murthy Infosys Co founder Sells Part Of His Stake, Turns Venture CapitalistGreat news for Indian entrepreneurs!

Nagavara Ramarao Narayana Murthy, better known as N. R. Narayana Murthy and one of the seven founders of Infosys Technologies – a giant of a consulting and IT services company based in India with over 100,000 employees and offices around the globe – is turning to “the dark side” after selling a bundle of company shares in order to set up a venture capital firm.

To set up the fund, the man reportedly sold 800,000 shares, or 0.13% of the company, its total value converting to $38.7 million, more or less.

According to many reports of Indian business and technology publications, Murthy aims to invest mainly in ‘brilliant’ Indian entrepreneurs who found startups that operate in the areas of healthcare, education and nutrition. Considering his background as a technology entrepreneur, I imagine some of the investments will be in technology or Internet companies as well, however. Infosys in a statement said overseas investments will also be consider on a “case-to-case basis”.

Murthy started Infosys with six others back in 1981 by borrowing INR 10,000 (roughly $215 today) from his wife Sudha Murthy, and both still hold a significant part of the company today through a family holding. Infosys went public 12 years after its original founding and its share increased three thousandfold over the next 15 years or so.

While the venture fund may seem small in size to most of our readers, $38 million can go a long way in India, so this is great news for local entrepreneurs and the ecosystem as a whole.

(Thanks for the tip, Jason)

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 Infosys Co founder Sells Part Of His Stake, Turns Venture Capitalist

3424729981 b0be0eb101 Google Wave And The Dawn Of Passive Aggressive CommunicationWe’re now a little over a week into the extended roll-out of the preview build of Google Wave. This is an important time for the service because many people can now finally start using it as they eventually may — which is to say, with their friends and colleagues. Of course, the backlash is also already in full-swing, as expected. But I can’t help but wonder if this backlash and the hype that it is a byproduct of, is blinding some to the larger picture. Google Wave is not just a service, it is perhaps the most complete example yet of a desire to shift the way we communicate once again.

The Wall Street Journal has a long article about this today, noting “The End of the Email Era.” But most of that article is spent focusing on how Twitter and Facebook, which is to say, status updates and the streams, are replacing our need for much of what email has provided in the past. Only very briefly do they mention Wave. And I think that overlooks something.

For many of us, email is simply not cutting it the way that it used to. It’s a sedentary beast in a fast-moving web. It uses old principles for management, and this is leading to overload. I think the key statement in the WSJ is this:

We all still use email, of course. But email was better suited to the way we used to use the Internet—logging off and on, checking our messages in bursts. Now, we are always connected, whether we are sitting at a desk or on a mobile phone.

That’s absolutely true. But that also implies that we want some sort of always-on communication connection. I don’t think that’s the case. I think we want the option to communicate in real-time at will, but also the ability to communicate at our leisure at times. I would consider this to be a desire for a “passive-agressive” method of communication. Perhaps it would be better stated as a “passive/active” method of communication, but passive-aggressive sounds better, so we’ll go with that.

I would consider email to be a passive form of communication. I don’t mean that you don’t respond to it, I mean that you don’t have to respond to it right away. Instant messaging is at the other end of the spectrum. If used correctly, it’s supposed to be an “aggressive” or “active” form of communication in which you respond immediately. Twitter is very passive because the use of it is such that people don’t even necessarily expect a response of any kind, even if they point a message at you. Facebook is a mixture of all of those things (more on that below).

Google Wave is attempting to be a passive-agressive form of communication. You can actively (aggressively) engage in threads in real-time, or you can sit back and let messages come to you at your leisure (passively). Having used the product for a few months now, and after using it quite a bit more actively with my friends these past few days, I really think that Wave is onto something with this method of communication. I would argue that Google Wave’s new message alert system needs to be somewhat reworked or re-imagined, but I do think the desire to blend passive and agressive methods of communicating is there.

