Cloud vs. Desktop

Seeing the success of Microsoft in Desktop software, many companies were trying to take some market share from Microsoft but they have not been successful. When Google initiated a new strategy with GoogleDoc to replace desktop software by the cloud based software: many thought that this will revolutionize the industry. Nevertheless, various factors did not support this logic. Still the strategy is valid and Google purchased DocVerse. The news from Read It India says the following:

“Google delivered the latest salvo in its battle to wrest control from Microsoft over office productivity with its purchase of DocVerse, a Microsoft Office collaboration startup. The Wall Street Journal reported the purchase price was $25 million.”

Khosla+Gates=New Innovation

In recent news in various sources, Bill Gates, a philanthropist has invested in clean energy. The interesting episode here is the investment of mind and money both to incubate breakthrough technologies. This has been hailed as Bill’s come back into profit making world but in clean tech area.

As per the news his publicly disclosed investments in energy include algae fuel company Sapphire Energy. He was invested in Pacific Ethanol but is now divested from it. With former Microsoft CTO Nathan Myhrvold, Gates is also backing TerraPower, which seeks a breakthrough in the design of nuclear power plants.

Gates Notes would be a great site to follow just to learn from the best entrepreneur cum philanthropist.

I am optimistic that the meeting of minds will fuel the innovation to next level…keep tuned!!

Apple vs. Google

A year ago, we were discussing about who will control the internet? At that time we looked at four companies: Apple, Google, Microsoft and Facebook! After a year while surfing around and discussing with visionaries–I came to a conclusion that the battle is between Apple and Google only. Others are fading away…

The recent acquisition of Quattro Wireless by Apple showed the intention they are having. It is an attempt to answer the move Google took with AdMob acquisition. On the other hand launching of Nexus One by Google created havoc in Apple’s board!! Even Eric, CEO of Google who was in Apple’s board had to leave. So the battle is fresh and both have the intention to become the number one in Mobile Computing!

Well the friendship was tight before Android launch by Google but after that the friendship turned into foe. And the success of AppStore triggered a wave of competition and Google followed it carefully.

The growth in mobile advertising will be coming and both want to have a leadership position there. It is a growing business…finding the right business model and usability is a challenge!!

125,000 mobile application on iPhone is an ocean to ride for Google. According to IDC, iPhone controls a 14% market share now while Android as 3.5% only. The same report says that Apple could employ its user data and geo-location technology to make ads more relevant–it is wait and see only now!!

On the search engine side Google has 65% of market share and in mobile search also a huge winner. But no one knows when Apple comes with its own search engine in iPhone replacing Google completely. I keep my fingers crossed!!

Another player in the market is Tablet from Apple. While looking at the software industry at least Microsoft never built PCs and I wonder why Google came to Nexus One? Any comments on this would be of great help!!

My bet is that Google might even make mobile phone free. If that happens then Apple would be in a difficult situation. But for that Advertisement Ecosystem in Nexus must be functioning and mCommerce might be a reality.

The loser in the game is Microsoft. Nokia is struggling with Ovi Store which has not been able to trigger any mass adoption unlike iTunes store or AppStore. Other tech giants are also fading away….as the game goes to Services not the design of mobile phone!!

Android is a threat to iPhone business (which controls 30% of Apple’s sales). Mobile search is going to boom with mobile advertising and there will be the battle coming. This collision of giants will accelerate Innovation and after a year we are going to revisit this blog and do the mapping again!!

TOTAL Cost of Ownership

This is the summary of the learning over two weeks and just reflecting on the learning from the past. While in previous job we used to talk about Total Cost of Ownership in evaluating a venture, project or business opportunity or investment opportunity. In today’s terminology it is called Application Lifecycle Management cost in software business and it might have other fancy synonyms everywhere. Nevertheless, the notion is still live and kicking. While evaluating an option the notion of capital expenditure only must be eliminated. Most of the bidding we have gone throughout our business life is based on this capital expenditure (CAPEX). Nevertheless, operating expenditure (OPEX) includes most of the expenses in our balance sheet and PL account. Any solution lower at the CAPEX level but higher on the OPEX side is not a good solution. in a recent seminar I learned that the notion of outsourcing is trying to estimate this lifecycle cost. And according to many CEO’s outsourcing is not a good solution for their long term health of the business. While 25% of all IT budgets are invested in application development, how can we ensure that the investments made result in a maximum business impact for an organization? This is the question asked during recent Microsoft seminar. At the same time, while 75% of the lifecycle costs of an application development project are maintenance costs, how can we ensure that the lifecycle costs are minimized without jeopardizing the business impact ?

