Tag Archives: Steve Jobs

Google Acquires Patents – and Also Motorola

Google + Moto is the BIG NEWS of the summer.  It was big enough to grab me out of my blog vacation.  While the pundits are filling the airwaves with analysis on this one , I view it perhaps more simply, more straightforward.

The battleground for supremacy in connected devices (mobile smartphones, Tablets, and  set-top boxes) has moved from the R&D labs to the court rooms.  The patent wars between Apple and Google are fierce, with Microsoft bulking up on its own portfolio as part of the consortium that bought the Nortel patents.

Motorola was worth the price Google paid just for their patent portfolio.  In patent wars if you get sued, you better have a patent in your portfolio that can hurt the attacker.  In this way you trade mutual assured destruction with a patent stand-off.

When Google acquired the rights to Motorola’s 25,000+ patents, they bought both defensive capability and offensive firepower.  Apple may go after Android for an Apple patent but what are the changes that Google now has a patent that can hurt Apple?

It is impossible to design and produce a device such as an iPhone, iPad, or Android device that will not infringe on someone’s patent.  Impossible.  What a company must do is acknowledge that they will infringe and hope the other guy also infringes on their patents and us the mutual infringement to to either create a license arrangement or to have both companies do nothing.

Google’s price of $12.5B is about $500,000 per patent, which seems to be a bargain compared to the $4.5B  Apple and Microsoft for 6000 Nortel patents.  Their price was  $750,000 per patent.

Lets assume that the Motorola sale  is approved and Google gets the Motorola patent portfolio.  Google’s next problem is that they have also bought a company that makes handsets.  I say this is a problem because this is a huge company in a market that is different from Google’s core competency.  This is also a company that competes with Google’s other OEM partners for Android Devices.  The conventional wisdom is that these other OEM partners will start to defect, en mass,  to Microsoft.

Yeah right….

What does defect even mean?  Microsoft will pay these companies to produce some Windows phones anyway.

Android is free.  Can Microsoft compete with free?  Google makes its money on Android from their ad business.  Microsoft must make money from their software license for Mobile 7 operating system.  Besides for being years late to the party, Microsoft is structural disadvantaged to compete.  At best they can hope to be a number 3 player.

Google has two choices.

Number 1: They can acquire the patent portfolio and then spin out the Motorola Mobility Business, probably re-cooping half their initial investment.  They could sell Motorola’s handset and tablet businesses, along with licenses to the patents they now own to either HTC or Samsung, their two most important OEM partners.  This would be an amazing move.

Number 2:  Keep the Motorola hardware business and expand Android into the Cable Set-Top Box market.  This is the riskier of the paths as the sheer weight of a big manufacturing company could alter the culture of Google for the worse.  This path would be an attempt to become “Apple”.  While this path seems to be the assumed defacto strategy of Google, I am placing my bets on scenario #1.  This will take a couple of years to play out, so hold onto this link and let’s see if I am right.

An indicator that we are on Scenario 1 will be if Microsoft acquires RIM (Blackberry) or Nokia.  This would be an acknowledgment that the Google OEM manufacturers are not going to defect to Microsoft and that they must own a hardware company to compete.

This has only gotten worse in the last 10 months!

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Saying Goodbye to my iPad – Is there an App for that?

Since my iPad loaner period is about complete, its time to record what I like and don’t like about the sexiest device to hit the market since…..  well probably ever.

If your main activity is light web browsing and email, the iPad is in your sweet spot.  The apps that are made specifically for the iPad are  really few in number, so Safari and Mail will likely dominate your use.   As the regular readers now, I am a fan of Google docs, which couples with the iPad nicely.  Google docs gives me great compatibility with word, excel and powerpoint.

One of the companies I consult with makes extensive use of the “Dropbox” application, which works great on the iPad.  Dropbox is a virtual “cloud” drive that easily mounts on a Mac , PC, Android Phone and iPad.  It is clearly the most promiscuous and functional file sharing application I have come across.

I would be remiss if I also did not rave about the incredible battery life of the iPad.  When I use it as an occasional browsing and email device, I only have to charge it about once a week.

