Guest Post: Could Networks Become Houses of Cards?



Alex Conners




NetFlix announced last week its first original series, House of Cards. According to a recent NYTimes article, the first 13 episodes of House of Cards are already available on NetFlix. This upfront investment – much different than the way standard TV shows are produced - is a foreshadowing of what’s to come for streaming Internet television. The reality is DVD and BluRay relevance is changing, the way the relevance of physical books changed with the Kindle, Nook and tablets. And now it seems traditional television broadcasting is also being challenged by online video from companies like NetFlix, Amazon Prime, HBO Go and Hulu.

Therefore, my concern is less about the success of the show House of Cards. It is only a matter of time before NetFlix develops an original series or movie that’s an instant success. Frankly the success of NetFlix’s move to create an original series relies less on plot, actors, writers and storylines. The longterm success of this venture will depend on the quality of viewer experience.


The irony of the whole thing – the show title House of Cards, could become a metaphor for the networks it’s streamed on.

According to the Wikipedia page for the phrase House of Cards, “… the expression dates back to 1645. It means a structure or argument built on a shaky foundation or one that will collapse if a necessary (but possibly overlooked or underappreciated) element is removed."

If NetFlix and other companies (Hulu, Amazon Prime and HBO Go) over time start streaming on “shaky [network] foundation[s]” and network management is "overlooked or underappreciated," it could be a disaster.

Today, NetFlix accounts for about a third of all peak Internet bandwidth consumption. But this is only the start. Sandvine, the provider of broadband network solutions for fixed and mobile operators, forecasts that real-time entertainment will be one of the biggest growth areas in data consumption. Sandvine also predicts streaming will account for two thirds of peak bandwidth consumption by 2015. Lastly, Sandvine expects the 2014 World Cup will be the most streamed event in Internet history.

The conclusion - scalable big data network and IT performance management will be imperative to ensure superior quality of viewer experience.

Also remember - the infrastructure challenges aren’t limited to home delivery. Even with high-speed LTE networks expanding across the globe, wireless networks will continue to face congestion problems as mobile device use increases and access to streaming video dominates tablet usage.

Businesses are constantly at risk of network outages and failures. We’ve seen firsthand two examples in the last week alone – Twitter and Amazon both had network crashes in the last month.

Twitter and Amazon aside, my question is this: Is the market prepared for the potential infrastructure issues that could result if NetFlix and the other mentioned content providers continue to create extremely high demand for award-winning programming that is only available online?

Alex Conners manages Wilmington-based SevOne, Inc’s blog,  Rethink IT Performance. According to its website, SevOne provides the world’s fastest, most scalable IT management and reporting platform, delivered as an all-in-one solution, to help you detect and avoid performance events before they impact you business. On January 15, 2013 SevOne announced receiving a $150 million investment from Bain Capital. This article appeared earlier this month in Rethink IT Performance.




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Daily Links 2/20/2013: SAP Founder Plattner Joins Club of Billionaire Donors





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Ed tech accelerators go corporate: Pearson and Kaplan launch startup programs (Gigaom)

Giving Pledge: SAP Founder Plattner Joins Club of Billionaire Donors (Spiegel Online)

SAP Says Plattner Keeping $9.7 Billion Stake Amid Gates Pledge (Bloomberg)

Cloud Computing 101: Start Here to Avoid Cloud Confusion (ASUG News)

Salesforce CEO Benioff Tries Out Some New Material (Bloomberg)

Conshohocken big data firm Monetate says world is ready for it now (Philadelphia Business Journal)

Comcast Business Services Unveils Upware - a Cloud-Based Business-to-Business Software Marketplace for Small Business Customers (Business Wire)

Bidder From China Leads in Fisker Acquisition Talks (Wall Street Journal: Venture Capital Dispatch)
Bye Bye, Delaware!




