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Showing posts with label koum. Show all posts
Showing posts with label koum. Show all posts

Monday, February 24, 2014

WhatsApp founder apologizes for 'longest and biggest outage in years'

WhatsApp, which has more than 450 million monthly users, said it was having "server issues".
The company suffered the outage just days after it was snapped up by Facebook for $19bn (£11.4bn).
The messaging service tweeted at 8.16pm UK time on Saturday: "We hope to be back up and recovered shortly."
Users reacted angrily, saying their chat conversations were only showing a loading asterisk and the alert "Connecting..."
Taylor ITWT16 said on Twitter: "As Soon As Facebook Buys Whatsapp, Whatsapp Starts Malfunctioning."
Jazzy tweeted: "Its been like 4 hours, you would have thought they could sort whatsapp out by now."
By 10.30pm the service appeared to be working again.
The firm tweeted: "WhatsApp service has been restored. We are so sorry for the downtime."
Facebook announced last Thursday that it would pay $4bn (£2.4bn) in cash and $15bn (£9bn) in Facebook shares as part of the deal to buy the real-time messaging service.
The app's founders and employees will get $3bn (£1.8bn) of the shares as restricted stock that will vest over four years after the deal closes.
The purchase marks the largest single acquisition in Facebook's 10-year history.
WhatsApp will "continue to operate independently and retain its brand" despite the acquisition, Facebook said.
Founded by a Ukrainian immigrant who dropped out of college, Jan Koum, and a Stanford alumnus, Brian Acton, WhatsApp is a Silicon Valley startup fairytale.
The acquisition will also see Mr Koum - a former Yahoo! engineer - join Facebook's board of directors.

Facebook is known to make bold moves to thwart competitors - it famously bought Instagram for $1bn after a weekend of negotiations.

Sunday, February 23, 2014

How to get a Job at Google

MOUNTAIN VIEW: Last June, in an interview with Adam Bryant of The New York Times, Laszlo Bock, the senior vice president of people operations for Google — i.e, the guy in charge of hiring for one of the world's most successful companies — noted that Google had determined that "GPAs are worthless as a criteria for hiring, and test scores are worthless. ... We found that they don't predict anything."