There are, however, a few things that the iPad is not. It is not a device that is meant to be shared amongst friends, family or colleagues.  If you use the email app and let someone else borrow your iPad, they have all of your email.   If you install an app and then let someone use the iPad and they also install apps, you will need each others iTunes credentials to enter into the iPad when those apps have updates.  The iPad I have been using has been passed between three users.  I can only update the apps that I installed.  So scratch multiuser friendliness for now.

Most sadly the iPad is not a great video entertainment device.   It could be the ultimate travel entertainment device,  but it fails.  I say this because of the annoying lack of Adobe Flash support.

If you want to watch a show from a network site…. fail

If you want to use your HBOGO subscription….. fail

If you want  to play your favorite game on Facebook….fail.

Anything with Flash…..epic fail.

The war of words on this issue  between Steve Jobs and Adobe are well chronicled in the Press and the  Blogosphere.

Speaking as a user and developer on the iPad, I view this as a major Faux Pas.  I know you can download video from the Net, convert it to an iPad supported format and load it via iTunes, but that’s really beyond most users capabilities and completely misses the point of a Net connected device.

If there were a competitive Android Tablet device on the market that compared head to head with the iPad, I would get the Android version just for the Flash Support.   When I now want to watch a web videoon the go , I use my Droid smartphone because of the Flash Support.

This would be like developing a PC that only supports one browser.  Even Microsoft in its most Machiavellian days permitted other browsers to be installed within its operating system.   I wish I could say this was anything other than Apple trying to drive all video for the iPad to be within apps and iTunes. The Apple Flash policy is pure, raw monopolistic power being wielded, clear and simple.  To call it anything else is just poor technical rationalization.  Apple used to be the underdog, the company of the people.  Oh well.

(Click Here for Jon Stewart’s take on Apple’s Corporate Aggressiveness – funny)
This is a real shame because the iPad could be a super personal video device.  And yes, I know that there are videos available on iTunes and special built video apps, but the world is bigger than iTunes, and a Net connected browsing device should be compatible, with the Net! (End of Rant)

Prophetic commercial?

The next question is will I miss not having an iPad in my electronic arsenal?  In this case I am probably very unique among iPad users.  How many give up there iPad after a month?

My iPad has been useful in business travel and meetings .  Somehow I managed to survive travel and meetings without this wonder device in the past and I bet I will be just fine without it.   I just won’t look as cool!

If I suffer severe withdrawal symptoms I will let you know!

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My excellent iPad adventure in the land of Les Habitants

During the past couple of weeks I have been using an iPad and trying to figure out where it fits in my digital hierarchy.  For the record my technical stack includes an iMac , a  MacBook,  a netbook and, an HTC Droid Incredible and a Kindle.   While at home the iPad was a toy.  It was something to use while watching television.  Thus it was slightly more convenient than having a macbook or net book  for light browsing and email.  As a book reader it was much nicer than my Kindle (which I still like).  I installed the Kindle app on the iPad and read  a couple of books on it.   It was aggravating that movies that I can watch online easily with my Droid phone cannot be watched on the iPad due to the lack of Flash support.  When will we have an Android Pad?

The interesting part of my iPad experience came when I had a business trip last week.  Instead of taking my laptop I went cold turkey and just took the iPad as my second device, in addition to my Droid phone.  This decision shocked my colleagues, including the one who lent me the iPad to try out!

The iPad did well on the plane as I read the New York Times.  This was especially interesting since the person next to me had the paper version and lusted after my alternative format.  After finishing the Times, I read USA Today, played a couple of games and started to read one of the books I had downloaded via the Kindle app.

I could also imagine that the iPad would make a great personal Video device for longer flights.

At the business meeting I was the cool kid at the table.  After all, what do you really do with a laptop at a meeting? You browse the web, check email and possibly access a presentation.  Since I did not have a presentation to show, the later two were just fine.  For the record if you want to display a power point presentation on your iPad the easiest way is to upload it to Google Docs and then access it directly from the Web.   The iPad is really shines as a net connected device and thus using cloud services is the way to go.  If you don’t have Web access then converting the presentation to JPG images or video also works.  I also installed dropbox on the iPad and it worked great giving me access to my Cloud virtual drive.

