Selasa, 31 Juli 2012

Why Bing's Facebook Integration Won't Help Most People

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On Monday, Microsoft added the capability to 'tag' Facebook friends while searching in Bing, actively soliciting the wisdom of real people when conducting searches. While this sounds like a great idea in theory, it's unlikely to be used except by a majority of users.

That's not to say bringing Facebook to search isn't a good idea. Microsoft's search strategy now leans heavily toward social, and encouraging one's friends to engage via Bing can only help the company's case.

But is it useful? Only in certain situations.

When Does It Help?

Here's where the new announcement fits in. In May, Microsoft redesigned Bing to passively search information from virtually all of a user's social networks. Bing now uses a 'sidebar' to let users optionally search these networks, complementing the results from the main Bing algorithm. At the time, Microsoft said it might launch a future feature called 'Broadcast,' which would actively ask friends on those social networks for advice or answers. That Broadcast feature, specifically for Facebook, went live on Monday.

Specifically, users can 'tag' friends by naming them. When the search is 'submitted,' Bing publishes a query to a user's timeline, asking them, for example, 'Can you recommend the best hiking trails?' for a given area. Bing can tag up to five friends at a time.

What 'Search' Really Means

A quality search engine excels in providing immediacy, relevance and context. The race toward immediacy has largely faded into irrelevance; Google has argued that its Google Instant results save 2 to 5 seconds per search, or 350 million hours of user time per year. Still, users who search via the Internet Explorer or Chrome browsers can find relevant results almost instantly, through previous searches, autosuggested results or through an actual search via toolbar or search field.

And, in a way, that's the issue with Microsoft's tagging feature. Having essentially 'solved' the problem of immediacy, Google and Microsoft have moved on to relevancy (apple trees vs. Apple) and providing context. Both Google and Microsoft now attempt to return 'answers' to common questions, such as the height of the Empire State Building. Context is provided by related searches and, most recently, the social aspects of search.

But every time a friend is asked what his favorite restaurant in New York is, there's an implicit delay. That's not to say that the average Bing user won't have a network of connected, informed enthusiastic friends. It's that this network has to respond almost instantly for the 'immediacy' aspect of the search paradigm to remain in effect.

Do Delays Matter?

Now, does this hesitation matter? For certain searches and certain users, no. If I'm planning a trip to Hawaii, and want to know the best hotel to stay at on Kauai, soliciting my Facebook friends during the planning stages makes sense, especially if I have a buddy who was stationed at Pearl Harbor and may know. But if I have 45 minutes to find the best BBQ joint near the Kansas City airport, I'm not sure that my friends will be the fastest, most reliable source of information.

There's an exception, though. On July 18, Bing added Foursquare results to its social sidebar. Foursquare, Yelp and a number of other social networks publish your opinions for the world to see. They're chiseled in stone, so to speak, and permanently searchable by your friends and others. It may be that my friend Dave has also been grounded in Kansas City, sought out some ribs and posted his experiences on Yelp. In that case, that results of that search would be immediate, relevant and fruitful.

Naturally, Bing - and anyone who uses this new feature - will have to tread carefully about bothering others for answers. Users are already hypersensitive to 'spamming' their friends with pithy updates from Facebook social games and other apps. On the other hand, Microsoft has made the right choice to not automate the social search, instead forcing users to write their own 'query' to their friends, using their own jargon and phrasing. That's an important touch, as it will encourage the recipients to think of the query as a request for assistance, rather than an auto-generated spam message.

Right now, suggesting friends seems to be largely based on location. Still, it's easy to imagine scenarios where you might be in the market for a new car, for example, and your friend across the country already owns the Acura you're considering leasing. Bing needs to know that, however, in order to take advantage of the connection.

Bing vs. Google

Google, meanwhile, offers Search Plus Your World, but nothing that's comparable to the new Bing feature. For one thing, Google's offering focuses almost exclusively on Google+, and performs searches against information there. A user might get lucky while looking for a New York City restaurant recommendation if a Google+ contact happened to have put one in a post, but there's no way to reach out to your contacts. For what it's worth, Bing is head and shoulders above Google in this area.

Microsoft is likely thinking of the problem in a sort of hierarchy of value: Bing can deliver millions of search results, curated for you, which you ultimately select and explore via its search engine. Searching the social networks that you belong to narrows those results and adds value. At the top lies the personal recommendation from your friends, the highest value, but also probably the least timely.

Basically, there's nothing different here than the person who tweets or updates: 'HELP! Need Thai recommendations for the Mission, quick!' or 'So what do you think of the new BMW 3-series?' That person may get lucky and get a timely, useful answer. Or, well, not. And that person doesn't need Bing to do it, either.

To take advantage of Bing's new social element when you really need it, though, it helps to have lots of friends with many, many opinions - and who have already published them for Bing to find.



The Method Behind Apple's Patent Madness

The battle for smartphone supremacy has become a two-horse race, with Samsung taking the lead from Apple and its vaunted iPhone. Now Apple is trying to wrest it back by pummeling Samsung over alleged patent infringement. Here's a peek into Apple's patent-litigation playbook - and prospects.

Apple wants Samsung to pay $2.5 billion and take 25 devices off the market for copying its iPad and iPhone designs. Samsung figures that it owes Apple $28,000 at most. That is less than the cost of a new Mercedes Benz. Obviously, the companies are not close to reaching a settlement outside of court. 

The Best Defense is a Good Offense

Apple's iPhone and iPad are considered the best of the best mobile devices on the market. The average consumer in the United States will likely think of an iPhone when someone says the word smartphone. So why is Apple pursuing Samsung so relentlessly?

Because Apple is not the world's most successful smartphone maker. That honor belongs to Samsung. 

Samsung shipped nearly 50 million smartphones in the second quarter of 2012. Apple shipped 26 million. For the quarter, Samsung controlled the mobile industry with 32.6% of market share against 16.9% for Apple. That is an impressive figure for Samsung and disappointing for Apple, but the fact is that Apple is competing with an aging product (the iPhone 4S) that was released in October 2011. Samsung releases new smartphones every quarter replete with robust marketing campaigns. 

'[Apple's] quarter-over-quarter shipment decline came six months after it unveiled its latest iPhone," research firm IDC stated in its quarterly smartphone market share report. "The decline is not unusual as iPhone shipment volume is highest in the first two quarters after its release. The company's once-a-year release cycle usually results in two quarters of lower volumes leading up to the next-generation model introduction.' 

It makes sense that Apple would be down for the quarter as consumers wait for a new iPhone, which is expected in the fall. Apple's Q2 results are actually very similar to same quarter last year, when shipments were depressed until the iPhone 4S came out. Apple then dominated the holiday shopping season and beginning of 2012.

During Apple's lulls, though, Samsung bests the iPhone with a wide variety of Android Galaxy smartphones. Samsung's approach lacks subtlety. It releases a plethora of devices across different price points and makes deals with as many carriers as possible. It has proven effective to the tune of 50.2 million devices shipped in Q2.

Samsung has a very long tail of devices and one of Apple's goals is to limit its backlog. Why would someone spend $199 on an iPhone 4S or even $99 on an iPhone 4 with a contract when Samsung offers Galaxy devices for next to nothing? Every Galaxy sold is one less iPhone in a consumer's pocket. This is what Apple is trying to stop.

Apple's Prospects for Victory

A total victory for Apple would be gaining the full $2.5 billion award (or more) and a ban of all 25 products from the United States. The court must decide not only if Samsung's devices copied Apple, but also if Samsung willfully and malevolently copied Apple to steal market share from the iPhone maker. If Samsung made conscious choices to copy the design of the iPhone and iPad, then the award could be much higher.

However, a full victory by Apple is not likely. As the plaintiff, Apple faces the burden of proof. It has to prove that everything it says about Samsung is true beyond doubt. That will be very difficult to pull off in a trial where time is limited. Samsung will claim - rightfully - that it is also an innovator of mobile products, and that Apple is unfairly trying to limit competition.

Samsung's biggest win would be to get Apple off of its back so it could continue business as usual which, as we have seen, is very good. Samsung has already addressed many of Apple's complaints in more recent Galaxy models, such as the brand new Galaxy S III, so those are insulated from the possibility of being banned for the time being.

No matter the outcome, Apple's campaign against Samsung (and every other significant Android manufacturer) is not going to stop. Once one series of patents is litigated and a round of devices affected, Cupertino will find fault with the next bunch of devices. The Galaxy Note, Nexus, S III, and all of Samsung's newest line of Galaxy Tabs are likely to become bones of contention in 2013.

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The End of Cable TV? How Everyone Will Watch Television In The Future

Even as cable/satellite TV carriers like Comcast and DirecTV squabble over dollars and cents with broadcast and cable networks like NBC and Viacom, the very structure of their decades-old business model is under attack from new Internet technologies and services, as well as new government regulations. At stake is the future of how people watch and pay for television and video - and who controls the experience.

With plot twists like last-minute negotiations ending in content blackouts, regulatory changes that could derail well-established business models, and brand new technologies delivering video content in brand new ways, this TV-delivery drama should be a blockbuster.