He also noted that the "proportion of people without any college education at Google has increased over time" — now as high as 14% on some teams. At a time when many people are asking, "How's my kid gonna get a job?" I thought it would be useful to visit Google and hear how Bock would answer.
Don't get him wrong, Bock begins, "Good grades certainly don't hurt." Many jobs at Google require math, computing and coding skills, so if your good grades truly reflect skills in those areas that you can apply, it would be an advantage. But Google has its eyes on much more.
"There are five hiring attributes we have across the company," explained Bock. "If it's a technical role, we assess your coding ability, and half the roles in the company are technical roles. For every job, though, the No. 1 thing we look for is general cognitive ability, and it's not IQ. It's learning ability. It's the ability to process on the fly. It's the ability to pull together disparate bits of information. We assess that using structured behavioral interviews that we validate to make sure they're predictive."
The second, he added, "is leadership — in particular emergent leadership as opposed to traditional leadership. Traditional leadership is, were you president of the chess club? Were you vice president of sales? How quickly did you get there? We don't care. What we care about is, when faced with a problem and you're a member of a team, do you, at the appropriate time, step in and lead. And just as critically, do you step back and stop leading, do you let someone else? Because what's critical to be an effective leader in this environment is you have to be willing to relinquish power."
What else? Humility and ownership.
"It's feeling the sense of responsibility, the sense of ownership, to step in," he said, to try to solve any problem — and the humility to step back and embrace the better ideas of others. "Your end goal," explained Bock, "is what can we do together to problem-solve. I've contributed my piece, and then I step back."
And it is not just humility in creating space for others to contribute, says Bock, it's "intellectual humility. Without humility, you are unable to learn." It is why research shows that many graduates from hotshot business schools plateau. "Successful bright people rarely experience failure, and so they don't learn how to learn from that failure," Bock said.
"They, instead, commit the fundamental attribution error, which is if something good happens, it's because I'm a genius. If something bad happens, it's because someone's an idiot or I didn't get the resources or the market moved. ... What we've seen is that the people who are the most successful here, who we want to hire, will have a fierce position. They'll argue like hell. They'll be zealots about their point of view. But then you say, 'here's a new fact,' and they'll go, 'Oh, well, that changes things; you're right.'" You need a big ego and small ego in the same person at the same time.
The least important attribute they look for is "expertise." Said Bock: "If you take somebody who has high cognitive ability, is innately curious, willing to learn and has emergent leadership skills, and you hire them as an HR person or finance person, and they have no content knowledge, and you compare them with someone who's been doing just one thing and is a world expert, the expert will go: 'I've seen this 100 times before; here's what you do.'" Most of the time the non-expert will come up with the same answer, added Bock, "because most of the time it's not that hard." Sure, once in a while they will mess it up, he said, but once in a while they'll also come up with an answer that is totally new. And there is huge value in that.
To sum up Bock's approach to hiring: Talent can come in so many different forms and be built in so many nontraditional ways today, hiring officers have to be alive to every one - besides brand-name colleges. Because "when you look at people who don't go to school and make their way in the world, those are exceptional human beings. And we should do everything we can to find those people." Too many colleges, he added, "don't deliver on what they promise. You generate a ton of debt, you don't learn the most useful things for your life. It's [just] an extended adolescence."
Google attracts so much talent it can afford to look beyond traditional metrics, like GPA. For most young people, though, going to college and doing well is still the best way to master the tools needed for many careers. But Bock is saying something important to them, too: Beware. Your degree is not a proxy for your ability to do any job. The world only cares about — and pays off on — what you can do with what you know (and it doesn't care how you learned it). And in an age when innovation is increasingly a group endeavor, it also cares about a lot of soft skills — leadership, humility, collaboration, adaptability and loving to learn and re-learn. This will be true no matter where you go to work.


Friday, February 21, 2014

Here's Why Facebook Acquired Messaging App WhatsApp For $19 Billion

Facebook announced that it is acquiring mobile messaging app WhatsApp for $19 billion, making it Facebook's largest acquisition to date.
In a statement, WhatsApp said that it will continue to operate independently and autonomously and will stick to its policy of not taking ads.
WhatsApp is the largest and fastest-growing mobile messaging app competing for revenue in the $100 billion-plus mobile messaging market, which was once dominated by mobile carriers and their SMS text services. Here's why it was an attractive target, even considering the big price-tag:
·         WhatsApp has more than 450 million monthly active users as of today, which is approximately 37% the size of Facebook's monthly active audience. 
      WhatsApp's closest competitor, WeChat, has approximately 320 million monthly active users as of Jan. 20, who are located primarily in China. WhatsApp has a much broader user base geographically.

·         In fact, it's extremely popular virtually everywhere: As recently as April 19 2013, it ranked as the number one top-selling paid iPhone app in 54 countries, and was in the number two spot in the United States, according to AppAnnie. It has shown persistence on the leader-boards. Today, it's number one in thirteen countries.

·         It boasts huge usage numbers, meaning it could be a valuable source of data for Facebook: WhatsApp users were sending 16 billion messages and 500 million images each day in December 2013. For comparison, Facebook users were sharing approximately 350 million images each day.

·         Facebook already has a messaging app with Facebook Messenger, but WhatsApp will bring a much larger footprint to the social network. For example, WhatsApp is used by 41% of Android smartphone users globally while Messenger is used by 16%. Moreover, Android smartphone users average 195 minutes each month using WhatsApp, while Messenger users average 21 minutes. That's roughly nine times more time-spend. It's evidence that WhatsApp oft-praised clean and fast user interface is very effective in keeping users glued to the app.
The acquisition of WhatsApp will also bolster Facebook's growing portfolio of stand-alone mobile apps that focus on different activities. Instagram is for photo and video-sharing, Paper is for consuming news, and WhatsApp is for messaging.
An interesting storyline that will emerge from this acquisition is how Facebook plans to make money from WhatsApp. Currently, WhatsApp is free to use for the first year and costs $0.99 each year thereafter. WhatsApp's founders have been extremely vocal about never showing ads on the app and even published a manifesto of sorts explaining why.
As we mentioned, WhatsApp CEO and co-founder Jan Koum said in announcing the deal that WhatsApp will not change that no-ads policy, and that "nothing" will change for users. Koum will have a seat on Facebook's board of directors, so there is evidence that he will have real clout.

