Today, Samsung places much greater strategic emphasis on its enterprise business, which is now a “top three priority” globally for the company. Symbolizing this new commitment to enterprise customers, on June 11th Samsung openeda new Executive Briefing Center (EBC) in its Ridgefield Park, NJ office. The EBC offers enterprise customers and Samsung’s many partners an opportunity to experience Samsung’s vertically-optimized enterprise offerings in context.
I attended the opening, which enjoyed executive-level support from the President and CEO of Samsung Electronics North America Yangkyu (Y.K) Kim, President of Samsung Electronics America Tim Baxter, and Senior Vice President, Samsung Enterprise Business Tod Pike. I also spent an hour learning more about the Samsung value proposition for enterprise customers from Tod, including the excerpted Q&A below.
Samsung’s Enterprise Business Division focuses on a vertical strategy that includes Education, Healthcare, Retail, Financial Services, and Hospitality... and which isn’t just about devices, though their product offerings in hospitality TVs, notebook and tablet PCs, virtualization, wireless printers, and digital signage play a prominent role. Samsung also brings together enterprise-savvy partners like Crestron and Nuance Communications – along with numerous systems integrators and other channel partners – to deliver software, content, and services along with those devices.
In recent weeks, I’ve been asked the same question several times: Will the devices market continue on a highly fragmented path, or will the market shake out to yield a couple of viable form factors and platforms? This query actually encompasses two distinct questions, with two answers:
1. Devices and form factors will continue to fragment, though failures will abound. Let me unpack this a bit, starting with some background: In 2007, I published a report called The Age of Stylein which I predicted that computing form factors would diversify and fragment:
By 2012, the industry won't include just two form factors, laptops and desktops, but five or more form factors that are universally viewed as differentiated products.
The advent of new mass market computing experiences — from smartphones to eReaders to several flavors of tablets to phablets (and beyond) — rendered this prediction accurate. We live in a world of form factor diversity, which is only increasing with the introduction of wearables, the accelerating fragmentation of the tablet category, and the innovations associated with television-sized, collaborative touchscreen devices.
I recently spoke with Tim Tuttle, the CEO of Expect Labs, a company that operates at the vanguard of two computing categories: Voice recognition (a field populated by established vendors like Nuance Communications, Apple, and Google) and what we can call the Intelligent Assistant space (which is probably most popularly demonstrated by IBM’s “Jeopardy”-winning Watson). In their own words, Expect Labs leverages “language understanding, speech analysis, and statistical search” technologies to create digital assistant solutions.
Expect Labs built the application MindMeld to make the conversations people have with one another "easier and more productive” by integrating voice recognition with an intelligent assistant on an intuitive tablet application. They have coined the term “Anticipatory Computing Engine” to describe their solution, which offers users a new kind of collaboration environment. (Expect Labs aims to provide an entire platform for this type of computing).
When Samsung made its move to install 1,400 store-within-a-store concepts at Best Buy back in April, we recommended that Microsoft take note. And take note, it did: Today Microsoft and Best Buy announced the launch of a new Windows Store at 500 Best Buy locations in the United States and another 100 in Canada, for a total of 600 in North America.
Instead of a store-within-a-store concept (which both Apple and Samsung now employ at Best Buy), the Windows Store represents a complete take-over of the PC department. Windows Stores will effectively replace the computer department at these 600 Best Buy locations. But they will offer a wider range of Microsoft consumer products (PCs, tablets, and accessories, of course, but also Office, Windows Phone, and even Xbox) than just PCs.
Microsoft’s Windows Store represents a vital strategic step forward in its retail strategy and ought to yield some benefits. At the same time, the move should have happened several years ago; it isn’t quite as ambitious as it might have been, and Microsoft will have to work hard to overcome legacy practices within the Best Buy ecosystem.
Why is this move essential for Microsoft? Put simply, the non-Apple Store North American retail channel for consumer electronics is broken … and it’s getting more broken: