iMedExchange continues to climb the Seattle Startup Index... without yet even trying! I'm not sure what this says about the Index but I'll opt for the charitable view: i.e., that we're moving up in advance of our formal attempt to recruit members simply because we've captured the imagination of our market place. In any case, we continue to fire on all cylinders and are gathering lots of momentum. The results from January: we moved up five positions to 138 out of 260 on the overall ranking, 25 out of 39 in the Web Business to Business category (WBB) and 124 out of 206 among all web-based startups. We'll continue to have fun watching our ranking, especially as we begin to actively seek out new members.

As an aside, I noticed that skillbit (the company founded by the Seattle Startup Weekend that I mentioned in my last post) debuted at position 134 out of 260 -- actually ahead of iMedExchange! I know that the skillbit team has some smart folks working to ensure search engine optimization (SEO) so this shouldn't surprise anyone. That said, I consider it a worthy challenge to chase them up the ranks. ;)

As President of iMedExchange, I follow most of the happenings among Internet-related businesses in order to understand how innovation occurs in our industry. Internet-related businesses are a terrific example of an extremely large and consequential industry that is still very much influenced by individual innovators.
Recently this same industry has been making quite a fuss about the Microsoft offer for Yahoo, and then of course Google’s offer of assistance to Yahoo to escape the clutches of Microsoft. What is really going on here, I asked myself. Is Google really trying to help Yahoo to avoid falling prey to a $46 Billion acquisition?
Without too much preamble, let’s be clear. This is not necessarily the worst thing from Google’s vantage point. Consider, if you would, a bit of whimsical or at the least, a counter-intuitive and more Machiavellian explanation of the behavior we are witnessing.
First, why does one think Microsoft is trying to buy Yahoo? Obviously, for the same reason they bought aQuantive, the Seattle-based online advertising company. It’s a helluva lot easier to buy than build when you’ve got a ton of cash(last I heard, Microsoft generates more than $1 Billion per month in free cash flow) as well as an inadequate supply of people who are experienced innovators and builders of internet related businesses. Lest we forget, Microsoft was late to the Internet party, although extremely successful at being the second or even third entrant in a number of related technologies and businesses.
Second, if Yahoo is acquired, then all of those innovative people who know a great deal about Internet advertising are going to receive a “boat-load” of money, presumably from having their stock options become more valuable than was the case before Microsoft’s bid. Some of them may be either enticed or locked in by Microsoft for some period of time, but some will depart out the back door with wheel barrels of green stuff. Those that remain may or may not get absorbed into the Microsoft bureaucracy; and they may or may not be able to continue to innovate, a la Yahoo; at least before Google’s search engine began to drive Yahoo’s value down.
So, if you’re Google, maybe it would be better for Yahoo to get acquired and have the human talent still employed there be diluted and or disappear into the annals of business history. If you’re a player at Google and you believe that, how would you raise the likelihood of this happening?
First thing you would do is let everyone know you’re against the merger. That way the Department of Justice is likely to let it go through, since Google has such a high market share of online advertising (nearly two thirds of the market) and the prospect of a Microsoft/Yahoo merger doesn’t even come close to 33% of Google’s share; and if Google is afraid of this combination, then it must be good for competition.
Second thing you would do is offer aid to Yahoo. This further confirms, in the public eye, your fear of the merger. It also suggests to Yahoo that they still have significant market value and that their Board of Directors should refuse the offer (which is exactly what they just did) in order to either remain an independent company or get a better offer.
Let’s face it, a higher offer would be Yahoo’s best and most desirable scenario, since they’ve been steadily losing the war to Google. They don’t have pockets as deep as Microsoft’s, and their shareholders are crying foul regarding the management of the firm over the last few years as Yahoo market value has fallen.
So, if you, being Google, want to retain your dominance of the online marketing world, what better way to do it then to have your erstwhile enemy up north in Washington acquire your nearest competitor? Further, why not use some non-intuitive reverse psychology to motivate the “kids” to act according to your real wishes. Tell the world you don’t want what you really do want to happen. Everyone will think you’ve been fooled or beaten when it comes to pass; everyone, except those people who better understand your self-interest and the importance of innovators on the Internet. Or perhaps this is all just whimsy. After all, who knows what lurks in the minds of Billionaires in Redmond or Silicon Valley?

iMedExchange is working hard to create the most useful online place for physicians. To that end, we just opened our Palo Alto, California office. This office creates a strategic presence for the company in the heart of Silicon Valley and gives us access to some of the top web development and Internet marketing talent on the planet. Now, we get the best of two top-tier technology markets in Seattle and Silicon Valley.

For the past 6 months the team has worked in an interim facility in the heart of San Francisco, but growth of the team required a larger more accessible space. Congratulations to Chip Vanek, our VP of Engineering and the growing team based in Palo Alto, CA!

If you believe Bill Gates, as we do here at iMedExchange, the future of the Internet is intrinsically tied to advertising.

We think this fundamental shift in advertising is not only significant for the future of the Web…but one that can greatly benefit consumers. It benefits the user because high-value content and experiences can be consumed with little to no out-of-pocket expense. Further, the user is always in control.

In a recent blog post, Guy Kawasaki presents some observations about the recently released Avenue A/Razorfish (now Microsoft) 2008 Digital Outlook Report. This report is closely watched throughout the advertising industry and it provides keen analysis of where the market has been and insight into where it’s going.

While we generally like to let our actions do our bidding, I can confidently commit to this: the new ecosystem we are about to release, exclusively for physicians, will leverage some of the key shifts already underway in the online world, and expand them, to present a very valuable new model for both the advertiser/partner and physician/member alike.

Wanna make sure you are part of the movement? Physicians – become a member now. It’s free and easy. Potential Clinical, Business and Leisure resources – contact us to learn how you can join our growing group of partners and become a valuable contributor to this community.

As of today we have physicians using iMedExchange from 43 of the states. This is a call out to all of you in the remaining 7 states - Delaware, Idaho, New Mexico, Nebraska, South Dakota, Utah, and Wyoming - to come join us! I'll keep you updated on our countdown to all 50 states.