According to numerous sources close to the situation, the Tumblr brand will continue on in the wake of its $1.1 billion acquisition by Yahoo.

That includes definitive promises by Yahoo CEO Marissa Mayer to once-sale-shy Tumblr CEO David Karp to allow him to shepherd the fast-growing blogging product, with no forced integration with Yahoo’s many other content properties.

That said, sources added, there will be more back-end changes to marry infrastructure, such as undergirding Tumblr’s nascent advertising business and giving it more distribution opportunities.

“At the beginning, at least, it’ll be hands-off,” said one person close to the situation. “It has to be.”

While that is probably no surprise, it’s still good news for Tumblr employees as well as its very opinionated user base, which is not likely to greet a takeover by a corporate giant of the social, iconoclastic user-generated content service.

That said, Yahoo execs discussed and are aware of issues around porn published on the site, although they believe it to be fixable over time.

As Peter Kafka noted:

To spell that out: Tumblr’s advertisers don’t have to worry about their stuff showing up on blogs like We Want Porn. At worst, it’s possible that they’ll end up advertising to a user whose dashboard includes posts from We Want Porn. But in general, they ought to be pretty well insulated from that stuff.

By the same token, if Yahoo wanted to, it could end up scrubbing Tumblr of porn, and losing a lot of users and views — but it probably wouldn’t lose much in the way of monetizable users. Unless it turns out that the majority of Tumblr’s core users have signed on exclusively to use porn.

Or, as a Tumblr investor also told Kafka: “Non-story. Tumblr is the Internet. It’s a dashboard-follower model, opt-in.”

Moving on from porn, sources close to the situation — okay, pretty much everyone is chit-chatting away now — said that Mayer spent a lot of time with Karp (who was in Silicon Valley last week, in fact, visiting her) about the transition, and about how the new ownership would impact him and the service.

One source called them “kindred spirits” on the issue, and that Mayer has been given great purview by the Yahoo board to foster Tumblr to prevent it from turning out like Flickr, Delicious and many other big acquisitions dating back to GeoCities. (I was there covering that deal way back when, and what a mess that was!)

Mayer is well-liked by product and engineering entrepreneurs, and has often focused on them at Yahoo, over the perhaps more important demands of business and advertising execs.

That would appeal to Karp, who once famously said that online advertising made him physically sick. Still, he has recently begun to embrace ad sales at Tumblr.

Within the last year or so, Tumblr has started selling modestly sized “native ads” promoting brands’ Tumblr pages on users’ dashboards, which has shown promise. Tumblr has said it had $13 million in revenue last year, and sources said it could get to up to $100 million this year.

“We’re going to be very careful here,” said a source with knowledge of the acquisition.

A source at Tumblr agreed: “This will be a very delicate dance, since so much could go wrong if done without care.”

Still, some at Yahoo are worried that the company might be chasing the youthful demographic at Tumblr too assiduously. “This is a very fickle audience,” said another high-ranking Yahoo exec. “Chasing a young one is a very tricky thing.”

Yes, indeed, but Mayer thinks she is the one to be able to pull it off and make Yahoo relevant with an even wider consumer base.

AllThingsD broke news of the deal in the offing last week, which has since been approved by Yahoo’s board.

The Yahoo board has approved a massive $1.1 billion all-cash deal to buy Tumblr.

It’s not clear when the official vote was taken, but sources close to the board said the acquisition was a foregone conclusion and was unanimously approved by the directors of Silicon Valley Internet giant.

The deal will likely be announced Monday morning, said numerous sources.

AllThingsD.com initially broke the story of the acquisition efforts and later followed up with details of the exact price and the board meeting to approve the transaction.

There were no other competing bids, despite reports, to snap up the New York-based social blogging service. That said, Tumblr had held some very preliminary discussions about various deals with Facebook, Google, Microsoft and also Twitter earlier this year.

As part of the Yahoo deal, Tumblr CEO David Karp — who will get a windfall of cash from the acquisition — will stay at Yahoo for four years at least and retain a lot of control over the service, much in the same way Instagram CEO Kevin Systrom does at Facebook. But, as there, Yahoo will undergird Tumblr’s nascent advertising business with its large and established infrastructure, said sources.

Yahoo had been mulling some kind of deal with Tumblr, from a strategic investment to an outright acquisition, for about six weeks. Sources said that Yahoo CEO Marissa Mayer had decided that buying the company was going to be “the stake in the ground of what her strategy is going forward for Yahoo.”

And that is to attract younger audiences with just the kind of user-generated content Tumblr has pioneered to impressive growth.

According to numerous sources, Mayer determined quickly in her research that the site was just the kind of property that Yahoo needed to make it both “cool” and relevant to new consumers.

Yahoo is looking to bolster its strong set of existing media offerings to appeal to a different demographic and also get into the social space via consumer-based software solutions that are both elegant and easy to use.

Tumblr’s mobile usage has also been strong, which also interested Mayer. While Tumblr started as a desktop-based service, its mobile offering has ramped up quickly in the last few years. ComScore says that a quarter of the service’s U.S. visitors now come from mobile devices.

At this price, it will be Mayer’s biggest acquisition so far. Since she became CEO last summer, Mayer has made only a series of small acquisitions of mobile startups at a low cost.

According to sources, the Tumblr brand will continue.

The deal, if consummated, will be a big win for investors. In a series of fundings since 2007, Tumblr has raised $125 million so far and is now at a reported valuation of $800 million. Investors include Spark Capital, Union Square Ventures, Sequoia Capital, Greylock Partners, Insight Venture Partners and the Chernin Group.

While Tumblr’s Karp has resisted various offers for the company over the years, Mayer spent a lot of time with him reassuring him that Yahoo could turbocharge his business. He has also been searching for a COO to help him build out the infrastructure of its business, especially its advertising one.

And as Peter Kafka and I previously wrote, Tumblr could certainly bring Yahoo a big, young audience. Its worldwide traffic was at 117 million visitors in April, according to comScore. On its home page, Tumblr claims it has 107.8 million blogs and 50.6 billion posts. U.S. desktop traffic to Tumblr was 37 million in April, close to LinkedIn and Twitter, although Twitter obviously has much more via mobile.

But figuring out how to make money from that is a task that the company has only recently started to tackle.

Like other recent Web startups that have seen rocketship growth — see: Twitter, Facebook — Tumblr resisted advertising for its formative years, and its user base seems particularly unwilling to accept standard banner ads. In addition, many industry observers think that Tumblr’s pages are packed with porn or other questionable content that would scare off advertisers.

