thewardour.com

“Customers are still buying and spending, but they’re highly selective,” Chen said. “While they are less willing to spend on professional services, they are still willing to spend on mission critical applications.”

Some of those critical enterprise software applications include security software, real-time reporting, and risk management business intelligence software.

With earnings driven by strong growth in its core database business, company shares jumped 7.8 percent to $27.87 in early-morning trading.

John Chen, Sybase CEO, said during the conference call: “Clearly, we are taking share from our (database) competitors with these results.”

Chen noted, however, that sales cycles have been a little bit lengthened.

Sybase also provided guidance for how it expects to perform throughout 2009, a move that many companies are shying away from in these tumultuous economic times, as customers’ orders are becoming increasingly difficult to predict.

Sybase reported net income of $47.3 million, or 59 cents a share, compared with net income of $73.5 million, or 81 cents a share, a year earlier.

The company expects to report revenues of $1.14 billion and earnings, excluding charges and special items, of $2.16 to $2.21 a share for 2009. The revenue forecast is slightly below Wall Street’s expectations of $1.16 billion but higher than analysts’ predictions of $2.14 a share.

Update at 7:49 a.m. PST, with comments from the conference call.

Sybase posted a 38 percent increase in database sales, as customers continued to spend on such enterprise software as their data capacity needs continued to grow, despite recessionary times, noted Tillman.

Correction: Sybase reported a 13 percent increase in license revenue, based on constant currency.

During the quarter, Sybase reported that new licenses grew 8 percent to $122.1 million, compared with a year ago, when accounting for changes in currency. Based on constant currency, that figure rose 13 percent for the quarter. Investors tend to keep a keen eye on new license revenue because it serves as an indicator for future business in other parts of Sybase, from tie-on products and services to maintenance and support.

Sybase posted fourth-quarter results on Wednesday that sailed past Wall Street’s earnings expectations.

Tillman noted that business intelligence software is performing well in this recessionary climate, as customers are particularly eager to gain insight into their own businesses.

Revenues during the quarter rose to $305.1 million, up 3 percent over the same time a year ago. Wall Street was expecting the enterprise software company to make $300.3 million, according to Thomson Reuters.

“They really blew it out this quarter, ” said Terry Tillman, an analyst at Raymond James & Associates. “The theme for them is, they have the right kind of products in this type of market. Their database had one of the strongest product cycles in a decade.”

He also noted that customers have been increasingly responding well to efforts Sybase has made in retooling its database, which began in late 2005. The company’s Advanced Server Enterprise 15, otherwise known as ASE 15, has gained traction, and Sybase has taken advantage of its database with additional features to sit on top of the software, such as analytics.

When excluding one-time charges and special items, the company posted earnings of 78 cents a share, soundly beating Wall Street’s expectations of 61 cents a share, according to Thomson Reuters.

Charge for premium consumer “bling” and services.
Sell access to themes, skins, file transfer features.

Sell plush Fail Whales.

Ignore revenue.
Grow the user base and sell the company, perhaps to Facebook. It worked for ICQ, which was scooped up by AOL in 1998.

How should Twitter make money?
( polls)

Sell enterprise-level services.
Create a version of Twitter for business (see Yammer, Presently, SocialCast). Include security features, logging, support, possibly an installable version, etc. This is the leading contender for a business model, according to Williams.

Go “freemium.”

Allow only so many Tweets per day or total followers per account. Collect payment after that.

Charge Twitter authors for commercial-grade services.
Companies using Twitter as a part of their media strategy would pay for guaranteed uptime, capability to embed a Twitter feed, branding control, etc.

Sell access to either the Twitter API or “firehose.”
Keep it free up to a certain traffic level. Charge after that.

I am tired of hearing Twitter CEO Evan Williams give the same old song and dance about his company’s revenue strategy.

Host Twitter-centric apps.
If companies want their app hosted at Twitter, they can pay for it.

Analytics.

Sell data from Twitter use to big users and to advertising/marketing companies and/or hire out a Twitter analyst to companies that will pay for it.

It’s not like it is an inherently unmonetizable service. Here are some ways the service could generate a few bucks:

Sell advertising.
Like on Pownce.

