Archive for February 7, 2011

AOL Profits Come From Misinformed Customers

AOL Profits Come From Misinformed CustomersThe Huffington Post notes a New Yorker article (sub req) by Ken Auletta who describes how America Online (AOL)  makes its profit. The article claims that 80% of America Online’s profits come from subscribers, and 75% of those subscribers are paying AOL for something they don’t actually need.

According to Mr. Auletta AOL still gets eighty percent of its profits from subscribers, many of whom are older people who have cable or DSL service but don’t realize that they need not pay an extra $25.00 a month to get online and check their e-mail. “The dirty little secret,” a former AOL executive says, “is that seventy-five percent of the people who subscribe to AOL’s dial-up service don’t need it.”

The HuffPost says a full 60% of AOL’s profits come from mostly older misinformed customers who don’t realize that they don’t need to subscribe to AOL to get online. Although the number of subscribers has sharply decreased from thirty-five million in 2002 to just over four million today, that is still a hefty number of confused people getting nothing for their money.

In an update on the Huffington Post, it says that This post originally assumed that all of AOL’s subscribers received dial-up. According to AOL’s corporate communication office, there are various plans offered and dial-up is not included in all of them. However, AOL declined to say what percentage of subscribers did not receive dial-up.

The HuffPost points that this may not be a scam, as Business Insider mistakenly suggested earlier, but it does seem to suggest that AOL could be doing more to keep their customers informed about the service they offer. Business Insider provides a handy set of screen captures to show customers exactly how to unsubscribe.

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AOL really, they are still around?

Now that AOL has bought the Huffington Post would they carry this story?

When was the last time you used AOL?

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

LinkedIn Lacks Real-Time Backup

LinkedIn Lacks Real-Time BackupIt is always smart to have a backup plan. However, the IPO filings for social media giant LinkedIn revealed they do not have a backup plan. Mashable has a nice summary of LinkedIn’s SEC S-1 form. The business networking site does not have a backup plan. announced that it plans to raise at least $175 million in the initial public offering. According to the forms, LinkedIn earned $161.4 million in revenue from January 2010 to September 2010.

The revenue came from three products:

  • Job listings – 41%
  • Advertising – 32%
  • Premium subscriptions 27%.

Real-time backup data center

Data Center Knowledge found in the IPO was that LinkedIn does not have a real-time backup data center. The article says that a failure of the social media firms primary data center would knock its LinkedIn.com site offline.

We recently implemented a disaster recovery program, which allows us to move production to a backup data center in the event of a catastrophe. Although this program is functional, it does not yet offer a real-time backup data center, so if our primary data center shuts down, there will be a time that the website will remain shut down while the transition to the backup data center takes place” LinkedIn said on page 14 of the SEC filing. The company has key infrastructure located in San Francisco and southern California, which are both prone to earthquakes. “Despite any precautions, we may take, the occurrence of a natural disaster or other unanticipated problems at our hosting facilities could result in lengthy interruptions in our services,” the company said.

The social media site has taken steps to protect its user data. Data Center Knowledge reported that LinkedIn was deploying a business continuity program in an Equinix (EQIX) data center in Chicago. The company said it already housed equipment in Equinix data centers in California. In December 2010, LinkedIn opened a new data center in Los Angeles, saying that the expansion would give “an additional, more robust data center that not only helps us handle the increasing traffic load on our servers, but to also provide more redundancy in case of an emergency.

Data Center Knowledge summarizes that LinkedIn has its backup data stored in a remote data center using a “cold ” or “warm” backup configuration. These approaches don’t provide an instant rollover in the event of a major downtime event but allow a site owner to redeploy the site from the most recent backup. Servers in the backup data center are typically configured with the required software and applications, so they’re ready to be deployed as needed. LinkedIn didn’t indicate how long it might be offline in the event of a data center failure.

Multiple data centers

The Data Center Knowledge article points out that larger Internet companies like Google (GOOG), Microsoft (MSFT), Yahoo (YHOO), and Facebook have multiple data centers and can use their network to quickly shift workloads between different facilities. LinkedIn’s infrastructure has not yet reached that scale. The article suggests that  LinkedIn has not arranged for a real-time backup set up because of the challenges it presents for database-driven sites.  The article uses Facebook’s experience when the social networker added its first East Coast data center in Virginia. The Facebook engineering team found that setting up a second site serving real-time data created “two main application-level challenges: cache consistency and traffic routing,” according to a blog entry by Facebook’s Jason Sobel.

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I have been on LinkedIn for quite a while and never gave their DRP a second thought. Maybe because I didn’t need the job networking connections until recently. Seems to me that if LinkedIn wants to compete with social media favorite Facebook, and grow the paid portions of the site, they need to have 24x7x365 availability. Hopefully, that is in the development pipeline after they raise their $175 million in the IPO.

Is a real-time backup data center a must have for LinkedIn to continue to grow?

Have you had real success with landing your next gig with LinkedIn? Facebook?

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Chinese Taking Over the Web

Chinese Chinese Taking Over the Webwill be the Internet’s number one language according to TechEye. English was the founding language of the web but the growing number of Chinese online is changing the web’s dominant language to Chinese, a Nextweb report suggests.

number of Chinese online had reached 457 million by the end of 2010The China Internet Network Information Center (CINIC) reports the number of Chinese online had reached 457 million by the end of 2010. China Tech News points out that since 2007, China has added 320 million Internet users, slightly more than the entire population of the United States (308 million).

China Tech News also reports that the number of mobile Internet users logging in via smartphones or other mobile devices in China reached 303 million in 2010. Pretty impressive considering the U.S. only has 230 million people with Internet access.

The Chinese are trying to capitalize on this. Recently, the PRC’s General Administration of Press and Publication announced (Google translation) a ban on mixing foreign words in Chinese language newspapers, magazines, and websites without an accompanying Chinese language translation. The ban includes the names of people and places, acronyms, abbreviations, and common phrases, all of which have become increasingly common in China over recent years.

What do you think?

Will Chinese be the lingua franca of business in the for the rest of the 21st century?

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.