Gamers are not just making purchases to enhance their gaming experience but also selling virtual assets to other players, according to new research from video game market research firm VGMarket.
Sales of virtual goods are expected to reach $1 billion this year and already generate near $4 billion annually in China. But there are some challenges, primarily the fact that once you convert your real money to virtual cash you can't readily get the dough back out.
The research revealed that in-game currency is the most frequently sold digital good from player to player and that two out of three sellers sold in-game currency in the last 12 months, earning a median of $22. PlaySpan, a provider of monetization and payment solutions for games and virtual worlds and sponsor of the research, considers that to be good news as its platform enables game developers to provide player to player marketplaces for their players. In addition, the PlaySpan Marketplace currently provides a secondary market for IMVU players to buy and sell goods as well.
One out of two sellers made a sale in a social network game over the last 12 months and earned a median of $50, while one out of four sellers made a sale in a free-to-play game over the last 12 months, with their median earning being $98, or nearly double that on social networks.
Eric Hartness, chief marketing officer at PlaySpan, told me that the secondary market is a boon for games, adding value, real and perceived, to all players by associating a real world dollar value on their playing time, game accounts, and digital items.
... Read moreInfluence in open-source development communities is earned through years of writing and sharing great code. Perhaps not surprisingly, then, influence in the business side of open source is also gained through sharing expertise, and not necessarily from making mountains of cash.
At least, that's the lesson I take away from MindTouch's inaugural survey of 50 open-source business executives. MindTouch, an open-source collaboration company, has spent the last few months surveying executives within the commercial open-source community, asking them to name the most influential people within the commercial open-source ecosystem.
The result is effectively an all-star list of open-source business executives. The top five are as follows:
- Larry Augustin, CEO, SugarCRM
- Matt Asay, vice president of business development, Alfresco (and fellow CNET blogger)
- Mårten Mickos, entrepreneur-in-residence, Benchmark Capital, and former CEO, MySQL
- Jim Whitehurst, CEO, Red Hat
- Dries Buytaert, co-founder and CTO, Acquia
The full list is available here.
The common theme running through these top-five vote getters is how open they've been with their peers. Larry Augustin sits on several boards of open-source companies, but he also frequently speaks at industry events and has been involved in open source from its inception.
Matt Asay, my friend and fellow CNET blogger, sits on more than 10 open-source advisory boards, chairs the Open Source Business Conference, hosts an informal get-together every year (called Open Source Goat Rodeo--don't ask why), blogs at an unhealthy rate for CNET on open source, and has actively helped a range of aspiring open-source entrepreneurs understand the mechanics of running an open-source business.
Mårten Mickos made the world safe for the $1 billion open-source acquisition, but he has also traveled the globe speaking at open-source events and is very generous with his time, sharing know-how and best practices with other open-source executives.
Jim Whitehurst, breaking the typical Red Hat mold, has been active in industry events, has hosted a range of dinners and other small-scale, intimate events with open-source executives. He is amazingly accessible, given that he has a fast-growing open-source company to run. It's unfortunate that Whitehurst is the only Red Hat executive to make the list; Red Hat should follow his lead and be more permeable to its peers. Its influence would grow accordingly, just as Whitehurst's has.
Finally, there's Dries Buytaert, who blogs frequently on his project, Drupal, but also regularly attends and speaks at industry events. He has also been active behind the scenes, working with other open-source companies to share information on how to optimize community development.
Open-source code becomes valuable when you give it away. The same holds true for open-source business expertise. There are individuals who have made more money than these with open-source software, but in terms of influence, the more you share, the more influential you become.
What do you think? Who else should be on the list? Who influences you?
One of the less appealing aspects of using cloud services is integrating various applications--both those in the cloud and those in your enterprise in an easily manageable way. A practical use case is the ability to use one CRM (customer relationship management) system and a different file storage system, both in the cloud.
So, Friday when I saw that Box.net was directly integrating its cloud-based storage service with Salesforce.com, I saw the confluence of two major trends, cloud storage and integration appear all in one fell swoop.
