Google tries to keep search relevant

Google has announced that it will enable search enquiries to integrate with personal searches, such as in a users Gmail account, as a way to maintain its dominance of the search market.

In a “limited field trial”, some users will start seeing email content appear alongside other web searches. Part of the reason for this is to create a seamless experience for users, but for Google it is an important way of collecting huge amounts of data about users.

Tying all this data together will allow Google to learn more about its users, allowing them to know the relationship between specific searches.

Director of Product Management for Google, Sagar Kamdar told reporters: “This is a baby step in a really complicated area.”

Many users may find the idea of seeing their emails appear when searching for something in Google worrying, particularly those that use shared computers. Maintaining security on with this project is, as Kamdar says, a “hard problem.”

The trial is reportedly going to be open to other email providers, and not just people with Gmail accounts. Senior Vice President Amit Singhal said: “We are very willing to work with every email provider.” Whether these email providers are willing to give up their valuable user data remains to be seen.

US army goes green

A deal announced yesterday by the US Defence and Interior Departments will see military land put to use for renewable energy, which it is hoped will cut the military’s $4bn a year energy bill.

Solar, wind geothermal and biomass energy production will begin on military land, which the government will also hope will encourage a further move towards renewable energy in other industries, as well as helping boost the US’s energy independence.

Interior Secretary Ken Salazar said in a statement: “Energy security is critical to our national security. Our nation’s military lands hold great renewable energy potential and this partnership will help ensure that we’re tapping into these resources with a smart and focused approach to power our military, reduce energy costs, and grow our nation’s energy independence.”

The renewable energy industry in the US has struggled to take off in recent years, with no clear technology able to challenge oil and gas production for cost and efficiency. Last year it accounted for just 14.3 percent of energy production, with hydroelectricity leading the way.

Leon Panetta, the Defence Secretary, added: “Developing renewable energy is the right thing to do for national security, as well as for the environment and our economy.
“Renewable energy projects built on these lands will provide reliable, local sources of power for military installations, allow for a continued energy supply if the commercial power grid gets disrupted, and will help lower utility costs.”

Kindle eBook sales overtake print in UK

Persuading people to replace their physical books with digital versions has taken longer than many in the industry expected, with many older generations reluctant to give up the comforting feel of a print book. However, the tide may have begun to turn, with the popularity of eBooks soaring in recent years.

Yesterday, Amazon announced that in the UK sales of eBooks for their Kindle reader have surpassed those of physical copies for the first time. The Kindle has only been available in the UK for two years, and the growth in use of the digital book reader has sharply risen. After the Kindle’s release in the US, it took four years for eBooks to overtake print versions.

Amazon says that for every 100 print books they sell on their UK website, they sell 112 Kindle books. The firm’s vice president for the Kindle in the EU, Jorrit Van der Meulen, said: “Customers in the UK are now choosing Kindle books more often than print books, even as our print business continues to grow.

“We hit this milestone in the US less than four years after introducing Kindle, so to reach this landmark after just two years in the UK is remarkable and shows how quickly UK readers are embracing Kindle.”

Taiwanese chipmaker pumps $1.4bn in Dutch supplier

ASML, one of the world’s largest providers of tools for chipmakers, has received yet another vote of confidence by its clients, with Taiwan Semiconductor Manufacturing Co. (TSMC) announcing this morning that it was investing up to $1.4bn into the Dutch firm.

This investment follows the announcement last month that tech giant Intel had taken a ten percent stake in ASML for $1.7bn. TSMC will gain a five percent share of the business from their investment.

The Taiwanese firm is the largest contract chipmaker in the world, with sales of $4.3bn in the second quarter of this year, up 22 percent on the previous quarter’s results.

ASML is an industry leader in making machines that help make computer chips, and the investment that the company has received is seen as a continuing trend towards chip manufacturer’s trying to cut costs and develop faster and more efficient chips.

The Dutch firm hopes that the investment in their business will allow them to develop machines that will make bigger circular wafers, which are used to cut computer chips.

After their investment last month, Intel’s chief operating officer Brian Krzanich explained: “The transition from one wafer size to the next has historically delivered a 30 to 40 percent reduction in die cost and we expect the shift from today’s standard 300mm wafers to larger 450mm wafers to offer similar benefits.

