Jajah, a small Silicon Valley VOIP company, is being bought by Telefonica Europe for $207 million in an all-cash deal. Jajah's technology is designed to enable consumers and businesses to communicate over the Internet on any device and from any network. The company's voice-over-IP platform has made inroads into social networks, such as Twitter.
- After more than a week of speculation about its future including reports of interest from Cisco Systems and Microsoft VOIP vendor Jajah is being bought by Telefonica Europe. Telefonica, known better by the name O2, announced Dec. 23 that it is buying the smaller Silicon Valley company for $207 m...

UPDATE: After this post first went up, an Attributor PR representative contacted me to clarify that the company did not sell all of its video-only business to Vobile. So while the company did not provide details, it evidently still has some customers who are using its video fingerprinting product. Still, my sources confirm that the company sees little opportunity in video, and plans to focus on its text-based business. The PR spokeswoman also says Attributor "has a clear path to profitability in 2010," despite talk that the sale to Vobile is a sign of financial troubles.

One maker of anti-piracy software thinks 1,000 words are worth a lot more than a picture. Or even a movie.

According to three sources, Attributor Corp. is getting out of the market for video fingerprinting technology, which is used by studios to scour the Net to see who is watching pirated clips of their movies and TV shows. While Attributor will retain rights to the underlying technology, it has sold the customer contracts it has signed for a video-based product it began selling eleven months ago. Says one of the sources: "They're retreating from video."

Vobile and Attributor are both small and privately-held, but are movers and shakers in a market that will become far more important if moguls such as Rupert Murdoch get their way. The News Corp chief is reportedly threatening to put all of his content behind a "paywall." That way, News Corp hopes to charge Microsoft for including its newspaper articles in results of searches done with its Bing search engine, while keeping those articles out of all Google searches. To be able to police such an arrangement, he'll need some kind of fingerprinting technology to know who is reading what. “There’s going to be some real showdowns in the first half of 2010," as companies that were kicking the tires of content management systems actually begin to deploy them, says Attributor CEO Jim Pitkow. He would not comment on on the Vobile deal.

While they sell similar technology, these start-ups have very different views of the market. Vobile believes the big money is in protecting content that's worth big money--namely, highly-profitable movies and TV shows, which not only bring in millions of dollars of sales but also cost millions to create. For now, the primary focus of Vobile's customers--a list that includes Disney, Fox and Chinese broadcaster CCTV--is on preventing piracy. The Chinese government, for example, chose Vobile to help CCTV make sure its official broadcast of the 2008 Olympics wasn't pirated.

The way Vobile sees it, the place not to look for profitable growth is from text-based media companies--most of which haven't been profitable since their newspapers and magazines (including BW) began giving away much of their content online a decade ago in search of advertising dollars.

But that's precisely where Attributor has and will continue to focus. It has long been providing technology to the Associated Press, Reuters and others. Rather than stopping piracy, Attributor is focused on helping media companies get paid for their stuff--regardless of where it appears. Rather than insist that sites stop distributing their articles, media companies could insist on getting a cut on any ad revenues. In April, Attributor announced the Fair Syndication Consortium, which included companies interested in exploring the idea further. Pitkow says more than 80% of US newspapers are members of the consortium, as are 1,500 blogs, lyric sites and other publishers. “They’re all saying 'wow, this is a new way for me to make money on my content,'” he says.

Speaking of making money, news of this sale--which wasn't publicly announced--doesn't inspire confidence in Attributor's financial health. The company has raised plenty of money, but recently had a shake-up when CEO Jim Brock was bumped up to the role of chairman. Now Pitkow, one of the company's founders, is running the company. He says the company is doing just fine, and has 40 customers. And he says video fingerprinting is not the opportunity the company thought it would be when it began calling on studios this past January. He figures the entire market for such technology is less than $15 million, in part because big content companies such as Comcast and Time Warner have opted to try and monetize content on sites such as TV Everywhere rather than let it flow freely around the Web.

On the other hand, he admits that he's "under tremendous pressure to rationalize [the video] business." As a member of the text-media business he's now focusing on, I can relate. This happens to be the day when dozens of my immensely talented colleagues are leaving BW, as a result of layoffs related to our acquisition by Bloomberg (which officially occurs tomorrow). In the long run, I hope Pitkow is right that technology can power profitable new models for media companies.

