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Editor's note: This is part of a series of stories about the recession's effect on the tech industry.

Suleman Ali cashed out just in time.

The 26-year-old, a former Microsoft employee who helped put together the Windows Home Server product, founded a company called Esgut within months of the debut of Facebook's developer platform in May 2007. Esgut is a portfolio of Facebook applications, and a few of them, like Superlatives and Entourage, became genuine viral hits. In April, Ali sold the 12-employee Esgut to the Social Gaming Network, a Silicon Valley company backed by the likes … Read more

With all the buzz about Facebook Connect this week, it's worth asking the question: Whatever happened to OpenID?

The universal log-in standard was created in 2005 by Brad Fitzpatrick, founder of LiveJournal, while he was working at blog software company Six Apart. (Fitzpatrick now works at Google; Six Apart has since sold LiveJournal.) It has the support of Yahoo, MySpace (which just helped build an OpenID extension for the Flock browser), and President-elect Barack Obama's Change.gov. Even Google has dipped its proverbial toe in the pool.

But it wasn't until Facebook Connect started making headlines that … Read more

For a company that's cutting costs these days, the annual holiday party is an easy target. But there have been fewer cancellations in the tech industry than one might think.

True, eliminating an evening of eggnog and sugar cookies won't help an ailing balance sheet that much; in the current financial downturn, it has a lot to do with appearances, too. "It's the economy, definitely, but it's also a lot of public perception," said Celia Chen, a New York-based event planner who runs the blog Notes on a Party.

"People don't want … Read more

NEW YORK--Solar panels clusters in New Mexico, wind farms dotting the Great Plains? That's all very nice. But that railroad tunnel in Baltimore is important, too.

On a gray and rainy Thursday, I went to Time Inc.'s midtown Manhattan headquarters for what was supposed to be a panel about the company's flagship magazine's annual "Person of the Year" honor. But amid consistently grave economic news, not to mention the fact that everyone in attendance seemed to agree that President-elect Barack Obama eclipses any other options for the award, the conversation was less about a … Read more

There's a big Wall Street Journal piece on Tuesday about how MySpace is still seriously beating Facebook in the advertising and marketing game, regardless of the fact that Facebook has started to breeze past it in traffic.

This is one of those stories geared toward the Journal's less technical readers, undoubtedly, since most of the details are no surprise to social media junkies. But the take-home point is a good one: Big media ownership has been helpful to MySpace, whereas the independent Facebook is still learning the advertising game.

MySpace is owned by News Corp. (which also owns … Read more

SAN FRANCISCO--The wild days of Web 2.0 may have thrown their last sheep. Here's how you can tell that things have gotten serious: at O'Reilly Media and Techweb's Web 2.0 Summit this week, people actually showed up for breakfast.

That's because they probably weren't out as late. The party scene at tech conferences tends to be a bacchanalia--take South by Southwest Interactive, with enough events to make any little black book burst at the seams, or TechCrunch50 a few months ago, where rumor has it that a high-profile dot-commer got so drunk at … Read more

TechCrunch's Michael Arrington has a solid analysis of Facebook's current financial system, and his outlook isn't good. To boot, he says, Facebook Chief Financial Officer Gideon Yu has been spotted in Dubai, possibly meeting with investors to raise more cash for the company.

Here are Facebook's current problems, per Arrington: Three-quarters of its users are now outside the U.S., many in countries where bandwidth and server costs are more expensive and advertising dollars are less reliable. Hardware costs, while they're lower than they were in the original dot-com era, are still expensive. He's … Read more

Among the digerati, there's already a clear winner in the presidential election: little Web "widgets" that can be dropped onto sites to carry everything from election results to user-chosen news headlines to slideshows of VP candidate Sarah Palin's fashion choices.

In 2004, the buzz about digital media and the election was all about a nascent form of news publishing--blogs. In 2006 it was online video, particularly YouTube, after the video-sharing site hosted a widely circulated amateur video of George Allen, then a Virginia senator up for re-election, using an obscure racial slur at a campaign rally.… Read more

It seems like the only complaint that the cranky digital-media press can come up with for MTVMusic.com, the legendary pop-culture brand's new music video hub, is, "Why wasn't this here years ago?"

Yeah, yeah, we know. There are licensing issues, especially for all those campy '80s videos that haven't seen the light of day in years. And launching a product prematurely could have led to bad press, as opposed to the "wow, we like this" response that MTV Music seems to have gotten thus far.

The issue, of course, is that most … Read more