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December 10, 2009 11:15 PM PST

Microsoft needs to go big with Windows Mobile

by Dave Rosenberg
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It's no secret that Windows Mobile has hit a rough patch as the iPhone and Android-based smartphones have take center stage. Recent statistics from AdMob shows that Windows Mobile market share of Web surfing was way down during the past 12 months--more than 70 percent year over year.

Any number of people postulate that Windows Mobile will be dead, some say as soon as 2011, unless Microsoft figures out a way to not only make the operating system better but to convince users that they should care.

On the New York Times Bits blog, Steve Lohr wrote earlier Thursday on analyst Mark Anderson's comments suggesting that Microsoft abandon their consumer efforts entirely--that the company has lost the battle for consumers:

Except for gaming, it is 'game over' for Microsoft in the consumer market. It's time to declare Microsoft a loser in phones. Just get out of Dodge.

I'm not a huge fan of Windows Mobile, but Microsoft certainly can't give up on smartphones and really has no alternative but to make a big move in the mobile operating system space. And Windows Mobile is not nearly as bad as many people think--if you don't believe me, check out these results from mobile blog jkOntheRun.

I recently toyed with Windows Mobile phones at both Verizon and AT&T stores and I could absolutely see the appeal of the common desktop functional paradigm if I were a Windows user. But consumers are fickle and don't want to add an OS decision into their buying process. They just want the phone and its applications to work and be easy to use.

There remains a huge opportunity for Microsoft to take its dominant position and make Windows Mobile truly great, even if it means walking away from the status quo. And while that's not typically the Microsoft way, the company has shown with Bing that it can make those kinds of decisions (as well as less-positive choices.)

There are two very simple moves Microsoft could make that would not only shake up the whole market, but also build a path for the future:

... Read more

December 10, 2009 12:01 AM PST

IBM opens new cloud lab while Microsoft reorgs

by Dave Rosenberg
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(Credit: IBM)

IBM is continuing its investment in cloud computing with a new lab in Hong Kong, expanding the presence of its IBM China Development Laboratory (CDL), the company's largest with more than 5,000 developers on staff.

The laboratory builds on the e-mail technology of Outblaze Limited, a Hong Kong-based company whose messaging assets were acquired by IBM earlier this year and incorporated into the Lotus brand. The new lab claims to be the first of its kind in Hong Kong and shows both the importance of global development teams and IBM's focus on growth in emerging markets, a user segment that is theoretically more adaptable to different methods of application consumption and likely well-acquainted with browser-based applications.

Overall, the fourth quarter of 2009 has seen several interesting cloud-related announcements from IBM, including the LotusLive service that launched in October and already claims more than 18 million active users. Big Blue also launched the Cloud Academy program designed to help educators and students pursue cloud-computing initiatives and better take advantage of collaboration technology in their studies.

IBM has taken a leading role in the development and adoption of cloud services while other large vendors such as SAP, HP, Oracle, Sun and Microsoft have all made cloud-oriented announcements with few proof points that their efforts will be successful. There is no certainty that IBM will be successful either, but the company has at least made consistent progress in both technology and user adoption.

IBM representatives told me that the company will continue to focus on delivering "the most reliable and secure cloud services" architected to meet the needs of consumers as well as their mainstay enterprise buying audience. Totally logical, and still surprising that the other big vendors haven't figured out how to attract their core user base to cloud platforms and services.

The cloud remains a bit of an anomaly in the tech world, dominated by Amazon, an e-commerce site, while stalwart IT vendors like Microsoft continue to take baby steps toward mainstreaming their efforts.

My blogging colleague, James Urquhart, wrote this week about Microsoft's new business unit that merges its cloud and on-premise server group into one development team, which makes sense, at least in theory.

Practically speaking, Microsoft is way behind the curve and has a lot of ground to make. I've written in the past that the opportunity is theirs to lose, and it's hard to see how they plan to win, even with this new structure.

December 8, 2009 3:43 PM PST

Cloud-scaling on Amazon with Memcached

by Dave Rosenberg
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One of the headlines that caught my eye today is this blog post from the Amazon Web Services team about a new Memcached as a service offering from Gear6.

