disruption

Since it decided to redirect its efforts toward the Internet, one particular company's "stock price has fallen by half, the portion of its revenue derived online has stagnated at about 5% ... and its online division has been losing money since 2005," observes Howard Weaver.

Sounds like a newspaper company? Actually, it's Microsoft.

Interestingly, both Microsoft and the newspaper industry have benefited, however temporarily, from the rise of the Internet.

It should raise some eyebrows that MySQL AB, the Swedish maker of a free database management system, has sold itself to Sun Microsystems at a price that Cnet estimates at (begin Dr. Evil impersonation) one... billion ... dollars. Hopefully it also will open some minds about alternative business models and "low end" innovation.

MySQL's revenue model is best described as "voluntary pay." Anybody can download and use the software at no charge. Businesses are encouraged to sign up for support services, but that's completely optional.

For awhile part of the Sunday morning newspaper-reading ritual at my house has been to dig through the "guy toy" inserts from Lowe's, Home Depot, CompUSA and Best Buy.

Three of those companies are doing pretty well (in fact, Home Depot just opened another store within walking distance of my house). One is doing very poorly: CompUSA, which announced Friday that it's throwing in the towel and will close its stores after the holiday sales.

Oddly enough, there's a lesson in this for newspapers.

In a commentary for the Pew Internet & American Life project, Susannah Fox writes that she's "struck by a phrase repeated a few times: 'good enough' technology."

The phrase actually is a key to understanding disruptive innovation as laid out by Harvard prof Clayton Christensen, and embodied in the NewspaperNext Blueprint for Change.

Like a lot of people, I've been trying to puzzle out Google Video, which launched a week ago to a chorus of boos from reviewers. Apparently they were looking for iTunes-the-next-generation.