Technology – Page 24 – artdiamondblog.com

Silicon Valley Is Open to Creative Destruction, But Tired of Taxes

(p. A15) Rancho Palos Verdes, Calif.
When the howls of creative destruction blew through the auto and steel industries, their executives lobbied Washington for bailouts and tariffs. For now, Silicon Valley remains optimistic enough that its executives don’t mind having their own businesses creatively destroyed by newer technologies and smarter innovations. That’s an encouraging lesson from this newspaper’s recent All Things Digital conference, which each year attracts hundreds of technology leaders and investors.
. . .
In a 90-minute grilling by the Journal’s Walt Mossberg and Kara Swisher, Apple Chief Executive Tim Cook assured the audience that his company has “some incredible plans that we’ve been working on for a while.”
Mr. Cook’s sunny outlook was clouded only by his dealings with Washington. He was recently the main witness at hearings called by Sen. Carl Levin, a Michigan Democrat, who accused Apple of violating tax laws. In fact, Apple’s use of foreign subsidiaries is entirely legal–and Apple is the largest taxpayer in the U.S., contributing $6 billion a year to the government’s coffers.
Mr. Cook put on a brave face about the hearings, saying, “I thought it was very important to go tell our side of the story and to view that as an opportunity instead of a pain in the [expletive].” Mr. Cook’s foul language was understandable. “Just gut the [tax] code,” he told the conference. “It’s 7,500 pages long. . . . Apple’s tax return is two feet high. It’s crazy.”
When the audience applauded, Ms. Swisher quipped, “All right, Rand Paul.” A woman shouted: “No, I’m a Democrat!” One reason the technology industry remains the center of innovation may be that many technologists of all parties view trips to Washington as a pain.

For the full commentary, see:
L. GORDON CROVITZ. “INFORMATION AGE; Techies Cheer Creative Destruction.” The Wall Street Journal (Mon., June 3, 2013): A15.
(Note: ellipsis between paragraphs added; italics in original; ellipsis, and bracketed words, within next-to-last paragraph, in original.)
(Note: the online version of the commentary has the date June 2, 2013.)

Google’s Bathrooms Showed Montessori Discipline

(p. 124) You could even see the company’s work/ play paradox in its bathrooms. In some of Google’s loos, even the toilets were toys: high-tech Japanese units with heated seats, cleansing water jets, and a control panel that looked as though it could run a space shuttle. But on the side of the stall–and, for men, at an eye-level wall placement at the urinals–was the work side of Google, a sheet of paper with a small lesson in improved coding. A typical “Testing on the Toilet” instructional dealt with the intricacies of load testing or C + + microbenchmarking. Not a second was wasted in fulfilling Google’s lofty–and work-intensive–mission.
It’s almost as if Larry and Sergey were thinking of Maria Montessori’s claim “Discipline must come through liberty…. We do not consider an individual disciplined only when he has been rendered as artificially silent as a mute and as immovable as a paralytic. He is an individual annihilated, not disciplined. We call an individual disciplined when he is master of himself.” (p. 125) Just as it was crucial to Montessori that nothing a teacher does destroy a child’s creative innocence, Brin and Page felt that Google’s leaders should not annihilate an engineer’s impulse to change the world by coding up some kind of moon shot.
“We designed Google,” Urs Hölzle says, “to be the kind of place where the kind of people we wanted to work here would work for free.”

Source:
Levy, Steven. In the Plex: How Google Thinks, Works, and Shapes Our Lives. New York: Simon & Schuster, 2011.
(Note: ellipsis in original.)

