Posts tagged as:

Israel

Getting Away from Technology

by Brian Blum on September 6, 2010

in Interactive,Media,Research

A student on a class trip to Poland

I wrote in an earlier post about how human beings aren’t built to truly multitask – an action we increasingly rely on to parse all the data coming at us from the web or our mobile devices. New research is trying to figure out not only what happens psychologically when we try to do two things at once, but whether our brain neurology is being re-mapped by our incessant use of technology.

The preliminary answer seems to be yes, and it’s not necessarily good news. New York Times technology journalist Matt Richtel participated earlier this year and is now writing about a unique week-long backpacking trip undertaken by a group of scientists where gadgets were banned and their itinerary took them far out of the range of cell phones.

Would these highly connected researchers act – no, think – differently in such a situation, he asks?

The scientists were split, according to Richtel in an interview with Terry Gross on NPR’s Fresh Air interview program, with some feeling that “the constant stream of data was making it increasingly difficult to focus and concentrate” and others saying “the benefits of having constant access to information far outweighed any consequences.”

But all of the scientists noticed that they began to feel more relaxed and more engaged in the world. They slept a little better; waited a bit longer before answering a question. “You don’t feel in (such) a rush to do anything, your sense of urgency fades,” Richtel says.

But only after three days – that was the amount of time for the disconnect effect to kick in. This might explain why we feel more relaxed after a three-day weekend as opposed to a “normal” two-day break from work.

Why is this the case? A laboratory study had rats learning new tasks. When the rats were given time away from the task to process it, the action moved into memory and real long-term learning took place. Without that down time, the rats were more prone to forget what they’d just done.

We can extrapolate that, Richtel says, to our contemporary lives, where we rarely give ourselves a break. If we’re waiting for an appointment and the person we’re meeting is late, what do we do? We pull out our smart phone and check email, text, browse the Internet or play a game. Even people without smart phones may listen to music on an iPod.

What we need to do, Richtel claims, is simply “be,” to not fill every moment with something electronic, to let the learning consolidate in our brains.

Richtel is certainly not advocating a ban on technology. He is adamant that our use of the web and mobile devices has made us more productive – he uses the example of using a Google map to find an address than having to call the person and write down directions  – and he readily admits he couldn’t survive the 21st century without his addictions.

And addiction it is. Why do you feel compelled to check email constantly, for example? Because you never know when there will be something exciting coming in. Each new message gives the brain a squirt of dopamine. If you had advance warning that interesting messages would only be delivered at 4:00 PM, you’d be less inclined to alt-tab to Gmail throughout the day.

Indeed, The New York Times reports that the average computer user checks 40 websites a day and can switch programs 36 times an hour!

Technology is like food, he posits. You need to eat and there’s no reason not to appreciate tasty (and hopefully nutritious) meals. But “we know that some food is Twinkies and some food is Brussels sprouts,” Richtel quips. And we’re well aware that you can also over-eat which has obvious negative consequences.

What about our teenagers who are growing up on ubiquitous screens, frantically checking Facebook, email, tweets, chat and Skype wherever they are? Will their brains look different than those of us who had to go into the living room to get access to a screen (the television)?

The research is pointing to yes. Our brains are elastic, Richtel explains. It’s not as if our ways of processing information is fixed at birth and never changes. Each new technology modifies the neural pathways, in particular the frontal lobe which is the last to develop. How it does that is the subject of upcoming research which Richtel will be writing about later this year.

While our 17-year-old daughter Merav was away on a school trip to Poland this summer, she made a point of not checking in online. Merav’s experience in Poland, visiting lost Jewish communities and crying at the concentration camps, was intense – “difficult but meaningful” is how she described it upon her return home. Was her level of engagement different than her peers, many of whom were texting away at the dinner table?

It would be presumptuous for me to make such a claim. But it’s undeniable that our use of technology profoundly affects us. I, for one, am looking forward to the Jewish holidays this year – Rosh Hashana and Shabbat coincide in such a way that those who observe the High Holy Days according to a more strict interpretation of Jewish law will have a full three days of enforced technology deprivation.

I wonder how I’ll feel on the other side?

Matt Richtel received the Pulitzer Prize in 2010 for a series in The New York Times on driving while multitasking.

A shorter version of this article appeared on Israelity.

{ 0 comments }

Software: Heal Thyself

by Brian Blum on August 10, 2010

in Israel,Products,Research

ibm-research

IBM research facility in Haifa

If your computer gets sick, would you rather give it a full system overhaul or the equivalent of a digital Advil to relieve the symptoms? Onn Shehory and his team at Israel’s IBM Haifa research facility have developed much more than a computerized analgesic. Say hello to the world’s first self-healing software.

