What could Google do with 111 Eight Ave building? Part 2, change what carrier hotels look like

January 10, 2011 Dave Ohara

I wrote last week on What could Google do with 111 Eighth Ave building? A new bargaining chip

Another idea that just popped into my head is Google could turn 111 Eight Ave building into a change agent for the carrier hotels, Internet Exchanges, Peering, and who knows what else they want to drive in the industry.

The current model of carrier hotels are run by private enterprises or a non-profit like AMS-IX.

Vision

AMS-IX: the trusted value creator in quality IP interconnection [^1]

Mission

1. To realize the principal, neutral IP interconnection marketplace worldwide

2. To offer world-class quality performance and operate a future proof platform to secure the growth of IP traffic between connected parties

3. Support initiatives for the good of the Internet to ultimately improve end-user experience

Values

Neutral

Trusted

Pragmatic

Open

Innovative

Equinix is an example of private Internet Exchange site.

When our founders started Equinix, they envisioned a place where the information-driven world could grow and thrive.

As the company looks forward, we remain dedicated to the advancement of the information-driven world. This means that we will:

protect and connect our customers’ most valuable information assets;

constantly strive to evolve and share our industry insights with our customers;

continue to make necessary investments to expand and scale to our customer's needs;

act upon industry trends that will affect our business and the businesses of our customers;

cultivate a rich interconnected ecosystem of the top networks, carriers, ISPs, and business partners in the world.

What happens when Google takes their money, knowledge, and strategic vision and demonstrate to the rest of the industry the way they want carrier hotels to operate?

Don’t just think of Internet technology, think of different business models as well. Many ideas have failed because of the business model, not the technology.

Google has 24 Public Peering Exchange Points in Equinix facilities. The largest amount dedicated to any one company. Don’t you think 111 Eighth Ave changes the conversations between Equinix and Google?

Google has sponsored projects like Google Fiber for Communities.

Google Fiber for Communities: Next steps

The deadline for responses to our request for information has passed. We will announce our target community or communities by the end of the year. In the meantime please visit fiberforcommunities.com to learn how to take action to improve broadband where you live.

Since we announced our plans to build experimental, ultra high-speed broadband networks, the response has been tremendous. Hundreds of communities and hundreds of thousands of individuals across the country have expressed their interest in the project. We're not going to be able to build in every interested community - our plan is to reach a total of at least 50,000 and potentially up to 500,000 people - but we hope to learn lessons from this experiment that will help improve Internet access everywhere.

We humbly thank each and every community and individual for taking the time to participate. If one message has come through loud and clear, it's this: people across the country are hungry for better and faster Internet access.

This map displays where the responses were concentrated. Each small dot represents a government response, and each large dot represents locations where more than 1,000 residents submitted a nomination. A list of government responses is available here.

Seems natural Google would want to change the Internet Exchanges as well.

Where would JPMorgan and Morgan Stanley put its data center in China?

January 7, 2011 Dave Ohara

The NYTimes has an article on JPMorgan Chase and Morgan Stanley receiving approval for joint venture securities firms in China.

JPMorgan and Morgan Stanley Win Approval to Expand in China

By DAVID BARBOZA

Published: January 7, 2011

SHANGHAI — JPMorgan Chase and Morgan Stanley said Friday that they had each won approval from Chinese regulators to form their own joint venture securities firms here, a move that will give each greater access to the fast-growing domestic capital market in China.

The two firms are the latest global banks to win the right to form joint ventures to underwrite stock and bond offerings in China. Eventually, the joint ventures will be able to sell and trade stocks to Chinese citizens and institutions.

JPMorgan Chase said it would partner with First Capital Securities and hold a 33 percent stake in the new firm that will be established. Morgan Stanley said it would hold a 33 percent stake in a joint venture it was forming with Huaxin Securities, which is also known as China Fortune Securities.

These companies follow the lead of others.

For now, Wall Street banks are content to form joint ventures in China. In 2004,Goldman Sachs won approval to form a joint venture securities firm in China that became Gaohua Securities. UBS, Credit Suisse and Deutsche Bank have each formed a Chinese joint venture with a local securities firm in recent years. All the firms hold minority stakes.

