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December 07, 2007

Is the European Renaissance still here?

The remains of the original Renaissance in Italy can still be found throughout Europe. Paintings are still cherished, writings are still read, philosophy is still contemplated, and the science is still used.

The Renaissance was a time of intellectual and economic change. This change was found in artistic, social, scientific, and political aspects of life. This was said to last from the fourteenth through the sixteenth centuries, but has change really stopped?

We live in a world of change. We are constantly being pushed to find creativity and originality in everything we do. Those who come up with the original ideas and become successful are recognized for their entrepreneurialism.

Trading increased as maps became more reliable during the European Renaissance. Explorers found new ways around the world and found better ways to import and export goods. The same is happening in our economy today. We are outsourcing our work to countries all around us by using the internet as our “map.”

So if the world is constantly changing still, I believe we are still in the renaissance period. We must take old ideas and turn them into new ideas. Thus, we will always be in a state of change, or in a period of renaissance.

An interactive website about the Renaissance can be found at: http://www.learner.org/interactives/renaissance/index.html

December 06, 2007

VoIP Vendor Research: Skype

NTRODUCTION
Skype is a Voice over Internet Protocol service that was created by Niklas Zennström and Janus Friis in 2003 as a private company. EBay acquired the company in 2005, offering performance based earn-out payments. The annual report from eBay offers all of Skype’s financial information as a part of eBay Inc. With a combination of the skewed numbers from the earn-out agreements and the financial reviews meshed together will all other eBay businesses, accurate ongoing costs, operating costs, advertising and marketing costs and others were difficult to confirm.

SERVICES PROVIDED BY SKYPE

Free Skype Services:
- Making calls to other Skype contacts
- Transfer Skype calls to other Skype contacts
- Video calls on Skype
- One-to-one and group chats
- Conference calls with up to nine people
- Forwarding calls to other Skype contact names

Paid Skype Services:
In order to use any of Paid Skype services, a user has to purchase so called Skype Credit. Skype Credit is an amount of money that user sets up and which will be charged with according rates as soon as paid service would be used.
1. SkypeOut – making Internet calls from Skype installed computer to landline and mobile phones.
A. Unlimited nationwide calls - unlimited calls to any phone within the US and Canada for less than $3 per month
- $30 per year; $8.85 for 3 months
- No connection fees charged for calls to US or Canadian phones.
B. International calls – rates start from 2.1¢ per minute. Rates based on destination country.
- 2.1¢ per minute to over 30 global destinations.
- Connection fee of 3.9¢ charged for each call.
- Buy Skype Credit to pay per-minute. The credits are deducted as SkypeOut calls are made.
2. SkypeIn – $18 for 3 months or $60 for a year. (currently available with Free Skype Voicemail service.)
SkypeIn is a personal number feature which allows to receive calls on Skype from landline and mobile callers made from any location. SkypeIn number can be setup as local for call makers as well as for call receivers depending on user preferences.
- Calls on Skype are received from ordinary phones.
- Calls can be answered from any place in the world when user is connected to Skype.
- No extra fees or per-minute charges to receive the calls on Skype.
- Buy up to 10 SkypeIn numbers from most US area codes and many foreign countries.
3. Skype Voicemail – 12 month subscription is $23;
3 months subscription is $6.90.
Skype Voicemail allows to leave voice messages to offline Skype contacts.
4. Skype SMS – sending SMS messages from Skype. Rates for Skype SMS vary depending on a region and country.
5. Skype Pro – $3 per month.
Skype Pro is a subscription that gives Skype users exclusive discounts, access to new Skype products and great international calling benefits.
Skype Pro includes:
- $30 discount on the annual price of a SkypeIn number.
- Free Skype To Go number
- Call Transfer
- International traveler calling plans (Pay nothing per minute for calls to landlines when you travel within 28 specific countries).
- Free Skype Voicemail
- Exclusive discounts on selected phones, headsets and webcams.

HARDWARE AND ACCESSORIES AVAILABLE FOR SKYPE
In order to use Skype on a computer user need to have:
- Headset (optional with microphone) or computer speakers
- Microphone
- Web camera (optional for video calls)
Another option of using Skype is VoIP phones. Skype sells several IP phones from various vendors. The following is a table of Skype certified accessories that can be purchased for use in the United States of America from the Skype online shop:

Download file


BASIC FINANCIAL STRUCTURE OF SKYPE
Skype is owned by eBay and in 3rd Quarter 2007 posted a total of $98 million in revenues. Ebay’s communication, or Skype, segment has increased 93% since September 2006. 83% of the revenue is from international markets. Skype makes the majority of its money by providing users access to PSTN networks through VoIP technology.

