Saturday Highlights: Lessons learned from AOL-Time Warner merger; On getting more cash out of SaaS



15 years later, lessons from the failed AOL-Time Warner merger (Fortune)
Must Read.

Getting More Cash Out Of SaaS: Timing Is Everything (TechCrunch)
By Nino Marakovic, CEO and managing director of Sapphire Ventures (formerly SAP Ventures).

Sometimes Cutting R&D Spending Can Yield More Innovation (Harvard Business Review)
Intersting article looking at R&D at Cisco, authored by Fox Business and St. Joes' profs.
As an aside, I've always questioned the accounting definition of R&D spending and what goes into it. If you look at IBM over the past 30 years or so, you wonder where the return on R&D is. They do some great stuff, of course, but its not clear how its contributed to market capitalization.
IBM has a market cap of $157 million, yet over the last 20 years its spent over $100 billion on R&D, and that excludes the billions its spent on acquisitions and capital expenditures. So where's the value creation?

Nelson Peltz's plan to bust up DuPont doesn't add up
(Fortune)
Again, question of value creation.



For Internet of Things, Chaos Reigns (Clutter, Too) (Zatz Not Funny!)


Links 1/8/2015: D & B acquires Edison Partners-backed NetProspex for $125 million; Jet.com readies launch



Amazon Bought This Man's Company. Now He's Coming for Them (Business Week)
Marc Lore's Jet.com is close to launch.

Say What? Texas Instruments to power Comcast voice recognition remote controls (Dallas Business Journal)

Google, Amazon Get Query From U.S. on Comcast’s Cable Merger (Bloomberg)


CRF Health Announces Investment by Vitruvian Partners to Support Growth (PR Newswire)
CRF Health's North American headquarters are located in Plymouth Meeting.

Dun & Bradstreet Acquires NetProspex to Deliver Largest Global Reach and Insight on Companies and the People Who Run Them (Marketwire)
Edison Partners has been the leading investor in Massachusetts-based NetProspex.


Fingerpaint moves Philadelphia office into larger space (Albany Business Review)

LG Electronics Partners with Dow to Commercialize LGs New Ultra HD TV with Quantum Dot Technology
(Business Wire)

Setting the tone for 2015: CRM begat Social CRM which begat customer engagement (Paul Greenberg/Enterprise Irregulars)

Oracle Challenges Spark Caution; Estimates Lowered (Investor's Business
Daily)


Does Dish's Sling TV offer better value than cable? Comcast says not really


Tom Paine



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Think OTT (Over the top) offerings such as Dish's newly announced Sling TV will offer better value? Well, Comcast Cable CEO Neil Smit tried to rebut that notion while speaking at the Citi 2015 Global Internet, Media & Telecommunications Conference in Las Vegas this week, as quoted by the Hollywood Reporter:

"Reading about Sling TV, I was comparing it to what an equivalent offer would be for us," he said. "We offer a performance-based broadband product along with a digital television selection, which includes ESPN and all the broadcast networks, for a ... price of about $80. If you were to compare that to the $20 of the Dish [over-the-top service] plus our ... pricing of performance broadband at about $67, we are actually a lower-priced offer all-in, offering broadcast, multiple streams, a fundamentally, I think, better product if you include the broadband you are going to need to [get] the service."

So in other words, there is no free lunch and no better alternative to your local cable company?

Smit did say that pay TV and video providers will engage in "more experimentation" to target younger people and the financially conscious, citing Comcast's own "Internet Plus" service that launched in 2013.

But MoffettNathanson analyst Craig Moffett said that "this product (Sling TV) will find a niche and that its pricing will be genuinely disruptive", though he doesn't expect it to take the world by storm.



Links 1/7/2015: NewSpring Capital invests $13 million in Massachusetts SaaS firm; NBC says Super Bowl is 95% sold out







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Amazon Data Center Project in Virginia Stumbles Over Power Line Opposition (Data Center Knowledge)
Similar to what happened to Delaware project.

Why is a digital marketing firm based in Fort Mill, SC valued at more than $1 billion? Find out here.

Software firm SiteSpect takes $13M investment [from NewSpring Capital] for first time in 10 years (Boston Business Journal)

NBC Says Super Bowl Is 95% Sold Out (Broadcasting & Cable)

FCC Grants Waiver for Bloomberg TV Positioning (Multichannel News)

Tom Wheeler says FCC will vote on net neutrality on February 26th (The Verge)


Charter Thinks Outside the 'Worldbox'
(Light Reading)

CES: Philly-based Stream TV Networks Touts Glasses-Free 3DTV (Multichannel News)


Keystone NAP: First "KeyBlock module" delivered to site


Tom Paine



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Keystone NAP, the new modular data center facility located at the old US Steel Fairless Works in Bucks County that announced in November it was opening in early 2015, today said its first KeyBlock module has arrived. Additional modules will ship over the next few weeks.



A full KeyBlock, measuring roughly 45 feet by 21 feet and weighing over 50,000 lbs, is delivered in two sections. Custom-designed KeyBlock IT modules were co-developed with electrical equipment giant Schneider Electric. The modules can be tailored to meet the needs of individual clients, resulting in increased efficiencies.

Keystone NAP refers to itself as "the only advanced data center serving the Philadelphia, New Jersey, and New York markets." It was founded by experienced Philadelphia entrepreneur Peter Ritz (Xtium, AirClic) and received Series A1 funding from a group of Philadelphia investors led by Ira Lubert (of LLR Partners and several Philadelphia-area investment groups) and other investors arranged by DH Capital.


