The e-commerce giant (a term typically reserved for Amazon in these woods) is one of the larger examples companies from the Bay Area that are setting up shop here and looking to soak up some of the Northwest’s rich engineering talent.

Other companies with satellite offices in the Seattle area include Google, Facebook, Zynga and Salesforce.

“I’m surprised I ended up at eBay, but the story is compelling,” said Ken Moss, who was hired in November to be eBay’s VP of managed marketplaces technology; Moss is GM of the Redmond office.

A long-time Microsoft employee whose claim to fame includes inventing the Pivot table in Excel, Moss more recently co-founded CrowdEye, a start-up focused on search technology and later on stock market prediction.

He said eBay’s dedication to the region is one of the biggest selling points for recruitment.

Most of the 75 employees that currently work there were hired over the past few months, and a small team has been here for seven years. Among the newbies I met were a number of Microsoft veterans who had been there for 12 to 15 years.

Moss says he will report directly to eBay’s CTO Mark Carges, which is “a signal to the whole company that diversified development is for real.”

“We are first-class citizens,” Moss said, referring to sometimes strained relationship between remote workers and a company’s headquarters.

Eric Brill, VP of eBay’s research labs, is also based in the Redmond office, and has been working part-time there since joining the company in 2009.

Moss said eBay will be looking to hire a range of technologists, from college graduates to senior leaders, including developers, testers, researchers, data miners and other positions.

While I was at the office on Tuesday, the mountains were peeking out from the clouds and were easy to spot from the floor-to-ceiling windows on the fourth floor. It was easy enough for everyone to have a window seat in the open-floor plan.

Although the employees just moved in on Monday, a sign outside the building already announced eBay’s presence. Inside, workers were busy putting the final touches on the space to make it feel like eBay. Primary colors of red, blue, yellow and green highlighted the office walls; with a bit of Seattle flair, conference rooms were named after Northwest tribes such as Puyallup and Quinault (and other names that might be difficult for San Jose-based employees to pronounce).

But missing were some of the perks that some recruits expect these day — no shuttles to and from work or fancy cafeterias, for instance. 

In fact, eBay has a long way to go to compare with what Google has done here. Since entering the market seven years ago, Google has hired more than 900 employees, spread across two locations, a spokesperson confirmed.

One office is in Seattle’s Fremont neighborhood; the other is on the Eastside.

The two offices are geographically divided by Lake Washington, which can be crossed by one of two floating bridges — or by boat, if you are crafty enough. The traffic bottlenecks make for a horrendously notorious commute, so having two locations that straddle both sides is a huge perk — like having offices in both San Francisco and San Jose.

Because of Google’s size here, many of its perks are similar to its Mountain View headquarters, including free meals prepared by chefs, frozen-yogurt bars and other, mostly food-based, luxuries.

In eBay’s case, the new digs are located deep on the Eastside, a couple of miles past Microsoft in Redmond, and roughly 15 miles from Jeff Bezos’s empire in downtown Seattle. Recently, Amazon relocated its headquarters to a brand-new campus in South Lake Union, a neighborhood being revitalized by former Microsoft executive Paul Allen.

Other outside companies that have also established sizable tech centers here include Facebook and Zynga. A couple others have gained offices through acquisitions. Electronic Arts, for instance, now has a large office here, after acquiring PopCap; EMC now has big expansion plans here, after purchasing Isilon.

And Geekwire, a Seattle-based technology blog, is good at keeping an ongoing tally, including recent moves into the area by Jawbone and SweetLabs, a San Diego-based start-up, based by Intel Capital and Google Ventures.

Two years ago, Facebook opened an office in the heart of downtown Seattle. It plans to move soon to a 27,000-square-foot space that will have room for about 135 employees. The 70 or so engineers in the office today have worked on projects such as video calling, the Facebook iPad app and other big issues, such as security.

Last April, social game maker Zynga opened an office in Seattle’s historic Pioneer Square neighborhood, hoping to absorb some of the game talent here, spawned from Xbox and Nintendo, and cloud-computing knowledge from Amazon. It has 50 employees today, but declined to say how many it planned to hire in the near future.

As with most of these companies, eBay believes it can find a diversity of talent here that can’t always be easy to hire in the Bay Area.

As a Seattle native, and having covered tech here for the past 12 years, including an eight-year stint at the Seattle Times, I might not be the most unbiased on the subject. But I’ve seen first-hand the breadth of talent here, from Microsoft, Amazon, Expedia, T-Mobile and many others, including a strong start-up pool.

