Is NFC ready for prime time

We may well see both QR codes and NFC succeed eventually, but right now they are the classic case of a technological solution searching for a problem to solve.

One of ‘coming real soon’ technologies of our times is Near Field Communications (NFC), a short range radio service connecting suitably equipped electronic devices.

NFC has been tipped to arrive ‘real soon now’ for several years as mobile phone companies, banks and telcos fight to control the payments system.

The service hasn’t taken off for a number of reasons; it’s clunky to use, the technology itself isn’t consistently applied and many smartphones don’t have the feature, the most notable being the iPhone.

Most of the applications cited for NFC are contactless payment services where a customer can wave a phone to pay for things, a good example is this parking meter in San Francisco.

NFC-parking-meter-detail

On the other side of the Pacific, Google are running a campaign in Australia encouraging commuters to try the NFC features that are built into most Android phones.

IMG_4447

Unfortunately the technology doesn’t work, as the comments to this blog post indicate. The users’ problems illustrate why NFC is struggling; it’s clunky, unreliable and customers don’t understand it.

It’s notable the Google campaign includes a QR code, another technology that’s been pending for nearly a decade.

Both are doomed though while customers struggle to use them.

We may well see both QR codes and NFC succeed eventually, but right now they are the classic case of a technological solution searching for a problem to solve.

Becoming an all mobile executive

Salesforce CEO Marc Benioff says he’s gone completely mobile, will other executives follow?

“I don’t want to use a laptop again,” Marc Benioff told the closing Dreamforce 2013 customer Q&A. “The desktop remains the biggest security threat to corporations — it’s a nightmare. The PC and laptop we never designed to be connected to a network.”

Benioff was walking his talk in promoting his company’s Salesforce One mobile platform, claiming at the Dreamforce conference opening that he hadn’t used a PC or laptop or nine months as he’s moved over to tablet and smartphone apps.

That push to move the company and its customers onto mobile services was emphasised by Peter Coffee, Salesforce’s Vice President for Strategic Research.

“Your mobile device is no longer an accessory,” says Coffee. “It’s the first thing you reach for in the morning and it’s the last thing you touch at night.”

Salesforce’s push into into the post-PC market follows Google and Apple’s lead, much to the distress of Microsoft and its partners.

“We saw the phenomenal engineering work of Scott Forstall at Apple and the visionary work of the late, great Steve Jobs,”  Benioff told his cutomers at the final Dreamforce Q&A. “When we saw the iPhone we sat up and thought ‘wow, what are we going to do about this?'”

“This is a paradigm shift, we’re moving from the desktop world to the mobile phone world and then of course we saw the iPad world emerge and that amplified it.”

Salesforce’s impressions were shared by much of the business community as senior executives, board members and company founders quickly embraced the first version of the iPad, which on its own triggered the Bring Your Own Device (BYOD) trend in enterprise computing.

In a mobile age, Benioff now sees three key priorities for Salesforce; “we want to be feed first, we want to be mobile first and we want to be social first.”

Regardless of Benioff’s vision, not everyone will go mobile which is something that Peter Coffee acknowledges.

“The laptop will occasionally be used to author creative work like a presentation or to deal with something that needs a large screen like pipeline analysis,” says Coffee.

Marc Benioff though is adamant. “Honestly I don’t ever want to use a laptop again,” he told his audience.

It will be interesting to see how many business leaders follow him in abandoning their desktops and portable computers as the post-PC era of computing develops.

The end of HTML 5?

Does Salesforce’s move to native smartphone apps mean the end of mobile application standards?

One of the big debates in web design since the rise of smartphone apps has been the question of ‘going native’ or following web standards.

In an ideal world, all apps would follow the HTML web standards so designers would only have to create one app that would run on any device — a smartphone, tablet or PC — regardless of what type of software it was running.

However the HTML 5 standard has proved problematic as developers have found applications written in the language are slow with limited features, so the attraction of writing ‘native’ apps that are designed for each system remains strong as users get a faster, better experience.

