This week Apple confirmed the longstanding rumors that the company has agreed to acquire Primesense, the Israeli company that invented the technology behind the original Kinect for Xbox 360. All of Apple's moves are scrutinized closely but this one is worth paying closer attention to than most.
The Primesense technology was astounding when it was first incorporated into the Kinect. Not just because of what it could do -- seeing you in 3D, model your skeletal structure as it observed you moving in physical space -- but because of how the company did it. Instead of imitating the $10,000 military-grade hardware of its predecessors, the company insisted on using off-the-shelf technology, whether hardware or software, so that the cost to deploy the solution would be laughably low compared to prior imaging solutions. That's what made Microsoft so interested -- Microsoft's own motion-sensing engineering group was years away from a home-grown Kinect experience and saw a chance to jump ahead of the market with Primesense. And jump it did, selling by our estimate more than 30 million cameras around the world, boosting sales of the Xbox 360 console even after it was already nearly five years old.
Now that Microsoft has moved beyond Primesense with the Xbox One and Apple has swooped in to buy the company, it will be tempting to think that Apple wants the technology so it can finally make a successful play for the living room, something it has repeatedly failed to do with Apple TV. Certainly, the Primesense tech works great in the living room and Apple would be foolish not to try it out there.
With the release of the Xbox One around the world today, Microsoft is now in position to see if it will catch up with Sony's successful PS4 introduction, which reportedly sold more than a million units on day one. Many are asking which console will win. That's actually the easy part. The harder question is whether game consoles will still matter in two years at all.
It feels a little like we've been here before. Back in 2007, both Sony and Microsoft were working hard to push the next generation of a technology they were convinced everyone would want. I'm not talking about the PS3 versus Xbox battle, though, but the war over high-definition video.
Most will barely remember that while Sony backed Blu-ray, which eventually won, Microsoft was betting hard on HD-DVD. I was courted at the time by both companies, eagerly trying to persuade me that their version of HD would win. We called the war for Sony at the time but made it clear that it would be a Pyrrhic victory: There would be precious few spoils to earn from that success.
We were right, much to Sony's distress. That's because the battle was fought over a physical storage format that was rapidly losing relevance. Digital downloads had already begun, although they would never really catch on. More importantly, that was the year that Netflix added online movie viewing, foreshadowing and encouraging a future that would be streamable.
That's why the right comparison today is not between this and the last-generation game console launches. It's instead between game consoles as a whole and all the dozens of other ways people can play games, watch video, interact with friends, and otherwise pass their free time.
Forrester attended Microsoft’s second annual Asia Pacific Analyst Summit in Singapore last week for an update on the company’s progress in transforming into a devices and services company. The event highlighted Microsoft’s strengths and exposed some obvious challenges, which I’ve shared below. Forrester clients can access further event-related analysis and implications here.
Day One: Impressive Capabilities And A Strong Understanding Of Customer Needs
Day one was well designed and delivered, with a clear focus on customer and partner case studies and go-to-market strategies based on three core imperatives:
Transforming IT. Focusing primarily on Cloud OS, Windows Azure, and Office 365, this imperative highlights Microsoft-enabled capabilities and resources to help IT organizations transform both internal data centers and IT delivery.
Engaging customers and employees. This imperative essentially combines mobility and social to help organizations thrive in the age of the customer by delivering improved customer service and customer and user experiences.
Accelerating customer insight and business process improvement. This imperative targets the changing needs and expectations for data and information access and real-time decision making via a combination of traditional analytics and big data.
How much stuff do you own? The answer for most people ranges from a few changes of clothing to a large house full of possessions – your material self. It turns out that most of us also have a digital self – the information and items we create or that others collect about us. It is your footprint, your impact on the digital world. Without a digital self, you don’t exist in the world of computers and the Internet.
The era of Internet has spawned riotous new forms of business disruption as cheap tools and services combined with Internet reach and social media have empowered anyone on the planet to compete with the largest, most established businesses. James McQuivey’s reports and book on digital disruption highlight the fast rise of new hardware devices such as Microsoft’s Kinect and Apple’s iPad, and the fast mainstreaming of new Internet services such as Dropbox, Twitter, and Facebook. Companies in the business of retail, books, movies, and music have been toppled or transformed, with more to come.
I attended this year’s Nokia World in Abu Dhabi on October 22 and 23 — perhaps the last one that Nokia will host to showcase its devices (Microsoft wants to acquire Nokia’s device and services business). And it seems that Nokia saved its best for last. The company announced its entry into the loosely-defined phablet category (smart devices with diagonal screen size of more than 5 inches but less than 7 inches) with two devices: a top-of-the-line flagship device, the Lumia 1520, and a more affordable version, the Lumia 1320. It also announced its first tablet, the Lumia 2520. It also launched three new Asha devices: Asha 500, Asha 502, and Asha 503. However, Nokia has neither announced the release date for its new devices nor identified which operators will carry them.
