Interesting piece in USA Today on declining credit card use:

Credit card usage is slowing. Revolving credit largely made up of credit card debt fell by nearly 20% in November, the largest drop on record, according to the Federal Reserve, reflecting less borrowing by consumers and banks' tighter lending standards. Through October, the number of new credit card accounts was down 46% from the same period in 2008, according to Equifax.

But abandoning credit cards is a much more radical step than using them less. Consumers who don't own a credit card often have a hard time renting a car. Some hotels won't book rooms to travelers who want to pay with a debit card or cash. Those that accept debit cards may place a hold on several hundred dollars in the customer's bank account, which could cause checks to bounce. And many consumer experts say that responsible use of credit cards is one of the most effective ways to build a good credit record.

It will be interesting to see what the long term implications of this will be, because I sense a lot of people now run with the baseline perception that banks and credit card companies exist only to screw their customers.

The web is becoming more dynamic, context-aware and personalized by the day, and the amount of information consumed by each person is increasing exponentially. But while hardware performance is improving, except when it comes to the simplest of parallel programming tasks, software infrastructure is not keeping pace. We need to develop new data processing architectures ones that go beyond technologies like memcached, MapReduce, NoSQL, etc.

Think of this as a search problem. Traditionally, there was an index of every document in which every word occurred. When a query was received the search engine could just look up the precomputed answer to which documents had which word. For a personalized search, an exponentially larger index is needed that includes not only factual data (words in a document, brand of cameras, etc.) but also taste and preference data (people who like this camera tend to live in cities, be under 40, love Napoleon Dynamite, etc.).

Unfortunately, personalizing along 100 taste dimensions leads to nearly as many permutations of recommendation rankings as there are atoms in the universe! Obviously there isn't enough space to precompute what recommendations to show every possible type of person that queries a site. Additionally, precomputing the answer to queries is too slow. People expect real-time results, not hours- or days-old precomputed answers. If I tell Amazon I don't like a book, I want to immediately see that reflected in my recommendations.

We're at a turning point in how we need to build web sites to handle these sorts of personalization problems. While first-generation distributed systems split the application into three tiers web servers, application servers and databases second-generation systems build large non-real-time back-end clusters to analyze huge amounts of sales data, index billions of web documents etc.

A third generation of systems is now emerging, with the computation shifting from those back-end clusters into front-end real-time clusters. After all, you just can't build a back end that precomputes personalized results for millions of Internet users. You have to compute it in real time.

Adding complexity, many personalization problems are more difficult to parallelize than a lot of traditional back-end applications. Indexing the words in web pages is actually a lot easier to parallelize than are the long sequence of matrix calculations required to optimize a user's recommendations.

Matrix calculations tend to involve complicated data access patterns that mean it's hard to partition calculations and their data across a cluster of computers. Instead there tends to be a lot of sharing among many different computers, each of which holds a piece of the problem and updates the others as data changes. This back-and-forth data sharing is both incredibly hard to keep track of for the programmer, and can significantly degrade application performance.

The systems we've built at Hunch to solve this started off using distributed caching with memcached but very quickly veered into something more akin to distributed shared memory (DSM) systems, complete with multiple levels of caching, coherency protocols with application-specific consistency guarantees and data replication for performance. With an abundance of processing cores at our disposal, the real challenges tended to revolve around getting the right data to the right core.

I think that in a few years we'll look back at this time as an era in which a slew of new large-scale programming challenges and their solutions were born. Hopefully we'll also see more open-source solutions along the lines of memcached and Hadoop, so that building personalized and real-time web applications is easy for everyone.

Tom Pinckney is the co-founder & VP of engineering of Hunch.com.

Related GigaOM Pro content:

• What's Next for the Cloud? Distributed Architectures
• Infrastructure Winners and Losers of 2009

The big project fails, the company begins to struggle and before you know it, the board of directors replaces the management team. Sound familiar? But crisis doesn't have to spell the end of the company itself.