The question is, what surprises will the next episode bring? The search for possible spoilers brings up a wide range of theories from all over the industry, as various players, regulators and observers try to figure out what happens next.

Kevin Lockett, Digital Media Analyst from Lockett Media, says the result will be a fundamentally changed cable industry - one that will have to be far more transparent and flexible in order to keep its customers from defecting to new Internet-based options. If and when the general public figures out that it now has real alternatives, Locket says, 'the cable companies are in trouble.'

Previously On Cable TV'

For two decades, cable TV, joined later by satellite providers, has been the dominant force in delivering video content to homes and businesses in the US. Lately that dominance has been challenged from within by cable TV's own business practices and from without by Internet video providers like YouTube and streaming Internet TV delivered to special set-top boxes with weird names like Roku and Boxee, or Blu-Ray DVD players, or even 'Smart' TVs themselves.

This new class of technology is hard to label, since there are so many variations on delivery devices, but over the top (OTT) platforms is one name that seems to be getting some traction. OTT is a broad term that describes not only the devices that receive and display Internet TV, but also the online services that deliver them. A tablet, then, is not an OTT device in itself, but it can receive OTT-delivered content, such as that from Hulu and iTunes.

OTT devices vary in form, but they share the function of bringing in video content over existing Internet connections through service providers like Hulu, Amazon Instant Video, and Netflix. Such services feature on-demand video programming at monthly rates that are typically much lower than cable subscription rates (for a more limited range of content, of course).

Who's Gone Over The Top (OTT)?

How much attention is OTT getting? The Interpret LLC's New Media Measure syndicated report sets the number of US consumers age 18-65 that own an Internet-enabled set top box (like a Roku player, Apple TV, Slingbox, Vudu box, etc.) at 13.6%, reported a company spokesperson.

Less than 14% may not sound like much, but OTT has been around for only three years. And Interpret's numbers don't include the millions of users watching alternate video sources like YouTube and Vimeo.

The other half of the squeeze on the cable TV industry comes from the ossified business practices of the industry itself. Cliffhanger battles for carriage rights that lead content creators to pull their programming from cable and satellite systems if they can't get a deal they like is shooting the industry in the foot.

Frustrated with what appear to be more frequent content blackouts and ever-rising rates, consumers - and lawmakers - are applying pressure for less bundled programming and more à la carte-style programming. Content providers like Viacom and Disney rely on channel bundles to keep alive channels that consumers might not otherwise pay for.

Bundling Is The New Villian

The animosity over channel bundling is building. During the recent dispute with Viacom that led to a content blackout of Viacom channels for 26 million viewers, DirecTV laid it all out for the New York Times:

'Programmers like Viacom typically won't allow anyone to buy their channels individually, but we hope to change that,' DirecTV told the Times. 'We currently pay them hundreds of millions of dollars every year already, and if Viacom thinks their networks are worth a billion more, then you have to be able to select what's most important in your own living room.'

DirecTV was willing to endure public blowback for dropping popular Viacom channels lilke Comedy Central and Nickelodeon because it was more afraid of bundling. In the past, customers had little choice but to pay for channels they didn't watch to get the ones they were interested in.

But things are changing. Now customers can go to competing cable companies in the same town, or buy a satellite dish. Or leave the game completely to use OTT devices and services. Suddenly, the cable companies are pushing back at bundling demands from content producers.

Finding the Plot Motivation

As vice president of Accedo, a software vendor that builds apps and application interfaces for OTT devices, David Adams knows first hand about the changes in the cable TV industry.

'We've moved from just a few services in there with their toes in the water, to these services actually driving strategy,' Adams explains.

Ironically, though, the barriers to sweeping change within the existing cable TV industry are the same factors driving the change: business models and technology. Even as content takes new paths producer to consumer, Adams says, 'when you have these 10-year, long-term carriage agreements in place, it's hard for the [cable TV] industry to respond.'

Deeply ingrained ways of doing business show up even when cable providers or broadcasters try to adapt to the growing presence of OTT. A classic example is HBO Go, which offers on-demand programming over the Internet - but only to existing HBO customers. 'They're trying to adapt, but their business model isn't changing,' Adams says. Instead, 'they are looking to become more competitive with OTT.'

The real potential for OTT may come if it can combine the full-screen ad experience of traditional television with the targeted marketing promised by OTT technologies.

According to Adams, though, that combination is not yet mature enough to attract major advertiser interest and jump start adoption of OTT.

Is Cable Doomed?

'We'll always be able to choose cable,' analyst Lockett predicts. 'It's in their best interests to appeal to their customer base and they eventually will.'

But even as non-technical people learn more about OTT, Lockett doesn't see the complete abandonment of cable practices like channel bundling. Unbundling or better bundling won't be the only thing keeping cable TV alive - instead, cable will have to find a new role. 'AM radio is still around after all these years,' Lockett notes, albeit serving a more limited niche.

Adams, too, doesn't predict the demise of cable. Customers are still dedicated to the big, full-screen watching experience, he believes, and cable remains one of the best ways to get that experience.

Instead, he sees the most revolutionary changes coming TV consumption from the use of tablets and other mobile devices in conjunction with TVs.

A Starring Role for the Second Screen

'The second-screen experience is something the content producers in Hollywood are playing around with now,' Adams explains. 'The combination of tablets and TV will change the way we view television forever.'

Tablets and smartphones already provide a range of second-screen experiences - from following Twitter reactions to the Olympic opening ceremonies to show-specific apps like one launched last winter for the popular Fox reality show 'American Idol' or the additional show content delivered in the form of a graphic novel for USA Network's 'Burn Notice.'

Meanwhile, companies like Shazam are trying to ease the need for viewers to hunt for apps and content related to a given show. The music-recognition app recognizes the soundtrack from a shows and downloads related content or apps chosen by the show's producers.

Far from a challenge to cable TV, the second-screen could actually help save it. Cable TV providers could use the second screen to enhance viewing of primary video content and deliver even more targeted advertising - helping to offset income lost from the decline of bundling. That, in turn, would help cable TV service providers hold down subscription costs, and stem the bleeding of customers looking for less expensive alternatives.

Cable TV's ratings may fall as OTT becomes more popular, but don't cancel cable's season just because the plot is getting a major rewrite.

 

Images courtesy of Shutterstock (except for iPad image).



Senin, 30 Juli 2012

Weekly Wrap-up: Let's Hear It for Great Web Apps

Weekly Wrap UpIf you're running a startup, you need to see these essential apps for startups and entrepreneurs.  People aren't willing to try a slow app more than a few times.   Girls Who Code is educating young ladies in the fine art of programming.  After the jump you'll find more of this week's top news stories on some of the key topics that are shaping the Web - plus highlights from some of our six channels. Read on for more.

7 Essential Apps for Entrepreneurs

These days everyone has their favorite mobile apps, ones that make both their personal and business lives run smoother. But are there any apps that are must haves for entrepreneurs and startup founders? For startup entrepreneurs, it's crucial to find the apps that actually make a difference to you and your business. Plenty of startup founders are already experts in this area. Heck, apps are the business of many startups these days. But startups in other fields may not be so savvy. More

[Infographic] What is Slowing Down Your Mobile Apps?

Ever try to launch a mobile application and get nothing but a spinning wheel? You're not alone. 74% of users will leave a mobile website if it does not load after five seconds, according to a survey conducted by Compuware, a software company. People are more patient with apps, as 50% of users will tolerate load times longer than five seconds. What is slowing down your apps? More

Girls Who Code: Crashing the 'Brogram'

The high-tech industry is largely a guy's world made up of "brogrammers" and job ads that ask, 'Want to bro down and crush code?' Small wonder that women made up just 21% of all programmers in 2010, off from 24% in 2000. Or that less than 10% of venture-backed companies have women founders. An organization called Girls Who Code is trying to reboot the system starting from the beginning. More

More Top Stories

Online Video Ads Hit a Record: 11 Billion Spots Streamed in June

It's official: Online video advertising is a force to be reckoned with. More than 11 billion ads streamed over the Web in June, amounting to 25% of all video content viewed. That online video ad traffic, as reported by comScore, translated to 4.6 billion minutes watched by 180 million Internet users in the United States. The average duration of an online ad was four seconds. The top five ad networks streamed at least one billion ads each. Google took the lead with 1.41 billion ads streamed. Google's domination isn't surprising; YouTube serves more than 99% of video on Google-related properties and is the third most popular website in the world, with 72 hours of video content uploaded every minute. More

Mark Zuckerberg Wins Approval For His First-Ever Patent Application - From 6 Years Ago

In the last few months, Facebook CEO Mark Zuckerberg took his company public, got married and scored a nearly $6 million home loan at just over 1%. What could possibly top all that? How about approval of his very first patent request from way back in 2006 - covering privacy issues no less? Turns out the US Patent Trademark and Office (USPTO), though it originally rejected it, just granted Zuckerberg a patent that can only be described as the ultimate geek vanity trophy. More

How Microsoft Plans to Use the Business Market to End Apple's Tablet Dominance

In 2010, Apple blindsided Microsoft - and most everyone else - with the phenomenal success of the iPad. That success is now eating away at Windows PC sales. While Apple's innovation took Microsoft down for the count, the software giant has regrouped and is trying to come back by shifting the battlefield from consumers to businesses. To turn the tide, Microsoft is counting on business users, a market where Apple remains relatively weak and CEO Steve Ballmer's crew retains several critical advantages. Microsoft's counterpunches will include Windows 8 and Office 13, a combination Apple can't match in the business world. More

Instagram Growth Far Outpaces Facebook or Twitter

Instagram is exploding. Sure, the mobile photo-sharing service has been the object of buzz and adoration since day one, but few could have predicted a growth rate quite this phenomenal. Instagram boasts an amazing 80 million users, the company announced today. When Facebook announced its acquisition of Instagram in April, the photo-sharing app's user base approached 30 million. In just under four months since, its user base has grown by more than 166%, fueled in large part by the release of an Android version and tightening integration with Facebook. Instagram acquired 15 million users in the six months between Sept 2011 to March 2012. It ballooned by another 20 million between April and May. Another 30 million users in the last two months? No problem. More

Diagnosis Promising For mHealth

mHealth is an emerging trend in technology. It stands for 'mobile healthcare' and means utilizing smartphones and medical mobile devices to help diagnose and monitor health conditions. According to a new research paper from the Economist Intelligence Unit (commissioned by PwC), the adoption of mHealth will be slow in the healthcare industry. That's due to complexities and technology incompatibilities. However, there is more immediate hope with the thousands of consumer mHealth apps available on smartphones. More

Google Search Shapes Memory, New Research Shows

What's the first thing you think of when faced with a difficult (or even a not-so-difficult) question? According to four recent studies, your mind is primed to think about computers. In the past decade, we have retrained our minds to google just about everything we want to know, according to new research by Betsy Sparrow, Jenny Liu and Daniel M. Wegner. 'The Internet has become a primary form of external or transactive memory, where information is stored collectively outside ourselves,' the researchers, who are based at Columbia University, University of Wisconsin, and Harvard respectively, write in the July issue of Science. More

Facebook Shares Slip After Disappointing Zynga Earnings Report

Zynga's share price plummeted almost 40% in after-hours trading Wednesday after the company reported a $22.8 million loss for the second quarter. The social gaming developer also revealed that it was lowering its outlook for the rest of the year, due in part to "a more challenging environment on the Facebook web platform." Zynga is hugely dependent on Facebook; it reported earlier this year that 92% of its revenue was generated through the social media giant. More

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Google's Stupid Street View Flub Will Result in Increased International Scrutiny

Google has acknowledged that it broke its promise to delete all the personal data its Street View cars collected from unsecured Wi-Fi networks in Britain and other countries two years ago. While Google says the failure was a mistake, its long-term consequence could mean more scrutiny from British regulators, which could slow the roll out of future services.

Google's Screw Up

Google told Britain's Information Commissioner's Office Friday that it still had a "small portion of payload data" collected from the cars that traveled through Britain photographing neighborhoods and using Wi-Fi hotspots to record location. At the same time, Google mistakenly gathered personal data, such as emails, from unsecured networks.

Google's discovery that it still had some of the data brought a quick response from the ICO. "The ICO is clear that this information should never have been collected in the first place and the company's failure to secure its deletion as promised is cause for concern."

The Ramification

The upshot of getting on the ICO's bad side is increased scrutiny, because the office may decide it can no longer trust Google to keep its word. "The first time they (regulators) ask you to do something and you say you did it and you don't do it, the next time ' is going to be far more invasive, because now they don't trust you," Rob Enderle, analyst for the Enderle Group, said. "This just means the relationship with Great Britain is going to degrade, and probably along with it, the European Union."

Indeed, the ICO immediately upped its scrutiny by not granting Google's request to delete the remaining data. "Our response, which has already been issued, makes clear that Google must supply the data to the ICO immediately, so that we can subject it to forensic analysis before deciding on the necessary course of action."

Privacy Advocates

The disclosure brought a quick I-told-you-so response from privacy advocates. The Electronic Privacy Information Center said the ICO's initial investigation in 2010 was inadequate and the office never should have let Google delete the wrongfully collected data on its own.

"Now, the Commission will have the opportunity to examine the data that was seized and pursue a more comprehensive investigation," Marc Rotenberg, executive director of the EPIC, said in an e-mail. "This is a critical matter. Everything Google has said about Street View has been misleading, even the name! Because of course the cars did not simply capture images of streets, but also intercepted private Wi-Fi communications."

Where Was The Data?

In its letter to the ICO, Google said it found the data while physically inspecting and re-scanning Street View disks. "In conducting that review, we have determined that we continue to have payload data from the U.K. and other countries," Peter Fleischer, global privacy counsel for Google, said.

Fleischer did not list the names of the countries, but said the company was in the process of notifying the relevant authorities. Google's Street View cars gathered data from 30 countries.

Google Hurt Competitively

Depending on the reaction of authorities in the affected countries, Google could find itself having a more difficult time in getting future services approved. Such delays would benefit Google's competitors. "If a regulatory body doesn't trust you, then they fundamentally don't trust you," Enderle said. "That means they have to monitor everything that you do and that increases dramatically the amount of bureaucracy you have to work through to do anything."

Photo by Brian J. Matis.



ReadWriteWeb DeathWatch: Netflix

Unlimited streaming made Netflix the Blockbuster-buster, but the company's value has dropped 75% in the past year after its price hike/Qwikster fiasco. Can original content and overseas expansion reverse the slide?

The Basics

Netflix began as a mail-order alternative to renting videos from Blockbuster: perfect for folks looking for a larger catalog and a lack of late fees. Over time, it one-upped the giant video chain, adding instant, on-demand viewing and helping drive Blockbuster into bankruptcy.

in 2010, Netflix's streaming content surpassed the DVDs it delivered, and streaming is now its flagship service. Nearly every home entertainment device offers a Netflix application, and the company's streaming products account for 20% of peak downstream traffic in the United States.

But Netflix has had a shaky year. Twelve months of user churn since its widely criticized price-hike fiasco have rattled investors, and mixed earnings results were not enough to right the ship. Netflix returned to profitability and added 1.1 million streaming video subscribers, but the growth was slower than investors had hoped for, and a loss of 850,000 DVD subscribers negated many of those gains. Overall, concerns about domestic growth won the day, lopping off a quarter of the stock's value on Wednesday. The stock closed Friday at $58.92, less than a quarter of its 2011 high of more than $295 per share.

The Problem

Netflix has three core problems with its business model, and only one of them has an easy solution.

1. Content: Netflix competes with its partners, and that's a tough spot in a business so dependent on playing well with others. Cable ISPs dedicate a fifth of their Internet bandwidth to Netflix, see nothing in return, and lose a ton of revenue that might have gone toward on-demand purchases. If they rebel and begin data throttling for video services, Netflix's performance could suffer dramatically.

Just as important, large movie studios and content providers prefer the cable companies' pay-as-you-go model, which allows greater pricing flexibility and a higher potential payout for popular content. Several high-profile studios have already defected (most notably Starz-Disney, followed by Epix, which was supposed to replace it).

Meanwhile, Netflix' forays into original content are making content deals even tougher. Recently, HBO doused expectations of its programing showing up on the service with an emphatic 'We are not in discussions and have no plans to work with Netflix.' HBO won't be the last content provider to say, 'no thanks.'

2. Costs: Running an all-you-can-eat video streaming service is a lot like owning a gym: You need to engage customers enough to justify a renewal, but if they over-use your service, you can lose your shirt building the infrastructure to accommodate them. Netflix works with Content Distribution Networks (CDNs) like Akamai to mitigate these costs, and it has recently moved toward creating its own infrastructure. But until bandwidth is free, basic math will always matter.

3. Craziness: With its enigmatic, charismatic and nutty CEO (more on him below) behind the wheel, Netflix has matched years of smart business moves with nearly as many bouts of downright wackiness. Minor head-scratchers include the decision to remove user preference profiles from streaming accounts, while leaving them there fo DVD subscribers. More disastrous decisions include the 2011 price hike that led to nearly a million user defections, and the so-stupid-SNL-made-fun-of-it Qwikster debacle that angered users and led to an executive shuffle.

The Players

Reed Hastings, Founder and CEO:  Reed Hastings has vision and understood the importance of streaming early on, but execution has sometimes been a problem. And he doesn't seem to understand his users at all. In an open letter to the community, Hastings apologized for his poor choices, and he's surrounded himself with cooler heads. Letting his managers participate more actively will be key to his future success.

Kelly Bennett, CMO:  

Kelly Bennett is a recent acquisition from Warner Brothers, and an integral part of righting the ship. A solid foil to the mercurial Hastings, his first goal is restoring a sense of normalcy after the Qwikster flop. His work in international marketing will help guide the company's global expansion, and his studio connections might help calm some nerves. 

The Prognosis

While some renegade analysts see immediate opportunity in Netflix stock, the prevailing view is that things will get worse before they get better. Original content is a necessary long-term play, but even a couple hit shows won't match the broad appeal of the content Netflix has already lost. Studios demanding a bigger cut of the pie will further strain margins and profits. If its market cap (currently just above $3 billion) drops much lower, the service may become an acquisition target or potential partner for a content company.