SKYPE TECHNOLOGY
Skype licenses software from third parties that is does not have control over, including the technology underlying its peer-to-peer architecture and firewall traversal technology, and the video compression/decompression used to provide high video quality. Skype has contracts with these technology providers, but there is no assurance that the technology will be available on commercially reasonable terms. In the case of unavailable third party technologies, the cost associated with developing independent technology could be very high. (Quarterly Report, 2007, p. 49)

AFFECTS ON SERVICE PROVIDERS
Many traditional telecommunications carriers, Internet companies, and cable providers offer, or have indicated that they plan to offer, VoIP products or a service that compete with the software Skype provides. These competitors are offering bundled services such as various forms of wireless communications, voice and data services, Internet access, and cable television. This puts Skype at a competitive disadvantage. (Quarterly Report, 2007, p. 60) Service Providers with long operating histories with name recognition and greater financial, marketing, and technical resources are able to offer VoIP services at substantially lower prices, eroding some of the smaller VoIP provider’s cost advantage. Service providers are acquiring and offering VoIP as the service continues to succeed.

VOICE OVER INTERNET PROTOCOL REGULATIONS AND THE AFFECT ON SKYPE
Businesses setting up Voice over Internet Protocol must be prepared for changes in the regulatory environment. Skype is currently bounded by very few, if any, of the same regulations that apply to traditional telephony and VoIP-based telephone replacement services. If Skype changes the product offerings, it may become subject to telecommunications regulations. There are various emergency service requirements, disability access requirements, user protection requirements, number assignment and portability requirements, and interception or wiretapping requirements that Skype may be required to meet. Such regulations could erode Skype’s pricing advantage by causing Skype to pay fees and charges. Competitors, including the telephone companies, may devote substantial lobbying efforts to seek greater protection for their existing businesses and increased regulation of VoIP. “New rules and regulations with respect to VoIP are being considered in various countries around the world, and at least some of these rules and regulations are likely to increase our costs of doing business and could prevent us from delivering our products and offerings over the Internet, which could adversely affect Skype’s customer base, and thus its revenue.” (Quarterly Report, 2007, p. 46)

OPERATING DIFFICULTIES
Skype experienced a system failure in August 2007 where the majority of users were unable to access Skype for approximately two days. The trigger of this interruption was a Microsoft update that rebooted many computers at once, causing a high number of users to automatically sign onto Skype upon the restart of the computer. This prompted a chain reaction that had a large impact (The Microsoft Connection Clarified, 2007). These kinds of failures in service result in immediate, and possibly substantial, loss of revenue. Skype is not fully redundant and the disaster recovery planning is not sufficient for all eventualities. (Quarterly Report, 2007, p. 45)


REFERENCES

What is free and what costs you a little money by Skype. (2007) Retrieved October 24 2007, from http://www.skype.com/products/priceoverview/?currency=USD&vat=YES#paid

SkypeOut – call any phone, anywhere in the world by Skype. (2007) Retrieved October 24 2007, from http://www.skype.com/products/skypeout/

SkypeIn – your personal number by Skype. (2007) Retrieved October 24 2007, from http://www.skype.com/products/skypein/

Skype Voicemail by Skype. (2007) Retrieved October 24 2007, from http://www.skype.com/products/skypevoicemail/

Skype Pro by Skype. (2007) Retrieved October 24 2007, from http://www.skype.com/products/skypepro/

Phones by Skype. (2007) Retrieved October 24 2007, from http://us.accessories.skype.com/DRHM/servlet/ControllerServlet?Action=DisplayCategoryListPage&SiteID=skype&Locale=en_US&Env=BASE&categoryID=4141800

Form 10-Q Quarterly Report, eBay Investor Relations (October 29, 2009) Retrieved October 29, 2007, from http://investor.ebay.com/annuals.cfm

The Microsoft connection clarified, eBay (August 21, 2007) Retrieved October 29, 2007, from http://about.skype.com/news.html

Old Business Strategy vs. New Business

My home for the summer was Byron Bay, Australia. This small town is surrounded by more small towns. The book stores are selective and the libraries are limited. After receiving the email regarding the summer reading requirements, I began my local search. Byron Bay is known for the alternative life style and free spirited residents. Instead of finding Tom Peters’ In Search of Excellence or Jim Collins’ Good to Great, I was more likely to find In search of Astrology and Gourds to Grapes: Your guide to organic living. So I used the internet. I ordered both books but received only one in the delivery. When I called to inquire about the lost book, I was informed that the book, In Search of Excellence, was over twenty years old and out of print in Australia. My immediate thoughts were “how is an old business management book going to relate to this more recent book written by Collins?” My understanding is as follows.

