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Webtop OS: What’s on Your Desktop?

The cost of maintaining IT in the business world is not cheap, and sometimes can even be astronomical. Large companies with in-house IT staff must hire specialized employees, and spend large portions of their budget on computer maintenance. There are updates, downloads, upgrades, IT staff overtime and perhaps even company downtime. Small and mid-sized businesses that outsource these services can save some money, but still can spend a big chunk of the company budget getting the job done. But there may be a solution already available, in fact one that’s been around for ages and whose time has finally come. “Webtops make absolute sense for a … [small or mid-sized business] that’s looking for an easy and inexpensive way to maintain its system and afford to hire more workers,” says Chris Pirillo, podcast tech guru and former host of TechTV program Call for Help. “It’s less of a power drain, and a much lower cost in IT expenses for multiple people.” What a webtop is The webtop — sometimes less accurately called a WebOS, or Web operating system — represents a return to the old client/server model of mainframe computing. The term “webtop” — short for web desktop — was coined as early as 1996 to characterize the migration of desktop applications to the browser. Webtops provide an environment similar to that of Windows, Mac, or a similar graphical user interface on Unix and Linux systems. They are virtual desktops running in a Web browser. In a webtop, the applications, data, files, configuration, settings, and access privileges reside remotely over the network. Much of the computing takes place remotely. The browser is primarily the window used to access the remote desktop software. To be called a webtop, it must have four things: Able to be launched automatically from a browser (i.e., no manual download, installation, or update process on local machine). Tight integrated between the user’s native browser and all the Webtop applications. Communicate seamlessly with a central server using HTTP. Use a graphic user interface (Windows-like environment). Back in 2000, Gartner Research released a prediction that “Webtops will become mainstream by 2002, and users will be free from relying on laptops to access the applications and information they need.” While that hasn’t come true, what’s held it back is not any lack of technology, but just the lack of Internet speed and computing power to manage this long-distance functionality. The world of Web 2.0 is changing that deficiency, and some companies are paying attention. Businesses revising desktop strategies Many large companies, including DaimlerChrysler, Sabre, BMW, Amadeus, and Deutsche Bank, are revising some of their desktop strategies to take advantage of webtops. And small and mid-sized businesses can likewise benefit. In contrast to the usual IT money pit, companies offering webtops handle the majority of maintenance remotely with limited client interaction required, with the company left to handle only a fraction of the costs. This distribution of computing power can not only dramatically decrease IT costs, but can also significantly improve a team’s performance through integrated data sharing and closer communications within the webtop platform. The webtop is an inevitability in this age of Web 2.0. With the growth in sheer numbers of Web-based applications, combined with the ubiquity of high speed Internet the capability for a completely portable operating system has arrived. The kind of functionalities you’ll find in a webtop includes file hosting, applications like word processor, spreadsheet, graphics and video programs, games, e-mail and contact management, desktop widgets, and almost anything you’d expect from the operating system existing on your desktop. While the general opinions of webtop reviewers make it sound like everyone should embrace the concept, not everyone sings their praises. There’s been plenty of resistance to the use of webtops — a large portion of the industry of software makers, for instance. The use of remote shared software applications — much of it open source — means far less commercial software will need to be installed on each workstation, meaning fewer software licenses sold. “If the webtop became a reality, Microsoft has the most to lose,” says Gene Phifer, managing vice president and analyst at Gartner, “because right now Microsoft owns the eyeballs of corporate Earth.” A work in progress Keep in mind webtops are still a work in progress, and as you’ll see when you test them, they are still finding the occasional bug to squash. Response lag time is still an issue at times, for one thing. Coming advances in new technologies, like the soon-to-be-released Adobe Flash 10 (currently in beta), may increase their functionality and speed the response time, but only time will tell. “I’ve tried several of them over the years,” said Pirillo, “and haven’t found any that are quite ready to handle the business world — yet. It may be a few years before webtops will be considered a business tool. But I have no doubt that it’s coming.” Webtops are a major strategic shift for many small businesses, especially those who have resisted outsourcing any IT services. Given the advances in reliability, security, and redundant backup protection that hosted services provide, however, it’s much more cost effective to focus on your core business than to dedicate resources to IT. Once webtops achieve a standardized level of functionality, and all of a company’s applications, data, and e-mails can be brought to individual users with lightning speed through any mainstream browser from a secure, managed data center, then the change will come. A webtop might be useful for your company needs, but before you spend a cent, run a few tests to see if the concept fits your business model. SIDEBAR: Webtops to Get You Started This Mashable page also has a much more comprehensive list of 45 webtops. Here’s a short list of a few of the better webtops to look consider: Glide — Has full suite of usual desktop applications, including word processing, spreadsheets, presentation, etc. Also handles video, audio, and digital pics, with graphics editing built in as well. Includes integration with and support for almost any cell phone or handheld, including BlackBerry, Palm, Windows Mobile, Symbian, and iPhone. Looks and works great on the iPod Touch as well. Just point your handheld or cell phone browser at Glidemobile.com and you’ll see what I mean. Offers 5 GB storage free, 15 GB is 4.95/mo. Also has a kids’ version, KidsGlide.com. G.ho.st (Global Hosted Operating SysTem) — As their slogan says, “G.ho.st provides a free Web-based Virtual Computer to every human being.” In alpha testing so far, but nice set up. Won a number of awards, including a Red Herring 100 Europe award. First joint Palestinian-Israeli technology start-up, operates in the Palestinian territories. Integrates with Zoho for office software. Well thought out, one to watch. Cloudo — Founded in 2006 in Stockholm, the company is privately held. Offers standard fare in terms of a webtop, including file hosting, virtual desktop widgets, applications, e-mail and contact management, and a full suite of programs you’d expect from a regular desktop OS. Visually appealing standard layout, but Cloudo offers a big range of themes, and can even mimic other operating systems including various flavors of Windows, Mac, and Linux so you can feel right at home. Currently in private developer alpha as of February 2008, Cloudo is an Ajax based virtual desktop application. Desktoptwo — Based in Mexico, built and hosted by Sapotek.com. Desktoptwo includes 1GB of free space, and includes a fully-featured OpenOffice.org suite, converted into a Java applet. Also offers RSS reader, mp3 player, IM, blog, mail and more.

