Collaboration tools are all the rage in office applications these days, and they come in many forms. There are platforms through which one can share and collaborate on many kinds of files. Box comes to mind. Then there are the cloud applications like Salesforce.com and Workday, all of which are collaborative. Social enterprise apps like Jive and Yammer are built expressly to encourage collaboration. Google Apps has recreated a solid set of core office applications, all accessible directly from a browser, and all of them allow multiple editors on documents.

Smartsheet is essentially a spreadsheet application that’s built for the age of the cloud. Entire sheets can be shared with colleagues, or you can share only granular bits of data, like the contents of a particular row. Sheets can be published to the Web, and are also accessible via mobile apps on iOS and Android. It integrates with Box, Salesforce, Google Drive and Amazon Web Services.

So far, it has a million customers, including companies as varied as ESPN, MetLife and Toshiba. Many of those just found Smartsheet and started using it for a particular project or task, and its use grew virally within those companies. One of them was Insight Venture Partners. And, of course, you know where this is going. In a moment worthy of a Victor Kiam, they liked it so much they’ve bought a piece of the company.

Insight announced today that it has led a $26 million investment in Smartsheet, along with Madrona Venture Partners. Ryan Hinkle, a principal at Insight, will join Smartsheet’s board of directors. The funding will go toward accelerating sales and marketing, and to kick software development efforts up a notch or two.

Next we saw Violin Memory — which makes flash-based storage arrays that are intended to make enterprise applications run faster — land $40 million in venture capital funding.

Now we see a third player entering the “flash madness” narrative. Pure Storage is coming out of stealth today, announcing its plans to sell flash-based storage arrays. It is also announcing that it has landed a $30 million C-round led by Redpoint Ventures, with Samsung Venture Investment joining. (Yes, that would be the venture capital arm of the South Korean electronics giant that happens to be the world’s biggest manufacturer of flash memory.) Greylock Partners and Sutter Hill Ventures also participated. The latest round brings Pure’s total funding raised to date to $55 million.

So what is Pure Storage all about? I met up with CEO Scott Dietzen last week and got the download.

The fundamental problem with enterprise storage is that hard drives just can’t keep up with everything else that’s gotten faster in the data center. Flash memory is fundamentally faster, it uses less energy and it takes up less space. We all know this.

The problem with flash is that it has always tended to be more expensive than hard drives. Today, you can buy a one terabyte hard drive for $100 or less. But just try getting that same amount in flash memory and see if the price isn’t, well, a lot higher.

The same principles apply in the data center. CIOs would love to convert to flash-based systems, as long as they’re reliable and affordable and work with the applications and other hardware they already have.

Pure Storage is essentially promising to deliver just that, Dietzen says. The company’s first product is an all-flash storage array that is 10 times faster and 10 times smaller than hard-disk-based systems. It’s called the Pure Storage FlashArray, and it is being aimed at mainstream enterprises in a manner that’s easy to deploy.

Pure’s founders are John Colgrove — one of the founding engineers at Veritas, now part of Symantec — and John Hayes, a founding engineer at Bix, which was ultimately swallowed up by Yahoo. Dietzen hails from Yahoo as well, by way of its acquisition of Zimbra, where he was CTO.

An early key hire was Michael Cornwell, who was lead technologist for flash at Sun Microsystems (now part of Oracle). Cornwell also worked at Apple, where he was Manager of Storage Engineering for the iPod division, and oversaw that product’s transition to — you guessed it — flash memory. Remember the first iPod nano? That was his baby.

Another key name: Greylock venture partner Frank Slootman, the former CEO of Data Domain, is on Pure’s board.

So what’s so special about a storage array built on flash memory? “Disks get slower every year,” Dietzen says. “Intel says processors have gotten 175 times faster over the last 15 years.” Disks just keep getting more data packed onto them, which doesn’t really make them any faster. The mechanical arm inside the disk that grabs data from the platter really can’t go much faster. “Disks today are comparably slower than tape was 15 years ago,” he says.

This creates a problem. Storage needs are going up, but hard drives are slowing data centers down, preventing them from reaching their full potential. It’s only because of cost — about $5 per gigabyte — that hard drives are still appealing. Enterprise-grade flash, on the other hand, tends to cost $40 to $100 per gigabyte, and because flash is historically less reliable, you have to buy double what you really need.

Pure’s play is to get over the cost hurdle. Dietzen says the company can get the cost down to $5 per gigabyte and less.

How does it do that? By reducing the amount of data you actually store. What happens in enterprise environments is that various bits of data get copied and recopied, over and over. Imagine a big filing cabinet with 50 copies of each document scattered around in different folders, when you really only need one. Suddenly the size of that file cabinet need not be so big. The same applies in data storage: Why bother having 10 copies of the same block of data, when one or two will do?

Using a technique known as deduplication, a system can eliminate all those unneeded copies and thus streamline the whole operation. Deduplication, combined with compression, was the primary principle behind Slootman’s Data Domain, which is now part of EMC.

But deduplication is expensive on hard drives, and really doesn’t make sense. Because the mechanical arm in a hard drive is always searching around for where its next needed block of data is to be found, if you employ deduplication, you end up with a bunch of reference signs telling the arm where to go, Dietzen says. The end result is that the disk has to spin more, not less. Flash memory chips don’t have that problem. “We make that process fast, because there’s no performance hit to the deduping process,” he says.

On top of that, Pure has created some algorithms that make the process a lot more granular than on hard-disk-based systems, by working with smaller disk-sector sizes. How small? He wouldn’t say exactly.

Unlike other storage companies — like, say, EMC — Pure’s array, Dietzen says, is built from the ground up for running flash. “The disk-centric companies are slotting flash into places where disks used to be, but they’re not changing the software to take advantage of the flash, to protect the flash from uneven wear and other things.”

A few early companies have tried the hardware, among them the law firm of Fenwick & West, whose CIO Matt Kesner is quoted in Pure’s press release as saying that the data used for various workloads was reduced from 50 to 90 percent.

One key thing that’s going on in the data center these days is virtualization — running several virtual computers within one single physical computer. When you run a lot of virtual machines, you have a lot of data that, like the paper in that big file cabinet, is essentially the same. Dietzen says that Pure’s flash array is able to eliminate a lot of that data. “Even if those virtual machines are a mix of Windows and Linux, there are a lot of commonalities between them,” he says. It’s not uncommon to see the data footprint for virtual machines reduced by a factor of 15 or 20 to one.

And that has caused some interesting reactions among early customers trying out the array. “Some people try it and are shocked when they put 15 terabytes on it and see there’s only one terabyte and think we’ve lost a lot of their data,” Dietzen says. “It’s a little scary at first, but then they run all their workloads and see all the data is there.”

Yahoo announced its first-quarter earnings today, showing a continued worrisome revenue growth stall, due in large part to declines in search revenue from its partnership with Microsoft.

The Silicon Valley search giant reported revenue of $1.06 billion, down six percent from a year ago, on net earnings of 17 cents a share, down 28 percent.

The performance was essentially in line with Wall Street expectations, which had been estimating that Yahoo would report $1.05 billion in net revenue and earnings of 16 cents a share, after traffic acquisition costs (TAC) was taken out of its results.

That compared to revenue of $1.13 billion and 22 cents in earnings in the same period a year ago, results that were goosed by the sale of its Zimbra email asset to VMware.

Yahoo’s revenue growth drought was due largely to declines in its search advertising business, which fell 19 percent in the quarter from $440 million to $357 million.

Contractual guarantees paid by Microsoft, its search partner, masked even larger declines.

On a GAAP basis, search revenue was $455 million, a 46 percent decrease compared to $841 million for the first quarter of 2010.

Yahoo said display revenue ex-TAC increased 10 percent to $471 million, compared to $427 million for the first quarter of 2010.

It was a good performance, but by no means a barn burner, especially compared to Google’s 27 percent revenue growth year-over-year in its earnings last week.

Thus, it seems the turnaround efforts at Yahoo, much touted by CEO Carol Bartz, are still turning.

In a statement, she said:

“We are solidly executing toward our plan for returning Yahoo! to sustainable revenue and profit growth. During the quarter, we beat the midpoint of revenue guidance while continuing to deliver on the bottom line.”

As BoomTown had previously written, in the last quarterly call, Bartz had warned that MicroHoo had not grown yet into the beautiful swan expected in this ugly-searchling tale, noting that it might take until the second half of 2011 to see some prettier results.

Thus, Yahoo is right to focus on display advertising, an arena it dominates still, despite increasingly successful incursions from Google and Facebook.

Yahoo’s stock is certainly reflecting the worry, holding fast to its share price in between $16 and $17 for a while now. It closed today at $16.12, down 23 cents a share.

A year ago it was above $18.

The shares rose almost three percent in after-hours trading, though, to $16.57.

I will be liveblogging the conference call Yahoo’s top execs have with analysts, starting at 2 pm.

Until then, here’s the official Q1 earnings press release to peruse:

YHOO_Q111PressReleaseFinal

Taylor Barada (pictured here), Yahoo’s recently appointed head of M&A, is joining Zynga in an unspecified role.

Barada replaced Andrew Siegel, who left Yahoo in December to join Condé Nast.

Yahoo staff was told of the move yesterday.

According to his bio at the Silicon Valley Internet giant:

“Taylor works with the Americas and Global Product orgs at Yahoo! leading strategic analysis/execution of acquisitions, divestitures, investments and other strategic relationships. Recent transactions include the sale of Zimbra to VMware and the acquisition of Citizen Sports. Prior to Yahoo! he worked as an investor, consultant, and operator at Rosewood Capital, Bain & Company, and Peregrine Systems. Taylor started his career as a professional soccer player and was a three time National Champion at the University of Virginia while completing his B.A. in History and Foreign Affairs.”

Barada’s departure to the San Francisco online gaming phenom–which was apparently able to extend him a more lucrative offer–will will put a crimp in Yahoo’s already slow-moving merger and acquisition strategies.

Yahoo declined to comment and I have emailed Zynga and have not yet heard back.

Margit Wennmachers (pictured here), one of Silicon Valley’s leading public relations and communications execs, is joining Andreessen Horowitz as a partner.

Wennmachers, 45, co-founded OutCast Communications, whose clients include Yahoo (YHOO), Facebook and Andreessen Horowitz.

The move will make her one of a handful of women at high-profile venture outfits.

At Andreessen Horowitz, she’ll focus on bringing marketing expertise to the firm and its portfolio companies, starting in September.

“For me, it’s a chance to build a top-notch VC firm and work with talented entrepreneurs, so what’s not to like?” wrote Wennmachers in an email to BoomTown (who got off a horse in Wyoming to write this).

Andreessen Horowitz has made a big splash since it was created a year ago with $300 million in funding. Its portfolio of high-profile companies includes Skype, RockMelt and Zynga.

Wennmachers got to know both Marc Andreessen and Ben Horowitz when they hired OutCast to launch their firm last year. Andreessen Horowitz will continue to be an OutCast client.