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Daily Links 2/19/2013: Comcast trying out prepaid Internet Service in Philly





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ICG Increases Ownership in SeaPass Solutions (Globe Newswire)

Curalate Pairs Pinterest, Instagram Analytics Also adds promotions tool for photo-sharing service (Adweek)

Company News: TicketLeap Names Tim Raybould as President and COO; Chris Stanchak as Chairman of the Board
(TicketLeap Blog)

Business Modelling And Planning Solution Anaplan Acquires Vue Analytics, Hires Ex-SAP France COO To Head Up Its European HQ (TechCrunch)

Synygy Rolls Out New Data Management Application for Optymyze (Business Wire)

AppExchange Seven Years On (Denis Pombriant/Enterprise Irregulars)

NBC's 44% Plunge Reveals: Football Has Become TV's Addiction
Pigskin Carried the Peacock in Fourth Quarter, Showing TV's Reliance on Sports
(Ad Age)

Comcast Pitches Pre-Paid Internet Service (Light Reading Cable)

CAN AEREO DISRUPT THE TV BUSINESS? (KEN AULETTA/The New Yorker)

Bloomberg’s parting gift to NYC tech: an online hub to make doing tech in NY easier (PandoDaily)

Berwyn-based Diagonal Consulting acquired (Philadelphia Inquirer)
SAP consultant in quick sale after UK parent 2e2 goes bust.


Unisys Awarded Contract to Support IRS Mission-Critical Computing Systems (PR Newswire)

Get ready for a credit-card war in Wilmington (Delaware Online: Delaware Inc.)




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The Founder Institute launching "exploratory" Philly program in Spring; info sessions this & next week





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The Founder Institute, which describes itself as the "World's Largest Startup Accelerator, with a mission to globalize Silicon Valley and help founders build enduring technology companies", is starting what it calls on its home page an "exploratory" Spring 2013 Philadelphia program. Applications are due on April 13 and sessions will occur from April 30 to August 13, 2013.

The part-time program enables would-be founders to develop and shape their business plans without leaving their day jobs, under the tutelage of experienced CEOs and entrepreneurs. The Institute, founded in 2009 by serial entrepreneur Adeo Ressi in California, says it has helped launch over 650 venture in 39 cities.

The Founder Institute will kick off its Philly program with a free information session and Pitch Boot Camp on Thursday, February 21 at 6pm at the offices of Seed Philly, 1650 Arch Street, Philadelphia. Guest speakers for the evening include Brett Topche, Managing Director of MentorTech Ventures and Mike Krupit, COO & Co-Founder, Real Food Works. Another free information session will be held on February 28 at 6pm at Seed Philly, featuring talks by DuckDuckGo founder Gabriel Weinberg and WizeHive CEO Mike Levinson.

Also, David Nevas, Principal at Edison Ventures will make an appearance at Coffee & Capital at Quorum, University Science Center on February 21 at 8am.




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Daily Links 2/18/2013: Berwyn-based SAP consultant Diagonal acquired



Who's Right In The Oracle-Forrester Slugfest?
(Read Write Enterprise)

Diagonal Consulting is acquired by G3 Global (Business Wire)
SAP consultant Diagonal is based in Berwyn.

Comcast Buys NBCUniversal (Guest Cartoonist Mike Peters) (The Moderate Voice)

LG Display to invest $657 million in OLED industry (ZDNet)
What might this mean for Ewing, NJ-based Universal Display (PANL)?

Infor Streamlines the Online Orientation Process for the Pennsylvania Office of Administration (Marketwire)





HealthShare will let insurers and health-care providers share patients' data electronically (Philadelphia Inquirer)



Philly Tech People News 2/17/2013







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MeetMe® Names David Clark as Chief Financial Officer (Marketwire)
Was previously CFO of Nutrisystem.