Tom Peters and Robert Waterman discovered eight shared principles in a matrix of successful companies from the 1980’s. Their book, In Search of Excellence, uses familiar themes that relate to the best-run businesses of the time. Although some themes seem palpable to business today, companies in the 1980’s may have viewed these principles as innovative philosophies.
For example, the fifth principle of In Search of Excellence is “hands-on, value-driven” (Peters, 279). This idea uses values enforced by an organization to achieve consistent results. A quote from the president of PepsiCo, Andy Pearson, reads “Perhaps the most subtle challenge facing us in the decade of the eighties is to ensure that PepsiCo remains an exciting place to work” (Peters, 291). Ironically, one of the values of my current employer, the Center for Information and Communication Sciences at Ball State University, is “work hard, play hard.” Did the Center adopt this belief after reading In Search of Excellence? I believe in all work environments, there must be a de-stressing method. This becomes obvious as the morale of the environment begins to fluctuate. In 1982, when Peters and Waterman published In Search of Excellence, this theme may have been a newer discovery. The other seven principles of In Search of Excellence still relate to management in this 21st century. However, instead of being innovative in the eyes of management today, these principles are familiar concepts necessary in all business.
Jim Collins and his team of researchers for Good to Great developed a similar framework of concepts necessary for companies to evolve. Although they are not broken down into the same categories, there are strong similarities between the concepts of Good to Great and In Search of Excellence. The “hands-on, value-driven” example from In Search of Excellence can be compared to the “culture of discipline” (Collins, 120) idea in Good to Great. Collins found that the good-to-great companies developed a consistent system with clear constraints, or values, but also allowed employees to have freedom and responsibility within the system of values (Collins, 125). This example illustrates the link between In Search of Excellence’s idea of using values to achieve consistent results and Good to Great’s concept of first enforcing values and then allowing freedom within a framework in order to produce results.
What keeps Good to Great from being an updated version of In Search of Excellence is the focus on managing the system rather than the people. Good to Great puts more emphasis on getting the right people on the bus, the wrong people off the bus, and then figuring out where to drive it (Collins, 41). This is a system to follow, not a lesson in how to inspire people to be in the right seat. In Search of Excellence highlights more manager/employee relationships, placing focus on how to get employees to be more productive. Good to Great’s response to unproductive employees would be why are they on the bus in the first place?
Now two weeks into the Center for Information and Communication Sciences program, I have an understanding for the importance of management and leadership. The use of examples throughout both books helped me think of each principle in relation to my field. The reference to technology in Good to Great was especially eye opening as I enter an information technology driven program. Technology is not the answer to everything. So I must learn how to use technology appropriately to be successful.
Referring back to my questionable thoughts on how a twenty year old business book can be applied to today’s industry; basic principles don’t change. In Search of Excellence surveyed successful companies to find a method behind their greatness. Two decades later, Good to Great was able to do comparable research, finding similar results. If in twenty more years another book is written, the basics will still be there. Overall, I enjoyed most of the two readings and look forward to more thought-provoking books in the future.


References Cited:
Peters, T.J, Waterman Jr., R.H. (1982). In Search of Excellence. New York: HarperCollins.

Collins, J. (2001). Good to Great: Why some companies make the leap…and others don’t. London: Random House Business Books.

Naming the Era

History class has taught students the names of many different eras from the past. Prehistoric, Ancient History, Middle Ages, and Modern Times are four of the main areas. These can then be broken down into times recognized by main events; the civilization of Mesopotamia, dark ages in Europe, rise of Islam, the Renaissance, liberal revolutions, and industrialism. http://studentsfriend.com/aids/curraids/timeline/4eras.html

What about now? What will the time we are living in be recognized for when our great-great grandchildren are in history class?

The word “information” has been around for several centuries. It comes from the Latin verb informare, to give form to, to form an idea of. Knowledge was thought to shape the mind, or form. So information is shaping our minds with knowledge. (www.oed.com)

Gathering and passing on information has always been a focus for education. “Information” is not a new idea for our current time period. The method of exchanging information, however, is new.

A term used for the network of computers is the “Information Superhighway.” While I was in elementary school, the Internet was just beginning to evolve. I can remember my father showing me websites and email – I asked “why?” As a third grader, I didn’t see the usefulness of this tool.

Middle school and high school began to teach me the meaning on this information superhighway. It took a while to turn away from the library’s card catalog and go straight to the Internet as a first source. Eventually, it was second nature. Now, I rely solely on the Internet for information, using the Library as a second source. Even when I do use the library, I search for resources online before physically going.

With the convenience of the Internet, I believe people have become hungrier for information. They want something straight away; they aren’t willing to wait. With this demand for urgency, I believe the need for accuracy is being sacrificed. Some are willing to believe anything they find on the Internet. Thus, our society is becoming corrupt with inaccurate information. But at least we get it quickly, right?

Going back to naming the time period we are in, I believe the time period can be called the “Information Renaissance.” This period evolved with the integration of all telecommunications devices to transmit data, or information, in real time over the Internet.

