In an unusual display of concern, the president of Google Enterprise has made a public statement saying there should be no cause for alarm about Google Apps and its cloud computing infrastructure following a major data breach by a China-based attack on Google and 20 other large enterprise companies. David Girouard, Google’s president of Google Enterprise, said in a personally written blog post that Google suffered a massive cyber attack last month. According to the corporate Google blog , the attackers came away from Google with stolen intellectual property. Sponsor Girouard downplayed the impact of the attack. He said Google “believes” the breach did not affect Google Apps customers. Girouard, obviously concerned about the backlash, said the incident may raise some questions about Google security. He said that Google is introducing additional security measures to help ensure the safety of customer’s data. There are consistent questions about cloud computing’s potential security flaws. Girouard is well aware of this. He tries to make it clear that this incident was not an assault on cloud computing. “It was an attack on the technology infrastructure of major corporations in sectors as diverse as finance, technology, media, and chemical. The route the attackers used was malicious software used to infect personal computers. Any computer connected to the Internet can fall victim to such attacks. While some intellectual property on our corporate network was compromised, we believe our customer cloud-based data remains secure.” Girouard comes close to making a sales pitch in his statement, saying, in fact, that Google customers benefit from the Internet giant’s investment in data security. “While any company can be subject to such an attack, those who use our cloud services benefit from our data security capabilities. At Google, we invest massive amounts of time and money in security. Nothing is more important to us. Our response to this attack shows that we are dedicated to protecting the businesses and users who have entrusted us with their sensitive email and document information. We are telling you this because we are committed to transparency, accountability, and maintaining your trust.” This is an incredible incident that will lead to some major issues for Google Enterprise over the next several months. As the battle heats up for cloud computing supremacy, competitors will pick at this incident as an example of why a company that’s more security conscious should be trusted with customer data, not a search engine giant. Discuss

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Google’s Top Enterprise Executive: Do Not Be Alarmed by Chinese Cyber Attack

Any web developer knows that it’s a lack of universal standards that can make designing and maintaining a web site unbearable. Startup venture VigLink says it’s here to handle at least one consistent issue – keeping affiliate link programs bringing in the bucks. The service says it is going to go even further and recover affiliate dollars you didn’t know you were losing. Sponsor The company announced today that it closed a seed investment round and it has a laundry list of technology insiders as backers, including First Round Capital, Google Ventures, LinkedIn Founder Reid Hoffman, longtime Google executive and current LinkedIn VP of Product Deep Nishar and a number of noted technology entrepreneurs. CEO Oliver Roup and Architect Rodrigo Leroux co-founded the company in March of last year and Roup told us today that the company was set to go live in the next few months. At the moment, it is still in beta-testing, but we had a quick chat with Roup over what to expect. Affiliate Marketing VigLink is looking to stand on the in-between ground of affiliate marketing, betwixt merchants and affiliates. Before we move on with the what and how, let’s briefly clarify our terms. In affiliate marketing , a merchant rewards an affiliate for traffic and pays commission on purchases made by referred visitors. Referring a friend to sign on with a cell phone company and getting $10 off your next month’s bill is an example of affiliate marketing. In this case, the cell phone company is the “merchant” and you are the “affiliate” or “publisher”. According to VigLink’s web site, more than half of all affiliate links are improperly formatted, which means that the affiliate loses out on hard earned commission dollars. If the customer cannot be tracked, the affiliate cannot get paid. The service solves this problem with a JavaScript snippet inserted into the affiliate’s web site, which makes sure all links are properly formatted. Changing the Name of the Game But while formatting affiliate-links properly can be a time-consuming pain, any web developer worth their salt should be able to handle the task. It’s not here that the service is going to make a difference. CEO Oliver Roup told us today that the real focus is all the money that is being lost, not only on improperly formatted links, but links to sites with affiliate programs that your site is not enrolled in. “Every time a link leaves your site, value is being created,” he explained. “You should be able to capitalize on that value.” The interesting new twist that VigLink introduces to the affiliate marketing game is that you don’t even have to know that you’re linking to a merchant to make a commission. It’s almost like having an agent. If a visitor from your site makes a purchase, VigLink keeps track and collects the commission for you, taking a percentage for itself. The company’s success now relies on getting some big name merchants involved. Since the service is free to affiliate members, it won’t take as much to get followers on that end of the spectrum. Pending that, we think that this is an idea that could be going places. Discuss

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Automatic Affiliate-Link Insertion Service Gets Google Backing