However, Facebook generates revenues largely through advertising, and so it wasn't a surprise when it introduced ads to Instagram shortly after that acquisition. If WhatsApp really is to rely solely on subscription revenue, there might be pressure for WhatsApp to at least share user data with its data-hungry parent social network. In any case, it will be an interesting test case to watch in the context of mobile monetization.

Another Winner in Facebook-WhatsApp deal: Your wallet

Facebook's acquisition of WhatsApp for at least $16 billion has minted dozens of new millionaires and billionaires this week, but there was another big winner in the deal: Parents and their teenage children, who have most likely saved hundreds or even thousands of dollars in texting fees thanks to the hugely popular messaging app, and will continue to do so after the deal.

Before WhatsApp -- and Line, Viber, WeChat and a few other messaging apps now being hungrily adopted by young people and adults across the globe -- the main way to send a message from one phone to another was through SMS, a technology that routed the text through the same infrastructure that mobile carriers used to handle voice calls.

To the carriers, these texts are essentially free to provide. Each text occupies a minuscule amount of bandwidth on their airwaves, and it rides across the infrastructure that they have set up to provide voice calls.

But because there is little competition in SMS -- after you sign up for a carrier, you cannot send your SMS messages through any other provider -- carriers once charged exorbitant rates for texts, minting huge profits.

In the United States, until recently, Verizon charged 20 cents a text to customers who did not sign up for a messaging plan. Those who did -- at $5-$20 a month per phone -- could bring their costs down to as low as half a cent a message, although that was only if 5,000 messages were sent a month. AT&T's rates were similar, and so were those of many carriers around the world.

These prices proved enormously lucrative for carriers. Analysts' estimates put global SMS revenue at around $100 billion a year annually -- money that was essentially all profit for carriers.

WhatsApp did not start out as a messaging app. Its earliest version, introduced in 2009, was more of a mobile status-updating app - something closer to Twitter than SMS. But as Forbes reported in a detailed profile of the company, its founders quickly noticed that people began using the app for back-and-forth communication, a way to send texts without incurring SMS fees.

Technically, this was not totally free to users, but it was very close to free. WhatsApp routes its messages over the internet, so people had to have a mobile data plan to use it. They also had to have a smartphone. (SMS could work on more basic phones.) But after that cost, each message over WhatsApp required such a tiny slice of mobile bandwidth that it was basically free. If you paid AT&T $25 for a 2-gigabytes-a-month data plan, each WhatsApp message might cost about two ten-thousandths of a cent, according to Gizmodo's math.

This means that someone who sent 5,000 messages over WhatsApp, a not unreasonable number for some overactive teenagers, would pay about a penny in data fees. If 5,000 SMS texts were sent at AT&T's nonplan rate of 20 cents a message, the sender would be out $1,000, which is 100,000 times WhatsApp's price.

But internet texting was not just cheaper, it was also better. In WhatsApp's early days, it was one of hundreds of apps trying to offer a replacement for SMS, so it was forced to create a better service to stand out. Among other features, it eschewed ads, while some competitors' apps were glutted with them, and per-message fees.

The company also focused on the service's functionality, making sure messages flew across the globe extremely quickly and efficiently, and that the app itself was well designed and easy to use.

Its founders were also determined to make the app work everywhere: They started on the iPhone, but quickly created versions for Android, BlackBerry, Symbian and Windows Phone. This gave WhatsApp a leg up over proprietary messaging systems like BlackBerry's BBM and Apple's iMessage, which worked only for messages between similar devices.

