Paul Wallbank – Brilliant Communications

Author: Paul Wallbank

Throwing down the gauntlet
The interesting thing with Apple’s announcement of the new iPhone and iPod was the emphasis on gaming with two demonstrations showing off the capabilities of the new devices.

While the iPod and iPhone can’t compete with gaming consoles in a straight out hardware comparison, customers like the idea of being able to play advanced games on their handheld devices.

More worryingly for the console manufacturers is the pricing in the App stores. The traditional gaming model of expensive games subsidising devices starts to fall over when 99 cent, or even $19.99 downloads kill the fat margins.

It’s not just games companies threatened by the iPhone and Android smartphones, probably the biggest threat from today’s launch is to Microsoft.

Last week’s botched Lumia 920 launch throws into stark relief how Windows Phone is struggling to meet its October release date.

The pressure is now right on Microsoft to deliver, the continued evolution of the iPhone is also leaving Blackberry and Motorola increasingly looking flat footed and vulnerable in a market that’s leaving them behind.

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September 13, 2012
Facebook’s war on nipples continues
Mike Stevens, a cartoonist with the New Yorker magazine, found himself the latest victim of Facebook’s War On Nipples when his cartoon depicting Adam and Eve caused the magazine’s Facebook page to be shut down.

This is the latest shot in Facebook’s War On Nipples. Two years ago a Sydney jeweller found her page shut down for using a naked doll as a model and breast feeding mothers waged a long campaign against the site taking down pictures of babies being fed.

If you live outside the US, it’s amusing to observe Americans’ bipolar attitude towards women’s breasts — on one hand they are celebrated though Pamela Anderson, breast enhancement and Hooters while the merest flash of nipple sends the nation into purient overdrive.

So Mark Zuckerberg’s ban on female nipples is understandable in that context as is the reaction to that ban by people who don’t see much wrong with breast feeding mums or harmless cartoons.

What we should remember though is Facebook have the right to run their site whatever way they like — if Mark Zuckerberg decides he doesn’t like plaid shirts or broccoli he’s within his rights to ban pictures those as well.

This is the risk if you’re basing marketing strategies around social media services. If you want to play on Facebook, you have to play by Facebook rules.

So take your nipples elsewhere.

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September 12, 2012
Microsoft TechEd Australia 2012
2012 is the year that will define Microsoft as the market place they have dominated moves to tablet computers and smart phones.

The challenge for Microsoft is how they migrate their desktop and server products to the platforms dominated by Amazon, Google and Apple.

At this year’s TechEd Australian conference the pressure is on Microsoft to present how they will deal with this challenge from tablet computers, mobile phones and cloud computing.

The big ticket item is the Windows phone. After the disastrous launch of the Nokia Lumia 920, Microsoft has to convince the market place they have a viable competitor to the iPhone and the plethora of Google Android devices.

Microsoft have taken the opposite strategy to Apple in trying to offer the same operating system on all their devices. If Windows 8 can run on all systems then they have a chance of locking high margin corporate users onto their platforms.

Windows 8 itself has to have a compelling story to tell. Much of Microsoft’s future relies upon a successful rollout of the new operating system that meets the demands of both consumers and businesses. Users increasingly expect social media and cloud computing services to be integrating into their systems.

Cloud computing is an important part of Microsoft’s corporate strategy and how the new version of Windows Server delivers on the business requirements of using cloud services will be an important factor in the product’s success.

One of Microsoft’s most profitable product lines has been their Office suite of applications. Margins on Office have been under pressure since the release of the free Google Docs suite and the corporate Google Apps product.

The advantage Microsoft have in the office productivity market is their products have the full range of feature business users need and Google, and Apple, have struggled to include these tools in their products.

With new versions of Office, Server, Phone and Windows all being released Microsoft have a lot of stories to tell and the stakes for the software giant are huge. It’s going to be an interesting few days at the Gold Coast Convention Centre.

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September 11, 2012
Travel review – Jetstar JQ406 Sydney to Coolangatta
One of the delightful aspects of the low cost airline model is the contempt management has for their customers.