The problem with that approach is that it results in having to design for different operating systems and various devices which is costly and adds complexity.

For the last two years at Dreamforce, Salesforce CEO Marc Benioff has trumpeted the advantages of the company’s HTML5 Touch product.

This year Benioff unveiled the company’s Salesforce One product — a suite of Application Program Interfaces (APIs) that simplifies building smartphone and web apps. At the media conference after the launch, Benioff even went as far to describe the once lauded Touch product as a “mistake”.

So Salesforce has abandoned HTML5, which is a blow for standard applications.

If others follow Salesforce, and it appears that is the trend, then we’ll increasingly see the smartphone industry dominated by iOS and Android as most companies lack the resources or commitment to develop for more than two platforms and their form factors.

Open standards have been one of the driving factors of the web’s success, it would be a shame if we saw the mobile market split into two warring camps reminiscent of the VHS and Beta video tape days.

Building tomorrow’s markets

As technology evolves, it gets harder to predict what customers will want in the future.

“If I’d asked my customers we’d have built a faster horse,” is a quotation often attributed, probably incorrectly, to Henry Ford.

The point of the quote is that asking today’s customers about tomorrow’s market is pretty pointless when new products change consumer behaviour.

Just as the farmer of 1906 had no inkling of how the motor car, truck and tractor would change their business, the cellphone user of 2006 had no idea of how the iPhone would change the way they used a phone and communicated with the world.

Which brings us to Nokia.

The Sami Consulting blog discusses how Nokia lost their lead in the cellphone business as the market migrated the Apple and later Android smartphones.

Nokia’s problem was they spoke to their customers about their existing mobile phone use rather than considered how the technology might evolve.

When the inventors of the touchscreen approached Nokia, the company carefully evaluated the technology, consulted their customers and decided it wouldn’t work for their products.

What does this story tell about foresight?  First, it shows that innovation creates futures that are fundamentally unpredictable. We do not have facts or data about things that do not exist yet.  When a mobile phone becomes an internet device with sensors, touch screens, and broadband access, it becomes a new thing.  If you ask your existing customers what they like, the answer will always be about incremental improvements.  When you ask about the future, the answer will always be about history.

In many ways Nokia were the beneficiaries of a transition effect, they took advantage of a brief period of technological change  and were caught flat footed when the technologies evolved further.

To be fair, it’s hard to see that change when you’re focused on incremental improvements.

The motor car turned out to define the Twentieth Century – even Henry Ford couldn’t have foreseen how the automobile would change society and the design of our communities.

Both the motor industry and smartphone industries are going through major change, particularly as the internet of everything sees the two technologies coming together.

One thing is for sure, how we use our phones and cars over the next fifty years will be very different to how we use them today.

Today marks a moment of reinvention

Regardless of what it means for the wider industry, Microsoft’s deal with Nokia means both companies have entered fundamentally different phases of their businesses.

In announcing the company will acquire Nokia’s mobile and devices business, Microsoft said “Today marks a moment of reinvention”.

This is certainly true, with the retirement of Steve Ballmer, Microsoft officially enters the post Bill Gates era and today’s announcement is an admission from Nokia that their moment as the world’s dominant mobile phone manufacturer is over.

What’s notable about the deal is what Microsoft doesn’t get — particularly Nokia’s maps service. While Microsoft gets a license to use Nokia’s mapping services, it leaves the Finnish company with a valuable asset and possibly leaves it as the only company capable of competing with Google in that market.

For Microsoft, acquiring the expertise of Nokia’s engineers shouldn’t be understated, although integrating 32,000 Nokia employees will test Microsoft’s management as this increases their workforce by a third.

Possibly the most fascinating part of Microsoft’s announcement though is the comment in the second paragraph of their media release.

Microsoft will draw upon its overseas cash resources to fund the transaction.