“The faster we do this, the sooner we can gain the benefit of productivity improvements, which creates tremendous value for customers and shareholders.”

Peer to Peer cars help you get around

Many people insist on buying cars that rarely get used, with congestion on the roads meaning it’s better to take public transport. Solving the problem of this wastage, and potentially saving drivers a lot of money, may have been achieved by a group of new start-ups. So-called peer to peer car sharing services allow drivers to lease out their private cars to other drivers when they’re not in use.

Getaround, a US firm recently set up, has received a lot of interest from investors like Google CEO Eric Schmidt and actor Ashton Kutcher, with an initial round of fundraising seeing $13.9m pumped into the company. Another firm, RelaRides, has also seen investment from Google and General Motors.

Menlo Ventures, who led the investment into Getaround, thinks the opportunities of this new business model are huge. Partner Shervin Pishevar, who is set to join the board of Getaround, said: “Most cars are only used eight percent of the time. This is incredible waste happening each and every day across the world, and Getaround solves this problem beautifully.”

The idea seems sound, but the initial set up costs of installing the technology, as well as sharing the insurance, might deter car-owners. If it’s successful, however, car rental companies may see a great deal of competition from this new sector while the auto industry might see a reduction in sales from people that don’t require their own car. For drivers, this may mean finding a parking space will become a lot easier.

Solar panel prices set to drop

Finding efficient alternative sources of energy to fill the gap once the world has run out of fossil fuels has been something scientists have been striving to discover for decades. One of the great hopes has been solar power, with the assumption that harnessing the power of the sun, particularly in developing countries south of the equator, can help keep the planet running without harming the environment.

Unfortunately the trouble with solar power is the cost. Installing solar panels on buildings requires relatively high initial investment, and although governments have been keen to offer some form of subsidies, people have been reluctant to commit to such an outlay that may not be recouped from more efficient power use for many years. Another prohibitive barrier to solar power taking off is the difficulty in storing energy generated for use at a later date.

New research, however, could lead to the industry slashing prices and emerging as the most cost efficient form of renewable energy. A breakthrough by researchers at Lawrence Berkeley National Laboratory and the University of California, led by Professor Alex Zettl, could see almost any material converted into a solar power conducting surface.

One example could be the conversion of windows so that they can generate power from the sun, causing much more efficient power generation.

It is hoped that this will spur a new wave of investment in the industry. Professor Zettl said yesterday: “It’s time we put bad materials to good use. Our technology allows us to sidestep the difficulty in chemically tailoring many earth abundant, non-toxic seminconductors and instead tailor these materials simply by applying an electric field.”

Microsoft reinvigorates email

Since the internet went mainstream in the middle of the 1990’s, email has revolutionised the way people communicate with each other. Providing users with a simple, instant and efficient way to communicate with people all over the world, it has become a staple part of people’s every day use of the internet.

Microsoft realised the importance of email when they purchased Hotmail, one of the first and most prominent services, in 1997 for $400m. Since then, other players have emerged, most notably Google with their Gmail service, which simplified email and attracted many of Microsoft’s users that felt Hotmail had become cumbersome and weighed down by intrusive adverts.

However, with the emergence of social networks like Twitter and Facebook, the way we communicate is continuing to evolve. People can now seamlessly switch between platforms when communicating, which has eroded the ubiquitous use of email from everyday life. Even Google has integrated their Gmail service into their new social network Google Plus, as well as their Android mobile operating system, blurring the lines between instant messaging, video conferencing, email and text messages.

Microsoft, attempting to wrestle control of the market back from Google, yesterday announced a brand new service that it hopes can reinvigorate email. Outlook.com, a web version of their desktop email client Outlook, will eventually replace Hotmail. It offers far more simplified design, based in their Windows 8 Metro UI, while also providing sophisticated junk email management tools.

Soon, the company plans to integrate online video conferencing service Skype, which they bought in 2011 for $8.5bn, potentially creating a unified communication system that rivals Google’s.