Even post its recent acquisition of AdMob, Google is far from dominant in mobile ads, though it does control the largest, 24% slice of the market, according to a Nov. 23 report from consultant IDC. Google and AdMob should report $68 million in mobile ad revenue this year, IDC estimates. But Millennial Media, with its $51 million in sales, is nipping at Google's heels. And Yahoo and Microsoft are firing on all cylinders in mobile ads as well.

Chances are, Google's acquisition will prompt additional purchases by its competitors, and they won't come cheap. "....both Yahoo! and Microsoft cannot afford to not also acquire either Millennial Media or Quattro Wireless, given that Google and AdMob's combined revenue will be more than twice that of Yahoo!'s and three times that of Microsoft's," writes analyst Karsten Weide. "The problem for both Yahoo! and Microsoft is that Google's valuation of AdMob of at least ten times 2009 worldwide revenue, more likely significantly more than that, will set Millennial's and Quattro's expectations: They could expect valuations of at least $550 million and $400 million, respectively."

Microsoft unveiled a redesigned MSN.com homepage last night, as I wrote about in this story. Most of you probably aren't seeing it on your PCs, as Microsoft is rolling it out to only 10% of the US as of now. The roll-out is expected to be finished by January, says a Microsoft spokeswoman. Here's a preview link, and a couple of screen shots sent by the company.

I see on thwack here and there users posting regarding their web console and it sometimes being slow and what could be causing that.  Usually I tell them to open a support ticket since it is hard to diagnose via a forum, however, I wanted to try and compile what our Support Techs typically ask when you do open a case with Support.  I have compiled this list of potential items to look at below.

· Do you have Microsoft SQL Server running on the same box as Orion?  If so, you may want to look to moving it off box if you are monitoring quite a few things.  SQL is typically a memory hog.

· Check the average write disk queue length on the disks that the Orion database is writing to.

· Make sure no other corporate back-up programs might be running during the time the slowness is happening.

· Do you have a shared Microsoft SQL Server with multiple database instances that the Orion database is on?  What are those other database doing?  Are they starving the Orion database?

· How much memory is the Microsoft SQL Server allowed to use?  The more the better, especially as you add additional modules on top on Orion NPM, but on average 3 GB is a good starting point.

· How many users are using the website when the slowness is happening?  Do you potentially need to look at adding an additional web server?

· How many resources do you have on the page that is experiencing the slowness?  If a lot, if you reduce it, does the page perform better.

· Do you have real-time anti-virus running on the Orion server?  If so, you may want to look to exclude the inetpub directory and also if possible the SolarWinds directory.

· On the Orion server do you currently have NPM and other Orion Modules?  If so, make sure the specs on your box are up to snuff to handle them.

· Make sure you are on the latest version and if you cannot upgrade, at least the latest service pack for Orion

· Are you sending a lot of Syslog Messages and SNMP Traps to the Orion Server, on the order of tens of thousands?

· How many elements are you monitoring with Orion?  If you are running upwards of 8,000 elements with out of the box default polling setting, it might be time to get another poller

If you do try these and it is no better, by all means, please open a support ticket, but when you do, be sure to submit Orion diagnostics with the ticket as that will be one of the first things they ask from you.

Google beats out Microsoft and Novell in bidding war to replace LA’s aging e-mail system.

Problems arose from misunderstandings on both students’ and Microsoft’s part.

Google’s top channel executive used the 2009 CRN Fast Growth Conference to paint stormy picture of rivals Cisco and Microsoft.

My wife's ThinkPad, which runs Vista Business, would benefit from an upgrade to Windows 7. So over the weekend, I stopped by my local Micro Center to pick up a copy of Win 7 Professional. I had to scrounge around the store even to find a Windows display, but eventually I located a copy in a forlorn corner.

When I took it to the register, the price came up as $299. I told the cashier I wanted the upgrade version, not the full install. She looked at me blankly, then turned to a young man, apparently a supervisor of some sort. He asked me where I had found the package I had, and when I said in the software department, he said I'd have to go back and talk to someone there. If there had been anyone there I would have talked to them in the first place, so I left the software on the checkstand and headed home.