OutCast was founded 13 years ago by Wennmachers and Caryn Marooney. It was bought by Next Fifteen Communications in 2005, but has been operated independently ever since and will continue to be.

In fact, Marooney will continue to run OutCast, which has more than 80 employees in San Francisco and New York.

Its clients reflect a breadth of Web and other companies–big and small, public and private–also including AdMob, Aliph, Amazon (AMZN), Autodesk (ADSK), Bloom, VMware (VMW), salesforce.com (CRM), Code Advisors, Cisco (CSCO), Zimbra and Netflix (NFLX).

“OutCast is the best in the business. Between VMware, salesforce.com and Facebook, they have an outstanding track record of working with the best companies and making them more valuable,” said Andreessen. “We are thrilled that one of the founders has decided to join our firm. Margit’s experience in building brands will be a big asset to Andreessen Horowitz and our portfolio.”

Yahoo said its net income spiked to $310 million, or 22 cents a share, in the first quarter. Revenue, after subtracting what Yahoo pays in advertising commissions, was $1.13 billion.

Wall Street was expecting earnings of nine cents per share and net revenue of $1.17 billion.

A year ago, Yahoo (YHOO) earned $117.6 million, or eight cents per share.

“We had a good quarter, delivering income from operations higher than our outlook,” Yahoo CEO Carol Bartz said in a statement.

Yahoo benefited from a seven cent per share gain from the sale of Zimbra, as well as cost savings from its newish search and advertising partnership with Microsoft (MSFT).

Removing unusual items, EPS was 15 cents, up 77 percent year over year.

While the profit increase is a good thing, Wall Street is still looking for revenue growth from the Silicon Valley Internet giant and so is Bartz, who has promised increases.

Without taking out the ad commissions, revenue was up just one percent to $1.6 billion.

In any case, it is the best performance under the leadership of Bartz yet, helped by the turnaround in the online advertising industry.

Another strong note: Display ads were up 20 percent year over year, said Yahoo, much higher than analysts’ expectations of about 12 percent. But search growth was down again, this time 14 percent compared with last year.

Yahoo shares declined in after-hours trading, dropping to $17.96 after closing at $18.38.

BoomTown liveblogged the Yahoo earnings call at 2 pm PT.

Here’s the full press release from Yahoo embedded below, as well as the company’s earnings slides and condensed financial information:

YHOO_Q110PressRelease

YHOO_Q110EarningsPresentation_Final –

YHOO_Printalldocuments –

The deal, which is expected to close in the third quarter, involves a three-year traffic agreement under which Monster will become the provider of career and job content on the Yahoo (YHOO) homepage in the U.S. and Canada.

Obviously a smart move for Yahoo CEO Carol Bartz, who has been trying to narrow the company’s focus to its core portal business–most recently by selling email technology provider Zimbra to VMware (VMW).

Now, if only Bartz can unload Yahoo Games and Yahoo Shopping.

The release, below.

Monster to Acquire HotJobs Business and Enter into Multi-year Traffic Agreement with Yahoo!
NEW YORK & MAYNARD, Mass., Feb 03, 2010 —— Monster Worldwide, Inc. (MWW 16.42, +0.38, +2.37%) announced today that it has entered into a definitive agreement to acquire the assets of Yahoo! HotJobs, a leading online recruitment website, from Yahoo! (YHOO 15.46, +0.29, +1.91%) for $225 million in cash. Monster and Yahoo! have also entered into a three year commercial traffic agreement, to take effect upon the closing of the acquisition, in which Monster will become Yahoo!‘s provider of career and job content on the Yahoo! homepage in the United States and Canada. The traffic agreement calls for performance based annual payments calculated by clicks and expressions of interest, subject to annual floors and ceilings. In addition, the traffic agreement provides Monster with an exclusive right for a period of time following the closing of the acquisition to negotiate similar traffic agreements with Yahoo! properties on a global basis, including countries in Europe, Asia and Latin America, subject to certain limitations.

“HotJobs with its significant customer base plus the traffic agreement are an ideal complement to Monster’s innovative recruitment solutions and global reach,” said Sal Iannuzzi, chairman, chief executive officer and president of Monster Worldwide. “These agreements, combined with Monster’s career Communities and our recently introduced 6Sense(TM) semantic search technology, will bring substantial new benefits for employers seeking more qualified candidates and job seekers searching for more relevant opportunities across a wider range of industries—globally.”

“Bringing together Monster and HotJobs creates even greater access and opportunities for both recruiters and job seekers,” said Hilary Schneider, EVP, Yahoo! (NSDQ: YHOO). “The transaction with Monster enables us to continue to provide an important service to our users through the traffic agreement. Yahoo! remains focused on its core businesses and delivering exceptional experiences to users, partners and advertisers.”

Monster believes that the acquisition of HotJobs and the traffic agreement with Yahoo! will provide a number of benefits to jobseekers and employers, who today have more diverse competitive choices than ever before, and a value to all of its stakeholders, including its shareholders. These include:

Anticipated increase in job matches and search efficiencies–By bringing more diverse job and career opportunities, tools and resources together in one place, employers and job seekers will enjoy greater convenience and more precise search results and better matches with Monster’s patented 6Sense(TM) search technology and other innovative products.

Expected expansion of job seeker pool for employers–Monster will be able to offer its employers a significantly larger pool of candidates across diverse geographies and industries. Based on Media Metrix comScore (NSDQ: SCOR) reporting, last year HotJobs averaged 12.6 million unique visitors per month.

Expected expansion of the number of job postings across industries for job seekers–Through the combination of Monster and HotJobs job postings, job seekers will have access to more job opportunities in one place in those industries currently leading job creation, including healthcare, finance and insurance, retail, manufacturing, information and wholesale trade.

Broader reach anticipated for recruitment advertising through additional media alliances and reseller agreement–With the addition of HotJobs’s network of more than 600 daily and weekly newspapers, Monster’s alliances with local papers will grow to a total of approximately 1,000, giving Monster reach in all 50 states. The additional newspaper alliances, through their online and print classified ads, will further Monster’s current strategy of connecting job seekers with smaller, local businesses, particularly in healthcare, education, and skilled and hourly job categories.

Yahoo! will continue to manage its broader Newspaper Consortium (NPC) partnership, including providing both search and display advertising, content distribution, and its ad-serving platform, to newspapers in its NPC.

The transaction is subject to clearance under Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The transaction is currently expected to close sometime during the third quarter of 2010, subject to regulatory review. Monster expects to realize operating synergies from the acquisition and currently anticipates the transaction will be breakeven on a pro forma full year earnings in 2010 and accretive thereafter, inclusive of the costs incurred under the traffic agreement.

Stone Key Partners LLC and Bank of America Merrill Lynch acted as financial advisors to Monster in connection with this transaction. Allen & Company LLC provided a fairness opinion to Monster’s Board.

Sorry for the break in grading Yahoo’s Carol Bartz on her one-year anniversary as CEO.

But BoomTown was swanning around the Sundance Film Festival in Utah this weekend, went partying with those boozy Hollywood types and ended up in Provo with the crazy gals from “The Runaways”!

I wish! Actually, running away from issuing any grade for deal-making for Bartz is a pretty good way to put it.

Because today, after much thought, I have to give the Yahoo leader an incomplete for deal-making.

That’s because the only deal that truly counts–the search and online advertising partnership with Microsoft (MSFT) struck in July–has still not been approved by regulators.

More to the point, no one will really know what it means for Yahoo (YHOO) until the company finally embarks on the biggest bet of its recent history.

And that answer is many, many quarters away.

I began handing out marks to Bartz recently, after she gave herself a B- for overall performance for the year since she took over the troubled Internet giant.

But I decided to be more specific, splitting the grades for Yahoo in 2009 into five categories: Management, financials, product innovation, deal-making and moxie.

I awarded Bartz an A- for management, a C+ for financials and a C- for product innovation so far.

And as much as I would like to give a definite grade for deal-making, she has made no other deals of major consequence on which to base a grade.

The deal to integrate Facebook Connect and Twitter? A catch-up long past due and not as impressive as similar ones by Google and Microsoft. The sale of Zimbra and other assets? Essentially, cleaning up. A few minor acquisitions? No needle-movers in the lot.

Thus, the only deal has been with Microsoft, which is indeed a very big deal.

And it is, as I said, incomplete, although not to everyone.

Some thought the deal, which Bartz said she should have made sooner, was the best that Yahoo could pull off after the disastrous attempt by Microsoft to buy Yahoo for upward of $40 billion collapsed and left egg on everyone’s face.

With Google (GOOG) and Microsoft gearing up for a costly search war and no chance of Yahoo ever regaining any kind of tech advantage, the argument in favor goes, Bartz opted to get some kind of leverage while she still had some.

On many levels, that makes a lot of sense. And if it works, the deal will surely help improve Yahoo’s bottom line, cutting expenses in the search technology arena drastically and, the company hopes, giving it the ability to compete better in the marketplace by combining Yahoo and Microsoft search against the Google behemoth.

Presumably, if Yahoo can innovate in search experience and add to share, all is not lost.

But a lot of people certainly don’t like the deal, citing a variety of problems, especially the fact that Yahoo has essentially turned over all search monetization to Microsoft and traded away a big part of its business with no financial guarantees.

In fact, Bartz said in an interview with me at the seventh D: All Things Digital conference–months before she struck it–that she would want “boatloads of money” in any deal with Microsoft (see that video below).

At the time, most people thought she meant a gigantic upfront guaranteed payment for handing over search to Microsoft, which she did not get in the final deal.

Wrote one Internet exec in a long email to me, expressing a typical sentiment I have heard time and again:

She would have been much better off to simply have sold the current Yahoo search biz to Microsoft along the lines of the deal Carl Icahn tried to broker the summer after the acquisition bid was pulled. The cut over could have happened much faster (just start running Bing results on Yahoo) and Microsoft would probably have given a revenue guarantee that would keep Yahoo whole on revenue per search for the traffic they generated. That would also have eliminated the sales overhead immediately, providing greater cost savings…She chose a middle-ground (classic Yahoo) and will end up with lower returns for the declining search business than she could otherwise have had.

Only reason she doesn’t get the F that [former Yahoo CEO and Co-founder] Jerry Yang obviously earned on this topic is that she did actually make a deal.

And, indeed, Bartz had to play the cards she was handed by her predecessors, and they were not good ones.

Still, Yahoo is now depending on Microsoft to innovate in search technology. If it does not or cannot, look out below in that category, even if Yahoo recovers in its stronger display advertising arena.

So, with Yahoo’s search share declining of late, even as that of Microsoft’s Bing grows, it is right to start worrying and be nervous.

Nonetheless, as much as I like to dole out grades and as much as Bartz’s detractors would like to say it is over, it’s probably fairer to wait and see what happens.

One thing is certain: Bartz has shown either amazing guts or an astonishing lack of foresight here.