But within the last year or so, Tumblr has started selling modestly sized “native ads” promoting brands’ Tumblr pages, on users’ “dashboards,” which has shown promise. Tumblr has said it had $13 million in revenue last year and sources said it could get up to $100 million this year.

Tumblr has been represented by Qatalyst Partners’ Frank Quattrone, while Yahoo’s Mayer, as well as M&A head Jackie Reses and CFO Ken Goldman, have been on the company’s side.

Interestingly, what got me first focused on Tumblr last week were Goldman’s comments at JP Morgan’s Global Technology conference last week, where he underscored the need for the aging Yahoo to attract more users from the coveted 18-to-24-years-old age bracket. Along with more marketing, he explicitly said Yahoo needed to be “cool again.”

“One of our challenges is we have had an aging demographic,” said Goldman at the Boston event. “Part of it is going to be just visibility again in making ourselves cool, which we got away from for a couple of years.”

Tumblr, apparently, fits the very expensive bill.

Airware, a startup that is creating a software platform for commercial drones, said it had raised $10.7 million in a Series A funding round led by Andreessen Horowitz. Google Ventures also participated. As part of the deal, Andreessen Horowitz partner Chris Dixon will join Airware’s board.

The Newport Beach, Calif., company said it would use the money to expand staff for its universal development platform as the market for non-military drones expands.

Airware founder and CEO Jonathan Downey said that uses of drones will be increasing for a wide range of purposes, from checking infrastructure to monitoring mining operations to preventing poaching.

In an interview, Downey said that he expects to compete with a range of ex-military efforts, but that the most successful companies will be those that provide a platform to allow for the widest range of innovations.

“This is going to be about a lot more than we know or can guess,” he said. “The industry is at its very beginnings.”

Dixon agrees. “Hardware is the new software,” he said about the investment in Airware, which he said he discovered after attending conferences about the fast-moving drones business, noting that the overall field of robotics has “overpromised and underdelivered.”

Airware came out of both the Lemnos Labs and Y Combinator incubators and had raised seed financing from First Round Capital, Firelake Capital, RRE Ventures, Shasta Ventures, Promus Ventures and several Y Combinator partners.

Right now, Google is showing that none of its products are available in Syria, since a little before 3 pm ET, or about two hours ago as of this writing. Here’s a screen grab of Google’s graphic showing the dropoff.

Akamai has been tracking the outage as well, according to this Tweet from @NMSyria. I’ve reached out to Akamai for a little more color (to the extent that any is available).

Internet seems to have been shut down across all of #Syria. http://t.co/m6hVLroVRF

May 7, 2013 1:28 pm via Tweetbot for iOSReplyRetweetFavorite

@NMSyria

NMSyria

The last time this happened was in November of last year, and that outage, like so much else going on in that country torn apart by civil war, has never been fully explained. The outage lasted about two days.

Last time, the folks at Renesys, a research firm that tracks the health of the Internet’s underlying plumbing, noticed that all five networks bringing Internet traffic into Syria went down more or less at once.

That’s fairly easy to carry out logistically because pretty much all Internet traffic in and out of that country is funneled through one point: The state-run, state-controlled Syrian Telecommunications Establishment, and all Internet providers operate out of a single building. The companies that provide Internet connections going into Syria are PCCW and Turk Telekom as the primary providers, with Telecom Italia and Tata providing additional capacity.

There are four physical cables that bring bandwidth into Syria and three of them land in the coastal city of Tartus. A fourth comes in from Turkey to the north.

Chances are, routers in the telecommunications building were reconfigured to stop announcing themselves in the global routing tables, essentially making them invisible to the rest of the Internet.

The question — as with the last time this happened — is why now?

Update: Umbrella Security Labs CTO has a blog post on what that company says is going on:

Currently both TLD (top-level domain) servers for Syria, ns1.tld.sy and ns2.tld.sy are unreachable. The remaining two nameservers sy.cctld.authdns.ripe.net. and pch.anycast.tld.sy. are reachable since they are not within Syria.

It goes on in more technical detail:

Routing on the Internet relies on the Border Gateway Protocol (BGP). BGP distributes routing information and makes sure all routers on the Internet know how to get to a certain IP address. When an IP range becomes unreachable it will be withdrawn from BGP, this informs routers that the IP range is no longer reachable.

Like I said, the routers in the telecommunications building have been reset and have stopped announcing themselves to the rest of the world, making them essentially nonexistent until they come back on.

Second update: Apparently there are a few people who still have access. Some people have the means to install satellite-based Internet connections that are independent of government-controlled connections, according to a Tweet by Basma Atassi, a journalist with Al-Jazeera.

Only activists who can afford to install SAT internet are online. Family, friends and most of the hardworking activists are offline #Syria

May 7, 2013 2:26 pm via webReplyRetweetFavorite

@Basma_

Basma Atassi | بسمة

Also Renesys has now confirmed the outage.

Renesys confirms loss of Syrian Internet connectivity 18:43 UTC. BGP routes down, inbound traces failing. @geeknik

May 7, 2013 12:30 pm via webReplyRetweetFavorite

@renesys

Renesys Corporation

Here’s a graphic of its monitoring, broken down by inbound service provider.

Third update: Google has just reactivated its Speak To Tweet service for people who still have working phone lines in Syria.

.@speak2tweet available to help people communicate if they have working phone connection. #SyriaBlackout http://t.co/oRg3jCVDQX

May 7, 2013 2:51 pm via webReplyRetweetFavorite

@google

A Googler

This is a service that Google created during the Internet outages in Egypt in 2011 that allows people with working phone lines to leave messages that can be seen and heard by people outside the country via a Twitter account that records the audio.

To use it, you leave a voicemail message on one of four international phone numbers (details here). If word reaches anyone in the affected area, you can listen for messages here.

Fourth update: Syria Digital Reports, a project of Canada’s SecDev Group and which has been following ongoing updates on Syrian infrastructure in real time (power and water and phone service in addition to Internet) and which also provides digital tools to help people in that country maintain digital safety and security, is now reporting that phone service — both wireless and land lines — has been cut off as well.

Confirmed, landlines and cellphones are down in #Syria – #Syriablackout @Syriansmurf

May 7, 2013 3:12 pm via FacebookReplyRetweetFavorite

@DSRSyria

SyriaDigitalReports

Fifth update: Here’s how the outage looked as it happened live on video. Courtesy a software engineer at Storify named Frederic Jacobs.

Accel Partners has added longtime tech exec Rob Solomon — who was most recently president and CEO of Groupon — as a venture partner. The high-profile Silicon Valley venture firm said Solomon will focus on early stage and growth equity opportunities and focus on “operational issues like product management, scaling infrastructure, business operations, and mergers and acquisitions.”