Most companies and teams in turnaround situations focus on the obvious and important factors of balance sheet, cash flow and net income health. Teams also usually get to work quickly on market analysis that ultimately results in new product and business strategies. These actions are almost always necessary, just not always sufficient. Here are four often overlooked tactics that, if successfully employed, are critical to rapidly and successfully turning around a struggling enterprise:

1. Facilitate Closure - When a team has been through an extended period of hardship, it needs a sense of closure before it can start moving forward again, and closure is often best facilitated through a cathartic event that symbolizes the end of the perilous and painful journey. But while closure commonly necessitates letting a person or team go, don't rush to find a fall guy. Be very precise about identifying what was holding the company back it could just as easily have come in the form of an ineffective process or out-of-date strategy. Approach its removal the way you would a tumor: Excise carefully, and be wary of damaging any healthy surrounding tissue.

2. Set a Vision - According to intentional change theory, there are five steps to achieving sustained desired change. The first is to identify the ideal self, which for an organization is usually embodied in a collective vision consisting of its members' dreams (to be recognized as the best in the industry? world domination?), their desired future (market penetration? profitability?), and their strengths or values (high quality? extraordinary customer care?) Identify these in order to establish a shared vision that resonates with each team member on a deep, even emotional, level.

3. Find an Enemy - The easiest way to solidify an us is to identify a them. As Tajfel and Turner's social identity theory makes clear, people need to be part of a group, but in a company the result is often conflict between groups. The conflict that most often occurs in a crisis is affective and role-based and therefore often negative and value-destroying. There is no better way to rally the troops than to embody the fight with an external nemesis. Identify for your team an enemy outside the company and focus on beating or staying ahead of it, using everything from its press releases to its product launches to spur the team into action.

4. Tend the Garden - In our recently published book, The Art of Scalability, we talk at length about how leadership is like gardening. Leaders must hire or seed the team with the right people and mentor its members just as gardeners feed their plants. And when team members aren't working out, they need to be weeded out.

The time period between Microsoft's release of its XP desktop operating system and Vista marked the longest in the company's history between product launches. Jim Allchin, Microsoft's co-president, admitted in a Wall Street Journal interview to telling Bill Gates at one point that It's not going to work, describing the development as crashing to the ground due to haphazard methods of feature integration.

To recover from this, Microsoft enlisted the help of senior executive Amitabh Srivastava, who rooted out the process that was holding the project back. He then had a team of architects establish a development process that enforced high levels of code quality and reduced interdependencies. Once the new process was in place, the vision was set for what was ultimately a successful product launch, at least in terms of getting the product out the door and meeting the expected sales volumes.

There are entire books and domains of research dedicated to turning around failed projects and distressed teams. This list is in no way all-encompassing but if you are ever faced with the daunting task of turning around a team, these four tasks will be critical to its success.

Instapaper's iPhone app is going to be great on this thing.

If you don't like the prices in Apple's iBook Store, just use Amazon's Kindle app on the iPad.

No 3G? No contracts? (Might be saving this for last/later.)

I'm looking on the photos of this thing and there doesn't seem to be a camera, video or otherwise.

The iPad appears to be a device that you use sitting down. Can you type on it while holding it standing up?

Ok, there's 3G. $15/mo for 250 MB of data. $30/mo for "unlimited".

iPad is unlocked. International SIM cards "will just work".

Price: $500. Boom. That's for the low-end model with no 3G.

Ooh, keyboard dock. If they could outfit that with a hinge and some sort of latching device, I wonder what that kind of thing would look like? (Will the keyboard work with the iPhone -- er, iPad nano -- as well?)

Will there be an iBook Reader/Store app for the iPhone?

Oh, from earlier: Jobs repositioned Apple as a "mobile devices company".

Right at the end, Jobs showed a street sign marking the intersection of "Technology" and "Liberal Arts". I guess that means that kottke.org is now in direct competition with Apple, Inc. YOU'RE GOING DOWN, STEVE!

By Senior Editor Kris Smith (@croncast)

While I'm riding this photo wave I thought I would throw out a post for the coders in the house. I am an unabashed supporter tow things RSS and Flickr. When they are both put together they make a magnificent pair.