Twitter’s delay in implementing a revenue strategy makes me jittery. I would pay for it if I could. But at this point, I don’t believe that the Team Twitter actually has a plan for making money from the site.

“It’s a valuable service,” he says, “I don’t think it’s going to be hard to monetize.” So what’s the holdup? I worry about Twitter’s business because I want to see the company and the product thrive.

Allow Twitter authors to collect money from followers.
Take a cut of the revenues. Proposed by Narendra Rocherolle on TechCrunch.

What’s your take? Chime in.

I led a panel at the MIT Emerging Technology Conference earlier this week on cloud computing with some of the leaders in the field: David P. Anderson, research scientist, University of California at Berkeley; Matthew Glotzbach, product management director, Google; Parker Harris, EVP, Technology, Salesforce.com; Mendel Rosenblum, chief scientist and co-founder, VMware; and Werner Vogels, VP and CTO, Amazon.com. The group generally agreed that cloud computing involves software running off premises, but that there are different workloads and kinds of scenarios.

“We’ll make cloud computing announcements. I’m not going to fight this thing. But I don’t understand what we would do differently in the light of cloud.”

Frank Gillett of Forrester speaks about the cloud envy of various companies who jump on the cloud computing bandwagon by rebranding existing services in this interview with Beet.TV.

(Credit:
Dan Farber)
Finally, a technology executive willing to tell the truth about cloud computing. Speaking at Oracle OpenWorld, Larry Ellison said that the computer industry is more fashion-driven than women’s fashion and cloud computing is simply the latest fashion. The Wall Street Journal quoted the Oracle CEO’s remarks:

The problem is that every tech company now wants to be associated with cloud computing, no matter if their products and services meet the basic criteria. At least Ellison isn’t afraid to address the hijacking of the phrase by marketers, including Oracle’s.

Oracle CEO Larry Ellison

“The interesting thing about cloud computing is that we’ve redefined cloud computing to include everything that we already do. I can’t think of anything that isn’t cloud computing with all of these announcements. The computer industry is the only industry that is more fashion-driven than women’s fashion. Maybe I’m an idiot, but I have no idea what anyone is talking about. What is it? It’s complete gibberish. It’s insane. When is this idiocy going to stop?

Blodget defends his site’s story
Kim from MacRumors argues that it was SAI’s post that gave the rumor credibility and spooked Wall Street. “The (iReport) story has been picked up by numerous sites as a failure of citizen journalism,” Kim wrote. “It’s nothing of the sort. The real reason it gained traction is the reporting of it on mainstream blog sites.”

Apple CEO Steve Jobs

“Unedited. Unfiltered. News.”

At about 6:25 a.m. PDT, SAI published this headline: “Apple’s Steve Jobs Rushed To ER After Heart Attack, Says CNN Citizen Journalist.” Within the blog, SAI informed readers that the report hadn’t been substantiated but reporters were checking it out. To that point, no other mainstream media outlet had published anything about Jobs’ health, according to Henry Blodget, SAI’s founder and a former well-known tech analyst.

There’s no doubt that both CNN and SAI will move forward and continue to produce important and accurate news stories. Maybe CNN will take a closer look at how it displays its user-generated reports. As for journalists, citizen and professional, maybe the takeaway for us is to slow down just long enough to make one more phone call, talk to one more source.

“Severe chest pains”
The incident began when someone posted a report on CNN’s iReport shortly before 4 a.m. PDT. “Steve Jobs was rushed to the ER just a few hours ago after suffering a major heart attack,”the post at iReport read. “I have an insider who tells me that paramedics were called after Steve claimed to be suffering from severe chest pains and shortness of breath. My source has opted to remain anonymous, but he is quite reliable.”

I asked Blodget whether SAI should have waited to confirm the information before posting. After all, the blog was dealing with a potential life-and-death report about one of technology’s most influential leaders. Blodget said he has no regrets about going with the story when he did.

That may be true but a visit to iReport reveals there is little to distinguish user-generated reports from those filed by professionals. CNN often does fact-check some of the user-generated stories. If they’re accurate, the network will use them on TV broadcasts or CNN-branded Web sites. Martin said these vetted reports are clearly identified with the label “Now on CNN.”

(Credit:
James Martin/CNET News)

What hasn’t been widely circulated yet is that iReport was not the first place the fake story was sent. Arnold Kim, who operates the blog, MacRumors.com, wrote Friday that someone submitted the same rumor to his site using an anonymous IP address. Kim did some research on the rumor and decided it was a fake. Later, he tracked the report and found it being circulated by members of online message board 4chan. Kim also discovered the item was circulating on Digg, a popular news aggregation site. Digg users, however, voted the story down, meaning they also were skeptical.

The next place Kim saw the rumor was at SAI.

At 6:52 a.m. PDT, SAI updated its story to report that an Apple representative had denied the iReport story, Blodget said. A few minutes after that, Apple’s stock began to recover.

The bogus story sparked a minor panic on Wall Street before Apple had a chance to deny the rumor. Trading in Apple’s stock skyrocketed, and the share price briefly fell about 10 percent before rebounding later in the day.

The public is less interested in us getting the story first as it is in us getting the story right.

This isn’t the first time that a respected blog has found itself answering questions about why it reported on a bogus tip. In May 2007, Engadget received what appeared to be an internal Apple memo that indicated the launch of the
iPhone was going to be delayed. The memo was a fake and after the gadget blog reported the false rumor, Apple’s market cap lost $4 billion. Engadget, like SAI, did not confirm the story first with Apple before publishing.

What are the lessons?
As for Silicon Alley Insider’s part in this mess, Blodget suggests that CNN’s ownership of iReport gave credibility to the false Jobs story. But some Apple investors might say the same thing about SAI’s report. The former analyst was once a Wall Street insider and his staff has been loaded with seasoned reporters from publications such as Forbes and Variety. Even if SAI prominently noted that the iReport story was unconfirmed, the fact that SAI had written about it and was checking it out may have given the report some credibility.

This is a time of intense competition in tech journalism. A decade ago, newspapers used to write today’s news for tomorrow’s paper. Not anymore. Reporters are increasingly under pressure to publish news to the Web minutes after events occur. People who have been in the business for a while know what’s often lost with this need-for-speed mentality is thoughtful writing and careful reporting. Following the phony Jobs story, many pundits placed the blame at the feet of CNN and citizen journalism. But the facts of the case raise questions about whether professional journalists behaved responsibly in their handling of the story.

“(The story) was highly relevant to anyone who cares about Steve or Apple…it was already getting notice when we heard about it…we knew our readers would want to evaluate it themselves.”
–Henry Blodget, founder, Silicon Alley Insider

That’s the slogan CNN chose for its user-generated news site, iReport.com, a place designed to tap into the citizen journalism craze. At iReport, any member of the public is allowed to post stories, ostensibly as part of the cable network’s news operation, simply by providing an e-mail address. CNN and citizen journalism are being criticized after someone used the site on Friday to spread the false report that Apple CEO Steve Jobs had suffered a serious heart attack.

Some of the other questions being asked are why mainstream news services didn’t discredit the report before any damage was done? And who was minding the store for CNN? Surely, one of the country’s most trusted news sources wouldn’t allow just anyone to post a story under its banner without vetting it.

Blodget told CNET News that his staff tried to contact Apple and CNN representatives to confirm the story prior to publishing but were unable to reach them. SAI decided to post the item–with all the disclosures about it being unconfirmed–anyway.

Also at the center of the controversy is Silicon Alley Insider, a New York-based technology and financial news blog that has earned enormous respect and popularity in a brief amount of time. SAI and CNN could see their reputations tarnished if they’re found to be at fault, but I venture to say that in the wake of the controversy, everyone involved in online journalism is doing some self reflection.

“The Steve Jobs report was the lead story on a site operated by CNN,” Blodget said by e-mail. “It was highly relevant to anyone who cares about Steve or Apple…It was already getting notice when we heard about it. We never know how long it will take to confirm or reject information like that, and we knew our readers would want to evaluate it themselves. So we described exactly what the report was, said we didn’t know whether it was true or not, and said we were investigating. Twenty minutes later we broke the news that the report was false.”

At 6:41 a.m. PDT, Apple’s stock price began to plummet.

