CodePlex Foundation

I just announced some Interesting news at the work blog. I am now advising Microsoft on open source software strategy. Microsoft? Open source? Yes. I announced my joining the advisory board of the newly minted CodePlex Foundation that was created by Microsoft last week.

CodePlex Foundation: Microsoft, an Open Source Leader? | MindTouch, Inc Blog

Last week I joined the advisory board of the newly created CodePlex Foundation, which was forged in the bowels of Microsoft. Sounds scary doesn’t it?

CodePlex Foundation logoThe foundation, a 501.c6 non-profit, endeavors to increase participation in open source community projects. The intent is to provide a framework for commercial (proprietary) software companies to more easily contribute to open source projects. Specifically, the CodePlex Foundation wishes to help resolve concerns commonly shared among commercial software companies about contributions downstream; such as implied patents, copyright, licensing, etc.

Bing.com Is Growing

While it’s still not even close to being significant relative to Google’s search traffic the traffic from Bing.com continues to grow. What is the most shocking to me is that Bing drives 364% more traffic to MindTouch.com and 10% more traffic ObLOGN.com than Yahoo! search. You read correctly, Bing drives more than three times more traffic than Yahoo! search. Bing.com Search Traffic

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I sound like a total wanker

I’m pretty hesitant to post this. This is really really old (in MindTouch time, it’s actually only a year old) and is a throw back to when MindTouch was solely focused on building community and adoption. Well, we nailed that out of the park and have since layered atop our community-centrism a business and sales unit. Nonetheless, these are our roots and I’m sharing this Microsoft produced video against my better judgment, after all I think I sound like a total wanker…

[youtube=http://www.youtube.com/watch?v=Yuhbktv9pYs&hl=en&fs=1]

I should point out that the message in the video about being the best open source wiki is qualitative and stale. In fact, MindTouch is the MOST popular open source enterprise collaboration platform in the world. MindTouch Deki enjoys millions of users and hundreds of thousands of installations…all in less than three years of a public product wow… According to Sourceforge.net (the most active open source repository) MindTouch Deki is the top .001% of all open source projects.

Here is the Bitrock video. I like there video better. :-) Daniel and Erica are wonderful…oh and they have a great product too.

[youtube=http://www.youtube.com/watch?v=FD406t-ffKk&hl=en&fs=1]
UPDATE: For whatever reasons it seems Microsoft took the videos off YouTube. Got me. Here’s another instance of the MindTouch “documentary”.

Windows Live Writer

2008-04-03_1712 I just read Roy’s blog post about XML-RPC interfaces and client side blog writers. I’ve tried out ScribeFire, which Roy reviews with:

ScribeFire seems *very* *very* unpolished. Their forums are filled with reports, and nobody responding to them. It didn’t seem to work very well with my test Tabulas account, so I’m not exactly filled with hope on that front.

I tried out ScribeFire a few months back and was initially very pleased with it. However, after a couple weeks of fighting with bugs I abandoned the plugin. It was just so damn buggy. Anyway, Roy mentioned Windows Live Writer; so, I downloaded and installed it. This is my first official post with it. Wow! this is frickin’ sweet. This is a really polished product. It’s even elegant, which is a clear indication this product was a Microsoft acquisition. It even has a bunch of useful plugins for things like Flickr, Picasa, paste from Visual Studio with syntax highlighting, and more.

I do have to complain about the install experience. It took forever. I have no idea what it was analyzing, but it "scanned" my computer for minutes. Also, it’s a damn shame Live Writer isn’t still open source as it was prior to the Microsoft acquisition of the company. Why Microsoft felt the need to close source this is beyond me. Doing so only diminishes the value of the product to users and Microsoft. Just idiotic.