Staying Alive in an Emerging Market

The potential benefits of the molten-hot, new B2B market are enormous, but so are the potential pitfalls as industry giants muscle their way into the arena, Web builders take advantage of the high demand for their services, and an industry shakeout looms large. The Big-Business Squeeze Manufacturing titans in almost every major industrial sector are forming alliances to create their own buyer-driven exchanges. For example, Boeing, Lockheed Martin, Raytheon, and BAE Systems plan to build an online marketplace for the aerospace industry. Ford, General Motors, and DaimlerChrysler are creating an auto industry exchange. Forest products giants International Paper, Weyerhaeuser, and Georgia-Pacific have joined forces to launch a pulp-and-paper marketplace. The list goes on and on. If you’re looking to start your own exchange, you could be up against some heavy competition. The industrial behemoths have an edge over start-ups due to the enormous amount of capital they have to put into the development and promotion of their exchanges. The idea is that vendors will flock to the well-funded, buyer-driven marketplaces because these will be the only venues in which the major buyers will participate. In this way the megaindustrial exchanges hope to gain critical mass, and it could work, given analysts’ prediction that the B2B market will be winner-take-most: This means that because gains for participants increase as more members join, few businesses will want to deal with the #2 market — the independent exchanges. Similarly, if you’re a vendor in one of the industrial sectors where a buyer-driven megaexchange is king of the hill, you may be forced into doing business in a marketplace where prices are forced as low as possible and the rules are set by the buyers. But do not despair just yet; there is reason for hope. First of all, does the term “price fixing” come to mind? If so, you’re not the only one whose antitrust sensors are going off. Government officials are beginning to scrutinize exchanges made up of competing industry giants. Look for antitrust cases to start popping up as the big-business marketplaces kick into high gear later this year. A second potential weakness of the big-biz exchanges is their lack of neutrality. Mark Walsh, president and CEO of the successful Verticalnet, predicts a “revenge of the vendors.com” as suppliers rebel under the pressure of lowering their prices as far as they can go. Walsh also contends that independent ownership of exchanges is crucial to their success. He believes that all participants must feel that the marketplace is trustworthy: that everyone involved has open access to vendors and prices. It’s questionable as to whether the corporate giants, which are so invested in their own interests, will be able to provide such a neutral environment. High Cost of Development Another potential pitfall to be aware of when considering the creation of your own B2B is the high costs associated with developing your site’s back-end capabilities. Whether you’re looking to create your own exchange or support transactions with the exchanges you desire to do business with, you will most likely face development prices forced high by the tight Web development market. Companies that specialize in building B2B sites and integrating information systems on various platforms are in extreme demand. “Clients chase integrators the way teenagers chase rock stars,” says Christine Ferrusi Ross, a Forrester Research analyst. This results in high prices and, more often than not, poor service. An October 1999 Forrester report titled “Taming eCommerce Integrators” stated that many corporate customers are facing huge fees, long delays, demands for equity, and even abandonment from the Web developers that are supposed to be helping them. These developers then move on to the next lucrative project. Of course, not all development companies are run in this way. But to protect your fledgling B2B company from such a devastating scenario, it would be wise to clearly outline the scope of every project for the development company you work with and obtain a contract that covers all the bases, allowing for proper recourse if the relationship with your developer should fall apart. The Inevitable Shakeout Another major hazard to B2Bs is the winnowing of the hot from the not. Not all these new businesses will succeed. Factors contributing to the coming shakeout include: An overcrowded market. Two dozen B2B firms plan to go public this year alone, and many industrial sectors have four or five exchanges elbowing each other for the hallowed top spot. As Patrick Walravens, an analyst at Lehman Bros., puts it, “For a year, B2B was a land grab. We’re now reaching the end of the land grab, and all the flags are in the ground.” Untested revenue models. B2B sites are so new, no one’s quite sure how to turn a profit. Even the most successful of B2B firms have yet to find themselves in the black. Wary investors. The volatile motions of the stock market with respect to B2B companies have put fear into venture capitalists, the major money source B2Bs depend on. Those businesses that jumped into the game early now have nervous investors breathing down their necks, and may have trouble securing further rounds of funding. Those new to the market may have a hard time finding investors at all. Investors are a fickle bunch, and if they don’t like the way things are going, they’ll pull out in a heartbeat. Take, for example, Neoforma, a medical supply exchange. The company’s shares opened at $13, rose to $73 in February, and now loll about in the $7 to $8 range. If your B2B site is an exchange, you face the possibility of losing to your competitors for the above reasons. If you are a vendor dealing with a potentially unsuccessful exchange, you risk the time and money lost should that exchange go under. The safest approach for an exchange in such an environment is to choose a niche marketplace where it will be less likely to face such heated competition. The best maneuver for vendors would be to avoid committing to doing business exclusively with a particular exchange. Now is the time to diversify. Overall Strategies for Sidestepping B2B Pitfalls Despite the tricky landscape, some experts believe there are definite strategies to staying alive in the current B2B marketplace. Below are a few tips floating around the e-commerce world. If your B2B site is an exchange: Have a well-respected, established partner in your camp that will see you through the rough times and give you the clout needed to rise above the rest. Create a diversified revenue stream, thereby becoming a moving target for your competitors. Focus on earlier links in the supply chain not covered by the large exchanges. As with any business venture, develop a solid business plan and procure a niche for yourself. If you are a vendor dealing with exchanges: Keep a close eye on which marketplaces are doing the best in your industry. These are usually the ones with the most value-added services to offer and the greatest number of players involved. If at all possible, do business with and support independent exchanges that offer impartial access to all vendors. Focus your attention and efforts on marketplaces that have the most buyers looking for the product you offer. The B2B market is in the early phase of formation, and with that phase come the peaks and valleys necessary to hammering out an entirely new industry. Keep your eyes and ears open, there’s still much more to come. To find out more about the emerging B2B market, read the following articles: Is There Gold under That There Hype? B2B Exchanges: Industry Heavyweights Push Aside Little Guys Middlemen Business-to-Business Exchanges Trim Costs and Time, Open Up Larger Markets for Goods — But Success Isn’t Assured Copyright © 1995-1999 Pinnacle WebWorkz Inc. All rights reserved. Do notduplicate or redistribute in any form.