The project – called SHADOWS for “a Self Healing Approach for Developing cOmplex softWare Systems” – was proposed by Shehory and funded by the European Union’s 6th Framework Program, a technology initiative that invests in promising international endeavors. The idea was to emulate how the human body behaves and apply it to software.

“When you develop some sort of dysfunction, the body senses this and reacts automatically,” Shehory says. “It is essentially self-monitoring.” SHADOWS does the same for computer systems. “It recognizes specific misbehaviors, classifies them into possible types of problems, and then for the serious ones, makes the appropriate adjustments,” he says. This may include inserting new lines of codes before a program runs or moving around memory resources, to prevent the most common reasons for system crashes.

In the case of memory, for example, Shehory explains that “we can manipulate the usage of memory without actually knowing where the problem is coming from. We don’t have to find the bug, just to know that something is wrong.”

That’s the same way that a pain and fever medication acts on the body. “Instead of a week of fever, you might just have a half an hour at the end of the week,” he says. “It doesn’t remove the root cause – the virus – but it will prevent the fever from coming back for a long time.

“In order to continue benefiting from the advances and innovations becoming available in the IT landscape, software developers and architects must begin to design software… to incorporate internal safeguards that can both identify and repair problems,” adds Yaron Wolfsthal, head of the Reliable Systems Technologies group at the IBM Haifa lab.

The need for self-healing software is clear: Computer systems are now ubiquitous, a part of everything from dishwashers to managing a countrywide electricity grid. The problem is that software systems are inherently buggy. Even utilizing software testing, reviews and other protective measures, “with millions of lines of code, it’s too difficult to identify all the problems in advance,” Shehory says.

Traditional approaches to fixing software have meant calling on engineers to sift through the code, locate the bug and repair it – a process that’s akin to searching for a needle in a digital haystack. And yet, “we can’t afford for systems to fail on critical missions… or even non-critical missions,” exhorts Shehory.

SHADOWS doesn’t go so far as to create self-aware artificial intelligence – no worries about a Terminator-style SkyNet attacking the planet. Nor is it specifically targeted at preventing terrorists from bringing down global networks. “It’s not about security, it’s about the robustness of the code,” Shehory explains, although he suggests that since SHADOWS can identify problems as they start to brew, it may allow programmers to jump into action if they sense a cyber-attack is imminent.

SHADOWS is sophisticated but doesn’t require any changes to existing legacy computer systems – it can sit alongside those programs monitoring their action and only start working its magic when it detects something awry. Shehory hopes, however, that programmers will speed things up by manually inserting “comments” when they write the software that can direct SHADOWS to look at, say, only 10,000 rather than a million lines of code.

The genesis of SHADOWS was a proposal IBM in Israel made to a European Union program that promotes collaboration in research and technology across Europe. Eight other partners joined IBM in the three-year, $5 million project – major universities including the University of Potsdam in Germany and the Brno University of Technology in the Czech Republic, and technology heavyweights such as Phillips Electronics of the Netherlands and the Spanish phone carrier Telefonica, which provided a case study on the use of the SHADOWS technology. The EU pays for 50 percent of the project with the IBM lab responsible for the other half.

Despite the innovation, SHADOWS is not yet ready for prime time – it’s more a general research-oriented framework than an actual, saleable product – although parts of it may be commercialized. Each partner in the project owns its own intellectual property should a marketable solution ultimately be developed.

In the meantime, Shehory is considering applying for a second stage grant to address the technology’s biggest limitation: The resistance of the people who write the computer systems that need SHADOWS to inserting machine-generated code automatically into their babies.

“The psychological effect is very strong,” Shehory admits. “If SHADOWS writes some new code, the programmer might be hesitant, thinking ‘can I trust this, will it work properly?’ “The solution may be as simple as adding a feature that “recommends” the change, allowing the engineer to decide whether or not to accept it.

Still, Shehory says, “we’re trying to find technical ways to address this difficulty without human intervention.” Software – heal thyself.

This article originally appeared on Israel21c.

{ 0 comments }

PokeTalk Woman on Phone

Do blondes have more fun on PokeTalk?

In January 2009, I wrote an article for Israel21c about PokeTalk, a then new startup offering free VoIP calls using regular phone lines. I bumped into the company’s founders Shai Genish and Boaz Bahar Wednesday night at a meeting of the TechAviv Founder’s Forum and I thought I’d share the original article with you here on the Blum Interactive Media along with some company updates.

The 2009 article was topical, coming in the midst of Israel’s Operation Cast Lead operation in Gaza. Since then, the company has expanded its offerings to include paid calls that can last longer than the free service’s maximum 10 minutes duration, along with many other cool features such as web callback and analytics.

But I also heard some disturbing news: PokeTalk has been hit by a significant amount of fraud where unscrupulous hackers have redirected calls, resulting in tens of thousands of dollars in charges for PokeTalk. The situation has gotten so bad that the company is now investing in building its own security software which will also be available to other VoIP services and not just PokeTalk.

Shai and Boaz are both very sincere and enthusiastic Israel entrepreneurs who I like a lot. So, here’s the original article without changes.

—————————————–

Residents of the southern part of Israel in range of missiles from Gaza can now make phone calls up to 30 minutes to their friends and relatives entirely for free, thanks to a new Israeli startup called PokeTalk. The service, which is already operational in 60 countries around the world, is good for any calls between two phone numbers in Israel’s 08 area code.

PokeTalk has been flying high since its launch three months ago. The company, founded by two 25-year-olds in Tel Aviv – Shai Genish and Boaz Bahar – has signed up 70,000 users nearly entirely on word of mouth and viral marketing alone.

The service, like fellow Israeli-founded company Jajah, uses voice-over-IP to connect regular phones, not just two computers.

As with any good idea, though, there’s a catch: calls are limited to 10 minutes. The promotion on Israel’s front lines triples that amount.

Ten minutes (or even 30) may seem like a deal breaker but, says Genish, the average call placed is only two minutes and 40 seconds. And 70 percent of calls from a mobile phone are a mere 80 seconds. “Other than for business calls, 10 minutes is usually more than enough.”

PokeTalk is essentially an automated version of the call back systems that were once popular in Israel as a way of saving money. But rather than calling a certain phone number, with PokeTalk you enter your number and the number you want to call on the PokeTalk site. A few seconds later, your phone rings. You pick up and PokeTalk places the call.

I took a test drive and the quality is quite good – certainly on a par with other voice-over-IP systems like Vonage, Gizmo5 or even Skype.

So how can PokeTalk offer even 10 minutes of talk time for free? On-site advertising. Since you’re required to initiate your call from the web, PokeTalk can show you advertisements on screen. That’s a whole lot less annoying than some other free phone systems that put 10-second audio ads before a call is connected.

After only three months in operation, PokeTalk is far from profitable – only 50 percent of calls are covered by ad revenue – but the small eight-person company has raised $1.25 million from Maayan Ventures and private investors. Genish says he hopes to be in the black by the end of 2009.

PokeTalk calls can originate from 13 countries – including Israel, the US, Canada and Germany, though notably not the UK – and can be connected to 60 nations, from Kazakhstan to New Zealand. Mobile phones are supported in nine countries.

Of PokeTalk’s 70,000 users, 40,000 are in Israel. A viral “refer a friend” program has been successful at recruiting new users too (if your friend signs up, you receive an extra 10 minutes on your next call).

On an average day, up to 7,000 users login and make close to 18,000 calls.

The company has been featured on Israel’s Channel 10 news and in The Marker and Globes business supplements. Genish estimates that a series of interviews that appeared in the “VoIP Guides” online publication led to some 10,000 new users.

The company’s current promotion in the south of Israel probably won’t generate a significant number of new customers, but it’s a noble gesture that helps local residents in tough times.

{ 0 comments }

A Neat Trick for Scheduling Meetings

by Brian Blum on March 21, 2010

in Israel,Products

neatcalltNew startups have the best shot at success when they address a “pain point” – an issue that causes discomfort, annoyance or even loss of business.

Tel Aviv-based Neatcall targets just such a situation, one that will be immediately familiar to anyone who’s ever tried to schedule a meeting with two or more participants: Seemingly endless phone or email tag.

Neatcall’s solution is to marry mobile technology with a seemingly simple voting system. But as with any good start up, there’s a lot more under the hood.

“On average, setting up a meeting with more than two participants is a process that can take between half to a whole working day,” Neatcall CEO Dan Benger says.

We’ve all been there. A meeting initiator calls or sends out a message to the people who are required to attend. The respondents reply with their availability and the initiator then tries to find a time that works for everyone. Automated services, such as Microsoft Exchange, can speed things up, but they don’t eliminate the essential “trial and error” nature of a task that often seems to stretch on forever, especially if not all the participants are sitting at their computers at the moment the message is sent.

This is how it works: The initiator selects several free time slots from his or her calendar. A message is sent out to all attendees who then vote on which slots work best for them, in their order of preference. The Neatcall system tallies up the votes and shoots back the optimal time. If all agree, Neatcall books the meeting, sends out a confirmation notice, and follows up closer to the meeting’s actual time.

So far, the system is neat, so to speak, but not a major breakthrough. But Neatcall has another trick up its digital sleeve. It sends out its messages via multiple mobile formats – email, SMS, WAP, instant message or via the browser to a smart device like the iPhone or Palm Pre. Even on a basic phone, people can vote by simply responding to an SMS – “send S to select the first date, T for the second date” and so on.

Neatcall also offers location management so that scheduling requests are sent to attendees in the appropriate time zone. For iPhone users, there’s an app available from the Apple App Store.

It’s no surprise that Benger was the man to recognize the need for Neatcall, seeing as he previously served as VP of international marketing and business development at web and video conference call solutions company Interwise. Customers were satisfied with the quality of the conference calls, he says, but they frequently complained about how difficult it was to set up those calls. Interwise was purchased by AT&T in 2007 for $121 million.

In addition to its innovative approach to scheduling meetings, Neatcall also offers to conduct your meetings for you, with a package that comprises chat, audio and video conferencing from a single unified site.

While Neatcall’s basic innovation should help to solve an existing problem, it may be difficult for the company to make headway with the rest of its package, given that the market is already saturated with conferencing companies such as Webex and GoToMeeting which lead the space.

Benger is hoping that the fact that Neatcall’s service is entirely browser-based, unlike competing software which requires users to download an application, will make the difference.

Neatcall sells its service directly to companies – Benger says there are several deals in the pipeline but won’t reveal their names – for up to $12 per user per month, with the price depending on whether Neatcall is handling just the scheduling or total conferencing delivery. About 200 corporate users in Israel, Europe, Australia and the US have already tried the system.

With only four employees, a few contractors and an investment of $500,000 from the Netanya-based incubator Targetech and Israel’s Chief Scientist’s Office, Neatcall is small, but looking to grow.

When I set up my interview with Benger, he used Neatcall to handle the scheduling. I received confirmation and reminders via both email SMS. And that was just, well (wait for it)… really neat.

I wrote this article last year for Israel21c – here’s the link.

{ 0 comments }

Israel’s Top Ten Must-Have Gadgets

by Brian Blum on March 10, 2010

in Israel,Products,Startups

Israelis love technology. They are early adapters, and relentless innovators, always looking for ways to improve their lives in every possible area.

With the country’s talent for development, it’s no surprise that some of the world’s top gadgets were designed and developed in Israel. Israel21c asked me to put together a list of the ten best. Here’s my take:

1. DiskOnKey
sandisk-cruzer-micros 2
Dov Moran, founder of Modu (see below), previously hit the big time with his company M-Systems, which developed the very first DiskOnKey (or DiskOnChip as M-Systems originally dubbed it).

The concept is simple enough: Jam up to 64 gigabytes of data onto a tiny gadget no larger than a house key. The latest versions actually look like a key and can hook onto your key chain.

DiskOnKeys were part of the “one-two sucker punch” that killed the venerable floppy disk (the other being cheap recordable CD-ROMs and later DVDs). Aside from being a reliable way to transfer data from computer to computer, disk-on-keys are now finding new life, expanding the storage space of the latest portable craze, the NetBook.

In 2005, PC World named the DiskOnKey one of the world’s top 10 gadgets in the last 50 years. In 2006, international powerhouse SanDisk purchased M-Systems for $1.6 billion.

2. Powermat
CES-Powermat3x_Netbook 2
How many power cables do you have running under your office desk for all your computers, hard drives, modems, routers, etc.? How about those kitchen appliances and their connections to the sockets? Wouldn’t it be great to get rid of the clutter?

That’s what Powermat promises to do. The Israeli company’s technology lets you embed a power grid in just about anything – from a desk to a kitchen counter. Then, with a wireless receiver hidden inside a device, there’s no need for plugs anymore. Just position the device or appliance near a power “hotspot” and away it goes.

In a demo on the company’s website, a salesperson goes so far as to pour water all over a “Powermatted” kitchen counter – with no burn-outs or electrocutions. Other demonstrations show iPods and Blackberries charging when simply placed on a table.

The company is a joint venture between Michigan-based HoMedics and Israel’s Powermat. The first products will be available in time for this winter’s shopping season.

3. Epilady

epiladys
The story of this gadget is fraught with intrigue. We’re talking about a hair removal product invented in Israel that now has copycat versions worldwide. The original Epilady “epilator” was released in 1986. It had a rotating spring that worked by catching hair and pulling it out. It isn’t pleasant but, according to women, it works.

Newer versions have more of a tweezer action. Either way, the result is not unlike a waxing treatment, except that you can do it yourself at home, for a fraction of the cost. An Epilady treatment lasts up to four weeks.

Epilady was the first but has been surpassed by international brands including Braun and Remington (Epilady sued Remington over patent infringement but lost). Still, the company has sold 28 million units over a 23-year career and now sports 13 different models from the “Traveler” to the youth-marketed “Epigirl.”

Ironically, when the first Epilady came out in Israel it was given the “American” sounding name “Nice and Easy” while the company used the “Epilady” moniker overseas.

4. Modu

modu-phone-jacketss
Modu
looks something like a cell phone and something like an MP3 player, but isn’t really like anything you’ve ever seen before. Essentially, Modu is a tiny device with cellular capabilities that can be slipped into any number of “jackets” to give it a specific functionality. One jacket transforms Modu into a full MP3 player, in another it’s a camera. The plan is to create a mini-economy around Modu accessories.

Our favorite Modu jackets: Modu Executive (looks like a Blackberry); Modu Love (a stylish cell phone with a big heart); Modu Kids (imagine a cute green Nintendo DS); Modu Boombox (a little phone with big, built-in bass-enhanced speakers); and the Modu Bicycle Mate (that snaps onto your handlebars).

The company is facing increasing competition from Apple, Nokia, Palm and others, which may be why, despite raising nearly $130 million since its launch in 2007, Modu recently laid off 80 employees. Still, the news isn’t all bad. Just a week before the layoffs Modu announced the launch of a touch screen jacket using Google’s Android mobile operating system.

5. Boxee

Boxee Interface
Boxee
isn’t exactly a gadget. It’s software that’s intended to be integrated into other companies’ gadgets as their Internet media operating system. If it were just a TV playback system, Boxee wouldn’t be so hot; after all Microsoft and Apple have similar solutions. But Boxee excels at playing all types of video, audio and even image files. YouTube, NetFlix, Flickr and Pandora are all built in. And Boxee also plays well on the Xbox.

There are also a bunch of nifty social networking features that allow you to share what you’re watching with friends or tweet in real time.

Boxee announced recently that it is coming out with its own standalone hardware – the “Boxee Box.” In the meantime, you can install it on any computer you have – absolutely free. We installed Boxee on the laptop we have connected to our television and we love it.

6. Eye-Fi

Eye-Fi
Here’s an idea that’s so obvious it’s a wonder no one else thought of it. You’re at a family event, your child says his or her first words and you have the good fortune to capture the moment with your digital camera. You want to share it with the world but to do that you’d have to get back to your house, plug the camera into your computer via a USB cord, upload it, and then post it to Facebook or your blog.

With Eye-Fi you can upload those photos wirelessly from anywhere. The company sells a standard SD card (that you need to run your camera, anyway) that has built-in WiFi connectivity. That means that anywhere there’s a hotspot (which these days is just about everywhere) you can upload your photos to one of 25 sites that you specify in advance through the Eye-Fi software.

The Eye-Fi works with all the top cameras, from Canon to Kodak. The company was founded in 2005 and two of its four founders, Yuval Koren and Ziv Gillat, are Israeli.

But we have to ask: Is there still a market for a wireless SD card? Anyone with an iPhone already has the ability to wirelessly upload pictures – and even video – immediately. The answer: Standalone cameras with higher resolution than a phone-cum-camera haven’t gone the way of the dinosaurs yet, nor is there any reason to think that they will, which means Eye-Fi has plenty of visibility ahead.

7. MobileEye

MobileEye
Speaking of visibility, another Israeli high-tech company, MobileEye, combines a tiny digital camera with sophisticated algorithms to help drivers navigate their vehicles more safely.

Consider the lane departure warning system. When a driver starts drifting out of a lane or doesn’t use the turn signals, the system rings an alert. The MobileEye application is so sophisticated that it can even sense when a driver is “about” to change lanes inadvertently.

Fused with the car’s steering system, MobileEye takes the camera that much further. Other applications include a forward collision warning, traffic sign recognition and pedestrian detection.

MobileEye has been around since 1999 and has deals with GM, BMW and Volvo, among others. The company maintains R&D in Jerusalem but is now headquartered in The Netherlands.

8. Ctera

ctera-cloudplugs
Israeli company Ctera makes a small gadget that connects to a USB hard drive, transforming it into a cloud-based offsite storage system.