Yesterday’s official launch of Twitter co-founder Jack Dorsey’s new mobile payment system was greeted with a lot of enthusiasm . Not everybody agrees that Square’s business model is viable, however. Today, we got a chance to talk to Andy Kleitsch, the CEO of Billing Revolution , who didn’t hold back in his criticism of Dorsey’s plans. According to Kleitsch, Square is going after the wrong kind of customer if it wants to be a viable business: merchants who don’t qualify for accounts with traditional credit card processors because the would be deemed ‘high risk’ by these companies. Sponsor Billing Revolution offers a mobile payment system that gives customers the ability to pay for purchases through their phone and allows merchants to process credit cards through Billing Revolution’s mobile site. It’s worth noting that Square is using mobile technology to give merchants the ability to process transactions on their mobile phones and laptops and won’t enable uses to make mobile payments directly from their phones. As Billing Revolution competes with Square, we have to take Kleitsch’ comments with a grain of salt, but a lot of his arguments do ring true within the context of the credit card processing business. Are Real Merchants Looking for an Alternative? According to Kleitsch, established businesses “are not looking for Jack’s solution.” A regular coffee shop can get a payment terminal for free and only pays about $20 in fees per month (plus a percentage of every transaction). Kleitsch argues that the customer that is most likely to use Square’s system is somebody who makes jewelry at home and sells it at a local Christmas bazaar. The question is if this is a large enough market for Square. Traditional credit card processors are also able to settle accounts daily. It remains to be seen if Square will offer a similar service. Potential for Fraud Square will also have to deal with potential fraud. While we don’t know the exact details about how Square will operate, chances are that the company will have to keep a large reserve in an escrow account with the credit card processing companies that power Square’s back-end. Anybody who sits on a pile of stolen credit cards, Kleitsch pointed out, could use Square to run up charges on these accounts. Once the defrauded credit card owners dispute these charges, Square could be left with a large bill to pay. Merchants with a chargeback rate of more than 2% are typically turned down by credit card processing companies. If Kleitsch is right, these would be exactly the kind of merchants who would be interested in using Square’s payment system. Too Risky? Obviously, the company’s investors and advisors don’t think this business model is too risky. There can also be little doubt that consumers could benefit from a new company that disrupts the current status quo in the credit card processing world. Do you think Kleisch’s argument that Square will attract the wrong kind of customers holds true? Or do you think Square will revolutionize the market and finally give small companies the ability to do business on a level playing field? Discuss

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Is Jack Dorsey’s Square Going After the Wrong Customers?

Chester French is a rock band that has built an application on the Force.com platform. That’s compelling for the simple fact that when a rock and roll band develops its own application, you know that the market is seeing a far wider adoption than it has ever before. Even more, it’s an important reminder of the advantage of building your own applications over complete reliance on a social network that does not give you access to the customer information that you have developed on the platform. Sponsor Known for its dose of “pop pastiche,” whimsical lyrics and high energy, Chester French has shown enough popularity to get a record deal with Interscope and perform on the same bill as Weezer . Chester French – She loves everybody Uploaded by le-pere-de-colombe . – Music videos, artist interviews, concerts and more. The band built a VIP application for its fans using Force.com. VIP members receive perks for being on the VIP list. The more they promote the band, the more points they get. Prizes include music and t-shirts. Here’s their story as told by singer D.A. Wallach. It’s an interesting tale about the music industry and how one band built its own application to form direct relationships with its fans instead of being highly dependent on a social network site. It’s a problem that doesn’t just plague rock bands. A hosted platform can be a bit of a trap. Often, you do not own the data. Application platforms may not be as open as we’d like but you own the information and it can be exported .You can’t say that much about Facebook, which is lacking as a business platform simply because you can’t export your own contact information. I asked Marc Benioff about this last week in context to how Salesforce.com is integrating with Facebook. He said it is the individual’s decision about how they want to move their information around. But what is the point of a Facebook application environment if the contact information you develop is locked up? That’s going to be a big question for social networks as more businesses move to platforms like Facebook. Contact information is scattered for most people. An application may be the best answer for companies when developing relationships for commercial efforts. Social networks are becoming important for business but their value is compromised when they suck in your customer contact information but don’t let it out. Discuss

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What a Rock Band Can Teach Businesses About Social Networks

In his keynote this morning, Salesforce.com CEO Marc Benioff continued his critique on software companies for their lack of development and sense of entitlement. And not surprisingly, the full-on pitch continued for cloud computing with a parade of executives showing the applications they developed on Force.com . About 19,000 people attended Dreamforce, the annual Salesforce.com event. Partners lined up to get on stage. David Girouard of Google showed a map with all their customers around the globe. He recounted a story with Eric Schmidt, who was astounded by the frustrations that CIO’s expressed about the architecture they inherited. An Accenture executive said that cloud computing is here to stay. He showed the company’s applications on Force.com . The Black Crowes performed last night. The pitch is fever high. Sponsor What does this all say about the market? Is this an event that marks the point where cloud computing goes mainstream? Have we reached the apex of cloud computing hype? I asked the question on Twitter: Gartner sees the hype this way: Regardless, this has been a monumental week for cloud computing. The long established software companies have now lined up with their offering. Microsoft launched Azure . Salesforce.com unveiled Salesforce Chatter , Sales Cloud 2 and Service Cloud 2. IBM announced a cloud analytics platform that leverages Cognos, its business intelligence suite. The more established companies carry the benefit of long established customer channels. IBM and Microsoft fit into this camp. Additionally, Microsoft appears to get it. The Azure platform integrates some open-source components. These companies face their own challenges as much internally as from the customer world. But their presence also means that cloud computing is close to being accepted in the enterprise mainstream. Salesforce.com is a more interesting animal. Benioff is a very aggressive CEO. Business Week is calling him ” The King of the Cloud.” He is never shy to lampoon the established software companies in the market. He calls out his competitors like Sugar CRM , which is fighting right back with its own campaign: Behind The Smokescreen , a play on Benioff’s new book: “Behind The Cloud.” Benioff has to show off his partners. He never misses an opportunity to tell you how many customers he has. In a way, he has to play this role. He has the big players running. He has to keep them running, on the defensive, so he can move in with Chatter across the enterprise. That’s the trick right now for Benioff. Moving as fast as he possibly can to gain that permanent traction. The hype is peaking. It’s a different game for the entire market. It’s a race now to win the mainstream. Discuss

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Cloud Computing: Where to Next?