Microsoft Gatineau you dirty whore

Since Google “Upgraded” Google Analytics, or as I like to call it “google anal”, I’ve been dissatisfied with the service. To be sure, I was not overly thrilled about the the previous implementation, but as soon as the service went 100% Flash I really was disappointed. Common tasks take me more clicks. The map overlay sucks because you can’t get an overview as easily, and I can’t use the service from my iPhone. In general, the site usability of the site has suffered severely from the upgrade. Also, since the upgrade I’ve been unable to get the site overlay to work so I have no way of analyzing, visually, visitors traffic patterns.

I want a better web analytics package! Don’t tell me that Google’s “free”. It’s not free. I’m giving Google incredibly detailed and valuable information about visitors to my web properties. That’s worth a lot of money when you consider the traffic. This is why when I heard of Microsoft’s upcoming web analytics service code named: “Gatineau” I signed up for the beta and waited for an invite. This invite arrived today. It reads:

Thanks for expressing interest in our new web analytics service, code named: Microsoft “Gatineau.”

Get started today
Follow these instructions to get started with the Gatineau beta today.

1. Go to: http://adcenter.microsoft.com/?key=cb6ad37b-fcf3-4c69-8c89-5b0e19adef7c
Invite code: cb6ad37b-fcf3-4c69-8c89-5b0e19adef7c
2. Click Sign Up Today and create an adCenter account using this e-mail address.* You’ll be charged a one-time, non-refundable $5 fee to set up an adCenter account.
3. After your account is created, you’ll be directed to the Gatineau beta invite sign up page. Follow the instructions to begin using the beta.

Microsoft AdCenter 0

Wait. What? Let me read this again:

* You’ll be charged a one-time, non-refundable $5 fee to set up an adCenter account.

You want me to pay YOU to test your undoubtedly buggy software? I’ll be running your script on my web properties, slowing down my visitors experience because I’ll surely not drop my Urchin script from Google, and you want me to pay you? Even though I’m going to be giving you incredibly detailed information about my visitors. Moreover, you ask me for a lot information about me and my company including a credit card, which gives you access to all kinds of interesting information. Isn’t this payment enough for me to gain the privilege of testing your buggy software? WTF? You should be paying me $5.

Gatineau, you dirty whore, I shall pass.

MindTouch Deki Wiki: DekiScript, Mashups, and More…

Cross post

I think I’m getting better at making these vids. This one seems pretty natural. :-) I quickly cover DekiScript (barely mention it), show a couple mashups, and intro the Desktop Connector.

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Slashdot | Microsoft Should Abandon Vista?

Slashdot | Microsoft Should Abandon Vista?
“An editorial written by Don Reisinger over at CNet’s News.com takes Microsoft to task for the outright failure of Vista. He suggests that Vista may be the downfall of the company as, despite years in development, Vista was delivered to market too early. His suggestion? Support those who are running it, but otherwise ditch Vista and move on. ‘Never before have I seen such an abysmal start to an operating system release. For almost a year, people have been adopting Vista and becoming incensed by how poorly it operates. Not only does it cost too much, it requires more to run than XP, there is still poor driver support … With Mac OS X hot on its tail, Vista is simply not capable of competing at an OS level with some of the best software around. If Microsoft continues down this path, it will be Vista that will bring the software giant to its knees–not Bill Gates’ departure.’”

I’m posting a reference to a post that references the original article with good reason. The comments on this /. post are so damn hilarious, you’ve got to read them.

How fucking dare anyone out there make fun of Vista after all it has been through?

LEAVE IT ALONE! You are lucky it even boots you bastards! LEAVE VISTA ALONE!

LEAVE VISTA ALONE RIGHT NOW. I MEAN IT.

Anyone that has a problem with it you deal with me, because it is not well right now.

LEAVE IT ALONE!

Oh, and the C|Net piece hurts. Hurts bad. If I were Microsoft. Also, I think it’s probably correct; although, I’m not sure this approach would be in the best interest of Microsoft.

