Tag: Michael Dell (Page 2 of 2)

Just Innovate, says Visionary Elon Musk

By LAURA LOREK
Founder of Silicon Hills News

BbWDU6vCMAAmfHNAt Dell World, Elon Musk discussed how he’s changing the world through electric cars and space exploration.
Musk is a true leader, a risk taker and a visionary, said Michael Dell in his introduction.
“A passionate believer in technology and innovation to lead society forward,” Dell said.
Musk arrived for his keynote address at Dell World at the Austin Convention Center in a bright red Tesla with the song “Baby You Can Drive My Car” blaring from the auditorium speakers.
David Kirkpatrick, founder of Techonomy, interviewed Musk and asked him what motivates him.
Musk, cofounder of PayPal, founder of SpaceX and Tesla Motors, said he likes technology and things that have the potential to change the world in a positive way.
“There needed to be an acceleration of electric vehicles,” Musk said. “If it was left up to the big car companies we wouldn’t see electric cars, at least not for a long time.”
The movie, “Who Killed the Electric Car” which documents how General Motors crushed the development of the EV1 in the mid-1990s, also motivated Musk to create Tesla, which almost led him into bankruptcy.
Musk recounted how he closed on the financing to keep Tesla in business in the last hour of the last day before he would have to file for bankruptcy. It was Christmas eve in 2008, he said.
“We would have gone bankrupt if we didn’t close the round,” he said.
Musk had put all of his money into Tesla and he even had to borrow money for living expenses from friends. Even though he believed in the company’s mission, he didn’t know whether the company would make it. But he saw a need for electric cars sooner and not later.
To reduce the impact of carbon emissions on the world’s atmosphere, people have to act early, Musk said.
Tesla manufactures about 600 vehicles per week, Musk said. It makes a sports car, which costs more than $120,000 and a luxury sedan.
“I don’t know a rich person that doesn’t have one or want one,” said Kirkpatrick.
Musk also showed a video of highlights from SpaceX, which designs and makes spacecraft and rockets. He splits his time between running SpaceX and Tesla Motors.
“You’re succeeding where governments have failed,” Kirkpatrick said.
Musk said he’s had some good fortune, which has helped him to pursue his ventures. He’s also worked with talented people, he said.
“If you can get a group of really talented people together and unite them around the challenge, and have them work to the best of their abilities, then the company will achieve great things,” Musk said.
Musk has money, which has helped him, Kirkpatrick said. But there are a lot of people with money who don’t have the vision and the will and who don’t apply themselves to change the world like Musk has done, he said.
“I think people self limit more than they realize,” Musk said.
The number one thing people should do is they should just try to innovate, he said. It’s also beneficial to cross-pollinate across different industries, Musk said. That can provide unique insights, he said.
Later in the interview, Dell joined the two on stage. He said the world needs more people like Musk out there taking big risks.
Dell also has a Tesla. He ordered it and one day it just showed up at his house. He enjoys driving it, he said. Dell also had a Tesla on display at its exhibits showcase at the event.
Tesla is a public company, but Musk said he doesn’t spend a lot of time thinking about the stock price.
“It’s a distraction,” he said.
The stock market is “manic depressive,” Musk said.
Musk also said the public should collectively seek to advance the state of media today. He called mainstream, traditional newspapers, a “microscope on misery.” He said the media seem bent on finding and promoting the worst possible things that happen every day. The news is actually much more positive than what’s portrayed in the daily newspaper, he said.
“I get my news on Twitter,” Musk said.
Dell said he uses news feeds and alerts to stay on top of the news online.

Seven Companies to Pitch to Michael Dell at DellWorld

images-3Dell’s first Pitch Slam takes place Thursday afternoon at Dell World in downtown Austin.
Dell chose six companies from regional pitch events and a final company via an online pitch contest to pitch their businesses to Michael Dell, Shark Tank’s Daymond John and the UN Foundation’s Resident Entrepreneur Elizabeth Gore.
The event is being livestreamed by Dell starting at 2 p.m. Central time.
The companies include:

Guavus, won Dell’s online contest for the final spot in the contest. It is a Silicon Valley-based big data analytics company.

Neverware based in New York, creates a box loaded with special software that connect to a school’s network to allow old computers to run the latest applications. It is in 100 schools in the New York area right now.

