Why Web host shut down 73,000 blogs a mystery

Blogetery.com, a little-known WordPress platform used by more than 70,000 blogs, was shut down by its Web hosting company more than a week ago and nobody seems willing to say why or who is responsible.

BurstNet, the Web-hosting company, informed Blogetery's operator that service was terminated at the request of some law enforcement agency but wouldn't say which one. As for the reason, BurstNet hasn't made that clear either. In an e-mail to Blogetery's operator, BurstNet managers did say that they had little choice but to terminate service.

"Please note that this was not a typical case in which suspension and notification would be the norm," BurstNet wrote to Blogetery's operator. "This was a critical matter brought to our attention by law enforcement officials. We had to immediately remove the server."

BurstNet executives were not immediately available for comment.


Though BurstNet never indicated Blogetery's problems were caused by copyright violations, TorrentFreak, a blog that covers Web file-sharing issues and broke the story, wrote that the U.S. government may be involved as part of stepped-up antipiracy operations. Nearly three weeks ago, a group of federal law enforcement agencies, including the U.S. District Court for the Southern District of New York and the U.S. Immigration and Customs Enforcement (ICE), a unit of the Department of Homeland Security--seized assets and Web sites belonging to people authorities say operated illegal file-sharing sites. President Obama has said his administration is going to get tough on piracy and counterfeiting.

But on Sunday, a spokeswoman for ICE said "while ICE's Internet piracy enforcement efforts are still very much ongoing, we were not involved with the action."

A spokesman for the Recording Industry Association of America said Sunday that the trade group for the four top record labels had nothing to do with Blogetery's shut down. A spokesman for the Motion Picture Association of America said he had never heard of Blogetery.

That the MPAA and RIAA may not be involved makes sense. Typically, they give warnings before they move like this. They also try to make big news out of any enforcement efforts; they want them to act as deterrents.

And these trade groups have historically had to file lawsuits, spend millions of dollars, and wait years before convincing courts to shut down such sites as TorrentSpy, Isohuntand Napster. If this was a copyright issue, BurstNet would likely have to deal with the Digital Millennium Copyright Act's safe harbor. This a provision designed to protect Web service providers from being held responsible for copyright violations committed by users.

Blogetery's operator said he played by the rules. In the e-mail exchange with BurstNet, the blog platform's operator, said that he always obeyed copyright law. Whenever anyone on his platform was accused of posting links to unauthorized movie or music files, he said he removed the material "within 24 hours."

Sure, there's still lots unanswered questions. We don't know which law enforcement agency is involved. We don't know whether BurstNet disconnected Blogetery with proper cause. We don't know for sure whether the reason for the shut down was due to copyright violations.

But at this point, it sure doesn't appear to be a generic file-sharing issue.

Update 3:20 p.m. PT: In an interview, a BurstNet spokesman declined to identify the law enforcement agency that ordered Blogetery shut down or provide the reason but did say that it had nothing to do with copyright violations.

by Greg Sandoval

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at @sandoCNET. 

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Retaining and managing talent – key to growth

Challenges SMEs face at the developmental stage.

TALENT management is essential for all companies, especially for small and medium-scale enterprises (SMEs), in order for them to grow their business. However, recruiting and retaining talent is always hard for SMEs due to their size and lack of emphasis on staff management.

A lot of SMEs view talent management as a “cost”. This need not necessarily be so. The problem is exacerbated when new generations are not interested to work in SMEs; they prefer to join multinational companies (MNCs).

SMEs tend to take in family members or those within the family. When this is not possible, they employ outsiders.

 

Malaysian Institute of Management (MIM) general council member Zul Baharom says managing talent is a problem for large and small organisations alike.

“In this regard, family-owned businesses suffer the most. A way out of this perilous situation, as seen by early entrepreneurs, is a marriage of convenience. Another fast way out is to maintain family interests,” he tells StarBizWeek.

“This crucial stage of developmental growth often coincides with a period of low profit, which explains why proper talent management development is usually not considered by the owners,” he says.

Zul Baharom: Managing talent is a problem for large and small organisations alike.

 

In situations where small organisations do invest in talent management, the results have been surprisingly positive.

“Take the case of the SMR Group, a family-based small HR training and consultancy company of some 32 years. It grew to become an international enterprise and was later listed on Bursa Malaysia,” he says.

Its founder and owner Dr R. Palan believes that talented people play a key role in ensuring the company’s culture and business to remain “right”.