“The (iReport) story has been picked up by numerous sites as a failure of citizen journalism. It’s nothing of the sort. The real reason it gained traction is the reporting of it on mainstream blog sites.”
–Arnold Kim, founder, MacRumors.com

CNN responded to this by saying that while iReport is relatively new, the company has been involved in user-generated content since August 2006 and this is the first time that any mainstream news site has mistaken some of its user-generated content for CNN-vetted material. Jennifer Martin, a CNN spokeswoman, said that though CNN owns and operates iReport, it is very clear that the information on the site is, like the slogan says, unedited and unfiltered. In iReport’s “About” section is written this statement: “CNN makes no guarantees about the content or the coverage on iReport.com.”

How is it possible that a single fraudulent Internet report can wipe away millions or even billions of dollars of market value from one of the world’s most powerful technology companies? That’s the big question if you’re one of Apple’s investors. If you’re an investigator for the Securities and Exchange Commission you’re interested in who did it and why. According to CNN, SEC investigators are looking for the person who posted the fictional story to iReport.

Andy Rubin, head of Google's Android project.

The iPhone set the bar for what customers should expect from a smartphone. Apple then raised the bar this summer with the iPhone 3G and a new App Store that allows people to buy and download thousands of applications.

New rules
Android is an attempt to bring some of the ways of the computing industry to the mobile phone world.

Like Apple, Google plans a central site to distribute and sell applications. In August, it announced plans for the Android Market, an online center where people can find, buy, download, and rate applications and other content for Android phones. Initially, the site will only support distribution for free applications. An update later will handle different versions of applications, support different profiles of Android phones, and include analytics to help developers track adoption, Google has said.

Bruggeman, though, doesn’t see Google’s crosshairs painted on Apple’s back.

There will be plenty of hullabaloo on Tuesday when T-Mobile unveils the first phone powered by Google’s Android operating system. But the event is only the beginning of a long effort to rewrite the rules of the mobile communications industry.

High hopes
But the big question is whether the Dream can live up to expectations.

T-Mobile already has a decent portfolio of smartphones, including the BlackBerry Pearl, BlackBerry Curve, and BlackBerry 8820. It also sells two other HTC smartphones that use Microsoft Windows Mobile operating system, the T-Mobile Dash and T-Mobile Wing. But as the carrier rolls out its new 3G network, it needs a flagship device that will give consumers, who might be tempted to buy an iPhone for AT&T’s network, a reason to buy a phone on T-Mobile’s network.

Open-source software is another example. The Android software, millions of lines of code that will become open-source software with the release of the first phone, employs some components familiar to the computing industry and some new ones. It employs Linux at its lowest levels to communicate with hardware, but applications running on the system are written in the Java programming language. Java is common in mobile phones, but Google diverged from the mainstream phone industry by creating its own Java foundation, called Dalvik, for running the programs.

“If you’re going to be an Open Handset Alliance carrier, you can’t lock it down,” said John Bruggeman, chief marketing officer at Wind River Systems, a Google ally that helps phone makers build and customize Android for their phone hardware.

“I don’t think it’s an iPhone killer. As long as Apple continues to innovate and create a good user experiences and sexy devices, there’s always a place for that,” Bruggeman said. “If the mobile phone market is 3 billion units and Apple has 15 million, they are a pimple on the mobile phone landscape. There will always be a room for a pimple on the landscape. Google is playing for the rest of the enchilada.”

Wind River is contributing code of its own as part of its Android support business. Its customers’ second-generation Android phones will ship in the first half of 2009, Bruggeman said, and “There’s a good chance we’ll make first quarter.” He called the Dream a good start, but promised better power management, performance, usability, and features for the sequels.

HTC and T-Mobile seem to have gone the smartphone route in developing the Dream, which some are calling G1. So far, neither T-Mobile nor HTC has revealed details about the new phone. But rumored specifications for the device and pictures on various blogs suggest it’s chock-full of bells and whistles to help it compete in the smartphone market against devices like Apple’s iPhone and Research in Motion’s BlackBerry devices.

For T-Mobile, an Android phone could bring some Google buzz to the scrappy carrier, helping match what AT&T got from Apple’s
iPhone. It also could potentially persuade customers T-Mobile’s new 3G network is worth paying give T-Mobile new revenue from online application sales.