Nebula, based in Silicon Valley, creates cloud computing solutions that allow companies to “easily, securely and inexpensively deploy scale-out private cloud computing infrastructures from racks of industry‐standard servers.”

SimpleRelevance, based in Chicago, has created social media software for companies that can distinguish sentiment in online posts.

ihiji, based in Austin, offers a “zero maintenance cloud-based remote network management solution for IT professionals and technology integrators.”

Bottlenose, based in Los Angeles, has created social media monitoring software for companies.

Fantoo based in London, has developed “software that turns mundane, cluttered inboxes into an interactive, pleasant environment.”

The New Dell is More Entrepreneurial and Innovative

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By LAURA LOREK
Founder of Silicon Hills News

At Dell World, Michael Dell unveiled his new, private innovative and entrepreneurial technology company.
The Round Rock-based company, which employs about 14,000 people in Central Texas, no longer has to adhere to the demands of the public stock market.
As a result, Dell said the company can invest in new startups and take a long term view on innovation.
Earlier this year, Dell took the company private in a $25 billion buyout deal which left him with a 75 percent ownership stake. Silver Lake Partners controls the rest.
And the “world’s largest startup” kicked off its new outlook by announcing a $300 million Dell Ventures fund, which will invest in early to growth stage companies. Already, Dell has invested in 14 companies. It expects to invest $60 million within the next three to five years.
Dell also announced new partnerships with Dropbox, Google, Microsoft Azure, Accenture and Red Hat OpenStack to develop new products for the Cloud.
Dell is not abandoning its hardware business, Dell said, during a press conference following his keynote talk at Dell World. This is the third year Dell has hosted Dell World, but its first time as a private company. About 6,000 people are attending the three day conference, which ends Friday at the Austin Convention Center.
During his morning keynote address, Dell outlined the company’s strategy as a private company. It’s a lot like the strategy he has outlined since 2008 when the company began acquiring software and other businesses to complement its technology and expand its services and solutions business.
“We’re disrupting and democratizing software, services and solutions, the way we did PCs and servers.” Dell said. “And we’ve seen the power of technology to enfranchise and empower people. And today the forces of cloud, mobility, social, big data, security are creating a new model for technology, in fact, a new model for society.”
“They’re the foundation of the modern infrastructure, the highways, the bridges, the telephone lines, the airports of the 21st Century,” Dell said. “Connecting and networking our world. And now we’re going to do what Dell does best. We’re going to innovate and make the technology behind these forces more accessible, more affordable, easier to own, easier to capture value from and easier to operate.”
Dell will focus on helping entrepreneurial ventures launch and expand, along with small businesses, and it also will focus on improving and supporting large enterprises. The company also plans to collaborate more and focus on the global economy.
Dell has been pursuing this vision with a consistent strategy for the last five years. It has invested $13 billion to diversify its business and to offer more software, services and cloud solutions to its customers. Dell has doubled its solutions business from $10 billion to $20 billion.
As a private company, Dell can accelerate its strategy and take a longer-term view of innovation.
Dell announced two new programs focused on innovation at Dell World.
The first program is an internal or organic innovation program through the Dell research division focused on disruptive technology, Dell said. It has a long-range focus of five to ten years out, Dell said. It will also collaborate with leading research institutions to harvest the latest technology.
The second announcement is the $300 million Dell Venture Fund focused on early to growth stage companies in core technology areas. Dell plans to make investments in its four core business groups: end user computing, enterprise solutions, software and services.
“At Dell our commitment to innovation has never been greater,” Dell said.
Despite all the changes, Dell is also still committed to its hardware business of PCs, tablets and servers.
The server is becoming the center of the data center and Dell plans to be number one in market share worldwide, Dell said.
“We’re in it to win it,” he said.
Beyond that, Dell has dramatically expanded its capabilities in storage, networking and security.
“The real innovation comes when you combine these together,” Dell said.
At the heart of Dell’s new initiatives is the cloud.
“The cloud is the new model for tech,” Dell said. “At Dell, we’re making sure you’re positioned to be in a Cloud-based world.”
Dell also announced a new partnership with Red Hat to co-engineer products for Openstack, the free cloud-based architecture.