Racketeering

The intellectual property racket must end. Intellectual property laws were designed to promote innovation, not to allow monopolists to stifle it. We have an entire generation that has been taught that new ideas have to be “protectable” to be worthy of consideration. Whatever happened to being faster and better than the competition? Do these companies really need a seventeen year head-start? Does Microsoft really need a government-sanctioned sledge-hammer with which to intimidate smaller companies?

Do we, as a society, still need to grant monopolies to companies in order to promote innovation? I’ve never felt I needed a monopoly to be successful; I just needed to be faster than the other guy. I’m a pedal-to-the-metal kind of guy and I’m convinced that I can move forward faster with my own ideas than anyone else can move in trying to copy me.–Dave Dargo

Hell yeah! Excellent post.

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Poster Child

Cross Post

I promised previously to highlight a developer a month. This month I'm highlighting Pete Erickson. I guess this makes Pete our developer of the month. Roy told me he was unwilling to peaceably relinquish his crown. Too bad Roy. It's Pete's turn to shine because he's a superstar and you're old news.

First a little background on Pete. Pete was born and grew up in a teeny tiny village in way northern Minnesota called Roseau.. He attended college at Bethel and then NDSU. He was hired by Great Plains software after school. Pete tells the story of his first week at work. He was informed the company was purchased by Microsoft. He was sufficiently pissed he considered quitting. He didn't though and he continued to work with Microsoft for a couple of years in and out of Redmond, WA. PeteE (as I call him) is passionate about open source and open standards. He enjoys participating in triathlons, biking, hiking, camping, and long walks on the beach with pina coladas. Ok, the last two items I manufactured, but the rest is true.

Open Source Developer Poster Child
 Open Source Developer Poster Child

Pete manages most of our infrastructure stuff. He's probably the best Linux guy we have other than Geoff. He codes mostly in C# although he's recently become adept in PHP. He manages the NOC, all our software packaging, install guides, and upgrade scripts. Mostly recently he's done a lot of work in Hayes on Lucene with search indexing, he wrote the RSS API, and he even wrote a Drupal authentication service for DekiWiki.

Pete was actually the first engineer hired by MindTouch. He was a contractor even before Roy came on as a full time employee. He was introduced to me by his now girlfriend Marianne who was doing some business administration work for MindTouch. Pete literally worked with me out of my windowless basement for a couple of months off and on. Unfortunately Pete still lives in MN. Hopefully his recent surfing expedition in Pacific Beach with Max will entice him to move to San Diego very soon.

Pete blogs on rare occasions too. He's done a nice write-up about the upcoming Hayes Beta2 release. Specifically he highlights:

  • Hayes has a web installer! No @#!t! And PeteE wrote it too.
  • New parser
  • Live data services
  • External Authentication services
  • Extensible storage provider model
  • New indexing service
  • Nicer UI, but I think he means improved presentation layer

Pete's post is a useful read for all you interested Gardeners. Enjoy! Oh, and be sure to click on the photos in this post so you can see the witty Flickr notes I placed on the photos. ;-)

Pete Erickson at OSCON2006

Ted:Seadragon and PhotoSynth

Seadragon promises:

If this sounds a little vague, consider the following four “promises” of Seadragon:

  1. Speed of navigation is independent of the size or number of objects.
  2. Performance depends only on the ratio of bandwidth to pixels on the screen.
  3. Transitions are smooth as butter.
  4. Scaling is near perfect and rapid for screens of any resolution.

You might already know of PhotoSynth. Perhaps prior to it being called PhotoSynth. PhotoSynth promises to change how we share photos and virtually visit places. Seeing is believing.

If you don’t see the video of the demo above go to the Ted page

.

Stunning. Another spectacular technology that Microsoft will likely never allow the public to benefit from. Meanwhile, you have Google Gears released for the world to Beta.

Useful links:

California's Open-Document Bill: AB 1668

Groklaw

I have an email apparently originating from Microsoft asking people to support their opposition to California A.B. 1668 – Open Document Format, Open Source. by writing to the California Assemblymen involved in this bill. This email has contact information for the Assemblymen involved, and a lot of information about their position regarding ODF.