Tribune Appoints Larry Wert As President Of Local Broadcasting (PR Newswire)

Welcome Aboard, Captain Lance (Delphic Digital)

Retired InterDigital Vice President and Chief Scientist Brian Kiernan Named Recipient of IEEE Computer Society Hans Karlsson Award (PR Newswire)

Elemica's Rich Katz Named 2013 Supplier Pro to Know by Supply & Demand Chain Executive Magazine (Marketwire)

RatnerPrestia Welcomes IP Litigator, Robert A. McKinley (PR Web)




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The Real Battle At Dell (Roman Stanek/TechCrunch)


Daily Links 2/15/2013: NBA debuts SAP HANA-powered stats





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NBA debuts HANA-powered stats (SAP Watch)

Violin Memory Is Raising More Money Ahead of Planned May IPO (All Things D)
Important to SAP's in-memory plans.

Qlik Q4 Proves Comeback From Poor Q2; Stock Soars (Investor's Business Daily)

IDC: Outsourcing sector needs rescue fund for cloudy customers (Channel Register)

Startup Creates Yelp-like Site, but for Business Apps
G2 Crowd makes reviewers use their LinkedIn credentials to ensure fair play
(CIO.com)

Oracle Fusion and More Blue Ocean Strategy (Denis Pombriant/Enterprise Irregulars)


SideCar Acquires Austin-Based Ride-Sharing Startup Heyride, Will Soon Launch In 7 New Markets (TechCrunch)
Will roll out ride-sharing in Philadelphia this weekend.

Evolve IP Releases OSSmosis Enterprise Cloud Manager Based on Red Hat’s ManageIQ Technologies
Groundbreaking infrastructure automation tool allows customers to monitor, manage, and access virtual resources in the cloud
(Business Wire)

FCC: ISPs Making Good on Advertised Broadband Speeds (PC Magazine)

Longtime Rendell adviser, Comcast exec David Cohen backs Corbett
(AP via Philadelphia Inquirer)
Will this include a fundraising dinner at his home?

DirecTV's fourth-quarter profit, revenue rises (Reuters)

Former steel property eyed for post-incubator center (Lehigh Valley Business)




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QlikTech posts strong Q4 2012 results; CFO to resign for "personal reasons"
Update: shares up 20% today



Tom Paine




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Radnor-based Business Intelligence vendor QlikTech today released 4th quarter and full year 2012 financial results.

Total revenue increased 27% in the 4th quarter to $137.5 million, and 41% in the Americas. For the full year 2012, revenue was $388.5 million, an increase of 21% from the full year 2011 and 26% on a constant currency basis. GAAP net income for the year was 3.8 million, or $0.04 per diluted common share, down from $9 million last year.

For 2013, QlikTech is providing guidance for revenue for the full year of $465 to $475 million, and non-GAAP income from operations of $50 to $54 million. The midpoint of QlikTech's 2013 revenue projections imply a growth rate of 21%.

QlikTech also announced today Bill Sorenson’s intention to resign as Chief Financial Officer "for personal reasons." He has agreed to stay on in that position until a
successor is found.

Update 2/15/2013: QLIK shares are up 20% today after yesterday's results surpassed
company guidance.



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Today in Philly Tech History 2/13/1988: Innovative Solutions & Support, Inc. celebrates twenty-fifth anniversary of its founding



February 13, 2013: Cockpit instrumentation systems integrator Innovative Solutions & Support, Inc. (IS&S) (NASDAQ:ISSC) celebrated the twenty-fifth anniversary of its founding in 1988.

The Exton-based company says it "has evolved from engineering and manufacturing CTR stand alone air data instruments to a systems integrator that produces large flat panel cockpit displays with Management System (FMS), GPS, Synthetic Vision (SVS), and Required Navigation Procedure (RNP) capabilities." Geoffrey Hedrick, founder, chairman and CEO of the Company, said in a statement that "“I am more optimistic than I have been in several years about the prospects for the Company as improving market conditions coincide with a number of new products designed for NextGen markets.”

In its last 12 months ending September 30 2012,, IS&S generated revenue of $24.6 million
and net income of $2.98 million. Its stock, currently at $4.37 per share, traded as high as $28 in 2007.




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