TechFlash: Seattle's Technology News

January is nearing an end. But before the month closes out, we wanted to share the top 10 most read stories on TechFlash. It was a busy month, from Microsoft layoffs to the Minecode scandal to news that Hearst may pull the plug on the Seattle P-I. February is shaping up as an interesting month, and we'll continue to cover our beats in full force. Thanks to everyone for reading.

Online file storage from ... Dilbert?

Laid-off Microsofties offered free office space, linux servers

Microsoft: Mac Office use is 77%

The good news keeps coming from Amazon.com. After surprising Wall Street with a stellar fourth quarter, the Seattle-based Internet retailer disclosed in its annual regulatory filing late Friday that its employment had risen to 20,700 people as of the end of last month. That translates into net growth of 3,700 people -- the company's biggest annual jump in nearly a decade.

Jambool, a Seattle startup founded by two former Amazon.com engineers, started out developing applications for Facebook. Now it's broadening its business -- building an entire payments platform for social networks.

The company's SocialGold platform allows people to buy virtual goods and currencies on social networks, and gives application developers a dashboard to trace payment data. The platform works with PayPal, Amazon, Google and via mobile phone in more than three dozen countries.

Will the next version of the Kindle be released February 9? TechFlash and other media received an email invitation for an "important Amazon.com press conference" that day at the The Morgan Library & Museum in New York -- and speculation is growing that the company will unveil Kindle 2.0 at the event.

Rumors have circulated about the latest version of the electronic book reader ever since Amazon.com sold out of the original version before Christmas.

Two startups backed by Amazon.com founder Jeff Bezos are reportedly raising new rounds of capital. TechCrunch reports that Twitter -- the popular microblogging service -- is raising a new round at a $250 million valuation. Meanwhile, PEHub.com -- citing a regulatory filing -- says that Indiana search startup ChaCha has raised $11 million of a $30 million round. Bezos invested in Twitter last summer through his Bezos Expeditions fund, while he got involved with ChaCha in early 2007.

What does it take to map the Seattle region's high-tech universe? A lot of time, effort and research.

At least that's the experience of Washington Technology Industry Association President Ken Myer, whose organization embarked on an ambitious journey about a year ago to map hundreds of high-tech companies in the region and their connections to one another. 

The result of that project -- led by Virginia Tech researcher Heike Mayer -- is a fascinating poster and Web site showing 781 companies from the region scattered across a virtual universe. Anchoring the poster are six of Seattle's technology pillars: Microsoft, Amazon.com, Aldus, McCaw Cellular, Boeing and the University of Washington. Microsoft -- represented by a yellow 'planet' at the center of the poster -- is by far the biggest solar system, with four rings and dozens of companies connected to it.

The WTIA will debut the poster and Web site at a Thursday morning reception in Seattle. Tom Alberg of Madrona Venture Group and Ed Lazowska of the University of Washington -- who played a role in a good share of the companies on the poster and were instrumental in its development -- will be on hand to share some of the early war stories of the Seattle tech region. TechFlash is a media sponsor of the Puget Sound Tech Universe.

Julie Rosien

Venture capitalists are paid big bucks to see around corners and figure out what is coming next. So, what are they predicting for 2009? Yesterday, we heard from four Seattle area venture capitalists who shared their thoughts on everything from an Amazon.com purchase of eBay to the continued erosion of Google's stock.

Today, we're hearing the predictions of five others: Bill McAleer of Voyager Capital; Matt McIlwain of Madrona Venture Group; Robert Nelsen of Arch Venture Partners; Brad Silverberg of Ignition Partners; and Steven Hnatiuk of Yaletown Venture Partners. (Our lone Canadian)

Could Microsoft finance a Yahoo buyout involving Silicon Valley executives and investment banks? That's the concept being floated by TechCrunch in the latest chapter of the saga. The complex financial deal would be financed by Microsoft debt to the tune of about $20 billion, TechCrunch reports, citing sources with knowledge of the proposed transaction. To be clear, it doesn't appear as if Microsoft is involved in the talks at this point, with TechCrunch reporting that the deal "absolutely hinges on their involvement." Pipe dream or reality?

Despite the troubles in the economy, The New York Observer finds that Microsoft co-founder Paul Allen continues to spend $384,000 a week maintaining his 414-foot yacht The Octopus. Meanwhile, since we are speaking of $200 million yachts, The New York Social Diary clears the record for incorrectly reporting that Allen's big boat dumped garbage at sea while in Capri a few years ago. [More after the jump]

Agilent Technologies of Santa Clara, Calif., which makes electronic and bioanalytic test and measurement products, said in a pre-Christmas announcement that it planned to cut 800 jobs from its global workforce. Those layoffs now appear to be rippling through Washington. The state sent out a notification of Agilent's plans to cut 120 jobs in Liberty Lake, Wash., effective Jan. 30, 2009. An Agilent corporate spokeswoman referred calls to a company representative in Washington, who could not immediately be reached for comment.

Amazon.com is lining up to tap the surge of interest in President-elect Obama's Jan. 20 inauguration. The company launched an inauguration-themed online store with big-screen TVs and digital recorders for those watching at home, fur-lined hats for those braving the winter cold in Washington, D.C., and Obama action figures and other patriotic paraphernalia. [More after the jump]

Since the debut of TechFlash in late October, we've tried our best to bring you the most compelling stories about the Pacific Northwest technology community. It's been a fun ride and we look forward to continuing the coverage in the new year.  But, first, here's a look back at the most read stories on TechFlash 0f 2008.* What do you like reading? Scoops, scandals and Microsoft executives who quit.

Bill Gates' mysterious new company -- Months after leaving his full time gig at Microsoft the software billionaire forms a new entity called bgC3, described in trademark filings as a "think tank."

Turn your iPhone into a credit card terminal with a $49.99 application -- Derek Del Conte shows off an entirely new way to use the iPhone, turning it into a mobile credit card processing terminal.