Competition for Tech Talent is Red Hot

Despite the incredibly soft labor market, the competition for tech talent has been increasing, and it shows no signs of slowing down.  The robust growth in the tech jobs has pushed the sector-level unemployment rate to below 4 percent, which is less than half the overall unemployment rate. Based on a survey of 900 recruiters and managers responsible for hiring, 65 percent said that they plan to hire more tech professionals in the latter half of 2011 than they did in the first.

With an unemployment rate below 4 percent, the demand for qualified technology professionals is red hot. Positions will remain unfilled for months at a time because of a shortage of qualified professionals. A majority of those surveyed said that the amount of time it takes to fill a job opening is getting longer, and of those, 63 percent say this is a result of a lack of qualified applicants. Shortages in tech talent affect some regions more than others, and respondents in the Northeast and Midwest in particular were aware of severe talent shortfalls. Over two thirds of hiring managers and recruiters located in these two regions had hired individuals from outside the local talent pool in order to fill open positions. Certain positions have been more difficult to fill than others including those in Java, .Net, mobile development, SAP, and Sharepoint.

The fierce competition for IT professionals has lead to increasing pay. 47 percent of the respondents said that pay was significantly or slightly increasing. More companies are recognizing that IT professionals are the key to improving efficiency, unlocking innovation, and building and integrating an increasing mobile work environment.

34 percent of recruiters plan to utilize outside resources in an effort to find qualified talent to fill positions. One of the primary factors that recruiters are looking for is experience, and a majority of recruiters are looking for applicants with six to ten years of experience. With the economy remaining sluggish, companies are using idle capital to transition over to the cloud and embrace an increasingly mobile workforce. The high demand for IT Professionals combined with a low supply of qualified applicants means that there may not be a better chance to use market dynamics to leverage a strong compensation package. Unlike the rest of the labor market, tech is one sector where the employee has the upper hand in negotiations.

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Microsoft Office Takes to The Cloud

Since its introduction in 2007, Google Docs has been eating into the market share of one of Microsoft’s most dominant and profitable products: Microsoft Office. The cloud-based Google Docs, which is free for individuals and integrates with Gmail and other properties, has changed the rules when it comes to productivity software. Since its inception, Google Docs has been adopted by more than 3 million businesses and organizations, as well as over 30 million individual users. Finally, Microsoft has released a competing cloud-based productivity suite with Microsoft Office 365.

It is true that Microsoft has waited four years to take the threat from Google Docs seriously, and many tech prognosticators say that Office 365 is too little, too late, but Microsoft is betting big on Office 365. While Google Docs has been cutting into the Microsoft Office user based since it was introduced in 2007, Microsoft has finally fired back with its Office 365. While the number of adopters of Google Docs is impressive, Microsoft claims that over 1 billion people worldwide use some version of Microsoft Office. This number does not sound too unreasonable considering the fact that Microsoft Office is the number one selling product for Microsoft and accounts for over 30% of the company’s revenue.

Of course, the big question is is it time to ditch the free Google Docs in favor of the subscription-based Office 365? The answer to that question depends on what your needs are. The basic Office 365 subscription starts at $6/mo, and it definitely has much more robust functionality, which is to be expected considering Microsoft Office has been the leading suite of productivity programs for many years. In addition to all of the usual Microsoft Office programs – Word, Powerpoint, Excel, etc. – it also includes numerous new features like web-based e-mail, shared calendars, instant messaging, video conferencing, web meetings, web-based e-mail, and shared documents to name a few. Microsoft is also in the process of integrating Skype into Office 365 and that feature should be rolled out in the near future.

Microsoft currently offers two different Office 365 plans. Plan P is the professional and small business plan that is, at $6 per month, a very good deal considering it can be used by up to 50 people. Plan E – the enterprise version – supports up to tens of thousands of users and the plans range from $10 per month to $27 per month. Considering Microsoft Office has truly massive user base, and the vast majority of corporations use Microsoft Office already, it is unlikely that individuals and organizations will continue flocking to Google Docs. Additionally, Microsoft Office and Google Docs do not play well with each other as moving documents into Google Docs will often result in formatting issues.

There are still some issues that need to be worked out with Office 365, however. The cloud-based versions of Word, Excel, and PowerPoint all lack numerous functions that the desktop versions offer, and in order to utilize all of the functions, users still need to maintain a desktop version of the program. Additionally, the iPad version of the software is a tad buggy, but the fact that there is a tablet version is definitely a plus.Despite the handful of issues with Office 365, it seems like Microsoft Office will continue to be the top dog in productivity suite software for the foreseeable future.