Memcached (Credit: Memcached)
For years, Memcached has been used quietly to provide in-memory caching for many popular Web sites, from LiveJournal (for which it was first developed six years ago) to Twitter, Flickr, and Facebook. In the last couple of months, Facebook has opened up about how it scales, and one the key technologies enabling this is Memcached, which services 120 million queries every second. To achieve this, Facebook admits it has had to do some engineering work to improve Memcached's performance and memory efficiency.

Similarly, Gear6 has added features such as replication, clustering, optimized memory utilization and management to create what it calls a Memcached distribution, much in the same manner as Linux distributions are packaged. Joaquin Ruiz, executive vice president of products at Gear6, provided me with additional insight into why Memcached is popular with Web 2.0 sites and why it matters for cloud computing.

The problem, according to Ruiz, is dynamic data services. In a recent blog post, he pointed to the tight connection between dynamic content and Web 2.0; that is, one defines the other. In this Web 2.0 world, the LAMP (and to some extent Java and Ruby) stack "provided a low-cost, efficient development foundation for Web 2.0 but did not free us from the monolithic, vertically oriented, "scale-up" platforms. Memcached provided the heavy lifting in terms of horizontally scaling ("scale-out") on non-monolithic SMP server architectures from Intel and AMD."

In the Facebook example, the Memcached tier stores members' personalized dynamic content, such as status updates, wall posts, etc., so that they can be quickly accessed when queried. It's a similar set up for Twitter tweets or comments on photos on Flickr. While latency in a social application is mildly annoying, latency in a transactional application could mean lost revenue.

Dynamic data services will likely remain an important part of cloud services, which brings us back to the idea of a Memcached service on a cloud platform. Amazon's Jeff Barr noted, "powerful, high-level services like this allow application developers to spend more time focusing on the novel and value-added aspects of their application and less time on the underlying infrastructure."

Anything that developers and companies can take advantage of to serve data faster and more efficiently means they have time to do other things, including increasing their bottom line.

December 5, 2009 8:44 PM PST

Brazil looks to ban video games while U.S. makes ratings work

by Dave Rosenberg
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Late last week it was reported that following Venezuela's lead in attempting to reduce "violent tendencies" in South American children, Brazilian Sen. Valdir Raupp has authored a bill that would make it a crime to make, import, or distribute "offensive" video games.

The goal of the bill is to "curb the manufacture, distribution, importation, distribution, trading, and custody, [and] storage of, the video games that affect the customs, traditions of the people, their worship, creeds, religions and symbols."

Where this ban, like many others, falls short is in assigning blame for societal ills to video games instead of dealing with larger social issues, including a lack of parental oversight. There are, no doubt, influences in Brazil that are different from the U.S., but video game ratings have proven to be an excellent example of an industry-wide standard that could easily be adopted internationally.

In a recent report, the Federal Trade Commission (FTC) praised the video game industry for continuing "to have the strongest self-regulatory code" of all the entertainment sectors.

... Read more
December 2, 2009 3:50 AM PST

Five free tech PR tools you need to know about

by Dave Rosenberg
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Getting great publicity in the tech industry isn't as simple as following the right breadcrumbs. Based on feedback from some tech PR folks who I deal with at companies of varying sizes--publicly traded, VC-funded start-ups, and bootstrapped DIYers--here are five free tech industry PR resources that I would recommend. (If any tech PR folks out there have additional free resources they'd recommend, please comment.)

IT Memos
It can be incredibly painful to keep track of the thousands of tech events and speaking submission due dates each year. (Some--like RSA, Interop, CES, etc.--have lead times up to seven months in advance).

Keeping tabs on all the tech awards (like Webware 100, the Webbies, the Crunchies, etc.) and submission deadlines is no picnic either. And it's also dreadful to manually track "editorial calendars" (where tech publications often tip their hands on upcoming stories they are writing).

ITMemos is a free new e-mail alert from the team at IT Database that simply nudges subscribers about important upcoming opportunities in these areas. If you're not subscribed to this free alert, hundreds of tech PR people are finding out about/acting on these opportunities before you are, so GL.

(Disclosure: I am an advisor to IT Database.)

Help a Reporter Out
Many tech PR folks are familiar with the journalist/source-matching service called Profnet that used to charge an annual subscription fee leading a guy named Peter Shankman to do the end-around and start giving away the same service for free, while increasing the number of opportunities.

Sign up for the HARO newsletter and receive three daily digest e-mails that list out opportunities where reporters are searching for sources/comments for stories they are writing.