Can This Company Be Saved?

Netflix is doing all the right things on the infrastructure side, but its success is tied to content. To return to king-of-the-industry status, Netflix must maintain a core of content subscribers actually want to watch. While some of this depends on having the cash to pay for it, Netflix can sweeten the deal by providing access to new markets. The company's expansion into Latin America ' particularly markets in which television distribution is effectively locked down ' could open new distribution channels for studios and ease domestic deals. In many ways, its all up to Kelly Bennett.

The Deathwatch So Far

Research In Motion: Things are hurtling downhill even faster than expected. Massive losses - more than 11 times worse than expected - and new delays in its Hail Mary BlackBerry 10 operating system update have made the company's dire situation even harder to ignore. And over the weekend, a federal jury found RIM liable for $147 million in patent damages to Mformation Technologies.

HP: No change in status

Nokia: The mobile phone giant's quarterly revenue and earnings exceeded expectations and it has reduced its cash burn rate, but the company lost money yet again and saw its debt ratings cut to junk status. And it still hasn't cracked the U.S. smartphone market as it halves the retail price of its flagship Lumia 900 to $49.99.

38 Studios: No change in status

Barnes & Noble: No change in status

Sony: No change in status

Groupon: Groupon's stock price recently hit an all-time low on a downgrade from Evercore Partners, and a perceived weakness in social companies, led by Zynga.

T-Mobile USA: No change in status



Sabtu, 28 Juli 2012

German Student Defies Google Cease-and-Desist with 1 Million Signatures

Image of German Student Defies Google Cease-and-Desist with 1 Million Signatures

Google is determined to take down Youtube-mp3.org, a site that rips downloadable mp3 files from streaming YouTube videos. Philip Matesanz, the site's 21-year-old owner, has collected 1.2 million signatures in protest against the action. Will his petition move the search giant?

Matesanz, a German citizen, lodged the petition through Change.org last month after Google sent him a cease-and-desist order claiming that Youtube-mp3.org violated YouTube's terms of service. Since then, Matesanz has collected 1.2 million signatures from all over the world, making his petition one of Change.org's five most-signed petitions. (The speed with which Matesanz gathered the  signatures isn't so surprising, considering that his site gets 1.3 million visits a day on average.) Matesanz plans to deliver the signatures in person.

Matesanz and his lawyers argue that, since Youtube-mp3.org does not use YouTube's application programming interface, it does not violate YouTube's terms of service. In addition, the petition cites a legal precedent for the kinds of copies Youtube-mp3.org makes and distributes. YouTube is like a broadcaster, it maintains, and 'for decades people were allowed to take a private copy of a public broadcast,' recording songs off the air for their own use.

Will Google listen to Matesanz and his million supporters? Not likely. Google has to answer to major corporations such as Viacom, which do not appreciate unauthorized copying of their material, especially through the Internet. 



6 Awesome Evernote Apps That We Guarantee You've Never Seen

Image of 6 Awesome Evernote Apps That We Guarantee You've Never Seen

Evernote has announced the finalists of its 2012 Devcup. The finalists will get to pitch at the Evernote Trunk Conference on August 24 for the chance to win some development dough. For the Evernote users out there, here are six cool new apps to enhance your outboard brain.

EV - Brazil

EV allows the 4 billion feature phone users around the world to create notes, search existing notes and receive reminders from Evernote, all via SMS.

EverClip - Hong Kong

EverClip is an iPhone app that gives you most of the power of Evernote's desktop Web Clipper for the browser. It runs in the background, and when you copy anything to your phone's clipboard, EverClip can send it straight to your Evernote account.

KustomNote - USA

KustomNote is a Web-based app that lets you find or create pre-set templates for nicely styled Evernote notes and fill them in through easy forms.

LiveMinutes - USA

LiveMinutes is a Web-based app that lets you share and collaboratively edit Evernote notes with a team in real time.

PlaceMe - USA

PlaceMe is an iPhone app that logs your location as you move through your day and saves a log of your travels privately back to Evernote.

Spotwish Go! (People's Choice Award) - Brazil

Spotwish is an Android app that lets you create an event, like 'basketball game' or 'party at Anna's house,' and share it with anyone participating. Everyone in the event can share pictures and comments about the event, and it all gets synced back to their Evernote accounts as a 'memory.'

Want discounted tickets to the Evernote Trunk Conference?

If you're interested in attending the Evernote Trunk Conference on August 24 in San Francisco, you can get tickets here:

http://etc2012.eventbrite.com/

Tickets are $100, but the first 30 people to sign up with the code ETCREADWRITEWEB get 50% off!



Have Smartphone Sales Hit the Saturation Point?

AT&T and Verizon both nailed big numbers in their earnings reports this week, driven by smartphone sales. But new reports suggest a bleaker future for smartphone growth, which has dipped to its slowest growth rate since the fall of 2009. Could the smartphone market finally be hitting a saturation point - or is this just more fallout from global economic woes?

Smartphone Sales Growth Halved

Strategy Analytics, which tracks total global smartphone numbers, has released its 2012 second quarter report showing a much slower growth rate in global smartphone shipments. Sales are up 32.2% annually to 146.1 million units in Q2 2012. That sounds pretty good, except when you consider that at this time last year, 2Q 2011 smartphone annual growth was running at 77.1%.

The mobile analytics firm pegs 'a volatile global economy, maturing penetration of smartphones among contract mobile subscribers, and some Apple fans holding off purchases in anticipation of a new iPhone 5 model later this year' as reasons for the slowest growth rate since Q3 2009.

Waiting For The iPhone 5

During the Apple earnings call Tuesday, Apple CFO Peter Oppenheimer indicated that anticipation about the upcoming iPhone 5 (or whatever Apple decides to call it) is affecting the company's iPhone sales.

'We're reading the same speculation about a new iPhone as you are, and we think this has caused some delay in purchasing,' Oppenheimer said on the call.

For its part, AT&T and Verizon aren't reporting any such slowdown. Almost 62%, or 43.1 million, of AT&T's postpaid subscribers are now using smartphones. Verizon has 44.4 million smartphone subscribers, half of its 88.8 million wireless postpaid subscription base.

The iPhone 5 speed bump, if it is a significant factor to curtailing smartphone growth, is only a temporary problem - solved when Apple releases its next device. Digging a little into Strategy Analytics' numbers, though, reveals that Apple may face a bigger problem.

Market Share Shifts

Last year at this time, Apple just barely led global smartphone market share at 18.4% to Samsung's 18.3%. Nokia was not too far back at 15.1% of the market. What a difference a year makes: this year's report has Samsung dominating at 34.6% of the global market (nearly double its Q2 2011 share), with Apple falling a bit to 17.8%, and Nokia's share getting more than halved to 7.0%.

Operating systems were not broken out in the report, but presumably much of Samsung's growth came in Android phones, while Nokia's smartphones run Symbian and Windows Phone 7. Smartphone shipments aren't the only stat to factor in when monitoring platform success, but this news doesn't spur confidence in Microsoft's plans to address the mobile sector.

Feature Phone Growth Falls Flat

The overall slowdown isn't just limited to smartphones: global mobile handset stats from Strategy Analytics show that handset shipments grew a mere 1.1% annually to reach 362 million units in Q2 2012. At this time last year, the annual rate of growth was 11.9%, ten times better than this quarter's performance.

'Ongoing macroeconomic challenges in mature markets like North America and Western Europe, tighter operator upgrade policies, and shifting consumer tastes were among the key reasons why global mobile phone shipments grew just 1% annually to reach 362 million units in Q2 2012,' said Alex Spektor, Associate Director at Strategy Analytics.

Samsung was still the market leader for global handsets, with 25.7% of the market. Nokia's huge feature phone presence put the beleaguered company in second place with 23.1%, with Apple still in third place with 7.2% of the global market.

Looking For Revenue in New Places

With the brakes slammed on global phone growth, phone carriers around the world may no longer be able to rely so much on subscriber growth to drive revenue.

These phone slowdowns may have already driven searches for new revenue streams, such as Verizon's new data plans that squeeze more revenue from smartphone customers.

Facing flat customers growth, additional creative ways to part customers from their money are likely on the way.

Driven by breakthrough thinking and a wide-open sense of what's possible, Alcatel-Lucent delivers the world's most advanced technologies to companies all across the globe. Our driving motivation is to realize the potential of the connected world - by providing the technologies needed to turn networks into engines of sustainable economic growth, social development and opportunity. We provide a comprehensive suite of software solutions and services offerings designed specifically to meet the needs and demands of communication network operators and strategic industries. These solutions allow our customers to optimize network costs and quickly deploy innovative, value added products and services for their subscribers that increase loyalty and create new revenue streams. To learn more about how we're turning the network into a platform, visit http://www2.alcatel-lucent.com/hln/network_evolution.php



Jumat, 27 Juli 2012

Why Microsoft Can Get Away With Overcharging for the Surface Tablet

Image of Why Microsoft Can Get Away With Overcharging for the Surface Tablet

What's the right price for Microsoft's upcoming Surface tablets? Some observers are arguing that the company should charge more rather than less for the innovative Windows 8 devices.