Marguerite Reardon co-wrote this article.

This post was co-written by staff writer Marguerite Reardon.

But Google’s advertising business is a money factory, and the company has shown it has patience to invest that money in key projects. So even if the first-generation Android phones don’t entice people to line up around the block, competitors who develop mainstream phone operating systems such as Nokia’s Symbian and Microsoft’s Windows Mobile doubtless are taking heed.

For example, taking a page from Microsoft’s playbook, Google is trying to enlist countless programmers in its Android charge, relying on them to build applications for the phone. While the mobile phone business hasn’t made it easy to add new applications to phones, Google wants to reverse this and bring more of the openness of PCs to the phone market.

Some of the features that are rumored to be included are a full QWERTY keyboard, 3G support as well as Wi-Fi, a full HTML browser, embedded GPS, easy access to Google applications such as maps, YouTube, instant messaging, e-mail, SMS texting, a 3-megapixel camera, a music player, video recorder and player, and a memory card slot.

(Credit:
Stephen Shankland/CNET News.com)

The phone, a somewhat chunky model called Dream built by HTC, is expected to cost about $200 from T-Mobile and go on sale in October. Until other partners in the Google-spawned, 34-member Open Handset Alliance bring their Android products to market, this small piece of electronics will shoulder a lot of ambitions.

The HTC Dream is T-Mobile’s iPhone slayer, or so the company hopes. Because the software has been developed by glamorous Google there are a lot of expectations. And some believe that Android could also be a game-changer, just like the iPhone before it.

Running the gamut
Android can be used by any phone manufacturer to build any kind of mobile phone–anything from a simple, inexpensive phone for the developing world to a power user’s high-end smartphone.

The Dream’s $200 price tag also hits the smartphone sweet spot for cost. T-Mobile is already selling both the BlackBerry 8820 and BlackBerry Curve for $199 with a two-year contract. And Apple and AT&T are offering the iPhone 3G for $200 with a two-year contract.

For Google, Android is a tool to spread Internet-savvy phones far and wide. People with powerful networked phones use the Internet much more, and Google wants to be the top company supplying the information they demand online.

Because much of Android is open-source software, it can be used for free, and that means those selling phones can spend their money on better hardware rather than on software license fees, Bruggeman said. In addition, other individual programmers or interested companies can help improve that open-source software, so at least theoretically Android could become an exercise in collective engineering the way Linux has been.

Since the iPhone was first launched in 2007 exclusively on AT&T’s network, wireless operators have been scrambling to find a cool device to compete. Last year, Verizon Wireless introduced the LG Voyager, which has a touch screen that flips up to expose a QWERTY keypad. Earlier this year, in anticipation of an iPhone with 3G, Verizon launched the LG Dare, a 3G touch-screen phone with a
mobile browser.

“Look at Japan, (where) we have far more usage of mobile Web. It’s similar with the iPhone,” said Google co-founder Sergey Brin in a meeting with reporters last week. “If the Internet is widely available, that’s good for us.”

What’s not yet clear is how well Android phones will fare in the marketplace. Google’s software is untested, and there are plenty of competitors in the mobile phone market.

In June, just a few weeks before the iPhone 3G went on sale, Sprint Nextel launched the Samsung Instinct, a touch-screen 3G smartphone designed to give iPhone a run for its money.

Flash Player 10 was code-named Astro.

• Easier-to-use 3D graphics effects.

Flash Player is a key part of Adobe’s push to make Web-based applications more powerful. Adobe’s Flex framework can be used to create applications that run on the Flash Player or as standalone computer applications running on AIR, the Adobe Integrated Runtime.

• Better sound handling, so that different audio signals can be mixed together–for example, a music sound track with a game’s audio effects.

• Adaptable video streaming that can adjust to changing network throughput.

Astro is launched.

Another Flash Player 10 effect in Picnik.

One special effect enabled by Flash Player 10 on Picnik's online photo editing site.

• High-performance visual effects using technology called Pixel Bender that also works with After Effects
CS4 and Photoshop CS4.