Billionaire Mark Cuban likes to “Party Like a Rock Star” and Invest in Startups

Josh Baer, Bob Metcalfe, instructors with Longhorn Startup and Mark Cuban

Josh Baer, Bob Metcalfe, instructors with Longhorn Startup and Mark Cuban


By LAURA LOREK
Founder of Silicon Hills News

Since selling Broadcast.com to Yahoo for $5.7 billion in 1999, Billionaire Mark Cuban has invested in 80 startups.
But his entrepreneurial ventures began as a kid growing up in Pittsburgh.
“As long as I can remember I was an entrepreneur,” Cuban said.
At the age of nine and ten, Cuban packaged baseball cards and sold them to his friends.
At 12, he wanted new basketball shoes. His dad told him that his tennis shoes were just fine and when he had a job he could buy any kind of shoes he wanted. A family friend had some garbage bags he wanted to get rid of and offered them to Cuban. So Cuban sold them door-to-door to earn enough money to buy the basketball shoes.
Cuban recounted the story Thursday night before a packed audience of more than 800 people at the University of Texas Longhorn Startup’s Demo Day. The semester-long course for undergraduates at UT aims to teach them entrepreneurial skills and how to found a startup. One of its instructors, Bob Metcalfe, professor of innovation at UT, Ethernet inventor and co-founder of 3Com, interviewed Cuban at the Lady Bird Johnson Auditorium following pitches by 14 student-run startups.
During the hour-long talk, Cuban provided insights into his entrepreneurial journey and lessons learned along the way.
Early on, if it wasn’t garbage bags, it would have been something else, Cuban said.
At 16, Cuban’s mom introduced him to stamp collecting. He consumed information about stamps. At stamp shows, Cuban would buy a stamp from one dealer for 50 cents and walk down to the other side of the show and sell it for $50. Selling stamps helped him pay for school.

Cuban’s College Years

He left Mt. Lebanon High School early because he couldn’t take business classes. He went to the University of Pittsburgh and took classes. He earned enough credits to finish high school. He ended up transferring to the Kelley School of Business. He researched and discovered it was one of the top ten business schools in the country and it had the lowest tuition. At Indiana University in Bloomington, Cuban earned his undergraduate degree in business. He also did a year and a half of his MBA.
“I wanted to take all the hardest classes that I could my freshman and sophomore years and I promised myself I wouldn’t drink and then my junior and senior years when I was 21 I would take all the easy classes and party like a maniac,” Cuban said. “And that’s what I did.”
He also ran a bar in college, which went out of business.
After he left college, Cuban worked for nine months for Mellon Bank in Pittsburgh. He learned how to program there in Fortran. But he didn’t like banking much so he moved to Dallas.

Moving to Dallas

When Metcalfe asked him why, Cuban said “For fun, sun, money and women.”
He had friends who moved to Dallas. He liked the tropical climate. He lived in the village with six guys in a three-bedroom apartment and he slept on the floor.
“I loved every minute of it,” Cuban said.
He worked as a bartender at night. He bought a Texas Instruments 99/4A computer and taught himself to program. He really liked it. Then he got a job at Your Business Software, a retail store, selling Peachtree software and different applications. He did that for nine months and then he got fired. That’s when he started his own PC and software consulting business called MicroSolutions. They set up PCs and software for businesses and set up local area networks.

The crowd clamoring to get a picture with Mark Cuban and Bob Metcalfe at the end of Longhorn Startup Demo Day

The crowd clamoring to get a picture with Mark Cuban and Bob Metcalfe at the end of Longhorn Startup Demo Day

At the same time Cuban ran MicroSolutions, a kid in Austin was launching a PC business, Metcalfe said. He asked Cuban if he ever ran into him.
That prompted Cuban to talk about the importance of history in understanding the world today.
“One of the things kids are missing today is a sense of history,” Cuban said. They Google something and if it doesn’t come up in Google, it didn’t happen. But there’s a ton of stuff that isn’t in Google, Cuban said. What kids don’t know is if the companies went out of business, their servers aren’t online anymore and they can’t find out about them. Entrepreneurs need to dig deeper to find information on people who have tried an idea and failed at it so they don’t repeat those same mistakes, he said.
Yet one of the most brilliant things Cuban learned from was this kid in Austin who would post the price of generic computer parts in PC Week Magazine. Cuban drove down to Austin and bought a bunch of computer parts directly from him. When he got back to Dallas, Cuban wrote him a letter.
“Michael, if you keep this up, things will go really well for you,” Cuban said. That kid, of course, was Billionaire Michael Dell. Today, they still crack up about it, Cuban said.
“How did you decide to sell your company to CompuServe?” Metcalfe asked.
“They offered, and I said yes,” Cuban said.
He wanted to retire by the time he was 35. MicroSolutions had $30 million a year in revenue and was very profitable, Cuban said. He sold the company to CompuServe for $6 million. After that he worked for them for a little bit. But then he got a lifetime pass on American Airlines, he retired and “partied like a rock star.”