Links 1/6/2014: Verizon CEO says not looking to acquire AOL; Zonoff to Demonstrate New Product Integrations and Platform Innovations at CES 2015






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Verizon Has Approached AOL for Possible Takeover or Joint Venture (Bloomberg)

Verizon Not Looking to Acquire AOL, CEO Says (Hollywood Reporter)

Verizon Has More Pressing Calls to Make Than AOL (Wall Street Journal: Heard on the Street)

Verizon wants to sell 'antiquated' copper assets, stick to wireless for voice (The Register)



Dish Network Unveils Sling, a Streaming Service to Rival Cable (and It Has ESPN) (NY Times)

Analysts, Comcast Exec: Dish's Sling Service Won't Upend Pay TV (Hollywood Reporter)


Broadcom, Comcast prep for gigabit cable service to begin in 2015 (PC World)


Comcast-owned Fandango Brings Its Web Video Series To Hulu (TechCrunch)

SmartThings’ next-generation hub will support Thread and the OIC (Gigaom)

Zonoff to Demonstrate New Product Integrations and Platform Innovations at CES 2015
(Marketwire)


Salesforce VC John Somorjai is watching these 4 trends in 2015 (Silicon Valley Business Journal)

Two Concur co-founders to leave following SAP acquisition (PC World)

UPMC: New Leaders, Same Big Health Tech Ambitions (Information Week)

Plane-sharing startup Flytenow fights back against FAA with lawsuit (Boston Business Journal)
Flytenow has funding from First Round Capital's Dorm Room Fund.


PTN Repost from October: Neat, after period of organizational changes, seeks broader market


Tom Paine



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The Neat Company and HP announced in late September that HP was bundling Neat's Smart Organization System, the cloud-based scanning and information extraction and storage tool, with HP's Officejet 8040 printer. The partnership is a first for Neat, which has sold its products separately through retail and online channels in the past. Neat is not contributing any hardware, but only its cloud software service.

The HP Officejet 8040 with Neat e-All-in-One Printer is available in the United States for a starting price of $399 in retail stores and online. That includes a three-year subscription to the NeatCloud service.

The recently announced intent to split HP into two companies is not expected to have any impact on the product, which will fall under HP's proposed Printers and PC business.

Whether the bundling of its products with others will be a major boost for Neat remains unclear, but the HP arrangement continues a shift away from hardware towards software which has been occurring for some time, although Neat Vice President-Product Management Chris Barbier stressed in an interview with Philly Tech News that it is still very much in the hardware business and the HP offering doesn't replace any existing Neat product.

Neat has gone through many changes over the past two years, since reporting revenue of $110 million in 2012. Almost the entire senior management team has turned over, and Ron Kaiser, a board member since 2012 who has served with other Edison Partners (Neat's principle investor) ventures, replaced Jim Foster as interim CEO late last year, though Foster is still on Neat's board (correction: Foster is no longer on the board, though the company tells me the relationship is amicable). A Neat spokesperson tells me a new permanent CEO will be named soon.

Comments on Glassdoor (admittedly not always a reliable indicator) do suggest with some consistency that 2013 was a rough year organizationally and financially, although no update on the financial picture was offered by the company. But it did provide this response to my inquiry:

"Last year Neat accelerated the company’s efforts toward its cloud strategy – opening up an entirely new chapter in the company story. The release of NeatConnect (already one of the Nations’ leading Wi-Fi scanners) and the advancement of NeatCloud and Neat’s mobile application took precedence over our traditional hardware and desktop software. Integrating our cloud capabilities into other manufacturers’ hardware is another example of our evolved approach. That evolution has been reflected in the changing interests and skill sets of the Neat team over time.”

Neat's total customer base, I confirmed, has roughly doubled from the 1 million that it indicated it was at when I spoke with them about two years ago.

Bsrbier said Neat is placing more emphasis on the SME (small and medium enterprises) segment in addition to the SOHO (small office, home office) segment, but is not going after the large enterprise segment. The HP announcement seems targeted more at the SOHO market, though. I see some indications that Neat might be over its rough spot (though no confirmation), and its WiFi-enabled NeatConnect product introduced late last year was well received. Barbier indicated Neat may expand its applications to encompass other accounting and customer relations management tasks.

Edison could be looking towards a future exit strategy for Neat, though I'm not sure if Neat is a strong enough or broad enough standalone play for an IPO right now. Perhaps a sale to a larger company could occur, but a combination of companies with complementary technologies serving the SOHO & SME markets might be intriguing. In the mean time, it might try more joint product partnerships.

Update November 5: Neat names Jeff Dickerson Chief Executive Officer.

Update November 11: Neat Announces Seamless Integrations with Intuit’s QuickBooks Online


Sunday Highlights 1/4: David Frost's son invests £3 million in Wayne's BizEuity as UK site launches



Broken Cap Tables (A VC)

David Frost's son Miles invests £3m in Wayne-based BizEquity as company valuation tool launches in Britain (The Sunday Mail)


Best in the biz? Buffett vs. Malone closer than you think (New York Post)


Cable's Lame Role in Health Tech (Multichannel News)

International CES: The Internet of Things Hits Homes (New York Times)


Philly Tech People News 1/4/2015








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Maffei to stay on as CEO of Liberty Media, Liberty Interactive (Denver Business Journal)
Maffei's responsibilities include QVC Group.

Fascinating People I Met in 2014 (Bill McDermott/SAP Community Network)


Kristy Neckowicz Appointed As President of InVizion LLC (Press Release)

Shintaro Kaido has been appointed Director, Drexel Ventures at Drexel University. He previously launched a startup accelerator in Tulsa and Oklahoma City, i2E Immersion Accelerator, where he was accountable for accelerator and Series A deals totaling $2.44M as principal.

Philadelphia medical device firm continues to rebuild management ranks with new CFO (Philadelphia Business Journal)