It is still unclear whether WhatsApp can make a lot of money providing very cheap texts. Today, it charges $1 for the app, and then, after one year of use, $1 per user per year. With 450 million users and growing, that could add up to a lot of money, but it is not obvious that the company is worth as much as $19 billion.


That is especially true when you consider that the service does not collect a lot of data about its users - data that the company's new owner might use for ad targeting - and that it has pledged to remain ad-free after the acquisition.

But to users, WhatsApp's fortunes are almost irrelevant now. In response to the rise of WhatsApp and other app-based messaging services, carriers have had to reduce their SMS prices. Both AT&T and Verizon now offer unlimited texting with their basic smartphone plans. Around the world, carriers' SMS revenues are now falling by tens of billions of dollars a year.

And even if 
Facebook fails to turn WhatsApp into a viable business, we are never going to return to the old pay-per-text days. Messaging is now on a one-way path toward its natural price, which is free.

There is a larger lesson in this story: When telecom companies control specific protocols on their lines -- whether it is texting, voice calls or even cable TV -- customers lose out. And as soon as our devices get access to the open internet, we have a bounty of competitive choices that reduce prices and improve service.

What happened to texts is likely to happen to voice calls, too, in a few years' time. Because of competition from FaceTime Audio, Google Hangouts, Skype and lots and lots of other internet-phone services, few of us will worry about voice minutes anymore; for some, that might even be true today.

And perhaps the SMS story will play out on TV, too. Cable is expensive and inflexible. Internet-based alternatives like Netflix and YouTube are cheap and available everywhere. In the long run, there is only one way that story ends.

Facebook-Whatsapp Deal: Little Known Facts

In a landmark deal, Facebook is buying most popular mobile-messaging platform WhatsApp. The WhatsApp deal is worth more than what Facebook raised in its own IPO in 2012.
Here are some little-known facts about one of the largest tech acquisitions.

Facebook's largest acquisition ever

WhatsApp is Facebook's largest-ever acquisition. The social networking giant will pay $4 billion in cash and $12 billion worth of shares for WhatsApp. But the ultimate cost of the deal is $19 billion, with WhatsApp employees and founders receiving an additional $3 billion in restricted stock units of Facebook.

The acquisition dwarfs the $1 billion that Facebook paid for photo-sharing service Instagram. Several analysts had termed Instagram acquisition expensive. But now, Facebook is paying $42 per user with the deal. 

Deal bigger than any Microsoft, Google, Apple deal ever

The WhatsApp acquisition is one of the IT industry's biggest deals. It is larger than any that Google, Microsoft or Apple have ever done. Google's biggest deal was its $12.5 billion purchase of Motorola Mobility, while Microsoft's biggest acquisition deal was of Skype at $8.5 billion. Apple, on the other hand, has never cut a deal above $1 billion

Informal talks went for over two years

Surprisingly, informal discussions between the two companies had been going for two years. Facebook founder Mark Zuckerberg first reached out to WhatsApp co-founder Jan Koum in 2012. The two reportedly met at a coffee shop in California. However, the deal started shaping up earlier this month when Koum went to Zuckerberg’s house in Palo Alto for dinner.

According to reports, this is when the conversation about a possible deal became serious. Zuckerberg is said to have proposed that the two companies join together and Koum join Facebook's board.

Biggest-ever internet deal

According to Bloomberg data, the WhatsApp acquisition is one of the biggest internet deals since Time Warner's $124 billion merger with AOL in 2001.

Also, as per Dow Jones VentureSource, the deal is the largest acquisition ever of a venture capital-backed startup.

Google’s unusual offer to WhatsApp

Google’s unusual offer to WhatsApp Google’s unusual offer to WhatsApp

WhatsApp also reportedly received an unusual offer from Google that it is said to have turned down. Google reportedly offered to pay WhatsApp in exchange for the right to be notified if the messaging app ever entered into acquisition talks with another company. 

A report in Fortune claims that Google even offered to outrightly purchase WhatsApp for $10 billion. The offer is said to be sans the promise of a seat on Google's board for Koum, unlike the Facebook agreement.