Said Accel Partner Andrew Braccia in a statement: “[Solomon] has been at the helm of some of the most high profile consumer internet brands and has demonstrated a unique ability to inspire and lead teams through both rapid growth and challenging times.”

Indeed, Solomon has had a long Silicon Valley career, including as an top exec at Yahoo, running its e-commerce efforts. He was also CEO of SideStep, a real-time vertical search engine in the travel sector that was later sold to Kayak and is also on several boards, including HomeAway.

But Solomon is best known for his stint as the No. 2 exec at the Chicago-based Groupon, the once high-flying daily deals site. But, for a variety of reasons, including wanting to be located in California, he left the company two years ago.

Solomon emailed me last night to explain why he decided to take a job as a VC at Accel and here’s what he wrote:

“I love the tactics and strategies associated with scaling up Internet companies. Nothing is more exciting then digging deep into a space and then figuring out which companies stand the best chance to create new markets and become iconic category defining companies. I was lucky enough to work with some of the world’s best founders, technologists and executives at Yahoo and that experience taught me what is possible in a very short span of time. I’ve joined Accel because they have an incredible global platform to find, nurture, fund and grow the next generation of global iconic Internet companies and nothing could be more exciting to me for my next career adventure.”

As I noted in a piece last week about the departure of Yahoo Mail head Vivek Sharma for a new job at Disney, the Silicon Valley Internet giant is likely to see a lot more execs unhappy with the new regime of CEO Marissa Mayer take off after annual bonuses start being handed out in March.

Today, it’s James Carroll, SVP of the consumer and global platform group at Yahoo.

In the job, the former Microsoft exec has been in charge of the company’s global R&D centers in China, India and the Middle East and been “responsible for Yahoo’s content, social and membership platforms and the international delivery of all Yahoo! products and services worldwide.” That has included all its efforts at internationalization, international infrastructure development and localization.

Sources said he is leaving to head international at Go Daddy, one of the world’s biggest Web hosting and domain registration companies. Go Daddy is led by former Yahoo product head Blake Irving, who had hired Carroll at Yahoo in 2010.

And, as NBC announced earlier today, editor in chief of Yahoo News, Hillary Frey, has taken a job there as editorial director of news at NBCNews.com, which is undergoing a major refurbishment. She had been at Yahoo since late 2011.

Many more to come, I am told, as execs either decide to depart or Mayer continues to clean house. It’s still unclear who will be taking over these key jobs at Yahoo.

One thing for sure: I don’t expect a comment from Yahoo PR on the changes.

The Democratic People’s Republic of Korea — or DPRK, as North Korea is generally known — has officially accused the U.S. of carrying out the attack, which is said to have disrupted that country’s connectivity to the wider Internet, such as it is.

The DPRK has only one Internet provider supplying it with outside links, known as Star JV, Renesys says. Star in turn gets service from China Unicom and Intelsat. Star JV is a joint venture between North Korea’s Post and Telecommunications Corporation and a Thailand-based firm called Loxley Pacific.

Renesys says it tracked disruptions that knocked North Korea’s four networks — yes, there are only four — off the global routing table early on March 13. The disruptions recurred into March 14.

It’s as yet unknown what the cause is, and frankly it’s kind of hard to figure out what the point of such an attack might be other than simply to get attention. It’s not as if much of North Korean society is all that dependent upon the Internet to get anything done, and those few who do have access are either elite members of the Communist Party or the inner circle of the regime of leader Kim Jong-Un, or foreigners. In fact, Foreign Policy, citing some educated guesses of foreigners, estimates the number of North Koreans with access to the Internet as ranging from perhaps a few dozen well-connected families to no more than 1,000 people, tops. For others, there’s a domestic Intranet that looks nothing like the Internet we’re accustomed to.

So if indeed there has been an attack, and if it was sponsored by someone acting on behalf of another government, the main question would have to be, “Why bother?”

With luck, more will be revealed about all this in the coming days.

In the midst of globally difficult economic times, the Japanese saw an opening. Taiichi Ohno, working for Toyota after World War II, saw inefficiencies in the American assembly line system, especially in the inventory and quality control systems. He pioneered a new system of production for the company, called “just-in-time.” The objectives were to introduce consistency in the production process and eliminate waste of all kinds, including overproduction, excess inventory, time (waiting for parts) and ineffective or defective products being produced. American supermarkets, ironically, held the answer for Ohno; they only restocked shelves with enough product to replace inventory that was sold to customers. In the just-in-time system, this translated into keeping about 24 hours’ worth of inventory in the factory, with parts being ordered and shipped on an as-needed basis.

The success of Toyota’s transformation is now well-known; it became a global company that would eventually surpass sales of GM, the world’s largest auto maker, in 2008. The just-in-time system pioneered by Toyota would be widely copied, with U.S. automakers implementing the new system in the 1980s, to varying levels of success.

Lessons for the Data Center

You may be asking what all of this fascinating automotive history has to do with data centers today, in 2013. The fact is, the data center industry is undergoing a transformation of its own. While the U.S., thankfully, hasn’t seen oil shocks on the scale of those experienced in the 1970s, it’s clear that the era of cheap energy is over, especially with increasing demand for energy supply in high-growth markets like China and India.

Rising energy prices and volatility mean that data centers can’t afford to operate the way that U.S. auto manufacturers did in the 1950s and 1960s. Traditionally built to accommodate future growth, wastefully inefficient data centers were built in previous decades with overcapacity in mind, in an era when energy was much cheaper and more readily available. Today, data center owners and managers face the challenges of legacy builds, with these facilities suffering from the same kind of waste that plagued the auto industry before lean manufacturing changed it. As James Glanz outlined last year in the New York Times story “Power, Pollution and the Internet,” the worst offenders not only use huge amounts of energy to power parts of data centers that aren’t used, but also contribute to pollution.

Just as gains in the speed of transportation made just-in-time a reality for the automotive industry in the 1970s, the data center industry’s transformation may be driven today by recent technology advances and supplemented with an overall recognition in the industry that the old way of powering and cooling data centers will no longer be ignored by the public nor economically advantageous for companies. These recent advances include:

• The rise of readily available modular data center components, including Uninterruptible Power Supplies (UPSs), cooling and power distribution systems. These components are the infrastructure that can efficiently and reliably power and cool expensive computing equipment. Prior to the availability of modular components, data centers were almost always custom-built, and because of this, they were almost always overprovisioned to accommodate future growth or spikes in demand.
• The rise of standardized components in the data center, especially related to data center infrastructure. Part of the success of just-in-time was a recognition that relying on trusted suppliers to manufacture parts, so that the automaker could focus on its core competency of manufacturing the automobile, would actually bring about more reliable and better-performing products. Data center infrastructure is much the same — custom-built systems come with custom problems that take man-hours and money to fix. Standardized components are time-tested to be effective, reliable and predictable, with flaws having been driven out in the manufacturing and testing/validation process.
• The availability of monitoring software that provides visibility into energy usage in the data center. The just-in-time system relies upon signals that would tell managers what the rate of demand for parts was, so that production could be scheduled accordingly. Similarly, advances in data center software and analytics today provide that kind of intelligence for data center managers by monitoring equipment usage and helping to plan for future needs through benchmarking, indicating in advance when capacity may need to be increased.