But let’s save that particular grade–moxie–for tomorrow, on the day Yahoo’s fourth-quarter earnings come out and Bartz is front and center in the earnings call.

Speaking of moxie–a.k.a. ch-ch-ch-ch-ch-ch-ch-ch-ch-cherry bomb!–here’s the trailer for “The Runaways,” which just opened at Sundance:

]]> http://allthingsd.com/20100125/the-one-year-report-card-of-yahoos-carol-bartz-deal-making-incomplete/feed/ 5 http://allthingsd.com/20100112/like-boomtown-said-vmware-buys-zimbra-from-yahoo-plus-the-full-press-release/ http://allthingsd.com/20100112/like-boomtown-said-vmware-buys-zimbra-from-yahoo-plus-the-full-press-release/#comments Tue, 12 Jan 2010 21:05:06 +0000 Kara Swisher http://kara.allthingsd.com/?p=22890

As BoomTown previously reported, VMware officially confirmed today that it is buying Yahoo’s Zimbra open-source email unit.

Financial terms were not disclosed, but sources said the price was well below the $350 million Yahoo (YHOO) paid for the start-up in late 2007.

Sources also said there is a large employee-retention element to the sale to encourage Zimbra’s 110 employees to make the move to VMware (VMW).

Under terms of the deal, which has been brewing between the two Silicon Valley companies for some weeks, VMware said it will “purchase all Zimbra technology and intellectual property. Yahoo! will have the right to continue to utilize the Zimbra technology in its communications services, including Yahoo! Mail and Yahoo! Calendar.”

“We’ve been simplifying the data center,” said Brian Byun, vice president and general manager, cloud services, at VMware, in an interview with me this afternoon. “With this move, we are expanding to another area…which is part of a larger strategy.”

Said Jim Morrisroe, who has been running Zimbra for Yahoo: “This is another step in a mission we’ve been on at Zimbra and we are very excited about what’s next at VMware.”

A week ago, BoomTown reported that the sale of Zimbra was likely.

BoomTown had reported in late September that Zimbra was for sale by Yahoo, which has been targeting for “de-acquisition” assets that are not central to the strategies of the company’s new management.

Zimbra and Yahoo’s small business and jobs sites have been on the block.

One source I spoke to last week noted that the reason VMware was interested in nabbing Zimbra is that its execs want to expand “up the stack” from the software company’s position in virtualization.

And Yahoo is no longer interested in running Zimbra’s white-label, open-source email commercial product, which serves the university and ISP markets. There, its main rival has been Google (GOOG).

VMware said the acquisition is expected to close in the first calendar quarter of 2010.

VMware to Acquire Zimbra

Company Expands vCloud Portfolio with Next Generation Email and Collaboration Software

PALO ALTO, Calif., January 12, 2010–VMware, Inc. (NYSE: VMW), the global leader in virtualization solutions from the desktop through the datacenter and to the cloud, today announced that it has entered into a definitive agreement to acquire Zimbra, a leading vendor of email and collaboration software, from Yahoo! Inc.

This acquisition will further VMware’s mission of taking complexity out of the datacenter, desktop, application development and core IT services, and delivering a fundamentally more efficient and new approach to IT.

Zimbra is a leading open source email and collaboration solution with over 55 million mailboxes. As an independent Yahoo! product division, Zimbra achieved 2009 mailbox growth of 86% overall and 165% among small and medium business customers.

Based on a modern, flexible architecture designed for virtualization and cloud-scale infrastructure, the Zimbra technology provides substantially lower total cost of ownership than traditional solutions. Zimbra products offer a full enterprise feature set, excellent interoperability with legacy email environments and have been deployed across small and large environments; as on-premise software at thousands of small and medium businesses, distributed enterprises, and as a hosted service at major service providers such as Comcast and NTT Communications.

“Over the coming years, we expect more organizations, especially small and medium size businesses, to increasingly buy core IT solutions that deliver cloud-like simplicity in end-user and operational experience,” said Brian Byun, Vice President and General Manager, Cloud Services, VMware. “Zimbra is a great example of the type of scalable ‘cloud era’ solutions that can span smaller, on-premise implementations to the cloud. It will be a building block in an expanding portfolio of solutions that can be offered as a virtual appliance or by a cloud service provider. We are excited to welcome the Zimbra team and community to the VMware family.”

VMware plans to support existing Zimbra products and open source efforts while further optimizing Zimbra products for vSphere-based cloud infrastructure, alongside Microsoft, IBM and other messaging and collaboration solutions.

Under the terms of the agreement, VMware will purchase all Zimbra technology and intellectual property. Yahoo! will have the right to continue to utilize the Zimbra technology in its communications services, including Yahoo! Mail and Yahoo! Calendar.

“The Zimbra technology has played and will continue to play an important role in our communications services products. The technology is core to Yahoo! Mail and Yahoo! Calendar and a key differentiator for these leading products,” said Bryan Lamkin, senior vice president, Yahoo! “The customers and partners of Zimbra’s industry-leading product and successful enterprise business will be well served with VMware.”

The acquisition is expected to close in the first calendar quarter of 2010. Financial details of the transaction were not disclosed.

]]> http://allthingsd.com/20100112/like-boomtown-said-vmware-buys-zimbra-from-yahoo-plus-the-full-press-release/feed/ 1 http://allthingsd.com/20100111/yahoo-will-announce-zimbra-sale-to-vmware-tomorrow-as-it-looks-over-bids-for-small-biz-unit/ http://allthingsd.com/20100111/yahoo-will-announce-zimbra-sale-to-vmware-tomorrow-as-it-looks-over-bids-for-small-biz-unit/#comments Mon, 11 Jan 2010 18:46:46 +0000 Kara Swisher http://kara.allthingsd.com/?p=22828

Yahoo is set to announce the sale of its Zimbra open-source email unit to VMware tomorrow, said sources, for a figure north of $100 million but below the $350 million the company paid for the unit in late 2007.

A week ago, BoomTown reported that the sale of Zimbra was likely.

Sources said there is a large employee-retention element to the sale to encourage Zimbra’s talent to make the move to VMware, as well as full retention of intellectual property by Yahoo for technology used in its email products. There will be ongoing IP giveback to VMware (VMW) over a period of time.

In addition, other sources said that Yahoo (YHOO) is about to consider bids it has solicited for its small business unit, which the company has also been trying to sell for some months.

Sources added that Yahoo will not sell the unit if it can’t get a decent price for the division, which is estimated to be worth many hundreds of millions of dollars.

When queried about the sale of Zimbra, Yahoo released this statement:

“We do not comment on rumors or speculation. Zimbra plays an important role today in the company’s communications services. Zimbra technologies have played and will continue to be integral to our leading Yahoo! Mail and Calendar offerings and a key differentiator for the company.”

BoomTown reported in late September that Zimbra was for sale by Yahoo, which has been targeting for “de-acquisition” assets that are not central to the strategies of the company’s new management.

Late last year when announcing its new $100 million marketing campaign, Yahoo CEO Carol Bartz said at a media briefing, “Most of our assets are very core to the company. Those that aren’t, where it makes sense we will sell and where it makes sense we will shut down.”

Yahoo has done just that with several properties, such as its JumpCut video-editing service.

But Zimbra, as well as its small business and jobs sites, have been on the block.

One source noted that the reason VMware was interested in nabbing Zimbra is that its execs want to expand “up the stack” from the Silicon Valley software company’s position in virtualization.

And Yahoo is no longer interested in running Zimbra’s white-label, open-source email commercial product, which serves the university and ISP markets. There, its main rival has been Google (GOOG).

VMware has not replied to an email query.

]]> http://allthingsd.com/20100111/yahoo-will-announce-zimbra-sale-to-vmware-tomorrow-as-it-looks-over-bids-for-small-biz-unit/feed/ 1 http://allthingsd.com/20100104/exclusive-vmware-likely-to-buy-zimbra-from-yahoo/ http://allthingsd.com/20100104/exclusive-vmware-likely-to-buy-zimbra-from-yahoo/#comments Mon, 04 Jan 2010 19:22:09 +0000 Kara Swisher http://kara.allthingsd.com/?p=22506

Yahoo is close to selling its Zimbra unit to VMware, according to several sources close to the situation.

Sources said the deal could be announced soon, but the price for the open-source email unit was still unclear.

But the price, sources said, is much lower than what Zimbra fetched when Yahoo bought the Silicon Valley start-up in late 2007 for $350 million.

Yahoo has been trying to sell Zimbra for some months now, but it had not attracted enough substantive bidders. According to one source, Yahoo (YHOO) CEO then approached VMware (VMW) CEO Paul Maritz, whom she knows well from their years as tech execs.

Bartz ran Autodesk (ADSK) for many years and Maritz was a longtime top exec at Microsoft (MSFT).

One source noted that the reason that VMware was interested in nabbing Zimbra was that its execs want to
expand “up the stack” from the software company’s position in virtualization.

BoomTown reported in late September that Zimbra was for sale by Yahoo, which has been targeting assets for “de-acquisition” that are not central to the strategies of its new management.

Late last year when announcing its new $100 million marketing campaign, Bartz said at a media briefing: “Most of our assets are very core to the company. Those that aren’t, where it makes sense we will sell and where it makes sense we will shut down.”

Yahoo has done that with several properties, such its JumpCut video editing service.

But Zimbra, as well as its small business and jobs sites have been on the block.

The sale of Zimbra will present a possible complication, since its innovative technology has been integrated–although not as extensively as some have felt it should be–into Yahoo’s popular email offering. But the Yahoo could easily license what it needs as part of the deal with VMware.

But, sources said, Yahoo is now not interested in running Zimbra’s white-label, open-source email commercial product, which serves the university and ISP markets. There, its main rival has been Google (GOOG).

Yahoo declined to comment and emails sent to VMware have gone unanswered as yet, but source expect an announcement within two weeks.

]]> http://allthingsd.com/20100104/exclusive-vmware-likely-to-buy-zimbra-from-yahoo/feed/ 9 http://allthingsd.com/20091021/yahoo-hires-new-ma-head-but-whither-greg-mrva/ http://allthingsd.com/20091021/yahoo-hires-new-ma-head-but-whither-greg-mrva/#comments Wed, 21 Oct 2009 07:12:50 +0000 Kara Swisher http://kara.allthingsd.com/?p=19683

Yahoo has hired a new head of mergers and acquisitions–former General Electric (GE) M&A exec Andrew Siegel, who will now be VP of corporate development.

Yahoo (YHOO) CFO Tim Morse dropped the news with exactly no details about that title in an interview with The Wall Street Journal about the Silicon Valley Internet giant’s third-quarter earnings.

Another question apparently not answered was what exactly is the status of its current top M&A exec, Greg Mrva–who has had the title Siegel has now posted on his LinkedIn profile–as well as that of VP of mergers and acquisitions more recently.

In other words: Where the heck is Greg?

BoomTown was considering a search party–get it?–if Yahoo hadn’t outsourced that to Microsoft (MSFT). Thus, Plan B: Mrva milk cartons!