If a price list posted to a Swedish website is correct, then the lowest price for Microsoft's Surface tablet will be just over $800. But at least one analyst says Microsoft shouldn't worry about overcharging, given that a premium pricing strategy leaves room for the company's manufacturing partners to fill in the gaps.

Webhallen.com's pricing page for the Surface - still available to view at post time - lists the Microsoft Surface for Windows RT (32GB) at 6,990 krona, or slightly more than $1,000. The 64GB version is 9,990 krona (about $1,450), with the two Surface Pro models costing about $1,889 and $2,180, respectively.

Excluding the Swedish VAT (value added tax) of about 25% for goods and services places the cheapest Surface tablet at 5,592 krona, or $832, according to the Webhallen site. Webhallen also charges 4,152 krona for a Wi-Fi-only, 32-GB version of the new Apple iPad, or $604. That's nearly identical to the $599 that Apple itself charges.

If those prices are accurate, it means that Microsoft will charge about a third more for the Surface than a comparable iPad, a hefty premium.

Microsoft Avoiding Competition - With Itself

Sarah Rotman Epps, a consumer and mobile analyst for Forrester Research, noted that Microsoft could be worried about competing with its manufacturing partners like Asus or Dell. One way to avoid that problem, she said, would be to price the Surface high enough to avoid direct competition.

'Keeping the price point of the Surface high limits the threat to Microsoft's OEM [original equipment manufacturing] partners,' Rotman Epps said. 'At a $1,000 price point, this won't be a mass market product, but it will still have the desired effect of exciting consumers and inspiring OEMs to do more with hardware design for Windows 8.'

That would set up an intriguing mix of business models: companies that sell their tablets below cost, such as the Amazon Kindle Fire; vendors that take a middle-of-the-road approach, building in a profit margin; and Microsoft, which under Epps' model would position the Surface as a sort of aspirational product designed to show what Windows 8 can do rather than being a money-maker on its own. It's kind of like the sexy Corvette in the Chevy showroom primarily designed to inspire Impala and Malibu buyers.

'Microsoft clearly isn't interested in competing on price,' Rotman Epps added. 'They want to preserve the value of the ecosystem they've created. But premium pricing also limits the market for who can afford your product.'

Premium Is Not A New Approach

Adopting a premium strategy wouldn't be a new approach for Microsoft when selling direct. Take Microsoft Signature, for example.

Users can buy specific, optimized (and more expensive) laptops directly from Microsoft itself, free of the trial programs, printer utilities and other 'crapware' that Microsoft's original equipment manufacturing (OEM) partners install. For $99, users can also take their existing notebooks to a Microsoft Store to receive the 'Signature Experience.' In this case, Microsoft is positioning itself as the, well, signature experience.

Rival Google has also taken this approach, positioning the premium-priced Google-branded Nexus products as the epitome of the Google hardware experience and leaving the discounts to its partners.

One could also argue that both AMD and Intel also offer premium microprocessors optimized for gaming under their own brands - AMD's 'Black' Edition, for example.

Who's Gonna Pay?

ReadWriteWeb has already made the case that Microsoft designed the Surface Pro as a business tablet, even as some corporations have already begun adopting Apple's iPad as a business tool.

Corporate budgetmakers may accept a premium for Windows Surface, if they decide that it provides a better return on investment than the iPad or other competitors. The fact that the Surface Pro runs a native version of Windows 8, and not the ARM-optimized version of Windows RT, may help its cause. The Surface will also be able to run versions of the new Microsoft Office.

Apart from collectors and gadget freaks, though, most consumers might not be so willing to shell out the extra cash, as Rotman Epps noted. But that's important only if Microsoft is really looking for mass sales of the Surface.

If Surface sales are indeed the goal, said Patrick Moorhead, president and principal analyst at Moor Insights and Strategy, pricing will indeed matter.

'I believe Surface Windows RT tablets must be priced starting at $499 or less without the keyboard case,' Moorhead said. 'The keyboard case adds around $100 in value on top of that. For Windows 8 Pro, users are looking more at a tablet with PC functionality and could garner an additional $100 for a total of $599, or $699 with the keyboard case. The wild card in all of this are the number of high quality Metro apps. I believe Microsoft will need at least 5,000 high quality apps at launch, which based upon the apps in the Consumer Preview Store, looks to be a difficult task.' But the best strategy for Microsoft, however, might be to stake out a high-end price point that its OEM partners need not match.

What Would Be 'Competitive'?

At the Surface unveiling, Microsoft announced that the tablets would be 'priced competitively' with current tablet offerings, and that the Pro version would be competitively priced against ultrabooks.

But what does 'competitive' mean? In general, manufacturers who release a product after a competitor have two choices: 'upsell' users, convincing them that the Surface's feature set justifies a premium price, or try to lure customers through pricing discounts.

'In the case of competing with a market dominating product [like the iPad], it means either coming in as a feature rich but value-priced proposition, or demonstrating a higher value proposition at the same or relatively close price point,' Michael Gartenberg, a mobile analyst for Gartner, explained. 'Zune showed coming with a similar set of features to a market dominated by a competitor at the same price point isn't going to get consumers to switch. At this point, iPad is the 'safe' choice for consumers, Microsoft will need to convince consumers that their products are a viable alternative, and more importantly, that their approach to the consumer digital ecosystem is the correct one in a post-PC world.'



Facebook's 84% Problem

Image of Facebook's 84% Problem

Facebook posted it first quarterly earnings statement post-IPO yesterday and one number pops out: 84%. That is the percentage of revenue the company made from advertising, representing $992 million of the total $1.18 billion it brought in during Q2. To maintain stable growth, Facebook must diversify its revenue stream and become less reliant on advertising - a goal that has plagued competitors like Google for years.

Reliance on Ad Sales

Facebook's traditional approach to advertising has been to target banner ads based on user interests. For instance, if a user 'Likes' Star Wars, that user is likely to receive advertisements related in one way or another to science fiction. In theory, targeted ads are more valuable than the broadcast ads that dominated pre-Internet media. This has been the cornerstone of Facebook's revenue and it is what launched the company toward its IPO. 

However, relying so heavily on ads puts all the company's eggs in one basket. A dip in ad revenue due to shifts in the economy or technology could put the company in jeopardy. Consequently, Facebook's goal going forward is two-fold: Increase revenue from advertising while decreasing the percentage from that source.

Zuckerberg outlined three product areas the company will focus on for the rest of the year: Social ads, mobile, and platform. 

The Social Advertising Advantage

Where targeted ads take advantage of an individual users' data, social ads bring their relationships into play. 'The basic idea here is that the best type of advertising is a message from a friend," CEO Mark Zuckerberg said during yesterday's earnings conference call. "Facebook wants to build the best tools to create ads that are social.' 

We have seen instances this year where your friend 'Likes' a product and it shows up in on your Facebook page. Your friend likes Coca Cola? Well, now your Facebook page is an advertisement for Coke. 

Meanwhile, the company has been hard at work on new social advertising formats. In the second quarter, Facebook introduced 'Sponsored Stories" that put posts by advertisers straight into users' Newsfeeds. Sponsored Stories generated $1 million a day in revenue, Zuckerberg said.

(Sandberg added that local advertising is another important aspect of Facebook's advertising program, citing one million businesses already on Facebook. It is a natural extension of the company's platform and one that many startups in Boston and San Francisco have started to tackle outside of Facebook's purview.) 

'We believe that we are very well-positioned to compete for advertising dollars throughout the entire marketing funnel,' Sandberg said, referring to the sequence of phases customers pass through as they progress from becoming aware of a product to purchasing it.

Mobile Baby Steps

In the first half of 2012, Facebook took baby steps to set itself up for mobile success, in advertising and other ways as well. It bought Instagram for $1 billion (an acquisition that has not yet been formally approved). It is working to increase the quality of its iOS and Android apps and build its presence on the mobile Web. It also released its own mobile Camera app and released new updates to its Messenger.

The Sponsored Stories social ad program will be the cornerstone of Facebook's efforts to generate mobile revenue, COO Sheryl Sandberg said. Indeed, about half of Q2's $1-million-a-day revenue from Sponsored Stories came through mobile devices - a good start. Yet Facebook has bigger things in mind. The first goal is to build robust applications that people actually use.

Camera and Messenger are perfect vehicles in this regard. They are built on content and communications, where ads based on Facebook's social graph and interest graphs can run without compromising the user experience. By creating satellite applications that perform key functions on the Facebook platform, the company can increase the volume of mobile ads without causing a ruckus by interrupting the user experience in the primary Facebook app. 

"We don't want to just have the most widely used app, though,' Zuckerberg said. "We also want to have the best app and build experiences into every device and every app that people use. We are investing very heavily in building our mobile app, especially through iOS, Android and the mobile Web. We have made some good progress in our last quarter as we released our Camera app, shipped new releases of Messenger, shipped two releases of our Android app, agreed to acquire Instagram, and worked with Apple to be integrated into its upcoming release of iOS. Going forward, you should expect to see a frequency of improvements to each of these mobile experiences.'

