if needed, adjust appropriately to the conditions on the field. Hitachi leverages a partnership with Microsoft's System Management tools to closely align the plan and reality to bring more intelligence into the equation. The Computing Stack is the Team This product is also about abstracting systems through software. The company is betting that the coordination of the tasks of operating systems, storage and networking within a single framework provides a lot of value to the business. Hitachi takes the point of view that it is best to harmonize existing assets though open standards and looks at computing as a utility to be shared in the organization. Some of the features the product contains make it easier for organizations to achieve scale across functions and environments. It is designed to support this modern data center principles: Multi-tenancy Charge back for resources Distributed physical data centers Public cloud resources through open APIs Hitachi Unified Compute Platform looks like an impressive physical device. It brings together resources normally held in separate racks and hosts them in a single location and reduces a lot of the work of wiring up data centers. As we unfold another chapter in computing, Hitachi is leveraging its strength in consolidation to meet the trend of massive growth of data. At a glance, there are a lot of reasons why IT managers might choose unified computing products: cost, ease, agility. Looking out a few years, it is easy to imagine growth in this category overall. Is Hitachi well positioned for aggregation of data center resources with its Unified Computing products? How will EMC, Cisco, IBM, and HP fare in the movement towards unified computing? Photo credit: idovermani Discuss
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Hitachi's Unified Compute Platform Goes for the Endzone
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Today ReadWriteWeb is announcing our second event, the ReadWriteWeb Mobile Summit 2010 . It will take place May 7, 2010 , in Mountain View, California. The ReadWriteWeb Mobile Summit will be an exploration of the latest Mobile development trends, both the technology and the emerging business applications. Registration is now open , at an early bird rate of just $295.00. Click here to get your ticket at this special price. Sponsor As with our first event, the Real-Time Web Summit last October, the Mobile Summit will be in the 'unconference' format. We discovered in October that the unconference is a perfect compliment to our brand, because it encourages a high quality two-way dialog. Not only that, but the knowledge and ideas that came out of our Real-Time Web Summit were practical and useful - we got a lot of great feedback about that. As with our previous event, the Mobile Summit will be facilitated by Kaliya Hamlin , who in my opinion is the best in the business at this style of event. We're using the same venue too, the beautiful Computer History Museum. Mobile was one of our top 5 trends last year and continues to undergo explosive growth , so our aim with this event is to help you navigate the opportunities. Get ready to explore, think and create the future of Mobile! Because as in our last event, The Real-Time Web Summit, it will be you - the attendees - who ultimately set the agenda. You can begin adding your suggestions now. We will have two main tracks at this Summit, Development and Business . Here's a sample of some of the topics we'll explore in both of these tracks: Geo-location services - what can you do using location as a platform ? Commerce & Marketing - as more and more consumers use smartphones, how can businesses utilize this channel? Content, Publishing & Recommendations - the technologies and best practices. Mobile Social Networking - how to tap into communities on mobile devices. Internet of Things - the emerging opportunities from sensor and RFID data. Augmented Reality - the technology and business applications of AR. Native App vs. Browser Based - Including iPhone, Android, RIM, Palm, Windows Mobile and Symbian. If you're a company in the Mobile Internet market, you may be interested in helping sponsor this event. Please contact our COO Sean Ammirati for more information on the sponsor options. The ReadWriteWeb team is excited about our second event and we can't wait to discuss the opportunities in Mobile with you on May 7. You can find banners and logos to link to our event here , if you're so inclined. We hope to see you on May 7! Discuss
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Announcing The ReadWriteWeb Mobile Summit
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