To demonstrate why they are such a great pair together I put together a bit of code that can make working with Flickr photos a breeze. It is the same code that I wrote that made its way into the self-hosted life streaming software SweetCron.

It is written in PHP but those that do real coding for a living can take a look at it and get the concept pretty quick. With that being said, I will make even easier by pointing out that due to a good naming convention that Flickr uses to organize photos by size it is possible to access all of them quickly without using the full tokenized API. Which, btw, requires more pings to get the same data the feeds offer.

We'll use the PHP function simplexml_load_file to get access to the photo goodness that is resting in the feed. The RSS feeds from Flickr are in a standard format so the code below will work with any of them. However, it won't work for the Atom feeds. I'm sure you could get crazy and figure out an Atom hack if you wanted. Good luck.

Here's how it can be done with PHP and a Flickr user feed:

$feed = simplexml_load_file("URL_to_Flickr_Feed");

// Check to see if the response was loaded, else print an error
if ($feed) {
$results = '';

// If the response was loaded, parse it and build links
foreach($feed->channel->item as $item) {
$media = $item->children('http://search.yahoo.com/mrss/');

// Photo Thumbnail
$sPhoto = $media->thumbnail->attributes();
$url = (string) $sPhoto['url'];
$width = (string) $sPhoto['width'];
$height = (string) $sPhoto['height'];
//

// Photo Medium (500 px wide standard)
$mphoto = substr($sPhoto, 0, -5);
$mphoto = $mphoto . "m.jpg";

// Photo Large (original size)
$lPhoto = $media->content->attributes();
$lurl = (string) $lPhoto['url'];
$lwidth = (string) $lPhoto['width'];
$lheight = (string) $lPhoto['height'];
$lphoto = substr($lPhoto, 0, -5);
$lphoto = $lphoto . "o.jpg";
//

echo $sPhoto; // thumbnail url
echo $mphoto; // medium size url
echo $lphoto; // large size url

}
} else {
echo "Broken Feed";
}

Hopefully this will give someone a jump start in how to transfer large images quickly, say between a photo journalist and an editor half a world away without having to make any other tools than a special XML feed from the Flickr feed. Literally for the $24.95 yearly fee to use Flickr Pro it could be used as a global syndication system.

In the right hands this way of working with Flickr feeds could yield great hacks for devices like the Chumby. Take it one step further for use in digital picture frames as playlists that can be embedded or run from memory cards. I'm just saying these are possibilities.

DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/0

PHP simplexml_load_file for Photos is a post from: TechStartups.com

Running your own small business has plenty of perks: you can set your own hours, work from home, and there's nary a TPS report in sight. But there are also a number of downsides, not the least of which is the fact that you have to take on role of your business's accountant. That means keeping tabs on business expenses, filing taxes four times a year, and plenty of other headaches. Cue Outright.com, a startup launching out of beta today that looks to be the absolute simplest online application for small business back office tracking, accounting, bookkeeping, and more.

Getting started with the site is quite easy, because Outright has recently partnered with a number of financial services: you can import invoices from Freshbooks, receipts from Shoeboxed, your PayPal transaction history, as well as your credit card transactions through a deal with Expensify, which supports 94% of US credit cards. You only have to do this once once you've linked your account, they'll keep automatically updating until you unlink them.

Once you're done with the initial setup, everything on Outright is fairly self-explanatory (which is sort of the idea). The home screen presents you with a chart pitting your costs against your income to give you an at-a-glance look at your business's health. At the top of the screen you'll see tabs for Income, Expenses, Taxes, and Reports, where you can hone in on the transactions you're looking for. Transactions are automatically sorted into different categories (for example, the site knows that your airline's tickets belong under the Travel' category), and you can also generate reports on a per-customer basis, which would be helpful for eBay sellers. Beyond that the application helps with taxes by offering reminders when a deadline is coming up and an estimated amount that you'll have to pay.

Outright isn't as robust as some other financial services out there, but if you're looking to keep things simple it's certainly worth a look. The company was formerly called GoBoostrap.com, but changed its name in conjunction with news of its $2 million funding in February.

