Innovate the Future

Original Web Article: T-Mobile unveils new Android, BlackBerry smartphones

Review Summary: 
All of the wireless operators are recognizing the importance of having a variety of Smartphone offerings that target specific operating system (OS) capabilities and libraries of applications that will meet the lifestyle needs of their customers and provide the sticky features needed to keep those customers through device replacement.
Review/Analysis:  
T-Mobile is opening its eyes to alternative revenue streams. T-Mobile is also recognizing that to compete in the Smartphone/Netbook space you need to offer a huge library of applications to your customers.

There are literally millions of developers creating applications for Smartphones. These are independent developers. Not Google (NASDAQ:GOOG) Android developers. Not Apple (NASDAQ:AAPL) iPhone developers. Developers that want to sell their applications on every device on the planet regardless of operating system (OS) and regardless of the device manufacturer. To gather these applications on to their specific devices, the device manufacturers are opening up their devices to the developers:

• Samsung - Application Store
• Apple - iPhone WiMo Marketplace
• Microsoft (NASDAQ:MSFT) - Marketplace for Mobil
• Google - Android App Store
• Research in Motion, Ltd. (RIMM) - Blackberry App World
• Nokia (HEL:NOK1V) - Ovi Store
• and on
• and on

Eventually, all these application stores will balance out and carry pretty much the same applications. The differences to the consumer will become the features of the device and the operating system that maximize the benefits of each application.  Consumer preferences will be broad and varied.

To maximize market penetration, wireless providers, like T-Mobile, must offer a blend of devices and operating systems. This should have a rather dramatic downward effect on customer churn.The world of the wireless providers is changing quickly. It will change even more over the next year.
 

SPEAK WITH THE AUTHOR:
David Croslin consults on this and many other topics through Gerson Lehrman Group. Please click here to contact David Croslin. 

Original Web Article: Nokia releases Ovi app developer tools

Review Summary: 
All of the major device manufacturers are recognizing the importance of having a library of applications that will meet the lifestyle needs of their customers and provide the sticky features needed to keep those customers through device replacement.
Review/Analysis:  
Nokia (HEL:NOK1V) is opening its eyes to alternative revenue streams. Nokia is also recognizing that to compete in the Smartphone/Netbook space you need to offer a huge library of applications to your customers.

There are literally millions of developers creating applications for Smartphones. These are independent developers. Not Google (NASDAQ:GOOG) Android developers. Not Apple (NASDAQ:AAPL) iPhone developers. Developers that want to sell their applications on every device on the planet regardless of operating system (OS) and regardless of the device manufacturer. But to get the applications running on Nokia devices, Nokia has to open the door into the device and provide a sales model to deliver the applications.

The Nokia Ovi Software Development Kit (SDK) and the refurbished Ovi Store will allow Nokia to fall into line with the other device manufacturers and offer literally thousands of applications on their devices. And reap revenues from each application sale. And retain customers who would otherwise shift to an alternative manufacturer’s device. And gather new customers that would otherwise refuse to shift to Nokia no matter how cool the device because of missing applications.

Competitive pressures are everywhere:

• Samsung - Application Store
• Apple - iPhone WiMo Marketplace
• Microsoft (NASDAQ:MSFT) - Marketplace for Mobil (NYSE:XOM)
• Google - Android App Store
• Research in Motion, Ltd. (RIMM) - Blackberry App World
• and on
• and on

Nokia is making the right moves. We will see if they execute those moves optimally.
 

SPEAK WITH THE AUTHOR:
David Croslin consults on this and many other topics through Gerson Lehrman Group. Please click here to contact David Croslin. 

Original Web Article: LG to re-enter laptop biz with mini notebooks by year end

Review Summary: 
LG Electronics (SEO:A066575) had pulled notebook sales in India because of low volume consumer sales. But, LG is now ready to reenter the market with Netbooks (mini Notebooks) by the end of the year. Why?
Review/Analysis:  
Some OEMs, like Nokia (HEL:NOK1V) and LG Electronics, appear to be picking up on the pending explosion in Netbook sales and the collapse of the traditional notebook computer market.

Why is this drastic shift in device sales from notebooks to Netbooks going to occur?Microsoft (NASDAQ:MSFT) is reinventing itself.  Microsoft Windows 7 is designed for the new breed of Netbook devices and will easily dominate the market. Not because of volume. Because of quality and breadth. Microsoft recognized the opportunities and intentionally slowed down the sales of Netbooks by placing restrictions on how XP can be packaged and sold.

Microsoft Office 10 will move the software giant’s application suite from traditional fixed platforms into the cloud. Same capabilities. Same user experience. Very small footprint. Will a different sales model arise? Free entrance level packages have already been discussed. Per Usage billing for best of breed?

Microsoft Media Player 12 and Microsoft Media Center will pull together all media types and position Microsoft Windows based platforms as the predominant media platform in the home and on the road.

LG, through its initiatives with Microsoft, is positioning itself to be an early winner in the Netbook sales explosion that is coming. Stop thinking just consumer sales. Think enterprise sales - small, medium and large. Government sales.