On Facebook, Mrva is still listed as being in the Yahoo network, although there was a report floated recently by Silicon Alley Insider that he was asked by Morse to leave his M&A job at Yahoo and find a new one at the company.

Whatever the situation–either Mrva running it with Siegel or being hipchecked out by him–helming M&A at Yahoo can’t be a fun job right now, given that the company has been looking to sell quite a few of its assets, including its Zimbra open-source email business, its personals unit, its HotJobs online classified business and many more to come, said sources.

In fact, in a recent post, BoomTown wrote: “Mrva’s new job title should be: VP of un-mergers and de-acquisitions.”

The effort to unload big swathes of Yahoo is part of an aim by new management to slim down its diverse portfolio, even as it strives to redefine itself with a new, pricey marketing campaign that seeks to position the company primarily as a consumer offering.

Mrva has been the main exec shopping Yahoo properties around, according to many sources, a job that will now apparently be Siegel’s.

Yahoo CEO Carol Bartz has said the company is also looking for acquisitions, mostly small, so perhaps there will be more to do for the company’s dealmakers than running an Internet garage sale.

I contacted Yahoo to find out what’s up with Siegel and Mrva, a well-liked exec in Silicon Valley, and also have reached out to him. When either responds with anything of note, I will update here.

]]> http://allthingsd.com/20091021/yahoo-hires-new-ma-head-but-whither-greg-mrva/feed/ 2 http://allthingsd.com/20090922/live-from-new-york-yahoo-introduces-you/ http://allthingsd.com/20090922/live-from-new-york-yahoo-introduces-you/#comments Tue, 22 Sep 2009 15:19:42 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=11177

Unless I’m told otherwise, I’m only going to do this once. But for the record, Yahoo is going with the following spelling for its new slogan: “It Starts With Y!ou.” I don’t think that’s going to fly with consumers or copy editors, but we’ll see.

Also undetermined: Whether there will be any news unveiled at Yahoo’s press conference to roll out said slogan. But I’ll be here for you just in case. And in the meantime, you can find glimpses of the coming campaign at the bottom of this post.

The event begins: Boilerplate intro remarks from Yahoo (YHOO) CEO Carol Bartz, followed by CMO Elisa Steele. Steele shows off a Venn diagram that shows the intersection of “my world” and “the world.” Yahoo, apparently, is that intersection. “That’s where the yodel is.”

Steele reminds us that this is Yahoo’s first global marketing campaign. That’s old hat for Microsoft (MSFT) and something Google (GOOG) has never done. Ad campaigns will roll out in 10 countries, branding campaign will be in all territories.

Steele runs through some imagery that will be used in campaign. Yahoo users, apparently, comprise many races and creeds. But all of them are buff and/or skinny. Unless they’re pregnant. A video ad, meanwhile features an upgraded yodel.

OK. Time for Q&A:

Onstage: Bartz; Steele; EVP Hilary Schneider; Tapan Bhat, SVP Integrated Consumer Experiences; Penny Baldwin, SVP Global Integrated Marketing and Brand Management.

What’s the budget for the campaign?

Steele: “Over $100 million.”

Status of ad market? Also, what won’t you sell?

Schneider: Starting to see a stabilization. “Wouldn’t go so far as to say as we’re seeing a full recovery.”

Bartz: We’re still “bumping along the bottom.” Regarding sales, she dodges/reframes the question, talking about “focus” instead. “We’re just revisiting everything.” Is there anything you won’t sell? “Of course.” But no specifics. Will improve photo, video, “much, much better email.”

Please talk about the launch of Google Ad Exchange and its threat to you.

Schneider: “The reality is that the display marketplace is fragmented.” Our exchange (Right Media) is biggest, but it’s intuitive that there will be other exchanges. “We welcome Google.”

Why do a relaunch at all? Are consumers actually unhappy, or is it just advertisers and press and investors carping?

Bartz: “Advertisers follow consumers” and we need to “build circulation.” By doing this approach, “we get really good micro-insights for our advertisers.” She doesn’t explain how this will happen, though.

Steele: “Consumers want more from online advertising.” They’re asking for it.

What about video plans?

Bartz: “Video snacks” are crucial to consumers and advertisers. “A big emphasis” inside Yahoo. A “big cornerstone of our strategy.”

How long will campaign run? How will you measure success?

Steele: It’s funded for 15 months, and I expect it will run longer than that. Vague answers about management.

Some chat about search, which formally debuts today.

Will there be product-specific ads?

Steele: Launch of the campaign in each market will start with brand, and over time you’ll see more product ads, as “people get familiar with Yahoo again.”

One more time: Is Zimbra being shopped?

Bartz: No comment. But “what I will tell you is that Zimbra technology is very, very important to our mail system, and that’s one of the prime reasons that Yahoo bought Zimbra when it did…[but] the technology is already integrated into our system.”

How is this campaign different than other campaigns? You’ve had a lot of campaigns in the last 15 years.

Steele: I haven’t been here in past, but I’ve reviewed every campaign that has been done and this is radically different because it’s more than a campaign. Carol and Carol’s staff are all behind the concept of “you.” Everyone’s on board. “If this was just a marketing campaign or a slogan, then we’ve really failed.”

Bartz: This should remind you of the past, actually. That’s not a bad thing. On search: Search has evolved from the “10 blue links” days. She views background of search much like an Intel (INTC) chip, which everyone uses. But Dell’s (DELL) experience with that chip is different than HP’s (HPQ) experience, etc. Yahoo is stable at 19 percent of search business because users are on Yahoo and they like Yahoo search. “Yahoo search is great. It’s not Bing, it’s Yahoo search….What’s most important is that we drive upstream and provide a great experience, even though the plumbing is down here.”

Do users really like to customize their search (premise behind overhauled homepage)?

Bhat: Core group of 15 percent of users really into customization. Most other people say they want that but aren’t willing to do the work. So we’re doing incremental customization on the homepage. “This will be something that keeps growing over time.”

Will you be integrating text-messaging and other short messaging services into the homepage?

Bhat: Yes.

How is the antitrust scrutiny going (with regard to Microsoft search deal)?

Bartz: Just as we predicted. We stand by our original prediction that the deal will close early 2010.

Are we too obsessed about what’s new here?

Bartz: Yes. “People just decided to put a cloud over Yahoo’s head”…and decided that if we’re going to remove the cloud we had to show off something shiny and new. “If you get out of New York and Silicon Valley, everybody loves Yahoo.” I travel a lot and everyone loves it. “I just want to transport you guys out of this cynicism you’re in….Why are you so cynical? Why not be cynical about fricking Google? See…you got me…you got me pissed off.”

[Note. Some debate about whether Bartz used "fricking" instead of an actual curse. We'll go to tape later. Update: Apologies (and thanks to Business Insider's Nicholas Carlson, who shared his video with me). Bartz appears to have said "fricking" or "frigging" Google.]

[Sorry about interregnum there. Cursing got me wound up. Back to real-time.]

Where do you want to be in two years?

Bartz: Yahoo is the only site where you when you wake up in the morning and you want to know what’s going on everywhere about everything, you can find it one place. The company is unified around that spirit, “not about technology for technology’s sake, but about what that delivers.”

Why doesn’t Wall Street buy the Yahoo turnaround story even though Google has fared okay during this recession? 

Bartz: “Yahoo and Google are different companies. They are in different businesses…investors are somewhat like you guys, where they’re saying ‘let’s wait and see.’” About this direct comparison with Google: “We aren’t a comparable company. They aren’t us and we aren’t them.”

So whom would you like to be compared to?

Bartz: “Yahoo.” But the closest analog is AOL, actually. Google is a white page with a search box. We’re very personal. When you go to our page in India, it feels like India. Relevance is important. Personalization is important. That’s not Facebook’s strategy. That’s not Twitter. “Not to say we’re not part of the greater tech sector, and you’ve got to find some compares.” But Yahoo is unique. We’re doing okay with the world side; we have to work on the easy personalization that is the core of our product focus.

Please address the stock sale, Carol.

Bartz: “I didn’t sell anything.” I got restricted stock throughout the year; when it vests, it gets recorded as a sale. “I haven’t sold one penny of Yahoo stock. Thanks for asking, because it pissed me off when they said I sold. I wouldn’t do that.”

Q&A ends. More in a bit.

]]> http://allthingsd.com/20090922/live-from-new-york-yahoo-introduces-you/feed/ 0 http://allthingsd.com/20090921/yahoos-adds-zimbra-to-the-garage-sale-as-it-tries-to-shed-what-isnt-you/ http://allthingsd.com/20090921/yahoos-adds-zimbra-to-the-garage-sale-as-it-tries-to-shed-what-isnt-you/#comments Mon, 21 Sep 2009 11:16:05 +0000 Kara Swisher http://kara.allthingsd.com/?p=18639

According to numerous sources, Yahoo has been shopping around Zimbra, the open-source email company it bought in late 2007 for $350 million.

Zimbra is only one of the many assets of Yahoo (YHOO) that are now on the block, including its personals business, its HotJobs online classified unit and many more to come, said sources.

The effort to unload Zimbra is yet another sign that the company is trying to slim down its diverse portfolio, even as it strives to redefine itself this week with a new, pricey marketing campaign that seeks to position Yahoo primarily as a consumer company.

As first reported by BoomTown last week, Yahoo will be introducing a massive branding campaign tomorrow on the second day of Advertising Week in New York.

The new focus Yahoo is aiming for with advertisers is to stress its huge size and scale with consumers. The troubled Internet giant is still one of the most trafficked sites on the Web.

And consumers will also be reminded of this. The Wall Street Journal wrote a follow-up story yesterday on the marketing effort, noting that the $100 million campaign’s tagline is “It’s You.”

Get it? The “Y” in Yahoo is the same as the one in You!

The details of the plan will be made public tomorrow at a press conference immediately after a keynote speech–titled “Yahoo’s Consumer Revolution…Round II”–that the company’s new CMO, Elisa Steele, is set to deliver at the Interactive Advertising Bureau’s MIXX conference.

The goal, said several sources at Yahoo, will be to stress Yahoo’s consumer business over all others, which are supported mostly via brand advertising, leaving more extraneous ones out in the cold.

Which is why Zimbra–like a lot of other Yahoo properties–is being shopped around by its top mergers and acquisitions exec, Greg Mrva and others.

(Mrva’s new job title should be: VP of un-mergers and de-acquisitions.)

Backed by Benchmark Capital, Redpoint Ventures and Accel Partners, Zimbra was an innovative start-up whose main business was to provide clients–including Comcast (CMCSA), many ISPs and a number of colleges–with white-label email software capabilities.

Yahoo bought the company to goose that business, whose main rival has been Google (GOOG)–along with using Zimbra technology to improve its massive consumer email offering, also under siege from Google.

That integration has gone slowly, and Yahoo now has less interest in selling email products to others.

But the price Yahoo would get, many think, would be significantly lower that what it paid for Zimbra.

Nonetheless, potential buyers include Comcast and Google, as well as private-equity investors.

In addition, it is not out of the question that its former venture investors could be interested in a classic Silicon Valley buyback.

Zimbra’s founder and CEO, Satish Dharmaraj, who left Yahoo earlier this year, is now working at Redpoint.

Here is a video interview I did with Dharmaraj in early 2008, after the Yahoo deal was struck:

]]> http://allthingsd.com/20090921/yahoos-adds-zimbra-to-the-garage-sale-as-it-tries-to-shed-what-isnt-you/feed/ 4 http://allthingsd.com/20090907/sticky-situation-of-the-month-ex-yahoo-communications-head-and-peanut-butter-manifesto-scribe-garlinghouse-to-helm-similar-unit-at-aol/ http://allthingsd.com/20090907/sticky-situation-of-the-month-ex-yahoo-communications-head-and-peanut-butter-manifesto-scribe-garlinghouse-to-helm-similar-unit-at-aol/#comments Tue, 08 Sep 2009 03:45:02 +0000 Kara Swisher http://kara.allthingsd.com/?p=18169

In the ongoing game of musical chairs among top managers at Internet companies, former Yahoo exec Brad Garlinghouse–famous for his controversial “Peanut Butter Manifesto,” which correctly chided the Internet giant for becoming so lugubrious several years ago–is taking a job at AOL very similar to the one he left at Yahoo last year.

Garlinghouse, 38, has been named president of Internet and mobile communications at AOL, putting him in charge of the New York-based Time Warner (TWX) online unit’s powerful email and instant-messaging properties, including ICQ and AIM.

He has only been in talks with AOL–which used Spencer Stuart’s Internet-top-exec-finder-in-chief Jim Citrin–for a few weeks, in a deal that came together quickly, he and the company said.

Garlinghouse, a longtime Web entrepreneur and exec, had reportedly been considering a number of start-up and venture-related jobs since he left Yahoo last summer after six years there.

Sources said he was seriously considering becoming the CEO of a mobile firm.

He was most recently at Silver Lake Partners, as an “in-house senior advisor,” the private equity firm that recently bought the Skype Internet telephony firm for $1.9 billion. Garlinghouse also reportedly helped work on that deal.

“It’s really exciting to be to able to rebuild and revitalize an industry giant,” said Garlinghouse in an interview with BoomTown earlier today. “I make no bones that these [properties] are in need of that…but there is also a huge opportunity to do something cool.”

Garlinghouse has to hurry. Despite being among the top communications players online–a group that also includes Yahoo (YHOO) and Microsoft (MSFT) and, more recently, Google (GOOG)–AOL has lost relevance with key audiences, even as social networking properties like Facebook and the microblogging service, Twitter, have innovated in the communications space.

The hiring of Garlinghouse, well known in Silicon Valley circles, is meant to counter that.

He will head up AOL’s operations from its Mountain View, Calif., campus–which is also the former HQ of AOL-acquired Netscape Communications–where, said AOL CEO Tim Armstrong, Garlinghouse will “be CEO of Silicon Valley for us.”

Between all its various properties, AOL has several hundred employees in the Northern California area.

Armstrong said AOL–which was founded 25 years ago on the East Coast and has tried and failed many times to get a true foothold in the West–thinks having an important player at the center of the tech industry is critical as it moves to spin off as an independent company by the end of the year.

“We have a triple play in getting a great executive, who is a master in the communications on the Web and who is well known out there,” said Armstrong. “Brad is our senior AOL manager there.”

Along with running all of AOL’s communications properties, Garlinghouse will inherit some of its community properties, although AOL’s Bebo social networking unit–now considered to be an overpriced acquisition error–now resides in its ventures unit, headed by Jon Brod.

Garlinghouse will also be aiding Brod, said Armstrong, with AOL on the lookout for acquisition opportunities in communications and other arenas.

While Garlinghouse declined to be specific about what would pique his buying interest, he was responsible for such big Yahoo deals as its $350 million purchase of Zimbra in the fall of 2007.

He was also key to bringing both Oddpost, which is at the heart of Yahoo’s email offering, and the popular Flickr photosharing service to Yahoo.

Garlinghouse said he has admired what Twitter and Facebook have done, but that they were not destroying traditional online communications, pioneered by AOL, as some assert.

“It’s a vibrant segment and this just means there are a lot of opportunities to enable integration,” he said. “I think of it as an expansion of online communications and I hope AOL can do more collaboration and partnerships.”

Garlinghouse also has to watch AOL’s basic products like email, which was recently passed by Google’s Gmail as the No. 3 email service in the U.S. Yahoo Mail is the top email, while Microsoft’s Hotmail is second.

How much Garlinghouse can do will depend on the future financial strength of AOL. Its advertising business has been hit hard in the econalpyse, with hopes it will return before its money-generating access business continues its slow decline.

Armstrong is now in the midst of looking over AOL’s cost structure and employee base, which most expect will eventually result in another round of layoffs and cuts.

He has been busy creating a different strategy for the company since he arrived earlier this year, as well as hiring (and firing) top execs to create a new management structure.

Now, that includes Garlinghouse.

So, for a look-see at AOL’s latest talent acquisition, here’s a video interview I did with him, just after Yahoo bought Zimbra:

And here’s the full press release from AOL about the hiring of Garlinghouse:

AOL NAMES BRAD GARLINGHOUSE AS PRESIDENT, INTERNET AND MOBILE COMMUNICATIONS

NEW YORK, N.Y.–September 8, 2009–AOL today named Brad Garlinghouse as President of Internet and Mobile Communications, spearheading AOL’s global efforts to expand the reach of its e-mail and instant messaging. Garlinghouse will also take on an expanded leadership position for the company, heading up AOL’s Silicon Valley operations from its Mountain View campus and serving as the West Coast lead for AOL Ventures, the company’s venture capital arm headed globally by Jon Brod. Garlinghouse was most recently at Silver Lake Partners as an in-house Senior Advisor.

Prior to Silver Lake, Garlinghouse spent nearly six years at Yahoo!, where he led that company’s communications and community products. Garlinghouse will report directly to AOL’s Chairman and CEO Tim Armstrong.

” Brad Garlinghouse is an all-star in the Internet industry with an unparalleled background and proven track record, having led Yahoo’s communications products to unprecedented growth,” said Armstrong. “In addition to leading our efforts to grow our communications products, Brad will be bringing his global leadership and business experience as a key member of our company’s executive leadership team. He will also be a major force for AOL in Silicon Valley, working to expand our presence there and in the tech community in general. We’re delighted to have Brad on board and know he’ll do great things for AOL.”

“It’s a tremendous opportunity to join AOL at this pivotal moment in its history,” Garlinghouse said. “Tim has set out a clear strategy and vision for where he is taking this company as it becomes independent again. I’m looking forward to working with him and the rest of the team to realize that vision.”

Armstrong, who joined AOL in April, identified Communications as one of the five key areas of strategic focus for AOL after an extensive 100-day review of the company’s business. Other focus areas include Content, Advertising, Local & Mapping and AOL Ventures.

Garlinghouse spent nearly six years at Yahoo! where he most recently served as SVP of Communications and Communities. Prior to that he served as SVP of Communications, Communities and Front Doors, which included the Yahoo! home page. He came to Yahoo in 2003 as VP, Communication Products. During his time there, Yahoo! Mail went from No. 3 to leading all competitors by a wide margin, and the company’s instant messaging service rose to become the leader in that market as well. Garlinghouse also oversaw the company’s Flickr photo-sharing service and Yahoo! Groups.

Prior to Yahoo!, Garlinghouse was CEO of Dialpad.com Inc., responsible for all aspects of the company’s operations, finance, sales and marketing. He was also General Partner at @Ventures, Category Manager of Media Development for the @Home Network, Inc., and Manager at SBC Communications.

Garlinghouse, 38, received his BA in economics from the University of Kansas and his MBA from Harvard Business School.

]]> http://allthingsd.com/20090907/sticky-situation-of-the-month-ex-yahoo-communications-head-and-peanut-butter-manifesto-scribe-garlinghouse-to-helm-similar-unit-at-aol/feed/ 0 http://allthingsd.com/20090528/d7-interview-mitchell-baker-and-john-lilly/ http://allthingsd.com/20090528/d7-interview-mitchell-baker-and-john-lilly/#comments Thu, 28 May 2009 18:20:04 +0000 John Paczkowski http://d7.allthingsd.com/?p=215

As CEO and chairman of Mozilla, respectively, John Lilly and Mitchell Baker steward the development of Firefox, the open-source browser that challenged and then broke Microsoft’s choke hold on the browser market. As of April 2009, Firefox claimed 22.48 percent of Web browser market, according to Net Applications. That makes it the second most popular browser world-wide, after Internet Explorer, which holds 66.1 percent. An impressive feat. And an important one. Because by dislodging Internet Explorer from its dominant market position, Firefox has proven not only that open-source projects often provide better software–something to which any Linux geek will attest–but that it’s possible for a particularly well done one to become an everyday consumer application.

Session Highlights

Live Blog

• “How many people here have heard of Firefox?” Walt asks. Applause. And with that, Mitchell Baker and John Lilly join him onstage.
• When I test a Windows computer, says Walt, the very first thing I do is download Firefox to see if it works. Because if it doesn’t, there are obviously problems. How many people use Firefox? 300 million says Lilly. But that’s just about 20 percent. Which is shocking. Because that means most folks end up using the browser that comes with their computers. And we spend more time with our browsers than with our families.
• Walt asks about the Firefox growth curve. Baker says the curve has been relatively linear after an initial spike. “Why don’t people use Firefox?” Walt asks. Lilly says people just aren’t aware. “Most people think of the browser as a pane of glass; they don’t realize that it really effects the way they see the Web. Baker adds that many people fear their computers, and that might make them reticent to experiment with a new browser.

