You’re hard pressed to find any sector of the tech economy that is getting more financing than cloud computing. Today’s announcement by Hewlett-Packard and Microsoft is a good example. The two tech giants announced a partnership today that is valued at $250 million. Why are these ventures getting such an influx of revenue? If content is king, then infrastructure in the castle in the cloud. Sponsor Castles cost a lot to build and so does a cloud service. The Microsoft-HP deal is a case in point. The two companies are building a cloud infrastructure that spans hardware and software integration. They are developing their own applications. It’s like an effort to build a massive data center network that works as one giant computer. The investment includes the use of HP servers for Azure, the cloud platform developed by Microsoft. In return, Microsoft software, database programs and other applications will be loaded on the HP machines. Both companies want to own the enterprise. It’s apparent that the two feel this can only be done by having a deep cloud-based infrastructure that bundles a full suite of software and tools to optimize systems for business customers. Stacey Higginbotham of GigaOm makes an excellent point in asking if optimization is the new code word for proprietary systems. There’s a danger in that for customers as it can lead to vendor lock-in. But Microsoft and HP obviously see a need to form their own partnership to compete with the likes of Cisco, which has a deal with VMWare. Oracle, for its part, is still waiting for approval on its deal with Sun Microsystems. Enterprise customers should be wary of these mega deals. The castle in the cloud may look nice but the enterprise customer may find itself in the dungeon if it makes too heavy an investment in proprietary systems that lock them into specific vendors. Discuss

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Microsoft and Hewlett-Packard Deal: The Cloud is not Cheap

Entrepreneur Eric Ries, who previously co-founded the 3D avatar-based chat client IMVU , is also widely credited with coining the phrase ” lean startup ” in 2008. Ries recently gathered as many resources as he could muster for lean startups and shared them on his blog, Lessons Learned . A lean startup is one that takes advantage of open-source technologies and other products to push a product to market at a “low burn,” while at the same producing continual revisions to its product based on customer feedback. Ries provides a wide consortium of links to wikis , mailing lists , meetups , and bloggers all focusing on the lean startup initiative – a collection of great value to any startup that wants to lower costs while feverishly iterating their product. Sponsor Ries, who is often invited to speak about lean startups, says that this type of development is what helped IMVU achieve its loyal following. Timothy Fitz, a software engineer at IMVU, says the developers average 50 new code iterations per day. “That’s 6 deploys an hour,” writes Fitz on his blog . “Even at that pace we’re often batching multiple commits into a single test/push cycle.” The inspiration for this new methodology? Ries says it came from books like Lean Thinking , which outlines ways companies can reduce waste and boost revenue, but Ries is quick to point out that a lean startup and a lean company are two different things. According to Ries, lean companies attempting to trim the fat are striving to create value for their customers, but value is not the foremost goal for the leaning of startups. “Lean startups operate by a different standard,” says Ries. “I suggest they define waste as ‘every activity that does not contribute to learning about customers’.” Photo by Flickr user Usodesita . Discuss

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Built For Speed: Turn Your Startup Into A Lean, Mean Iterating Machine

The first quarter of 2010 could see a higher number of investments by venture capital firms than the fourth quarter of 2009, according to figures from new reports by the National Venture Capital Association and information and data services company ChubbyBrain . Data from a report relased by the NVCA yesterday shows that the fourth quarter of 2009 saw a growth of $1.7 billion in venture funds over the previous quarter, similar to numbers seen from Q4 2008 to Q1 2009. Data released today by ChubbyBrain shows that following the earlier growth in venture funds, Q2 2009 saw a $1.4 billion increase in VC investments, a trend that could mean big bucks for startups in the first quarter of 2010. Sponsor As we reported last week , 2009 was a difficult year for startups and venture capital firms, with venture-backed mergers and acquisitions continuing a downward trend in 2009. Carolynn Duncan, founder and director of the startup incubator Portland Ten , says that the “pressure crunch” of 2009 caused VCs to give prospective startups more than the third degree. “It was more like the fifth degree,” Duncan told ReadWriteWeb. “It was so intense, even for the companies showing great traction and that had bootstrapped the hell out of their project.” Duncan believes that as the new year kicks off VCs that raised funds at the end of 2009 will be looking at a new class of startups to invest in. When asked if 2010 would be an easier year to find funding, Duncan was hesitant, but optimistic. “I don’t think ‘easier’ is the right word, maybe just not as demanding,” she said. “People are just glad its 2010 and not 2009 anymore.” Photo by Flickr user borman818 . Discuss