The funny part of my day occurred as I was leaving to fly home.  My meeting was in Montreal and that day was also the first day of  iPad sales in Canada.  At an airport sports bar I was killing about an hour why reading on my iPad.  I attracted a crowd of very interested on lookers.  The waitress even brought her boss out to have a gander (Canadian Goose reference…)  Again, I was the cool kid.    This was similar to elementary kids who have their school lunch sandwiches cut on the diagonal, instead of squares.  (Or at least that is what I was told by my kids)

When I passed through Canadian security I was asked if   I had a laptop and I of course proudly proclaimed, no – I have an iPad.  At that point Ihad no less than 4 inspectors handling my device.  They made me turn it on for “security” reasons.  Once I had it on I demonstrated some apps and the book reader.  I was decl

ared safe.   It was a slow day in Montreal for air travel.  This had the makings of a real live Apple commercial.

Note to Steve Jobs:  Get that security tape and air it – great publicity.

When convinced that I no longer was a threat to Canadian airspace with my iPad, I proceeded to the gate.  The flight was an hour late and I began to read my book on the iPad.  Again I drew a crowd when a little kid pointed and yelled – Look DAD, that’s an iPad , cool! I was then obligated to give another demonstration and let some of my fellow passengers check it out.    Just when I was feeling my coolest someone asked me – “hey it looks cool, what does it do?”  All I could thing of was – “It will do whatever you want, once someone figures out what you want”

Understand ? Ehh?

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HTC Droid Incredible – The Rest of the Story (Spoiler Alert!)

What Droid Incredible Really Does – and Does Not (Unofficial Review)

After resisting Droid-Rage during the holiday season, I succumbed to the uber- hyped latest Android super phone – the HTC Incredible.  My venerable Blackberry Curve just was not as sleek or sexy and clearly did not have the cool robot graphics.

There are numerous blog reviews and YouTube videos that will espouse all the virtues of Verizon’s number 1 smartphone.  While they are largely correct, they do not tell the whole story.  Yes it is fast, works on a great network, has more features that a human can possibly comprehend, or use – and even makes phone calls.   I will provide another article with my fav Droid features – this article is about the other side.

To quote Paul Harvey  – “And now the rest of the story….”  Here are my top six issues with my Droid.

1. Speed comes at a cost – The Achilles Heal of the Incredible

All the blazing application response and connectivity comes at a cost in battery utilization.  The first day I had my Droid I had to charge it 2 times.  What good is all that capability if the phone is dead?  If you get a Droid you must stay close to a charging source and become an active energy manager.  You should turn-off the GPS when not needed, limit the number of running applications and even re-consider all of those really cool active widgets which use periodic connectivity to update themselves.   If you need an icon of the sun to let you know its sunny outside, perhaps you need more than a new phone.

2. The display rocks – unless you want to use it outside during the day

The AMOLED technology used in the HTC screen is the latest, but not quite the greatest.  The display is great when used inside.  I just got back from a round of golf and the phone was practically unusable in the sunlight.  The bigger issue is using the super Google driving directions app with a map view.  The map will not be viewable in a car during the day!

3. Its not the number of Apps that matters – its having the right ones and ones that actually work

I never got that impressed with the claims of absolute number of apps on device platforms.  If the iPhone has 300K and the Android 30K , what does that really mean?  It’s a little like counting the number of Nukes that the U.S. and Russia have in their arsenals. .  Quality, not quantity really matters. Android has the basic Facebook and Skype apps.  Its the other 30K that may need some help.  My impression is that the apps on the iPhone are not just more numerous, but are generally of higher quality.   Perhaps the Android platform chased absolute numbers to claim lots of apps without as much quality consideration.  Several apps just did not work at all and others just stopped working.  I tried to download the linkedIn app and had a failure.  This is an area that the Android platform will likely get right at some point.