Standardization is the key to consistency in the data center, while modularity is the key to flexibility. Both characteristics are needed to respond effectively to changes in the IT environment that result from changing business needs. Modular components are pre-engineered and “plug and play,” so that they can evolve with a changing data center’s design over time. Because they are scalable, changeable, portable and swappable, they confer a speed of installation that is akin to the flexibility that most car owners get today when they need to replace or repair auto parts.

Benefits of a Just-in-Time Approach

When Toyota pioneered the just-in-time system, it also built an entire system that the company would adhere to outside of production that would contribute to its success. Part of the system was to cultivate a culture of continuous improvement where its people’s talents would be stimulated and performance would be maximized. To be sure, recent events such as the tsunami in 2011 affected global supply chains and devastated production and supply in Japan, which exposed vulnerabilities in the system. However, the success of the overall system over time, as evidenced by its proliferation into all types of manufacturing as well as other markets including business intelligence in recent years, serves as a testament to the substantial benefits that can be conferred through applying the overall principles of the system.

In the data center, this requires a new approach to thinking about designing and building new systems, one which promises substantial gains in operational efficiencies. Some of these include:

• Outsourcing of non-core competencies. In the auto industry, this included logistical functions such as storage and distribution to third party providers. Modular data centers, effectively, have outsourced the headaches of production, configuration and installation to the manufacturer of the components. They are plug-and-play, making initial deployment and subsequent changes achievable without a great deal of custom work, and they are built in factories under strict quality control and engineered to deliver peak performance.
• Reduced response time to business demands, again due to availability of standardized and modular components. Growth can be planned for in the initial design of the data center, without being deployed and operationalized, which means data centers are “right sized” — operating only with the computing power and infrastructure to fit needs today rather than anticipated needs in the future.
• Improved customer satisfaction and better return on equity, due to the reliability of components as well as energy savings and reduced manual labor. Custom-built data centers can take years to achieve designed performance specifications with respect to measurements such as Power Usage Effectiveness (PUE, a measure of data center efficiency). Prefabricated modules come with design specifications that are verified in the factory before they are shipped.
• Less downtime, as failures in modular components can be identified quickly and easily and replaced in little time, compared to disparate or custom engineered components.

Data centers today, in fact, are already taking advantage of modular data center builds. The Beneficial Financial Group, one of the oldest insurance companies in Utah, needed to add more power and rack space in its data center, with better monitoring and management capabilities and minimal downtime. If it bought a new system or a larger version of the existing system, it would have had to re-engineer the data center completely; instead, Beneficial chose a modular system that integrated power, cooling management and servers with a universal rack design. The installation was completed over a weekend, with no interruption to business, and forecasts estimate the company will gain an annual ROI of 74 percent with a payback period of ten months, due to maintenance and service savings and increased user productivity. In addition, because it can now add servers as the company grows, Beneficial has expanded its data center capability by 300 percent with room for future growth.

Toyota, which spearheaded the just-in-time model, was able to achieve unparalleled growth and eventual industry dominance in the years following its shift. It’s an example of how turning traditional thinking on its head was able to change the entire industry and spawn whole new industries and innovations. Data centers today face a fork in the road, but there is a unique opportunity to take advantage of gains in technology to respond and adapt, making sure they are built not only for the needs of today but for the unforeseen challenges that may come in the next few decades.

Kevin Brown is Vice President, Global Data Center Offer for Schneider Electric and is responsible for leading Schneider Electric’s portfolio strategy and leading innovation to respond to emerging data center industry trends. Kevin is an experienced industry professional in both the data center and HVAC industry with over 20 years of experience in various senior management roles including software and hardware development, sales and product management, and holds a BS in mechanical engineering from Cornell University.

The three new vice presidents being announced today are tasked with helping the payments company change the way consumers pay for things online, on their phones and at the register.

“In years past, we’ve grown too conservatively,” said PayPal’s CTO James Barrese. “We are reinventing ourselves with a cadre of new talent. I’m completely reinventing the organization, so that the top technologists can have a huge impact on where we are going.”

The three hires are:

Arnold Goldberg, VP of Customer Experience Engineering. Goldberg most recently came from Box, where, as VP of Engineering, he helped establish the cloud-based sharing platform. At PayPal, he will work on coming up with new technology for PayPal’s small businesses and merchants.

Koby Avital, VP of Architecture and Infrastructure. Avital comes from Microsoft, where he led the company’s service-oriented architecture strategy and platform development. At PayPal, he will lead strategic architecture, infrastructure and innovative research.

Ryan Granard, VP of Platform Engineering. Ryan comes most recently from DreamWorks Animation, where he built an internal platform that was able to scale globally. He was also an early employee of Webvan, the online grocery service. At PayPal, he will be in charge of building internal cloud services.

Other recent hires include Douglas Crockford, who was appointed senior JavaScript Architect, and Bill Scott, senior director of User Interface Engineering.

In October, PayPal eliminated the jobs as part of a restructuring that reduced the number of product groups it had from nine to one. The eBay-owned company said it wasn’t about cost reductions, but about streamlining product development.

The most notable change was that mobile was no longer a standalone group, but was moved directly into all of the product lines. Similarly, its parent company conducted the same restructuring just last month.

“We set up ourselves to be focused on new strategic areas, so I’ve been going out and aggressively looking for the type of talent we need,” Barrese said.

PayPal will need all the talent it can get to achieve its lofty ambitions.

Not only does it want to be a consumer’s preferred form of payment online and on mobile phones, it is also entering the offline world by enabling payments for small merchants or large retailers like Home Depot. Its big push into retail will happen this year, but a lot of finesse will have to occur behind the scenes in order to get it all to work together seamlessly.

At the same time, it will be competing against other crafty companies in the space, including Square and Groupon, to name just two of the entrants interested in payments over the past few years.

PayPal’s emphasis on building up a strong technology team kicked off in earnest last March, after PayPal named David Marcus as president. Marcus, who had joined the company previously through the acquisition of Zong, filled the vacancy left when Scott Thompson suddenly left to become CEO of Yahoo.

