Paul Wallbank | Paul Wallbank - Communications Professional

Tesla and the open patents

Tesla’s Elon Musk open patent announcement might be good for the future of both electric cars and patents.

Imagine the car steering wheel had been patented at the beginning of the Twentieth Century and that it was only top end vehicles or French cars that were steered that way?

That’s the situation we’re currently facing in the tech world as almost every conceivable idea, however silly, has a patent slapped on it in the hope it can help the business either defensively or as a revenue generator.

Yesterday’s announcement by Tesla Motors’ CEO Elon Musk that the electric car company would be opening it’s patents for ‘in good faith’ uses is a welcome change.

For Tesla it encourages the growth of the electric car industry making the sector deeper and more attractive to consumers who are tightly suspicious about being locked into proprietary technologies.

It’s interesting too that the motivation for taking up so many patents was to prevent the established motor companies grabbing Tesla’s inventions. As it turns out, that wasn’t necessary.

At Tesla, however, we felt compelled to create patents out of concern that the big car companies would copy our technology and then use their massive manufacturing, sales and marketing power to overwhelm Tesla. We couldn’t have been more wrong. The unfortunate reality is the opposite: electric car programs (or programs for any vehicle that doesn’t burn hydrocarbons) at the major manufacturers are small to non-existent, constituting an average of far less than 1% of their total vehicle sales.

So opening up the patent portfolio means Tesla might see more companies enter the space which in turn may create economies of scale.

No end to the patent wars

Although Tesla’s move doesn’t mean all patents wars are over; Musk’s statement that technologies used in ‘good faith’ will be immune from legal action leaves plenty of potential for disputes.

There’s also the problem of cross-licenses with many of Tesla’s invention being subject to agreements with other companies, not to mention technologies bought in from outside.

As Sun Microsystems showed during a previous round of the patent wars, it’s still possible for innocent users to be sued in the event of a dispute.

IBM and open patents

In the wake of that debacle, which fatally damaged Sun’s reputation, IBM made 500 of their patents available to the open source community in 2005 showing Musk’s move isn’t the first time this has happened.

History will tell us if Musk’s announcement helps build the electric car market, if it does it may be an indicator for the future of patents.

Googling your business

Despite Google’s new small business service, the space remains a great opportunity for a disruptive entrepreneur.

Google’s small business services have been a constant irritation of this site, with the view that local listings have been a missed opportunity for the service.

Overnight, the search engine giant has launched their new Google My Business site to bring together the disparate services offered to local enterprises.

At first look it’s a fairly slick way to get new businesses signed up, albeit dependent upon Google+ for the initial login. For businesses with existing Google small business accounts, the site directs you to the revamped Google Places administrator screen.

The immediate observation is that Google+ integration is a weakness as it relies on one ‘real person’ account to administer the listing; this will create problems for business as staff leave and founders retire.

Black Box Verification

Another problem is the black box verification process still remains – it’s hard for businesses to keep their listings fresh and up to date when there’s a risk doing so will see their entries might be suspended for violating some vague rules.

For local businesses it’s essential to have the search engine listing and the Google My Business site makes it easier to get it running, however the problems with Google’s local business strategy remain.

With Google, Facebook and the other online empires neglecting small business, this market is still a great opportunity for a disruptive players.

Heating up the smarthome race

Proving that incumbents can strike back, Honeywell takes on Google’s Nest smart thermostat

Last week Apple sent a big message to the smarthome industry with their announcement of the Homekit, this week industrial control giant Honeywell has released its answer to the Google owned Nest smart thermostat with the Lyric.

The Lyric smart thermostat system is quite an impressive package; along with the smart thermostat, it includes a smartphone app and cloud service that lets users control their home heating remotely.

Other features are maintenance alerts, personalised heating settings and geolocation services for turning systems off and on when occupants are approaching or leaving home. To boot, Honeywell claim the Lyric can save households $200 a year.

The big incumbent

It’s a strong push into the smarthome market which Honeywell has been part of since the concept began thirty years ago and it shows incumbents don’t always sit back and wait for disrupters to steal their markets.