The founding of AudioNet, later to be renamed Broadcast.com

Cuban and his friend Todd Wagner started AudioNet so they could listen to Indiana basketball games on the Internet. They started the company in the second bedroom of Cuban’s house.
Cuban had a $39 Video Cassette Recorder that recorded for eight hours. He would record radio stations and then import that programming into his computer and eventually post it to the Internet. They had 600 to 700 radio stations that they would post online. The company had tens of thousands of hours of audio content online and more than one million visitors daily coming to the site to listen to it.
Cuban and Wagner started AudioNet in 1995, the same year that Netscape went public. They sold it four years later to Yahoo for $5.7 billion in stock.
In 2000, Cuban spent $285 million of his fortune to buy the Dallas Mavericks National Basketball Association team from Ross Perot Jr.
Cuban always loved basketball. He didn’t play in high school though. He said he was five foot eight and weighed 240 pounds in high school. Today, he’s six foot three and weighs 205 pounds.
The Mavs are a different type of entity, Cuban said. The team is unlike any business he has ever run. Even though he writes the checks, the team belongs to the community, he said. In 2011, the Dallas Mavericks became NBA champions. To turn the team around, Cuban focused on putting players in a position to succeed.
In addition to owning the Dallas Mavericks, Cuban also stars on the popular television show Shark Tank on ABC which features entrepreneurs pitching venture capitalists with the hopes of landing an investment.
“It’s a lot of work,” Cuban said.
The so-called “Sharks,” successful businessmen and women who invest their own money, don’t know anything about the people who pitch to them, Cuban said. What takes just 10 minutes of TV time, though, can take two and half-hours of interrogation off camera, Cuban said.
The investors, or Sharks, are allowed to do due-diligence after they invest in the companies. In fact, one time Cuban made an investment in a woman’s company but her husband didn’t believe in paying taxes and hadn’t ever paid them, Cuban said. So he was able to get out of that deal.
Out of the 80 startups Cuban has invested in, 28 came from Shark Tank pitches.

Mark Cuban and the rest of the cast of Shark Tank, photo courtesy of Shark Tank

Mark Cuban and the rest of the cast of Shark Tank, photo courtesy of Shark Tank

“Shark Tank has really ignited the entrepreneurial fire in a lot people,” Cuban said. “It’s really inspired a lot of people to start their own businesses.”
Out of his 28 investments, Cuban has had one company fail and another that should shut down, he said. But the others are either dragging along or doing very well, he said.
“Shark Tank is the most successful one hour selling platform in the world,” Cuban said. Lani Lazzari, owner of Simple Sugars, sold nearly $1 million worth of her body scrub products after being featured on the show for 10 minutes, Cuban said. He invested $100,000 for a 33 percent stake in her company. She recently turned down a buyout offer. She wants to get to $30 million in annual revenue, he said.
Now is an amazing time to start a business, Cuban said. With a laptop, phone, Internet connection and Amazon account, people can create any kind of business, Cuban said.

Entrepreneurs only fail because of lack of effort and brains

“The one thing in our lives every entrepreneur can control is effort,” Cuban said. Companies don’t fail for lack of anything but lack of effort and brains, he said.
The biggest error companies pitching to Cuban make is that they don’t have any sense of history, he said. Some entrepreneurs also underestimate the amount of effort it takes to turn their ideas into reality.
“It takes time, it’s a grind,” Cuban said. “There are no shortcuts. You’ve got to grind and grind.”

Mark Cuban meets the team behind The Zebra, an Austin startup he invested in but has never met in person until Longhorn Startup Demo Day.

Mark Cuban meets the team behind The Zebra, an Austin startup he invested in but has never met in person until Longhorn Startup Demo Day.