US technology companies have been struggling to deal with the massive profits they have accumulated offshore as part of their tax minimalisation strategy. What we may now be seeing is a wave of foreign takeovers as American companies start to reduce their offshore cash stashes without incurring domestic tax bills.

If that’s true, Microsoft’s agreement with Nokia may well indicate we’re about to see many more takeovers around the world .

Regardless of what it means for the wider industry, both Microsoft and Nokia have entered fundamentally different phases of their businesses.

Fighting in the sandbox

The walled gardens of the mobile phone industry aren’t good for users.

The current spat between Microsoft and Google over the Windows Phone YouTube app illustrates the value, and hindrance, of the internet’s walled gardens.

Google’s locking Microsoft Phone users out of YouTube shows the strength of these online empires and when coupled with control of the mobile phone platforms, as Google has with Android, it makes it hard for outsiders to compete.

In one respect, this is corporate karma coming back to bite Microsoft who ruthessly exploited their market position with Windows, MS-DOS and Office through the 1990s and early 2000s.

That doesn’t change the problems facing Microsoft Windows Phone users who want the same access to internet services enjoyed by Android and iPhone owners.

Being locked out of a service because of the product you choose to use is in many ways the antithesis of the internet and challenges the underpinnings of the online economy.

All internet and mobile phone users need to watch how this spat between Microsoft and Google develops, captive markets aren’t good for anyone.

Cranking up the phone wars

Can Apple recapture its mojo with the next iPhone?

According to All Things D, Apple will be announcing their next iPhone on September 10.

With Samsung and Android phones steadily chipping away at Apple’s market share, it’s an opportunity for the company to recapture some of the brand’s allure after the passing of Steve Jobs.

The market will be expecting a stunning announcement. Should the company disappoint, the pundits will be calling the end of Apple’s dominance and we can expect the firm’s share price can also expect to get further punished with it already down 35% from the $700 peak of a year ago.

What Apple’s announcement will do is trigger another round of the phone wars as we approach the Christmas buying season. It might be a good time to buy a phone.

Disrupting the GPS network

Spoofing GPS signals presents a real risk to many industries and businesses.

Another day, another technology security issues – this time The Economist reports the Global Positioning System can easily be hacked to alter the courses and positions of vehicles and equipment, something proved by University of Texas researchers taking control of a super yacht by setting up a false GPS signal.

Given the importance of the GPS, this is a significant problem. There’s no end of mischief that malicious individuals could get up to by distorting the signals in their neighbourhoods.

One idea that immediately came to mind on reading the story was how a cunning restaurant owner could make all the GPS units in the neighbourhood think they are sitting outside his business. Anybody using a smartphone app would think the nearest eating place was his, it would also fool systems like Local Measure that use geotagging as part of their service.

The risks though are greater than sneaky restaurant owners, the University of Texas researchers showed how a 65m, $80 million dollar ship can be tricked into sailing off course by ‘spoofing’ the real GPS signal.

With everything from emergency services’ tracking systems to smartphone and dog collars relying on GPS, the risks are huge.

It’s another reason why we need robust systems along with the critical thinking skills to know when the computer is wrong.

Can mobile networks build Myanmar’s economy?

Myanmar, or Burma, is emerging from being a backward economy, can mobile networks help the nation’s economic development?

Fifty years ago Myanmar, or Burma, was one of Asia’s most affluent nations, but a succession of poor governments have seen the country become one of the world’s poorest. Can mobile phone networks be part of Myanmar’s econmic recovery?

The potential economic impact of mobile communications in Myanmar is a report prepared by Deloitte Consulting for network equipment vendor Ericsson claiming that rolling out cellphone networks across the nation will create 90,000 jobs in the emerging economy.

Myanmar is starting from a low base with only 2% mobile penetration rates, compared to over 40% in Timor-Leste and Laos while the average across South-East Asia is over 100%.

Myanmar lags south east asia mobile penetration rates

To address this the Myanmar Post and Telecommunications Department is looking a splitting the existing phone monopoly into three or possibly four licenses.