It’s a two-step process. First, data is backed up from your main computer to the external drive. Next, it’s sent to servers “in the cloud.” The result is that your computer isn’t constantly sending data to the Internet and slowing down processing speed. With this gadget multiple computers can now be connected to a USB drive that used to be tethered to just a single machine.

Ctera’s “Cloud Plug” is small enough to fit in an envelope which can be mailed from an ISP (Internet Service Provider) to its customers. ISPs like the device because it gives them a way to monetize all the online backup traffic they’re losing to third party services. Ctera also sells the gadget direct to the public for $199. Given that it’s not a question of if, but when, your hard disk will die, cloud storage has a rosy future. Ctera aims to be in the thick of it.

9. Easy-2-Pick

easy2picks
Airplane travel is stressful. There are the security checks, uncomfortable seats, tasteless meals and then, of course, there’s the fact that you’re hurtling through the air at breakneck speeds in a tin box. But perhaps the worst party of all is waiting for your luggage. You never know when it’s coming up the conveyor belt. You grab a bag only to discover that it belongs to someone else. Wouldn’t it be great if you could just sit back and wait for your luggage to alert you when it’s arrives?

That’s the idea behind a simple device from Easy-2-Pick, a small Israeli company founded by two American Express travel agents. The gadget has two components. One piece attaches to the luggage, the other fits in your pocket. The range between the two pieces is only 15 meters, so the alert only sounds (it also lights up and vibrates) when your luggage is close by.

The Easy-2-Pick system was red hot when we first wrote about it last year. It seems to have floundered since then as the inventors search for distributors. Still, it’s a wonderful idea and we hope it succeeds. Imagine the same technology being applied to your keys… or your car, when you can’t remember where you parked.

10. Medical imaging via cell phone

rubinsky_smIn the Western world, we take for granted high-tech tools for physicians and hospitals such as the hand held ultrasound wand that displays the heartbeat of a fetus or detects a tumor. But how would you use that same device in a remote village in Africa where there isn’t even any electricity?

Boris Rubinsky, a professor at the Hebrew University in Jerusalem, has come up with a novel concept: blend the wand with a cell phone. The phone powers the medical imaging device, then transmits the resulting data to a central processing facility – perhaps even in Israel – where it’s turned into an image which can then be messaged back to the village physician’s phone

The entire process is not unlike the trend in medicine in recent years where X-rays taken in the US are sent to Israeli radiologists for review and then returned via the Internet – saving money and time (it’s daytime in Israel, while it’s still night in the US when radiologists may not be so readily available).

Rubinsky’s life saving gadget is still just in the prototype stage but it has a promising future (and Rubinsky has the patents to back it up). Next in line: Rubinsky is working on a gadget that will extract small amounts of electricity from potatoes – just enough to charge a cell phone in those same far flung third world villages.

{ 0 comments }

Great Deals or Hidden Scam?

by Brian Blum on February 21, 2010

in Entrepreneurs,Media,Products,Startups

Free Israel logo 2The courts have ruled that the service is legal, but it still leaves a muddled taste in my mouth. I’m talking about Free.co.il, a popular Israeli auction site that works more like the Lotto than eBay.

You can’t help but be drawn in by Free.co.il’s home page which promises a Sony Playstation for NIS 99 ($26), a MacBook Air for NIS 299 ($79), and even a brand new Mazda 3 for a steal at only NIS 899 ($237). Who wouldn’t want to play with deals like these?

At first, it would be hard to distinguish Free.co.il from a traditional eBay-style auction site: you place your bids on items for sale and the highest bidder within the auction’s time frame wins. Unlike eBay, though, you have to pay for your bids. The cost of each bid varies; for the MacBook, it’s NIS 20 (about $5). It’s higher for bigger ticket items.

So, let’s say you bid 20 times to win that MacBook. You’ll pay NIS 20 x 20 or NIS 400 ($105). Then you pay the price of the unit, plus shipping of NIS 75 ($20) – written in tiny letters on a separate page you have to click to see. Your total cost: NIS 774 ($206). That’s still way less than the retail price of NIS 8,899 ($2,400) at Apple’s Tel Aviv outlet, but it’s not the NIS 299 that was initially advertised.

And what if you don’t win? Then you lose the NIS 400 entirely. That’s how Free.co.il can offer such low prices.

Still, if you place your bids right (and there is a whole section on “bidding strategies” on the site), and you’re willing to stick with it and spend hours aggressively placing last minute bets, you will win eventually (hopefully for an item you actually want). So, even if you wind up spending NIS 2,000 bidding on several items before winning one that’s valued at NIS 10,000, you’re still getting the product at an 80% discount.