More and Better Markets

The view from out there Gary Becker is a professor of economics at the University of Chicago and a Nobel-prize-winning economist. We asked him how the rise of E-commerce influences the economy. The Internet and electronic commerce will lead to more uniform pricing of all products. From an economic standpoint, that improves welfare. We’ll no longer have as many situations in which Person A pays a much cheaper price than Person B. Instead, they’ll pay competitive prices. There will be a lot of sellers and a lot of buyers. That will greatly improve the economy’s efficiency. In other words, E-commerce can lead to a more perfect market. Economists like to think of a market where goods with a given quality have the same price. It’s a market where buyers and sellers are well tuned to each other. We have some things that approach that today, such as stock markets. But most of the goods we buy are bought in local markets. Prices vary from supermarket to supermarket in your area, let alone from automobile dealer to automobile dealer. For products with different quality designations that are offered over the Internet, you may have hundreds of thousands of people in the same market, so you get a more uniform price for a given quality. It’s a great advantage, particularly for people who aren’t in a big city where there are lots of alternatives. It’s also good for older people who can’t get out so easily, and for those whose time is so valuable that they don’t get out much. We are also discovering that the variety of goods that can be sold by E-commerce is far greater than was first thought. Look at the joint venture involving GM, Ford, and DaimlerChrysler to create an automobile-parts exchange. We are going to see things that I at least can’t envision at this point. It is a bit more difficult to know whether this could better help control inflation. That depends on the government’s policy toward money creation. It also depends on how easily people can shift their commerce around from country to country. To the extent that E-commerce goes both national and global, then it will put pressure on countries not to inflate their economies. If a country does inflate, that might shift business away from companies based there to companies that are based abroad. Which brings me to the concept of the new economy. Is this concept for real? It depends on what you mean. If you mean we have permanently eliminated the business cycle or somehow permanently eliminated inflation, I think no. We will always have a business cycle, although it may well be milder than it was in the early part of this century. It has been milder. And it is possible to keep it milder on the whole. It’s also possible to control inflation, assuming the government follows the right policy. And it is possible to have an even higher rate of economic growth. So you can have an economy that is “new” in those dimensions: milder inflation, a milder business cycle, and a higher growth rate. We have a good chance of achieving that. But, as always, shocks to the world and bad public-policy responses can mess things up. We have not eliminated events that are beyond our control, and we have not eliminated bad responses to such events by policymakers and others. Some of that went on in the Asian crisis. Governmental reactions to those events caused the situation to worsen in some countries. So an important area of human error, and especially of governmental error, has not been eliminated. –From an interview with Roger Fillion For more insight on the current state of small business, see The View From Out There. Please e-mail your comments to editors@inc.com.