The Lyric’s strength is Honeywell’s massive installed base and its army of experienced contractors; the likely way the smarthome market will evolve is that most installations are going to be carried out while homes are being built or refurbished which gives the incumbents even more strength.

Open standards

What’s missing in the media releases and review is whether the Lyric’s cloud services will offer open APIs to other developers and what format household data will be available in. If it’s a relatively open system then it will have a big advantage over Google’s Nest which all indications show is going to be closed to other providers.

No doubt we’ll also be seeing compatible air conditioning units and heaters entering the market soon as well which will drive a standard of some sort to develop in the HVAC field, again the question of how open those protocols will be remains to be seen.

The next move is Google’s, it will be interesting to see how the company will react to the incumbents fighting back and Apple’s strong positioning to dominate the market.

Fear in the cloud – the loss of trust in online business

Should online businesses, particularly cloud services and social media platforms, begin to worry they’ve lost the trust of the community?

Today I spoke about online safety to the Australian Seniors’ Computer Clubs Association about staying safe online.

Hopefully I’ll have a copy of the presentation up tomorrow but what was notable about the morning was the concern among the audience about security and safety of cloud services.

The ASCCA membership are a computer savvy bunch – anyone who disparages older peoples’ technology nous would be quickly put in their place by these folk – but it was notable just how concerned they are about online privacy. They are not happy.

Another troubling aspect were my answers to the questions, invariably I had to fall back on the lines “only do what you’re comfortable with” and “it all comes down to a question of trust.”

The problem with the latter line is that it’s difficult to trust many online companies, particularly when their business models relies upon trading users’ data.

Resolving this trust issue is going to be difficult and it’s hard to see how some social media platforms and online businesses can survive should users flee or governments enact stringent privacy laws.

It may well be we’re seeing another transition effect happening in the online economy.

Touring the Barcelona smart city project

A slideshow on how Barcelona is using the Internet of Things to build a smartcity.

Last year I posted the Geek’s Tour of Barcelona, looking at the town’s smartcity initiatives after visiting the city for Cisco’s Internet of Things World Forum.

At the Australian Internet of Things Forum in Newcastle last month I cobbled together a quick presentation around the topic to illustrate what smartcities can deliver.

This was particularly topical for Newcastle as the New Lunaticks and the local business community are supporting the Kaooma project run by Vimoc Technologies in one of the city’s entertainment districts.

Kaooma – which is an entrant in Cisco’s IoT Innovation Grand Challenge – is particularly interesting because it’s a wholly private project with little, if any, formal government support as opposed to London’s Regent Street Internet of Things initiative that’s part of a billion pound regeneration of the precinct.

Australia’s Newcastle, the world’s largest coal port, has a number of challenges itself as the country’s once in a century mining boom unwinds and city deals with a neglected downtown in the face of a rapidly changing economy.

While the Barcelona project is in early days, the presentation shows how cities are using the Internet of Things today and gives us some hints on how those uses will evolve over time.

Paul travelled to Barcelona as a guest of Cisco Systems

Uber’s Travis Kalanick on the highly valued business of disruption

Uber’s Travis Kalanick speaks on his company’s $17 billion valuation

For a four year old business, hire car service Uber is certainly causing a lot of trouble.

Bloomberg Businessweek’s Brad Stone has an interview with the company’s founder and CEO Travis Kalanick on his plans after announcing a 1.2 billion dollar fundraising that values the venture at $17 billion.

Seventeen billion dollars is a hefty valuation for the business and many believe it marks the peak of the current tech bubble, although many of us though Facebook’s billion dollar purchase of Instagram two years ago was that marker.

Kalanick’s views are interesting in his take on that valuation – as he points out the San Francisco taxi market alone turns over $22 billion each year, so Uber’s valuation isn’t beyond the bounds of possibility.

Uber and Logistics

Also notable is Kalanick’s view on the logistics market, something that this blog has maintained is the real business of Uber. In that field, Fedex’s stock market value is $44 billion although Kalanick is discounting the company’s potential in that field.

Right now Uber is on a high, and regardless of any set backs they may get with their ride sharing services, it’s hard to see how the company isn’t going to grab a healthy slice of the global taxi industry and possibly disrupt the logistics industry as well.