Despite that, the local tech community often suffers from an inferiority complex when it compares itself with the Bay Area, which is much larger. Still, it seems that Silicon Valley companies are finding a number of excuses to travel north to drink from the area’s plentiful tech waters.

The algorithm contest, the largest of its kind so far, is part of a trend toward using such prizes to help find the best answers to complicated data-analysis questions.

Data-mining competitions have been around for a while–most notably the $1 million Netflix Inc. prize awarded in 2009 for a model to better predict what movies people would like. But the $3 million health prize, which is sponsored by California managed-care company Heritage Provider Network Inc., raises the stakes. And the start-up handling the competition, Kaggle Pty. Ltd., is aiming to build a business by conducting even more.

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The company has confirmed the appointments of Scott Prevost to the position of VP of product management on search and Dennis DeCoste to the position of director of research, where he will manage such technical topics as data mining and machine learning.

Prevost will start immediately. DeCoste is a couple of weeks into his new job.

The two hires will focus on delivering changes to the e-commerce site’s homegrown search engine, by better matching items in its inventory based on a consumer’s search terms or interests.

The company is now working on the next-generation of search, according to the company’s research labs, which lists both “search” and “machine learning” as two of its top priorities. Recently, eBay rolled out the ability to sort by “Best Match,” and will soon be launching other versions on eBay.com. “Through great strides we’ve made in applying machine learning to our search engine, search results will continue to become more relevant with each use,” says a labs post.

Previously, Prevost was the principal development manager at Bing, where he led a team of developers who were responsible for a bringing a variety of Bing features to market, including complex stuff like adding “captions and summaries to search results, reference answers and query processing using natural language techniques,” according to Prevost’s LinkedIn profile. Before that, he served as the general manger and director of product for Powerset, which Microsoft acquired in 2008.

Before joining eBay, DeCoste was a research scientist at Facebook, where he worked to improve a number of products, including ad matching, search ranking, link recommendation and spam detection. Prior to that, he was a principal scientist at Microsoft and a director of research at Yahoo Research, according to his profile on LinkedIn.

We also reported exclusively today that eBay’s PayPal subsidiary has hired Sarah Brody, formerly at Apple, to lead Global Design.

Thomas Korte

AngelPad is captained by the amiable and energetic former Google product evangelist Thomas Korte, who brought in many of the eight participating start-ups from his personal connections. They included somewhat typical tech start-up fare: A couple of Web curation tools (Curated.by and Snip.ly), a get-together planning app (RollCall) and a simpler interface for selling your stuff online (EggCartel). There was also a user-generated outdoors site (AllTrails) and an app that tracks the energy consumption of computers and other devices (Hug Energy).

Probably the most notable difference between AngelPad and other incubators is the level of high-profile experience most of its founders already have. At least half seemed to have worked on product and engineering at Google, and others come from established companies like Microsoft, Yelp, Playdom and RockYou.

(Also, is it just me, or does the name AngelPad scream for a reality show that would be sort of like “Real World” mashed with “Top Chef” about Silicon Valley start-ups?)

After the demos, I asked MoPub founder Jim Payne, who managed product for Google Maps Premier and AdMob metrics, what he and his co-founders thought the AngelPad differentiator is. He said, “As compared to Y Combinator?” I said, “First of all, as compared to doing this outside an incubator.”

Payne replied that he “wouldn’t and couldn’t” have started his company without an incubator, and that taking that route would be forcibly sitting yourself and your start-up “out in the weeds.”

MoPub is a mobile ad server, and will soon announce its first round of funding, said Payne. He and other AngelPad participants said they liked the small size of the program and the more free-form curriculum as compared to more established incubators.

Sean Plaice of Hug Energy at AngelPad's first Demo Day

Bill Tai of Charles River Ventures, who had been chatting with Payne when I walked up, bid him goodbye with the admonition to let Tai get in on the MoPub round. Tai told me that he thought MoPub and Adku were the most interesting of the AngelPad eight. Adku wants to help e-commerce sites optimize what products they are featuring using real-time data mining about what’s relevant to a visitor’s location and demographic.

Tai said he agreed that founders in the first AngelPad class do have more experience, particularly at large companies. But he added that’s not necessarily always an asset. “At Y Combinator there may be a higher probability of a breakout idea,” Tai said, “because less-experienced people don’t have context.”

Harvested from publicly available information held in Facebook’s open access directory, the torrent is essentially a list of users with a cavalier attitude towards privacy and a reminder of just how easily the personal information we post online can be gathered for whatever purpose–large-scale data mining, for instance–unless we explicitly take steps to prevent that from happening.