Frank Lloyd Wright Loved Cars

“In the early 1920s, Wright bought a 1929 Cord L-29, which he praised for its sensible front-wheel drive. Besides, “It looked becoming to my houses,” he wrote in his book “An Autobiography.” He seemed to have a special bond with the Cord. “The feeling comes to me that the Cord should be heroic in this autobiography somewhere,” he wrote.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 9) Frank Lloyd Wright, the architect whose birth in 1867 preceded the gasoline-powered automobile’s by about 20 years, was an early adopter of the internal-combustion engine and an auto aficionado all his life.
He was also eerily prophetic in understanding how the car would transform the American landscape, and his designs reflect this understanding. Wright often designed both for and around automobiles, and his masterpiece, the Guggenheim Museum in New York, owes its most distinctive feature, the spiral of its rotunda, to his love for the automobile.
. . .
Wright was seduced by the combination of beauty, power and speed, whether powered by hay or by gas. He owned horses, and his first car, a yellow Model K Stoddard-Dayton roadster, was the same model that in 1909 won the very first automobile race at the Indianapolis Motor Speedway. Called the Yellow Devil by his neighbors, this was a 45-horsepower car capable of going 60 miles an hour. Wright and his sons seemed to enjoy that horsepower with abandon: “Dad was kept busy paying fines,” his son John observed. So enamored was Wright of his automobile that he installed gas pumps in the garage of his home and studio in Oak Park, Ill.
. . .
In the early 1920s, Wright owned a custom-built Cadillac and later bought a 1929 Cord L-29, which he praised for its sensible front-wheel drive. Besides, “It looked becoming to my houses,” he wrote in his book “An Autobiography.” He seemed to have a special bond with the Cord. “The feeling comes to me that the Cord should be heroic in this autobiography somewhere,” he wrote.
Wright’s Cord can be seen today at the Auburn Cord Duesenberg Museum in Auburn, Ind.

For the full story, see:
INGRID STEFFENSEN. “Frank Lloyd Wright: The Auto as Architect’s Inspiration.” The New York Times, SportsSunday Section (Sun., August 9, 2009): 9.
(Note: ellipses added.)
(Note: the online version of the article has the date August 6, 2009 and the title “The Auto as Architect’s Inspiration.” There are some small differences between the print and online versions, although I think the sentences quoted above are the same in both.)

Wright’s autobiography, mentioned above, is:
Wright, Frank Lloyd. An Autobiography. New York: Horizon Press, 1977.

Why IT-Savy Companies Are More Profitable

Dr. Peter Weill, Chair of the Center for Information Systems Research at the MIT Sloan School of Management. Source of caption information and photo: online version of the WSJ article quoted and cited below.

(p. R2) DR. WEILL: The IT-savvy companies are 21% more profitable than non-IT-savvy companies. And the profitability shows up in two ways. One is that IT-savvy companies have identified the best way to run their core day-to-day processes. Think about UPS or Southwest Airlines or Amazon: They run those core processes flawlessly, 24 hours a day.

The second thing is that IT-savvy companies are faster to market with new products and services that are add-ons, because their innovations are so much easier to integrate than in a company with siloed technology architecture, where you have to glue together everything and test it and make sure that it all works. We call that the agility paradox–the companies that have more standardized and digitized business processes are faster to market and get more revenue from new products.
Those are the two sources of their greater profitability: lower costs for running existing business processes, and faster innovation.

For the full interview, see:
Martha E. Mangelsdorf, interviewer. “EXECUTIVE BRIEFING; Getting an Edge From IT; Companies need to think strategically about their tech investments.” The Wall Street Journal (Mon., November 30, 2009): R2.
(Note: bold in original.)

Yahoo Execs Complained that Google Did Yahoo Searches too Well

(p. 45) Even though Google never announced when it refreshed its index, there would invariably be a slight rise in queries around the world soon after the change was implemented. It was as if the global subconscious realized that there were fresher results available.
The response of Yahoo’s users to the Google technology, though, was probably more conscious. They noticed that search was better and used it more. “It increased traffic by, like, 50 percent in two months,” Manber recalls of the switch to Google. But the only comment he got from Yahoo executives was complaints that people were searching too much and they would have to pay higher fees to Google.
But the money Google received for providing search was not the biggest benefit. Even more valuable was that it now had access to many more users and much more data. It would be data that took Google search to the next level. The search behavior of users, captured and encapsulated in the logs that could be analyzed and mined, would make Google the ultimate learning machine.

Source:
Levy, Steven. In the Plex: How Google Thinks, Works, and Shapes Our Lives. New York: Simon & Schuster, 2011.