Is it too late to be revamping a sluggish email service though? Most users are already signed up to other services, and will be reluctant to change addresses after so many years with the same contact details. Also, the use of email has declined sharply in recent years. ComScore reported in 2011 that email usage amongst teenagers had declined by 59 percent on the previous year’s figure, with social networks receiving the most use from young people.

Microsoft will integrate Outlook.com with social networks like like Facebook, which they already have a strong partnership with. The difficulty will be in persuading people they need yet another way of communicating outside of existing services.

Australian tech needs confidence boost

The technology industry in Australia has for a long time offered promises of great innovation, but never quite delivered on that potential. According to the boss of Australia’s largest telecom company, all that is needed is the confidence to support the burgeoning industry from investors.

David Thodey, Telstra’s CEO, yesterday told a conference in Sydney hosted by the American Chamber of Commerce that he sees no reason why Australia cannot produce the next technology giant, something that hasn’t yet happened for the industry, but investment is required.

“I’ve been in this industry for nearly 33 years, and I’ve talked a lot about the importance of innovation and technology within Australia, but the truth is it hasn’t nearly gone a tremendous way. There hasn’t been real sustainable investment in local technology companies within Australia.”

Thodey also said the country also needed to refocus its economy towards technology, as the mining resources that have fuelled growth in recent years cannot last forever. “We’re a lucky country, we’ve got great mining resources, we’re a great sporting nation, but can we really become the clever country? Many of the other things that our wealth is being created on are not necessarily sustainable over the long term. We have an incredible opportunity to change that focus to become a clever country, and I really think we need to do it.”

The industry has failed to take off in recent years. Last year, a number of US investment firms took stakes in Australian start-ups, such as Tiger Global Management’s buying 40 percent of e-commerce site Catch of the Day. However, none of these businesses have yet made an impression on the global tech industry.

However, Thodey doesn’t think it is up to the government to push this growth, but that it will come with a few successes. “We’re not looking for a hand-out. I think it’s about creating an environment where innovation is seen as good, we’re encouraging it, creating a vision for it. And success helps; if you can get a few good wins under your belt, then the industry will grow in its own right.”

Silicon Valley West Bank

A war torn strip of land in the Middle East is not somewhere one traditionally thinks of as a hotbed of technological innovation, but according to a report the West Bank is emerging as just that.

In an article in yesterday’s New York Times, journalist Isabel Kershner discovered that the Palestinian Authority is pursuing an ambitious goal of growing a technology hub that could spur the area’s economy and open it up to international trade.

According to Murad Tahboub, the managing director of software outsourcing firm ASAL Technologies, the tech industry is one that is particular attractive to the region, as it is cross-border. “This is a sector that has no borders. You just need electricity and a telephone line.”

As a result of the conflict with Israel, the West Bank’s economy has struggled, although signs in recent years show it is growing, with it reaching nine percent last year.

Following an investment by Cisco Systems of $10m in the area four years ago, the industry is now said to have grown from just one percent to five percent of the economy. Tahboub believes this will increase significantly in the coming years. “We are in the right position to have exponential growth.”

The difficulty, however, is growing an industry in a region that is not recognised by the international community. A relatively small economic output of nearly $6bn is not enough to create waves in the international economy, nor can it provide the infrastructure and stability required for a growing tech hub.

It is hoped, however, that the tech industry could transcend international conflict. Tareq Maayah, CEO of mobile communications firm Exalt Technologies says that even though the conflict between Israelis and Palestinians continues, business will continue to be done between the two. “The occupation is frustrating, but Israelis and Palestinians have been working with each other in the worst of times.”

Maayah says that it’s even Israel’s approach to growing the tech economy that the Palestinians have been eager to copy, with “innovation, creativity and being ahead of the curve,” the key areas they are striving for, “rather than relying on a huge quantity of basic skills.”

4G connections hit 27m worldwide

Demands for mobile broadband connections are increasing rapidly, as consumers become ever more desperate to be online whenever and wherever they are. Added to this demand is the advancement of the devices that use the networks. The next generation of mobile broadband, dubbed 4G, is intended to provide this extra speed and capacity.