The Platform Strategy Lives

Facebook is actively translating its longstanding platform strategy into the mobile space. Facebook wants to be not only the most-used app; it wants to permeate every other app, Zuckerberg said. That follows the Web strategy Facebook launched in 2007, when it released its first platform API. The idea is for Facebook to be the default login for every app. By giving tools to developers to make their apps social, Facebook can draw in more information about users of those apps and advertise more effectively based on that information. 

Beyond Advertising: Payments

So where are the additional revenue opportunities? The bulk of Facebook's non-advertising revenue comes from its Credits payment program. Facebook made $192 million in Q2 from Credits and other fees. The problem in growing this revenue source that Facebook's primary engine for payments, games, does not translate well to mobile. Social gaming company Zynga announced poor quarterly earnings on Wednesday, and since the two companies have a symbiotic relationship, Facebook's stock took a hit. Now both companies have to figure out how to take the Credits program mobile. 

But Credits is not just about games. Other types of content will be important to Facebook on mobile as well. Zuckerberg cited music as the next area that is likely to become social. The prime example is Spotify's tight integration with Facebook. 

One way or another, Facebook must integrate Credits tightly into its platform. This is where the competition has a leg up. An iOS app in Apple's App Store may let users log in using their Facebook account, but Apple will never allow payments that it doesn't control to be made through an iPhone or iPad app. The same goes for Android, more or less. Facebook's ubiquity as an authorization system in apps is its biggest mobile strength, but it is also its biggest weakness. It makes Facebook part of the other mobile operating systems. But when it comes to users' money, Facebook is on the outside, forcing it to work with third parties such as advertisers to get revenue from those users.

Zuckerberg said he wants Facebook to be as tightly integrated into devices and apps as possible, but he also said he had no intention to make a Facebook phone. That is good news for investors, because getting into the hardware game would drastically cut into Facebook's margins.

Facebook' new App Center is the best avenue for making money outside of iOS and Android. The App Center offers both apps that run on Facebook and apps that integrate Facebook but run on iOS or Android. This poses another interesting problem. Facebook would love to raise the percentage of revenue from sources other than advertising, but it also would love to increase the number of apps running on Facebook rather than iOS or Android. The more apps that live within Facebook, the more the company can take advantage of Credits, which could be a significant revenue driver. That will remain problematic without a Facebook operating system.

Thus, Facebook faces a Catch-22. To be everywhere, Facebook has to play nice with other companies, including rivals like Google. But by playing nice, it is shut out of revenue opportunities such as payments. So it is forced to focus on selling ads, and the percentage of revenue that comes from that source not likely to go down. Being the social backbone to the Web has advantages, but it also pigeonholes Facebook into a certain type of monetization scheme. 



10 Ways Startups Can Track Trends: And Why It's So Important

Staying on top of trends is key to any startup's success. Spotting trends early makes it possible tocome up with smart startup ideas - or modify your startup plans to jump on a new trend just as it takes off. Just as most important, you can avoid the risk of starting a business based on a trend that's just about to fizzle out. Fortunately, tracking trends isn't as hard as it used to be.

Here are my tips and sources to help you stay on top of the latest business and consumer trends:

Read industry news. Set up a system that works for you to regularly read the websites, blogs and Twitter feeds that matter in your industry. Stay active in industry conferences, events and associations: they can help you keep up on what's new and what matters.

Get out of the office. Your ecommerce business may be online, but trends happen in the real world. Make it a point to get out and mingle where your customers are - offline. If you sell teen apparel, hang out at the local mall or movie theater. If you sell surf gear, hit the waves.

Listen in. Keep your ear to what your friends, family and connections are talking about. Are all the moms buzzing about some new deal-of-the-day website? Is your uncle nuts about a new online investing app? Listen, ask questions and you're likely to spot trends in unexpected places.

Think global. The Internet has made it even easier for trends that catch on in one country to spread to others. Look to big cities, where trends are often born, and keep up to date with news and trends in New York, Los Angeles, London and Tokyo.

Watch for countertrends. For every consumer craving one thing (simple, streamlined investing apps) there's another craving the opposite (personalized, one-on-one investing advice). Can you create a business based on a countertrend? If there are lots of competitors in your niche, how can your business deliver something totally opposite?

Watch demographic changes. Modifying products or services for different generations is a great way to capitalize on trends. A website catering to baby boomers will need to be very different than one for Millennial consumers. Keep up on demographic trends and be aware how your target customers' needs may vary (or shift) based on their ages and life stages.

Need more? Here are three websites to help you keep up with trends.

Cassandra: Formerly TrendCentral, this site gathers trends in lifestyle, entertainment, technology, food and more, spotlighting breaking trends from all over the world while they're still burgeoning. Sign up for the daily enewsletter to get more ideas than you can handle.

Trendwatching.com: This globally oriented site takes a big-picture view; it's particularly strong on analysis. Its monthly trend newsletter is comprehensive in scope, garnered from trendspotters in hundreds of countries worldwide.

Springwise.com: If Trendwatching.com is big-picture, its sister site Springwise.com is snapshot-oriented. Sign up for the e-newsletter to get quick snippets of business ideas from around the world that will give you lots of fodder for fine-tuning your own startup.

And pardon the self-promotion, but you can sign up for TrendCast, my weekly free trends e-newsletter.

Lead image from TrendWatching.com.



Rabu, 25 Juli 2012

Apple's OS X Mountain Lion Explained: Everything You Need to Know

Five months after Apple first previewed the latest version of its desktop operating system, Mountain Lion is here. Mac OS X 10.8 will be available from the Mac App Store today, Apple CFO Peter Oppenheimer announced during yesterday's quarterly earnings call.

What's New? Over 200 Features, That's What

We've been hearing about big new features like deeper iCloud integration, Notification Center, AirPlay, social sharing and voice dictation since Apple first teased us with a glimpse at Mountain Lion in February. Mac users are also getting Game Center, a new security suite called Gatekeeper and Power Nap, which manages software updates and incoming messages in the background while your computer sleeps. Not only that, but - hold onto your hats! - there are even a few new screen saver animations. 

Apple has the complete list of more than 200 features with which Mountain Lion will equipped. 

Beyond the Features: What Mountain Lion Means

More than just an iterative upgrade to an OS, Mountain Lion represents a larger shift for Apple. With this version, the company pushes OS X closer to the look and feel of iOS, the mobile operating system that runs on the devices that now make up the majority of Apple's revenue. 

This slow convergence between the mobile and desktop experiences, which Microsoft is also working toward, is a natural progression for computing as smartphones and tablets proliferate and more of our digital lives happen in the cloud. For Apple, devices running iOS have been the real cash cow, propelling the company into the position of being the world's most valuable technology firm. It only makes sense that their other product lines would be slowly molded to match the user experience of iOS. 

The glue holding this cross-device experience together is iCloud, the wireless syncing and cloud storage service first rolled out last year in iOS 5. Mountain Lion extends iCloud's functionality to documents and brings support to more applications. It's used to keep content update in new desktop apps like Reminders and sync Safari browser tabs across devices. 

Most of the major new features in Mountain Lion will look very familiar to iOS users. Notification Center, Notes, Messages, Reminders, Siri-powered dictation and in-app social sharing are all things lifted directly from Apple's mobile OS. 

Apple's screen-by-screen takeover goes beyond mobile devices and desktops. By bringing AirPlay to Mac OS X, Apple further bridges the gap between its devices and our televisions. All signs point to more ambitious plans for the living room, but for now Apple is slowly getting its customers used to the idea of using their increasingly unified OS on bigger screens.

Is Your Mac Ready For Mountain Lion? 

Not every Apple-made computer under the sun will get to experience the 200 some-odd new features in Mountain Lion. The new OS can only be installed on computers running Lion or the latest version of Snow Leopard, and they must be one of the following machines: 

  • iMac (Mid 2007 or newer)
  • MacBook (Late 2008 Aluminum, or Early 2009 or newer)
  • MacBook Pro (Mid/Late 2007 or newer)
  • MacBook Air (Late 2008 or newer)
  • Mac mini (Early 2009 or newer)
  • Mac Pro (Early 2008 or newer)
  • Xserve (Early 2009)

Still not sure? Check out our own Brian Proffitt's write-up on how to tell if your machine is Mountain Lion-ready.  Apple has an official rundown of feature-specific requirements and more detailed tech specs. 

How to Get It

Unlike previous versions of OS X, Mountain Lion will not be sold on physical media like a DVD or thumb drive. Instead, the new upgrade is available exclusively through the Mac App Store. 



[Video] How to Stream the 2012 London Olympics, With or Without Cable

Image of [Video] How to Stream the 2012 London Olympics, With or Without Cable


How Microsoft Plans to Use the Business Market to End Apple's Tablet Dominance

Image of How Microsoft Plans to Use the Business Market to End Apple's Tablet Dominance

In 2010, Apple blindsided Microsoft - and most everyone else - with the phenomenal success of the iPad. That success is now eating away at Windows PC sales. While Apple's innovation took Microsoft down for the count, the software giant has regrouped and is trying to come back by shifting the battlefield from consumers to businesses.

To turn the tide, Microsoft is counting on business users, a market where Apple remains relatively weak and CEO Steve Ballmer's crew retains several critical advantages. Microsoft's counterpunches will include Windows 8 and Office 13, a combination Apple can't match in the business world.

