Dana Blankenhorn

Cloudflare and the Cloudless Cloud

The Cloud Czars gained dominance by putting cash flow into cloud infrastructure.

Apple, Microsoft, Amazon, Google, and Facebook now spend billions of dollars each quarter on data centers. They upgrade the ones they have, and they build new ones. This is the cloud world we know.

Cloudflare wants to change that. The company is selling a concept called “Web3,” in which every server can be a node on the cloud network.

The offering is based on distributed technology already used for cryptocurrency like Bitcoin and Ethereum. Cloudflare supports these efforts with gateways. The idea is that distributed software can now support cloud storage for less than what Amazon (for instance) charges to move data out of its S3 repository. It’s in moving data out that Amazon Web Services sees its biggest profits. Cloudflare says it can disrupt that. Amazon calls its storage offering S3. Cloudflare calls its new one R2.

Great theory. Harnessing the edge to take on the center makes sense. Letting anyone with unused space play in cloud markets sounds great. Exporting data with S3 is expensive.

Why Tech Should Buy More Media

Ever since Microsoft tried, and failed, in cable news with MSNBC, tech has been leery of investing in media.

There have been exceptions. Jeff Bezos bought The Washington Post. Marc Benioff bought Time. But these were personal investments, not corporate. They were made for political reasons, not business ones.

The result is that the media remains run by conservatives, by junk men, and by useful idiots. Fox News has been joined by OAN and Newsmax. Local papers are being destroyed by hedge funds like Alden, who are more interested in the tax breaks than the product. CNN, MSNBC, and The New York Times  remain committed to “both siderism,” which allows the right to drive the agenda.

This is threatening the country, the economy and (most important) tech. Billionaires like the Smith family, which owns Sinclair, come from the resource industries. They see labor as fungible. They see the world in black-and-white. They don’t see change and they don’t want change.

Change is what tech thrives on. It’s what tech produces. Brains are the gating factor to technology growth and it’s clear that today’s conservatives hate brains. Otherwise, they would have endorsed the vaccine and wouldn’t have pushed Trump.

A half-century ago the right saw this kind of threat and acted. The myth of the “liberal media" is based on the idea that reporters were professionals, but it didn’t understand how Vietnam was a Cold War activity. It didn’t see the coming resource wars. Only the resource industries, the oil guys and lumber guys and real estate guys, saw that.

Pay for the Clouds

Right now, the roughly $150 billion/year going into cloud infrastructure is paid for with cash flow. Most of that cash flow comes from free services.

It’s ad-supported services that are holding up the free Internet. It’s these ad-supported services that the clouds were first built to support.

The antitrust bills now zipping along in Congress try to end all the perceived “sins” of the Cloud Czars – Apple, Microsoft, Amazon, Google and Facebook. But they don’t answer the big question, which is where new cloud investment will come from if the Czars are broken up.

Amazon can do fine on its own. There is plenty of cash flow coming into Amazon Web Services to support its capital spending. Most of Amazon’s investment these days, in fact, is going into warehouses and transport fleets, which aren’t as profitable. Splitting AWS from Amazon, along with its digital services like Amazon Prime video, the Kindle eBooks, and Alexa cloud-based speaker, would be a stupendous opportunity for investors. It would let AWS grab share from Google and Microsoft because their clouds are tied to software that competes with their customers.

Netiquette: The Issue for 2020

I covered the biggest issue of 2020 back in 1988.

I covered it in two ways.

On the one hand I covered the Electronic Networking Association for Newsbytes.

The ENA featured such cutting-edge minds as Mike Godwin and Joichi Ito. They met online, using software called PARTIcipate. They were communicating across nations and time zones. It was exciting.

They didn’t want to spoil it. They developed rules known as Netiquette to define proper behavior.

Netiquette can be summarized thusly: be nice. Assume goodwill. Be polite. Accept disagreement as legitimate. Don’t lie to make a point. Remain inquisitive and friendly. Understand that the person reading what you “say” can’t read your body language. Account for that.

Copyright Wars 2020

My #1 life goal is to be plagiarized. THERE IS NO GREATER ACHIEVEMENT OR HONOR.

                                                                                ---Tom Peters 

                I first wrote about the Copyright Wars in 1997, when the Digital Millennium Copyright Act was being debated.

                I predicted, in my first version of Moore’s Lore, which came out in the year 2001, that “East Coast” laws like this would fall to the “West Coast Law” of code.

                This is not the way things are working out in 2019. The Internet’s ability to serve mankind is threatened as a result.

                As Tom Peters notes, there is no real value in an idea. An idea is only worthwhile if spreads, or if it’s acted upon. For this to happen it must be communicated, disseminated, and digested by many other people.

                The Internet, specifically the World Wide Web, is the means by which this now happens. The Internet lets any idea, from anyone, reach an audience and change people. Or not.