If you didn’t make some thoughtful opt-out decisions in your Facebook profile, chances are you unwittingly opted in to this torrent. And that’s troubling because there are 100 million such people.

“Facebook helps you connect and share with the people in your life,” the site promises. But not always just the ones you’ve invited. As the torrent’s creator notes, “Once I have the name and URL of a user, I can view, by default, their picture, friends, information about them, and some other details. If the user has set their privacy higher, at the very least I can view their name and picture. So, if any searchable user has friends that are non-searchable, those friends just opted into being searched, like it or not! Oops :).”

Oops, indeed.

Yahoo announced tonight that it is dramatically expanding its relationship with Twitter, integrating it broadly through its Web site, much in the same way it did recently with Facebook.

In December, Yahoo (YHOO) announced that it would integrate Facebook Connect with its many properties–from its powerful media sites to its Flickr photo service to its email.

While the Internet giant once had grand plans to socialize itself, it seems that task is being outsourced to more successful and innovative companies in the social networking space, part of a massive integration of them across the giant Internet portal, in an effort dubbed internally as “Project Rushmore.”

So, as it previously indicated, Yahoo is now moving beyond Facebook, weaving Twitter’s real-time feed throughout the service in a variety of ways.

Under terms of the deal, users can access the microblogging service’s data stream while on Yahoo, make status updates and share Yahoo content.

In addition, Yahoo said that search and media properties “like News, Finance, Entertainment, and Sports will include real-time public Twitter updates across a variety of topics.”

Yahoo once again declined to comment on whether and when the service would be striking similar deals with other social networking sites.

But sources told me that MySpace and LinkedIn are likely candidates for the next two spots on Yahoo’s social monument.

That would, of course, account for the four presidential stone faces on Mount Rushmore–George Washington, Teddy Roosevelt, Thomas Jefferson and Abraham Lincoln.

No money was exchanged in the five-year deal with Facebook; nor was there any other financial or advertising element. Yahoo declined to give such details about the Twitter deal, but some sort of payment seems likely.

Whatever the case, other big Internet companies are getting into the social act.

Separately, both software behemoth Microsoft (MSFT) and search giant Google (GOOG) recently struck a data-mining deal with Twitter, and Microsoft did so with Facebook.

Yahoo’s deals are broader, because such an overall move by the company is an important and necessary one.

It is also very late in coming, since Yahoo nearly completely missed the social networking train and needs to figure out how to be part of it in a way that is useful to users, as well as open.

Here is the full press release from Yahoo, with more bird puns than BoomTown can stand (Sheila, I give):

@yahoo + @twitter Sitting in a Tree…T.W.E.E.T.I.N.G.

Yahoo! gives ‘em something to tweet about, partnering with Twitter to integrate content and social experiences from across the Web

SUNNYVALE, Calif., Feb. 23, 2010–As part of its ongoing commitment to be the center of people’s online lives, Yahoo Inc. (NASDAQ:YHOO) today announced a global partnership with Twitter to integrate Twitter’s real-time social experiences with more than 600 million people in Yahoo!’s global network. The integration is part of Yahoo!’s commitment to provide personally relevant information to people, from sources across the Web.

A little bird told me: @yahoo is the place to tweet and be tweeted

This partnership includes three primary elements:

1) People will be able to access their personal Twitter feeds across Yahoo!’s many products and properties, including the homepage, Yahoo! Mail, Yahoo! Sports, and others, letting them check in more easily on what’s happening with the people and things they care about while on Yahoo!.

2) People will be able to update their Twitter status and share content from Yahoo! in their Twitter stream, so they can easily share their Yahoo! experiences with their friends and followers on Twitter.

3) Yahoo! Search and Yahoo! media properties like News, Finance, Entertainment, and Sports will include real-time public Twitter updates across a variety of topics. Yahoo! Search users will immediately see real-time Twitter results today; go to Yahoo! and try it out.

Tweet and shout: @yahoo pumps up the social volume

Today’s Twitter partnership, along with Yahoo!’s recently announced Facebook relationship, will transform Yahoo! into a highly customizable social experience that lets people bring together and unify their activity from their many social experiences across the Web. Because of these connections, anyone with a Yahoo! ID can update multiple social networks simultaneously and stay in touch with the people and information that matter most at every moment of the day.

