Microsoft and the Internet of Your Things

Microsoft has come the IoT party with the ‘Internet of Your Things’ tagline

Microsoft has come late to the Internet of Things party, but it is has a good angle with it’s ‘Internet of Your Things’ tagline.

General Manager of Microsoft’s embedded systems division, Barb Edson, spoke with Decoding The New Economy about the company’s strategy with the Internet of Things.

For Microsoft, the emphasis is on the enterprise side of the business with Edson describing their strategy of “B2B2C” where the value in the IoT lies in managing the data for the businesses providing consumer services.

Most notable is the company’s IoT tagline, as Edson says; “from Microsoft’s perspective we view the Internet of Things as ‘the internet of your things.”

“Lots of companies out there talking about the Internet of Everything that there’s 212 billion devices, why do you care as business executive. You care about your things.”

Microsoft’s strategy is based on leveraging their own assets such as Azure cloud services, SQL Server and Dynamics along their customers’ existing infrastructure.

This retrofitting the internet of things to existing infrastructure is illustrated by Microsoft’s using the London Underground as its main reference site.

Connecting all 270 stations of London’s 150 year old Tube network to the IoT is a massive undertaking and one that can only be done by retrofitting existing monitoring and SCADA systems.

Interestingly the case study only look at Phase One of what appears to be pilot project in selected locations, the Microsoft spokespeople were a little unclear on this when asked.

The London Underground is only one example of millions of organisations that will grapple with adding existing equipment to the internet of things in coming years; it’s an opportunity that Microsoft has been smart to identify.

Edson however is clear on how Microsoft intends to help companies deal with the information overload facing managers, “I think the most exciting thing is we’re seeing real business problems being solved.”

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NASA and the five technologies that will change business

The Chief Technology Officer of NASA’s Jet Propulsion Laboratory discusses the technologies that will change business.

What will be the next five technologies that will change busines? CITE Magazine has an interview with Tom Soderstrom, the chief technology officer at NASA’s Jet Propulsion Laboratory on what he sees as the next big game changers for business.

The list features many of the topics we’ve discussed on this blog; data visualization, the Internet of Things, robots, 3D printing and new user interfaces.

NASA’s Jet Propulsion Laboratory is a good place to start when looking at what technologies will become commonplace in business as the organisation is testing the limits of modern engineering.

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Counting the cost of investors

Israeli startup Waze illustrates some harsh truths for business owners who lose control of their company.

Israeli tech startup Waze was always an interesting business; the idea of combining crowdsourcing and social media to provide traffic reports was fascinating concept that seemed to work well.

When Google bought the company two years ago, it was seen as one of the success stories for Israel’s vibrant tech startup scene, but a LinkedIn post by Waze’s founder Noam Bardin suggests the acquisition was not what the founders wanted.

One of Waze’s mistakes was the valuation of its A round which significantly diluted the founders. Perhaps, had we held control of the company, as the Founders of Facebook, Google, Oracle or Microsoft had, Waze might still be an independent company today.

Not being an independent company is also a weakness for Waze, as Google have shown in the past they are ruthless in shutting down businesses they’ve acquired and there’s no guarantee that Bardin’s creation won’t meet the same fate.

Google though are not alone in this, Yahoo! is notorious for neglecting companies they’ve acquired and today Microsoft announced it’s closing the Farecast travel price prediction service it bought for $115 million six years ago.

Oren Etzioni who founded Farecast in 2004 isn’t happy about this according to Geekwire, however that’s the downside of selling your baby to another business – its destiny is now in the buyer’s hands and their vision may not be the same as the founders’.

A good example of a company controlling its destiny is Atlassian, the Australian founded collaboration tool service, which the Wall Street Journal describes as being “one of the world’s most valuable venture-backed companies.”

In many respects Atlassian is the opposite of the Silicon Valley business model with an emphasis on engineering and product development over sales and marketing. Atlassian’s founders aren’t focused on hyping the business with the aim of selling to a deep pocketed greater fool.

For founders, the tricky balance in raising enough money to achieve their objectives while not giving away a controlling interest. Get it wrong and a founder ends up being forced into a course of action they didn’t want to do, as Noam Bardin found.

Bardin’s post on the Israeli business community and startup scene is an interesting perspective into the strengths and weaknesses of the country’s entrepreneurial culture, much of which would be familiar to many outside of Silicon Valley.

One big lesson though for founders, Israeli or otherwise, is don’t give away too much equity too early, or the investors make take you to places you didn’t want to got to.

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A life in photojournalism

Photographer Charles O’Rear talks about wine, Windows XP and the future of photography

The latest Decoding the New Economy video is an interview with wine photographer Charles O’Rear.

Charles was on tour with Microsoft to promote the end of Windows XP, it was his photo of a Napa Valley hillside that became the background feature the system’s default ‘Bliss’ theme.

The interview is a long ranging discussion on how photojournalism has changed over the last four decades along with the evolution of both the art and science of photography itself.

