Israeli startup Zend Technologies has fired 25 percent of its R&D team (at least ten people), as well as others across the company, in an attempt to become cash flow positive, says a source close to the company. Zend offers its own distribution of PHP, the popular open-source scripting language for Web applications. It sells software and support services around that (just as Red Hat does with its distribution of Linux). We have an e-mail out to the company asking for a comment.

Update: A spokesperson from the company’s PR firm says: “Yes, I can confirm that Zend made the layoffs, but we cannot comment on the numbers or reasons for the action.”

The job cuts could be an attempt to pretty itself up for a sale. Back in 2006, Oracle wanted to buy it for $100 million to $200 million. It might still be interested. IBM, which already one of Zend’s strategic partners, might also want to take a look.

Another partner is Microsoft, which has already integrated Zend into Windows Server. Thanks to Zend, programmers who don’t want to be bothered with .Net can use PHP instead to create applications that run on Windows Server. If Microsoft ever buys Yahoo, picking up Zend would make even more sense since Yahoo is littered with PHP apps.

Companies can now go ahead and fire their expensive database administrators—those engineers who keep the Oracle or IBM databases humming. Amazon has just added an enterprise-class database called SimpleDB to its suite of cloud-based IT infrastructure, which also includes storage (S3) and computation (EC2) available by the drink. Today, Amazon is taking sign-ups for the SimpleDB beta, which should start in a few weeks. As it points out on the new Simple DB page:

Amazon SimpleDB is a web service for running queries on structured data in real time. This service works in close conjunction with Amazon Simple Storage Service (Amazon S3) and Amazon Elastic Compute Cloud (Amazon EC2), collectively providing the ability to store, process and query data sets in the cloud. These services are designed to make web-scale computing easier and more cost-effective for developers.

Traditionally, this type of functionality has been accomplished with a clustered relational database that requires a sizable upfront investment, brings more complexity than is typically needed, and often requires a DBA to maintain and administer. In contrast, Amazon SimpleDB is easy to use and provides the core functionality of a database – real-time lookup and simple querying of structured data – without the operational complexity. Amazon SimpleDB requires no schema, automatically indexes your data and provides a simple API for storage and access. This eliminates the administrative burden of data modeling, index maintenance, and performance tuning. Developers gain access to this functionality within Amazon’s proven computing environment, are able to scale instantly, and pay only for what they use.

This will be especially attractive for Web startups. Amazon has just taken another major infrastructure cost off the table for them. Relational databases are expensive to buy and maintain. Whatever features or performance SimpleDB lacks, it should make up for in price. Amazon wants to democratize the database by making it available to more businesses, and even individuals, thus leveling the playing field between big companies and startups even more.

And since SimpleDB operates at Web scale, larger companies will wake up to the cost saving opportunities of such a service as well. IBM, for one, is already trying to preempt any customer defections with its copycat Blue Cloud initiative. If speed is of the essence, you might still want to keep your database on your own servers. But the Web is where most software will one day live, whether consumer or enterprise. And Amazon’s got nothing to lose by speeding that day along.

Pricing for SimpleDB is as follows:

Machine Utilization – $0.14 per Amazon SimpleDB Machine Hour consumed

Data Transfer

$0.10 per GB – all data transfer in

$0.18 per GB – first 10 TB / month data transfer out
$0.16 per GB – next 40 TB / month data transfer out
$0.13 per GB – data transfer out / month over 50 TB

Data transfer “in” and “out” refers to transfer into and out of Amazon SimpleDB. Data transferred between Amazon SimpleDB and other Amazon Web Services is free of charge (i.e., $0.00 per GB).

Structured Data Storage – $1.50 per GB-month

Google may have just come out of nowhere and checkmated Facebook in the social networking power struggle.

MySpace and Six Apart will announce that they are joining Google’s OpenSocial initiative. Silicon Alley Insider reported the MySpace rumor earlier today. We’ve confirmed that from an independent source, as well as the fact that Six Apart is joining. Per the update below, Google has also confirmed Bebo is joining.

Google will be making an announcement today. MySpace and Six Apart join Orkut, Salesforce, LinkedIn, Ning, Hi5, Plaxo, Friendster, Viadeo and Oracle as announced Google partners. No word on whether MySpace will continue with efforts to complete its own recently announced platform, but the answer is probably yes. They are likely to simply do both (Update: see below).

Suddenly, within just the last couple of days, the entire social networking world has announced that they are ganging up to take on Facebook, and Google is their Quarterback in the big game.

Update (12:30 PST): On a press call with Google now. This was embargoed for 5:30 pm PST but they’ve moved the time up to 12:30 PST (now). Press release will go out later this evening. My notes:

On the call, Google CEO Eric Schmidt said “we’ve been working with MySpace for more than a year in secret on this” (likely corresponding to their advertising deal announced a year ago).

MySpace says their new platform efforts will be entirely focused on OpenSocial.

The press release names Engage.com, Friendster, hi5, Hyves, imeem, LinkedIn, Ning, Oracle, orkut, Plaxo, Salesforce.com, Six Apart, Tianji, Viadeo, and XING as current OpenSocial partners.

We’re seeing a Flixster application on MySpace now through the OpenSocial APIs. Flixster says it took them less than a day to create this. I’ll add screen shots below.

Here’s the big question – Will Facebook now be forced to join OpenSocial? Google says they are talking to “everyone.” This is a major strategic decision for Facebook, and they may have little choice but to join this coalition.

Bebo has also joined OpenSocial.

Flixster/MySpace screen shots:

Microsoft’s latest operating system, Vista, which went on sale to corporate customers November 30 — can not run the latest version of Microsoft’s corporate database product, MS SQL Server. Microsoft is working on a SQL Server upgrade (SQL Server 2005 Express Service Pack 2), but it’s in beta and available for testing purposes only.

Last month I commented on the lack of internal talks at Microsoft, discussing how their Zune device isn’t compatible with Vista — TechCrunch commenters felt this didn’t matter, considering the consumer release of Vista was months away and that “Microsoft probably does not give a sh*t that some twelve year old cannot use Zune on his pirated copy of Vista yet.” Fair enough. But Vista not working with their corporate database product, SQL Server? That’s not smart for a company trying to grab their piece of the $14 billion database pie.

Update: I should have better researched this prior to posting. Business 2.0 broke the story and their article simply references “the current version of SQL Server,” but they were merely referring to “MS SQL Server 2005 Express.” Given that’s the case — this isn’t a gift to Oracle or IBM, and this shouldn’t have any effect on Microsoft’s position in the database market. My apologies for this.

Editor’s Note: This post was written by Steve Poland, a guest contributor. Steve is the founder and web strategy consultant for Vested Ventures, a firm specializing in website consulting, internet marketing, and high-end custom web development.