Flash and Silverlight aren’t the only ways to make these so-called rich Internet applications, though. Silverlight, which drafts off Microsoft’s strong developer base and its .Net programming technology, is a newer competitor. And JavaScript is growing up as a way to build more elaborate interfaces in Web applications. Flash, however, enjoys a very broad adoption, and users upgrade to the newer versions relatively swiftly.

(Credit:
Picnik)

(Credit:
Picnik)

• Better text handling for more sophisticated layouts combining words and graphics, more refined typography, and better multilingual applications.

• Better abilities to tap into hardware acceleration.

“Future plans with Flash Player 10 include the addition of super high‐resolution photo capabilities, more sophisticated editing features, and the ability to load and save photos without involving an upload to a server,” Picnik said Wednesday.

Update 11:25 a.m. PDT: One big Pixel Bender fan is online photo editing site Picnik. Flash Player 10 speeds the site and enables “mind-blowing effects.” It also means third parties can create effects of their own using the Pixel Bender technology. See some examples below.

On Wednesday, Adobe Systems announced the release of a major update to its Flash technology to endow Web sites with better video, audio, and graphics. The new version 10 was code-named Astro, and it arrived just days after Microsoft released version 2.0 of its rival Silverlight software.

(Credit:
Adobe Systems)

Flash Player 10, a free download also available for Windows and Mac users from Download.com, includes a number of new features:

Flash Player 10 also is used within Adobe’s Creative Suite 4, a broad range of applications including Photoshop, Illustrator, Dreamweaver, and Premiere that just began shipping. Because control panels are written with Flash technology, CS4 menus can be extended by third parties more easily, and Adobe plans to release a Configurator by the end of the month that will make it easy to create custom control panels.

Skype’s latest mobile beta for Windows Mobile phones graduated to version 3.0 on Tuesday. Skype 3.0 beta for Windows Mobile integrates two big features from the desktop version–file transferring and SMS. Both are welcome additions that bring the mobile VoIP application much closer in line with the newly updated desktop version, Skype 4.0 for Windows.

After SMS and file transferring, the next biggest change is a technical one that most people shouldn’t notice–the fact that you won’t have to decide between downloading the version for Windows Smartphones or for Pocket PCs. A single one-size-fits-all download makes installation blissfully brainless. In addition, the beta has undergone a few understated, but useful changes to its layout, like being able to update your status, add hyperlinks to chat messages you may have missed, and the option to buy more Skype Credit.

(Credit:
CNET)

Update your status message and buy Skype credit in Skype 3.0 beta.

The SMS feature has been seamlessly added as a shortcut icon on the contact list page (it’s the black circle encasing a tiny cell phone), but you can also initiate a text message by selecting “Send SMS” from the Menu options–the cost will come out of your Skype Credit. The file transfer feature is a bit more buried. To use it, select “Contact Options” from the Menu choices, and then “Send File.” This will incur a data charge, so it’s best to have a data plan in place before going wild with transfers.

(Credit:
CNET)

Send a file to a buddy in Skype 3.0 beta.

Skype 3.0 beta for Windows Mobile 5.x and 6.x phones is available to try for free. Download it to your PC here or get the CAB file over the air. We’re expecting to see the full release available in the next few months, but some of Skype’s timeline may depend on the kind of user feedback they get. For our two cents, the additional features have been integrated well, and we hope to see more mobile-specific features in the future, like the capability to snap a picture from within Skype and transfer or SMS it to a pal.

As soon as you ship your image, song, or document out to your buddy, a new tab opens in Skype for Windows Mobile 3.0 beta that keeps track of the transfer and lets you know when your contact has accepted the download. File transfers work both ways, of course, so you’ll be able to accept files sent through Skype while you’re on the go–crazy photos and important business documents included. File transfer worked without a hitch over our 3G network, as did SMS. Wi-Fi will make them even faster.

Ticketmaster, meanwhile, is the same company concertgoers have known and loved (or loathed) since the 1980s, though it’s changed hands a few times, and was most recently spun off from Barry Diller’s InterActiveCorp into an independent company.

In a traditional old-fashioned music business deal, the record company controls recording and distribution. In a 360 deal, a single company handles all aspects of an artist’s career–recordings, concerts, and merchandise.