I want quality apps for the handful I will actually use.  Android has to close the app quality gap with Apple.

4. iTunes Integration – Music and Video – ???

The iPhone clearly excels at music and video desktop integration.  The challenge for any other platform is to create seamless integration for their platforms with the defacto standard for online music. Given the critical nature of this feature, one might assume that HTC or Verizon would provide a solution that makes this happen.

And you would assume wrong.  There are a couple of solutions that purported to achieve this function.  I tried both SailingMedia and DoubleTwist.  Both of these third-party solutions did not work.  While I could probably play with them for another hour or so and figure out what the issue is – why should I have to do that?  I did load my music directly by dragging my music to the mp3 folder on my device.  The music plays fine and the external speaker is loud –if that matters to you.  There does not appear to be a pre-loaded video player and I have yet to get a video, other than YouTube to play successfully.  Again, I’m sure I will figure it out – but why should I have to?

5. Gmail Good – Gmail Bad

I use gmail for my personal email domain, I figured that the Android platform would be a good choice for my use.  For the record my Blackberry worked perfectly with my gmail account.  As expected my gmail account integrated easily with my Droid.  My issue with email is the rather poor gmail app on the device.  I tried to use the HTC mail app and for whatever reason it does not seem to work when my gmail application is active.  As with my other issues, I am sure with a little time I can get it to work.

6. Steve Jobs is right – One button is enough

The Incredible Droid has 7 physical buttons -Home, Menu, Back, Search, optical trackball with click, volume and power/wake-up.  In addition to these physical inputs the standard screen has four soft keys – an up arrow to access all programs, a phone button (yes it can make a phone call!), a “+” key for adding widgets, programs and folders to a screen, and lastly a hidden slide down at the top of the screen that gives a list of alerts and running programs.  Wow – that’s a lot of things to keep straight!.  The really annoying input is the totally useless optical track ball and click selector that just happens to occupy the same spot as the single “home” key on the iPhone.  Needless to say, I have been pushing that click selector by accident through pure muscle memory from my iPhone and iTouch.  An optical trackball on a touch screen device?  Why?

Despite these issues, I am sure I will get around the downsides of this device and make it into a very useful tool for business and personal use.  However, how many customers will take the time to become an I.T. manager for their phone?

For the past several years I carried my Blackberry for phone use and light Internet use and an iTouch for fun.  The true test will be if I go to one device.

The iPhone, like all Apple products – just works out of the box.  The Droid can work, and even do more, but you have to know what you are doing and be willing to investigate the necessary solutions.  The Droid is clearly still rough around the edges.

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Filed under Apple, Droid, HTC, Incredible, Incredible, iPad, iphone, Ipod, iTunes, mobile, Mobile Application Stores, mobile commerce, skype, smart phone, Smartphone, Social Media, Steve Jobs, Verizon, wireless

HP answers Palm Code Blue

New Icon on Palm Web OS Smartphone?

The Smartphone business has been very busy this week.  One day before Verizon officially releases the Droid Incredible (I am tracking mine via Federal Express), HP scoops in and acquires Palm.  Palm does have some pretty good technology and mobile handset know-how.  Do they have $1.2 Billion worth?  HP says yes and, anyway – that’s just a rounding error for them.

If you have seen the Web OS on Palm’s devices you have to be impressed.  Why this really makes sense for HP is that it is so much more than Smart Phones.  Perhaps you noticed that Apple iPad launch last month?  Tablet and netbook computing are the next disruptive technologies.   The Palm OS will likely make a bigger near term impact on HPs tablet and netbook devices.    This is not good news for Microsoft.

The OS landscape for the sub-laptop market is rapidly fragmenting.    Android from Google, Chrome OS (Google competing with itself?), Web OS from Palm, Apple OS4, Windows 7,  Windows 7 mobile,  RIM and Symbian (Nokia).   The environments that appear limited in scope are RIM and Windows 7 mobile (just SmartPhone) and Windows7, Chrome OS (Netbooks). Android, Palm Web OS, Apple OS and Symbian all provide (in theory) a unified sub-laptop platform.