Silicon Valley May Be Insulated from the Jobs Ordinary People Need to Get Done

A long while ago I read somewhere that in his prime Bill Gates deliberately tested Microsoft software on the limited hardware that mainstream customers could afford, rather than on the cutting edge hardware he himself could easily afford. I thought that this gave an important clue to Gates’ and Microsoft’s success.
Christensen and Raynor (2003) suggest that the successful entrepreneur will think hard about what jobs ordinary people want to get done, but are having difficulty doing.
The passages quoted below suggest that Silicon Valley entrepreneurs are insulated from ordinary life, and so may need to work harder at learning what the real problems are.

(p. B5) Engineers tend to move to the Bay Area because of the opportunity to get together with other engineers and, just maybe, create a great company, Mr. Smith said. But in a region that has the highest concentration of tech workers in the United States, according to the Bureau of Labor Statistics, the bars, restaurants and other haunts of entrepreneurs can be an echo chamber. The result can be a focus on solutions for mundane problems.
. . .
. . . too often, says Jason Pontin, the editor in chief and publisher of MIT Technology Review, . . . start-ups are solving “fake problems that don’t actually create any value.” Mr. Pontin knows a thing or two about companies that aren’t exactly reaching for the stars. From 1996 to 2002, he was the editor of Red Herring, a magazine in San Francisco that chronicled the region’s dot-com boom and eventual collapse.

For the full commentary, see:
NICK BILTON. “Disruptions: The Echo Chamber of Silicon Valley.” The New York Times (Mon., June 3, 2013): B5.
(Note: ellipses added.)
(Note: the online version of the commentary has the date June 2, 2013.)

The Christensen and Raynor book that I mention above, is:
Christensen, Clayton M., and Michael E. Raynor. The Innovator’s Solution: Creating and Sustaining Successful Growth. Boston, MA: Harvard Business School Press, 2003.

“We Just Begged and Borrowed” for Equipment

(p. 32) Google was handling as many as 10,000 queries a day. At times it was consuming half of Stanford’s Internet capacity. Its appetite for equipment and bandwidth was voracious. “We just begged and borrowed,” says Page. “There were tons of computers around, and we managed to get some.” Page’s dorm room was essentially Google’s operations center, with a motley assortment of computers from various manufacturers stuffed into a homemade version of a server rack– a storage cabinet made of Legos. Larry and Sergey would hang around the loading dock to see who on campus was getting computers– companies like Intel and Sun gave lots of free machines to Stanford to curry favor with employees of the future– (p. 33) and then the pair would ask the recipients if they could share some of the bounty.
That still wasn’t enough. To store the millions of pages they had crawled, the pair had to buy their own high-capacity disk drives. Page, who had a talent for squeezing the most out of a buck, found a place that sold refurbished disks at prices so low– a tenth of the original cost– that something was clearly wrong with them. “I did the research and figured out that they were okay as long as you replaced the [disk] operating system,” he says. “We got 120 drives, about nine gigs each. So it was about a terabyte of space.” It was an approach that Google would later adopt in building infrastructure at low cost.
Larry and Sergey would be sitting by the monitor, watching the queries– at peak times, there would be a new one every second– and it would be clear that they’d need even more equipment. What next? they’d ask themselves. Maybe this is real.

Source:
Levy, Steven. In the Plex: How Google Thinks, Works, and Shapes Our Lives. New York: Simon & Schuster, 2011.
(Note: italics in original.)