That scorn for the people who fund management’s salaries is guilty pleasure to watch on a third rate TV “reality” show, but it’s not fun when you’re on the receiving end.

So with a fixed smile and a grim determination not to to let the bastards grind me down, I headed to Sydney Airport to catch Jetstar’s flight JQ406 to the Gold Coast

Check in

It’s no conincidence people make reality TV shows documenting the clash of penny pinching, ticket clipping corporatism with the modern lumpenproletariat; the queues are long and the tempers are frayed.

The key to your temper surviving Jetstar’s check in is not to have checked baggage so you can dodge the general grumpiness in the queues.

Otherwise have your all your documents handy when you get to the check in clerk as they are quite friendly once they realise you aren’t going to mess them around.

Seats

A positive with Jetstar is the seats are spacious and comfortable compared to their Virgin competition and Qantas cousins.

While seat comfort isn’t an issue on a one hour flight it is a plus on longer flights and actually makes Jetstar a reasonable choice if you want to sleep on a ‘red eye’ from Perth.

Meals

As a low cost airline, meals and drinks are an extra charge on Jetstar and really who can be bothered on a mid-morning one hour flight?

During the Flight

An irritation with JQ is the early “turn of electronic devices” policy that sees cabin crew telling you to turn off devices the moment the plane starts its descent.

On short trips this weird policy means as little as twenty minutes time available to use a laptop or tablet, if you want to work on your flight then choosing Virgin or Qantas will give you more time to get things done.

On arrival

Baggage collection was surprisingly slow for a relatively quiet airport and Coolangatta Airport’s management save a few bucks by opening a minimum of luggage carousels which can cause crowds if two flight arrive at once.

Getting away

Coolangatta Airport is a delight for transport with plenty of taxis, including Maxi Cabs that seat half a dozen people and a regular city bus service that runs the length of the Gold Coast.

Overall Jetstar delivers what it promises, an 21st Century air flight that does its best to imitate a 20th Century bus.

If there is an alternative at a reasonable cost then go for it, otherwise accept the low prices and avoid checking baggage.

Paul travelled to the Gold Coast courtesy of Microsoft to attend their Australian TechEd event.

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September 11, 2012
Enter the Dragon
Once up a time our parents laughed at the tinny little Japanese cars – in the 1960s companies with silly names like Toyota and Mazda could never threaten world giants like Chrysler, Ford and General Motors.

Within two decades the Japanese had moved their products up the value chain leaving their American and European competitors running scared while governments in western countries offered the new leaders of the manufacturing industries bribes to set up plants in their towns and states.

It was always obvious China would follow the same course as the Japanese, particularly given the country’s position as the world’s cheap labor supplier had a time limit thanks to the demographic effects of the 1970s One Child Policy.

So it’s no surprise that Alibaba, China’s biggest e-commerce service, has built its own mobile operating system to compete with Google’s Android.

If Aliyun follows the Japanese development path, the first version is terrible but within five years – the development cycle of software is a lot quicker than that of cars – Alibaba will be a viable competitor to Google and Android.

Chinese developers moving into the mobile market is terrible news for the also rans like Microsoft and Blackberry. As Apple dominate the premium mobile sector and Android the mass market, it’s very hard for those running third or lower to achieve the critical mass needed to be competitive. Aliyun makes it much harder for them to gain any traction in high growth developing markets.

An interesting aspect of the Wall Street Journal’s story is how Aliyun is aimed at the domestic Chinese market for the moment. This is part of China’s economy moving away from being overly reliant on exports, having locally made products that meet the needs and aspirations of a growing domestic economy is an important part of this process.

Exports though will remain an important part of the Chinese economy for most of this century and value added products like Aliyun will be important for China as the cheap labour advantage erodes over the next two decades.

Businesses who think their markets are protected because their quality is better than their Chinese competitors may be in for a nasty shock, just like the 20th Century auto makers who dismissed the Japanese were in the 1970s.

Whether Aliyun is successful or not, we’re once again seeing many of the facile assumptions about Chinese growth being tested as the country’s economy and society evolves.

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September 11, 2012