Tag Archives: Business
Giving it away for free isn’t a Business Model
If you give your product or service away to would-be customers, you set a dangerous precedent that you’re willing to give it away forever. As I’ve said before: if a customer isn’t paying for your product in some way, shape, or form, you’re not running a business. Getting a customer to use your product for free only proves a customer’s willingness to pay nothing. True value is established when a customer forks over a dollar (or lots of them) for your product.
How could Netscape invent one of the most popular and widely adopted software applications in history and at the same time never make any real money at it? Simple – they established the price at “zero.” Getting customers to go from “free” to “paid” is extremely difficult to do. Companies establish the value of their product mostly from the price they set for their product. Does a Bentley Continental GT really cost $160,000 to build? No, but if Bentley sold the Continental for $20,000 there’s no way they would be able to change the price to $160,000 and hold the same amount of value in consumers’ eyes. Going from “free” to “paid” works the same way. Giving a product away for free is an easy way to confuse the concept of “people really like it” with “people really like it and they are willing to pay me for it.” People should pay for products that have value and creating a business that ignores this is digging your own grave. Give them a taste, maybe, but if they want the whole entrée (and if you want to stay in business) you had better charge full price.
Recommendation:
If you must give some part of your product or service away, give them just enough to get them hooked and charge them for every fix thereafter.Giving too much away for free masks the commercial viability of your business.
Comparing payment gateways for an e-commerce store in Singapore
Zan did a great job of comparing several payment gateways in Singapore. In summary, below are what i found to be important.
Available Options in Singapore:
- Paypal Website Payment Standard
- Paypal Payflow Gateway
- E-Nets
- E-Clearing
- World Pay
- Payment Express
- Cybersource
- 2c2p
Cost Comparison
| World Pay | Enets | Paypal | Payment express | |
| Set up fees | S$250 | S$200 | Free | S$150 |
| Annual fees | S$650 | S$450 | Free | S$600 |
| Transaction fees | 4.50% | 4.50% | 3.4% + S$0.50 | 100 free transactions, S$0.50 per transaction thereafter |
Final Decision?
Eventually, we decided to use Paypal Website Payment Standard. Why? First, the cost is the lowest. There are no set up fees or monthly fees. You only pay when there’re purchases. Second, the process is easy to set up. All I needed is a credit card. Applying for a merchant account at the banks is a hassle in comparison. There is processing time, and added charges for the set up can be quite hefty.
Hadoop & Bussiness Intelligent
The group at Yahoo! that I came from was using Hadoop for data analytics and data warehousing. We had something like 100,000 web servers across the world, and once we collected data from across all these servers, we dumped it into Hadoop, which became the place where we stored all of the data, instead of traditional network storage.
Our reasoning for doing that was a matter of economics, given the quantity of hardware. Hadoop lets us scalably process that data, clean it up, and normalize it so we could pass it along to the systems that need it.
Hadoop is getting very wide adoption in the data warehousing and business intelligence domains. One of the biggest uses within Yahoo! right now is dealing with all of the log information from servers. Analyzing that information allows for better spam filtering, ad targeting, content targeting, A/B testing for new features, et cetera.
It’s not web-specific. For example, everybody does data warehousing, and we see very strong adoption there.
Separate from that, your example of oil companies is a very good one, as is the financial sector. Right now, we do have a couple of very large financial institutions working with us on these exact problems, taking huge amounts of data from domains like credit card processing and building predictive models for fraud that enable better decisions, for example, about whether to block or allow a given transaction.
In the stock market, Hadoop is being used to do simulations that help predict option pricing and related problems. That’s another very healthy market that we’ve seen growth in.
Knowing that Yahoo is the biggest contributor and adopter of Hadoop and the company is used Hadoop to solve various problems from data analytics and data warehousing: log processing, gene sequence mapping (basically a fuzzy string matching problem) to business intelligent domains: financial, stock market …
Rumor said that a bank in Singapore invest millions of dollars create a computing and predicting system from scratch using Haskell – a static type, functional programming language to warranty scaling and performance.
I wonder why the bank did not take a look at Distributed File System (DFS) + MapReduce (Hadoop is an open source implementation of it) as a massively scalable on commodity hardware that successfully utilized at biggest IT firms in the world (Google, Yahoo, Facebook … just to name the few) … or they just re-implementing DFS+MapReduce themselves
What is Hadoop? (from Interview with Amr Awadallah – Cloudera CTO)
First, it’s worth making the important clarifying point that Hadoop is not a database. Hadoop is a data processing system, and in fact, I would even go as far as saying Hadoop is an operating system. The core of an operating system boils down to a file system, the storage of files, and a process scheduling system that runs applications on top of these files.
There are many other components that help with devices, credentials and user access, and so on, but that is the core. Hadoop is exactly the same thing. The core of Hadoop is the Hadoop Distributed File System, which is a file system that’s runs across many nodes. It links together the file systems on many local nodes to make them into one big file system. Hadoop MapReduce is really the job scheduling system that takes care of scheduling jobs on top of all those nodes.
That is the key distinction between Hadoop’s approach and that of database systems. Hadoop, at its heart, does not require any structure to your data. You can just upload files directly from anywhere, like a web server, RFID device, or cell phone mobile device, directly into Hadoop.
They could be images, videos, or just a bunch of bits. They don’t have to have a schema with column types and so on, which gives you tremendous agility and flexibility.
Hadoop has a very nice model that I sometimes refer to as schema on read. Whereas defining your schema as you’re writing the data in limits what you can put in by requiring it to be conformant to the schema that you created, Hadoop allows you to define the schema as you’re reading stuff out.
That gives you a lot of flexibility and agility, since you can add files that have dynamic parts like JSON or new standards coming up like Avro, which is a very good project coming out of the Hadoop project that’s similar to protocol buffers from Google and Thrift from Facebook. Avro makes files have a schema around them as well, but these schemas are semi-structured, rather than conforming to a strict relational model.
That said, it’s also important to point out that structured stuff is a subset of unstructured stuff. The fact that Hadoop at its heart is a file system doesn’t mean that it can’t do database relational stuff. It does actually, in the same way that Windows at its heart is a file system, but you can run SQL Server on top of it to get the relational services, schemas, column types, and so on.
One of the key projects on top of Hadoop is Hive, which actually came out of Facebook. Hive essentially provides a relational database on top of Hadoop that utilizes the underlying file system but has a metastore that keeps the schema of the files.
It knows that a given file is tab delimited or whatever, it knows the column type for these files, and Hive allows you to write SQL against these files. It will look up the schema and then it will write for you the MapReduce jobs so that you don’t have to go and learn MapReduce from scratch.
Now you have the flexibility of going either way. One approach is to get at the core of the MapReduce framework using Java MapReduce, which we sometimes refer to as being like assembly language for Hadoop. It gives you the most flexibility and performance, but it is fairly complex and difficult to learn.
Alternately, you can go in with a high level language like Hive. In this case, you can just use SQL, if that’s what you’re used to, to write your job. Hive itself has lots of optimizations. It understands the underlying MapReduce framework, so it can properly map your problem on top of your data.