Salesforce.com has been the leader in cloud services and has consistently offered users ways to integrate other services into their SF.com installation. And Salesforce has also become the prime target for vendors who want to tap into their enormous customer base already using on-demand services.
But, Salesforce is far from infallible with certain aspects, such as storing files somewhat clunky and definitely costly when you start making it your system of record.
With the new offering, Box.net business users will now be able to add a Box.net app to their Salesforce accounts, allowing them to access their documents, media, and other files from directly within their SF.com instance. And they'll have unlimited storage for their files.
... Read moreWith the launch of Windows 7 many signs point to the fact that Microsoft seems to have gotten its operating system engineering in order. That's obviously good news for its OS business unit and also good news for PC manufacturers and software companies that develop for Windows.
A rising tide of Windows adoption is not a bad thing for the technology industry in economic terms but it doesn't yet do a lot to enhance the way we use computers and applications in our every day lives.
The main problem is that Windows 7 reinforces a desktop centric-paradigm for 93 percent of the market and continues to exert a certain level of misguided design principles in the way the system handles data and file structures. And while it's a giant leap forward in terms of customization, visual effects, and security there is a missed opportunity in the cross-border approach of combining the desktop and cloud services.
Cloud-based applications and storage are still so nascent that Microsoft could jump in and usurp much of the power and market share while shoring up its cloud story for the future. Having the dominant desktop landing pad gives Microsoft a huge advantage over upstarts--even Google and Apple, if it can focus on integrating the services.
Here are a few ways Microsoft could assert its dominant desktop position to compete with Google and Amazon as a cloud player:
... Read more
(Credit:
Jruby)
JRuby allows for the incremental adoption of the Ruby language by allowing easy integration with existing Java libraries. It also lets Ruby and Rails applications to run easily on existing Java application servers that have been selected as standards within an organization.
I've been somewhat dismissive of Ruby as a language but there are more and more examples of large websites running extremely well. In fact RubyConf (already sold out) and JRubyConf are both seeing significant interest from developers for the upcoming events in San Francisco.
In the Q&A below I discuss how Jruby powers shopping site Gilt.com with CTO and co-founder Michael Bryzek.
If you are not familiar, Gilt Groupe has an interesting business model, somewhere between eBay and Woot, offering invitation-only sales of high-end fashion and luxury brands for men, women, and children. The site deals with unique spikes in traffic when new items are released as well as when an item becomes extremely popular. Accordingly, the IT infrastructure needs to be able to scale and burst in order to meet customer demands.
... Read more
IBM and Canonical, the commercial entity behind Ubuntu Linux, on Tuesday are launching a combined cloud and Linux desktop package designed for Netbooks and low-end PCs.
For those of us still waiting for Linux to hit the desktop, this type of packaging may be exactly how the move from Windows starts to pick up steam.
The IBM Client for Smart Work was first launched in South Africa in September and was initially geared toward emerging markets. IBM found that there was strong interest in the U.S. and other markets that had aging PC infrastructure and little desire for continued Windows upgrades.
The U.S. version of the package contains a number of IBM products including word processing and spreadsheets via Lotus Symphony, e-mail via Lotus Notes or LotusLive iNotes, and collaboration tools from LotusLive.com. As with the previously launched initiative, the package runs on Ubuntu Linux.
Bob Sutor, IBM's vice president of Linux and open source, told me that the target is not a drop-in replacement scenario, but rather something for IT shops that don't want to be stuck in an endless cycle of upgrading desktop operating systems and applications.
This is an interesting development for multiple reasons:
- IBM and Canonical are teaming up to bring Linux to the desktop, offering what could be considered a next-generation thin-client that relies on cloud services but remains based on an actual operating system rather than just running in a Web browser.
- IBM is targeting Windows installations in the co-opetition model the company excels in--effectively insulating itself regardless of who wins the desktop.
- Canonical is building a channel to deliver solutions rather than depend on individuals and organizations to roll their own.