Now it appears that the Live Nation-Ticketmaster spat was just gamesmanship, part of the negotiation process. So forget about competition–rock concerts are a private party for the rich, and the rest of us will be left to watch the DVD after the tour ends. That’s going to be the new norm, not the exception. It’s a shame–going to big concerts was a rite of passage back when I was a kid–but the spirit of rock and roll lives on in small clubs, garages, and laptop battles.

Some background, if you haven’t been following along: Live Nation was spun off from radio-advertising giant Clear Channel back in 2005. Its main business at that time was concert promotion and ownership of concert venues–particularly large amphitheaters.

But Live Nation apparently had problems handling demand for recent concerts. Meanwhile, Ticketmaster was up to the same tricks that have given it such a sterling reputation among fans–Bruce Springsteen recently criticized the company for guiding concertgoers straight to the TicketsNow auction site (also owned by Ticketmaster) after tickets from the regular site sold out in a few minutes. Of course, the auction-site tickets were much more expensive. (The practice has drawn a class action lawsuit in Canada.)

Under the leadership of CEO Michael Rapino, Live Nation diversified and began signing a new type of business deal known as a “360 deal” with major artists like Madonna and U2.

After a couple weeks of rumors reported by The Wall Street Journal and other outlets, it’s finally happened: concert promoter and venue owner Live Nation and the nation’s largest ticket seller, Ticketmaster, have merged in a deal worth approximately $2.5 billion.

Earlier this year, Live Nation and Ticketmaster severed their ticketing relationship–instead of using Ticketmaster, Live Nation would create its own ticketing system and sell tickets for its own venues and the shows it promoted. For a brief shining moment, it looked like there’d be new competition in the concert industry, perhaps leading to lower prices.

It’s hard to get an idea of the company’s scope, as it doesn’t disclose exactly how many concert venues it owns in its financial statements, but in the last three months of 2008, it produced almost 5,700 events with attendance of over 18 million. Of those events, 600 were produced by Live Nation in Live Nation-owned or operated venues in North America.

Why is this important? Because the combined companies are, in my opinion, dangerously close to building a vertical monopoly. The new company, Live Nation Entertainment, will own concert venues, the ticketing system for those venues, and exclusive rights to certain major acts that play those venues. In other words, if you thought concert prices were high now, just wait a couple years.

Despite economic and financial problems, the solar industry is charged up from recently passed federal renewable tax credits, which were extended for eight years.

(Credit:
Martin LaMonica/CNET Networks)

“I’m seeing some great action. More action than some of the action movies this year,” Schwarzenegger joked.

But he warned that the economic downturn may lead some policymakers to seek to scale back environmental measures. Instead, he said that states and countries should redouble their commitments to green technologies because these new industries create jobs.

“I can envision going on a helicopter and seeing no more warehouses without solar panels,” he said, drawing applause from conference attendees. Then the governor and former actor promised “I’ll be back,” next time driving a solar-powered Hummer.

The governor touted his state’s environmental policies, which in many cases, have become models for other states and even for national policy, such as the low-carbon fuel standard and caps on greenhouse gas emissions.

Calif. Gov. Arnold Schwarzenegger speaking at the Solar Power International Conference.

He said that in many cases, “what’s clean for the environment can be green (as in money) for the economy.”

Schwarzenegger is a frequent promoter of the “green economy” and spoke at the Solar Power conference two years ago. Last week, he dedicated a 2-megawatt solar installation over a parking lot at the Sunnyvale, Calif., headquarters of Applied Materials, in conjunction with the announcement of an anti-sprawl policy.

SAN DIEGO–Calif. Gov. Arnold Schwarzenegger delivered a surprise speech at the Solar Power International conference here Monday night, saying that a sustained commitment to clean technologies can aid the country’s economic recovery.

After touring the conference floor, Schwarzenegger spoke to solar industry professionals at what organizers are calling a “historic” solar power conference, which has shot in attendance from 6,000 people last year to an expected 20,000 this year.

“We must not give in to those that say that environmental goals should take a back seat until our economy comes back,” Schwarzenegger said. “It’s backwards thinking and just plain wrong.”