While "Tech" is just one section in the e-mail, and often you will open it without finding a relevant opportunity--it's totally worth it to subscribe for the times where you do come across a journalists' story that matches your company's tech category.

... Read more
November 27, 2009 9:29 AM PST

Trend watch 2010: Mobile movies

by Dave Rosenberg
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As we move toward 2010, there is little question that mobile devices and smartphones will continue to have a huge impact on the market. Research firm Nielsen predicts that smartphones will dominate market share by the end of 2011, with the iPhone and Android-based phones taking the lead spots by a wide margin over traditional cell phones.

As devices mature, Wi-Fi connections become more ubiquitous, and 3G networks become more reliable, consumers will start looking for new ways to use their smartphones as replacements for other larger devices, such as PCs and TVs. One area that has been called out for growth is mobile video and TV, as well as streaming movies directly to a mobile device.

mSpot CEO and co-founder Daren Tsui made the case to me recently that full-length streaming movies will be important to consumers in 2010 because people want entertainment on the go and on demand. Research suggests that the adoption curve will be lead by young males 18- to 24-years-old and parents with young children looking to keep kids distracted.

Not surprisingly, mobile carriers are very supportive of mobile movies. According to Tsui, mSpot has been powering mobile movies on the Sprint wireless network for three years and is currently working with other carriers to bring the service to their user base. Realistically, carriers will always be happy about services they can offer and charge for, but the real question is if they could handle an influx of users sucking down huge amounts of bandwidth.

The obvious obstacle to be overcome is the strength of the data network. Streaming full-length movies to a phone is data-intensive, and therefore relies heavily on a strong, consistently reliable network. Assuming WiFi is available, this is a non-issue, but, as an example, AT&T's 3G network has struggled with the data usage of iPhone users and you can just imagine what will happen when millions of people start streaming movies.

Anecdotally, I can tell you that my wife and I bring an iPod Touch out with us to entertain my 2.5-year-old with various games and movies. Pocket-size mobile devices, iPod or otherwise, can be great learning tools as well as distractions when things are going sideways or when you just want to go to a restaurant and not chase a kid around. That said, my iPhone/AT&T network experience has been so spotty that I would likely opt to keep the content local, though in an ideal world new content could be downloaded in the background.

Assuming bandwidth is not an issue there are many possibilities for mobile content to take the place of traditional PCs or print media but in the near term mobile content will be only as good as its data connection.

November 23, 2009 4:00 AM PST

Nintendo launches paid video content for Wii

by Dave Rosenberg
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The Nintendo Wii remains a force to be reckoned with in the video game world and new survey statistics along with new revenue streams suggest that Nintendo has still has something up it's sleeve.

Wii 'Theater no Ma'

Wii 'Theater no Ma'

(Credit: Nintendo)
New survey data from Lottay, an online wish-list and gift giving site, shows that the Wii and its associated accessories will regain momentum during this year's holiday season.

The Wii and Wii-related gear were wished for twice as much as the Sony PS3 and Xbox 360 combined though 38 percent of people wanted something other than products--namely cash, and in one case, Satan (I assume for a visit, not as a full-time family member.)

And while a wish, or a request for a gift, is no guarantee that a product will actually sell, there is a dearth of exciting gifts for this holiday season, leaving room for the Wii and other less-new products to be successful.

Just a few weeks ago, Electronic Arts CEO John Riccitiello commented that the "Wii platform has been a little weaker than we had anticipated" but Nintendo of America's executive vice president of sales and marketing Cammie Dunaway was extremely positive about the current sales and the future growth.

But, the focus in the U.S. remains on selling more titles and accessories, not branching out into additional services such as we've seen with Microsoft's Xbox Live, which provides access to Facebook, Twitter, and Last.fm through the console.

Services supporting the Wii are much more sophisticated in Nintendo's home country of Japan, where the company previously launched an advertising program to turn family time into a commercial endeavor and a catering channel that lets users order food from a variety of vendors directly through the console, delivered directly to their front door.

This weekend Nintendo added to the Wii's variety of interactive offerings, with a paid video download service for Japan. "Theater no Ma" will offer a range of movies, anime and other paid content from providers including Walt Disney and Sesame Workshop.

