Welcome to a bumper edition of the Prompt newsletter.

Is cloud computing the next big thing? IBM seems to think so. We also investigate the BBC's experimentations with in-line links and games companies cracking down on file sharers.

We also report on the launch of Newscred.com, a news aggregator site that's generating a lot of discussion, and reveal why Mygazines.com is upsetting the magazine industry.

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Hazel Butters
CEO
Prompt Communications

Cloud busting investment for Big Blue

By Dave Wilby

Not so long ago, cloud computing was regarded as a blue sky concept, but now it is being seen by many big hitters in IT as the future of technology as a service. The definition of cloud computing remains rather woolly, but think of it as internet-based computing delivered and managed as a business continuity service across virtual servers and networks, and you won't be far out of step with many of your peers.

IBM is certainly convinced by the future of the cloud, demonstrating that belief this week with a $300 million (£161m) investment to equip 13 data centres worldwide with cloud computing infrastructure. Big Blue is convinced the move will provide ultimate peace of mind to large businesses demanding guarantees over data access and security in the event of any major global outage or service disruption. We'll have to wait and see how competitors respond to the company's unprecedented outlay in this emerging market.

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BBC News experiments with in-line links

By Sean McManus

The BBC News website is incorporating links into news stories for a trial period. Until now, the BBC has shunted links to the sidebar, with a stern warning below them that the BBC is not responsible for the content of external websites. Now journalists will be able to incorporate links to background material in their stories, including using content that appears in elegant pop-up windows.

It makes the experience at the site less stop-start and enables people to explore stories more freely, but journalists could have a dilemma deciding which sources to link. This example story includes several links to Wikipedia, which open in pop-up windows to show Wikipedia copy integrated with BBC copy. If you don't already know about Wikipedia, you could easily think that it's BBC content you're reading. The BBC has abandoned nearly all the warnings about where its story ends and an external site begins, but we expect to see disclaimers become more prominent if links are to become a permanent feature of journalists' copy.

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Credible News?

By Becky Cheers

This week saw the launch of Newscred.com, a website which helps readers find only the most credible and reliable news online. The website takes the form of a digital newspaper which aggregates all of the world's most credible news and asks readers to vote on articles. Newscred differs from other news aggregators, such as Digg and Reddit, because readers vote on the credibility of the articles rather than the popularity. Newscred’s algorithms then analyze this data and use it to provide headlines based on quality and credibility.

The site's press release claims that, "Newscred provides a platform for news readers and journalists to come together and use the latest Web 2.0 technologies to help improve transparency and accountability in the new media industry", which many believe is a great idea in theory, but remarkably hard to achieve in practice. Rory Cellan-Jones from the BBC technology blog says that the biggest threat to Newscred will be lobby groups and obsessives who will use the site to judge the credibility of news according to their own prejudices. However, co founder of the site, Iraj Islam is more optimistic believing in the 'wisdom of the crowds'.

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Firefox hot on heels of IE

By James Gerber

Webmonkey reports that according to the latest browser statistics, Firefox could surpass Internet Explorer as the leading browser within the next year. In the group of users that were surveyed, Firefox has a market share only 9% below IE at present and within the past year has grown by 8.1%. IE, on the other hand, has slipped 5.3% in that same period.

Matt Asay retorts that the study was using slightly misleading numbers, because it sampled techies instead of mainstream users. However, those techies tend to be early adopters of technology that leads the mainstream. The more hardcore techies evangelize about Firefox (as I myself do) and the many advantages it has, the more mainstream users will hear about its benefits and adopt it. While unlikely that Firefox will really surpass IE in the mainstream within the next year, it is a sign of changing times.

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Mygazine vs the magazine

By Tarryn Landman

When it announced the launch of its beta edition at the end of July, article sharing site Mygazines.com said that it intends to work with the magazine industry "with the aim of fortifying the future of all those either directly or indirectly supported by the production, sales and distribution of magazines." There has since been significant backlash from the US magazine industry however. Recent articles have questioned the legality of the service, with some going as far as to equate it to the old Napster.

The issue lies in the fact that Mygazines allows readers to copy, upload, share and archive in their entirety dozens of popular magazines, including People, Men's Health, and The Economist. The high-quality digital copies are currently available for free to Mygazines' estimated 16,000 members.

According to legal experts, Mygazines is operating in violation of US copyright laws, but because the domain name is registered in Anguilla, a British overseas territory outside of the jurisdiction of U.S. copyright law, and the website is hosted in Sweden, it would be difficult for publishers to successfully pursue legal action against Mygazines' owners. Even so, several magazine publishers, including Time Warner Inc.'s Time division, are considering taking legal action against Mygazines anyway.

As with other media, the magazine industry will inevitably have to adapt to the expansion of web 2.0 and the evolution of technology like smart phones and the Kindle. The launch of YouTube, for example, exploded a similar controversy in the television and film industries, forcing many broadcasters to expand their online services and fuelling the growth of sites like Hulu.com. Regardless of its legitimacy, Mygazines has no doubt nudged the magazine industry closer to finding new ways to connect with consumers amidst declining sales and falling advertising revenues.

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Game over for illegal downloaders?

By Dave Wilby

If you thought the music industry was beginning to get tetchy and threatening over the illegal downloading issue, the games industry proved this week that it is prepared to forgo all the chitchat to come out swinging and waving hefty financial settlement demands.

Among other mainstream media, TimesOnline reported that five of the world's top games developers would begin serving notice to 25,000 individuals across the UK who they believe to have downloaded games titles illegally. Codemasters, Atari, Topware Interactive, Reality Pump and Techland are all demanding £300 out of court settlements from owners of stolen copies of The Lord of the Rings, Colin McRae Rally, Operation Flashpoint and other titles, before taking legal action even further.

A few rapid searches this week on some of the web's most popular torrent search engines, such as The Pirate Bay, quickly revealed all of these titles and many more recent releases seemingly still available for illegal download; many conveniently bundled with unpacking tools and security cracks. It isn't yet apparent how much, if any, cooperation the games developers will have from ISPs as this action progresses.