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New Intel Tech Could Break Exaflop Barrier

The competition to build the world’s fastest supercomputer and appear at the number one spot on TOP500 is more competitive than ever. Recently, Intel has pushed the technological envelope by developing a new supercomputing architecture that engineers claim will be able to exceed the exaflop barrier by the end of the decade.

An exaflop is one thousand petaflops, and one petaflop is 1,000,000,000,000,000,000, or one quadrillion, floating point operations per second. This explosion in the processing capability is made possible by Intel’s advancements in new processor architecture; namely the 22nm Tri-Gate technology. The Tri-Gate processor design utilizes a three dimensional transistor that rises vertically above the surface of the wafer.

Recently, at the International Supercomputer Conference held in Hamburg, Germany, the fastest supercomputer was crowned as the Fujitsu K Computer in Japan with a max processing speed of approximately 8 petaflops. The performance of the supercomputers is measured using the benchmark program LINPACK. The new XK6 supercomputer from Cray, which is capable of speeds up to 50 petaflops, was not entered into the contest because the engineers are still working on software that will properly integrate the GPUs. The XK6 is the first time that Cray has incorporated GPUs in its supercomputer architecture.

According to Kirk Skaugen, the Vice President of Intel’s architecture group, the huge increase in processing performance will allow huge strides in medicine, science, and weather forecasting. Breaking the exaflop barrier will make things like real-time CT scans, more accurate hurricane forecasting, and genetic sequencing.

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Broadband Agreement With IP Holders Spells Trouble

Internet Service Providers in the United States have agreed recently to voluntary new rules in an effort to help enforce intellectual property laws and prevent piracy. The new rules have been agreed to by some of the nation’s largest ISPs including Verizon, AT&T, Comcast, and Time Warner Cable. The cooperation of ISPs in protecting content owners from piracy is an incredible step and one that will have far-reaching implications legally and ethically. Much of the agreement simply expands on what Internet Service providers do already when they are presented with complaints from intellectual property owners. There is, however, one key difference. Before the agreement to new rules, ISPs merely notified subscribers that they were suspected of IP theft; however, now ISPs can slow, block, or completely shut off an offender’s access to the internet.

The new system has six different levels of escalation based on the number of times the subscriber has been accused of an infraction against an IP holder. After receiving a complaint, ISPs will notify the subscriber of the infringement, though they will not share the subscriber’s information with the IP holder… yet. The six different levels are described below.

First Notification: The subscriber receives an e-mail from their ISP letting them know that there is a problem relating to intellectual property theft and there will be information and educational material about copyright infringement along with the e-mail.

Second Notification: A second e-mail is sent with educational materials on intellectual property theft.

Third Notification: The third notification will require the subscriber to click through and acknowledge that they have received the previous warnings about copyright infringement associated with the account.

Fourth Notification: The fourth e-mail requires that the subscriber acknowledge directly that their account has been flagged for IP violations by phone, written e-mail acknowledgement, or other forms of communication.

Fifth Notification: After a fifth notification, the ISP is allowed to start taking mitigation measures that are “reasonably calculated to stop future content theft.” These “reasonable” measures include throttling connection speeds or requiring the subscriber to call their provider and discuss the violations. The ISP is not allowed, however, to disrupt voice or e-mail services and taking these “mitigation measures” is entirely at the discretion of the ISP.

Sixth Notification: The sixth notification requires the ISP to take action against the subscriber including any of the mitigation measures they could voluntarily have taken after the fifth notification. Additionally, the ISP could completely cut off service or be compelled by the IP holder to do so.

The best part for people who find themselves targeted for piracy – legitimate or otherwise – is the fact that they are forced to submit the issue to an independent reviewer in order to reverse or contest the measures taken against them. Naturally, this independent review costs the subscriber $35. Completely disregarding whether or not a subscriber is guilty, an intellectual property owner put a throttle an individual’s internet access or get them completely disconnected with the only method of review is for the victim – or infringer – to pay $35… or go to court.

While this may not seem like the most onerous anti-consumer agreement on the books, it does bring up the question of whether broadband access is a protected fundamental human right. Numerous countries have made broadband access a fundamental component of free speech and any attempt to disconnect someone from the internet is a direct infringement on their basic human right to free speech. Considering that the agreement is entirely between private companies, if a law were passed in the United States affirming broadband as a fundamental right – something that has happened in numerous countries – the agreement between broadband companies and major IP groups would run afoul of the law.