Downloading rental content onto game consoles and set-top boxes has been common in the U.S for awhile, but the reason this service could prove meaningful in Japan is because Nintendo researchers previously found that 87 percent of Wii users use the console on the biggest screen in the house, which is still the one in the living room.

November 19, 2009 10:15 AM PST

Apple's App Store review irking developers

by Dave Rosenberg
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Parallel Kingdom

Parallel Kingdom

(Credit: Parallel Kingdom)
I received a note from Andy Gilbertson, one of the developers behind Parallel Kingdom, a location-based mobile massively multiplayer (or MMO) game that uses your GPS location to place you in a virtual world atop the real world. The game seems like an obvious winner for the iPhone, but the team has been struggling to get it past Apple's app review policies.

Gilbertson's travails with the iPhone application acceptance process illustrates why Apple's gating of applications is a troubling reality for developers--and for consumers. And while it's understandable to have a gating mechanism in place, if Apple wants to remain at the top of the mobile application space, it so heavily dominates, the company needs to commit more resources to not just the application review process, but in communicating with developers. As of my last e-mail exchange with Gilbertson, Apple had not responded for more than six days. My call to App Store PR has gone unreturned for about 18 hours as of this post.

Apple's acceptance policies can be shockingly difficult to navigate, so much so that some have marveled at the fact that an ecosystem could build up at all.The fact that iPhone applications are written in Objective C, a previously uncommon programming language, is in and of itself a show-stopper for many developers, but that obviously hasn't stopped development.

Earlier today Ars Technica wrote about several prominent developer including Facebook's Joe Hewitt, Second Gear's Justin Williams, and longtime Mac software developer Rogue Amoeba, all of whom recently "decided that enough is enough" and that they would abandon iPhone development efforts. And while each cites different reasons, the underlying thread is that they've had enough of waiting for Apple to distribute their apps, an instantaneous effort on the Internet.

While restrictive or complex policies are unlikely to stop the iPhone juggernaut, they can be very painful reminders of what would happen if we regress 15 years to the unfortunate walled gardens of AOL. Tim O'Reilly reminded us of the risk of the closed Web recently, commenting that "anyone can put up a Web site, or launch a new Windows or Mac OS X or Linux application, without anyone's permission. But put an app onto the iPhone? That requires Apple's blessing."

It's unlikely that a few developers falling off of the iPhone train will have a dramatic effect on the growth of the market, but this kind of unhappiness can easily lead to a backlash. The big question is if another mobile platform can take the place of the iPhone.

Android has arguably the best chance, but it currently struggles due to immaturity of its own application ecosystem. Nonetheless, there is a huge revenue opportunity for an open-Web approach to mobile applications. It remains to be seen if Android can live up to the hype and not fall into the same trappings as the App Store. For all of Apple's sins in how they run that business, it's undeniable that it remains hugely successful.

November 17, 2009 11:12 AM PST

Why Windows Mobile and Palm will continue to fail

by Dave Rosenberg
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My previous post about mobile data sync brought in several public comments and many more private e-mails from various companies asking for perspective on how the leading mobile platforms will compete in the sync space and whether or not start-ups like Funambol can compete.

More than anything else, the leading mobile devices--the iPhone and BlackBerry, are marketed more effectively than any other platform, especially Windows Mobile, which by all counts should be the leader.

It's not that Windows Mobile is so terrible (you can decide for yourself), but that Microsoft hasn't done enough to make users want to use it.

In a conversation today, I learned a bit about Microsoft's My Phone service, which I had previously never heard of, and also a bit about Palm's strategy in relation to making the Pixi a device of choice for the younger set. Minutes later, the two worlds collided when I hit the My Phone site and came across this image of bitter irony.

Is this ad in context?

Is this ad in context?

(Credit: Screenshot by Dave Rosenberg)

It's an ad for a Palm product that doesn't run Windows Mobile, or work with the Microsoft service, running on the MSN ad network, prominently displayed on the My Phone page. It confused me so much that I actually clicked on the ad to see if the services were somehow related.

There definitely is some logic from the Palm side--i.e. getting users to their devices, but this is an interesting failure of contextual advertising for Microsoft, allowing a direct competitor dominate the banner ad on their service page. Really, neither side benefits from the ad placement and considering the woeful state of both businesses, one would hope they care enough to not embarrass themselves and at least keep competitor ads off of their own sites.