Is this for real? A little background first. The bill in question, AB 1668, says this (in part):

(a) Beginning on or after January 1, 2008, all documents, including, but not
limited to, text, spreadsheets, and presentations, produced by any
state agency shall be created, exchanged, and preserved in an
open extensible markup language-based, XML-based file format,
as specified by the department. When deciding how to implement
this section, the department in its evaluation of open, XML-based
file formats shall consider all of the following features:
(1) Interoperable among diverse internal and external platforms and applications.

(2) Fully published and available royalty-free.

(3) Implemented by multiple vendors.

(4) Controlled by an open industry organization with a well-defined inclusive process for evolution of the standard.

Great. This bill is common sense. This will be in the best interest of any organization, any industry, and technology in general. Massachusetts has already passed a similar bill. The great state of Minnesota attempted a similar bill previously. Now Minnesota is trying again and Texas plans to attempt a similar open standards bill. No one in their right mind would object to any of these bills. Allow me a moment to explain why this is common sense.

Interoperability. This is about content/data being reusable by any application. Your content should be able to be consumed and understood by a variety of systems and applications. This insists that content created and used by the state of California be stored in a format that other systems can understand. This is important for automating things and making content search-able, discover-able, and reusable. Imagine writing an essay in a language only you and five of your college buddies could understand. This is great if it’s some type of secret document. Perhaps the by-laws to your secret society. But this is useless if your essay is content intended to be communicated or collaborated on. This bill asks that our tax dollars not be trapped in a format only a minority of applications can read and operate on.

Royalty free. Why should you pay a royalty on the content you create? You own it. In this case, why should the government be forced to make annual payments to access and edit their data? It makes no sense. Imagine, again, writing an essay. This is the equivalent of you being forced to pay money every time you wanted to read your essay. Also, any time you wished another person to read your essay they too would have to pay to read it. Always, forever. You’re not getting the money. It’s your essay. Where’s the money going? To the company that made the paper and pen you used to write the essay. Absurd, I know. If you have a proprietary format, let’s say Microsoft Word (.doc), you are required to own that application to create, edit, or view content in that format. It is well known in software that users pay, on average, an annual 20% maintenance fee. You don’t just buy Microsoft Office once. In 1989 Microsoft Word 1.0 was released on Microsoft Windows 3.0 and sold for $500. Can you read the files you created using that software? It’s not likely you’re running a Windows 3.0 computer anymore. It’s unlikely you could use Word 1.0 if you wanted to. In order to read the files you created you would have had to have purchased additional versions of Microsoft Word. You are paying royalties on your content right now! It’s absurd. You’re not even paying for support. You’re just paying a royalty to access and edit your content. And so is everyone you share your content with.

Multiple vendors. Buyers will always pay more when they have available only a single supplier for a given product. Users will always be subjected to an inferior product when there exists only a single supplier. This is a kind of innovation tax. It exists because the supplier has no incentive to improve the product beyond incremental improvements to justify a release in order to be able to sell an upgrade. Case in point, Firefox, an open source Internet browser, forced Microsoft to improve Internet Explorer. If it weren’t for Firefox who knows how long we would have had to wait for multi-tab browsing. Without Firefox, Microsoft would have no incentive to improve their product. If there exists multiple vendors the rate of innovation will be superior and thereby the products. Also, the competition will drive down prices.

Open standards. This makes all of the above possible.