The fact that IP holders are incredibly overzealous about protecting themselves against infringement – the 15-year-old kids being sued for tens of thousands of dollars for downloading one CD come to mind – makes the possibility of abuse extraordinarily high. Combine the overzealousness with a lack of understanding of fair-use laws and copyright exceptions, and it is easy to see people getting strong-armed by the MPAA, RIAA, and others. Not surprisingly, a statement by the FCC provided a far from vigorous defense of freedom of speech.

“Today’s announcement of a voluntary, cooperative effort to combat online copyright infringement is a positive development. As the Commission has recognized, copyright infringement has serious adverse consequences for the economy, and efforts to address this issue can and must co-exist with robust protections for Internet freedom and openness. We look forward to the recommendations of the organization that will be created as part of this effort.”

Clearly, the FCC has no intention of taking a stand to protect consumers from the corporate abuse; however, the agreement between IP holders and the major broadband providers will certainly be brought before the courts. It is very likely that the Supreme Court will be addressing such a case in the near future with huge implications on freedom of speech and the power of corporations to deprive American citizens of broadband access.

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NSA Monitoring Web Activities of All Americans

According to a former AT&T Employee Mark Klein, the National Security Agency is monitoring and data mining all domestic and international web traffic in and out of the United States. Mr. Klein was the whistleblower behind the AT&T and NSA eavesdropping scandal in which the NSA was receiving copies of all the data that was passing through AT&Ts San Francisco switching center including e-mails, web traffic, and phone calls. This was not limited to AT&T customers only, instead it included all data that went through the switching center regardless of the source.

When the scandal first broke, spokesmen for the government and AT&T stated that the splitters were only copying communications that were relevant to national security interests like communication between terrorists, suspected terrorists, and dangerous foreign nationals. According to Mr. Klein – a network technician who worked at the switching center – the technology in place to copy and split the data were incapable of doing any filtering and simply copied everything that was routed through the facility. He said, “The splitter device has no selective capability, it just copies everything. We’re talking about domestic traffic, as well as international traffic, and that’s what got me upset to begin with.”

What was actually taking place in the secure room through which the data was being routed has yet to be discovered. The government has not explained what it was doing; however, the equipment in the room included highly specialized data-mining equipment including Narus STA 6400, which is designed to analyze billions of internet communications per second.

The domestic spying program began shortly after 9/11 by President Bush and was expanded under authority the administration considered to exist within the patriot act. This allegedly allowed the government to monitor phone calls and e-mails of millions of U.S. citizens without a warrant. The vast majority of legal scholars agree that there was no legal standing for the warrantless monitoring of American citizens, including Jonathan Turley, a law profession at George Washington University. Multiple class action lawsuits have been filed against both AT&T and the United States government since the program was first uncovered in December 2005. The Electronic Frontier Foundation filed the latest lawsuit solely against the federal government in September 2008.

The U.S Government has tried to kill the class action lawsuits multiple times by attempting to invoke the State Secrets Privilege, so far without success. AT&T has tried to kill the lawsuits against it as well, claiming they were following direct orders from the federal government and are thus immune from legal action. All cases are currently ongoing.

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Google’s Hiring Spree Continues

2011 is shaping up to be a very big year for Google. Last year, Google expanded its work force by 23%, and this year they plan to add an additional 6,200 employees to the payroll, which is an increase of over 25%. This ambitious hiring plan has drawn the ire of some financial analysts who fear that the increase in hiring will outpace revenue growth and hurt the company’s bottom line.

Executives at Google, however, are unconcerned. They say that the company needs to hire aggressively in order to remain a leader in innovation, and that they need to pay handsomely in order to recruit the best and brightest to keep their edge. They also cite the company’s diversification away from its core search and advertising business, into a wide range of other ventures including mobile, telecom, greentech, and others.

Google’s latest hiring spree stands in start contrast to many other internet giants who are hemorrhaging workers in an attempt to stay relevant, including Yahoo, which has laid of hundreds of workers this year alone.

Earlier this year, former CEO Eric Schmidt would not say how many of those jobs would be located in the United States, but the majority of Google’s employees do work in the U.S. Schmidt did state that the company would be hiring more than 1,000 workers in Europe in order to capitalize growing opportunities in the region.