I'll order a copy from Amazon this week. Somehow, the king of online retail manages to provide better customer service without any customer-facing employees then almost all brick-and-mortar stores. Which explains why Amazon is eating everyone's lunch.

The other lesson from this little affair is that Microsoft's Windows 7 marketing is built entirely around selling new PCs, not upgrades. There was no evidence that this Micro Center, a bustling store in suburban Rockville, Md., had received a penny in Microsoft cooperative marketing funds to push Win 7.

Carl Icahn, the activist investor who helped goad Yahoo into finally doing a search deal with Microsoft, has left the board of the Internet portal.

Why's he leaving? Icahn says he has other companies to worry about, and it's not hard to take him at face value on that. And when Yahoo CEO Carol Bartz finally signed a deal for Microsoft to handle its search operations a few months ago, his reason being a Yahoo director pretty much vanished. "Carol is doing a great job and I believe the Microsoft transaction will provide great long term benefits, the potential of which many still do not understand," Icahn wrote in his resignation letter.

But I can just see him dusting his hands off, happy to rid himself of a misadventure that by all accounts lost him a lot of money. By threatening a proxy fight, Icahn won board seats for himself and two allies last August after Yahoo repeatedly declined Microsoft's unsolicited, $47 billion takeover bid. But once Bartz took over as CEO in January, he went quiet.

Most of all, though, it's apparent that Bartz had little use for him and wasn't afraid to say so. It's now up to Bartz, not the board, to turn things around at Yahoo. With Yahoo's upside earnings surprise on Tuesday, she clearly has gotten started by making Yahoo more profitable. What she really needs to show, however, is how Yahoo will start growing again.

Here is a clip of my appearance on CNBC Power Lunch today in which I hash over the state of Microsoft with CNBC anchors Dennis Kneale and Sue Herrera and VC-basher Paul Kedrosky.

We had a spirited debate and came to a consensus that Windows 7 is reviving the Microsoft franchise. I also think investors are starting to give Microsoft some credit for the recent progress the company has been making in the Internet ad business. However, Kedrosky is less bullish on that, and said he does not like the Bing story.

I couldn't disagree more. If Microsoft is able to continue to gain market share on Google in the Internet search business that would be a major advancement for the company that would really help lift the stock out of the sideways trading pattern its been stuck in the last nine years.

Attention, Would-Be Mac Shoppers: Check out these killer deals on Windows 7 PCs.

Judging from this promotion, that just showed up on Best Buy's website, this is going to be a key message from Microsoft as it launches Windows 7 tomorrow. The retailer is offering a "PC Home Makeover" bundle that includes an HP Slimline desktop, laptop and netbook, together with an LCD, a wireless router and set-up service from the Geek Squad, all for $1,199. Says Tami Reller, chief financial officer of Microsoft's Windows division, "That's less than the cost of a Mac," says .

It's all part of what sounds like a fairly massive "Seven Days of Windows 7" promotion to be announced tomorrow. Among the deals on the first day will be a 13-inch Dell Studio XPS laptop for $999 (must be a higher-end machine, since Dell's website shows the product already starting at that price), an all-in-one desktop from Acer for $899 (down from $1000-plus), and a student version of Windows 7 for $29.99 (the same price Apple charges for Snow Leopard).

Reller says Microsoft is subsidizing these "killer deals," as she puts it. She says this is the first time Microsoft has ever done this. And at least with regards to that Best Buy Home Makeover offer, the savings are substantial. Currently, the retailer lists that Slimline desktop going for $1200 all by itself. Based on current prices for these products on the Web, the overall savings to the consumer from this bundle is more than $2000.

When she made the comment about "cheaper than a Mac," I asked whether Microsoft was going to overtly go after people who might be considering a Mac so long as they have to buy a new machine. That's a phenomenon executives at Apple clearly think could work in the company's favor. But Reller says the anti-Apple theme won't be so overt. "It's just part of the overall message," she says. "Because of the choice [of different types of devices) and value we're delivering, we think Windows 7 will resonate with many different audiences--including people who might be considering a Mac."