• Firefox’s initial browser improvements in speed and extensibility have been matched. Mozilla is a far smaller outfit than Microsoft (MSFT), Apple (AAPL) and now Google GOOG). Sure, you’re nimble. But how are you going to keep up with these guys? Lilly acknowledges that rival browsers are formidable. But Firefox is still making advances in speed and performance. It’s a “modern” browser, he says contrasting it to Microsoft’s Internet Explorer. Walt presses further. Notes that Google Chrome has what the company claims is the fastest Javascript engine around. Apple makes similar claims with Safari. Again, how do you compete? Baker: “If you were a business picking a space in which to compete, you wouldn’t pick one with Microsoft, Apple and Google.” But remember, she says, that wasn’t the case a few years ago. It was really just IE. We’ve been around for a while and we’ve had great success. Mozilla is undaunted by Microsoft et al., apparently.
• Walt: 71 of the foreign-language versions of Firefox are written by volunteers. Why should I use a product like that? Lilly says Mozilla has a system for verifying the quality of these other versions and vets them prior to release. Beyond that, users will alert the company to any problems.
• Walt: Why wouldn’t it just be better for the consumer to go with the company that’s hired experts to do its translations? Baker: How much software do you really think is great? Walt: Not very much. Lilly: But it’s all written by experts. Walt nods, point taken.
• Walt presses on, noting that many open-source products are rough. Baker concedes. Circling back, Walt takes issue with Lilly’s characterization of IE as not a “modern” browser.” Explain that. Fast, Supports new graphics standards. Runs apps well. Lilly says IE doesn’t. Walt asks for an example. Lilly says Zimbra.
• How does it feel to be competing with Chrome, Walt asks, noting that Mozilla has long had a relationship with Google. “You’re now where Google’s “don’t-be-evil bulldozer is heading. How does that feel?” Baker says relations between the two companies are still good. They are still cooperating on geolocation, for example. The next version of Firefox will ship with that and it’s a Google service. It doesn’t have to be a Google service, but Google provides it for free and as such, is the obvious source. Lilly jumps in: As long as we build a good browser, we’re OK. We’re not without assets. “We’re not simply going to shut down because Google is entering our market.” Our point of view is that the browser can do more for you. That’s not really Google’s vision. We think of the browser as a “user agent.”
• Lilly says he likes Chrome. “Really?” asks Walt. Lilly says yes. He notes that rival browsers like Chrome and Safari have made Firefox better. A nice change from competing against, IE, apparently.
• Walt asks why Mozilla doesn’t making non-Web browser software. “What we’re actually trying to do,” says Baker, “is improve the Web itself….Our main goal is to make more capabilities available, and right now, the browser is the main delivery mechanism….We’re trying to be the delivery mechanism upon which others build innovations.”
• Lilly mentions Thunderbird, Mozilla’s email app. Walt dismisses it as a geek app. He notes the difference between it and Firefox, which is a polished, mainstream app. Lilly says Thunderbird is not a niche app. It’s got a sizable user base.
• On to the issue of mobile… Why am I not using Firefox on my iPhone or BlackBerry? Lilly notes that prior to Apple’s App store, people were not that accustomed to installing apps on their phone. “We needed that to change….That moved the power away from the carriers and manufacturers to the consumers. And we didn’t want to do ‘Firefox Mobile’; we wanted to do Firefox–the fullblown app.”
• Something about Windows mobile, presumably negative [I missed it].

  Walt: I wish Ballmer was still here.

  Lilly: Who doesn’t? [laughter]

• Baker: “What we really want to do is make Firefox a mediation layer for developers.” Rather than building 15 different versions of the browser, Mozilla wants to build a single application layer for all of them.
• Q&A: The first question is about whether the company worries about a shift from a nonprofit to for-profit business. Baker says Mozilla can’t be successful with a for-profit model. “We are only successful because of our current status.”
• Is Firefox responsible for Google’s market dominance? Short answer: Obviously not.
• What’s the value proposition for Firefox now that Chrome exists? Questioner has switched to Chrome because it runs Google Apps better (which is the way Google designed it). So why use Firefox? People like the interface, says Lilly. They can modify it. They can skin it, etc. Lots of legitimate reasons.

A note about our coverage: This liveblog is not an official transcript of the conversation that occurred onstage. Rather, it is a compilation of quotes, paraphrased statements and ad-lib observations written and posted to the Web as quickly as we were able. It was not intended as a transcript and should not be interpreted as one.

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]]> http://allthingsd.com/20090528/d7-interview-mitchell-baker-and-john-lilly/feed/ 1 http://allthingsd.com/20090427/entrepreneur-turned-vc-satish-dharmaraj-speaks-about-his-very-first-vc-investment/ http://allthingsd.com/20090427/entrepreneur-turned-vc-satish-dharmaraj-speaks-about-his-very-first-vc-investment/#comments Mon, 27 Apr 2009 13:00:18 +0000 Kara Swisher http://kara.allthingsd.com/?p=12690

Little known factoid: Every time a penny drops onto a start-up, a venture capitalist gets his wings.

Well, OK, not so much, but it’s one way to look at it.

An example of that, though, is this video interview I did with serial Silicon Valley entrepreneur Satish Dharmaraj, who has been on the ground floor of a number of tech start-ups–such as Zimbra, which sold to Yahoo (YHOO) for $350 million in late 2007–and has now made his first investment as a new VC.

It’s in virtualization company VMOps, which was founded last year. VMOps, according to its Web site, “develops software that allows companies to launch an elastic computing cloud and offer it as a service to end-users.”

Dharmaraj left Yahoo early this year.

But he decided not to start another company, instead opting to take a spot as a partner at Redpoint Ventures. There, he is focusing on business software, the enterprise arena and infrastructure.

It’s an interesting move for an entrepreneur like him since way too few VCs have started companies and because it will be interesting to see how a more experienced operator like Dharmaraj does.

Here’s the interview, where we talk about all that and more:

]]> http://allthingsd.com/20090427/entrepreneur-turned-vc-satish-dharmaraj-speaks-about-his-very-first-vc-investment/feed/ 0 http://allthingsd.com/20090424/yahoo-hires-adobe-vet-lamkin-to-run-communications-and-communities-unit-as-dietzen-moves-to-strategy-post/ http://allthingsd.com/20090424/yahoo-hires-adobe-vet-lamkin-to-run-communications-and-communities-unit-as-dietzen-moves-to-strategy-post/#comments Sat, 25 Apr 2009 06:43:53 +0000 Kara Swisher http://kara.allthingsd.com/?p=12863 [UPDATE: Yahoo confirmed the BoomTown report below today. See below for the company's statement.]

More musical chairs at Yahoo, which BoomTown predicted recently, as top execs at the company move in and out of jobs, and new ones from the outside move in.

Perhaps the most important change to occur is the replacement this week of SVP Scott Dietzen–who has been in charge of all communications and communities products at Yahoo (YHOO)–by former Adobe Systems (ADBE) exec Bryan Lamkin, several sources said.

Lamkin will become SVP of Applications Products.

According to his profile on LinkedIn, Lamkin (pictured here) was most recently SVP of Creative Solutions, Adobe’s largest business unit, where the software exec “led product strategy, marketing and product development for Adobe’s flagship software applications, including Photoshop, the Creative Suite, Dreamweaver, Flash and Illustrator.”

Lamkin, who was at Adobe for 14 years, has more recently been an executive-in-residence at two venture firms, New Enterprise Associates and Sutter Hill Ventures.

He will take over for Dietzen, who came to Yahoo in 2007 after its $350 million Zimbra open-source email acquisition

Dietzen–whom sources said is more entrepreneurial than managerial and did not want to lead such a big organization at the Internet giant–will become VP of strategy in the move. Many said they expect he will eventually leave Yahoo to try his hand at another start-up.

His colleague, Zimbra founder and CEO Satish Dharmaraj, left Yahoo earlier this year to join Redpoint Ventures as a VC.

In his job since, Dietzen has been busy fixing Yahoo’s mail and calendar offerings. (See my video interview with him below from last fall.)

But that’s not all.

Also afoot is a restructuring of Yahoo’s North American sales unit, with the unexpected promotion of Mitch Spolan, who was a regional sales exec and will now be in charge of all North American field sales.

The paidContent Web site reported the sales changes first, which have been rumored around Yahoo recently.

Spolan jumped over two more senior execs, sources said, who run sales operations for the East and West coasts. One of those execs, Beth Lawrence, will now run Yahoo’s relations with agencies. Both report to U.S. sales SVP Joanne Bradford.

Over the last 18 months, Yahoo has seen a bleeding of its advertising staff to a wide range of Silicon Valley Web companies, including, most recently, Yahoo’s VP of Sales Operations Dan Foehner to social-networking site Facebook.

Lastly, one of Yahoo’s most senior communications execs, Brad Williams, was let go as part of its recent round of layoffs. He had been running PR–admirably and with good cheer, I might add, despite all the bad news–since its head, Jill Nash, departed earlier this year.

Williams’s departure was first reported by The Wall Street Journal tonight. He came to Yahoo in early 2008 from eBay (EBAY).

New marketing head Elisa Steele, who was hired by CEO Carol Bartz, had recently hired a headhunting firm to find a new PR chief, sources said, and Williams was not considered as a candidate for the job.

UPDATE: Yahoo confirmed my report above.

A spokesman sent me the following info about Lamkin’s appointment:

Bryan Lamkin, formerly of Adobe, is joining Yahoo! as senior vice president of Applications Products, reporting directly to Ari Balogh. As a reminder, the Applications Products group consists of several key global products for Yahoo!, including Yahoo! Mail, Yahoo! Messenger, Flickr, Yahoo! Answers, Yahoo! Groups and Zimbra.

Bryan brings a wealth of experience on the consumer technology front and his background ties in nicely with Yahoo!’s ongoing focus to deliver great consumer experiences across the globe.

Bryan takes over for Scott Dietzen, who was named the interim head of Application Products following the reorg back in February. Scott will continue on at Yahoo!, and will work across Yahoo!’s Applications Products in a new product strategy role.

Bio

Bryan Lamkin

Senior Vice President, Applications Product, Yahoo!

Bryan Lamkin joins Yahoo! as the senior vice president of Applications Products. In this role, he will oversee the global strategy, development and performance for key products within the Yahoo! portfolio, including Yahoo! Mail, Yahoo! Messenger, Flickr, Yahoo! Answers, Yahoo! Groups and Zimbra.

Lamkin most recently served as senior vice president and general manager of Creative Solutions, Adobe’s largest business unit. Lamkin led product strategy, marketing and research and development for Adobe’s flagship software applications, including the Photoshop, Photoshop Elements, the Creative Suite, Dreamweaver, Flash and Illustrator.

In his 14 years at Adobe Systems, Lamkin held key management positions including Senior Vice President and General Manager, Digital Imaging and Video and Vice President of Marketing, Professional Publishing Solutions. Lamkin was responsible for product development and marketing as well as the acquisition and product integration strategies that established Adobe’s overwhelming leadership in digital imaging and video and web publishing. Before joining Adobe Systems, Lamkin served in key product marketing and international product development roles at Software Publishing Corporation and holds both a BA and MBA from the University of California at Berkeley.

And here is Dietzen in my video interview:

]]> http://allthingsd.com/20090424/yahoo-hires-adobe-vet-lamkin-to-run-communications-and-communities-unit-as-dietzen-moves-to-strategy-post/feed/ 0 http://allthingsd.com/20090415/stop-me-if-youve-heard-this-one-yahoo-management-and-staff-set-on-shuffle-again/ http://allthingsd.com/20090415/stop-me-if-youve-heard-this-one-yahoo-management-and-staff-set-on-shuffle-again/#comments Wed, 15 Apr 2009 08:31:09 +0000 Kara Swisher http://kara.allthingsd.com/?p=11417

Yes, more layoffs are indeed coming to Yahoo, sources confirmed to BoomTown, but perhaps even more than have been reported.

But that’s not all, as even more top-level managers are either leaving or being moved around the ever-changing organizational structure at Yahoo (YHOO).