Despite the fact that Schmidt would not comment on the number of employees being added in the United States – a position his successor Larry Page, co-founder of the company, has also taken – Google’s $1.8 billion purchase of a massive office building in New York City signals that the company has no intention of slowing domestic hiring.

Even with Google’s projected number of employees reaching 31,000 by the end of the year, the company is still quite small compared to Microsoft, which is one of their largest competitors and employs almost 90,000 people around the world.

Google remains one of the highest rated employers in the United States, coming in #4 on Fortunes list of best places to work in 2011, and it is easy to understand why. Google provides employees with world class amenities including gourmet food, laundry service, massages, health care, day care, and entertainment and exercise facilities all free of charge. Even with the amazing perks and impressive compensation, Google has seen numerous high-profile defections to other companies including Facebook over the past year. Even though the number of defections has been relatively small, only 200 Google employees have gone to Facebook, it has prompted Google to take extensive measures to retain talent, including an across-the-board 10% pay increase and the doling out of large cash bonuses.

Many of the actions by Google have left financial analysts and commentators scratching their heads. 2010 was an amazing year for the company with Google earning over $8.5 billion and ending the year sitting on a $35 billion mountain of cash. Most companies would use this money to reward shareholders with dividends or a share buyback program, but Google has chosen to go on a spending spree purchasing companies in a wide array of markets. On this point, Alan Eustace, Google’s senior vice president of engineering and research, said, “At this stage, the number of opportunities just vastly exceed the number of people we have at the company.”

It remains to be seen if this multi-sector approach to innovation will reap dividends for the company, but it has at least some history to support just such a plan. Google’s android operating system has become the dominant player in the mobile phone market beating out Apple’s iOS and Research In Motion’s Blackberry devices. Only time will tell if the company’s diversification will be a great decision or a great folly; however, if there is one company that can innovate across multiple sectors, it is Google, and they seem ready and willing to put their sizable finances and reputation to the task.

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The Battle Between Facebook and Google Hits New Heights

The rivalry between Google and Facebook has reached new heights. Over the past two years, the two tech giants have been encroaching on the others territory with increasing frequency and voracity. Recently, both Facebook and Google have unveiled two products that strike at the very heart of the other company’s business.

Over the past two years, Google has acquired a wide array of companies that exist in the social sphere in an attempt to get a piece of the most important tech innovation since the creation of the search engine. Despite spending hundreds of millions of dollars, all of Google’s forays into the social sphere have been total failures. In fact, many of Google’s attempts to get social have been so poor that tech bloggers have said that Google will never be able to compete. They further speculate that this failure to incorporate the social web into their business could eventually lead to the downfall of the company.

Recently, Google took a big shot at Facebook by blocking Facebook users from being able to import their Gmail contacts into Facebook. Google accused Facebook of unfairly siphoning data from Google and lambasted them for keeping a closed system that prevents users from exporting their own data from their Facebook profiles.

Now, Google has gone a step further with the wide scale beta release of their very own social networking property, Google+. Google+ combines a wide range of social options that are not available on Facebook like multi-user video chat. It also fully integrates with all of Google’s extremely popular services including Gmail. Their new push into social already has many tech prognosticators calling it a “Facebook killer” and predicting the demise of the world’s most popular website.

Facebook, however, is not waiting for the end. A few years ago, Facebook began offering pay per click advertising, which has been and continues to be Google’s primary source of revenue. Instead of keyword bidding, however, Facebook allows advertisers to display their ads based on a wide array of user demographics and interests, which has allowed those advertisers to get a better return on each advertising dollar spent. This has directly affected Google’s bottom line as well as giving Facebook a massive and growing revenue stream.

With over 750 million users worldwide, the most traffic of any website, the highest levels of engagement, and the single most valuable database in the world, Facebook is attempting to push further into Google’s business space. They recently unveiled a new product that will compete with one of Google’s most successful services: Gmail. Facebook users will be able to create @facebook.com e-mails, which will integrate seamlessly with the rest of Facebook. E-mail and social have been completely separated up until this point, and Facebook is expecting that people will embrace the union of these two services. Within the company, Facebook employees have been referring to this new product as a “Gmail killer.”

Even employees are fair game in the war between Facebook and Google. Not only are they competing for the best talent coming out of top engineering programs, but also actively stealing employees from each other by enticing them with increasingly lucrative salaries, perks, and bonuses. Top engineers and managers routinely bounce between the two companies, and both companies have been increasing salaries across the board in an effort to retain talent. In fact, it has now become common practice that employees at each company will obtain an offer from the other in order to improve their bargaining power in compensation negotiations.