Since Marcus’s appointment, he has been vocal about the changes he wants to make at the company, saying, “There’s a massive culture change happening at PayPal right now.”

The hires today are just more evidence that he’s willing to back those words up.

Fleur Pellerin, France’s technology minister, said the government is looking at how existing telecommunication regulations could be harnessed to ensure Web giants help pay to roll out and maintain high-speed networks.

Read the rest of this post on the original site »

Napiltonia comes most recently off his smart-grid start-up eMeter, which was sold to Siemens in 2011. Previous to this, he did a four-year stint at Salesforce as a senior executive, where he drove up revenue for the company’s Channels and Alliances group.

His focus as he starts the new gig? Developers, natch, Twilio’s bread and butter. Over the past few years, the company has scaled its stable of developers served from a few thousand to around 175,000, handling on average a million API calls per day.

Napiltonia’s hiring rounds out the company’s C-suite of execs, after Twilio tapped Say Media executive Lee Kirkpatrick to be CFO in May of last year, along with former Jive Software exec Lynda Smith as CMO. Co-founders Jeff Lawson and Evan Cooke, of course, remain CEO and CTO, respectively.

“Netflix is down for some customers this Christmas Eve, thanks to an outage of some of Amazon’s cloud infrastructure,” the company said on its Twitter account.

A Netflix spokesman added that the outage stretched “across the Americas.”

Read the rest of this post on the original site

When you remember the basic fundamental truths about the Internet — the part about how it was designed to be used in the event of a nuclear war and thus has redundancy and survivability in mind — one can’t help but wonder how such a thing could happen.

It comes down to control, and creating a single, easily accessible choke point run by loyal people. Every single Internet connection in Syria is funneled through a single government agency that authorizes them all — the Syrian Telecommunications Establishment — and indeed all of them are run out of the same building.

Today, the folks at Renesys, who were the first to notice Syria’s government-ordered outage (for it could be nothing other than that), have tackled the question of how readily what has happened in Syria — and in Libya and Egypt before it — could happen in other countries.

Here’s its map. Countries where there’s a significant risk — speaking logistically, not necessarily politically — of a government-ordered shutdown are shown in darker green. The lighter the green, the lower the risk.

Renesys, in its corporate blog, breaks it down like this:

If a country has more than 40 companies providing Internet infrastructure at its international border, it is categorized as “resistant,” meaning that it would be difficult if not impossible under whatever circumstances for anyone to order a coordinated takedown of the Internet. There are simply too many moving parts to make it a realistic worry. The good news is that much of the world is in this category, including the U.S., Canada, most of Europe and Russia.

There are two other categories where the risk incrementally increases — infamously authoritarian China is notably in the “low risk” category — and the last one is “severe risk.” This one includes 61 different countries, and Syria is one, where there are only one or two companies providing Internet infrastructure at the international border. No surprise this group includes places where there has been a lot of political turmoil in the last year: Tunisia, Algeria, Turkmenistan, Libya and Yemen, but also the usual suspects among the world’s harsher dictatorships: Cuba and North Korea. Another notable member of this club is Myanmar (a.k.a. Burma), which has recently been opening up, (President Obama visited there last week) but which actually did pull the Internet plug in 2007.

Meanwhile, the Internet remains off in Syria. Google has restarted its @Speak2Tweet Twitter account, that allows people to call a number and leave voice messages via Twitter. I have no idea if the person in the message below is actually in Syria, but if he is, his message is especially heart-breaking.

voice-to-tweet : http://t.co/Nw8JB3fj

November 30, 2012 7:13 am via SayNowReplyRetweetFavorite

@speak2tweet

Speak To Tweet

Here is a National Public Radio Story about all this. It mentions, almost in passing, some computers with satellite connections that have been given to members of the Syrian opposition by the U.S. Department of State. I’m going to try to learn more about them next.

While it is one of the largest consumer electronics and mobile companies in the world, Korea’s Samsung has a relatively quiet profile in Silicon Valley.

In fact, while it has had a longtime facility in San Jose for two decades, its execs are not well known to many except the top echelons of the tech sector here and Samsung’s interactions with the entrepreneurial culture have been decidedly low key.

No longer, it seems.

Besides a previously announced new 8.5-acre campus in Mountain View for its U.S. research and development center, slated for completion in 2014, sources said the company is close to signing a deal for a prominent venue in downtown Palo Alto that will house a start-up accelerator.

The location that the company is now negotiating is the second floor of the former Borders Books space on University Avenue. The historical property has a splashy movie marquee, since it used to house the Varsity Theatre.

It’s not quite Oppa Gangnam Style, it is a big move for Samsung.

While it is unclear if the new office will focus on making investments in start-ups or incubating its own innovation, sources said it will be aimed at linking Silicon Valley entrepreneurs and other players more closely with Samsung.

Sources said the move is being spearheaded by a relatively new hire by Samsung: David Eun, who became its EVP to lead a new push to create more media offerings in December. Previous to Samsung, Eun has been an exec at both Google and AOL.

Eun is well known in the Valley already, but a new location that will focus Samsung’s digital efforts should raise the company’s profile with the digerati here.

Also on the docket to do that is Samsung’s other new major facility. In September, right in the middle of its high-profile patent trial with Apple, the company announced that Samsung Information Systems America, its U.S. R&D Center, would expand and relocate to a new campus.

“The R&D Center will provide a state-of-the-art campus that can support the current rapid growth in the organization, and also provide the infrastructure to support Samsung’s open innovation and university collaboration activities,” Samsung said in a press release at the time. “Construction is anticipated to start in the second half of 2013 on the company’s two new six-story class-A office buildings totaling approximately 385,000 sq. ft. and two 5-6 story parking structures, with occupancy expected in 2014.”

In other words, Apple: Samsung is now officially in the house in Silicon Valley.

According to an internal memo, Yahoo CEO Marissa Mayer has brought back Jay Rossiter, who left the company under the regime of Scott Thompson, to lead its platforms effort “focusing on the tools and technology supporting our externally facing products.”

The move also take back a huge swath of engineering responsibilities at the Silicon Valley Internet giant from David Dibble, who was given a wide purview over all technology in June under interim CEO Ross Levinsohn.

Mayer smoothed over the change — Dibble will now be back in charge of internal infrastructure — in the memo to staff about the change, noting: “I want to call out that Dibble has been an incredible technical leader and tremendous member of my staff, and I’m confident this realignment will help us bring clear focus and faster execution within each organization.”

Rossiter was at Yahoo for five years, before leaving for a short time, having led its cloud efforts and other tech projects.