Entrepreneurs need to learn from what’s been done before, Cuban said. He likes to retweet articles on business failures so people can learn from them. That information becomes more valuable because it’s harder to find, Cuban said.

The luckiest guy in the world

An audience member asked Cuban what he regrets not doing.
“It’s turned out pretty well – nothing,” Cuban said. “Someone’s got to be the luckiest guy in the world and luck has played a big part in the level of my success. And I’m just glad it’s me.”
To pitch Cuban, send him an email to MCuban@gmail.com. He reads the first paragraph and if he’s interested, he’ll read more and send the entrepreneur some follow up questions. If he likes the answers, then he might invest. He has invested $10 million in startups he discovered through email pitches and with $6 million worth of those investments he has never even met the entrepreneur, Cuban said.

Dell Becomes World’s Biggest Startup

dell2Dell stockholders approved a $24.9 billion deal Thursday to let Founder Michael Dell and Silver Lake Partners buyout the company and take it private.
In a special meeting, the stockholders approved the deal in which they will receive $13.75 in cash and a dividend of 13 cents per share. They will also receive eight cents per share in a dividend for the fiscal third quarter.
The vote excluded the shares held by Dell, his family, the board of directors and some managers.
The deal will help Dell, based in Round Rock, in its evolution from its roots as a PC manufacturer to a software, cloud-computing, data and storage company.
“As a private enterprise, with a strong private-equity partner, we’ll serve our customers with a single-minded purpose and drive the innovations that will help them achieve their goals,” Dell said in a news release.
He also thanked the company’s 110,000 employees worldwide.
Dell also issued a letter to his customers.
“We are going back to our roots, to the entrepreneurial spirit that made Dell one of the fastest growing, most successful companies in history,” Dell wrote. “We’re unleashing the creativity and confidence that have always been the hallmarks of our culture. We plan to serve you, our customers, with a single-minded purpose and drive the innovations that will help power your dreams.”
“We stand on the cusp of the next technological revolution. The forces of cloud, big data, mobile and security are changing people’s relationship with technology, just as the PC did almost 30 years ago.”
The deal is expected to close by the end of Dell’s third quarter subject to regulatory approvals.
Billionaire Carl Icahn, a Dell shareholder and Southeastern Asset Management, opposed the deal, which was first announced last February. He thought the price was too low and fought to get a better offer. Dell and Silver Lake did raise their offer but Icahn was still not satisfied. He withdrew his opposition earlier this week and issued an open letter to Dell shareholders.
“Mr. Dell celebrated the victory with a big barbecue at his house, according to people with knowledge of the matter. But he said that much hard work remains,” according to this story in the New York Times. “When asked how significant the leveraged buyout will prove in the history of Dell, he said, “It’s a better question a couple of years from now.”

UT Entrepreneurship Week features startups and tech veterans

In 1984, Michael Dell started his computer company in a dorm room at the University of Texas and now he is one of the world’s richest men and runs Austin’s largest company.
Since then, hundreds of entrepreneurs have launched ventures while at the university or upon graduating.
To put the spotlight on entrepreneurship, a group of student leaders at the University of Texas have planned the first entrepreneurship week, from March 5 to 9, to foster further collaboration and networking among student entrepreneurs and community innovators.
Fifteen university organizations and institutions organized the event.
“We want to encourage students to network, share their ideas and help each other succeed,” Nick Spiller, co-founder and President of uThinkTank, a student startup that connects other student entrepreneurs to critical resources, said in a news statement.
Events include a stop on the SXSW Startup Crawl, a talk from Pike Powers, a big promoter of Austin’s technology industry, Bob Metcalfe, co-inventor of the Ethernet, founder of 3Com and professor of innovation at the UT, a talk from Kevin Koym, founder of Tech Ranch Austin.
For a schedule of events and to RSVP, visit UT Entrepreneurship Week. You can also follow announcements on Twitter at @TheUThinkTank and @nick_spiller.

