Zonbu, a 2006 Silicon Valley startup founded by Alain Rossman and Gregoire Gentil, has released the $99 Zonbox. Described as a zero-emissions computer, the fanless low-power Zonbox runs on an Intel compatible 1.2Mhz CPU, 512 MB RAM, and a 4GB flash drive - all contained in a small form factor case. Not much space for your files, right? Well, on top of your $99, you will also need to pony up a monthly subscription fee which automatically backups your data over an Internet connection onto Zonbu’s servers. Starting at $12.95/month and going as high as $19.95/month, storage options range from 25GB to 100GB. If you don’t want to agree to a two year subscription agreement, and would rather pay month-to-month, your $99 Zonbox becomes your $249 Zonbox. That’s getting real close to an entry level PC from any of the major manufacturers, as well as halfway to an equally small iMac with far better specs and no subscription.
The Zonbox really doesn’t excite me. It’s hard for me to figure out exactly who they’re targeting. The three big draws for the Zonbox are size, online backup, and low-energy consumption. Because of the locked-in nature of it’s less-than-stellar components, the Zonbox is not very attractive to anyone other than novice user’s who don’t use a computer for much more than checking email, surfing a couple of websites, and occasionally typing a letter. But how attractive will Zonbox be to such users when they learn it runs on that strange geek-worshiped OS called Linux? Doesn’t Apple already court those users? On that note, though, co-founder Alain Rossman is an Apple veteran who was behind the original Macintosh marketing – so if it can be done Rossman certainly has the proven track record.
The biggest sticking point for me is the subscription plan. It doesn’t take a math genius to realize as time goes on the cost of ownership increases dramatically with the Zonbox compared to a standard PC/Mac. The subscription model also scares off experienced users who might look at the Zonbox as a third or fourth computer to have around just for fun. A silent, Linux based thin client for the bathroom anyone? For the Zonbox to succeed I think Zonbu has to find a different pricing model or begin a costly product revamp. Where the Zonbox can find a profitable niche in today’s market is beyond me. If you’ve got an opinion, leave a comment and let me know. Read more about the Zonbox.
Yesterday, Google made ‘Google Gears’ available for open beta testing. An open source browser extension, Google Gears lets users access online applications even when they’re not connected to the net. Currently, Google Gears works with Google Reader, Google’s RSS feed aggregator, and will presumably soon work with Google Docs & Spreadsheets and Gmail. Google Gears tackles the biggest stumbling block to convincing users to give online apps a serious look. If all you need to create and use office documents and email, whether online or offline, is a free Google account, Microsoft may find its Office monopoly in jeopardy. If you can’t wait to try Google Gears 
Last.fm has announced that CBS has purchased the London-based music site. Reportedly, CBS payed $280 million to bring Last.fm’s user base into their fold. With Last.fm, CBS gains a foothold in the trendy social networking scene thats exploding across the net. Last.fm not only lets user’s listen to music, but it also provides music suggestions based on what other users with similar tastes are listening to. In addition to music suggestions, Last.fm makes it easy to find info about artists and find local gigs by musicians a user may enjoy. What’s interesting about this story is that CBS chose to go through with the purchase at the same time the FCC is expected to approve higher copyright fees for websites that stream music. Many sites fear they’ll have to stop offering free music streaming if these changes go through since few sites could cover the increased rates with current advertising revenue. To make back their investment and cover the new fees CBS will have to make some changes to Last.fm unless they expect to run the site under a deficit. At the very least, Last.fm users can expect more advertising and possibly the addition of a premium subscription service. But CBS would have to be very careful to keep from driving away too many users under a pay to play scheme. 
For the first time in it’s twenty three years, Dell is trying to find sales through avenues other than the direct-to-customer model. Dell and Wal-Mart have agreed to offer two Dimension desktop models through Wal-Mart’s 3,000 North American stores. Rather than a one-time limited experiment, Dell says it plans expand further into the retail market in the future. Given Dell’s decreasing shipments over the past couple of years, the push into retail seems almost inevitable. However, the question is whether Dell can succeed where other direct-to-customer companies who explored retail failed. Remember Apple and Gateway’s retail experience? Dell’s strength has always been the customization options it offers customers. By going retail with fixed spec computers Dell has to compete on the price point. That may prove a tough task, though, since Wal-Mart sells several low price computer brands through it’s outlets and Dell will have to find its place among them. Don’t be surprised if in a couple of years Dell retreats from retail with its tail between its legs.
Facebook held a developer event today to announce the ‘Facebook Platform’. The new API gives developers access to Facebook’s inner workings to create innovative applications users can add to their Facebook pages. Over 70 companies such as Microsoft, Amazon, Washington Post, Digg, and Snapvine have announced they’ll develop third-party applications for Facebook. This announcement is further proof that Facebook is trying top differentiate itself from the crowded social networking scene. Facebook has over 20 million users and continues to grow by 100,000 users a week. The fastest group of users are 25 or over, changing Facebook’s reputation as a digital hang out mainly made up of teenagers. The third-party plug-ins developed using the new API should further attract older Internet users and diversify Facebook’s base. Read more about 