Screen shot 2009 10 12 at 1.54.03 AM Google Wave And The Dawn Of Passive Aggressive CommunicationWe’ve been slowly building up to a system like this. Gmail has for a while offered users a nice blend of email and instant messaging on the same page. And while it is nice that there is also the option to archive all your chats for searching purposes later, there is no good way to say, see that you missed an IM if you have a computer with Gmail open at home while you’re away and checking it remotely. You also can’t check these easily via IMAP on your phone, and the like.

And while there is the option to reply to emails by chat if that person is online, there’s no real integration between the email message and the IM message, they exist as two totally separate things. It seems like we’re at the point now where that shouldn’t have be the case.

Others, like Yahoo Mail, are now trying to tack-on status updates and the stream to email services too. The result is a Frankenstein-like service.

Facebook is another interesting example in that, as I mentioned, it combines all of these elements: Email, IM, status updates, and a stream. But the connection between all of these things in that system is loose at best. From a unified communications standpoint, Facebook is really kind of a mess. There are whispers of changes, and I hope that’s true, but I’m not holding my breath for a service with 300 million users to do something new and drastic that will alienate a certain (probably large) percentage of its base.

That’s why Wave is interesting. It’s backed by a huge company, Google, but it’s not trying to shove this upon all of its Gmail users. Instead, they’re going to slowly roll this out and see how users end up using it. And maybe more importantly, they want to see how developers start using it.

And that’s really a key that a lot of early users are overlooking. Right now, when people hear “Google Wave,” everyone seems to want to place emphasis on the “Google” part of it. But the truth is that the grand goal of the team behind the project is to emphasize “Wave” as both a platform and a new communication standard.

Whether Google Wave succeeds is really irrelevant. More important is if the idea of Wave does. Again, the idea of passive-aggressive communication.

Wave, the Google web-based client, will only ever appeal to a certain number of users. Does anyone really think that Twitter would be where it is today if they only had twitter.com? No. Wave desktop apps, and mobile apps, internal company Waves, and public Waves; it’s the platform, not the product, that’s interesting. Or, more to the point, it’s the key communication idea behind it.

[photo: flickr/matheus sanchez]

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 Twitter Should Decentralize (And Make Money) Via Twitter ServerThe background debate about whether or not Twitter can actually scale has intensified. More than a year ago I asked “Twitter At Scale: Will It Work?” Today Twitter is far, far bigger. And the uptime woes continue.

The big problem with Twitter is assymetric following without limitations on the number of connections, which means that a single account can theoretically have a number of followers limited only by the total number of Twitter users. This adds massive complexity to the system. Other services solve the problem by forcing both sides to agree to friendship, a one-to-one relationship. Others, like Facebook, limit the connections to 5,000 as well. But Twitter has no limits on complexity. And since they are a centralized, bottlenecked system, it is both hard to scale and easy to attack.

The short messaging format is popular, and it is now part of the web. It should thus be designed and implemented as a decentralized service like most other core web services (email, DNS, blogging etc.). The Internet was built to withstand a nuclear attack, and it is a platform that can’t be owned, attempting to completely centralize a new core service has never worked.

As Twitter grows, it needs to be architected more like the Internet.

New Twitter COO Dick Costolo says that he believes Twitter can scale in a centralized way, meaning the status quo will continue. But he acknowledges that it is a theoretical debate at this point, and he says that he hasn’t ruled out decentralizing Twitter.

We believe decentralizing Twitter solves two problems – it will help the service scale infinitely. And it is potentially a very lucrative source of revenue.

Email Is A Business – The Microsoft Exchange Model (Get Your Customers To Pay You And Do The Heavy Lifting, Too):

Twitter should look at how email, and commercial email servers such as Microsoft Exchange Server, developed. The business generates $2 billion or more in revenue for Microsoft, and powers the majority of corporate office functions (email, calendar, etc.). Businesses pay a few hundred dollars for Exchange, plust $50 or so per year per user. Plus, the businesses handle all the infrastructure costs (servers, bandwidth, etc.).

Twitter should sell Twitter Server just like Microsoft sells Exchange Server. They’d then run their own Twitter node on their own hardware.