The PC market is growing, says Michael Dell at Dell World


The PC market is alive and well.
“We don’t see PCs going away at all,” Michael Dell said Wednesday afternoon, during a question and answer session at a Dell World press and analysts event in Austin.
“There are a billion and a half PCs in the world and that seems to me like a pretty big number,” Dell said. “Estimates are that there will be 2 billion PCs in a few years so it’s a growth market.”
While the industry shifts to more mobile devices like smart phones and tablets, Dell sees those devices as augmenting the PC and not replacing it. He will talk more about Dell’s plans for innovation during an 8 a.m. keynote address to the inaugural Dell World Thursday at the Austin Convention Center. About 2,000 people are expected to attend the sold-out event, which runs through Friday.
Dell is also focused on capturing Hewlett Packard’s customers during this turbulent time as HP goes through leadership changes and company realignment.
“I also believe that there is certainly a benefit to us, an opportunity that is created by the turmoil and uncertainty at one of our major competitors,” Dell said.
Dell released a survey this week by Technology Business Research, that showed most of the 130 HP U.S. customers with at least 500 customers, surveyed reported concern with the direction HP has taken.
HP announced plans to jettison its $40 billion PC business and become a software and services company like IBM. But those plans are in limbo since the departure of its old CEO Leo Apotheker. Now under the leadership of its new CEO, Meg Whitman, HP may keep its PC business after all, according to a story in the Wall Street Journal Tuesday.
To further diversify its business, Dell has also shifted into the data center, solutions and services business over the past several years. It’s not the same PC maker that Dell founded 27 years ago.
Steve Schuckenbrock, president of Dell Services, reported that Dell is number one in services in the healthcare industry and number two in the education space around the world.
“We started out as a product company,” Dell said. In the last decade, Dell has evolved into a solutions company, but one that still cares about PCs, he said.
During the last 18 months, Dell has been one of the most active acquirers of businesses in the information technology industry, Dell said. It has added companies like Compellant, Kace Networks, Force 10 Networks and SecureWorks. Dell looks at more than 250 companies a year to decide which 8 or so it wants to acquire, Dell said.
“In last 12 months, earnings per share grew by 83 percent,” Dell said. The growth is coming from acquisitions and organic growth, he said.
Dell has also made a big push into the data center business and cloud computing. It has made $1 billion worth of investments in data centers this year. Dell just announced the opening of new data centers in the United Kingdom and in Quincy, Washington. This year, Dell has also opened nine Solutions Centers and plans to open three more by the end of this year.
A reporter asked Dell his thoughts on China-based Lenovo, which bought out IBM’s PC business, becoming the number two PC maker worldwide. Dell said that his company focused on profits and revenue and not necessarily number of PC units sold. He called Lenovo a great competitor, but said he didn’t worry about rankings. Research firm IDC reported on Wednesday that Lenovo overtook Dell for the first time to become the number two PC maker. HP ranked first with an 18 percent market share, followed by Lenovo with nearly 14 percent and then Dell with 12 percent.
The total information technology industry is worth $3 trillion and only 10 companies have 1 percent of that market and Dell is one of the companies that has more than 1 percent of that market. But it’s a highly fragmented market and not a single company dominates the industry, he said.
Dell also shared his thoughts on the fast growing tablet marketplace, which he says “is basically an iPad market.” He sees the challengers to the iPad are Microsoft’s Windows 8 and Google’s Android operating system for mobile devices.
“Those are the two primary alternatives to iPad,” Dell said. Dell appears to be backing the Windows 8 system for the tablet market. It will announce a wide variety of products around Windows 8 when it is released, Dell said.

Michael Dell hosts Dell World 2011 in Austin

At Dell World 2011, Michael Dell will take questions today during a panel discussion with press and analysts at the Long Center in Austin.

The sold-out Dell World event begins with a welcoming reception at Austin City Limits Wednesday night. Then, bright and early, Michael Dell will deliver the keynote at 8 a.m. Thursday at the Austin Convention Center. His speech will discuss trends in the virtual world such as data overload, mobile applications and security. He’ll also talk about how Dell’s “customers can best succeed, compete and innovate.”

Dell World 2011 also features speeches from Microsoft CEO Steve Ballmer, Intel CEO Paul Otellini, Marc Benioff, CEO of Salesforce.com, former White House CIO Vivek Kundra, VMware CEO Paul Maritz, IDC Research Vice President Michelle Bailey and many others. The focus is on innovation.

Justin.TV is broadcasting the event live at 2 p.m. central time.


Watch live video from Dell on Justin.tv

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