So many things are changing right now. And they are accelerating:

1. Cloud based data centers and computing have become practical with virtualization, deduplication, solid state technologies and more.
2. Software vendors, large and small, are aggressively moving products to the cloud. Check out Epicor (NASDAQ:EPIC) .
3. Everyone is chasing the small to medium enterprise as the untapped market. Dell (NASDAQ:DELL)/ATT with ProManage. Unisys (NYSE:UIS) and its Cloud offerings.
4. Software footprints on portable devices will shrink dramatically. Installation, deployment, support and replacement will be greatly simplified. Watch Microsoft Office 10.
5. Security will become much easier to guarantee through minimized content on the device. Watch for Microsoft Security Essentials to drastically change this market.
6. Long Term Evolution (LTE)/4G will provide the bandwidth needed and the quality of service required.
7. Device refresh rates within enterprise customers will accelerate as devices become cheaper and less complex to deploy.

The entire consumer and business IT and communication infrastructure models are shuffling. Unified and ubiquitous communications are being redefined and are now practical. Doors are opening for both large players, like LG and Nokia, and small players.

Everybody better start running now…the door of opportunity is already wide open.
 

SPEAK WITH THE AUTHOR:
David Croslin consults on this and many other topics through Gerson Lehrman Group. Please click here to contact David Croslin. 

Original Web Article: Microsoft partnership just the start for Nokia

Review Summary: 
Nokia (HEL:NOK1V) announced the delivery of Microsoft (NASDAQ:MSFT) Office on Nokia’s Symbian devices. This is the first totally clear indication of Microsoft’s new directions. Microsoft is positioning to dominate the new IT and consumer services market. Nokia could win big.
Review/Analysis:  
Microsoft is reinventing itself.

And Nokia is positioning itself to benefit.

Microsoft Windows 7 is designed for the new breed of Netbook devices and will easily dominate the market. Not because of volume. Because of quality and breadth. Microsoft recognized the opportunities and intentionally slowed down the sales of Netbooks by placing restrictions on how XP can be packaged and sold.

Microsoft Office 10 will move the software giant’s application suite from traditional fixed platforms into the cloud. Same capabilities. Same user experience. Very small footprint. Will a different sales model arise? Free entrance level packages have already been discussed. Per Usage billing for best of breed?

Microsoft Media Player 12 and Microsoft Media Center will pull together all media types and position Microsoft Windows based platforms as the predominant media platform in the home and on the road.

Nokia, through its initiatives with Microsoft, is positioning itself to be an early winner in the Netbook sales explosion that is coming. Stop thinking just consumer sales. Think enterprise sales - small, medium and large. Government sales.

So many things are changing right now. And they are accelerating:

1. Cloud based data centers and computing have become practical with virtualization, deduplication, solid state technologies and more.
2. Software vendors, large and small, are aggressively moving products to the cloud. Check out Epicor (NASDAQ:EPIC).
3. Everyone is chasing the small to medium enterprise as the untapped market. Dell (NASDAQ:DELL)/ATT (NYSE:T) with ProManage. Unisys (NYSE:UIS) and its Cloud offerings.
4. Software footprints on portable devices will shrink dramatically. Installation, deployment, support and replacement will be greatly simplified. Watch Microsoft Office 10.
5. Security will become much easier to guarantee through minimized content on the device. Watch for Microsoft Security Essentials to drastically change this market.
6. Long Term Evolution (LTE)/4G will provide the bandwidth needed and the quality of service required.
7. Device refresh rates within enterprise customers will accelerate as devices become cheaper and less complex to deploy.

The entire consumer and business IT and communication infrastructure models are shuffling. Unified and ubiquitous communications are being redefined and are now practical. Doors are opening for both large players, like Nokia, and small players.

Everybody better start running now…the door of opportunity is already wide open.
 

SPEAK WITH THE AUTHOR:
David Croslin consults on this and many other topics through Gerson Lehrman Group. Please click here to contact David Croslin. 

Original Web Article: MetroPCS to launch 4G mobile network

Review Summary: 
Network Long Term Evolution (LTE) or 4G will deliver higher speeds and more reliability. But who will benefit the most? And how will they benefit? Service providers with increased ARPU? Network equipment vendors with increased sales? Device manufacturers with increased churn? Software vendors with increased markets? Consumers with increased functionality?
Review/Analysis:  
Who will benefit the most from LTE deployment? The shifts that are occurring involve a whole lot more than just deployment of LTE.  Let’s look at key topics for each of the players:

Service Providers:
 

1. Everyone is jumping on LTE. Why? Because the devices like SmartPhones and Netbooks suck up so much capacity that nothing else will deliver the services that consumers are starting to aggressively utilize and demand. If you don’t evolve to LTE, you will not be able to compete.
2. Network build-out will be very expensive and will occur in stages over 1-5 years depending on the size of the network. Fiber backhaul is a must. Broadband stimulus funds will drive rural fiber deployment.
3. Increased ARPU will come from layered and personalized, lifestyle related services. Infrastructure management platforms will be more critical than ever.
4. Cloud computing will accelerate and continue to increase bandwidth demand.
5. The need for dynamic bandwidth management to improve QOS will increase dramatically.