Iron Mountain, a longtime provider of physical- and digital-records management, on Wednesday announced a cloud storage API that enables developers to take advantage of Iron Mountain's off-site storage facilities.
Despite the recent issues related to T-Mobile/Danger/Microsoft's data loss, cloud-based storage is not only here to stay, it's a good use case for organizations that don't have the internal processes or means to deal with off-site data management.
And while you can never know all of the things that can go wrong with your data (meaning that no one would have expected Danger to lose the T-Mobile data), established vendors like Iron Mountain have not only the customer base to support their abilities but also the processes to support customers effectively.
Iron Mountain's cloud storage application programming interface is the next evolutionary step beyond a cloud NAS (network-attached storage) that we've seen from providers like Mozy and others. The cloud storage API is similar in function to Amazon's Simple Storage Service interfaces, enabling developers to access data using restful interactions.
... Read more
Online gaming, like many other markets tends to have a few big winners, in the case of China's major game sites, three companies enjoy up more than 50 percent of the market share.
- Tencent Holdings--20.2 percent of the market and 1.24 billion yuan ($181 million) in revenue
- Shanda Games--20 percent of the market and 1.23 billion yuan ($180 million) in revenue
- NetEase.com--12.7 percent of the market and 780 million yuan ($114 million) in revenue
Tencent makes money from premium instant messaging services, pet penguins (seriously), and page decorations that allow users to customize their game space.
Earlier this year, Pearl Research predicted the Chinese online gaming market would reach $5.5 billion by 2012. At this rate, it's almost guaranteed to go beyond that estimate.
Meanwhile, back in the U.S., the latest Inside Virtual Goods report predicts that trading in online virtual goods will top $1 billion in 2009. We've certainly seen a big uptick in the purchase and interest in virtual goods--especially in the recession where people are looking for more bite-size gifts.
The report cites Zynga as the leader in the U.S. with revenue estimated at $300 million. Who knew you could make that kind of money selling poker chips, mystery crates, home improvements and flame throwers?
Storing files on your hard drive alone is risky since hardware failures can result in losing of all your data. The best way to back up your information is to store it in the cloud--or at least somewhere other than your local system. And there are plenty of options to choose from if you go the cloud route--online storage is hardly an underserved area.
I was recently briefed by U.K.-based start-up Livedrive, which is targeting consumers and small businesses and boasts more than half a million customers.
Even though it's not marketed as a replacement for the vast and sundry applications we rely on daily, Livedrive is effectively turning the browser into an operating system. Customers can share their files between all of their computers and securely access them online from anywhere, including mobile devices like the iPhone.
This is a fairly crowded market with companies like Mozy and Box.net offering various services, but Livedrive's offering looks a lot more what we expect to see from the mythical GDrive--Google's supposed online storage system
... Read moreThings are getting better for entrepreneurs, according to data released Tuesday by information services provider Chubby Brain.
Venture investment hit a multi-year low in the first quarter of 2009, reaching $5.3 billion in the second quarter and jumping a respectable 14 percent to $6.1 billion in the third quarter of 2009.
Statistics in The Pulse of the Innovation Economy report for Q309 certainly help quantify a resurgence in Silicon Valley, but we can't forget that entrepreneurs drive innovation, while venture capitalists facilitate it. Yes, money is often necessary, but the entrepreneurial need to solve complex problems is what has propelled the information economy.
A few highlights:
- Invested dollars went up by 14 percent, with an 11 percent increase in number of deals
- September seemed to be right time to raise money with 40 percent of third-quarter deals occurring in the month
- California, and specifically the San Francisco Bay Area and Silicon Valley is the most likely location to raise money.
- Health care investing saw the most activity while green investors sat on their recycling cans
It should come as no surprise that the San Francisco Bay Area/Silicon Valley is responsible for a large portion of third-quarter funding, taking 7 of the top 10 ranking spots. This is not a knock against other geographies, just a realistic recognition of how densely packed the valley is with VCs.
... Read more