'This is Microsoft's edge and either through policy or actual purchases businesses have the capability of being kingmakers here and could cause Apple to be eclipsed again,' said Rob Enderle, principal analyst for the Enderle Group.

Since the iPad's introduction, businesses have been dabbling with the tablets, mostly because employees were bringing the devices to work and putting pressure on companies to support them. Without a strong alternative, many businesses went along - at least supporting employee devices and creating pilot iPad-adoption programs. While the iPad has found a home in specialized niches such as real estate and hospitality, sales and engineering, it's unclear how much mainstream corporate IT departments really want to support the iPad. When Microsoft releases the various versions of Windows 8 and its new Surface tablet, a lot could change.

Microsoft Office Makes a Difference

That's because Office 13, set to ship early next year, finally brings the productivity suite still used by more than 90% of businesses to the mobile world. The new software supports touch and stylus interfaces, as well as the traditional keyboard and mouse. When running on top of Windows 8, Office becomes even more powerful through its integration with email servers, document management systems and databases. Despite their popularity and many advanced features for individual users, Apple's Mac OS X and iOS still don't play as nice in business computing environments.

People who doubt the market strength of Office need only look at Microsoft's second quarter results. The company reported July 19 unearned revenue of $20.1 billion, as businesses placed multi-year orders for Office and databases. (In accounting, unearned revenue is what companies collect for products they promise to deliver in the future.)

Businesses are likely to give Microsoft the foothold it needs to challenge Apple in the tablet market. Sales of Windows tablets will grow from roughly 5 million this year to 44 million in 2016, or about 12% of the market, according to Gartner. Apple's share is projected to fall from 61% this year to 46% in four years, while Android tablets rise from 32% to 38%. That leaves Microsoft still in third place by a wide margin, but perhaps with enough momentum to block Apple from the lucrative business market - a market that Apple also missed out on during the PC boom in the 1990s.

To go further in the tablet market, though, Microsoft will eventually have to win over consumers. 'If someone wants to create or modify Microsoft Office files on their tablet or use other Windows applications, Microsoft has a definite advantage,' said Ezra Gottheil, analyst for Technology Business Research. 'Otherwise, the iPad will be perceived to be the superior consumer tablet.'

Microsoft may also have an opportunity to leverage developer interest in creating apps for enterprise users. Research in Motion once owned that market, but Apple currently leads it while second-place Android appears to be fading. Full compatibility with Windows computer applications is something that many corporate IT managers want in a tablet. (For more on enterprise app developer preferences, see Dan Rowinski's [Survey] Developer Interest in Enterprise Apps Likely to Benefit Microsoft.

Turnabout Is Fair Play

While Microsoft gains share through business, Apple will continue attacking the tablet market through entertainment, where Apple has a very strong position dating back to the introduction of the iPod music player in 2001. While it's possible to create documents and do other business-related chores with the iPad, the tablet is about fun and games for most people. A study by research firm Consumer Intelligence Research Partners found that for 40% of 1,000 iPad buyers surveyed, surfing the Web was the number one activity. For a third of the buyers, watching video, listening to music and looking at photos was the top activity, and for 27%, it was playing games.

Just as Apple used entertainment to make its way into the office, Microsoft will use the business market to open a road into the home. Once familiar with Metro, Windows 8's new touch interface for mobile devices, people will be able to comfortably take such devices from the office to the living room, to cafes and where ever else they do their computing on the go.

The Ultrabook Issue

Microsoft no doubt hopes to use its tablet strategy to jumpstart ultrabook sales against Apple's MacBook Air, a market leader in light notebooks. (Ultrabooks are defined as being less than one-inch thick, able to turn on instantly, always connected to the Internet and have eight hours of battery life.) First to market, the Air has outpaced the industry as a whole in sales. That dominance will be challenged in October when PC makers release their first serious ultrabook competitors with the release of Windows 8.

Intel, which makes the processors that power ultrabooks, has spent a fortune on marketing and technology to try to convince consumers ultrabooks are the next great innovation in the PC industry. The company believes the thin-and-light devices can account for 40% of consumer notebook sales by the end of 2012. 'We said all along, 2011 was about getting into the game, and 2012 is about taking it to the masses,' Intel spokesman Jon Carvill told CNNMoney.

The big question is whether ultrabooks will be smaller laptops or more powerful tablets. Computer makers, such as Lenovo, Asus and Samsung plan to release tablet-ultrabook convertibles. Apple has said its tablets and notebooks will remain separate devices. PC makers see that as an opening.

The upshot for consumers will be a smorgasbord of devices, many of which may leave people wondering whether the product is a tablet, an ultrabook or something else entirely. 'The big picture is that over time, consumers are buying more and more computing devices, but those devices take different shapes, and only some of them are PC-shaped,' said Sarah Rotman Epps, analyst for Forrester Research.

The worry for Microsoft, of course, is that consumers will see tablets not as smaller ultrabooks, but as bigger smartphones. While Microsoft is also working hard on Windows Phone 8, it really hasn't made a dent in the smartphone market. Microsoft partner Nokia reported last week that sales of its Lumia smartphone, today's flagship device running Microsoft's Windows Phone software, doubled from the first to the second quarter to 4 million units - far behind sales of the iPhone and Android models.

Wither Android?

Of course, Microsoft will be battling more than just Apple in the tablet and smartphone markets. With the completion of its acquisition of Motorola Mobility, Google is ready to make a serious entry into manufacturing hardware - not just supplying reference designs. But because the Motorola deal just closed in May, it's still difficult to predict what impact Google will have on the mobile hardware market. In releasing financial results last week, Google's Chief Financial Officer Patrick Pichette said the company is evaluating all of Motorola's business segments.

So while Microsoft may be coming back technologically, and the company has some structural advantages in the business market, there's no guarantee Ballmer and company can convince consumers to take Windows 8 with them when they leave work.

A lot depends on people loving Metro as much as they do Apple's iOS. That's a tall order, given Microsoft's failure to woo mobile consumers in the past. But the company has to be aware that failing this time could keep Microsoft a prisoner in the business world for a long time to come. 'IT (departments) can't override their users as successfully like they previously did with PCs,' Enderle noted. 'But if Microsoft has a hit, IT could turn that hit into market dominance.'

Driven by breakthrough thinking and a wide-open sense of what's possible, Alcatel-Lucent delivers the world's most advanced technologies to companies all across the globe. Our driving motivation is to realize the potential of the connected world - by providing the technologies needed to turn networks into engines of sustainable economic growth, social development and opportunity. We provide a comprehensive suite of software solutions and services offerings designed specifically to meet the needs and demands of communication network operators and strategic industries. These solutions allow our customers to optimize network costs and quickly deploy innovative, value added products and services for their subscribers that increase loyalty and create new revenue streams. To learn more about how we're turning the network into a platform, visit http://www2.alcatel-lucent.com/hln/network_evolution.php



Selasa, 24 Juli 2012

DoJ Whacks 'Self-Serving' Apple in Response to E-Book Settlement Comments

Despite criticism of its actions from high-profile political figures, the Department of Justice is standing firm on its settlement with three publishers in the DoJ's lawsuit against Apple and five publishers accusing them of conspiring against common enemy Amazon.

Under the terms of the settlement, the settling publishers are required to end their agency agreements with Apple seven days after the settlement's final approval. The publishers can then sign new contracts but are forbidden for two years from using clauses that limit retailers' rights to discount.

Apple and publishers Macmillan and Penguin have not agreed to the settlement and are continuing to fight the suit in court. But Hachette Book Group, HarperCollins, and Simon & Schuster settled with the US in April.

Under the Tunney Act, the DoJ solicited public comments for the settlement, and it got them: '868 comments from individuals, publishers, booksellers, and even from Apple, a key conspirator in the underlying price-fixing scheme.'

That was the characterization of the public comments highlighted in the DoJ's response to these comments released Monday. In that response, the DoJ took on many of the comments criticizing its efforts to prevent the alleged antitrust actions of Apple and the five publishers - and blasted Apple's comments in particular as 'self-serving and contrary to the public interest.'

Of the comments, only 70 favored the DoJ's terms of settlement, while the rest argued against the terms, insisting (with variations on the theme) that the DoJ was enforcing one particular business model over another and was out-of-bounds to force settling publishers to end their 'agency pricing' agreements with Apple.

What's Up With 'Agency Pricing'?

Agency pricing lets a publisher set the prices of an e-book, with the retailer getting a cut of the price as a commission. This differs from the wholesale model, where a book's price is suggested, and retailers can discount books to their heart's content. The wholesale model is what Amazon used.

According to the DoJ's suit, the publishers entered into agency agreements with Apple - countering Amazon's existing way of doing things. In response, Amazon blocked Macmillan's books from being sold on its site, in a move that echoed the Cable TV wars seen in today's headlines. Amazon eventually backed down, and the agency model became the norm across all e-commerce retailers. The other major publisher in the US, Random House, switched to agency pricing in 2011.

Many of the public comments about the settlement derided the DOJ as attacking the agency model, but that's not actually the basis of the DoJ's action. It has no problems with agency pricing, just the way that Apple and the five publishers named in the suit did it: they allegedly colluded to raise the prices on e-books with the express purpose of breaking Amazon's deep discounting.