“This was achieved by a long process of talent management and intervention to get the better managers and consultants in place. Thus, there is a need for third or fourth generations of family owners to develop to the fullest potential, the talent within and re-orienting the company culture and values towards the future development of their businesses,” he says.

Retaining talent

Malaysian Institute of Human Resource Management president Ramley Razalli says it may be difficult for SMEs to secure talent due to the general perception that they lacked success and, therefore, lack stability.

Ramley Razalli: SMEs must select those with entrepreneurial inclination.

 

“However, we have found that SMEs are generally successful and the well-known ones may be able to attract talent, but not necessarily the best,” he says.

SMEs must find avenues to publicise their success stories to be branded, he says.
“Some information technology (IT) companies are successful in recruiting talents. This is perhaps, due to the pioneering spirits of the individuals. They are like artists, and there is a big market for those who are good,” he says.

Ramley says associations should employ human resource experts to assist and guide members.
Meanwhile, SMR HR Group chairman and chief executive officer Dr R. Palan says SMEs have to find innovative ways to secure talent as traditional job hiring approach may not work for them.

“Championing their vision and mission, showing the talent their growth path, will enable the SMEs to win the war for talent,” he says.

He says large corporations may have the ability to offer more but SMEs are nimble; they can offer more on a personal basis. SMEs have to communicate this fact when recruiting, he says. The main and first issue, says Palan, is finding the right person for the right job.

R. Palan: Find innovative ways to secure talent.

 

“The person may be qualified but need not necessarily be suitable for the SMEs. The issue of differentiating competencies for success is an important one,” he says.

SMEs need talent that is in short supply and the Talent Corporation that is being set up in the 10th Malaysia Plan is expected to identify their needs and address them.

“The second problem is one of retention. SMEs don’t have the bandwidth of MNCs or government-linked companies (GLCs) when it comes to compensation and remuneration,” he says.

He says the high employee turnover is an obstacle for SMEs growth, thus SMEs have to consider initiatives such as flexible benefits, employee share options and partnerships.

Talent development spending is unnecessary?

Zul says investment in talent management can help to attract and retain senior management.

“An employee see the company’s commitment in developing talent management as a positive indication of the owner’s effort to expand its business horizons. It goes without saying that a pool of trained and talented professionals will become more engaged and motivated,” he says.

This has a tremendous impact as it enables talented managers to link their future professional career development with the company’s long term business plans.

Palan says talent management and retention will be considered as “expensive” if this is seen as a cost but if good employees are viewed as “an asset”, this can be seen as an investment and value creation.

“In the past, money motivated people but today – purpose, passion and autonomy are strong motivating factors. The carrot and stick approach may no longer be the only way to keep good people and the sooner SMEs recognise that, the better it will be for their bottom line,” he says.

He says SMEs can take advantage of the funds allocated for the development of talent by the Human Resources Development Corp.

New generations prefer MNCs?

MIM’s Zul says young people today tend to view working in an SME or running one’s own business as last resorts, something they will only consider when they are unable to find work in a larger company.

“The preference is to work in MNCs or GLCs because they perceived these organisations as being more stable. They want to get away from the ‘home environment’. This may explain why Felda schemes are still being run by the same people who pioneered the scheme,” he says.

He points out that the majority of SME owners prefer to do everything themselves and distrust the younger generation.

“They will take in family members or those within the family. When this is not possible, they employ outsiders. It is imperative for SME entrepreneurs to set up a pool of talents for succession planning to ensure the survival of family business,” he adds.

Ramley says the selection process is important.
“SMEs must select those with entrepreneurial inclination, those open to multi-tasking, and in some cases those with a nose for marketing but without academic qualifications,” he says.

He says SMEs must employ a different breed of talent unlike those employed by MNCs and large companies.

“Job designing is important in SMEs to ascertain the type of talent required. In doing so, they will be able to search and secure the talents needed,” he says.

Palan says SMEs with the right leadership can offer much.

“Microsoft started with four employees and companies such as Google and Air Asia with less than a dozen employees. They grew into world class large companies,” he says.

By LEE KIAN SEONG
lks@thestar.com.my

Will we ever learn from rough seas and sunk costs?

Give a man a fish and he will eat for a day. Teach a man to fish and he will eat for a lifetime – Chinese proverb

TUNA doesn’t often get caught in the crossfire of criticism against the government and its agencies, but that’s exactly what’s happening. This week, politicians and bloggers brought the glare of scrutiny on two government-linked companies (GLCs), both set up several years ago to grab a slice of the lucrative global tuna market.