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New Year’s Resolution? VCs Could Spend More In 2010

For young budding entrepreneurs approaching graduation this spring, or for those looking to go back for a post-graduate degree, finding the right program for your needs is very important. In their seventh annual joint effort last fall, Entrepreneur Magazine and The Princeton Review teamed up to rank the top 25 undergraduate and graduate entrepreneurship programs in the United States. Only six programs managed to make the top 10 in both lists, securing their spots at the top of the best overall entrepreneurship programs. Sponsor #1. Babson College – Babson Park, MA Finding themselves in the top spot of both top 25 lists is the Arthur M. Blank Center for Entrepreneurship at the F.W. Olin Graduate School of Business at Babson College . Babson’s entrepreneurial programs boast the largest enrollment by far of any of the top schools with over 3,300 total enrolled students, and offers undergraduates a total of over $300,000 in scholarships. #2. Drexel University – Philadelphia, PA Drexel’s undergraduate program of the Laurence A. Baiada Center for Entrepreneurship is rated sixth best, but the university’s third-ranked graduate program at the Bennett S. LeBow College of Business has boosted them into the number two spot overall. Drexel offers the most money in scholarships out of the top six, providing $350,000 for both undergraduate and graduate students, and claims that 100% of their faculty are entrepreneurs themselves. #3 (Tie). University of Arizona – Tucson, AZ The entrepreneurial programs at the University of Arizona are the most exclusive clubs on this list, enrolling just 100 undergrads and 50 graduate students in it’s McGuire Center for Entrepreneurship at the Eller College of Management . With $120,000 available in scholarships and low enrollment figures, entrepreneurs at Arizona have an excellent chance at receiving financial aid. #3 (Tie). Temple University – Philadelphia, PA

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Top 6 Colleges with Entrepreneurial Programs

We love site-building and story-telling applications, and social webizens love sharing their content – particularly multimedia content – in new and compelling ways. YouTellYou is a fun and simple tool that allows users to grab, annotate, tag and share their pictures in an online magazine-type format. Users can pull in photos from Smugmug, Facebook, Flickr or one’s own computer, then go to town in a frenzy of sequences, captions and true pictorial story-weaving. Sponsor In about 10 minutes, we created this story about SxSW 2009 . We were able to get access to all the needed Flickr photos through a simple interface. Pics were then organized into layouts of one or two photos per section with optional captions for most layouts. When we published, we were pleased to see links with each photo to enlarge it or to find the original URL for each pic. The finished product also has a thorough commenting system and the option to share zines via email and Twitter. Our wishlist for this app would be a drag-and-drop interface for pulling photos into the magazine, Facebook Connect for easier account creation, some kind of theming for finished zines, the ability to add photos from other users and the ability to reblog or share the content we created in more ways. Finally, the site navigation and overall design needs improvement; however, for a free app with no advertising, we can’t complain too much. We’re torn on whether we personally would use the app again – for most on the RWW team, it’d be worth the effort to just build a webpage from scratch. But for end users, this kind of tool is indicative of a trend for amateur content creation and sharing in more polished ways than a simple Flickr slideshow or Facebook set. What do you think – would you use YouTellYou to tell a story with your photos? Let us know what you think of the app in the comments. Discuss

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Make Your Own Online Magazine From Your Flickr/Facebook Photos With YouTellYou

