More companies will build private clouds in 2013 while paying for redundancies from commercial clouds supporting the same system, in effect creating a hybrid cloud.
This has not been a good year for Amazon.com's (AMZN) cloud computing service, at least at its Virginia data center.
That is the facility that on Dec. 24 suffered its fourth outage since April of last year; the latest event spoiled Christmas for Netflix (NFLX) and some of its 30 million subscribers.
This is not the way the cloud is supposed to work. The cloud is not a data center. Even a data center using cloud technology gets you just half-way to the cloud. A cloud is, in fact, a network of data centers, providing you with the redundancy and resilience of the Internet itself.
The music streaming company channels at least half its revenue to artists such as Adele, who gets $1 million a year in royalties from the company. Rivals pay a lot less.
Pandora Media (P), the rapidly expanding Internet radio service, has a problem: The faster it grows, the bigger the financial hit it takes on royalty payments.
In the first 10 months of 2012, Pandora paid $182 million in music royalties, or 60% of revenue. With the music streaming company forecasting a fourth-quarter loss, and competition intensifying from Sirius XM Radio (SIRI), Spotify and Apple (AAPL), Pandora's stock was off 10% for the year while the tech-laden Nasdaq Composite Index ($COMPX) had advanced nearly 15% as of Dec. 26.
Joe Kennedy, Pandora's chief executive, says his company is getting a raw deal on the fees it pays for song-playing rights because of what he calls an arbitrary and piecemeal music copyright and royalty-setting system that treats various digital radio formats differently.
Backers say virtual doctor visits can save money and ease the shortage of primary-care physicians. But some of those doctors fear the skimming of profitable, easy patients.
Virtual doctor visit services -- which connect patients from their homes with physicians whom they meet via online video or phone -- are moving into the mainstream, as insurers and employers are increasingly willing to pay for them.
In the latest sign, WellPoint (WLP), the nation's second-biggest health insurer, plans to offer a new service in all of its employer and individual plans that will allow people to consult with physicians on-demand, using laptop webcams or video-enabled tablets and smartphones.
The insurer says the video consults will appeal to clients looking for "convenience and accessibility of care," said Ken Goulet, executive vice president.
But such services -- which backers say can save money when they avoid costly emergency room trips -- are generating tension with some state regulators and doctor groups. They argue that the remote visits can make sense when a patient is communicating with his or her regular doctor, but care may suffer when patients are connecting with a physician who may be in another city or state.
Western regulators may be treading lightly with their antitrust probes to prop up the search giant as a stalwart in the global fight over Internet freedoms.
That's because the allegations of Google's antitrust violations were serious.
First, its use of patents obtained when it acquired Motorola Mobility was abusive. The Motorola patents dealt with essential mobile-phone functions, licensed under terms of of the Fair, Reasonable and Non Discriminatory (FRAND) standards.
Hollywood's own online video service has been no match for its rivals. Now its owners are under pressure to pony up more money to expand the service.
As Amazon.com (AMZN) and Netflix (NFLX) battle it out for dominance in online video, owners of the much smaller Hulu, Hollywood's own online video service, are under pressure to decide which direction to go.
Jason Kilar, the chief executive of Hulu, has asked the site's owners -- Walt Disney (DIS), Comcast (CMCSA) and News Corp. (NWSA) -- for about $200 million to fund more program purchases and an overseas expansion, according to people familiar with the situation. That is roughly twice the amount they contributed this year, one person said.
The request to sink more money into the unprofitable, 5-year-old venture has put the spotlight on differences between Disney and News Corp. -- the two voting partners -- over Hulu's business model, which involves both a free service and a fledgling subscription offering. (For regulatory reasons, Comcast, the majority owner of NBCUniversal, can't vote its stake.)
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[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
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