The hiring back of Yahoo is interesting, given that Mayer was widely touted as someone who would attract big-time new talent to gird its tech efforts.

In any case, here’s the memo:

From: Marissa Mayer
Date: November 13, 2012, 4:42:53 PM EST
To: “all-worldwide@yahoo-inc.com”
Subject: Welcome back Jay Rossiter!
Reply-To: Marissa Mayer

YAHOO! PROPRIETARY AND CONFIDENTIAL INFORMATION — DO NOT FORWARD

Hi All –

Today, I’m excited to welcome back a long-time Yahoo, colleague and friend. Jay Rossiter is returning to Yahoo! reporting to me as EVP of Platforms, focusing on the tools and technology supporting our externally facing products. As many of you know, this is an area of in which Jay has spent much of his career, including his five years here at Yahoo!. As a true engineering leader, Jay fully understands the intricacies of platform excellence — especially how important it is for us as we build great products for our users and advertisers.

Jay will lead our efforts in creating a world-class platform technology stack for the company. The technologies created by Jay’s team will include Cloud Services, Hadoop, Personalization & Targeting, Mobile/Presentation platform technologies, Consumer Platforms, Membership and supporting Development Tools. As part of this alignment, Elissa Murphy, Bruno Fernandez-Ruiz, James Carroll, Charles Marker, Rammohan Kordale, and Ty Lee will now join Jay’s team.

Additionally as we continue to ensure we are architecting our products with excellence, Amotz Maimon will join Jay’s leadership team. This new structure, focus at the E-Staff level coupled with Jay’s track record at Bell Labs, 3COM, Oracle and at Yahoo!, position us well for some big wins in the platform space.

David Dibble will continue to lead many of our critical technology functions as EVP of Central Technology — focused on the internal infrastructure that is so critical to our success. Dibble will lead our data centers, service engineering, CIO, IT, and internal security functions with Mark Morrissey, Randy Roumillat, Randall Gannaway, and Justin Somaini on his team. Scott Burke and RonBrachman will also continue to report to Dibble. I want to call out that Dibble has been an incredible technical leader and tremendous member of my staff, and I’m confident this realignment will help us bring clear focus and faster execution within each organization.

In Jay’s words: “I am absolutely thrilled to rejoin the ‘new Yahoo!’ with the increased momentum and focus on building great products leveraging world-class technology. I’ve been watching the changes from afar, having spent the last few months fulfilling a lifelong dream of traveling across Africa, Asia, and Europe with my family. I am ready to re-engage.”

Please join me in welcoming him back!

Marissa

But when disaster hits, when power fails followed by backup power failing, things get serious and physical rather quickly. That has been the case with Squarespace, an upstart Web site creation and hosting company based here in New York.

It has hosted its infrastructure with Peer1, one of a handful of companies affected by the flooding at 75 Broad Street. The short version of the story is that after backup generators kicked in, flooding overwhelmed the fuel pump.

CEO Anthony Casalena lives nearby in Soho and headed down to 75 Broad to see if he could lend a hand. Within hours he was pitching in with the staff of Peer1, manually carrying fuel to the generators, bucket-brigade style up 17 flights of stairs to keep them running. Staff from another company, Fog Creek Software, was also involved. The picture is of the “bucket brigade” from last night.

The result is that they managed to keep the systems running by manually feeding the generators while searching desperately for another way to keep a steady flow of fuel until reliable commercial power is turned back on. The best guesses we’re hearing from ConEdison is that this won’t be until Friday or Saturday at the earliest, maybe longer. The entire saga has been chronicled on a status blog with updates like this from 11 pm ET yesterday:

The midnight bucket brigade has begun (photo below).

When tonight’s brigade is done, we estimate we have a conservative 10 hours of capacity, allowing our 8am shift to begin tomorrow with low stress and also a switch to 120 minute refill sessions every 8 hours, versus yesterday’s continuous huffing of fuel up the stairs. Yeah, we’re getting good at this.

The building has had crews pumping water out of the basement all day. Unfortunately, we have no ETA on the repairing of the basement fuel delivery systems until the building’s crews get down there. However, both the building and PEER1 have been putting together separate contingency fuel pumping systems. We hope one of these will be online in the next 24-36 hours so that fuel refills will involve very few people and simply take place via a truck at street level.

Relief finally arrived late this afternoon with the installation of a new pump and by early evening the generators were humming along smoothly.

Who knew the cloud could be such hard work?

Naturally, there has been a lot of activity in their world during the last 48 hours or so, as Hurricane Sandy rumbled through the area, flooding data centers and central offices in Manhattan, among other things.

I’m a pretty technical guy and even I don’t know what a routing table is. But the video below is a time-lapse view of groups of different networks going offline as the storm passes. As Renesys explains in this blog post, the greenest of the green squares indicate that more than 99.95 percent of networks in a given area are running. The red ones indicate that more than 5 percent of the networks in the area have been knocked offline.

When you consider the density of the urban environments of lower Manhattan, coastal New Jersey, Connecticut, Brooklyn, Queens and Long Island, and realize that network density necessarily coincides with population density, it’s pretty jarring to see this much of the Internet knocked offline, and it gives you a sense of the scale of the problems facing the people paid to keep the bits flowing.

Renesys concludes that about 10 percent of the networks in the New York metropolitan area went down, which is really low given the fact that the local electric company, ConEdison, actually cut power to the lower portions of Manhattan, where a lot of those networks are based.

It also says something good about the planning of those whose networks stayed up and running, and those who keep the backup generators running and who aren’t getting much sleep.

Even so, in the grander scheme of things, it’s still a lot: Renesys compares the impact of the networks that went down to that of an entire country the size of Austria going down. It is something we’ve seen before. Case in point: Egypt.

Renesys also says that the uptime and downtime of networks in a storm zone are becoming a helpful indicator for generalized storm damage assessment, too. If you know a network has gone down in a certain area, then there’s a pretty good chance that it has been hit by flooding or other storm damage, usually within seconds of the catastrophe occurring.

Renesys made a short video showing the damage over Oct. 29 and 30.

To IBM, those countries are great, but being more than 100 years old, it is accustomed to taking a longer view in its planning. Big Blue has been engaged in Africa for a long time, and already has a business presence in 20 African countries. Today, it kicked that up a notch by announcing the creation of a full-fledged research lab in Nairobi, the capital of Kenya.

Recently, a lot of IBM’s conversations about emerging markets have focused on Africa. Much of it has to do with the fact that so many countries on that continent are getting on their feet and wanting to modernize their economies. Last year, the International Monetary Fund forecast that the combined GDP of the sub-Saharan African countries would grow by nearly 6 percent this year, nearly three times the rate it sees in the U.S. And Kenya has been an example: Its economy, while still relatively small, has been growing like crazy. The size of its economy has nearly tripled since 2000. (See the graph, courtesy of Google Public Data, below.)