However, take up of 4G has been slow. According to a recently published report by the Wireless Intelligence group, 87 percent of all 4G networks are based in the US, Japan and South Korea. The US leads the way, with 47 percent of the global total, with 12.7m people connecting to the networks this year.

Elsewhere, 4G has struggled to get off the ground. Just six percent of all connections to 4G are in Europe, while the UK has yet to even launch a 4G network, as legal battles between operators has prevented the government from launching the auction for the bandwidths until mid-2013.

Another problem that faces 4G take up is the lack of standardisation. The US and Singapore have chosen Long Term Evolution (LTE) as their network, while South Korea and Malaysia have gone for Wimax.

Apple’s new iPad was trumpeted as the first mainstream tablet to offer 4G speeds. However, Apple was forced to remove advertising claims of 4G network speeds outside of the US because the LTE chip in the iPad only worked with US LTE networks. The US firm was even fined $2.2m in Australia for misleading advertising.

Finding a standard system is vital if the capacity needs are to be met. It’s likely that pressure from device manufacturers will lead to a standard system as they look to keep down design costs. However, governments must come together to settle on a platform that will allow consumers to remain online all over the world.

Internet TV goes mainstream

Although promised for a number of years, internet optimised televisions have yet to grab consumers’ attention in the way that many media and tech firms had hoped.

Apple famously labelled their Apple TV set top box a “hobby”, unwilling to commit serious resources to a product that the average consumer might not be quite ready for. However, rival firms have sprung up in recent times. Google released the Google TV set top box in 2010 to a lukewarm reception, while Microsoft has enabled an internet TV service through their Xbox 360 games console.

There have also been start-ups that have carved their own niches in the area, such as Boxee and Roku. However, traditional media providers have been wary of allowing their content to be available on these platforms, concerned that they will damage their tried and tested delivery platform that relies heavily on advertising. Similarly, services like Netflix have taken a large chunk out of many channels film services, as the website allows users to access a vast library of films that they can watch when they want.

It seems this is starting to change. Newscorp and BSkyB on Wednesday invested $45m in Roku, with the intention to help the firm grow its business internationally. It also shows that content providers realise the future of television will be through the internet, and so want to be able to profit from such services. Last year, Roku saw its revenue increase to $100m, from the previous year’s $47m.

Roku’s CEO Anthony Wood said the investment from Newscorp was “a lot of money” for the company, and meant that content providers saw the value in their offering. Newscorp’s Chief Digital Officer Jon Miller, who will join Roku’s board, added: “We have watched Roku maintain market leadership since the launch of its streaming platform four years ago and we look forward to deepening our relationship.”

Enthusiasm for these services is steadily growing. In the UK, a partnership between terrestrial television providers like the BBC, Channel 4 and ITV has resulted in their own set-top box being launched. Dubbed Youview, the box allows users to access online databases of each channels programmes. Apple is also expected to launch a massively upgraded version of their Apple TV in the next few months, perhaps a fully integrated TV set, which may yet further revolutionise the industry.

BMW banking on electric cars

The nascent electronic car market has received a significant boost with the news that BMW has invested in Coulomb Technologies, a five year old start-up that specialises in making electronic vehicle (EV) charging stations and software.

Coulomb operates around the world and has signed development deals with Ford, General Motors, Nissan and Fisker in the past. The California-based firm announced in May a round of funding that reached $47.5m, which also included support from Toyota Tsusho and Kleiner Perkins.

BMW invested through their New York based venture capital subsidiary, which last year was launched with a fund of $100m to invest in future technologies. They have also announced that in 2013 they plan to release their first electric cars, dubbed the i Series.

Until recently, the electronic car market has been relatively small, with only a few major auto firms developing their own models. Part of the reason for this is that the cars are relatively expensive, as a result of the cost of their lithium-ion batteries. Another reason is the lack of infrastructure to support the vehicles, with not enough charging stations provided to the public.

Some governments announced proposals to reduce these barriers to the market, with the US pledging $2.4bn in grants towards bringing down the cost of the vehicles, while China intends to invest $15bn to kick-start the industry in Asia.

Without these forms of government support the industry will struggle to attract customers. However, if BMW is willing to bet on companies like Coulomb, it may be a sign that private firms can see a way of profiting from the industry’s future.