What’s a developer to do?    Can an OS thrive with a single hardware vendor – Steve Jobs would certainly say yes, so why not HP?

The near term loser is likely Microsoft.  By the time they have Windows Mobile 7 devices in the market, HP/Palm should have been able to iterate an upgraded device and spend significant marketing bucks attracting both consumers and developers.

All of this competition is good for innovation and good for consumer price points.  It will take at least another 3-4 years for this market to shake out completely.  When the dust settles you can count on Apple and Microsoft still standing – their present overall positions in OS technology are virtually unassailable.  What will be interesting is their relative market strength in this very interesting sub-laptop market.

If you dominate this new market you are THE company for the next generation.

HP has placed their chips on the table.  Who is next?

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Appvertainment from Jobs-Apple and the iAd

The announcement of iPhone OS4 changes the Smartphone  world – yet again.  As Steve Jobs described the 7 tent poles of the new iPhone/iTouch/Ipad OS, it was clear that the tent was not quite large enough for everyone. The center pole of this tent is clearly– iAds.

The raison-d’etre  for the much heralded multi-tasking feature is Appvertainment.  (e.g. iAds).    Do not be distracted by the fact that he introduced multi-tasking first and iAds last.  They are intimately linked.

Apple is pursuing their app centric  vs. search (Apple vs. Google) strategy for smartphones  through the introduction of their own OS integrated  ad serving technology.  Multi-tasking is the key component in this ad strategy to permit a user to return to an app after an ADHD moment is fulfilled by playing with a cool appvertainment.  Without multitasking you lose your application state/status and have to start over again.  Jobs is trying to change user behavior and reward users for clicking on an ad with an engaging experience, instead of punishing them by having them have to re-start their app.

Appvertainment targeting was not discussed. The social  and geolocation information that the host apps maintain on users will most likely be used for targeting purposes.  The Apple social game network API will no doubt  be used for providing this targeting information for game hosted appvertainments .    Apple is betting that App hosted ads will be valuable than Internet style search ads.

Jobs boosted that the Apple platforms would be capable of serving 1 billion app-ads per day by the summer of 2010.  Even if we cut that number in half and apply a modest $10/CPM ad rate – that represents daily gross appvertainment revenue of  $5M.  Apple’s vig on the ad revenue is 40%.  This is easily approaching a $1B+ annual revenue opportunity for Apple.

Click for full commercial

Another interesting aspect of this strategy is that Apple is clearly focusing on large brands and advertising agencies – in other words, the folks with the largest budgets.   This clearly makes sense.  The cost of an appvertainment production can easily be in excess of $250K+.  The inclusion of integrated and compelling video with engaging interactivity is not the domain of amateurs, but rather professional digital agencies.  The examples that Jobs demonstrated during his presentation (Nike, Disney and Target) are all major national brands with large budgets and big Madison Avenue agencies.

As I watched the presentation another thought came to mind –  “Is this legal?”  What would happen if Microsoft integrated a proprietary ad serving system in their OS and demanded 40% of the revenue of every ad served on a Windows machine?  This topic will clearly be discussed in the blogosphere and perhaps courtrooms in the future.

Did anyone hear a mention of sharing ad revenue with Mobile Carriers?

Another  “pole” of significance is the enhanced suite of enterprise features. Corporate CIOs have had a set of killer issues that prohibited the iPhone from significant corporate sanctioned and supported utilization.  Apple is trying to remove these roadblocks with OS4.  In addition to the enhanced  security and email capabilities is device management.  Device management includes the feature of permitting corporations to load their own private apps on the iPhone.    The execs at RIM should be concerned about their Blackberry franchise.

Apple would not be investing in enterprise features while maintaining an exclusive relationship with AT&T.  OS4 changes Apple from the Trojan Horse of a sexy consumer device on AT&T to a machine poised for world domination.

The competition between Google and their Android platform and Apple will only get fiercer.  Nokia is the only other global player who can play at this level.   Palm, RIM and even Microsoft will fight for the leftover niches.  It is a battle of the controlled and planed eco-system of Apple vs. the Open-Source world of Android.