Is Microsoft seriously attempting a campaign to kill AB 1668? This would be outrageous! Not only would it be counter to common sense, but the bill doesn’t preclude the use of Microsoft applications anyway. It would just mean that Microsoft would have to use a file format that meets some common sense requirements. Microsoft is currently lobbying for acceptance of its Office Open XML (OOXML) format. ECMA approved this and it’s now before ISO/IEC. The OOXML spec is an unprecedented 6000 pages and is ridiculously contradictory to openness and standards as is evidenced (in part) by:

OOXML does not conform to ISO 8601:2004 "Representation of Dates and Times."  Instead, OOXML section 3.17.4.1, "Date Representation," on page 3305, requires that implementations replicate a Microsoft bug that dictates that 1900 is a leap year, which in fact it isn’t.  Similarly, in order to comply with OOXML, your product would be required to use the WEEKDAY() spreadsheet function, and therefore assign incorrect dates to some days of the week, and also miscalculate the number of days between certain dates.

Similarly, 6.2.3.17 "Embedded Object Alternate Image Requests Types (page 5679) and section 6.4.3.1 "Clipboard Format Types" (page 5738) refer back to Windows Metafiles or Enhanced Metafiles – each of which are proprietary formats that have hard-coded dependencies on the Windows operating system itself.  OOXML should instead have referenced ISO/IEC 8632 "Computer Graphics Metafile" – a platform neutral standard.

Taking the external reference issue further, I’m told that parts of OOXML can’t be implemented by your typical programmer at all without technical assistance from Microsoft, as they refer not only to proprietary Microsoft products, but to undocumented parts of them as well – which violates the General Principles of ISO/IEC Directives, Part 2. 

- Standards Blog

Is this a joke? Why would anyone other than Microsoft want OOXML anyway when we have ODF? I don’t know.

Call to Action:

Contact your state representatives and demand AB 1668 be passed. If you are not a resident of California, Minnesota, or Texas, contact your state representative and demand a similar bill be adopted. Stop this needless waste of our tax dollars. If you live in California, you can use this site to determine your representative by zip code. Every state has a similar website.

Act now! Hearing on AB 1668 in the Assembly Committee on Jobs, Economic Development and the Economy is set for April 17th, presumably in Sacramento.

I sent an email to my two reps and congressman in matter of minutes. For zip 92101, these were:

Senators

Member                 District Number and Office        Capitol Office

Kehoe, Christine       39  2445 Fifth Avenue             State Capitol
                           Suite 200                     Room 4040
                           San Diego, CA 92101           Sacramento, CA 95814
                           (619) 645-3133                (916) 651-4039 

Assembly Members

Member                     District Number and Office     Capitol Office

Salas, Mary            79  678 Third Avenue               State Capitol
                           Suite 105                      Room 2137
                           Chula Vista, CA 91910          Sacramento, Ca
                           (619) 409-7979                 94249-0079
                                                          (916) 319-2079

Saldana, Lori          76  1557 Columbia Street            State Capitol
                           San Diego, CA 92101            Room 5150
                           (619) 645-3090                 Sacramento, Ca
                                                          94249-0076
                                                          (916) 319-2076

I’ll surely post any responses I get here.

External Resources:

The Cell

SteveB recently installed a distributed computing client on his Playstation3 and earlier today shared this wonderful story with me:

The Folding@Home project…uses software programs to simulate the way proteins change shape – the way they fold – within the human body. Correct folding is necessary for proteins to perform their many functions, such as carrying oxygen from lungs, while misfolding can lead to conditions such as Alzheimer’s.

The complex software simulations… require so much computer time that some segments of research can’t be completed within a graduate student’s years at the university. But when the simulations can be downloaded to a PS3, the speed of the research will be multiplied, depending on how many people participate. Pande expects, for example, to shorten the time for some simulations from a year to two weeks.

“It’s a big deal,” said Pande. “Even starting small, the PS3 means a dramatic increase.”

Here’s one scenario: Sony says there are about 1 million PS3 owners in the United States and Canada. If just 10,000 of them (1 percent) download the simulations and run them to completion, the project estimates it will double the computing help it already gets from personal computers around the globe. – San Jose Mercury News

The client for running Folding@Home was released earlier this week and holy crap!

