Thursday, March 26, 2009

Nano to remove Indias Economic barriers

Nano which in Latin means ‘dwarf’ is now going to do for India what ‘Model-T’ did for United  States or Volkswagen did in Germany many decades ago. A symbol for hope and possibility, Nano has already generated strong public hysteria in India and is believed to level out class divisions.  It represendts a history-making attempt by Tata Motors, Indias biggest indigenous automobile maker to tap into entirely new domestic market for cars. It’s base model will cost only Rs. 100,000 ( About $2,000) without tax, thus being the cheapest car in the Universe so far. After adding taxes such as road tax, excise duty, transportation costs, local taxes, insurance, registration fees etc. the price would not exceed $2,200. The Nano would soon have a competition with Bajaj Auto announcing to bring in Bajaj Lite, an ultra-compact car, which would cost around $3,000. Nano is made with less material than other cars, so it costs less to produce. Tata Motors, headed by Ratan Tata had asked its component makers to redesign their parts to minimize their weight and cost, but still perform well. Nano can do 0 to 100 km in 23 seconds. Its exterior is imported Japanese and Korean steel, and even the basic model feels roomy inside. The vinyl seats on the basic model and rough plastic door locks, however, looks cheap. What makes this car so cheap?. Well according to BBC News, it has no air conditioning, no power steering, no power windows, no air bag and the bodywork is made of sheet metal - which is basically aluminium - and plastic. The trunk is in the front and the engine in the rear according to the San Francisco Chronicle. The Nano has outside India plans too,  The Nano Europa is planned for 2011 in Europe, No plans yet for the United States.  Three cheers to tata group for coming up with such an innovation which I believe will bring Indians more closer to each other removing the water tight economic barriers.

Wednesday, March 25, 2009

Y Google should bye Twitter

Y Google should bye Twitter


During twitter harvest times especially during lunch hour and morning rush we always get messate  "Twitter is over capacity. Too many tweets! Please wait a moment and try again." which has bugged twitters all over the world. The microblogging service is simply not able to keep up.

The problem is obvious: Twitter kicked in the nitrous oxide a couple of months ago and has quintupled in popularity since late December, according to statistics from Google (Nasdaq: GOOG). Twitter isn't really making money yet, and its popularity has brought its server farm to its knees. Hardware is expensive. So is internet bandwidth, when you're dealing with millions of hyperconnected users.

I can think of a few ways Twitter can remedy this problem and return to the silky-smooth instant-broadcasting performance to which its users have grown addicted:

  • Shovel more hardware into Twitter's data centers, which are managed by an American subsidiary of Japanese telecom giant Nippon Telegraph & Telephone (NYSE: NTT). This takes time, and NTT may not have the extra rackspace available immediately. And besides, how would Twitter pay for the new machines? Nope, scratch this idea.
  • Move into a massive-scale hosting service like Amazon.com's (Nasdaq: AMZN) Elastic Computing Cloud. Amazon has the hardware muscle and ultraconnectivity that Twitter needs, and EC2 can also be cheaper than having your own hardware. Sun Microsystems (Nasdaq: JAVA) will open a similar service later this year, and other giants will probably follow, but that doesn't really help today. This one is plausible, but may require lots of reprogramming before Twitter's software will fit this new environment.
  • Let some deep-pocketed sugar daddy with lots of Internet-facing infrastructure of its own step in and buy Twitter. Under the wing of Google, Facebook, or Amazon, Twitter could get back on its feet quickly, and go back to growing as fast as it might like. Lacking funds won't be a problem anymore.

Of all these options, Google buying Twitter makes the most sense to me. Google clearly has the traffic-handling muscle to handle anything Twitter's users might throw at it, and it's an established leader in distributing complex computing loads across a very flexible infrastructure.

Twitter runs on venture capital right now, having raised at least $55 million from firms like Benchmark Capital and Institutional Venture Partners. Those stakeholders would clearly want a large return on their investment, and Twitter might sell for as much as $1 billion.

Google is on the short list of potential buyers who could afford that kind of splurging on an exciting but revenueless business today. And that attitude is in Big G's genes, too. Microsoft(Nasdaq: MSFT) would want a profitable business plan on the table first, and Apple (Nasdaq:AAPL) doesn't buy much of anything. Cisco Systems (Nasdaq: CSCO) is both rich enough and curious enough to do it, but seems more interested in high-bandwidth video services than lower-volume text applications.

Just buy Twitter already, Google. The little birdie needs your help.


By Anders Bylund