Ericsson’s report looks at the economic effects of rolling out these networks and some of the opportunities for local entrepreneurs and communities.

The biggest employment effect identified in the Ericsson/Deloitte report is through the reseller networks with 50,000 of the 90,000 jobs created by new mobile services being in the sales channel.

What’s striking about that prediction is how it doesn’t look at the broader effects of modernising the country’s phone network. The report’s authors do mention they believe the overall benefits could boost the Burmese economy by over 9% in a best case scenario but don’t fully delve into where they believe that growth will come from.

myanmar-gdp-effects-of-mobile-networks

It can be expected there’ll be many more indirect benefits as Myanmar’s communications networks jump into the 21st Century, the report itself has a chapter citing various benefits mobile networks have delivered to countries as diverse as Kenya, Chile and Bhutan.

Particularly interesting with Myanmar’s development will be the Chinese influence in rolling out these networks – the PRC is already the biggest foreign investor in the country having largely ignored western sanctions on the military regime and it can be expected players like Huawei and China Mobile will be well positioned in bidding for licenses and contracts.

For local entrepreneurs the complex Burmese language is a natural opportunity for app developers and programmers to develop localised versions of successful applications, the lack of English and Chinese language skills among the population – another terrible neglect by successive governments – will hamstring Myanmar’s digital media export opportunities.

Probably the biggest risk to Myanmar’s success though is the role of the military who are expected to get one of those mobile licenses.

Burma’s terrible economic performance over the last fifty years has been largely due to the incompetence, greed and corruption of various military rulers and, while their continued influence in the nation’s economy may be necessary to placate them and their cronies, the legacy of these people may act as a break on a really open economy or fair markets.

For Myanmar, the opening of cell phone networks is great opportunity. Hopefully the vested interests that have held this nation back for so long will resist the temptation to further damage the country’s prospects.

Burmese landscape image by ZaNuDa through sxc.hu.

Dicing up the mobile web

A series of reports last week told how we use computers, tablets and smartphones is evolving. There are big consequences for all businesses.

Last week we had a series of reports on the changing web from Cisco, IBM and Ericsson along with Mary Meeker’s annual State Of The Internet presentation.

One thing all the reports agreed on was there is going to be a lot more data pushed around the net and the composition is changing as business and home users adapt to smartphones and tablet computers.

Cisco’s Visual Networking Index forecast online traffic would triple by 2017 while Ericsson’s Mobility Report predicts mobile internet traffic will grow twelve times by 2018.

What’s notable in those predictions is the amounts and types of data the different devices use. Cisco breaks down monthly traffic by device;

  • Smartphones 0.6 GB
  • Tablet computers 2.7 GB
  • Laptops and PCs 18.6 GB

In one way this isn’t surprising as the devices have differing uses and their form factors make it harder to consume more data. Cisco also points out that data consumption also varies with processor power. As PCs are the most powerful devices, it makes sense they would chew through more information.

Ericsson breaks down data use by application as well as device and that clearly shows the different ways we’re using these devices.

internet data traffic by mobile device

Notable in the graph is how file sharing is big on PCs but not on tablets or smartphones while email and social networking take up a bigger chunk of cellphone usage.

What’s also interesting in Ericsson’s predictions is how data traffic evolves. It’s notable that video is forecast to be the biggest driver of growth.

ericsson-by-data-traffic

Both Ericsson’s and Cisco’s predictions tie into Mary Meeker’s State Of The Internet presentation at the D11 Conference last week.

It’s worth watching Meeker’s presentation just for the way she packs over eighty slides into twenty minutes with a lot of information on how the economy is changing as the internet matures.

What all of these reports are telling us is that our society and economy are changing as these technologies mature. The business opportunities – and risks – are huge and there isn’t any industry that’s immune to these changes.

The Five Stages of abandoning a product

Microsoft show us how to kill a product with the slow abandonment of Windows 8

Killing a technology product is never a clean process, as Google well know. Microsoft show the way to deal with a failed project and we’re seeing their five stages of abandoning a product as they prepare to retire Windows 8.

