Amazon and the battle for your pocket

Will an Amazon phone succeed in tethering customers to the company?

Today Amazon is expected to launch a smartphone which the New York Times suggests will tether consumers to the company.

With 240,0000 apps in its Kindle store, Amazon will be formidable competitor to Google Android devices and Apple. Like iTunes, Amazon also have a strength in already knowing the customer’s credit card details.

The question is can Amazon be trusted? As we see with the Hachette book publishers dispute, Amazon is a company that’s ruthless in bullying suppliers and has a mandate to do so from its shareholders.

With the smartphone becoming the centre of the connected lifestyle, the stakes are high as whoever controls the customer’s pocket controls the customer’s smarthome, smartcar, retail and health applications.

Of course whoever wins this battle, they’ll still have to pay Microsoft for patents.

 

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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.

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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.

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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.

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ABC Nightlife – security, dropping off the grid and 4D printing

Apple Security, the Heartbleed bug and dropping off the grid are the topics of the May 2014 ABC Nightlife spot

Paul Wallbank joins Tony Delroy on ABC Nightlife across Australia from 10pm Australian Eastern time tonight to discuss how technology affects your business and life.

For the May 2014 spot we looked at computer security, specifically Apple ransomware and The Heartbleed bug along with dropping off the grid, 4D printing and the future of design.

To protect from the Oleg Pliss ransomware – or any similar problems – have a strong password, enable the screen passkey and enable two factor authentication.

Join us

We’d love to hear your views so join the conversation with your on-air questions, ideas or comments; phone in on the night on 1300 800 222 within Australia or +61 2 8333 1000 from outside Australia.

Tune in on your local ABC radio station from 10pm Eastern Summer time or listen online at www.abc.net.au/nightlife.

You can SMS Nightlife’s talkback on 19922702, or through twitter to @paulwallbank using the #abcnightlife hashtag or visit the Nightlife Facebook page.

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Holy wars and internet empires

Steve Jobs declared Apple would wage Holy War on Google in 2011 in an effort to secure an online empire

A regular topic of this blog has been the rise of the internet empires that want to lock users into their kingdoms.

On the edges of these empires things can get ugly as the competing groups fight for supremacy and to capture users.

In these wars, no-one was capable of getting uglier that Steve Jobs.

Which makes Steve Jobs’ declaration that 2011 would be a year of Holy War with Google unsurprising.

The statement typical Jobsian hyperbole, but we should under estimate just how serious Apple’s staff would take such a statement.

Apple’s intention to wage ‘holy war’ illustrates just how high the stakes as the online empires try to capture users.

Those Holy Wars and the reason they are being fought is something all of us should keep in mind when we’re asked to choose between Apple, Google or Microsoft.

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Apple’s long game

Apple are playing the long game with their internet of things strategy so they aren’t panicking into a smart watch

It’s always risky to make predictions about Apple, particularly when they are silly. The company plays a long game and isn’t known for panicked releases of me-too products.

Time is ticking for Apple to announce an iWatch, say analysts is a good example of a silly prediction about Apple’s future products and something that’s quite rightly criticised by Daring Fireball’s John Gruber.

As I’ve pointed out before, the watch market is tiny compared to the smartphone with the entire global wristwatch industry’s sales making up only one-seventh of Apple’s iPhone sales.

Part of the problem with stories like CNBC’s is the tech media’s focus on consumer goods, particularly in the internet of things and wearable technology markets.

Analysts like those quoted in CNBC’s story fall for this fallacy and overlook that the IoT market profits are going to come from the backend, B2B applications of the technologies.

With Apple we’re already seeing this with iBeacon being deployed in sports stadiums and shopping centres – Apple’s recent partnership with United Airlines to provide inflight entertainment is another step towards locking up business deals.

There’s no doubt those business deals will flow into the consumer market and an iWatch may well be part of Apple’s longer plan to lock customers into their products.

However claiming Apple have 60 days to launch an iWatch is plain silly, particularly when you have a company with a track record of not being panicked into launching me-too products and playing the long game.

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