The Apple tent has room for enterprise applications, has a new revenue source for app developers, and embraces big brands, ad agencies and publishers.  Adobe (no Flash support) and Google are outside the tent of OS4.  Microsoft got the biggest slight in this announcement as their mobile efforts were ignored as though not relevant.  And what about the mobile carriers?  Do they exist in the Apple world? Continue reading

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iWant my iPad – iJust don’t know why?

With the much anticipated launch of the iPad, I stepped back from the hype and techno glitz to ask the question,”Is Apple making the same mistakes of 25 years ago?”

The macro headline for Apple of that time would be “Great Product, lack of licensing and eco-system cedes market to Microsoft” So what’s different this time and what is the same?

The differences are that Apple, under Jobs is an innovation engine that is inventing new product classes – iPod, iTouch,  iPhone, iPad, etc.  The new products are launched and live in a ecosystem  under a benevolent dictatorship (or is it?).  One architecture, One way of getting apps, ads or “tunes” through their closed garden eco-system.  Everyone pays a tax to Apple to play.  This works as long as there are not viable alternatives to the Apple product.

In the case of the iPod, Apple’s eco-system became so powerful that it all but squeezed out all comers. Does anyone own a Zune?  The iPhone, however,  will likely be a different story.

The iPhone was the techno-product equivalent of a genetic mutation, the first of a new species.  It leveraged the eco-system of the IPod , then enhanced it with a vibrant app store.  So what’s the problem?   Apple’s problem is that Google is not the Microsoft.

The Android Platform will mutate and evolve dozens of times a year.  The Apple Iphone is on pace for one major release a year.   Add to this mix Nokia’s Symbian platform, Palm, Blackberry , and yes even Microsoft – and the challenge to Apple’s smartphone bonanza is formidable.   The challengers permit innovation from many hardware vendors  ( HTC, Samsung, Motorola and LG  to just name a few).  The innovation of smartphone products with a common eco-system(s) (Android, Symbian, Nokia, etc) will be more than Apple can bare.  Their share will become a significant but much smaller niche.  This will happen unless the iPhone OS is permitted to evolve outside of Apple.  Since the history of Apple is to control their value chain, this is not likely.

But have no fear you Apple devotees.  Apple’s respond is to morph new species, not new versions of an old one.

Thus enter the iPad – Not a netbook, not a laptop, not an iTouch….  It’s something new- and yes it leverages the vibrant iPhone eco-system,  Another key aspect of the iPad strategy is cloud computing.  The more your “stuff” is stored online , the less you need mass local storage.  Ironically a leader in this space is Google with their Google docs.   I recently purchased a Netbook for around $250.  Rather than double that investment with a version of Microsoft Office, I use Google Docs.  For most use cases it works great and all the docs are backed up – check that – live on the net.  If the iPad is going to squeeze in between netbooks and laptops, it has to have cloud computing for email storage, simple “office-like” apps and document storage.

Is there room in this Darwinian e-volution tree for this hybrid being?  Apple is betting yes – and if successful it will provide them another 5 year run before competitors really catch up.  In the mean time, they invent a new product category, while the previous product hits start to get caught and even surpassed from a market share and innovation standpoint.   Apple cannot afford to compete in every e-category of consumer products with 100% of the innovation – no company can compete with the entire industry.

The secret to this strategy is not to suffer from innovators dilemma.  Apple seems very content to re-invent products categories, even if they diminish the position they have in a previous market.  It is hard to come up with many examples that rival such a strategic culture.   Rather than invest in two more iPhone iterations or faster innovation on an Ipod – they re-invent them all.  This is the truly amazing aspect of Apple and can only come directly from Steve Jobs.  They bet the company on continued hit products.  The strategy works as long as the hits keep coming and Jobs remains at the helm.  Apple would not have been able to sustain a “Vista-like” disaster and have a flagship product be a complete bomb for years.

So – now its off the Apple store to buy my iPad.  Why?  I don’t know – but I’m sure I’ll like it when I figure it out.

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