So, what exactly will IBM be doing there? What it does best: Solving complicated problems. You can’t have a conversation with anyone from IBM without soon hearing about its Smarter Cities initiative, which focuses on things like throwing powerful analytics at big infrastructure problems like transportation, and tracking problems in water systems. These are not trivial problems in the first place, and even less so when you think about the numbers involved. There are about a billion people in Africa, and right now about a third of them live in cities. By 2025, about half the African population will be living in cities, and some cities — Nairobi included — will see their numbers swell by 70 percent or more. That kind of growth can’t help but put a strain on traffic, water and other infrastructure, which are the kind of problems that IBM has proven itself pretty good at solving here in the U.S.

After former interim CEO Ross Levinsohn departed Yahoo earlier this week, I noted that it was only a matter of time before more execs headed out the door with the changeover to new leader and former Googler Marissa Mayer.

So it is written, so it shall be done, it seems, with two significant departures from the company this week — with one tech exec going to Apple and another product exec headed to an interesting new online education initiative.

According to several sources, Adam Bechtel — who has been the VP of infrastructure at Yahoo — will be leaving for an unspecified job at Apple.

At Yahoo, Bechtel was essentially the No. 2 exec under tech, platform and ops head David Dibble, and had purview over its data centers, network, systems, storage and edge technologies. He joined Yahoo almost a decade ago, via its acquisition of Inktomi.

Also out the Yahoo door is Jonathan Katzman, a product ace who was part of the social efforts across Yahoo, led by Mike Kerns. He was on the Kerns team that drove its most notably successful product in a while, Social Bar, which has become one of the most popular apps for sharing on Facebook.

Katzman came to Yahoo after its acquired Xoopit — an email-focused sharing product — in 2009. He’s headed to be chief product officer at the Minerva Project, which is attempting to build the next top-tier university online.

There have been many other departures of less-well-known execs at Yahoo, several sources said, mostly due to fatigue over the number of management changes at the company. Most recently, that includes sales exec Marc Grabowski, who left without other plans.

“It’s not Mayer’s fault, but some of us are just done,” said one person who is leaving. “A lot of us just can’t take another restructuring.”

That said, a large number of others who had been contemplating leaving Yahoo are now in a wait-and-see mode regarding what their new CEO will do and who she will pick to help her turn it around.

Among current top execs, that has prompted who-will-stay-and-who-will-go guessing games internally, with Mayer grilling staff up and down the organization to get a better lay of the rocky land.

Perhaps the most insecure in their status are the top employees on the media and sales side of Yahoo, who were aligned with Levinsohn and his vision of the company as a content-centric business. Those to watch include strategy exec Jim Heckman, sales head Michael Barrett, and media head Mickie Rosen, among others.

Also, intriguingly still in the mix: Former Americas ad sales head Rich Riley, who is apparently still with the company, despite a June declaration to move on after some months. (Things change fast at Yahoo!)

On the tech and product side, it will be interesting to see if Mayer will promote from within its ranks — such as elevating Shashi Seth, SVP of Yahoo’s connections business. Other execs who could move in this arena are Dibble, and also Mark Morrissey, who now works for Dibble as head of engineering operations.

Of course, there are the other parts of Yahoo that Mayer also now has responsibility for, such as legal, marketing, finance and HR. The execs to monitor there include CFO Tim Morse, HR head David Windley, and marketing chief Mollie Spilman.

Longtime Yahoo legal head Mike Callahan left the company before Mayer’s arrival, so that job has been given to Ron Bell — Hi there, Ron, be nice! — on an interim basis. But look for movement there too.

Much speculation is also centering on what tech stars Mayer might bring in from Google or from elsewhere, including via acquisition.

She’ll need a lot of firepower, of course, to turn the company around, and has told various execs that she expects to make a lot of talent hires to get Yahoo back to producing at more innovative levels.

As I reported earlier today, she has got one already — former Google PR exec Anne Espiritu is now moving over to corporate communications at Yahoo. At the same time, Mayer abruptly let Yahoo’s most recent PR spokeswoman, Dana Lengeek, go.

Expect Mayer to continue to pull from Google, which is chock-full of talent and where she had a coterie of favorites, some of whom are there and some of whom have moved on. Those mentioned as possible hires still at Google include shopping exec Samir Samat and social-networking-famous (and fantastic) Orkut Büyükkökten.

But many of Mayer’s close colleagues have left Google already and are ensconced in important jobs, including: Dylan Casey, who is now director of product management at Path; PR exec Gabe Stricker, who runs communications for Twitter; Craig Silverstein, now at the Khan Academy; and Ben Ling, who is currently COO of the Badoo “meeting network.”

Mayer also reportedly holds former Googler, FriendFeeder and Facebooker Bret Taylor in very high regard. But the entrepreneur — exactly the kind of tech powerhouse she needs to bring into Yahoo and soon — is now in the midst of creating a new start-up.

When I pinged Taylor today about whether he’d consider taking up a challenge such as Yahoo, he texted back:

“No, definitely still starting my own company, despite the fact that I am a big fan of Marissa.”

It’s a nice compliment, and Mayer’s got a lot of people rooting for her, of course — the real trick will be to turn some of the strongest ones into Yahoos.

Which leads to a traffic jam. Which you can see in this convenient chart from a new FCC broadband study (via Zach Seward, via GigaOM. Phew.).

Now, imagine what that chart looks like in a world where cord-cutting — or cord-shaving, or cord-nevering — really does take off, and lots and lots of people are simultaneously hitting Netflix and iTunes and Amazon servers at the same time.

Keep that 8 pm to 10 pm “busy hour” dip in mind as we head to a world where broadband providers start capping or metering Internet usage — or at least try to wring more profit from broadband by upselling customers to higher connection speeds. When it comes to congestion, when you use the Internet is usually more important than how much you use the Internet.

In a critical hire to solidify its top corporate ranks, Airbnb has hired Intuit finance exec Andrew Swain as CFO.

At Intuit, he was VP of finance for the financial software company’s $1.5 billion consumer group, which includes its well-known TurboTax, Quicken and Mint products. Previous to that, Swain was VP of corporate strategy and development.

Swain also worked at the Boston Consulting Group. He got an MBA from Harvard Business School and a BS from the University of Manchester.

The San Francisco-based Airbnb said that Swain would “provide strategic leadership and build the company’s financial infrastructure as it continues its rapid global growth.”