“Let me try to capture the enormity of this integration in 140 characters or less: We’re turning the key to the online social universe–you will find the most personally relevant experiences through Yahoo!,” said Bryan Lamkin, senior vice president, consumer products group, Yahoo!. “We’re also simplifying people’s lives by bringing their social worlds–and the world–together for easy access.”

Add an exclamation point to your tweets

The Twitter integration also provides full access to the complete Twitter public data stream, which Yahoo! will use to improve the relevance and freshness of content across Yahoo! properties. This will drive deeper user engagement, and create new and compelling opportunities for developers, advertisers, and publishers.

“The information in one single tweet can travel light-years farther with this Yahoo! integration,” said Twitter cofounder Biz Stone. “Tweets in more places brings relevance where and when you need it most.”

The real-time Search integration is available immediately. Other parts of the integration are expected to launch later this year.

Is there gold in them thar tweets?

Maybe so, because–according to sources familiar with the situation–Twitter is in advanced talks with Microsoft and Google separately about striking data-mining deals, in which the companies would license a full feed from the microblogging service that could then be integrated into the results of their competing search engines.

Sources said a number of scenarios are being discussed to compensate Twitter for its huge and potentially valuable trove of real-time and content-sharing information, generated from the data stream of billions of tweets from its 54 million monthly users.

These include a number of structures, including a payment of several million dollars to Twitter, along with various revenue-sharing proposals that would give Twitter a piece of the revenue made from search results.

The deals, stressed sources close to the situation, are nonexclusive, especially because Twitter’s management is keen to remain independent and also nonpartisan in the growing search battle between Google (GOOG) and Microsoft (MSFT).

This means Yahoo (YHOO)–which recently struck a search-technology and online-advertising partnership with Microsoft–could also license Twitter’s feed to make its search results even more robust, although Boomtown could not determine if the company is in talks with the San Francisco start-up.

Sources said it is also possible that no agreement would be reached with either company.

And execs at Twitter, Microsoft and Google had no comment when asked about talks.

But doing these kinds of data deals with big search players does make a lot of sense, since it would be hard for Twitter to turbocharge its own search engine without running into the big cash-laden guns at both Google and Microsoft, which recently launched its new Bing search service.

Twitter is, instead, seeking to create a large open platform, which many could plug into, from search engines to marketers to publishers to developers.

Twitter has also been considering offering premium services to these groups and is contemplating some form of advertising offering.

But, most of all, Silicon Valley’s hot start-up is focusing now on spurring growth and engagement, along with fine-tuning its product offering.

Being deeply integrated into big search services would give Twitter a huge footprint.

Microsoft had already done a small experiment this past summer integrating Twitter data into search results, starting with tweets of bloggers like me.

How much indexing of its data Twitter will allow is unclear, but the company has certainly bought itself time to think carefully about all its options, given that it now has a lot of money in the bank.

Late last month, Twitter raised another $100 million in new funding, after already having raised $55 million.

This has given it a $1 billion valuation, despite negligible revenue.

The valuation also effectively stated that the innovative company was pretty much putting itself out of play to be acquired and is very interested in forging its own destiny.

Both Google and Microsoft execs have contemplated the idea of buying Twitter in the past, although no serious talks ever moved forward.

If they both strike data deals with Twitter, they will get the next best thing–an ability to offer all the information disseminated on Twitter in search results.

Please see this disclosure related to me and Google.

In a 352-page report published last week, the National Research Council said data mining and behavior detection aren’t nearly as useful as their proponents claim. In fact, they’re of dubious scientific merit and have “enormous potential” for infringing on law-abiding Americans’ privacy. “Automated identification of terrorists through data mining (or any other  known methodology) is neither feasible as an objective nor desirable as a goal of technology development efforts,” the Council found. “Even in well-managed programs, such tools are likely to return significant rates of false positives, especially if the tools are highly automated.”

While not an explicit condemnation of the techniques at issue here, the report does recommend that the government evaluate the effectiveness and lawfulness of these data mining and behavior-detection programs it’s so keen on before implementing them, and periodically thereafter. Said the Council, “History demonstrates that measures taken in the name of improving national security, especially in response to new threats or crises, have often proven to be both ineffective and offensive to the nation’s values and traditions of liberty and justice.”

This is especially true if you are the kind of person who saves most of his or her email. That mound of messages can be a treasure trove of contact information and a history of your interactions with hundreds, or thousands, of personal and business acquaintances. It can tell you the phone numbers and job titles of people, and even who you and your correspondents most often copy on email. It’s a sort of social network all its own.