The war between Google and Facebook has reached a new level of intensity, and it appears that no quarter will be given. Whether the two can reach a truce or who will be victorious is not certain, but what is certain is the fact that the competition will result in innovation that benefits all users of the web.

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Skype and Facebook Team up for Video Chat

Facebook has been rolling out features recently, and one that Mark Zuckerberg had been hyping a great deal turned out to be a joint venture between Skype and Facebook to bring video chat to the social networking platform.

This is not the first time that Skype and Facebook have worked together on a project, as it was not too long ago that Facebook helped Skye integrate the social network into the popular voice and video chat program. Now, it seems, Skype is returning the favor. Instead of creating a video chat platform from scratch, Facebook has integrated a Facebook-oriented Skype service.

Unlike the traditional Skype service, people looking to video chat on Facebook do not need to download a desktop application; the service runs through a Facebook app that runs in the vast majority of web browsers. So far, feedback on the service has been less than enthusiastic. The service works, but users have complained about the poor, pixilated, and choppy video, and the distinct lack of echo suppression. The lack of echo suppression – or extremely poor echo suppression – is not a problem for people who use headsets, but for individuals using a stand-alone microphone and speakers, the service is all but unusable.

Overall, the new video chat feature on Facebook is rather underwhelming, especially for people who have grown accustomed to Skype’s excellent desktop client, but expect Facebook engineers to be working hard on fixing the kinks and adding new features including group video chat.

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Opportunities Abound at LinkedIn

Ever since it’s recent IPO, LinkedIn has been on a bit of a hiring spree. The professional networking site has hundreds of job openings and is planning to use some of the money that it raised from its $4 billion IPO in order to further expand its workforce in order to keep up with its exceptional growth.

LinkedIn began in 2002 out of founder Reid Hoffman’s living room in 2002, but it has experienced extraordinary growth since that time. It took LinkedIn 494 days in order to reach 1 million members, but today, the site is averaging one million new members every 12 days. Going from an idea to a publicly traded company with a market cap of upwards of $7 billion is a truly exceptional feat; however, because of the meteoric rise of Facebook, the slightly less impressive but still extraordinary rise of LinkedIn has not gotten as much attention.

In 2010 alone, LinkedIn doubled its workforce going from approximately 500 to over 1,000 employees, and it is expected to continue its rapid hiring. Much of LinkedIn’s current and future growth will come from its expansion into foreign markets. LinkedIn has already become a vital resource for professionals in the United States allowing them to network with others, and find jobs. To date, the majority of LinkedIn’s user base and activity has been in the United States, but it is quickly becoming an integral resource for professionals and corporations alike around the world.

In the same way that Facebook changed the way that people keep in touch, LinkedIn has changed the professional networking landscape and there is little doubt that it will be an integral part of professional networking for the foreseeable future. LinkedIn currently has positions open across a wide range of sectors from accounting, to sales, to programming, to translating in numerous offices around the globe including London, Paris, Toronto, New York, and many others.

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Big Data Offers Big Opportunities

Over the past few years, “big data” has become an increasingly valuable asset for corporations, governments, and large organizations. With billions of people using the internet every day, massive amounts of data about shopping habits, browsing habits, searches, and almost every other activity online are being collected and stored for billions of people. All of this data presents a massive opportunity for increased innovation, productivity, and a better user experience for the average person. Companies and governments of almost every sort can benefit from the harnessing and analysis of big data, but there is a major problem standing in the way of utilizing all this data.

The vast majority of businesses around the world – 70 percent – are unable to utilize all of this data. The vast majority of the data that is being gathered and stored is sitting idle and unused. In the United States alone, there is an expected shortage of up to 190,000 trained professionals wh are able to process, analyze, and utilize the information that is stored in these massive data sets. In order to extract the informational gems that are inside these massive mountains of data, companies need to have specialized professionals with high-level analytical skills, computational abilities, and the knowledge to extract the hidden gems.

There is a wide range of skills required to extract valuable information from big data effectively. Advanced computer programming to build extremely advanced algorithms that can sift through hundreds of billions or trillions of data points. Pattern analytics to be able to recognize, decipher, and predict valuable trends. Some of the most successful companies are built entirely around big data. Google, for example, is nothing but a company that analyzes and utilizes big data from the search results you see to the ad results they place on their pages. Big data is the future of business in almost every industry, and it will make not only make companies and governments more efficient, but it will improve the quality of life for individuals as well.

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