There’s one other trick Free.co.il has up its digital sleeve. If two people bid the same amount, both bids are canceled. That means that the highest “unique” bid wins. You can see who’s placing what bids, their initials and even where they live, but not the amount they’re spending. So you never really know if your bid is being burned or not.

Free.co.il is entirely in Hebrew, but there’s a thriving market of overseas competitors. Is this a good business? Investors seem to think so. One of Free.co.il’s rivals, Swoopo, has raised an astonishing $14 million. Another – BigDeal – has a $4 million war chest and some Silicon Valley luminaries at the helm.

It’s certainly compelling – who wouldn’t want an iPhone at a tenth of the retail price – though I don’t think I’d have the stomach for it (I usually chicken out and click the “Buy it Now” button on eBay). And it peeves me that Free.co.il buries those hefty shipping fees in hard-to-find small print – it makes me wonder what else are they hiding.

But if you’re willing to play by the rules, and you enjoy the thrill of the game, Free.co.il could be the 21st century version of “The Price is Right.” All we need now is our own Israeli version of Bob Barker.

This article originally appeared on the Israelity blog.

{ 0 comments }

Sweatshops and Social Justice

by Brian Blum on February 3, 2010

in Employment,Entrepreneurs

sweatshopI’ve apparently started running a sweatshop. I didn’t mean to. It’s just what the market seems willing to bear.

It began with a small task. I wanted to move the content on my personal blog from one platform to another. Over the last 7 years, I’ve written well over 400 articles for This Normal Life.

I estimated that it would take between 3-5 minutes per post to transfer. That involved copying and pasting, adding categories and tags, and downloading and then re-uploading any images.

I was able to cut some of that time off by exporting from the original site into an XML format, but the process was flaky and many posts were just dropped indiscriminately.

I didn’t relish the idea of spending hours at a mind-numbing task. So I set out to find a “virtual assistant” who could do the job for me. I initially thought about posting an ad on eLance or oDesk but I really preferred to give it to someone local.

I was thinking that it would be a perfect job for a high school student, so I priced it at NIS 20 (about $5.00) an hour. The candidate who won the job was not a teenager, though. She was a mature adult whose hours working in the office of a major Jewish Federation had just been cut.

I felt terrible about employing someone so competent for such a paltry sum. But she’d accepted the offer willingly.

A week later, I put out another ad, this time for voice talent to record a number of dialogues for a language learning project I was hired to produce. I offered 50% more that my first go – NIS 30 ($8)/hour for about 3 hours of work. I was inundated by calls and emails – close to 50 within two days – including semi-professional actors, singers and performers with TV and radio experience. No one was balking at the low pay even though a proper rate for this kind of work would be 3-4 times higher.

The whole issue has given me pause for concern. Is the economy so bad that people are willing to settle for so little? And is it right for me to offer such rates?

And yet, if I outsourced the work to India or Malaysia, I would be a fool to pay Western salaries. And indeed, I recently had a logo designed via the Internet for the ridiculously low price of $30. A highly qualified local designer quoted me $700 for full branding.

The sweatshops where many of our grandparents worked on the Lower East Side of New York could get away with near slave labor prices, but that wasn’t good for the workers, nor would I say for the souls of their employers. A socially just policy should have the boss paying a fair rate, regardless of what the market can bear.

I’ll probably send my artwork requirements overseas again. But when it comes to my virtual assistant, I’m doubling her pay next time. There’s more to business than bragging over a bargain.

A shorter version of this article originally appeared on the Israelity blog.

{ 0 comments }

Ginipic: Image Search on Steroids

by Brian Blum on December 24, 2009

in Entrepreneurs,Home,Israel,Products

GinipicIt’s happened to all of us at least once or twice in our careers. We’re writing a school paper or updating a website and we need a photo or graphic image to illustrate a point.

That usually entails searching a number of different photo sharing sites such as Google Images, Flickr, TwitPic, PhotoBucket, and others. Once you’ve found the picture you want, you have to click through to see the full size image, right click to download it, then choose Import to paste it into your Word document. And that’s assuming you’ve received the copyright clearance to use it.

What if you could do all this in 2 steps? That’s the idea behind Ginipic, a small Israeli startup with a big idea. Enter a search term and the Ginipic application crawls 15 different web-based photo sharing application. The software then presents the results on a single screen.

That’s already a big improvement from Google’s image search, which only displays a maximum of 25 photos on a page, requiring users to click the “Next Page” button repeatedly.

Ginipic will even search your own computer.