Network Equipment Vendors:
 

1. Big or small, OEMs will all benefit if positioned correctly.
2. Traditional relationships will not survive. Specialty players (startups and niche players) have tremendous opportunities ahead of them.
3. Technologies must be stable and in place before mid-2010 to satisfy lab trials.
4. Niche players have prime opportunities within the initiatives of large OEMs to penetrate the small to medium enterprise space.

Device Manufacturers:

1. Traditional cell phones, PCs and notebooks will remain commoditized and decrease in volume.
   Netbooks, driven by key Microsoft (NASDAQ:MSFT) initiatives, will dominate consumer and corporate purchases.
2. Corporate refresh cycles will shrink to 2-3 years at most. Prices will fall, but increased refresh will assist.
3. External, attachable device manufacturers will become critical players.
4. Unique designs, integrating the best of Smartphones and Netbooks, layered with Bluetooth and wireless devices, will blend the two markets and open the best opportunities for manufacturers.
5. New and improved device types such as laser keyboards and projectors, flexible keyboards, solid state drives and others will become commonplace to maximize quality of experience.

Software Vendors:

1. Smaller software vendors have a prime opportunity. Network and device shifts will open new markets through cloud based solutions.
2. Larger vendors must create ‘good enough’ versions of their products in order to compete in the small to medium enterprise space and to simplify integration with more portable devices.
3. Blended solutions from multiple vendors will maximize penetration into untapped markets.
4. Independent developers will have huge exposure through Smartphones, Netbooks and application library offerings from Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG) and others.

Consumers:

1. Consumers win. Period.
2. Blending of devices will increase lifestyle integration and decrease the number of devices.
3. Cloud based software with per usage models will become the norm.
4. Media shifting into the cloud will deliver staggered stream services across all devices for continuous enjoyment.
5. Competition for consumers will increase similar to the previous cell phone market and drive prices down.
   Ubiquitous services.

Everyone will win (or have the opportunity to win). For a while…
 

SPEAK WITH THE AUTHOR:
David Croslin consults on this and many other topics through Gerson Lehrman Group. Please click here to contact David Croslin. 

SPEAK WITH THE AUTHOR:
David Croslin consults on this and many other topics through Gerson Lehrman Group. Please click here to contact David Croslin. 

SPEAK WITH THE AUTHOR:
David Croslin consults on this and many other topics through Gerson Lehrman Group. Please click here to contact David Croslin. 

Original Web Article: Steve Jobs Takes Aim At Competitors

Review Summary: 
The recent Apple announcements (iPod Nano video capability, iPod Touch Gaming and iTunes Enhancements) are evidence that any form of information moving across the Internet, be it videos, music or games, are just more types of media content for Apple to innovate with. Why do you need a special game console like the Sony (NYSE:SNE) PSP or Nintendo (OSA:7974) DS? Or a device designed for just taking video like the Cisco (NASDAQ:CSCO) Flip? Apple is blending the multimedia experience into one device.
Review/Analysis:  
Apple now offers over 21,000 different games and 75000 applications. All can be loaded on the same device, the iPod Touch. Listen to your music. Web access. Social networking. All for $199.

Hmm…seems that my kids Sony PSP and Nintendo DS are running a little short of functionality.

So, what do these Apple announcements mean?

1. iPod Nano video capability - Just like the iPhone has virtually obliterated the old cell phone market, wrapping video capability into the new Nano will kill the stand alone video camera market for devices like the Cisco Flip camera. Why not carry a single device that does videos and music. Oh yeah, and stores a whole lot more for a lower price.  

   The Flip will not survive unless the price drops to $49 or less. And Cisco will never be able to duplicate the music availability and flexibility of iTunes. Enough said. 

2. iPod Touch Gaming - Same again. Looming death for traditional devices dedicated to gaming like the PSP and DS.  With the fabulous user interface and clarity of the iPod Touch, mobile Internet gaming will never be the same. And you get your portable web access as well.

Dedicated game consoles like the Microsoft (NASDAQ:MSFT) xBox and the Nintendo Wii are probably next on the Apple target list. Why buy an xBox when a nice Netbook with the right software and external devices can deliver the same experience and give you a portable computer to boot. The Wii might last longer just because it is unique and probably has some patented technologies.

In short, Apple is converging all types of media: audio, video, games. And it is converging all types of services: browsing, communications, social networking. And it is doing it with Apple devices that have small footprints and proven technology. All with a staggering consumer acceptance rate.

How will Cisco, Sony, Nintendo, Microsoft and others respond? That answer is too long for this news review…but, I will tell you that they better move fast.
 

SPEAK WITH THE AUTHOR:
David Croslin consults on this and many other topics through Gerson Lehrman Group. Please click here to contact David Croslin. 

SPEAK WITH THE AUTHOR:
David Croslin consults on this and many other topics through Gerson Lehrman Group. Please click here to contact David Croslin. 

SPEAK WITH THE AUTHOR:
David Croslin consults on this and many other topics through Gerson Lehrman Group. Please click here to contact David Croslin.