Last week, the number of downloads to Apple's iPhones and iPod Touches finally topped one billion. That is an impressive number coming from approximately 30 million devices in the market.
The word "iPhone" in the title of any newspaper article or otherwise turns heads and sells. I would offer, however, that the impact of the iPhone and its potential have been under-hyped. I believe that the impact on the industry is comparable to that of SMS. May not seem that way today, but it will in the course of time.
Here is a partial list of what it has accomplished so far. Apple has:
- Taught carriers that they don't need to own the end customer experience to profit from those customers.
- Demonstrated that consumers will pay for an experience that is unique and extraordinary.
- Shown carriers that they do well serving the average customer, but aren't equipped to serve each segment best.
- Taught consumers how to download applications to their cell phones.
- Taught consumers that their cell phones could do more than voice calls or text messaging
- Created a platform and a business model that is truly compelling to developers.
- Taught US consumers what "3G" is and accelerated demand for it.
- Weren't afraid to leverage their existing 60+ million billing relationships
- Shown us we don't need "open" for a great consumer experience
- Have ever consumer brand in the country thinking they need an iPhone application
I look forward to 3.0 and its possibilities. I don't think enough is being said about what Apple has achieved.
Ok, I admit that I used the word "iPhone" in the title to seek attention, but it is true. My first experiences with Stanza were on my iPhone. A friend suggested that I download the application. Free download. I often asked, "what is the business model?" Selling the technology is one possibility. The creators of Stanza have made a lot of money on an iPhone application. See release.
More seriously, it is an interesting play for Amazon. Heavy users of a service/function on a portable device - whether a PND, MP3 player, etc. - lean towards buying dedicated devices. I have a Kindle, and I love it. I have the Kindle application on my iPhone, but I don't use it. Casual users of these services will buy and use devices that are multi-purpose. Moreover, users don't want to worry about file formats. Lexcycle fills in some of these gaps.
Content players need distribution, content strategies and business models that span the range of portable devices. Adoption outside of laptops and cell phones is limited today, but devices such as portable media players, netbooks, etc. are filling in the space in-between.
Mobile strategies extend beyond a cell phone presence - more so for media companies today than those in other industries.
We all know the appliance and VTL vendors offering dedupe, including COPAN Systems, Data Domain, EMC, Exagrid, FalconStor, HP, IBM (Diligent), NEC, NetApp, Quantum, Sepaton, Sun StorageTek, and others.
And there were existing backup software vendors, including EMC Avamar, Symantec NetBackup PureDisk, and many online backup software vendors, like Asigra. Now add CommVault Simpana 8.0 and IBM Tivoli Storage Manager (TSM) V6.
Think back to mid-nineties. How many of you had cell phones? They were more of a luxury item for most of us. Towards the end of the nineties they became a nice-to-have. Now, if you walk out the door and you don't have your phone, you go back inside and get it.
In the mean time, cell phones have become pervasive in regions around the world where no one thought the economics would make sense. When I visited western Kenya in 1996, I met some Masai warriors - a group of nomads living much as they did 200 years ago. They have herds of cows and goats. They live in huts with no running water or electricity.
When I returned 10 years later in 2006, they were still living in huts without running water or electricity. However, they all had cell phones and were using them to make phone calls, send text messages, etc.
Cell phones are no longer used simply for talking or texting in Africa let alone in the US, Asia and Europe where we have access to high speed wireless networks and affordable data plans. Cell phones are changing the lives of your customers. You need a strategy to engage with them on their cell phones.
Since the announcement of Oracle to acquire Sun Microsystems you can find a lot of thoughts on the web about Oracle’s main motivation behind the deal, the portfolio mapping of the two giants and how Oracle would leverage pieces of the new assets or possibly sell-off some again.
Oracle continues to assure they are not planning to depart from any of their new assets. If we believe in this mantra the consequences to the whole IT eco-system are severe. It is the first time that a large application vendor expands into the hardware territory and forces us to redefine the traditional view of IT market segmentation – again.