The smart phone is not a phone. It’s a computer. It’s like your desktop or laptop. It stores data. It connects to the Internet. It runs applications. It’s a computer, not a phone. The real challenge for the enterprise is to shift its thinking about how it will move beyond the carriers and one day become an entirely data-centric organization – an organization that gives information workers the ability to work entirely on an IP infrastructure, be it for Web-based productivity applications or on a VoiP network. Forrester Research issued a report today that calls 2010 the year of the smart phone. That seems pretty obvious, doesn’t it? To its credit, Forrester does use the report as an opportunity to explore how the enterprise can make the smart phone a part of the daily work life for as many employees as possible. Sponsor There are many reasons for the enterprise to adopt a smart phone culture: There is no excuse anymore. Workers have to be connected. The big weave on the social Web is getting richer. Billions of threads are being added by the day. How can we even tolerate not being connected? Collaboration depends on being connected. You can’t be fully connected without a decent smart phone strategy. People are not working at the office as much anymore. They need a smart phone to keep up with their work. As illustrated by Forrester, the trend is already in play: It does not have to be that expensive to adopt a smart phone culture. People want to use their smart phones for both their personal lives and work, too. They will pay for their data plans. Forrester agrees. From the executive summary by Ted Schadler: “Employees, aka consumers, are mad about smartphones, attracted by the ability to email, collaborate, and work with documents from anywhere. Fourteen percent of information workers across the US, Canada, and UK already use smartphones to do work today, and another 64% would like to. That demand, coupled with the willingness of some employees to share the cost of a monthly mobile plan, sets the stage for a surge in the use of personal smartphones for information work. Information and knowledge management professionals should immediately call for a formal bring-your-own (BYO) smartphone strategy, establish a sliding scale for when to reimburse employees, and pressure mobile carriers to cut costs across corporate-liable and personally liable plans.” Forrester’s BYO recommendation makes sense. But he does not explore how smart phones can be treated as computers. This discussion can create a new level of discourse in the enterprise between IT and business users. Forrester points out that IT recognizes the importance of smart phones. Many companies are already developing policies for how the devices should be treated. Collaboration tool are not being heavily used but this could change if smart phones were treated as tools as much as communication devices. MobileIron follows this approach, offering services that give IT managers the ability to be more like change agents than police forces. In MobileIron’s view , information can be tracked with a data-centric approach. Applications can be monitored. Users and administrators can view a social graph that shows usage. That’s a smart approach. It stimulates thinking and moves people to start exploring how a fully data-centric approach can be adopted over time as VoiP matures in the enterprise. Discuss

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"Smart Phone" is a Misnomer: It’s a Computer, not a Phone

In a world where emails, phone calls, texts, and Tweets constantly bombard us, it is getting harder and harder to manage the firehose of data and information being thrust our way. For young companies to succeed this environment, it is imparitive they become organized and efficient lest they fall behind and quickly become overwhelmed. While there is no shortage of online solutions, it can be hard to know which one is the right tool for the job, so here’s a list of five web applications to help kick-start your company and keep it organized without breaking the bank. Sponsor Google Apps – Google’s collection of web apps includes solutions for corporate email accounts, calendars or contacts, but its best use for a new startup is with document sharing. Using Google Docs to collaborate on text documents, spreadsheets or even presentations is far more efficient than sending a file in an email attachment. In recent years, Zoho has become an increasingly competitive enterprise alternative to Google, even adding integration with Google Apps . Zoho has also introduced more features that help it stand out against Google Apps, including their own CRM solution that aims to compete with Salesforce.com . Basecamp – We here at ReadWriteWeb use Basecamp on a daily basis for managing ongoing projects and reviewing edits of our stories. Developed by 37signals , Basecamp offers a great interface with an easily read dashboard of the latest activity, as well as to-do lists, milestones and email alerts. For the on-the-go entrepreneur, there are a handful of mobile Basecamp apps ranging in features and price. Personally, I recommend using Insight for iPhone , which was rebranded from Encamp and recently recommended by 37signals . Dropbox – Whether it’s large financial spreadsheets, or Photoshop mockups of your website-to-be, you are going to need somewhere to store all your files. Dropbox makes all of these easy and relatively inexpensive, offering up to 100 GB for $20 a month. But it’s not just storage. Dropbox can automatically sync with folders on your desktop, creating an offsite backup of your vital startup files in the cloud, which any member of your staff can access. An alternative solution would be to use Box.net , however their pricing plans are higher than Dropbox’s and are aimed at larger corporations. Dimdim – The next time you find yourself struggling to explain an intricate concept to your coworkers through a text document or presentation, check out Dimdim and use the power of screen-sharing to make your point crystal clear. One of Dimdim’s best features is that their product works entirely from within your web browser without the need to download or install any extra software. Screen-sharing services like Dimdim can save a young company hundreds if not thousands of dollars in travel expenses by providing a much more efficient way to meet and share information. Also a notable service in this space is Citrix’s GoToMeeting . However, like Box.net to Dropbox, its pricing is much higher than Dimdim’s. MindMeister – Between the last two semesters of graduate school, I worked on a collaborative ten-week reporting project, and used online mind-mapping app MindMeister extensively to stay organized. The application is a great way to keep those more abstract ideas organized in an easy-to-understand way. Countless startups have mapped out their product ideas and business plans on giant whiteboards, and now the whiteboard has gone digital. MindMeister makes it easy to create and share mind maps and flow charts, and best of all, its free to get started. Photo by Flickr user simax . Discuss

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5 Web Apps To Keep Your Startup Organized