The DoJ takes great pains to insist repeatedly that agency pricing is not the problem - nor is discounting.

Conspiracy Theory

'Nothing in the proposed Final Judgment would force Apple or B&N to exercise discounting authority ' they are free to carry out their own businesses exactly as before. What they may not do is continue to rely on a conspiracy to restrain their competitors,' the response read.

The response also slaps away any arguments by Apple that the settlement will reduce competition in the market.

'In fact, what the evidence does show, is to the contrary' Microsoft has made a significant investment in the industry. The investment is likely a boon to Apple's largest brick-and-mortar retail competitor, [Barnes & Noble]. Google, too, rather than retiring from the e-book field, recently has announced a new investment in a tablet computer intended to promote its own ebook sales, through Google Play.'

Powerful Enemies

The comments for the settlement had drawn in some heavy caliber political opponents, such as Sen. Charles Schumer (D-NY), who made an impassioned plea on Apple's behalf in the July 17 edition of the Wall Street Journal.

'While the claim sounds plausible on its face, the suit could wipe out the publishing industry as we know it, making it much harder for young authors to get published,' Schumer wrote. 'The suit will restore Amazon to the dominant position atop the e-books market it occupied for years before competition arrived in the form of Apple. If that happens, consumers will be forced to accept whatever prices Amazon sets.' (For more, see Why Senator Schuman Wants the Apple E-Book Pricing Lawsuit to Disappear.)

The DoJ isn't buying what Apple and its allies are selling, and it's doubtful consumers will, either. 'When Apple launched its iBookstore in April of 2010, virtually overnight the retail prices of many bestselling and newly released e-books published in this country jumped 30 to 50 percent ' affecting millions of consumers,' the DoJ response stated. This was not due to agency pricing, the DoJ maintains, but to illegal conspiracies.

The DoJ reiterates that it is not out to kill agency pricing. And that's good for book buyers. Agency pricing on its own is likely to keep prices more uniform than wholesale pricing, despite what Apple and its allies are claiming.

 

Lead image courtesy of Shutterstock.



Girls Who Code: Crashing the 'Brogram'

The high-tech industry is largely a guy's world made up of "brogrammers" and job ads that ask, 'Want to bro down and crush code?' Small wonder that women made up just 21% of all programmers in 2010, off from 24% in 2000. Or that less than 10% of venture-backed companies have women founders. An organization called Girls Who Code is trying to reboot the system starting from the beginning.

The high-tech industry is largely a guy's world made up of brogrammers and job ads that ask, 'Want to bro down and crush code?' Small wonder that women made up just 21% of all programmers in 2010, off from 24% in 2000. Or that less than 10% of venture-backed companies have women founders. An organization called Girls Who Code is trying to reboot the system starting from the beginning.

Girls Who Code is working to close the tech gender gap by teaching girls 13 to 17 the skills they need for a career in technology. Its first program is this summer, eight weeks of 8-hour sessions in New York City where 20 girls are learning everything from coding to pitching a business plan to investors.

Program founder Reshma Saujani, an unsuccessful 2010 candidate for Congress and former deputy public advocate for New York City, says she started Girls Who Code not only to educate girls but to inspire them to believe that they can indeed pursue a career in technology.

It's Still A Man's World

Getting started is one thing. Inspiring them to stick with it could be more difficult. Consider Silicon Valley, circa 2012. Marissa Mayer notwithstanding, it's a sort of parallel universe, fueled by testosterone and 5-Hour Energy drinks, where young male programmers freshly empowered by the te ch boom revel unselfconsciously in a high-fiving culture of chips and beer.

It's a place where breasty booth babes are still a must at gadget shows. Where recruiters invite guys to parties with hot tubs full of naked women. Where accelerator grads include slides of bikini-clad chicks in their pitch-day presentations - because they can. And where a company called Sqoot holds an API hackathon with a list of 'great perks' that includes massages, a live DJ and 'Women: Need another beer? Let one of our friendly (female) event staff get that for you.'

Serious Support For Girls

Girls Who Code has funding from a range of corporate sponsors, including GE, Google, eBay and Twitter (it's Twitter's first philanthropic investment). Every contributor not only writes a check but also hosts a field trip, donates equipment or sends a speaker. Among those on tap this session are Jack Dorsey of Square, GE chief marketing officer Beth Comstock and Gilt Groupe founder Alexis Maybank.

'These companies don't just want to close the technology gap because it's the right thing to do for the country but because it's the right thing to do for their business,' Saujani says. 'They understand they can't out-innovate unless they have the people who are using their products actually making their products.'

She points out that while women use the Internet 17% more than men do and create two-thirds of the content at social media sites, they earn only 14% of computer science degrees.

'At age 13 or 14 there is something that happens that makes girls think coding or engineering is not for them. Part of our mission is pushing girls to go into these technical fields and overcome their aversion to risk.'

And to jobs that invite them to 'bro down and crush code.' It's a noble mission but it won't be easy.

 

Images courtesy of Girls Who Code.



[Survey] Developer Interest in Enterprise Apps Likely to Benefit Microsoft

What drives app developers? Is it creating great new experiences for consumers on their smartphones and tablets? Scratching an itch of an idea they've always hoped would be more than a napkin sketch? Well, sure, but the most powerful motivation is simply to make a buck, and that is why many developers are are building apps for the enterprise rather than the consumer market. That could spell good news for Microsoft as it tries to gain a mobile foothold the face of Apple and Android dominance. 

The consumer market for apps is a hit or miss game, at best. For every Angry Birds hit, there are thousands of apps struggling to break even. So more and more app developers are building enterprise apps, where the path to profit is much more clearly defined, according to the latest developer survey from Appcelerator and IDC. The survey included 3,500 developers from around the globe. 

The enterprise mobile market once belonged to one company almost exclusively: Research In Motion. The BlackBerry reigned as the beginning and end of enterprise mobility for much of the 2000's, based on the strength of its security and communications features. Yet enterprise mobility has outgrown out of those basic functions as smartphones and tablets can perform many more actions than sending and receiving email. As RIM failed to deliver on the promise of the new mobile landscape, enterprises turned to Apple's iPhone and iPad as the logical successor. Developers followed.

According to the survey, 53.3% of developers are interested in developing iOS application for the enterprise. That trumps the 37.3% of developers interested in Android for enterprise and marks a shift from previous surveys in which the platforms were neck-and-neck with nearly 44% interest. Apple also holds the majority of interest for consumer apps. 

The lower level of interest in Android for enterprise represents an opening for Microsoft. During the rise of the iPad, enterprise IT managers said repeatedly that they wanted a tablet that was completely compatible with Windows systems. Microsoft is set to deliver that with Windows 8, Windows Phone 8 and Windows RT (the ARM-based version of Windows 8). Developers have been gearing up for the release of Windows 8 throughout 2012, and about a third of respondants to the Appcelerator/IDC survey said they were 'very interested' in Windows 8 tablets. 

When it comes to smartphones, Microsoft is going to have to prove that Windows Phone can be successful. Only 27% of developers were very interested in Windows Phone 7, a drop from 37% the previous quarter. The reason is simple: Windows Phones are not selling well. Over the same time period, developer interest in Android increased because of its ubiquity in the consumer market and diversity of price points. Android may not fair well in the enterprise market because of concerns about security and other factors, but developers are drawn by numbers and the installed base of Android phones remains a lucrative market. 

Sales are the determining factor in the battle of mobile operating systems. The well-reviewed Nokia Lumia and the promise of a new device to enter the United States in April (the Nokia Lumia 900 from AT&T) stimulated keen developer interest for Windows Phone 7 in the first quarter of 2012. But, as Lumia sales continue to disappoint, developer interest weakens. With all the hype builds around Windows 8's upcoming release, it is only natural that developers will become more interested in that platform. 

Apps define the mobile market, so tracking the interests of people who make those apps provides a good indicator of how each operating system will grow and evolve in coming months. Respondents of the Appcelerator/IDC survey expressed little to no interest in developing for BlackBerry, so it's a good bet that Windows 8 will likely entrench itself as the third-place mobile operating system. iOS and Android will continue to duke it out at the top of the market, battling for individual verticals between enterprise and consumer interests. 

The recent survey drew on the largest base of respondents to Appcelerator/IDC's quarterly surveys to date. Nonetheless, it's worth bearing in mind that the results may be skewed by the developer base of Appcelerator and its Titanium developer platform, as well as the specific questions asked. 

Driven by breakthrough thinking and a wide-open sense of what's possible, Alcatel-Lucent delivers the world's most advanced technologies to companies all across the globe. Our driving motivation is to realize the potential of the connected world - by providing the technologies needed to turn networks into engines of sustainable economic growth, social development and opportunity. We provide a comprehensive suite of software solutions and services offerings designed specifically to meet the needs and demands of communication network operators and strategic industries. These solutions allow our customers to optimize network costs and quickly deploy innovative, value added products and services for their subscribers that increase loyalty and create new revenue streams. To learn more about how we're turning the network into a platform, visit http://www2.alcatel-lucent.com/hln/network_evolution.php