Excite Rejected Google Because It Was too Good

(p. 28) Maybe the closest Page and Brin came to a deal was with Excite, a search-based company that had begun– just like Yahoo– with a bunch of sharp Stanford kids whose company was called Architext before the venture capitalists (VCs) got their hands on it and degeekified the name. Terry Winograd, Sergey’s adviser, accompanied them to a meeting with Vinod Khosla, the venture capitalist who had funded Excite.
. . .
(p. 29) Khosla made a tentative counteroffer of $ 750,000 total. But the deal never happened. Hassan recalls a key meeting that might have sunk it. Though Excite had been started by a group of Stanford geeks very much like Larry and Sergey, its venture capital funders had demanded they hire “adult supervision,” the condescending term used when brainy geeks are pushed aside as top executives and replaced by someone more experienced and mature, someone who could wear a suit without looking as though he were attending his Bar Mitzvah. The new CEO was George Bell, a former Times Mirror magazine executive. Years later, Hassan would still laugh when he described the meeting between the BackRub team and Bell. When the team got to Bell’s office, it fired up BackRub in one window and Excite in the other for a bake-off.
The first query they tested was “Internet.” According to Hassan, Excite’s first results were Chinese web pages where the English word “Internet” stood out among a jumble of Chinese characters. Then the team typed “Internet” into BackRub. The first two results delivered pages that told you how to use browsers. It was exactly the kind of helpful result that would most likely satisfy someone who made the query.
Bell was visibly upset. The Stanford product was too good. If Excite were to host a search engine that instantly gave people information they sought, he explained, the users would leave the site instantly. Since his ad revenue came from people staying on the site–” stickiness” was the most desired metric in websites at the time– using BackRub’s technology would be (p. 30) counterproductive. “He told us he wanted Excite’s search engine to be 80 percent as good as the other search engines,” says Hassan. And we were like, “Wow, these guys don’t know what they’re talking about.”
Hassan says that he urged Larry and Sergey right then, in early 1997, to leave Stanford and start a company. “Everybody else was doing it,” he says. “I saw Hotmail and Netscape doing really well. Money was flowing into the Valley. So I said to them, ‘The search engine is the idea. We should do this.’ They didn’t think so. Larry and Sergey were both very adamant that they could build this search engine at Stanford.”
“We weren’t … in an entrepreneurial frame of mind back then,” Sergey later said.

Source:
Levy, Steven. In the Plex: How Google Thinks, Works, and Shapes Our Lives. New York: Simon & Schuster, 2011.
(Note: ellipsis between paragraphs added; ellipsis in last sentence, in original.)

New Technologies Often Are Feared at First

(p. 4) It is hard to think of a technology that wasn’t feared when it was introduced. In his Atlantic article, Mr. Carr says that Socrates feared the impact that writing would have on man’s ability to think. The advent of the printing press summoned similar fears. It wouldn’t be the last time.
When Hewlett-Packard invented the HP-35, the first hand-held scientific calculator, in 1972, the device was banned from some engineering classrooms. Professors feared that engineers would use it as a crutch, that they would no longer understand the relationships that either penciled calculations or a slide rule somehow provided for proficient scientific thought.
But the HP-35 hardly stultified engineering skills. Instead, in the last 36 years those engineers have brought us iPods, cellphones, high-definition TV and, yes, Google and Twitter. It freed engineers from wasting time on mundane tasks so they could spend more time creating.
Many technological advances have that effect. Take tax software, for instance. The tedious job of filing a tax return no longer requires several evenings, but just a few hours. It gives us time for more productive activities.

For the full commentary, see:
DAMON DARLIN . “PING; Technology Doesn’t Dumb Us Down. It Frees Our Minds.” The New York Times, SundayBusiness Section (Sun., September 21, 2008): 4.
(Note: the online version of the commentary has the date September 20, 2008.)

“Web Links Were Like Citations in a Scholarly Article”

(p. 17) Page, a child of academia, understood that web links were like citations in a scholarly article. It was widely recognized that you could identify which papers were really important without reading them– simply tally up how many other papers cited them in notes and bibliographies. Page believed that this principle could also work with web pages. But getting the right data would be difficult. Web pages made their outgoing links transparent: built into the code were easily identifiable markers for the destinations you could travel to with a mouse click from that page. But it wasn’t obvious at all what linked to a page. To find that out, you’d have to somehow collect a database of links that connected to some other page. Then you’d go backward.

Source:
Levy, Steven. In the Plex: How Google Thinks, Works, and Shapes Our Lives. New York: Simon & Schuster, 2011.

In the Plex Helps Us Understand Entrepreneurs Page and Brin

Source of book image: http://mastersofmedia.hum.uva.nl/wp-content/uploads/2011/09/intheplex.jpg

In the Plex goes from detail to detail of the values, actions and quirks of a large cast of characters who have been involved in the Google story. I did not find the book as consistently gripping as Isaacson’s Steve Jobs biography.
But some of the details help suggest new hypotheses, or test old ones, on important issues of entrepreneurship and technological progress. Some parts are revealing of the goals and methods of Page and Brin.
During the next weeks I will quote some of the more interesting passages.

Book discussed:
Levy, Steven. In the Plex: How Google Thinks, Works, and Shapes Our Lives. New York: Simon & Schuster, 2011.