Twitter likely couldn’t get $50/user/year out of Twitter Server, but they could certainly get more than the zero they are charging now. And they’d move the burden of scaling Twitter to businesses that want a highly stable solution. And users could still go to Twitter.com to create accounts for free, too. They just wouldn’t have the benefit of controlling the data on their own servers, and having the peace of mind knowing that their uptime was conditioned only on their own infrastructure, something under their control.

There would be some issues to work out, like the namespace and messaging between parties (If we had our own Twitter server, my user name would have to be something like @nik.techcrunch, or we could just use the existing global namespace – email). Twitter could build and sell a kick-ass Twitter server for corporations and those who wish to control their own messaging and their own brand.

But the benefits would be huge. Possibly hundreds of millions of dollars in revenue. And a partially decentralized service that would stay live even if Twitter.com went down.

So there are the benefits – revenue, lower operational costs, higher uptime. And there’s one more benefit, too. A decentralized Twitter would suck the air out of the idea that Twitter needs a decentralized competitor. Twitter could own the micro-messaging protocols and core service for the long term. Twitter owns the protocol, the users, the format, the trademarks, the brand and the name – why does it also need to host the whole damn thing?

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58462v2 max 250x250 TC50: Clicker Wants To Be TV Guide For The WebMore and more television content is making its way online. But because of different deals by various networks, it’s all over the place. Even the huge sites like Hulu, only skim the surface in showing what is out there. Clicker, a service launching today at TechCrunch50, wants to be the most comprehensive way to find the video content you’re looking for on the web.

While there are no shortage of video search engines out there, Clicker believes its offering is superior because it creates a structured database of programming, organizing shows by things like network, genre, and show name. This type of data not only allows for better search results, but it allows you to browse content without having to do text-based searches, which you probably won’t be doing when television and future web-enabled tablets start to serve up this content. Clicker already has a deal with Boxee.

The goal is really to be the best search engine for video content. Clicker will point you in the direction of whatever you are looking for (and will do embeds if they’re available), but won’t serve up the videos themselves. They will also delve into surfacing content not explicitly produced for television, but is still high quality web video content. But they don’t want to be YouTube, which is cluttered with user-generated content. Clicker is going for a different market.

Clicker will also allow users to edit and submit information about shows wiki-style.

As a search engine, the business model will obviously be search and display advertising. But eventually, there is a plan for Clicker Pro premium accounts, which the company envisions might be used for storing you favorite videos online, kind of like a DVR of sorts.

CEO Jim Lanzone (former CEO of Ask.com) and COO Paul Wehrley presented Clicker today on stage at TechCrunch50.

Expert Panel Q&A (paraphrased)

The experts: Don Dodge, Yossi Vardi, Ron Conway, George Zachary, and Jason Hirschhorn.

Q: Is this automated?

JL: Where content resides is always changing, a lot of it is automated, but we have to find stuff too.

Q: How do you monetize.

JL: We’re looking at the IMDb model. And eventually we’ll have a Pro version. And there’s a downstream model since we’ll be sending a lot of traffic.

Q: What do you think about Bing?

JL: That’s not fair. I think it’s fantastic for pushing beyond 10 blue links. A lot of it looks familiar though.

Q: How do you get the market penetration?

JL: Part of it is branding, some of it is distribution deals. We’ll also be very heavily SEO’d.

Q: What’s the business model?

JL: It’s mostly advertising, and we’ll get into Pro later, again. But IMDb makes $75 to $100 million in just what they do.

Q: Is this funded?

JL: Yes, earlier this year Benchmark and Redpoint – $8 million.

Q: Would you invest?

JH: This is a big problem for web video.
RC: Great product.
YV: I can never predict if products will succeed so I bet on people. Jim is a good one to bet on.

TC50: Clicker is a TV guide for the Internet age VentureBeat.

Information provided by CrunchBase

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TechCrunch50 Conference 2009: September 14-15, 2009, San Francisco


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