Wednesday, September 30, 2009

Apple and Microsoft tablets are looking sweeter than chocolate tablets

If some of you are already starting to be bored just by hearing the word 'tablet', you'd better get used to it. Because it looks like this word is here to stay. And along with the word itself, frantically used in the last couple of months, come some pretty interesting devices...

The product category as such existed already, with manufacturers such as Toshiba, HP and Fujitsu trying to grab a piece of this pie. However, the market didn't quite take off, being estimated at a mere 1.4% of the global portable PC market, according to research company IDC. But as it happened before (with MP3 players and smartphones), word that Apple might launch its own tablet immediately drew everyone's attention to this category.

Most were expecting the "iTablet" (the name predicted by many bloggers) to be launched as ready as September 9th, when Apple launched its new line of iPods. However, this did not happen. But according to recent news, there's no doubt an Apple tablet will be launched in early 2010. There are several clear indications of this: Apple apparently developed a multi-touch OS X version some years ago. Then Steve Jobs came back to work, and according to WSJ, the tablet is his number 1 priority these days. And then there are the leaks of selected suppliers, who confirmed that they already received order for components. And there are some nice previews of the tablet online, to complete the picture and satisfy our curiosity.

As you can see from the photos below, there is no clear indication of how the tablet will actually look like. Most observers predict a larger version of an iPod Touch.

 

And then, in the midst of all this excitement, BAM! comes Microsoft. Gizmodo leaks some rumors that the Redmond giant is also launching its own tablet, named "Courier", and it substantiates the rumor with some videos (see below).




Courier User Interface from Gizmodo on Vimeo.

We're obviously looking at yet another Microsoft - Apple showdown (few days before, rumors of Microsoft's own smartphone model also surfaced the blogosphere), which is more than likely going the make this emerging tablet PC category a whole lot more interesting. But what I think is particularly interesting (if most of the rumored features of iTablet and Courier turn out to be true) is that the two giants are following two completely different strategies: Apple is playing the entertainment card, while Microsoft chose the business & productivity card.

Now, mobile entertainment is growing like crazy and the iPhone and App Store's success are there to prove it. Entertainment on the go, available outside one's living room is here to stay. For a while at least. There is a lot of content that is being consumed more frequently in digital form, starting from music and TV programs to books and newspapers. But I think the business segment will also embrace a tablet with enhanced capabilities compared to a smartphone and more advanced that a netbook.

So there's no telling who chose the right strategy. Given the incipient stage of this product category, it looks like there is plenty of room to accommodate both Microsoft and Apple. Especially since the two tablets satisfy different needs and are at most complementing each other, instead of competing against each other.

As a final consideration, I just want to give a thumbs up to Microsoft for finally stopping to step in Apple's shoes and copy it at all costs. Courier seems like a valuable future product, with which Microsoft might take back some credit, that it partially deserves (for having actually invented the tablet concept and dedicated software back in 2001).

Tuesday, September 15, 2009

Flipping the latest news

A lot has happened since my last post. Apple's iPod centered event took place last Tuesday. As expected, not many huge surprises, with the exception perhaps of the fact that the iPod Touch didn't get a camera like the Nano model did. The blogosphere is still debating as to why exactly that didn't happen, while some users creatively and funnily express their disagreement (see video below)



Today, Microsoft launched Zune HD, along with an improved Zune 4.0 software and the long awaited Marketplace. I already wrote about Zune. It is interesting to see how well this device will do, given the very recent improvements Apple made to its iPod series. I for one will also look for the direction that Marketplace will take, since it was initially anticipated as a platform for mobile applications for the phones using Windows Mobile.
 
 

These days in California, the TechCrunch 50 conference takes place. A lot of the big guys are there, showing some new and cool stuff. But there are also a lot of startups being featured. The full list can be found at this link: http://www.techcrunch.com/2009/09/14/the-list-of-startups-presenting-at-techcrunch50/

According to TechCrunch, they were selected from more than 1,000 applications, so it wouldn't be a surprise to hear from some of them in the future.

Below are the presentations from TechCrunch50 concerning two new features launched by Google and Bing respectively: Google Fast Flip and Bing's Visual Search. Enjoy!



Tuesday, September 8, 2009

Are digital platforms the future of online business?

Some recent news that I read throughout the last couple of weeks got me thinking about the potential future of online businesses: digital platforms.

To start with, I must admit my idea of a digital platform is a bit fuzzy. I started writing this blog by checking Wikipedia to see what a digital platform really is. So before I go on, let me tell you the way I see it: for me, a digital platform is an environment that aggregates several applications. To put it differently, it's like a plate of food where all your favorite dishes are served.
In the online & digital business, this basically means offering a destination site, software or application that puts together several features frequently used by usrs. 