According to Microsoft, there is no silver bullet, but it requires careful development of individuals, teams and organizations. It requires technologies, platforms, tools enabling the business impact while keeping the lifecycle costs at minimum. It requires understanding and commitment of joint goals and joint way of work when aiming for the business result.

I am impressed with the logic of practice based thinking in cross domain team from business and IT combined would be the right approach–according to Mr. Jacobson, the keynote speaker. Here I had a question to him–how about the context? Any process is valid for a context…we can not expect to have a universal process without specifying the context and assumptions there. For me a process is valid so far we agree on the assumptions and follow an agreed and proven methodology to produce the result. Then only I am convinced with the process–otherwise not..

I would love to quote Eric Ries on this…we need to have problem teams first and then solution teams…not the other way round!!!! Please be careful to solve the biggest problems we have gone through due to such problem of solving the problem without really understanding it!!!

(As I have written this post in a hurry–I could not put links to all keywords here)

Reflections from MoneyTalks Forum

It was interesting to see such a huge participation and engagement at MoneyTalks Forum (November 12-13, 2009). Microsoft was featured and especially its BizSpark Program. I did not post this write up just after the event because I wanted to see how many will connect and interact with me among the business cards collected. I found the value of such great thinkers in my network and I maintain my live network online in LinkedIn. I felt that I made to the 6th biannual MoneyTalks Forum–without realizing the previous five successful ones!

The Finnish Mobile Assoiciation organized the moble circus during the second day of the event. This shows that the locus of mobile innovation is still live and kicking in Espoo no matter what the giants in mobile domains are doing!

Interesting part to this event is that you can book a meeting with the other participants in advance and there are 20 minute slots meant for that. This is where you have a chance to create the right connections for your collaboration or financing or both.

The whole delegation from Israel and US made the atmosphere interactive in dark Finnish weather. 7 minutes pitches and 1 minute pitches and even elevator pitches were interesting to observe! I summarized these in my previous blog – basics of entrepreneurship while presenting you cannot miss these components.

Ericsson, Nokia, Nokia Siemens Networks, Microsoft, Otaniemi Marketing, Greater Helsinki Promotion and the main organizer of the event Technopolis deserve the great applaud in organizing such a great event. We look forward to future events from Technopolis to be of great success as well and sooner there will sustainable business model for Technopolis ventures as well.

Some of the companies featured on the event through presentations and pitches were: BookIT, Canatu, Ecotec, Cityvice, Fambit, Med-Byte, GP Bullhound, M-Technology, Pocum, Suntrica, Embedone, Embelir, FEnomen Creator, Mobiletools International and Sibesonke. Canatu and Sibesonke were voted best ventures with growth potentials. This shows that creativity as a differentiating strategy works and the light of beacon is emerging…

MicroNokia?

Two giants Nokia and Microsoft are getting into partnership for the enterprise mobile market.

The press release says that “the two companies will collaborate on the design, development and marketing of mobile enterprise platforms including Microsoft Office Mobile and other business communications, collaboration and device management software for Symbian devices.”

2010 has been the target date to hit the market with new products based on this partnership. Microsoft business division president Stephen Elop said the deal would focus on email, collaboration, Web 2.0, SharePoint, Instant Messaging, presence and other rich office mobile applications, including the ability to view, edit, create and share Office documents with mobile-optimised versions of Microsoft Word, Microsoft PowerPoint, Microsoft Excel and Microsoft OneNote.

What does this alliance means?