Even should Uber end up being the poster child for today’s tech sector irrational exuberance, the company is a stunning example of how businesses we once thought were immune from global disruption are now being shaken up.

Regent Street fights back

London’s Regent Street shows how main street retailers can use new technology to reinvent themselves

Main street shopping strips have had a hard time over the past forty years as supermarkets and big box stores have steadily drained customers away, however the new wave of retail, manufacturing and logistics technologies may be an opportunity to revitalise them.

A good example of shopping strips using new technologies is London’s Regent Street with its smart shopping app that integrates with iBeacon location devices, the website Contactless Intelligence reports how shopkeepers, landlords and the local authorites are rolling out an initiative as part of a £1 billion regeneration project.

London’s Regent Street is a fairly unique mainstreet in that it’s extremely upmarket which gives it a lot of advantages over most neighbourhoods, but it does point the way for how other shopping strips can use new technologies to reinvent themselves.

Apple goes for the wearable market

Apple’s gets its message out about wearable technology

“You’re more powerful than you think” is the message of Apple’s current iPhone advertising campaign.

Their latest advert in the campaign features joggers, gymnasts, swimmers and golfers all using iPhone apps to connect with their wearable technologies.

It didn’t take long after Monday’s World Wide Developer Conference announcement of Apple’s Healthkit for the company to get its message out about wearable technology.

Undoubtedly we can look forward to soon seeing the Homekit smarthome campaign showing how Apple’s products make life easy in the smarthome.

What’s absolutely clear is Apple’s determination to be the hub of the domestic internet of things, whether the vendors of those fitness and smarthome devices want to be locked into the world of Apple remains to be seen.

Is digital enough to save magazines and newspapers.

The 2014 PwC Global Media and Entertainment report says newspapers’ revenue decline is over but it’s not all good news.

“Globally the newspaper industry’s revenue decline will end in 2015” declares PwC in their 2104 Global Media and Entertainment report released earlier this week.

While PwC thinks the decline for print – both in newspapers and magazines – is over, however there’s little if any growth on the horizon with the company forecasting 0.1% growth per annum for newspapers and 0.2% for magazines over the next four years.

The reason for the stabilisation in revenues is the move to paid apps and paywalls, which means advertising is less important to the print industry’s revenues.

Circulation revenue will almost match advertising revenue by 2018. In 2013, while circulation revenue rose globally after years of decline, advertising revenue continued to fall. Circulation’s share of total revenue will rise from 47% in 2013 to 49% by 2018, meaning consumers may soon become publishers’ biggest source of revenue.

PwC’s view is consistent with the advertising trends flagged by Mary Meeker in her State Of The Internet report last week and, if the forecasts are correct, it will show the magazine and newspaper industries are making the transition to a new business model.

One of the strange points in the PwC report is the talk of ‘Digital First’.

‘Digital-first’ is becoming the norm for newspaper publishers. For many years, news publishers’ digital output was led by their print products. But increasingly, titles will be reorganised as ‘digital-first’ operations, publishing content that works best on connected devices.

This is true, but newspaper managements have been proclaiming their ‘Digital First’ strategies for close to a decade; any media company that doesn’t put its digital channels first is doomed to extinction anyway.

Which is one of the important points of the PwC survey; it’s about the global industry and while that might be flat-lining, individual outlets will still fail. That’s something which concentrate the minds of those managing some of the more poorly run media empires.

Mixing brains, bravery and magic

Gadi Amit on designing things that matter to people

A few weeks ago I interviewed Gadi Amit, principle of New Deal Design ahead of his visit to Sydney for the Vivid festival.

Tonight his public talk for Vivid – Designing the Things We Love – didn’t disappoint, particularly his disdain for designing luxury goods.

“I believe we should design things that help people live their lives; a $50,ooo watch doesn’t do that,” he told the audience.

Through his presentation he showed his best known projects including the FitBit and Project Ara along with discussing some of his failures and why sometimes it’s best to part with a client should their philosophy differ with the designer.

Gadi’s view is a refreshing take from the design and tech industries that are often fixated with celebrity and bling. The view also ties into the manifesto of New Deal Design – “We mix brains, bravery and magic.”