That includes a longtime top sales operations exec, Dan Foehner, who is about to start at Facebook next week, as well as others contemplating leaving, on their way out or are being reshuffled.

In other words, business as usual at the tumultuous company, whose nickname should be “Reorg.”

First, the layoffs, which the New York Times was first to report yesterday would be announced Tuesday (side note to Damon–this is how you link to scoops) during Yahoo’s first-quarter earnings call and could impact several hundred employees.

The quarterly results are expected to be weak by most analysts, which is why more layoffs–which had been mentioned by the company as a possibility–are an obvious move.

But several internal sources said Yahoo staff is bracing for employee departures that might to be even higher, as many as 500 or more.

That could mean a complete lopping off or sale of various business units that Yahoo CEO Carol Bartz has been evaluating since she arrived in January.

Why? Well, several employees said they were told the new round of cuts will not actually take place until June and that Yahoo HR is now preparing to follow the rules required by the Worker Adjustment and Retraining Notification Act.

Under the complex federal guidelines, Yahoo must provide a written WARN notice to affected employees “at least 60 calendar days in advance of covered plant closings and mass layoffs.” WARN notices are triggered for a variety of reasons, although a smaller number of layoffs across many units typically does not require it.

A WARN notice is required, for example, when an employer shuts down a facility or operating unit within a single site of employment and lays off at least 50 full-time workers, as well as when an employer lays off 500 or more full-time workers at a single site of employment.

In its last two layoffs, Yahoo issued WARN notices and slashed about 2,500 jobs in total last year, leaving it with about 13,600 employees world-wide at the end of 2008.

But some of Yahoo managers are still leaving on their own.

Many top engineers, for example, have taken jobs of late at Microsoft (MSFT) after the software giant installed a Yahoo tech star, Qi Lu, as its top online exec.

And, BoomTown reported earlier, there have also been numerous departures of key staff recently, including: PR head Jill Nash, Zimbra founder Satish Dharmaraj and soon, high-ranking techie Venkat Panchapakesan.

And more still, it seems.

Yahoo’s VP of Sales Operations Foehner, for example, is headed out after a long stint at the company and is going to Facebook, said several sources inside and outside the company.

On Foehner’s Twitter page, he tweets about a new unnamed job, as well as an athletic endeavor (Foehner is a dedicated triathlete): “back in pleasanton. starting bike adventure on thurs. start new gig on monday. 9 weeks til CdA!”

There is also a lot more movement inside Yahoo, as the reorganization done by Bartz in February shakes out.

Typical of this is Mike Walrath, the high-profile former CEO of Right Media, an online ad exchange snapped up by Yahoo for $720 million in 2007, who is now an advertising-focused SVP at Yahoo.

Now Walrath is moving out from under the purview of Yahoo North America EVP Hilary Schneider and will report to Ari Balogh, EVP of Products and CTO, as all search products seem to be rolling up through his organization. (Both Balogh and Schneider are pictured here.)

While there are other key execs at Yahoo–see this drastically downsized Yahoo management page, which used to be a lot longer–Balogh and Schneider have roughly split the company into two parts, product and engineering for Balogh and the bulk of the content and advertising businesses under Schneider.

Bartz is at the top, of course, and moving parts is not a complete surprise, said one exec, as she gets more control of the company.

“The last reorg was a blunt instrument, so now she is starting to surgically move people around or even out, after seeing what staff can and can’t do and what fat there still is,” said one exec close to the situation.

That’s no small comfort to Yahoo’s reorg-and-layoff-weary staff, especially at its Sunnyvale, Calif., HQ in the heart of Silicon Valley.

When Bartz announced her big reorganization in late February, she declared a moratorium to the endless reorganizations that had plagued the company’s troops for far too many years.

Wrote Bartz in an email to Yahoo employees about her new management lineup:

“I know you guys have reorg fatigue. Hang in there–our intention is to leave this structure in place for two to four years. We’ll continue to make adjustments as needed, but we expect this core structure to stay put.”

Perhaps the core is still solid, but a lot is still quite undefined at Yahoo, as it seeks to right its shaky fortunes.

]]> http://allthingsd.com/20090415/stop-me-if-youve-heard-this-one-yahoo-management-and-staff-set-on-shuffle-again/feed/ 1 http://allthingsd.com/20090413/bartz-of-100-days-tough-talk-to-microsoft-talks/ http://allthingsd.com/20090413/bartz-of-100-days-tough-talk-to-microsoft-talks/#comments Mon, 13 Apr 2009 15:30:29 +0000 Kara Swisher http://kara.allthingsd.com/?p=11364

Here’s an interesting irony–Yahoo CEO Carol Bartz will have her 99th day in office on the very one that the Internet giant will announce its first-quarter earnings: April 21, 2009 at 2 p.m. PST.

Technically, it will mean that she has been running Yahoo (YHOO) for 100 days, a time when most administrations get their first evaluation.

Thus, if it’s good enough for President Obama, it’s good enough for Bartz!

While most expect the results for the quarter to be weak, due to the econalypse, the overall verdict from BoomTown’s needling of Yahoos to give me info on their new leader recently: Love, love, love Bartz’s innate decisiveness, and wanting more of the same.

“She has an opinion and she is not afraid to use it,” joked one high-ranking Yahoo. “That is a big deal for a lot of people here who have wanted a CEO who is very forceful.”

And the only substantive negative: Some remain worried about her lack of Internet savvy, although most of those admit she has been a quick learner as the 100-day mark comes to a close.

In Yahoo’s case, 100 days has a special meaning–when he got his job in late 2007, former Yahoo CEO and co-founder Jerry Yang declared that he was going to give the troubled company a 100-day evaluation with “no sacred cows.”

The Yang-farmed bovines, as it turned out, just got fatter.

Under Bartz, more have been under the knife, as the hard-charging exec has started to really put her imprint on the company.

She has certainly talked tough since the meet-the-press conference on her very first day on Jan. 13.

Some memorable Bartz quotes were about Yahoo’s immediate needs, in her estimation: “some friggin’ breathing room” and “frankly, [the company] could use a little management.”

That kind of tough-lady, Annie-Get-Your-Gun quote-making has been Bartz’s signature, whether it be in folksy Friday memos she has sent out to staff or at the fourth-quarter earnings call in late January, only weeks into her tenure, when she declared:

“This is not a company that needs to be pulled apart and left for the chickens.”

Well, except for the management structure, which Bartz pulled right apart and reshuffled six weeks in.

Cleaning up and simplifying the complex reporting structure in an all-roads-lead-to-Carol set-up and tossing out the CFO were main points of the reorganization. Many at Yahoo expect there to be even more cuts in staff sooner than later, many sources said.

And there have also been departures of key staff, including: PR head Jill Nash, Zimbra founder Satish Dharmaraj and soon, high-ranking techie Venkat Panchapakesan.

Yang too, although he remains on the board, has not been present as much at the company.

Curiously, though, except for the new CMO, Elisa Steele–whose office is powerfully located right next to Bartz, as many Yahoos noted to me–there have been no further appointments for open positions for CFO, a new Customer Advocacy top exec and a new international head. Presumably, they are on the way.

Not that Bartz has not been busy–visiting Yahoo staff and clients all over–as well as finally finding time for a face-to-face meeting with Microsoft CEO Steve Ballmer in Silicon Valley recently.

Before the recent meetings, in a classic negotiating tactic, Bartz (pictured here) has projected a disinterested, poker-faced attitude about the situation, even telling Yahoo staff in one meeting “that she plans to spend a lot of time investigating whether to sell Yahoo’s search business, but that her ‘gut’ was not to do that.”

Well, a sale of Yahoo’s search business might not happen, Bartz was only buying a little time in being so confident and projecting the affect that Yahoo had some leverage and a choice.

But that is exactly what she does not really have, given that Yahoo faces the prospect of spiraling costs to maintain a search share, even as it has a good chance of declining.

So, last week, the news–first reported here Friday–that Bartz was involved in preliminary talks with Microsoft (MSFT) about an extensive commercial advertising and search partnership–should have come as almost no surprise.

A re-engagement between the companies, after a bruising takeover battle that ended in tears all around, has been long hoped for by investors and other observers, given that both have struggled against the search behemoth that is Google (GOOG).

(Or, in a nickname that BoomTown is trying unsuccessfully to popularize: Googzilla.)

The talks–which are not about the software giant making another acquisition offer for Yahoo–are ongoing and might not lead anywhere, but it is in both sides’ interest to avoid that outcome.

“Yahoo has to do some kind of deal or Bartz will be facing a decline even she cannot manage,” said one person close to the situation. “And Microsoft, if it wants to compete in search, needs Yahoo’s share along with its own.”

Among the surprisingly innovative ideas being bandied about: Yahoo might take over all of Microsoft’s display and premium advertising business to sell along with its own, while Microsoft would run the search advertising business for the pair.

And, while the discussions could degenerate into chest-pounding and pointless jockeying, one assumes that Bartz gets the idea that Yahoo needs a lot of help–including from some rapprochement with Microsoft, from making its staff even leaner, from streamlining its product focus and from striking other significant partnerships.

Many inside and outside Yahoo certainly hope that spirit–and not the one from this video below of a fabulous scene of Betty Hutton and Howard Keel in the musical classic, “Annie Get Your Gun,” singing “Anything You Can Do”–prevails with Microsoft in the next 100 days.

]]> http://allthingsd.com/20090413/bartz-of-100-days-tough-talk-to-microsoft-talks/feed/ 1 http://allthingsd.com/20090323/zimbra-founder-and-ex-yahoo-exec-dharmaraj-to-redpoint-ventures/ http://allthingsd.com/20090323/zimbra-founder-and-ex-yahoo-exec-dharmaraj-to-redpoint-ventures/#comments Mon, 23 Mar 2009 19:54:59 +0000 Kara Swisher http://kara.allthingsd.com/?p=11167

Another former Yahoo exec has landed at a Silicon Valley venture firm. This time, well-regarded serial entrepreneur Satish Dharmaraj will become a partner at Redpoint Ventures, according to sources.

The move of Dharmaraj is interesting, given that he is not starting a new company or taking a post as an entrepreneur-in-residence at the venture capital firm, as many operating execs do after leaving a company.

Dharmaraj left Yahoo (YHOO) in late January, as was reported here.

He worked there after one of the companies he founded, open-source email start-up Zimbra, was bought by the Internet giant for $350 million in late 2007.

Zimbra’s technology has been an important part of the effort to turbocharge Yahoo’s powerful communications properties as competitors like Google (GOOG) have become more aggressive.

Sources close to the situation said Dharmaraj would focus on business software, the enterprise arena and infrastructure at Redpoint.

Other former Yahoo execs who have gone to VC firms over the last year in a variety of roles include David Goldberg, Jeff Weiner (who has since become president of LinkedIn) and Andrew Braccia.