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Sense-T and the Tasmanian economy

Tasmania’s Sense-T is a brave project to reinvigorate the state’s economy through the internet of things

On Networked Globe I have an interview with Sense-T’s director, Ros Harvey.

Sense-T is a project to connect the entire state to the internet of things using a sensor network monitoring soil, water and other environmental conditions to help the state’s agriculture and business communities.

Harvey’s ambitions for the project are high where she sees Sense-T even having the potential of rekindling the interest of the state’s students in science and technology courses.

It’s a brave project that means a lot to a state that’s doing it tough.

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Synergies aren’t easy money

Avis are finding Zipcar’s synergies aren’t as great as they hoped, perhaps they’re looking in the wrong place.

Last year car rental giant AvisBudget acquired the vehicle sharing service Zipcar, at the time it looked like the established player was buying in the tech smarts of younger startup.

Citing ‘synergies’ at the time of a takeover is always a warning sign that a corporate acquisition may not go well and so it has proved with Avis’ efforts with Zipcar as travel news site Skift reports;

Speaking at the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum in Las Vegas earlier this week, AvisBudget CEO Ron Nelson said fleet-sharing has turned out to be more complicated than the company thought because there’s a cost tied to moving the vehicles from one location to another.

That’s a strange statement as a casual observer would be forgiven for thinking that if any organisation understood the costs of moving vehicles around it would be a car hire company.

Apparently that’s not the case and the ‘synergies’ from acquisition will be pushed back to 2015.

Synergies are elusive things and it may well prove that Ron Nelson would be better served by examining how Zipcar’s technology, algorithms and flat management structures can be applied to a more staid organisation like Avis.

The real value in companies like Zipcar and Uber is the way they are applying technology to moving physical goods around – it’s no surprise that Uber’s Travis Kalanick describes his ambition for the future of his company as being the Amazon for logistics.

For Avis, Zipcar’s opportunities lie in more that just enhancing the company’s fleet utilization; understanding the marketplace and predicting demand is where the real gains could be made.

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Software’s modern loom weavers

Are we coming to the end of the hand crafted era of software development, Pegasystem’s Alan Trefler thinks so.

Are we coming to the end of the hand crafted era of software development? Pegasystem’s Alan Trefler thinks so.

“Technology has completely dis-served the modern economy;” Alan Trefler, the founder and CEO of software vendor Pega Systems, told the audience at the opening of his company’s new office in Sydney yesterday.

Trefler sees there being an ‘execution gap’ between what software promises and actually delivers; that development is too slow and programs don’t give users what they need.

Ending the hand crafted software era

A key reason for this in Trefler’s view is that too much software is ‘hand crafted’ and that his company’s object orientated methods speeds up development time and delivers a better product.

This may well be true, Pegasoftware’s client list is impressive, however moving from the age of ‘hand crafted software’ may well spell the end of many IT industry worker’s careers.

One of Pegasystem’s key Australian customers is the Commonwealth Bank and the company’s CIO, Michael Harte, gave some comments at the opening that illustrated how the software industry is changing.

Freeing up resources

“Does an IT organisation want to change fast enough to adopt a new model driven approach so they can free up capital and free up resources?” Harte asked.

That freeing up resources and capital is exactly what befell the Luddites when the 18th Century mill owners decided to change the technology they used.

For modern IT workers, the last decade has been tough as a whole generation of business analysts, software engineers and project managers have found the enterprise computing industry has been offshored and automated; Harte and Trefler are describing how that process is by no means over.

“Older project models necessitated people to build a use case and then to design something, go through requirements and start crafting software, that’s on old idea,” says Harte who sees a model orientated approach as being more effective for modern enterprises.

Let the machines do the grunt work

That’s not to say that either men are pessimistic about the future of the software industry; both see an improved industry delivering better results for business.

“Let’s move people into higher order things and allow the machines to do the grunt work,” Harte urges.

“Not that long ago when I was learning how to do this stuff we’d have to fill in punch cards and then fill in Word Documents to write out technical requirement, that’s not much fun.”

“Lets have some fun and get some work done.”

Harte is describing a very different IT industry and workplace, one that doesn’t need older skills and – more importantly – doesn’t need as many clerks or middle managers carrying out routine administrative tasks.

It should be noted that both Harte and Trefler were adamant that their visions did not mean job losses when asked by this writer about the employment consequences, but it’s impossible not to come to the conclusion that a fundamental industry change means many skill sets become redundant – again this is what happened to the Luddites in the 18th Century fabric mills.

“What we think the next ten years are going to be about is changing those metaphors,” says Trefler. “There can be a more highly evolved communication between IT and business folk.”

Both Trefler and Harte see design as the future of software with most of the human work being in creating the interfaces that work for the people using the computers, this is where the high level, high value work is to be done.

The changes that Pegasystems are describing is not just an IT industry issue; these are changes that are happening across the workforce and in all sectors. For both managers and workers, it’s a time to refresh skillsets and understand where the value lies in what they do.

Many industries have products handmade by skilled tradesfolk become a thing of the past, it now appears the time has come for the IT industry’s craftsmen and women.

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