Dell Spins Tablet Launch

Yesterday Dell announced their new tablet. The technology media wrote about it, and it got some good buzz. The first thing that went through my mind was, how does this jive with their deal to re-sell Motion tablets? Are they competing now? Did Motion just lose a huge reseller?

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As you can see from the picture, Dell’s new Latitude XT is actually a convertible. It looks kind of like a regular laptop, but then the screen spins around and lays down against the keyboard, screen up, so that you can use it as a tablet. They also announced that it will have "capacitive touch" which I guess means you can use the screen with your finger, kind of like an iPhone. With a motion tablet, you use a special stylus on the touch screen.

So it’s not really a direct competitor, since the Motion computer is an actual tablet, and not a convertible. You can buy a small external keyboard for it, and then it acts pretty much like a laptop too.

The biggest shocker was the price. It starts at $2499, so by the time you add enough RAM to run Vista and MS Office, plus other goodies you’re definitely talking about $4K for a decently working machine. Toshiba has had offerings in this market for a while, and they’re definitely more cost competitive. Dell has always had a reputation is a low cost provider because of their direct-to-consumer model, but these days buying Dell definitely means you’re paying a premium. Maybe people will call it the "Michael Dell Tax" the same way people used to complain about the premium for Apple equipment.

In our estimation, the headlines should have read "Dell Takes High Priced Convertible for a Spin."

Q&A Wednesday: AdRevolution

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Today’s Q&A Wednesday is with Andrew Westmoreland, the CEO and Founder of AdRevolution, who is growing a company that truly lives up to it’s name. The media industry is experiencing rapid change, fueled by the way consumers are using technology. AdRevolution is taking a fresh approach.

Q: How did you first get the idea for ADRevolution?

The desire to make ads people like fueled the creation of ADRevolution.  The answer to the advertising arms race is relevant, personalized advertising. 

Q: Give us the elevator pitch for the company. How important and revolutionary is 1:1 advertising?

Our solution is the ideal advertising marketplace that fundamentally aligns the interests of all stakeholders in digital media. We enable advertisers to achieve quantifiable results, ending the mystery of ad dollar effectiveness. We also automate the time and labor intensive process of media buying. All of this creates an exponential increase in efficiency that saves countless wasted ad dollars.

1:1 advertising transforms advertising. All of us as consumers will no longer be bombarded with irrelevant junk that is useless to our lives. For the first time ever, advertisers can dialogue with the individual that is interested in their product or service, not simply blast their ad before millions of people. What does this mean for business as we know it? Methods of acquiring new customers will never be the same again, and the whole ad world will necessarily change. Check out IBM’s “The end of advertising as we know it”. They paint a very interesting picture of the future.

Q: How have you funded the company so far?

I have personally funded the company to the tune of about $2.5m.

Q: You’ve spent a lot of time refining the technology before launching. What did you learn during the "beta" period?

We’ve accepted that we’re doing something completely unique; there is no pre-planned path to success.  We have to constantly analyze how the environment is changing, and adapt to shifts extremely rapidly.  We also can’t always predict the source of bottlenecks or stability issues.  Even with the best planning, we encounter unique challenges that require our engineers to be highly creative and nimble in their approach.

I’ve also personally accepted that consumer behavior is extremely difficult to predict.  We have to constantly try new approaches in order to improve results for our clients.

Q: What can we expect to see in the future from ADRevolution?

Two things:

  1. We will grow the marketplace by adding new buyers (advertisers) and sellers (publishers/distributors) at a constantly increasing rate.
  2. We will continually improve the technology, thus the revenue results derived for our clients.

In the short term stay tuned for an announcement regarding a deal we just signed with one of the largest online advertising companies in the world.  It’s been pretty exciting around here.

FiveRuns Partners with ELC Technologies

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FiveRuns announced a partnership today with California-based ELC Technologies. ELC claims to have the largest global team of dedicated Ruby on Rails developers. ELC has delivered Rails applications for such large corporations as Cisco, Buy.com, and MediaTrust. FiveRuns brings enterprise-class monitoring and management to Ruby applications.

“We have repeatedly demonstrated the value of Rails for business-critical
applications to the global companies we have as clients. However, one of the
greatest challenges our clients face is monitoring and maintaining Rails within
large-scale enterprise environments,” said Jonathan Siegel, founder and
president of ELC Technologies. “Working with FiveRuns will allow our clients to
easily manage their Rails deployments using FiveRuns’ tools — and to demonstrate
for themselves that Rails can deliver enterprise performance as well as
shortening time to deployment.”