OS Type Current TFLOPS* Active CPUs Total CPUs
Windows 151 159144 1624849
Mac OS X/PowerPC 7 8713 95337
Mac OS X/Intel 7 2716 7204
Linux 35 24959 215690
GPU 41 697 2185
PLAYSTATION®3 346 14138 15079
Total 587 210367 1960344

Folding@Home Client Stats

Yes, you heard me correctly. It was just released earlier this week! Already PS3′s are providing more than twice the processing power of Windows PCs. How is this possible, you might ask, when there are far less active Sony PS3 CPUs? I won’t claim to know a whole lot about the Cell’s CPU arch, which is what powers the Sony PS3. I haven’t taken the time to read up on it, but I have a basic understanding after a quick read. The Cell is really designed to allow CPUs to federate to work cooperatively and share processing, it’s all about distributing processing. Partially this is achieved by processing being sent to hardware cells in the form of software cells that consist of data and programs (known as jobs or apulets). The processing is completed without caching. In the case of the PS3 the Cell consists of a PowerPC chip, which plays the role of the Power Processor Element (PPE) a kind of master CPU and eight Synergistic Processor Elements (SPE) that act as slave processors. Each SPE has a 256 Kbyte “local stores”. These are like are like cache because they are on-chip memory, but behave more like CPU registers. The local stores access main memory in blocks of 1Kb minimum (16Kb maximum), but the SPEs can only operate on local stores and not directly on main memory. This approach is a means of minimizing contention and complexity in order to facilitate distribution of processing and scaling (adding more "cells"). As usual, everything old is new again. A similar architecture was employed with the Cray 2 in 1985, what’s new is 21 years of Moore’s law and how bloody cheap chips are now.

The Cell will almost certainly find its way into a variety of devices, such as PDAs and other consumer goods. Imagine for a moment what this means. We’ll be able to create very powerful distributed computing arrays. My PDA will be capable of supercomputing processing power by distributing. Also think about what the PS3 is going to do for number crunching with projects like Folding@Home. Very, very cool stuff. This is going to dramatically change things. It is important to note that programming to a system that employs an architecture like the Cell is pretty hard. We need an abstraction to improve this. This is actually what I was recruited to help work on at Microsoft back in 2003 when I met SteveB. I surely don’t claim to be an adept on this topic, but SteveB surely is.

New faces at ideapark

Mark Kurtz – Vice President of Client Services
Mark’s been a friend of ideapark for several years and we’re very excited to mix his skills and interests into our group. He brings extensive experience in technology and marketing from both the agency and client perspectives. During his time spent with Seattle-based Garrigan Lyman, Mark worked with clients such as Microsoft, Wall Street Journal, Aveda, Polaris, Nikon, and SAP. As a voracious entrepreneur, he’s started companies in Australia, Singapore and St. Paul. Most recently he served as the Vice President of Marketing and Sales for the wiki wizards at MindTouch (which recently moved to San Diego). Mark’s lived all over the world, but he’s a Midwesterner at heart (we’re hiding the fact that he’s from the Green Bay area for obvious reasons).

- New faces at ideapark

Looks like MarkK’s found a new home. These guys are very fortunate to have him. There have been a couple times in the last week or two in which I said: “yup, that was Mark’s doing”. His positive influence is still felt at MindTouch and both SteveB and I miss him. Mark heading Client Services is a perfect role for him. He’s amazingly adept at creating and maintaining relationships. Because of my intensity I tend to struggle in the maintenance department, which is one of the many reasons why it was so nice to have Mark around.

On the topic of IdeaPark: these guys are very talented. BTW fellas the Hayes release will have a dramatically improved presentation layer for ease of skinning if you have interest in wiki projects for your customers.

NSA Inside

I just saw that the Washington Post ran a story about the NSA “assisting” in securing Windows Vista. Cool, the agency tasked with domestic spying is securing the operating system with 90% market dominance. Good idea. Everyone should install Vista immediately! We should give it away free in China, Korea, and the Middle East. Perhaps Microsoft could get a no-bid contract to do so.