The event tag line was “Innovation Reinvented,” and Nokia did demonstrate many innovations, especially around imaging software. It launched new apps like the Nokia Camera, which combines Smart Camera and Pro Camera apps; Refocus, which adds Lytro-like variable depth of field; Storyteller, which integrates photos and videos onto HERE maps; and Beamer, which shares Lumia’s screen in real time over Wi-Fi or cellular networks.
As it did for the iPhone 5S and 5C, Apple has tweaked its product portfolio with two new products to maintain premium positioning in an increasingly competitive tablet market. Both the iPad mini 2 (starting at $399) with Retina display and the iPad Air (starting at $499), which is thinner (43% thinner than the iPad 4), lighter, and faster (with a super-fast A7 chip) are great additions to the iPad product portfolio and come with new colors and covers. As always with Apple, expectations on systematic breakthrough hardware innovations are irrational. Apple is good at inventing new products (e.g., iPod, iPhone, or iPad) and at maximizing profitability of its product range over time through software innovations and clever marketing. Yes, at some point, the company will need to disrupt a new market once again, but today’s announcement is really about making sure it maintains the premium brand experience for the holiday season when competition is heating up — not just for tablets but also for the amazing new line of Mac products.
So far the latter seems to be the prevailing trend as the majority of public cloud platforms and private cloud software solutions start with the foundation of server virtualization. The bare metal options are being positioned more for two purposes:
Auto-provisioning new nodes ofthe cloud - bare metal installation of the cloud solution and the hypervisor
New compute resource types inthe cloud - using new automation capabilities to add a complete physical server to a customer’s cloud tenancy, as if it were just another virtual machine.
Infrastructure professionals are now all too familiar with the dynamics of bring-your-own (BYO) technology and devices: Their workers walk into the office with consumer technology all the time. This post is one in a continuing series on how consumer retail stores act as de facto extensions of the IT department in today's BYO world.
The rumors have abounded for more than six months: unconfirmed whispers that Google will open up its own major chain of consumer retail stores. The company has dipped its toes into the retail waters with Chromebook-focused kiosks in the U.S. and the U.K. over the past few years, with installations inside larger retailers like Best Buy, Dixons, and Currys.
A Google Kiosk in the U.K.: Not Yet Reaching Revolutionary Heights
Yet while kiosks – particularly those staffed by Google employees – offer some value in promoting Google’s products and services, the company has a much greater opportunity for late 2013 into 2014. Kiosks aren't going to foment a retail revolution. To quote the popular Star Wars geek meme, "these aren't the droids you're looking for."
No, it's time for Google to think big – to go gangbusters. To do something nobody has done as well previously. Why is this imperative?
Many CIOs, technical architects as infrastructure and operations (I&O) professionals in Chinese companies are struggling with the pressures of all kinds of business and IT initiatives as well as daily maintenance of system applications. At the same time they are trying to figure out what should be right approach for the company to adapt technology waves like cloud, enterprise mobility, etc., to survive in highly competitive market landscape. Among all the puzzles for the solution of strategic growth, Operating System (OS) migration might seem to have the lowest priority: business application enhancements deliver explicit business value, but it’s hard to justify changing operating systems when they work today. OS is the most fundamental infrastructure software that all other systems depend on, so the complexity and uncertainty of migrations is daunting. As a result, IT organizations in China usually tend to live with the existing OS as much as possible.
Take Microsoft Windows for example. Windows XP and Windows Server 2003 have been widely used on client side and server side. Very few companies have put Windows migration on its IT evolution roadmap. However, I believe the time is now for IT professionals in Chinese companies to seriously consider putting Windows upgrade into IT road map for the next 6 months for a couple of key reasons.
Windows XP and pirated OS won’t be viable much longer to support your business.
Ending support. Extended support, which includes security patches, ends April 8, 2014. Beyond that point, we could expect that more malwares or security attacks toward Windows XP would occur.
Eventually, Microsoft announced its decision to acquire Nokia's devices and services unit for € 5,4 billion.
After all these years of speculation, now was the time to invest. Indeed, despite the collapse of the Nokia handset empire, Nokia still has numerous assets: a wide portfolio of patents, Nokia’s product engineering and global capabilities in manufacturing, marketing, and distributing mobile phones. Microsoft is thus not only acquiring the Lumia brand but also the Asha one – bearing in mind Nokia still sold close to 54 million devices in Q2 2013.
Nokia will now focus on its three core technologies: the network infrastructure with NSN, its maps and location-based service ecosystem with HERE, and Advanced Technologies. There were early signs of the new approach when, a year ago, Nokia started to build brand equity beyond mobile phones with HERE (see my take on this blog at that time) but also more recently when Nokia announced its decision to acquire Siemens’ take to fully own NSN. Microsoft will pay Nokia a four-year license of the HERE services, bringing some regular revenues to the now much smaller company.
To avoid parts of the company to be acquired by some Far East Asian manufacturers and due to the diminishing investments from other Windows Phone licensees, Microsoft had to adopt a vertically integrated strategy. They are indeed the best placed to generate synergies with Nokia following the more than two years agreement. And as All Things Digital puts it, Stephen Elop is now the Microsoft CEO candidate to beat.