This is just too good to resist mentioning.  From the Microsoft press release:

“The vendor has now acknowledged that a portion of the code they provided was indeed copied. This was in clear violation of the vendor’s contract with the MSN China joint venture, and equally inconsistent with Microsoft’s policies respecting intellectual property.”

Apparently they stole the code, look and operation from Plurk (self proclaimed as “Asia’s #1 Microblogging Service”). Plurk, of course, expressed extreme moral outrage:

“… Microsoft had just launched a new Chinese microblogging service that looked eerily similar to Plurk. Needless to say we were absolutely shocked and outraged when we first saw with our own eyes the cosmetic similarities Microsoft’s new offering had with Plurk. From the filter tabs, emoticons, qualifier/verb placement, Karma scoring system, media support, new user walkthroughs to pretty much everything else that gives Plurk its trademark appeal, Microsoft China’s offering ripped off our service.”

They even include pictures to drive home their point.

One would think that Microsoft had been dealing with Chinese outsourcing vendors for long enough to be alert to these sorts of “issues.”  I can’t help but wonder whether there is more to this story than we’re hearing.  Perhaps there is some sort of cozy relationship between MSN China staff and the unnamed vendor…?  Has anyone heard who the vendor was?

Technorati Tags:  China, China Outsourcing

Those of us in the west that have been blasted by iPhone mania forever, may have forgotten that, until today (well, yesterday), the device was only available in China via the gray-market.  There used to be anecdotes floating around regarding profitable side businesses based on buying iPhones in the US, then carrying a dozen, or so, over on each visit.  As with all such things, there was a shadow industry of small shops and mini-distributors that would pay couriers a healthy premium for the devices, then turn around and resell the much in demand iPhones.

The iPhone is now officially available in China, but it’s pretty expensive (6,999 yuan / US$1,024 for the 32GB 3Gs).  Perhaps there will still be a market for “unofficially imported” devices, but that’s not the main point of interest for me.  My big issue is, will the availability of the fully sanctioned iPhone and China App Store result in a positive bump for app sales?

For more on what my other company is doing in the mobile software world, please visit our Mobile Perspectives blog.

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Technorati Tags:  iPhone, iPod Touch, Apple, mobile, China, China Outsourcing

I’ve been planning to write about VanceInfo (NYSE: VIT) for a couple of weeks, now.  They’ve been in the news quite a bit lately.  The company recently announced that it had

“…acquired the operating subsidiaries of TP Corporation Limited (”TP”), a Hong Kong-headquartered provider of Customer Relationship Management (”CRM”) solutions and call center services.”

Apparently, they paid US$1.1M, along with some promised payments contingent on future performance.  That seems like a pretty good deal for a company that reportedly had revenues of US$3.9M for the first five months of 2009.

“Headquartered in Hong Kong, TP develops and markets customer care software products in China and Southeast Asia and provides call center outsourcing services in Hong Kong. With over 25,000 CRM software licenses installed, TP helps its clients in telecommunications, financial services and government sectors to automate customer operation, support and management.”

I’ve long believed that the China outsourcing market was ripe for consolidation.  Perhaps VanceInfo is finally starting to get more serious about being the big dog, especially when we consider the next announcement.  According to a recent AP story that I noticed on Forbes, the company plans to offer 5.4M shares at $11 per share in a follow-on offering.

VanceInfo’s IPO priced at US$8.50 in late 2007, but the stock traded below US$5.00 per share several times in 2008 as well as earlier this year, so US$11.00 seems like a pretty good price.

As with all such things, it pays to look a bit beneath the surface.  According to the report in Forbes:

“Of the shares to be sold, 300,000 of them will be sold by VanceInfo, and 5.1 million will be sold by selling shareholders.  In addition, the underwriters have been granted an option to buy up to an additional 814,435 shares over the next 30 days to cover possible over-allotments.”

Unfortunately, this suggests that the sale could add less than US$3.5M to the company’s coffers, while allowing existing shareholders — most likely early investors and executives — to take more than US$55M off the table.  Oh well, the US$3.3 more than covers the upfront cash required to close the TP deal.

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Technorati Tags:  China, VanceInfo, China Outsourcing

You have to love this story.  The legendary Hummer brand may soon be based in Chengdu, under the ownership of Sichuan Tengzhong Heavy Industrial Machinery Co.  My first thought is, YAY for Chengdu.  My second thought is more along the lines of, “What a strange world seems to be emerging from this recession…”

In an interesting twist on the outsourcing battles,

“GM will continue producing Hummer H2 and H3 trucks and SUVs at plants in Louisiana and Indiana for the buyer.”

 
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Technorati Tags:  China, China Outsourcing, Chengdu, Hummer

When I was consulting with western companies I always advised my clients to be cautious about dealing with Chinese State Owned Enterprises (SOE).  In fact, I generally urged them to steer clear because SOEs are well known to make decisions for political reasons that may be contrary to the best interests of the business.  Further, SOEs rarely have any particular motivation to “play ball” with their western partners.

With that context in mind, I’ve watched the U.S. nationalize broad swaths of the financial industry, and now the government is taking over automobile manufacturing.  This story was all over the media today, but I like the WSJ, so I’ll quote from their report:

“… plan that would give the U.S. government a 72.5% stake and keep the auto maker closely held for as many as 18 months.

The government is set to boost its support for GM by as much as $50 billion through a bankruptcy filing that could come Monday.”

The only U.S. made cars that I’ve owned since 1980 were Fords (and that was some time ago – gotta love the F-250 4x4), so I guess that I can take some comfort in that.  Anyway, we’re now in a position where major chunks of our financial system, and our “too critical to fail” manufacturing infrastructure are, effectively, SOE’s.  Maybe, in the 21st century, our government is taking its lead from China.  Given the relative performance of our two economies, maybe it’s not such a bad thing, but it’s tough to accept for a guy like me, who learned about business way back in the 20th century.

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Technorati Tags:  China, Nationalization

RingDance, provides a soothing audiovisual encounter with eight brightly colored rings dancing on your iPhone™ or iPod touch™.  When the rings touch, they exchange colors and produce a gentle sound.  The calming melodies from the dancing rings create a relaxing environment that enables you to either focus your thoughts, or completely surrender to the otherworldly music.

Readers of this blog will, of course, understand the significance of the eight rings.

RingDance is available on the App Store.

Technorati Tags:  iPhone, iPod Touch, Apple, mobile, iPuck, iPunt, RingDance

Find iPhone apps at AppStoreHQ

According to an article in the Wall Street Journal,

“The Cleveland Cavaliers have signed an agreement with an investment group from China to become minority owners of the NBA franchise and its arena, a partnership that could affect superstar LeBron James’ future with the team.”

Apparently the group could end up owning as much as 15% of Cavaliers Operating Company, the entity that owns the team and operates the ironically sponsored “Quicken Loans Arena.”

The story suggests that the expanded marketing opportunities in China could help keep LeBron James in Cleveland after next summer, when he will be eligible to become a free agent.

I have two comments.  First, anybody who wants to argue that (h/t to Thomas Friedman) the world is not flat should ponder the implications of this story.  Second, I’m an old guy, so I remember a time when groups from Japan were buying lots of overpriced American assets of questionable real value.  That didn’t work out so well.  Why is it always entertainment related stuff that turns out to be such “interesting” investments for the newly wealthy (Pebble Beach, Rockefeller Center, …)?

In other news, we are waiting for our newest app to be approved for sale on the Apple App Store (it should hit this week).  Version 1.0.1 of iPuck should also hit this week.  (We hope…)

Technorati Tags:  China, iPhone, iPod Touch, Apple, Mobile Perspectives, BluMtnWerx

I sincerely apologize for neglecting this blog.  My only excuse is that I’ve been completely consumed by a new venture.  A small group of us recently founded a company to do software development for mobile devices.  Software and software engineering was my first love, and this is an exciting opportunity to get back to actually building some interesting products for a new computing paradigm (bet you haven’t seen that phrase for awhile - shows how old I am).

The new group is BluMtnWerx.  Our first two iPhone / iPod touch apps, iPunt and iPuck are now available on Apple’s App Store here and here (links will take you right to the iTunes App store).

Find iPhone apps at AppStoreHQ

Find iPhone apps at AppStoreHQ

iPunt is a 3-D immersive environment that is impossible to categorize.  You kind of have to play it for yourself to get the idea.

iPuck is a casual arcade game that involves using your ring to guard your goal while trying to smack the puck into the opponent’s goal.

We have a third app in its final testing stages and we’re planning on a major upgrade for iPunt in the very near future.

By way of apology for my long silence, I have a handful of app promo codes left that I’d be happy to share with “Go East” readers.  Just get in touch with me - first-come, first-served.  All that I ask is that you take a couple of seconds to give us a rating on the app store.

I’ll certainly continue to post on this blog, but the majority of my new writing will be on the BluMtnWerx Mobile Perspectives blog, so please check there if you’re interested in my most up to date ranting.  Also, I’m trying to drum up followers on Twitter, if you’re using that strangely popular service - http://twitter.com/deansx

Technorati Tags:  iPhone, iPod Touch, Apple, Mobile Perspectives, BluMtnWerx

Another plug for my favorite city in China.  The Wall Street Journal is reporting (sorry, subscription required) that:

“Intel Corp. said Thursday it will move its Shanghai chip-testing and assembly operations to Chengdu, a city in southwestern China, in line with efforts to shutter plants and cut jobs world wide as the chipmaker tries to cope with the global economic slowdown.”

Apparently, the move will displace approximately 2K workers in Shanghai.

I’m telling you, Chengdu is the place to be!

Technorati Tags:  Chengdu, China, China Outsourcing

I know that Yahoo management isn’t really a China outsourcing issue, but I couldn’t resist commenting on this bit of management wizardry.  The Silicon Valley Business Journal reported on some curious tensions (subscription may be required) between their new CEO and the diehard “Yahoos.”  Apparently, someone is in for some culture shock:

“…a reported offer made by new CEO Carol Bartz Friday to help pay a $1,000 bounty for information on who in the Sunnyvale company is leaking information to the press.”

That has to really be a motivator to those clinging to the freewheeling Yahoo work-style!

Continuing,

“…Bartz was critical of employees showing up late for meetings and for using the word silo to describe how units of the company operate.”

I know that Ms. Bartz needs to make her mark on the company, but are these really the kinds of issues that she’s going to take on?  What kind of message does she imagine the battered “Yahoos” that haven’t managed to abandon the ship, yet, will take from her $1K bounty?  Did this kind of stuff really work at Autodesk?

Curious…