Once you find the image you want, simply drag and drop it into the application you’re using – whether that’s Word, PowerPoint or an email program. The Ginipic application is designed to work “side by side” with other programs to help eliminate switching back and forth between screens.

Ginipic shows copyright details and a photo’s Creative Commons status to keep you from inadvertently infringing (a dollar sign and a large “Buy Now” button appear when an image isn’t free).

Other goodies include the ability to instantly share images on social networks, set an image as your desktop background, and save it to a built-in “lightbox” that contains only those pictures you’ve selected to view.

The service is the brainchild of three young Israeli entrepreneurs and childhood friends from Even Yehuda: Lior Weinstein, Noam Finger and Orr Sellah (who, not coincidentally, are also the only employees in the company). Ginipic has taken on no investment to date but is currently looking.

Ginipic is entirely free right now and, unlike other web services that pitch a paid premium version, the company’s business model is to cut “white label” deals that will give an existing photo sharing site Ginipic’s functionality but with the partner’s branding. Ginipic is also in talks with several advertising agencies to update their aging interfaces for image search.

CEO Weinstein told me that Ginipic is looking for deals in the $10-30,000 range rather than with big players who might pay in the hundreds of thousands of dollars. We asked him why. “We wanted to bring the product to market as fast as possible,” he said. “With a $100,000 deal, there are endless meetings. And for that price, a big company will always consider building it in-house. At $10,000, it’s not a problem.”

Weinstein said the idea for Ginipic actually came to him in a dream. “I was working on a big paper in a classical studies course” at Tel Aviv University, he said and needed pictures of ancient Greek and Roman statues.

Exhausted, he fell asleep one night and dreamed of dragging pictures directly from the photo sharing websites he visited into a Word document. Two weeks later, a mock up was done and the company was on the fast track to development.

Ginipic is not a web application but a download and it works on Windows only (bad news for all the creative types and increasing numbers of students who use Macs). Why the download? we asked Weinstein, aware that this is often a barrier to usability for many wary web denizens.

That was the only way to enable the drag and drop functionality. You can’t go direct from web to Word, nor can you search your own computer, Weinstein explained. Fortunately, the software itself is small – only 4 MB – making for a relatively painless installation.

I asked Weinstein about Ginipic’s product management process. There wasn’t much, he said. The team just jumped in and started coding. After about a month, “we did a proper product plan,” Weinstein said, with a feature roadmap and competitive analysis.

As with many self-funded startups, the “go for it” approach can be effective. Weinstein warned against “feature freeze” where you plan too much and never get the product out the door because there’s always one more feature to add.

Ginipic also used an interesting tool for soliciting customer feedback. UserVoice puts a small tab on the left side of every screen on the site. Clicking allows users to vote on which features they’d most like to see (a Mac version leads the list). The service is free for 100 votes per month. It ramps up rapidly from there to a max of $589/month for all the bells and whistles.

Weinstein said that after all the feedback was in, the team was pleased that there were no additional features they hadn’t originally thought of. UserVoice helped mainly in ranking what functionality should be rolled out first.

Ginipic is not without competitors. Meta-search services like Copernic have been around for years, and Microsoft Office’s Clip Art tool is already built into Word (“although no one uses it,” Weinstein mused). Other sites, such as CoolIris, are more about enjoying images online than searching them, Weinstein pointed out.

So far, in the 9 months since Ginipic launched, it’s signed up over 100,000 users “on $0 advertising,” Weinstein said. Approximately 25 percent of those are active users.

Among the services with which Ginipic works are DeviantArt, Flickr, Picasa, Google, Fotolia, Bing, PhotoBucket, SmugMug, Yahoo, Dreamstime and Crestock.

I use a Mac, so I personally won’t be able to give Ginipic a spin anytime soon but I’ll recommend it to my PC-using friends.

A version of this story originally appeared on Israel21c.

{ 0 comments }

140 Characters Comes to Tel Aviv

December 7, 2009

Jeff Pulver is a galavanting kind of guy. The one time founder of voice-over-IP telephony company Vonage, Pulver has in recent years traveled the globe hosting hi-tech networking “breakfasts” that attract hundreds of attendees On Sunday, Pulver was back in town with a combined breakfast and conference focused on “the state of now.” Dubbed the [...]

Read the full article →

$10 for Crying Out Loud

November 23, 2009

Outbrain is a company I like a lot. It has a seemingly simple product that provides some very useful functionality: content rating and recommendations for blogs. Follow the easy installation instructions and Outbrain will allow your readers to give your latest post a 1-5 score. Then, based on Outbrain’s massive database of reader tastes and [...]

Read the full article →