Platforms are particularly compelling in today's business environment. For most online & mobile companies, finding the right business model to monetize the service is quite a challenge. Platforms usually have high traffic levels compared to other sites, because users know they can find several useful stuff in the same place. High traffic automatically draws an increased number of advertisers with it. The advertisers are also attracted by the fact that users not only visit the site more often, but they also tend to spend more time online, resulting in an increased exposure to ads. Platforms might also enjoy a more loyal user base, since they will probably appreciate the benefits of finding multiple services and solutions in a single site or software. All in all, platforms are good business.


Perhaps the first real online platform was Yahoo. The site still contains today access to a varied amount of services such as: Mail, Messaging, Weather, Sport, Career, Games, Finance, Travel etc. Yahoo is currently struggling to regain its once privileged position among the online businesses. One of its recent efforts was to redesign its home page, making it more intuitive to users.



I will now take a look at the main online and digital players and asses their capacity to center their business around a platform.

Let's start with...

 
In Google's case, the first difficult task is to choose the product that they could use as a base for their platform. In my opinion, they have many options at hand. The first obvious choice could be Google's home page, but the search engine alone, while extended across various categories (web, images, videos, maps, news etc) offers a poor user interface and few catchy add-ons. iGoogle partially reduces this shortcoming, by allowing users to customize their search page and include more useful services, such as mail, to do lists, calendar, weather and news updates, live messaging etc.
Another option could be YouTube. It sounds interesting, because users spend a lot of time watching videos, and they are quite captive while doing so. However, a YouTube add-on can be easily used for a more complex platform.

From the existing Google products, perhaps the best choice for a platform is Gmail. And judging from Google's Wave project, Gmail has been used as the backbone. For those of you who want a full update on what Google Wave is, the video below gives you a comprehensive introduction. For the others, I will just briefly enumerate the key idea and features behind this project.



At its core, Google Wave is a real-time communication platform. It's an in-browser client, integrating several features that allow users to: email, instant message, chat, social network and manage projects, share files, all in real-time, and with several others users.




So far, only developers have had access to the Wave platform, but Google announced that it would send out 100,000 invitations to users on September 30th. If you wanna watch out for Wave or subscribe for updates, check out http://wave.google.com/


Let's move on to Apple...

Apple has a great platform, this time based on a software: iTunes. iTunes had a major contribution to iPod's growth and is nowadays also used by the increasing base of iPhone users to sync their PC and phone and manage their apps. A new version of iTunes is expected to be launched no later than this Wednesday, with many features anticipated by bloggers. Of all the predicted features, the ones that really got me started were the integration of several social networking services such as Facebook, Twitter and Last.fm. Because, as MG Siegler from TechCrunch cleverly puts it, this is a great source of making more money.


"And just imagine if Apple made a feature not only to send the name of a currently playing song to Twitter and Facebook, but if it included a link to buy the song on iTunes as well. That could mean some significant sales." 

From this perspective, iTunes has perhaps the highest monetization potential, since the user account is already linked to his credit card, making the one-click purchase of a song/ movie that a friend posted on his Facebook account extremely easy. iTunes of course lacks other features such as live messaging, emailing, productivity features etc. It is interesting to see where Apple decides to take it, because in my perspective, iTunes has great potential in becoming a comprehensive platform.

Moving on to...

 Facebook has been criticized by many for its incapacity to translate its huge customer base in cash. However, recent product launches show indications that Facebook is finally on the right track in monetizing its 250 million user base. 

First, Facebook launched Pages, allowing companies, organizations, athletes, celebrities etc around to world to establish a direct connection with their fans. This different communication channel is enabling marketers to access and target their audience in a novel and highly engaging way.


Reuters claims that Facebook's vision is that of becoming a "utility" that offers activities to keep people online for hours". And their recent moves show just that.

Recently, Facebook significantly improve its search engine, by also opening it up to search outside of its page. This move not only counteracted Twitter's longly acclaimed search capabilities, but has also posed some threat to the big guys of search, Google, Bing and Yahoo.


Then they went and bought FriendFeed, a service similar to Twitter. Facebook is also considering launching an electronic payments system. According to Reuters, Facebook could pose some serious threat in the future to eBay's PayPal and to iTunes (if they manage to launch their payments system).


What shows that Facebook is no longer interested strictly in the social media game is its recent launch of a Twitter app, which allows users to simultaneously update their Facebook Page and their Twitter account. Mashable makes a good analysis of the strategic implications of this launch and of how Facebook is trying to preempt Twitter's advantage and become a 3rd party Twitter tool.