While neither Windows Mobile nor Palm will be totally dead any time soon, if I'm on Apple's iPhone team, or working on Android, I wouldn't be too worried.

November 15, 2009 9:55 PM PST

Is Ohai the next big thing in social games?

by Dave Rosenberg
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With Electronic Arts' recent $400 million purchase of Playfish, social games are all the rage in today's tech industry. That's no surprise: lightweight games on social networks (which people usually play while they're goofing off at work) and social games have attracted huge player numbers with the biggest titles boasting 20 million to 60 million regular players.

City of Eternals.

(Credit: Ohai)

But here's the worst kept secret about the genre: most social games aren't very, well, fun. They offer limited interactivity, game play challenge, and graphics. Consequently, players aren't invested enough to spend much money on them, especially compared to "hard-core" massively multiplayer-online (MMO) games. Even with the better social games, average revenue per users is less than a $1 per person.

By contrast, millions of World of Warcraft players willingly pay $15 a month in subscription fees alone. But, what MMOs like WoW have in revenue, they lack in growth due to the high technical hurdles and subject matter. WoW seems to have tapped out at around 12 million players, far less than the largest social games. And while the sustained revenue is great, attracting new players remains a challenge.

Enter City of Eternals, a Web-based MMO with a modern vampire theme from a new start-up called Ohai. After a long conversation with company CEO Susan Wu, a pioneer in the online gaming and virtual goods space, there are a number of reasons I think Ohai has the potential to succeed in the sweet spot between social games and hard-core gamer MMOs, and why the shift to social connection could become gaming's next big thing.

Ease of play
The biggest game platform isn't the Nintendo Wii or the iPhone, it's Flash, a browser plug-in installed on more than 99 percent of the world's PCs. An estimated 200 million people already play casual Flash-based games.

And while most MMOs require a huge client install, Ohai CTO and game industry veteran Don Neufeld (Everquest II, PlanetSide), and his development team (Free Realms, Lord of the Rings Online, Star Wars Galaxies, Dungeons and Dragons Online) have re-engineered Flash into an MMO platform that pretty much anyone can play, without having to install additional software or hardware upgrades. As Wu put it, this means Ohai can build "Games for your aunt who plays FarmVille on Facebook and your cousin who can't play World of Warcraft on his school PC."

Deep social network integration
City of Eternals is fully integrated with Facebook and soon Twitter, but that doesn't mean the game is only playable within the social network. Players' Facebook profiles follow them into the vampire world, so whenever you're curious, you can click on a fellow vampire, and check their Facebook profile. This is the first time I've seen this feature in any MMO, and it brings in some new possibilities--making it much easier to socialize (and of course flirt) within the game. Wu told me City of Eternals' gender spread is 50-50 (extremely rare, compared with male-dominated MMOs), so I wouldn't be surprised if it became a major online hotspot for socializing. Especially since the game isn't about geeky elves and orcs, but far more popular vampires--see below.

Subject matter
The Twilight book series has sold more than 85 million copies worldwide; the Underworld movie franchise has brought in more than $300 million in theatrical sales; and TV's True Blood and Vampire Diaries both have huge cult followings. Vampires are obviously pervasive throughout popular culture, but there's yet to be a full-fledged vampire MMO.

Still in Alpha stage, Wu told me that players average 12 logins per day in the game, with an average session length of 5 to 6 minutes, fulfilling one of the company's goals of making a "bite-sized MMO."

City of Eternals is Ohai's first of many of what they call "MMOs for everyone." Of course, there's still a lot of unknown variables. The vampire craze may wane too soon, and as the Electronic Arts purchase suggests, the competition is huge. Maybe I'm crazy, but by next year, I think there's a good chance the most popular MMO on the market won't be World of Warcraft, but City of Eternals, or another game that crosses the boundaries between MMO and socialized gaming.

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About Software, Interrupted

In "Software, Interrupted," Dave Rosenberg discusses disruption in the software market, as well as the products and services that keep business technology norms in perpetual flux.

With nearly 15 years of technology and marketing experience spanning from Bell Labs to multiple start-up IPOs, Dave co-founded open-source software company MuleSource and now serves as general manager of Hardy Way. He also happens to be a U.S. patent holder and a workaholic. Technology is his best friend and mortal enemy.

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