There has been incidences where Microsoft has been creating monopoly in the industry it aims to embark on. So far mobile industry has been the biggest challenge–simply Nokia has been strong despite the attempts from the Redmond.

This alliance clearly demonstrates the notion raised by Geoffrey Moore: Focus on core and outsource/do partnership for the rest!! Unfortunately, Microsoft is on the loosing side in this partnership. The collision of Microsoft and Google on mobile domain has just BEGUN as MicroNokia relationship starts to take shape!!

Microsoft’s Failed Strategies

John Dvorak, a famous tech writer looks at Microsoft’s failed strategies and I thought of connecting it with Apple 2.0 Blog

Then, in the meat of his argument, he ticks off 10 of these “bright and shiny objects.” he quotes:

* Years ago in the pre-Internet era, AOL was the talk of the town, so Microsoft had to copy it with MSN. No money was made; no strategic advantage was gained.
* Netscape was the rage for a while, so Microsoft threw together a browser and got in that business. The browser was given away for free. No money was made; the strategy got the company in trouble with government trustbusters.
* During the early days of the Internet, new online publications appeared. Microsoft decided to become a publisher too, rolling out a slew of online properties including a computer magazine and a women’s magazine. They were all folded.
* Computer books became popular; Microsoft began Microsoft Press. After an early splash and success, the company soon lost interest and the division now languishes.
* Teddy Ruxpin became a hot toy. Microsoft rolled out a couple of robotic plush toys, including the creepy Barney the Dinosaur who sang “I love you and you love me.” The company soon lost interest and dropped the whole thing.
* AOL-TV appeared, along with other device-centric TV-delivery mechanisms in the 1990s. Microsoft created a Microsoft-TV division as well as a device. It soon lost interest.
* Adobe Photoshop became a huge success, so Microsoft hired Alvy Ray Smith to develop photo-editing software. Smith quit when the company lost interest in the idea.
* Yahoo and Google showed that a search engine could be a money maker, so Microsoft copied that idea; it now has Bing.
* Cloud applications are currently trendy, along with notions about software as a service. Microsoft decides to go into that business.
* The Apple rolled out a MP3 player, the iPod. Microsoft came up with its own MP3 player, the Zune. The company also says it wants to stream music.

“This is a company that began making development tools for programmers,” he concludes. “Does anyone see a pattern here?” A billion dollar Question!!

Innovation Radar

In order to capture the disruptive innovations, companies like Intel to Nokia to Microsoft are using Innovation Radar . The main purpose of such a RADAR  is to track the new opportunities and new threats. In this process sensing of new ideas is carried out. The main objective is to get out of the box. For example Intel research has a budget to go to other firms and universities for research collaboration and such budget is allocated to different nodes e.g. universities in the range of 50 to 100 K USD. The idea is to go to many projects with small stakes. The day you announce you are funding a research project there will be thousands of grant applications in your mailbox.  By reading that you will figure out the NOISE in the market.

Intel Capital invest on Start-ups to keep track of technologies having breakthrough potentials. When you announce that you are going to fund ideas you will be loaded with business plans. In reading those you will figure out the trend in the industry and you can work on the brightest ideas and by creating competition you raise the radar even higher and you can figure out the hotspots.

To avoid the assimilation of outside innovation you need to engage the host company from early stage. Who ever thought that Google business model…free software with ad supported model would be a succees? But now you have billion dollar industry behind that business model.

So keep your RADAR powerful!! GO INNOVATE!!

Internet Operating System

Today Google announced a new war against Microsoft by announcing Chrome OS.

“We are going back to the basics and completely redesigning the underlying security architecture of the OS so that users don’t have to deal with viruses, malware and security updates. It should just work,” said Pichai. This will be a fantastic world. We used to ask a question in our web 2.o start-up: why there is no IOS (Internet Operating System) and this looks like an answer to that.

As it did with Android, Google is opening to the open source community to make Chrome a success. Later this year the firm will open source the code base, and netbooks running Google Chrome OS will be available for consumers in the second half of 2010. Let us hope that the monopoly of Microsoft is going to be challenged!!