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TeleBlog regular Branko Collin gave a nice explanation of how microformats could aid pickups of information from book reviews for Technorati. Josh Gay of the Free Software Foundation, whom I met Friday at a library conference in NYC, has also been a big booster of the concept. I  can see why. As described by Wikipedia, “any page created, or any content added to microformats is placed into the public domain for maximum possible reuse.”

That sounds anti-commerce. But actually microformats could help even commercial sites by, say, bringing more traffic to a book review magazine than it would receive otherwise. Theoretically Yahoo could create a page listing reviews for a certain book and automatically pick up ratings from each publication’s writeup. Such a capability, in turn, might just drive you to visit the sites and see how the reviewers justified the rating. What’s more, other sites could ride Yahoo’s coattails and reproduce the Yahoo page.

Who really owns your address book? Many Internet companies - like Google (GOOG, Fortune 500) and Yahoo (YHOO, Fortune 500) - say unequivocally that you do. If you sign up for free e-mail accounts on their services, you're free to take your friends with you and export your contact lists to any service that you like.

But Microsoft (MSFT, Fortune 500), while publicly embracing the idea of openness, has been saying something different behind the scenes. Since last summer, lawyers representing the company have been sending cease-and-desist letters to startups that offer new users the ability to import their Microsoft Hotmail contacts. In a move that Valley guys are deriding as ham-handed, Microsoft is offering a quid pro quo: Third-party sites can access Hotmail contacts if they make Microsoft's instant-messaging client available to their users - for 25 cents per user per year. Then the company says it will waive the fee if the sites make Messenger the exclusive in-network messaging client. Such a deal.

There is a better way, of course - though it remains to be seen whether it will work. A group of companies, aligned under the banner of the DataPortability Workgroup, is trying to craft standards that would make it easy for the data we collect online to move as freely and securely from one website to another as we do. As long as two sites abide by the DataPortability rules, they can effortlessly send anything back and forth between them - data, photos, address books. "It's safe, secure, painless," says Chris Saad, the Aussie who co-founded and chairs the DPW. Hundreds of individuals and several leading companies - including Yahoo, Facebook, Google, and even Microsoft - have signed on to the workgroup, and Saad says he's optimistic that we'll see a system in place later this year.

Data portability is an idea long championed, and becoming more important all the time.  As we continue to load our online lives on to various social networking sites, the concept of making it easy to get that information back off again, and re-using the information on the next big site without having to start over from scratch are compelling, reasonable, and just plain logical.  Why would you want it any other way?.

It's a good sign that DataPortability.Org is gaining traction.  It's also a good sign that Microsoft has joined.  While Microsoft certainly can't be thought of as a leader in the move to open up our data, it has been making serious strides to open up a number of its platforms, and a common vision shared by the members of DataPortability.Org could make control of our own data something closer to a reality.

Users can now access their matchmine MatchKey, a colorful sphere that represents a person's interests, with the single-sign-on OpenID, import user preference information from Web sites, and export their MatchKey user preference information. Users can share their MatchKey with any Web site in matchmine's "media discovery network." Each time someone uses their MatchKey, it "learns" preferences and retrieves information that matches preferences.

Social-networking sites have embraced the idea of data portability, but making that idea into a reality is a whole different game. Several projects and initiatives exist whose goals are to bridge the chasms between social sites while protecting the user's privacy, writes J. Trent Adams, founder of Matchmine.

Up until today only a few technologies supported certain standards, the Operator extension for Firefox supports microformats, as will Firefox 3 when it is released, but none of these are big enough or important enough for the mainstream. Adding semantics to a website is a lot of hard work if no-one is around to use it.

This is why Yahoo!’s announcement is so big. Now there are machines reading that data and using it and enriching the web with it, do you, as a developer or site owner, want to miss out on that? Yahoo!’s search is to use microformats initially, to improve their understanding of the data to return more relevant results (and, from the looks of their example with LinkedIn add more detail to their search results). So, will other search engines, I’m looking at Google and Microsoft here, want to miss out on the wealth of data that they aren’t collecting and Yahoo! is?

What could be better, a reason to include semantic technologies in your site, better search results, new, intelligent services? I can only say thank you to Yahoo! for supporting this and giving it the much needed boost.

However, the overall value of these companies is still largely based on growth potential, which now seems shaky. Microsoft's investment in Facebook valued the company at a massive $15 billion. But in November, Twitter refused to be bought by Facebook for a reported $500 million of its stocks plus some cash.

Chris Alden, chairman and CEO of Six Apart, says that there simply isn't enough capital in the current market to sustain so many social-networking companies. "You'll see more consolidation in the next year or two," he predicts.

In October, the third most popular social-networking site, Hi5, announced that it would cut between 10 and 15 percent of its staff. And in November, the business-focused networking sites LinkedIn and Jive said that they would slash their workforces by 10 and 40 percent, respectively.

The news is sure to be welcomed by Facebook's 120 million users and its potential partners, but it presents a new challenge to proponents of the so-called "open stack" for ID management -- OpenID, OAuth and the related technologies that allow users to share data across multiple websites.

It's also good for everyone's business. By being able to use a Facebook ID to log in to Digg, the user's barrier of entry is lowered significantly and Digg gets more traffic

But where Facebook Connect is heading towards mass adoption on mainstream sites like Digg, OpenID is currently bogged down by several issues, the largest of which is poor usability.