December 04, 2007

WiMAX in the World: Ideas for Investment

Introduction
Wireless telecommunications are evolving rapidly as countries attempt to support seamless networks that integrate all technologies. A standard based technology that can help make this happen is Wireless Interoperability for Microwave Access, or WiMAX. WiMAX delivers last mile broadband access through fixed, nomadic, and mobile connectivity over licensed radio frequency spectrum (Intel, 2007). The coverage area and capacity for WiMAX is much greater than previous wireless broadband technologies. The future of WiMAX is unfolding as more telecom companies adopt WiMAX as part of their plan for expansion. The following research provides information about where WiMAX is now and where its future may be for an area of investment.

WiMAX Today
The WiMAX Forum is an organization “formed to certify and promote the compatibility and interoperability of broadband wireless products” (WiMAX Forum, 2007). This organization run by industry leaders and has over 500 members. Another organization is the WiMAX Spectrum Owners Alliance, WiSOA. They are also focused on the regulation, commercialization and deployment of WiMAX technologies (WiOSA, 2007).
Newspapers, magazines and websites are discussing WiMAX more and more as deployment continues across the world. Over 55 countries with several locations have rolled out this technology. In the United States, Digital Bridge Communications was one of the first to set up a commercial WiMAX system. Digital Bridge Communications focuses on smaller towns with currently less broadband access. They are one of several companies to deploy WiMAX in the United States. Powerhouse broadband operator, Sprint Nextel, plan to offer WiMAX services beginning in Spring 2008.
As mentioned before, plans for WiMAX are popping up for most telecom companies. The race for spectrum licensing continues as companies worldwide continue to deploy WiMAX. In the news: the 2.6 GHz spectrum was just sold to the highest bidders in Norway; Italian Ministry of Communications is juggling guidelines for the upcoming auction of the 3.5 GHz spectrum; France and Germany recently auctioned off spectrum; and the Federal Communications Commission in the United States will release spectrum to the highest bidder in January 2008.
Recently, the biggest story regarding WiMAX comes from the Radiocommunication Sector of the International Telecommunications Union. On October 19, 2007 a decision was made to include WiMAX as a part of the IMT-2000 set of standards that defines third-generation technologies (ITU, 2007). Which leads into the discussion of the future.

Future of WiMAX
With the support from the ITU, deployment of voice, data and multimedia services to fixed and mobile devices has been increased. In a press release from the ITU, the president of the WiMAX forum states, “WiMAX technology currently has the potential to reach 2.7 billion people. Today's announcement expands the reach to a significantly larger global population."
The president and chairman of the WiMAX Forum is Ron Resnick, also a member of the Mobility Group at Intel. Intel is one of the leading providers of products for technological devices. They currently offer WiMAX chips that support fixed and mobile WiMAX. Now Intel has announced they will begin putting WiMAX/ Wi-Fi modules in notebooks beginning in 2008. By installing compatible chipsets in devices, the opportunity for WiMAX to advance will greatly increase.
Intel isn’t the only telecommunications manufacturer that is offering WiMAX technologies. Samsung products are also being built to support WiMAX with picoChip (WiMAX Day, 2007).

Suggested Area of Investment
Companies soaking up the spectrum space are deploying WiMAX as fast as possible. Investing in these companies isn’t a bad idea, however the largest prospective investment area is the chipset manufactures. WiMAX services will be available to those with the proper technology. How do you get this technology? You buy the chipset to support it. With Intel and many others producing chipsets for WiMAX, this investment area can be expected to see an increase as deployment continues to rise.

In conclusion, WiMAX is proving to be a large prospect for venture capitalists to invest. From success stories, to 2008 outlook plans, WiMAX is a solid technology that is changing broadband connectivity.

Happy Birthday USA Today

Growing up in a suburb of Cincinnati, we had the daily Cincinnati Enquirer and a weekly township newspaper for local news. High school students thrived on who made the front page of the sports section. If you made the front page of the whole paper, you were big news for that day. Although the limelight of being on the front page isn’t extinct, trends are shifting more towards the latest discussion on high school blog sites for local sports and gossip. From this, I feel the predicted down fall of newspapers stated in the USA Today article will affect local newspapers before taking a stab at national news. (Article found here: Download file )

Another observation I found interesting was the lean towards customized Internet homepages. Many people choose to include the local weather and the national news that pertains to them. Instead of concluding that printed newspapers are doomed as they run against online editions, when will printed newspapers become customizable? The Wall Street Journal comes stamped with my address. I typically leaf through the paper looking for headlines that interest me and the rest is rubbish. Some may argue that it would be nicer not having to sift through the paper each day to search for their news interests. These people could adjust what sections are delivered to their house. This would also assist the advertising sales of a newspaper knowing exactly what houses are seeing what ads.

In conclusion, the printed newspaper isn’t going to fade out with in the next 25 years. Like all other media, adjustments will need to be made in order to satisfy customers.