Spiceworks Hits 200K User Mark; Launches 2.0

Spiceworks LogoSpiceworks, a rapidly growing innovator of ad-supported IT management software, today announced that they had hit the 200,000 user mark which doubles their user base in just six months. The company now has users in all 194 countries of the world. They also announced the release of version 2.0 of their product, as well as some new advertising partners. Continue reading

Spiceworks Hits 200K User Mark; Launches 2.0

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Spiceworks, a rapidly growing innovator of ad-supported IT management software, today announced that they had hit the 200,000 user mark which doubles their user base in just six months. The company now has users in all 194 countries of the world. They also announced the release of version 2.0 of their product, as well as some new advertising partners.

Version 2 adds some significant features, such as windows event log monitoring, faster network discovery time on larger networks, product reviews and ratings from the Spiceworks community, and private messaging between members of the community. "Today we’ve achieved major milestones in terms of our product development life cycle, community growth, and the advertising partners we have on board," said Scott Abel, co-founder and CEO. New advertising partners include Microsoft, Brother, Symantec, and Verio who join existing partners HP, McAfee, Netgear, and Sony (just to name a few).

For more information on Spiceworks you can read their Q&A Wednesday feature.

Asuragen Raises $18.5M Series B

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Austin-based Asuragen released news today that they’ve raised an $18.5M Series B round of funding. The Series A funding was $49M, and investors Telegraph Hill Partners and Growth Capital Partners have returned, with Austin-based PTV Sciences adding money into this round. Asuragen is the new company of Ambion founder Matt Winkler. Matt sold Ambion for $273M and also received an Ernst & Young Entrepreneur of the Year award for his achievements. His new company is figuring out how to combat cancer with microRNA. The Statesman has a great story about the company today.

Last month Asuragen announced a deal with Merck to develop a biomarker and a gene-based drug for Merck’s cancer research programs.

Texas Ignition Program

The UT Board of Regents voted Thursday to approve the creation of a $2M fund to help encourage commercial development of innovative ideas at all 15 UT System institutions. Grants will be given in amounts up to $50,000. The program is designed to complement other Texas economic development efforts; the Emerging Technology Fund (ETF) and the Texas Enterprise Fund.

While $2M total, and $50,000 per idea seems like a small amount for an institution with a multi billion dollar endowment, it’s generally the early stage seed money that is hard to come by. This might be just the right amount of money to get an idea from a lab in the UT System to a viable demo, beta test, or prototype. That is when more traditional means of investment can come into play.

Nanocoolers Shutting Down

Usually at Austin Startup we get to write about exciting developments such as new financings or exit events.  But, today we have to report on the decidedly more difficult aspect of being an entrepreneur: shutting down a company.  Nanocoolers, which was attempting to develop semiconductor technology-based cooling for processors, electronic systems and enclosures, has announced it is shutting down.  Founded in 2002, the Company had raised more than $24 million in venture financing, but was unable to close their next round of financing, and on November 30 closed its doors.  According to Krishna Srinivasan, a board member and Partner at Austin Ventures: "To put it very simply, the technical challenges have proved to be substantial, and after many years of trying, we just have not been able to solve the problem."

This is an unfortunate development for both Austin Ventures and the Emerging Technology Fund, the $295 million emerging tech fund form by the State of Texas in 2005, which awarded the company $3 million in March.  While basic statistics forecast that we are bound to see some of the startup companies in the Austin area fold, it doesn’t make it any easier.   Here is to better luck in the next iteration for all involved with Nanocoolers!

Sailpoint Partners With PWC and Releases Upgrade

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Sailpoint Technologies announced a partnership today with leading accounting and consulting firm PriceWaterhouseCoopers. PWC will utilize Sailpoint’s Compliance IQ products in their delivery of consulting around identity and risk management. In a recent global security report from PWC, 78% of surveyed organizations state they do not continuously classify data and information assets by risk level, and SailPoint’s surveys show that a risk-based approach to identity management would be more effective. "Organizations who focus on a risk-based approach to solving the identity management challenge will realize greater value overall," said Jerry Lewis who is the national identity management leader for PWC.

In conjunction with today’s news about PriceWaterhouseCoopers, Sailpoint announced the next generation (version 2.0) of their Compliance IQ product. The new version contains enhanced capabilities in the definition of roles within organizations, support for business friendly descriptors for entitlement names, and workflow features to management the lifecycle of roles.

Researchers Overly Pessimistic on New Technology

I just thought I would share this excerpt with you. It came from an article discussing how overly pessimistic most researchers are on the pace of new discoveries and the evolution of technology.

On October 9, 1903 two interesting things happened.

The New York Times wrote "Hence, if it requires, say, a thousand years to fit for easy flight a bird which started with rudimentary wings… the flying machine that will really fly might be evolved by the combined and continuous efforts of mathematicians and mechanicians in from one million to ten million years…"

On that same day in North Carolina, Orville Wright wrote in his diary.

"We unpacked rest of goods for new machine. We started assembly today."

On December 17th of that same year they made history.