Crunch Network: MobileCrunch Mobile Gadgets and Applications, Delivered Daily.

Neale S. Godfrey, author of the book Money Doesn't Grow On Trees, writes: "Kids don't get it if you don't talk about." Mr. Godfrey is talking to people like me, and if I don't start listening, I'm going to have a big problem on my hands. My four year old daughter is a born shopper. And, as the Co-Founder of a company fighting everyday to bring sensible saving back into the public consciousness after decades of absence, I often worry that I enable her in the very habits I'm encouraging SmartyPig customers to break.

Like most couples these days, my wife, Sara, and I have been engaging in serious discussions regarding money. How we spend money. How we save money. How we use credit. We are pretty normal in that these conversations, while productive, aren't all that much fun. That said, we force ourselves to sit down and talk about money and we are pretty diligent about maintaining healthy attitudes about spending and saving. But when it comes to how we use money with regard to our daughter, all common sense flies out the window.

Our daughter has a piggy bank. And while it's our pocket change that goes into it, she understands the value of what we put in it and that she is rewarded when it fills up. We also require that she perform simple tasks around the house for which, when a series of days are filled in as "complete," she gets a reward. If she plays her cards right, does as she's told, and is patient, she usually ends up with a "treat" every few weeks or so. Problem is she never stops wanting or asking for the most trivial things, and we end up like this episode of Dr. Phil - indulging her whims, rather than being responsible parents who model fiscal fitness.

I tell my wife, "It has to stop." Then I tell her again the next time and the next. But I'm just as guilty as she is. From my perspective, these little treats are almost immediately disregarded and considered "junk." If I sound frustrated, it's because I am. Our unplanned spending on small gifts for our daughter has gotten totally out of control. But it's easier to just go with it than to say no. Who doesn't want a smile and the baby blues? But what are we doing to her as a result? What kind of habits are we teaching her? Every other aspect of her life is meticulously dissected. We are completely focused on turning this healthy, intelligent, productive kid into a healthy, intelligent, productive adult. Why can't we be the same when it comes to teaching her about money?

A recent issue of Better Homes & Gardens offered us three easy tips to begin the process of taking control:

1. Don't Forget Who's In Charge - Marketing machine or not - and good God if there isn't a Disney princess on everything! - You can say "no."
2. Talk About Spending Decisions - Don't lie and say, "I can't afford it." Explain priorities - even to four-year-olds.
3. Hand Some Over - Give your kids the power. Let them make the transaction. Let them see the difference between need and want.

So, can Sara and I do this? Do we need a chart that we make an "X" on every day we don't wimp out and take the easy road? From time to time, I'm going to let you know how it's going. And, of course, time will tell. We at SmartyPig are spending a lot of time these days discussing money and children and families. And while I pride myself on being a good listener, this is one conversation I'd really like to begin truly contributing to.

And I'd like you all to contribute as well. I'd love any tips you might have or anecdotes about your successes or failures in teaching your kids smart savings habits, just send them here jgaskell(at)smartypig(dot)com. We may even feature your ideas or stories on our blog. Thanks!

From the "Social Marker" blog post:

When I visit San Francisco I am always surprised how often the name of my friend, Robert Scoble comes up in random conversation, unprompted by myself. Why is that? Why is he so well known? Is his blog REALLY that good? Is he REALLY that smart and interesting?

Well, I could give a whole stack of reasons to explain why I think Robert's success is well-deserved. But one major reason that his blog's traffic is so high, and his name so well-known, is that his personal brand has somehow managed to become a Social Marker inside the Silicon Valley ecosystem. The same could also be said for Mike Arrington, Loic Le Meur or Mark Zuckerberg. Dropping their names into random conversations allows people to quickly and efficiently contextualize themselves.[Thanks to @scobleizer and @arrington etc.]

Filed under: Home Entertainment, Portable Video

Disney to offer films on microSD cards, consumers to pass on by originally appeared on Engadget on Wed, 22 Jul 2009 10:48:00 EST. Please see our terms for use of feeds.