So, where would JPMorgan and Morgan Stanley put its data centers?

Somewhere where the Chinese regulators approve of like Winland International Finance Center or equivalent.

Winland International Finance Center

Winland International Finance Center

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Product Description

Winland International Finance Center is located at the core of Financial Street. Towards the south, there is the Capital International Finance Center, 5-star Intercontinental Hotel and China Reinsurance (Group) Corporation. Towards north, there is the Bank of China, the People's Insurance Company (Group) of China and China Insurance Regulatory Commission. Towards the west and along the 2ND ring road lies the Fuchengmen subway station which is conveniently a walking distance away. Taking inspiration from the design of the ancient Chinese coin - a square within a circle this abstract symbol is a key element in the construction of the building. The front of the building has an eco-space of thousands of square meters which is made up of greenery, fountains and sculptures, allowing much grandeur. Facing the 2ND ring road on financial street, this green pasture is one of a kind.

Given all these foreign companies own less than 50% of the joint ventures, don’t expect a data center to be built by these financials.

The market says Microsoft is no longer a monopoly, how long before DOJ changes Microsoft monopoly status

January 6, 2011 Dave Ohara

The buzz of CES has been said by some to be the end of Microsoft and Intel monopoly.

This is the most exciting CES ever

JAN 6, ’115:23 PM

AUTHORHorace DediuCATEGORIESMarket

At this year’s CES two unthinkable things happened:

The abandonment of Windows exclusivity by practically all of Microsoft’s OEM customers.

The abandonment of Intel exclusivity by Microsoft for the next generation of Windows.

Many of Microsoft’s customers chose to use an OS product from Microsoft’s arch enemy. Some chose to roll their own. Microsoft, in turn, chose to port its OS to an architecture from Intel’s arch enemy.

These actions confirm the end of the PC era. Although most people would characterize the era as exemplified by a particular form factor or market, for me the definition of that era is the way the value chain was structured and hence how profits were captured.

That era was marked by the condensation of profits around two companies, Intel and Microsoft, with the simultaneous evaporation of profits from all other participants in the value chain.

The DOJ was able to win the case that Microsoft is a Monopoly.

United States v. Microsoft

From Wikipedia, the free encyclopedia

United States v. Microsoft was a set of consolidated civil actions filed against Microsoft Corporation pursuant to the Sherman Antitrust Act on May 18, 1998 by the United States Department of Justice (DOJ) and 20 U.S. states. Joel I. Klein was the lead prosecutor. The plaintiffs alleged that Microsoft abused monopoly power on Intel-based personal computers in its handling of operating system sales and web browser sales. The issue central to the case was whether Microsoft was allowed to bundle its flagship Internet Explorer (IE) web browser software with its Microsoft Windowsoperating system. Bundling them together is alleged to have been responsible for Microsoft's victory in the browser wars as every Windows user had a copy of Internet Explorer. It was further alleged that this unfairly^{[citation needed]} restricted the market for competing web browsers (such as Netscape Navigator or Opera) that were slow to download over a modem or had to be purchased at a store. Underlying these disputes were questions over whether Microsoft altered or manipulated its application programming interfaces (APIs) to favor Internet Explorer over third party web browsers, Microsoft's conduct in forming restrictive licensing agreements with original equipment manufacturer (OEMs), and Microsoft's intent in its course of conduct.

Microsoft stated that the merging of Microsoft Windows and Internet Explorer was the result of innovation and competition, that the two were now the same product and were inextricably linked together and that consumers were now getting all the benefits of IE for free. Those who opposed Microsoft's position countered that the browser was still a distinct and separate product which did not need to be tied to the operating system, since a separate version of Internet Explorer was available for Mac OS. They also asserted that IE was not really free because its development and marketing costs may have kept the price of Windows higher than it might otherwise have been. The case was tried before Judge Thomas Penfield Jackson in the United States District Court for the District of Columbia. The DOJ was initially represented by David Boies.

