In the nineteenth century investors gambled and lost millions on railways being built around the world, particularly in South America.
Today we’re seeing a similar frenzy with tech startups, as Zero Hedge points out the combined valuation of the US unicorns is $486 billion with a combined profit of zero.
For some of those unicorns that measure is unfair as they will eventually be profitable although, as Twitter has shown, they may struggle to justify their fat valuations.
Many however will vanish, just as the South American railways did 150 years ago.
Of the railways lines that were built, many bought great change and prosperity to the communities they connected but even there many of the investors did their money.
It’s not hard to think we’re living in similar times today.
Microsoft today opens the doors to its first flagship store outside of North America in Sydney, Australia. A look inside the project gives some insight into the company’s retail strategy.
Situated in Westfield’s Pitt Street Mall, the store promises “cutting-edge retail and experiential spaces that allow consumers to get hands on with products in an immersive way.” What’s immediately notable is the lack of obvious security with all the devices on display being available for customers to pick up and walk around the shop with.
Most of those devices showcase Microsoft’s various projects and alliances. Everything from XBoxes running Minecraft to Lumia phones are on display along with a range of laptops from partners such as Dell, Toshiba and Lenovo.
Looking across the shop floor
Notable among the devices is are the Surface Book and Surface Pro 4 along with the Microsoft Band 2 taking place of pride in the displays. As with everything else, customers can slip the wriststaps on and walk around with them. Microsoft’s representatives were coy on how they will prevent the less honest walking out the store with them.
Microsoft Band 2 wearables on display
Acting as a store greeter, the Answer Desk is the hub of store where representatives direct traffic whether it’s technical support – which like the Apple Genius Bar is provided free – sales, or directions to events in the upstairs community theatre.
Welcome to the Microsoft Store Answers Desk
Community is a big theme in the store and the company announced $4.8 million in software and technology grants to 11 not-for-profit Australian organisations to coincide with the shop’s opening.
That emphasis on ‘community’ is reflected in this quote from the company’s press release;
“Our new flagship store is here to showcase the very best of Microsoft to the local community and we are delighted Sydney has been chosen as its home,” said Pip Marlow, managing director, Microsoft Australia. “This is a key part of our commitment to delivering a truly interactive retail experience that gives customers, partners and community organisations the opportunity to see, experience and do great things, all made possible by Microsoft technology.”
Pip Marlow sees the upstairs community room as being an opportunity to engage with various school, business and technology groups. The space itself is a little cramped, however it can be isolated from the store’s general hubbub, unlike the Apple Store’s equivalent space.
The community theatre
Overall the store is modernistic but somewhat cramped and should the store be successful congestion is going to be a real problem, particularly around the Answer Desk and the narrow stairwell which, like its Apple competitor two blocks away, features a translucent stairwell.
A narrow translucent staircase
In comparison to both the nearby Apple and Telstra stores, the Microsoft Showcase is surprisingly low tech with its retail experience. While the assistants will have mobile Point Of Sale terminals there’s little in the way of location technologies and contactless payments.
Overall the Microsoft Store comes across as a touch crowded and, dare one say, a little old school retail. As a showcase for the company’s products, it’s probably no more impressive than those of the better retailers.
However if Pip Marlow’s aim of building a community around Microsoft’s products is successful, that could prove to be the long term winning strategy for the company.
Making the services available to the community will mean many more opportunities to develop the technology. It could well prove to be a turning point for Artificial Intelligence in making it more accessible to the general public and business community.
Stone’s story is only redeemed by the rental’s home insurance covering the claim, had they not things would have become very expensive for everyone.
The conclusion of the story isn’t satisfactory as AirBnB, while sympathetic to the Stone family, isn’t about to accept any liability while those booking through the service remain at the whim of the property owners’ insurers.
Ultimately what the Stone’s tragic tale shows is just how flawed the comparisons between hotel chains and booking platforms, the line “AirBnB is the world’s biggest accommodation service but it owns no hotel rooms” is a trite as saying the local travel agent owns no aircraft.
The model of the ‘sharing economy’ services depends upon pushing as many costs as possible onto the users and providers, while that might be sustainable it creates a new set of costs and risks for customers which aren’t really understood.
For November’s Nightlife tech spot we’ll be asking if wearable technologies overhyped and looking at what is going on with Australia’s sudden discovery of startup businesses.
Wearable technologies have been the next big thing. Two years ago Google Glass was all the news and earlier this year the Apple Watch was released to great fanfare.
So are wearable technologies overhyped? We’ll be discussing where having a computer on your wrist or in your glasses may be useful and taking your questions on them.
Australia’s startup goldrush
There’s been a shift in the Australian business community since Malcolm Turnbull became Prime Minister and now tech startups have become the new black with a wave of corporate initiatives being launched to support fledgling companies hoping to be the next Facebook or at least Atlassian.
So why now all the interest and can Australia be the next Silicon Valley?
Some of the questions we’ll be answering include.
So where can we get a cheap Apple watch?
Have Apple done this sort of thing before?
What are the experts saying about wearable technologies?
Are there some industries they can be used in?
So why is Malcolm Turnbull so keen on startups?
What sort of things are governments doing to support the startup communities?
How many Australian tech industry successes have there been?
Can Australia be the next Silicon Valley?
Join us
Tune in on your local ABC radio station from 10pm Australian Eastern Summer time or listen online at www.abc.net.au/nightlife.
We’d love to hear your views so join the conversation with your on-air questions, ideas or comments; phone in on 1300 800 222 within Australia or +61 2 8333 1000 from outside Australia.
You can SMS Nightlife’s talkback on 19922702, or through twitter to@paulwallbank using the #abcnightlife hashtag or visit the Nightlife Facebook page.