Finishing off with Microsoft, it can be said that at this moment in time, MSN is pretty much the only platform they have at hand. However, MSN features are highly similar to the Yahoo portal, so it is not so clear how successful it can be on the long term. I for one am interested to see what software will accompany the newly launched Zune HD and how the long awaited Marketplace for mobile applications will look like. They might constitute interesting candidates for a new platform.

To sum up, as an Orange commercial once put it, "The future is bright"...for online platforms.

Thursday, September 3, 2009

Game, set, tweet

Most of my friends know that I am a tennis fan. A tennis freak would probably be more precise. Which explains why I've been spending most of my time these days to follow US Open on TV. And while this blog doesn't (sadly) cover sports, this little piece of news gives me the opportunity to talk about sports in the social media context.

The news is that the US Open officials banned players to use their Twitter account during breaks, fearing that the inside information that they provide will be used for gambling purposes. I have to say a big grin appeared on my face while reading the news. I simply cannot imagine Federer or Nadal using their breaks to tweet to the world about whatever. This measure, while extreme and slightly ridiculous, shows however just how big the whole social media phenomenon has become.

I think sports is perhaps one of the best industry to accommodate social media. Sports consumption is largely social and there's no better consumer than a loyal fan. The amounts of money being made just from subscriptions and fan merchandise are there to prove it. And people simply love to talk about their favorite player/ team and debate over which is the better one. And Facebook, Twitter and the likes are the perfect platforms for fans to express their love.

That is why I decided to take a deeper look at the 4 Grand Slams (Australian Open, Roland Garros, Wimbledon and US Open) and see how they have integrated the social media phenomenon in their marketing efforts.

I started by looking at the usual suspects, Facebook, Twitter, the App Store and YouTube. The results are in the table below:

From a superficial analysis it can be said that Wimbledon seems to have best integrated social media in its marketing. However, if we compare the tournaments with the individual tennis players, we can say that they are a long way behind. Just to give you an idea, Roger Federer currently has 2,882,491 fans on his Facebook Page and Rafael Nadal 2,047,955. Serena Williams has 991,490 followers on Twitter, Andy Roddick 11,779.

2010 will probably tell which of the four Grand Slams will ace the social media game.

Tuesday, September 1, 2009

(Net) Surfing the winds of change?

Google announced today that it has reached a distribution agreement with Sony. The deal involves that Google's internet browser, Chrome, will be pre-installed on the new Sony Vaio models. The move comes a year after Google launched Chrome in a market long dominated by Internet Explorer. Also today, Opera 10 was launched.

Of course, there is a lot of debate in establishing which of the five main Internet browsers (according to me, listed in the picture below) is the best. I do not want to go in the technicalities that such a debate would involve. Firstly, because, frankly, it is beyond my current technical knowledge. Secondly, and more importantly, because these technical stuff may not matter at all in the end.


Google's bitter tone at Chrome's less than impressive user adoption (see the figures at the end of this post) highlights a key issue in this fierce competition:

"Google executives express frustration at what they consider a lack of interest among internet users about browsers. “Awareness is shockingly low” given how much people rely on browsers, said Mr Rakowski. “It’s absolutely a problem that people don’t know what a browser is, or how to evaluate one." (excerpt taken from Financial Times' article on the matter)

I find this declaration important because, for the first time, another reason other than Microsoft's antitrust issues and imposed dominance is being pointed out as a cause for IE's long standing success in the face of competition.

And I tend to agree with it. People simply don't care that much about their Internet browser's capabilities. If the page loads slowly, it's the internet provider's fault. Or the computer's fault. Or any other cause except the browser. The improvements made with each new browser version are simply too subtle for normal consumers to notice.

From a personal experience, I can highlight another reason for Chrome's and other browsers' difficulties in catching up with Internet Explorer: dear-old habit. People simply get used to their browser. I for one just click the browser icon unconsciously every time I turn on my computer. It has become just another reflex we make in a fast paced world, in which decisions are made in seconds and repeated consequently, for the sake of simplicity and saved time.

I have tried other browsers than the one I am using now and liked all of them. I even made amends to switch to the new browser from the next day. However, I always ended up clicking the old browser icon and the new browser ultimately became a forgotten icon on my desktop.

The point is that it takes a lot of time to convince people to develop new habits. Unlearning to do something can be a very challenging task. And this means that on the medium term, it's not the fastest, most complete browser that's going to lead the market. It's the most familiar one.

To end, just a brief overview of the current market shares, according to Net Applications:

Internet Explorer: 67.7%

Mozilla: 22.5%

Safari: 4%

Chrome: 2.59%

Source: Net Applications, July 2009