In their blogs, Tun Dr Mahathir Mohamad and businessman Syed Akbar Ali targeted Langkawi Tuna Corp Bhd, a wholly-owned subsidiary of Khazanah Nasional Bhd.

Langkawi Tuna was meant to undertake tuna farming in Bukit Malut, Langkawi. The business model was to catch yellowfin tuna in the Indian Ocean, transfer the fish to cages and tow the live haul back to Langkawi, where they would be fattened up over a few months before they were sold. It is understood that about RM50mil was injected into the company as paid-up capital and advances.

In a deal reportedly worth A$4.3mil (RM12mil), it bought four vessels from Australia, including a 30-year-old tuna purse seine boat. However, insiders say the project was a non-starter mainly because Langkawi was too far from the fishing grounds and its waters were not optimal for tuna farming.

There’s no mention of Langkawi Tuna on the Khazanah website, and it’s not among the three key holdings and initiatives in the agriculture sector that were listed in Khazanah’s annual review 2010. It’s understood that the company has ceased operations. Dr Mahathir called it a “failed venture” and a “failed experiment”.

The other GLC is Malaysian International Tuna Port Sdn Bhd (MITP), which was awarded a 32-year concession to manage, operate and develop a tuna port at Batu Maung in Penang. It’s a 60:40 joint venture between Bindforce Sdn Bhd (controlled by Sabah businessman Datuk Annuar Zaini Binyamin) and the Fisheries Development Authority of Malaysia (LKIM), a statutory body under the Agriculture and Agro-based Industry Ministry (MOA).

MITP’s woes have largely stemmed from delays in the port’s final phase of construction, leading to huge cost overruns and a strain on the company’s cash flow. Last November, it failed to pay a profit payment on its RM240mil Islamic bonds.

The bond issuance was backed by a letter of support from the MOA, and this has raised the question whether the Government will now have to bear MITP’s obligations to the bondholders.

Since misery loves company and in keeping with the fisheries theme, let’s bring in a third initiative that has run aground – Konsortium Perikanan Nasional Bhd (KPNB). As the name suggests, the company was formed to spearhead the development of the local fisheries industry.

Says the MOA website: “The mandate of KPNB is to implement effective measures towards the modernisation of fishing fleet, improvements in fish processing, and efficient marketing and distribution activities. In turn, KPNB is expected to act as a catalyst to the growth in investment opportunities of fisheries industry activities.”

It appears that KPNB has debt problems as well. On March 4, it defaulted on a credit facility of RM7.56mil taken from Bank Pertanian Malaysia Bhd.

In addition, one of its indirect shareholders, Oilcorp Bhd, are in financial trouble too and was classified a PN17 company last September.

According to an April 29 announcement to Bursa Malaysia, Oilcorp’s 70% subsidiary, Layar Visi Sdn Bhd, has a 51% stake in KPNB. Oilcorp’s latest audited accounts indicate that the auditors’ report on Layar Visi’s financial statements contained “a disclaimer of opinion on material uncertainties on its ability to continue as a going concern”. Layar Visi has invested RM17.85mil in KPNB.

A common thread with these three fisheries-related projects is that they were part of a wave of enthusiasm for the so-called new agriculture, which involves large-scale farming, the broader use of modern technology (particularly biotechnology and information and communications technology), and the participation of entrepreneurial farmers and skilled workforce.

The Ninth Malaysia Plan embraces new agriculture as a way to boost the sector’s contribution to the Malaysian economy via improved productivity, more emphasis on food production, greater innovation, a deeper capacity to generate wealth and higher exports. The idea was to make agriculture the country’s third engine of economic growth, after manufacturing and services.

These days, it’s hard to hear anybody promoting agriculture with the same gusto and optimism. That in itself is not necessarily a bad thing. Different times and circumstances often call for different strategies and emphases. But the tragedy with Langkawi Tuna, MITP and KPNB is that so much has been spent and yet, there’s so little to show for it. What started out as noble policies have ended up as expensive flops.

There are certainly lessons of a lifetime to be learnt here. Hopefully, we’re not too busy fishing for short-term opportunities to pay attention.

OPTIMISTICALLY CAUTIOUS
By ERROL OH

 Deputy executive editor Errol Oh has no patience for fishing... and ill-conceived and poorly executed businesses.