Here is a video interview I did with Dhamaraj last year after Yahoo bought Zimbra:

]]> http://allthingsd.com/20090323/zimbra-founder-and-ex-yahoo-exec-dharmaraj-to-redpoint-ventures/feed/ 0 http://allthingsd.com/20090202/yahoo-pr-head-jill-nash-to-depart-the-company/ http://allthingsd.com/20090202/yahoo-pr-head-jill-nash-to-depart-the-company/#comments Mon, 02 Feb 2009 22:44:21 +0000 Kara Swisher http://kara.allthingsd.com/?p=9289

Jill Nash, Yahoo’s chief communications officer, has told CEO Carol Bartz and other Yahoo staff this afternoon that she is leaving the company.

Yahoo has not made Nash’s resignation official, but is likely to do so quickly as Bartz tries to stanch incessant leaks (like this one; see below!).

In any case, sources said Nash does not appear to have any definite plans to move to another company immediately, so the reasons for her departure are unclear.

BoomTown would have to guess that Nash is simply completely spent from her past two years at Yahoo (YHOO), which have been very fraught from a public relations perspective, to say the least.

Nash, who was hired by former CEO Terry Semel, has had to deal with everything from management turmoil, after Semel was replaced by co-founder Jerry Yang, to poor financial results to a nasty takeover attempt by Microsoft (MSFT) to an even less friendly proxy fight to a failed search deal with Google (GOOG) to recent wrenching layoffs.

Not much good news to report, in other words, especially with a tough turnaround road ahead with newly installed CEO Bartz, who seems to have a very strong mind of her own about public relations.

(Including, several sources tell me, this week in an internal memo, offering cash rewards to employees who turn in other employees who leak to the press. Bartz has also initiated investigations to stop leaks. All I can say about these tactics–while it might seem reasonable to try to stop the leaking, from a management perspective, and I see why Bartz is focusing on it–is: Yahoo is not a prison and its employees are not snitches and–more to the point–they won’t leak to me if Bartz fixes the company.)

While I have not always seen eye-to-eye with Nash on this column’s coverage of Yahoo, I have found her to be a pro to deal with and fair, especially considering the often tense circumstances at Yahoo in the last year.

Nash is not the first top Yahoo exec to depart since Bartz got to Yahoo in mid-January and will not likely be the last, as the new CEO carves out her own path and chooses the team she wants.

Many Yahoos have told me, not for attribution and at all levels of the company, that they are bone-tired of the long-term struggle the company has been engaged in and want to move on, even in this weak economic climate.

Last week, this column reported the departures of Zimbra co-founder Satish Dharmaraj and marketing exec Eric Hadley, neither of which was necessarily due to Bartz’s arrival.

Now it’s Nash’s turn to say goodbye. According to Yahoo’s Web site, her duties were to lead its outward-facing efforts.

It reads, in part: “As a key member of the Yahoo! executive team, Nash will be responsible for the company’s worldwide communications efforts, including public and media relations, corporate reputation, corporate, financial and employee communications, and crisis and issues management.”

Nash came to Yahoo from the Gap, where she was the VP of global corporate communications. Previous to that, she worked at Charles Schwab (SCHW), KPMG and Transamerica Life.

]]> http://allthingsd.com/20090202/yahoo-pr-head-jill-nash-to-depart-the-company/feed/ 2 http://allthingsd.com/20090125/carol-bartzs-first-week-at-yahoo-memo-to-the-troops/ http://allthingsd.com/20090125/carol-bartzs-first-week-at-yahoo-memo-to-the-troops/#comments Sun, 25 Jan 2009 09:53:47 +0000 Kara Swisher http://kara.allthingsd.com/?p=8924

With Yahoo earnings expected to be dismal when the company reports fourth-quarter earnings this Tuesday afternoon, new Yahoo CEO Carol Bartz is going to have to hang tough.

And she certainly seems capable of that. At her first all-hands meeting, Bartz (pictured here) said, according to one report others have since confirmed to BoomTown, that she would “drop-kick to f***ing Mars” employees who leak to the press.

That threat sent little shivers up BoomTown’s spine too, which is why it must have taken so long for her first-week missive to Yahoo (YHOO) staff worldwide to get to my inbox.

Well played, Ms. Bartz, well played. (Plus, I really am bad at football metaphors.)

But turnabout is also fair play. And that’s why I am redoubling my efforts to bring you up-to-date news from Yahoo under Bartz’s leadership, as ATD has done so obsessively during the reigns of ex-Yahoo CEOs Terry Semel and Jerry Yang (and, if you want to really date me, Tim Koogle).

In that spirit, this column broke the news last week that Zimbra founder Satish Dharmaraj and marketing exec Eric Hadley were leaving.

And the week before that Yahoo Chairman Roy Bostock was swanning around Manhattan with Microsoft (MSFT) CEO Steve Ballmer and Time Warner (TWX) CEO Jeff Bewkes.

More to come this week, for sure, as all eyes turns to Yahoo’s financial performance (which is no fault of Bartz’s, who’s just arrived but still has to deliver the news).

But until then, here’s that energetic memo Bartz sent out to Yahoo troops after her first week there.

From: Carol Bartz
Sent: Friday, January 16, 2009 3:12 PM
To: all-worldwide@yahoo-inc.com
Subject: My First Friday

It’s Friday!

Wow, this week has gone fast. I thought I’d give you a quick idea of how things went for me this week. First, a BIG thank you for all the positive comments you’ve sent my way. It has really made me feel welcome. And a special big thanks to all the guys (that’d be Willie, Anthony, Jack, Allen, Daryl, Nathan, Ali, etc.) that worked so quickly to get Judy and I up and running. I know I told you at the all-hands that I was going to be bringing my lunch. That was before I saw the cafeteria–it rocks! Forget that leftover stuff!

My first impression of the Yahoos is that you guys are smart and dedicated, and have a lot of great energy with a can-do attitude (ok, maybe there’s some sucking up because I’m the boss, but it impressed the heck out of me).

I wasn’t too happy to see some “inside sources” quoting my all-hands comments to the outside press–STOP IT! And while we’re on the subject of all-hands, I cancelled the regularly scheduled after-earnings meeting simply because it’s just too close to the one we just had. Don’t take it as something it’s not.

I’m pumped up and proud to be here. I’m going to spend my weekend shopping for something purple (great excuse for a little retail therapy)…

Carol

]]> http://allthingsd.com/20090125/carol-bartzs-first-week-at-yahoo-memo-to-the-troops/feed/ 7 http://allthingsd.com/20090122/yahooyet-another-hiring-over-and-out-hadley-heads-to-microsoft/ http://allthingsd.com/20090122/yahooyet-another-hiring-over-and-out-hadley-heads-to-microsoft/#comments Thu, 22 Jan 2009 11:47:39 +0000 Kara Swisher http://kara.allthingsd.com/?p=8816

One of Yahoo’s top marketing execs, Eric Hadley, who came to the company with a lot of acclaim in only November, is set to leave for a new job working in branding and global marketing for Microsoft’s MSN online service, several sources said.

Hadley had previously worked at Microsoft (MSFT) as GM of global advertising solutions and marketing support at MSN, although he had come to Yahoo (YHOO) from a job at Heavy.com as its chief marketing officer.

At Yahoo, he was hired as its VP of U.S. field marketing. In a statement at the time of his hire, Yahoo’s marketing and customer care SVP, Nick Besbeas, said it was a “a newly created role responsible for marketing communications strategy and execution for advertisers, publishers, industry groups and other partners.”

It’s yet another sign of renewed executive unrest at Yahoo, which continues in the wake of the hiring of new CEO Carol Bartz. Yesterday, BoomTown reported that Zimbra founder Satish Dharmaraj was leaving Yahoo, which was confirmed by the company later in the day.

Hadley seemed excited by the new role at Yahoo only a few short months ago. In his statement then, he said: “I’ve always admired the Yahoo! brand, the spirit of innovation and results Yahoo! provides for advertisers. I am very excited to be joining this great team and look forward to helping take the company to the next level.”

Well, maybe not the next level, which Yahoo is trying to reach under Bartz.

The departure of both execs is not likely related directly to her arrival, as sources at Yahoo said that the hard-charging new CEO had not yet met with all its top execs to assess the bench strength at Yahoo, or brought in any new execs save her own longtime administrative assistant.

So far, many of the troops at Yahoo seem jazzed by Bartz’s arrival as it signals change and she is known for making decisions quickly.

But the uncertainty of a new CEO and continued talks with Microsoft and Time Warner (TWX) unit AOL about various partnerships have continued to jar many at Yahoo too.

]]> http://allthingsd.com/20090122/yahooyet-another-hiring-over-and-out-hadley-heads-to-microsoft/feed/ 1 http://allthingsd.com/20090121/zimbra-founder-satish-dharmaraj-to-depart-yahoo/ http://allthingsd.com/20090121/zimbra-founder-satish-dharmaraj-to-depart-yahoo/#comments Wed, 21 Jan 2009 17:18:29 +0000 Kara Swisher http://kara.allthingsd.com/?p=8795 Satish Dharmaraj–the founder of open-source email start-up Zimbra, which has been at the heart of significant new changes to Yahoo’s key communications services–will be leaving the company.

The move, to be announced internally later today, is not a big surprise, even though Yahoo paid $350 million for Zimbra in the fall of 2007.

Dharmaraj (pictured here) had previously stepped back from day-to-day leadership at the Yahoo communications and communities division, which is run by former Zimbra President and CTO Scott Dietzen.

But the departure of an innovative entrepreneur like Dharmaraj–although typical when big companies buy start-ups–is never a good thing, given that it’s more important than ever to keep innovative leaders at Yahoo.

New CEO Carol Bartz will have to tap internal leadership if she hopes to turn Yahoo (YHOO) into the kind of fresh opportunity she said it could be when she was hired earlier this month.

Yahoo introduced new email services recently, based on some of Zimbra’s technologies and concepts.

That has been important, since Yahoo Mail has always been a company bright spot and has remained the bigger provider of Web email to general consumers.

But most agree that Yahoo has allowed the Google (GOOG) mail offering, Gmail, to suck up all the oxygen in the room with more flashy features like threading of conversations while not serving up a strong response quickly enough in an arena Yahoo pioneered.

Zimbra vaulted its effort at differentiation from the hyped Google offering forward more quickly.

More importantly, it has strengthened Yahoo’s ability to make online email act more like a computer program than a Web page, which has been the main focus of late of Yahoo, Google, Time Warner (TWX) online unit AOL and Windows Live Hotmail from Microsoft (MSFT).

In addition, since Zimbra was designed with flexible and open Ajax programming tools, it made it easy for third-party developers to make many other applications that jack innovation from the outside, making the communications platform the center of the Web experience with video, search and other tools.

It’s not clear where Dharmaraj is going, but here is a video interview I did with him last year after Yahoo bought Zimbra:

]]> http://allthingsd.com/20090121/zimbra-founder-satish-dharmaraj-to-depart-yahoo/feed/ 3