                But two things are happening. First, bad ideas are getting the same power to change people as good ideas, because no one can credibly tell everyone the difference. Second, the copyright industries have moved to stop the distribution of ideas, under the mistaken belief that there is value in them, and that anyone repeating them should pay.

                Trump illustrates the first point well, although anti-vaxxers and other idiocies would exist even without him. It’s in the nature of the Internet to eliminate gatekeepers, and those companies that have risen to that position, like Facebook, Google and Twitter, eschew the role, fearing it will let government prevent protest (which it can).

World War III, The Internet War

World War III is an Internet war. It has been ongoing for over a decade.

When the conflict was between countries like Pakistan and Ireland, or Ukraine and Russia, we could afford to ignore it.

Then it came to our own shores. November 8, 2016 was this war’s Pearl Harbor.

Yet we still haven’t reacted, because once the enemy is in the tent the media thinks going after them is friendly fire.

There’s nothing friendly about it.

Sure, there are efforts underway at Google and Facebook to boost “real news” and dissuade “fake news.” Yes, there are efforts underway in Congress to control online political spending. Yes, there is the Mueller probe.

But these are nothing. We still see the Internet War as something we can stop with higher firewalls, or bigger budgets.

We can’t.

Common Carriers

A key to understanding 2019 will be the issue of common carriers.

In just one decade the “Cloud Czars” – Apple, Microsoft, Google, Amazon and Facebook – have replaced the telecommunications and broadcast industries with a new system, using their infrastructure.

We don’t make overseas calls anymore. We Skype. We don’t watch TV. We stream.

The cloud was built without government subsidy or interference, in a competitive free for all in which the winners invested while the losers did not. The industries replaced by this infrastructure were built as monopolies, under systems of regulation controlled by the Federal Communications Commission and, when necessary, courts.

This made sense, in terms of both capital preservation and technology, at the time.

Re-evaluating J.P. Morgan

The Greatest Progressive of American history was J.P. Morgan. But he wouldn’t be one today.

Let me explain.

Businesses have always talked up the idea of progress, of change. It’s at the heart of the progressive idea, a constant, incremental improvement. Progressives believe in things getting better, and the way they usually get better is by something better coming along. Better products, better services, and better ways of doing things. Today these are all byproducts of competition.

They weren’t always.

Morgan was active from the Civil War through the first decade of the 20^th century. He is usually portrayed as either a colossus or an octopus. He was the man behind the “trusts.” Trusts were evil. He was Teddy Roosevelt’s great nemesis.

But was he? We know the men were close. Morgan and Roosevelt were both Republicans.

What is undeniably true is that, during Morgan’s time, America and the world were short on capital and on basic infrastructure. We couldn’t afford to have several rail lines serving the same point, or several telegraph wires serving the same office. That would mean other points and other offices got no service.

On Net Neutrality

If you have been reading this blog for any length of time, you no doubt believe that I’m a radical. A liberal. A fanatical criminal. 

In some ways this is true. On foreign policy I’m an internationalist who believes in peace. On social policy I believe people should be free to love who and what they want, and to kill themselves in any way that suits them.

This is not true in economic policy. I still consider myself a liberal here, but business was always a liberal force before the Nixon era. Progress is a business word, still often used in advertisements to denote the aims of oil companies and manufacturers, as well as tech outfits.

My economic beliefs are based on those of Adam Smith, who saw wealth inclining the wealthy toward the common good. I consider Trump and his acolytes to be Nietzscheites. (Ayn Rand is just Nietzsche in a skirt.)

More to the point, I consider them Fascists, and resent that I can’t use the word in public without being condemned.

So, when it comes to the subject of net neutrality, I’m sure you’re thinking, Dana is going to tell us that the FCC is wrong, that Democrats are right.

I’m not.

Taking Responsibility for the Internet

Apple CEO Tim Cook angered me recently, complaining loudly about “fake news” on the Internet but failing to say he would do anything about it. Or so it was reported by many news outlets.

The truth is more nuanced. Cook is seeking a technological solution, something that scales, against what he sees as a human problem. Passing along lies may be “your prerogative” but it is the medium’s responsibility to slow the spread of lies and take action against persistent liars.

This is a hard truth the Internet industry is just waking up to, in the Age of Trump.

CrossCheck, a system for flagging fake news in France, which holds a Presidential election this spring, is Version 1 of the emerging solution. It’s important to note, however, that it’s just Version 1. Leading companies must undertake an open source process before a real solution can be implemented.

The big difference between our era in American history and those that came before is that the industry which dominates our economy also created the dominant medium. Most Americans now get their news through social media, through Web sites that deny categorically they are even media companies. 

The result is a media landscape that can easily be gamed. Russia gamed it. Donald Trump is the result.