UPDATE: I just spoke with BestBuy, who tells me my estimate of the savings on the Home Upgrade Bundle was way too high. Rather than $2,000-plus, the savings are more like $550. The difference is that the Slimline Desktop that's part of the deal is a lower-cost model created specifically for this bundle by HP. Also, BestBuy plans to keep this deal in place until the end of the year, so it's not technically part of the "Seven Days of Windows 7" promotion.

Here's the full press release from Best Buy:

Best Buy Makes Transition to Windows(r) 7 Easy

Exclusive deals on gear and Geek Squad(r) services help customers get the most from new operating system

MINNEAPOLIS, October 22, 2009 - The countdown is over. Windows 7 is available now for purchase at all Best Buy (NYSE: BBY) stores nationwide, preloaded on a broad selection of PCs for people who have waited until now to purchase new computing gear. And for those who want to convert their existing PCs to Windows 7, Best Buy is selling the new platform in-store for $89.99 to $219.99, as well as offering the convenience of Windows 7 upgrade services from Geek Squad for just $39.99 (excluding software).

Leading Best Buy's broad selection of Windows 7-ready gear is an exclusive bundle from HP that delivers in-home networking on the Windows 7 platform. Dubbed "PC Home Makeover," for only $1,199.99 customers can purchase an HP desktop, monitor, laptop, netbook, wireless router and Geek Squad setup and networking. The exclusive HP offer is available today through mid-January.

"Customers tell us they want the flexibility of multiple machines and networking, and together with HP we've created a robust solution at a very attractive price," said Jason Bonfig, vice president of computers at Best Buy. "Only Best Buy can give you all of the computer products you want plus a Geek Squad house call to make sure your new gear is setup and connected and helping you share content like movies, music and pictures."

Best Buy's Broad Windows 7-Ready Selection and Service Best Buy has converted the majority of its large assortment of PC products to Windows 7 so customers can feel free to interact with the new platform in-store before they buy. And to address diverse budget and user requirements, the selection of netbooks, laptops and desktops spans leading PC brands Acer, Asus, Dell, Gateway, HP, Lenovo, Sony and Toshiba, at prices ranging from $299.99 to $1,999.99. Best Buy Blue Shirts are ready to help customers find the right computer for them and ensure they have everything they need to get up and running.

For those customers who want to upgrade to Windows 7 without buying a new PC, Geek Squad has reduced its $129.99 operating system install service charge to just $39.99. The service allows customers to upgrade their Windows XP or Windows Vista operating system to Windows 7 without the hassle of doing it themselves. And people who have purchased their PCs from Best Buy between June 26, 2009 and October 21, 2009, will likely qualify for a free upgrade on Windows 7 software. Those customers can simply bring their PCs and sales receipts to the nearest Geek Squad Precinct and receive a free Windows 7 upgrade installed on their computers. Geek Squad Precincts are located inside every Best Buy store.

Hit by the economy early this year, search advertising looks to be on the mend. For the second quarter in a row, two search marketing firms say U.S. spending on text ads on Google, Yahoo, and Microsoft's Bing improved--or at least got less bad. The results bode well in particular for runaway search ad leader Google, which reports its third-quarter earnings on Thursday.

(Source: Efficient Frontier)

Analysts have been saying for months that as the economy improves, search advertising is likely to return most quickly among all other forms of advertising. It's seen as the most measurable, and it's also easy for marketers to increase spending literally overnight because it's largely self-service, requiring no advance commitment. But Web companies from Yahoo to countless startups also hope that an uptick in search ads eventually will open up wallets for display, video, and other online ads.

VOIP fax specialist FaxBack announces a beta of a fax ATA device, an alliance with voice over IP services company Epygi and a partner program offering to add Microsoft Fax capabilities into VOIP telecom offerings for free.
- Voice over IP fax server solutions specialist FaxBack announced a beta program for a new fax analog telephone adapter device, an alliance with Epygi Technologies and a new partner program at this years ITEXPO event in Los Angeles, which ran earlier in September. According to FaxBack, the Fax AT...