It’s too bad Microsoft can’t play the CES events now to show that Microsoft is not a monopoly.

Firefox now has a bigger market share.

Google Gobbles Internet Explorer’s Market Share With Chrome

Jan. 5 2011 - 11:32 am | 4,014 views | 0 recommendations | 3 comments

Take a look at the graph below from StatCounter, showing the market share of leading Internet browsers in Europe last December.

Graphic from Statcounter

You’ll probably notice two things:

1) Internet Explorer has slipped into second place behind Firefox, marking the first time IE has lost its dominant position in a major market.

On the other hand, there may be some that claim their defining Microsoft a monopoly changed their behavior and created more competition.

Who is the next market leader who will slip to #2.

What could Google do with 111 Eighth Ave building? A new bargaining chip

January 6, 2011 Dave Ohara

It’s been two weeks since Google announced they bought 111 Eighth ave.

Investing in New York

12/22/2010 11:00:00 AM

Google New York started in a Starbucks on 86th Street with one person in 2000—a scrappy, highly-caffeinated sales “team.” After moving to a larger office in Times Square, in 2006 we relocated to our current home in Chelsea, at 111 Eighth Avenue—a former Port Authority building. In June of 2008, we took additional space in the Chelsea Market building at 75 Ninth Avenue. Now we have more than 2,000 Googlers working on a variety of projects in both sales and engineering—and we’re hiring across the board.
Today, we’re pleased to announce that we’ve closed a deal with the partnership of Taconic Investment Partners, Jamestown Properties and the New York State Common Retirement Fund to purchase 111 Eighth Avenue (also known as 76 Ninth Avenue). As part of the deal, we’ve retained Taconic Management Company to continue the leasing oversight services and management of the building on our behalf, providing the same level of customer service the building’s tenants have come to expect. We believe that this is a great real estate investment in a thriving neighborhood and a fantastic city.

Google could eventually grow to occupy the whole building, but is that worth $1.9 billion? Is it to speculate on NY real estate, and sell at a gain?

How about this for an idea?

Google now owns a premium networking access point in NYC, the biggest concentration of money in the USA with the financials, stock exchanges, and other businesses.

As Google negotiates carrier access in various markets, it can offer a presence in 111 Eighth Ave. This can change price points, and guarantees of service and access.

If Emerging Market Telecom sets up a relationship with Google, and agrees to a presence in 111 Eighth Ave, then the more the Emerging Market Telecom needs the location due to a variety of economic and technical reasons, the value works for Google.

Did Google just buy one the biggest bargaining chips it could have to negotiate access to WW Telcos?

Are Telcos ready for Cloud computing?

January 6, 2011 Dave Ohara

CNET news has a post on on Cloud Computing listing who the players will be Google, Microsoft, Salesforce.com, VMware, Amazon Web Services, IBM, HP, Hosting companies and Telcos.

Telecommunications and cable companies
One possible industry segment that may surprise us with respect to one-stop cloud services would be companies such as AT&T, Verizon Communications, Comcast, and BT--the major telecommunications providers. They own the connectivity to the data center, the campus, mobile devices, and so on, and they have data center infrastructures perfect for a heavily distributed market like the small-business market (where each small business may be local, but the market itself exists in every town and city).

The problem is the same as it has been for decades: business models and regulatory requirements of these companies make it difficult for them to address software services effectively. These companies have traditionally been late to new software market opportunities (with the possible exception of the mobile market). You don't see AT&T, for instance, competing with others in bidding for a platform-as-a-service opportunity. So until they show signs of understanding how to monitize business applications, they are not in the running.

One other area that the author James Urquhart misses is that gives Telcos an advantage.

They have access to every account due to their network services.

Verizon says they have 200 data centers worldwide. The number 200 is hard to imagine. But, think of all the Verizon telephone switching rooms that are much smaller as technology has advanced. All that power, air conditioned space in locations where network access is top in the industry.

Add to the list, Deutsche Telecom, Chunghwa Telecom, China Telecom, Singtel. They all have this advantage and all are looking to add cloud computing.

My bet is Telcos are going to be big.