Whenever a company changes the name of their major product you often have to wonder what level of change they are trying to signal. In the case of VMware which changed ESX to vSphere yesterday, the signal is one of intent. They could have called it vWorldDomination but that might have been a bit too caustic. So instead they chose a global metaphor. Despite the subtlety, make no mistake, this version is a direct affront to how we have traditionally run our data centers with traditional operating systems and element-centric system management tools.
They made their case initially at VMWorld EMEA when they declared that a new “operating system” is needed in the virtualized data center and that the old model no longer applies. They called it Cloud OS but didn’t deliver on this vision. vSphere is the first step towards this new model in that it significantly shifts the focus from simply virtualizing workloads to managing and automating pools of VMs and shows how management at the virtual infrastructure layer can address data center efficiency in ways other layers can’t. It also moves the VM world closer to being able to manage business services that span VMs (although other tools like HP Operations Orchestrator and BMC BladeLogic still do this better) and track and diagnose their performance with AppSpeed, previously BeeHive, (although not as well as Hyperic).
Trying to guess what will be HOT at RSA is always a fun game.2009 promises to be different than most years as pure technology may not be the focus of this year’s show.Attendance may be lighter and conspicuous consumption of new gadgets may no longer be in vogue.We’ll know more come Tuesday, but in the meantime, here’s our guess as to what the big topics may be:
The value of Sun’s Solaris installed base proved its worth once again this week as Oracle found it too tempting to pass up and pulled the trigger trumping IBM. A large percent of Oracle’s most profitable customers run their Oracle wares on Solaris and for them to fall further into the hands of the mortal enemy alone justifies the purchase. Sure, Oracle gains complimentary IP in Java, MySQL, and a very competent services organization but most of the rest is likely to end up off Oracle’s books.
It’s not every day that we read about a software maker buying a hardware company and that in itself is perhaps the biggest sign of things to come from this acquisition. Oracle, like Microsoft, enjoys healthy profit margins from a software-only business model. While Oracle is far more consulting-heavy than its Redmond rival, it profits rise above IBM, HP, Cisco and others because of its low cost of goods. Sun’s server and storage businesses don’t fit with this model and certainly don’t justify the further investment in the SPARC microprocessor that will be needed to keep this business healthy. So despite Oracle’s statement that, “Oracle plans to engineer and deliver an integrated system -- applications to disk -- where all the pieces fit and work together, so customers do not have to do it themselves,” expect Oracle to shop these units tout suite. Dell and HP are likely to bid for these businesses and do a strategic alignment on product collaboration like HP’s last year on the Oracle Data Warehouse.
Many recent innovations in the mobile space are led by new entrants such as Apple or Google. However, let's be fair with telcos. They invest significant amounts of money in R&D and have very creative staff. There has been some skepticism in the industry on selected Orange services such as Pikeo, Djinngo (ex Bubbletop) or Soundtribes where Orange was trying to "reinvent the wheel" without partnering with the right Internet players. However, these services have never been really marketed and does not prevent strategic partnerships to be signed. Orange in particular has many Orange Labs worldwide and is driving innovation.
I saw recently some interesting demos of products and services to be launched by Orange:
In my recent BI Belt Tightening For Tough Economic Times document I explored a few low-cost alternatives to traditional, mainstream, and typically relatively expensive Business Intelligence (BI) tools. While some of these alternatives indeed were a fraction of a cost of a characteristic large enterprise BI software license, there were even fewer truly zero cost options. But there were some. For example, you can:
Leverage and use no-cost bundled BI software already in-house.Small departments and workgroups may be able to leverage BI software that comes bundled at no additional cost with BI appliances, database management systems (DBMSes), and application licenses. You can consider using these few free licenses from Actuate, IBM Cognos, Information Builders, Jaspersoft, Microsoft, MicroStrategy, Panorama, Pentaho, and SAP Business Objects for additional functions such as testing, QA, and prototyping. While these few free licenses are just a drop in the bucket in a typical large enterprise BI license requirements, do look around and don’t waste money on BI products you may already have.