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Kiva Kicks Ass: Become a Loaner Today!

I have been reading about microlenders for a while now. I’ve thought a couple times: man, I wish I could help these lenders, or better yet, be a microlender and finance entrepreneurs myself. I just found Kiva, which allows me to exactly this. It’s amazing. Become a loaner now! You can donate as little as $25 and you select the entrepreneurs you wish to lend to. Tara and I have just lent to two entrepreneurs. The details follow.

Vasil_Mindov

Vasil Mindov

Location: Bourgas, Bulgaria
Activity: Food Production and Sales
Loan Use: To buy a packing machine
Loan Repayment Term Range: 14-18 months

Vasil Mindov has special engineering education but he was not able to find an engineering job so after his graduation he started to work as a restaurant manager. In 1990 he decided to start an own business and opened one of the first grocery stores in the city. Later when the big food chain stores opened their stores in Bourgas Vasil had to close his grocery. Then two years ago he opened a small manufacture for cereal and cornflakes. He has no serious competition and the products he makes are very attractive. Now Vasil Mindov needs a packing machine for his manufacture. The loan amount is $ 2000.

Hamburguesas_Mary

Maria de los Angeles Castellon
Hamburguesas Mary

Location: Nuevo Laredo, Mexico
Activity: Restaurant
Loan Use: Buy ingredients and equipment
Loan Repayment Term Range: 12-18 months

Maria Castellón began her business a year ago; she has a Snack store in which she sells hamburgers, hot dogs, quesadillas, and sodas. She has great season which has allowed her to stay in the market and get more clients, that is why she has planned to buy more ingredients and equipment for her commercial space, so she is soliciting a loan of $1,500.00 that she expects to pay in 1 year.

So, you may think: yah right, you’re never getting this money back! Actually, Kiva to data has a 94% repayment rate. Also, from what I’ve read about microlenders the repayment is typically in the 90 percentile. For the recipients of these loans this could mean entry to middle class and could potentially benefit their families for generations to come.

The following explanation is taken from Kiva’s one-pager explaining itself.

What is Kiva.org?

Kiva’s mission is to connect people through loans for the sake of alleviating global poverty. Leveraging the internet and a worldwide network of microfinance institutions (MFIs), Kiva lets you lend as little as $25 to help fund small businesses run by low-income entrepreneurs around the world.

How does it work?

Kiva’s model is similar to eBay. Microfinance institutions around the world post up profiles of qualified local entrepreneurs online. Lenders can then browse and choose an entrepreneur they wish to fund. Kiva aggregates loan capital from individual lenders and transfers it to MFI partners to disburse and administer. As loan repayments are made by the entrepreneur, the MFI remits funds back to Kiva. Once the loan is fully repaid, Kiva lenders can withdraw their principal or re-loan it to another entrepreneur.

Social Impact

Most of the poor in the developing world are self employed entrepreneurs. A small amount of affordable capital can dramatically change the life of an entrepreneur and their family. Despite
the fact that over 10,000 MFIs exist worldwide, less than 10% of the global poor have access to affordable capital. Kiva connects MFIs to a new source of low cost, flexible capital – individuals. This additional capital helps MFIs reach more clients in their local community.

Early Progress

Since concluding an initial beta round in Uganda in October 2005, Kiva has expanded to MFI partners 11 countries (see map). Kiva has also established key relationships with PayPal (free transactions) and Microsoft (research grant to enhance Kiva’s web interface with MFIs). Kiva has also received significant early coverage in the blogosphere and press. Kiva is on track to raise over $1M from +10,000 internet lenders and expand to 25 countries by the end of 2006.

: I have to point out I discovered Kiva through Mike’s Blog. Also, Mike has offered to match lending for each person that notifies him. He kindly matched my lending for Vasil and Maria. I’ve mentioned Mike here previously, a wonderful fellow.