AirBnb also hired a head of talent — former Apple HR exec Joni Reicher. She was most recently senior director of HR, focused on Apple’s sales org and also on its international recruiting.

Even though he is interim CEO, Ross Levinsohn just made a significant change in Yahoo’s tech organization, putting David Dibble in charge of both central technology and core platforms.

Previously, Dibble had been running technology and operations.

The move puts everything from Yahoo’s vast databases to its infrastructure that serves consumers to its advertising products under Dibble.

He is not, as some at Yahoo have perceived the new role, in charge of consumer product development itself. That role still remains with several execs, including Shashi Seth and Mickie Rosen. Yahoo is reportedly looking for a more senior product exec, as well as a new ad head.

But — since it’s Yahoo — the shift is not sitting well with some at the company, since it gives the man in charge of IT a much more expanded role in areas beyond his usual purview. One person likened it to “having an architectural firm run by a plumber.”

Ouch! Still, Dibble is well-regarded as an operator and a technologist and considered one of the more no-nonsense execs at the company.

As part of the move, another longtime Yahoo exec, Mark Morrissey, moves under Dibble as chief of operations for engineering. He used to report directly to the CEO and has held a number of jobs at Yahoo, including working on its search alliance with Microsoft.

Here’s the internal memo about the changes:

Yahoos:

Nothing will enable us to win as much as our ability to execute at the highest levels. We have incredible talent here. We have one of the largest audiences in the world, and we have a myriad of experiences that engage and delight users globally. It’s imperative that Yahoo! execute and operate in a world-class manner. When combined with a true focus on our priorities, growth and prosperity will be the natural outcome. Alignment of our organization and talent against a clear set of actions and goals is essential. To further enable our efforts, I’m pleased to announce the following organization alignment, effectively immediately.

We are bringing together our Central Technology and Core Platforms into one team that will be led by David Dibble. This provides the consumer business units with a single technology team responsible for platforms, technology infrastructure, engineering, science, and operations. It also unifies our key talent behind major projects including Rewire, Alpha, Agile, video technology, mobile technology, personalization and ad targeting, security, and sales tools.

Great technology relies fully on great execution. Great content cannot flourish without great technology. World-class experiences are fully wedded to flawless execution. David has proven to be a world-class operator with a team that operates at remarkable levels at massive scale. Thus, I’ve asked that David also take on broader operating responsibilities for Yahoo!

As executive vice president of technology and operations, David will lead diverse, dynamic, cross-functional program management initiatives and hold teams accountable for key deliverables, including uniting stakeholders in a cohesive product development lifecycle process. This ensures we have the right business case and strategic underpinnings to make our next generation products successful, and that teams are aligned on strategy, objectives, and goals from product conception through launch and subsequent iterations. Product-specific engineering teams for Connections and Media will continue to report into those business units and work closely with the combined group.

Additionally, I am thrilled to announce that Mark Morrissey becomes chief of operations for engineering, reporting into David. In this expanded and pivotal role for our company, Mark leads teams focused on product operations and lifecycle, service engineering, and priority program transitions. He is point for continuing the engineering Alpha initiative and Rewire, our effort to increase datacenter efficiencies. Critical to our future will be Mark’s role in driving our product operations and lifecycle. We must dramatically accelerate how we conceptualize, develop, and go to market with our products. We also must ensure that the company as a whole is fully aware and does their part to capture the potential opportunity. We need to assure the highest quality performance, maximize our marketing efforts and drive both user engagement and monetization. Mark will ensure that we have an agile, yet complete process.

John Kremer continues to lead business operations and the execution of the Alpha initiative, reporting into Mark. John is the executive lead for change management and ensuring the Alpha initiative is executed across the organization with quality and cohesion.

Please join me in congratulating David, Mark, and John. The leadership team and I are committed to making things easier, removing obstacles to our success and enabling Yahoo! to accelerate. I appreciate everything you contribute to the company daily; your passion, drive, and determination are inspiring. Together we are creating the future and defining what it means to be the world’s leading technology powered media company. Much like you, I’m playing to win. We’re in the midst of a revival!

Ross

She was in New York yesterday for a lunch with a few journalists, primarily to talk about Intel’s latest generation of Xeon processors for servers. Before they were officially released, these chips were known primarily by their code name, Romley, and often still are when analysts and others talk about them, because the code names are easier to remember than the product names, which, for the record in this case, is Xeon Processor E5-2600.

The Romley generation of chips builds on the foundation of Intel’s previous generation of server chips, known by its code name, Nehalem. The main benefit, which Bryant and other Intel execs and customers explain in lengthy detail in this video from the product’s launch in San Francisco three weeks ago, is that the chip is 80 percent faster at certain computing jobs, according to independent tests. At the same time, it is 50 percent more energy efficient.

Executives who operate data centers generally worry about two things: The raw number-crunching power they can squeeze out of the chips in their densely packed racks of servers, and the cost of the power required to keep them running and also keep them cool. So the introduction of a chip that can get more work done in a shorter amount of time while using half as much power is, at first glance, a pretty compelling moment to consider an upgrade.

And yet, that doesn’t seem to be the case. In a survey of 100 CIOs of large enterprises conducted by the investment bank J.P. Morgan, 91 said that they didn’t see Intel’s Romley chips as much of a catalyst for upgrades in their data center. Most seemed happy with the Nehalem-generation chips they had just purchased in servers during the past two to four years.

I was eager to share this result with Bryant to see what she said, and was too rude to wait until the salad course had arrived. For a moment, she was surprised — 91 percent is a pretty large percentage, after all. But the surprise didn’t last more than a few seconds.

Off the top of her head, Bryant rattled off the following, which I’m paraphrasing. On a recent visit with a customer who happens to be one of the 100 largest companies in the world — she wasn’t at liberty to identify it — Intel found an interesting result.

A check of the company’s data centers found that 36 percent — a little more than a third — of its servers were using chips that were more than four years old, meaning that they dated back to the dim mists of the days before Nehalem.

Those servers, it turned out, were responsible for consuming 65 percent — nearly two thirds — of its power supply. And how much computing muscle was the company getting for all this power? Precious little: The servers in question provided only 4 percent of the computing power of its infrastructure. To sum up: A third of the data center footprint was eating up two-thirds of the power budget, but providing less than one-twentieth of the overall computing capacity. Those older chips just aren’t pulling their weight.

“This is is extremely typical of what we’re seeing,” Bryant told me. Even so, she conceded that a customer running a larger percentage of more-recent chips — Nehalem and its newer variants — in its infrastructure might not see the sufficient bang for the buck of an upgrade that anyone running a lot of servers with older chips probably would.

I have to admit it was a pretty good answer.