The stages of Microsoft are abandoning a product are well known – the failure of Microsoft Vista is the best example, but not the only one.

As Microsoft smooths Window 8’s pillow and prepares for its imminent demise we can see the process at work.

Denial

At first the company denies there is a problem, the flashy advertising campaigns are boosted and the various ‘in the camp’ commentators get informal briefings from company evangelists to fuel their snarky columns about people getting Microsoft’s latest product all wrong.

This usually goes on for around six months until the market feedback that the product is dog becomes overwhelming – usually this happens at the same time the first reliable sales figures start appearing.

Anger

As the consensus in the broader community becomes settled that the new product isn’t good, the company’s tame commentators turn nasty and lash out at the critics for ‘misrepresenting’ the new product.

This is usually a touchy period for Microsoft and other vendors as they can’t risk being too aggressive but they have to allow their allies to both let off steam and try to recover the credibility they lost in hyping what’s clearly been a market failure.

Bargaining

Once it’s clear the perceived wisdom that the product isn’t very good isn’t going to be shaken, the vendor comes out with special offers and pricing changes to try and coax users over to the new service.

With Windows 8 Microsoft tried something unusual, rather than cutting prices, Microsoft announced they would increase the cost of Windows 8.

The idea was probably to panic people into buying the product and giving Microsoft a revenue and market share bounce for the quarter.

It didn’t work – the consensus that Windows 7 is a better product meant people stayed away.

Depression

As the realisation that pricing tweaks and promotional stunts won’t work sends the company, and its supporters, into a funk.

For experienced industry watchers, the silence around a product that’s been heavily hyped and defended for the previous year or two is a good indication that the next version is being accelerated.

Acceptance

Eventually the vendor accepts the product has failed and starts working on its own exit strategy – hopefully one that doesn’t see too many executives sacked.

With Microsoft’s this process starts with a quiet announcement that the replacement version of Windows is on the way, in this case Windows Blue.

At the same time, the tame commentators start talking about ‘leaks’ of the wonderful new system that is in the pipeline. Early beta versions of the new product start popping up in developers’ forums and file sharing sites.

Eventually you get stories like this one that appeared in The Verge yesterday – Windows Blue leaks online and we can be sure the Microsoft public relations machine has subtly moved onto the next version.

Vale Windows 8

So Windows 8 is coming to an early end. In one way this is a shame as it was a brave gamble by Steve Ballmer and his team to solve the ‘three screen’ problem.

Computer users today are using three or more screens or devices – a desktop, a smartphone and a TV or tablet computer.

Microsoft were hoping they could develop a system that unified all these platforms and gave users a common experience regardless of what they were using.

It appears to have failed, probably because the different devices don’t have the same user experience so a keyboard based system doesn’t work on a touchscreen while a touch based system sucks really badly on a desktop or laptop computer – which is Windows 8’s real problem.

Unrealistic expectations

Another problem for Microsoft were the unrealistic expectations that Window 8 would halt the slide of personal computer sales.

PC manufacturers have been baffled by the rise of smartphones and tablet computers – vendors like Dell, HP and Acer have miserably in moving into the new product lines and they hoped that Microsoft could help arrest their market declines.

This was asking too much of Windows 8 and was never really likely.

So the cycle begins again with Windows Blue, the question is whether it will be the last version of Windows as we move further in the post-PC era.

ABC Nightlife February 2013

For February’s ABC Nightlife segment Tony Delroy and I are looking at software prices, the new breed of smartphones for seniors and the future of the telco industry

Paul Wallbank joins Tony Delroy on ABC Nightife across Australia to discuss how technology affects your business and life. For February 2013 we’ll be looking at the software rip-off, smartphones for seniors and Telstra’s roadmap for the mobile economy.

The show will be available on all ABC Local stations and streamed online through the Nightlife website.

Some of the topics we’ll discuss include the following;

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 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.