Apple’s grab for the home internet of things

Apple’s iOS8 and OS X Yosemite announcements are part of the company’s attempt to dominate parts of the internet of things.

As usual, Apple’s World Wide Developer Conference in San Francisco yesterday concentrated the attention of the tech world.

This year’s was a little more subdued than usual with the key announcement being around Apple’s new Yosemite OSX operating system, iOS8 and the new developer Software Developer Kit (SDK).

While a little underwhelming after all the speculation about smartwatches and fitness devices, these announcements mark a clear strategy for Apple to lock customers into their products through the cloud, smarthomes and wearable devices.

Open, but closed

Normally discussion about an SDK makes most people’s eyes glaze over, but Apple’s announcement marks a change in the company’s strategy in making over 4,000 APIs – Application Program Interfaces – open for developers to connect their programs into iOS8.

This marks a change for the company in allowing programs to easily hook into Apple’s mobile operating system and while it looks like a move to openness, the ease of making fitness applications, home automation and smart car services actually helps lock users into the Apple ecosystem.

Key to the ecosystem lock-in strategy are the Healthkit and Homekit services offering connections to health and home automation applications which are part of Apple’s Internet of things play, by offering easy access into the iPhone and iPad the company hopes to lock users of third party devices into the iOS world.

Increasing vendor lock-in

Similarly, the cloud services included with Yosemite and iOS8 increase that lock-in making it harder for users to step outside that ecosystem. It’s notable there’s no Android app version of the cloud service which indicates how Google is now Apple’s number one enemy.

Apple’s announcement today shows how the company is positioning itself to lock users into their services as the internet of things rolls into businesses, cars and homes.

It’s an indication the internet of things may well become a world of closed silos and it will be interesting to see how competitors react to Apple’s attempts to be the biggest walled garden.

Television in an age of context and the mobile internet

Ericsson’s head of broadcast, Thosten Sauer, sees context as key to using mobile video as telcos struggle with exploding internet traffic

One of the great changes to the telecommunications industry is the rise of video. As part of the Decoding the New Economy video series we had an opportunity to grab a quick chat with Torsten Sauer, Ericsson’s Vice President of Broadcast services.

Video is the great challenge for telecommunications company, broadcasters and consumers with Cisco Systems predicting by 2018 over 50% of internet traffic will be videos.

As designer Gadi Amit told this website a few weeks ago, the problem is compounded as the broadcast world evolves from a three or four screen environment to an almost infinite range of screen sizes and devices.

With most of that traffic being over mobile devices, Sweden’s Ericsson has been adapting to the the industry’s change to mobile video with a series of acquisitions in the broadcast production space. Sauer explained some of the motivations and strategies behind Ericsson’s moves in the industry.

Red Bee Media

Ericsson’s acquisition of British content house Red Bee Media earlier this year is one of the areas where the company is looking at growing its services.

“Consumer behaviour is changing and that represents a huge transformation for the industry,” Sauer says. “We want to be a catalyst for that transformation through providing the right services.”

Along with more traditional fields like basic production services, Sauer sees the company’s opportunity in building the metadata into videos making them more accessible over the very crowded internet.

A multitude of screens

The other key opportunity Sauer sees is that by creating richer content, it becomes easier for creators, broadcasters and advertisers to serve appropriate content to viewers depending upon both their interests and the devices they are using.

“It’s a great opportunity for broadcasters to address new opportunities and revenue streams on different devices and in different locations.”

Sauer’s view ties in with Gadi Amit’s in that the proliferation of ways to watch videos is going to create great opportunities for broadcasters to find different ways to show their work.

The innovation race

With the proliferation of channels, the field isn’t just left to the incumbents with Suaer seeing the entry of new broadcasters as one of the great opportunities.

“There will be a lot of opportunities for a lot of new players, that will create a healthy innovation base. It’s a very exciting time to be in this industry.”

With video marketing exploding, Sauer sees it’s important for non-broadcast businesses to experiment with video; “It’s now the time, business models are not all set and technology models are not all set.”

Just as businesses have to deal with a more mobile marketplace and workforce, we’re also seeing video becoming more important. It’s a great opportunity for businesses to develop new channels.