Tag Archives: Google

Powerful Microsoft investor wants MS to focus on Enterprise

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According to the Washington Post an influential investor is pushing for a new direction at Microsoft. His goal is to get Microsoft to ditch the consumer market and focus solely on enterprise. He wants the X-Box gone (likely sold to someone), Surface gone (either sold or killed), and their other non-enterprise solutions eliminated as well. I think that from a Financial person’s perspective these are something of an obvious option. X-box isn’t killing it in the market, they are expensive and take a while to recoup the cost of development and all that. The Surface hasn’t had great sales – although it’s hard to separate weak sales of the Surface from the abomination of Windows 8 that sold with the bulk of them initially (I’d bet they’d be solid devices with Android on them).

I think it’s important to remember why Microsoft is Microsoft. It’s not entirely because of Enterprise. It’s because Operating systems are difficult to learn and people don’t want to learn more than one if they can avoid it. Only recently have the bulk of people been fluently on two different operating system – Windows/Mac/(few on linux) & iOS/Android/Windows Mobile/Blackberry. The most common interaction would have to be Windows & iOS and/or Android and Mac & iOS.

The reason for strong enterprise Windows sales is because of the massive consumer base that Microsoft has managed to hold on to despite it’s best efforts. If most people had to learn multiple different operating systems between home and work it would increase their stress levels at work. The skills they learned at home wouldn’t transfer well. I think this is also the reason why enterprise is conservative in upgrading their Windows OS – essentially skipping every other one. XP/Seven because those are the products that seem to build a strong enough user base on the consumer side. Most techies don’t like Win 8, so that hurts sales to Mom and Dad or their friends. They’ll tell them to avoid a product or get them to go back to Win 7 over 8 if possible.

The battle for the next OS is going to be fought on tablets and phones, before it’s fought on laptops and desktops. I know there are some tech experts out there calling for the death of the tablet, however, I think it’s far more likely that there will be a convergence between laptops and tablets. Where a tablet can meet our core needs of our laptop.

The more powerful of the two Surface products (Pro) was just that type of product. It was able to do a lot of WINDOWS laptop stuff, but in the form factor of the tablet. Should have sold well, except it cost a ton for a tablet or under powered laptop. I think that this really is the consumer space people will work from. We really don’t need more space unless we’re gaming and then people will build a desk top or buy a console.

Consoles – the X-box isn’t just a console, it’s supposed to be a full multimedia PC replacing the need of a desktop. You pair the Surface Pro with an X-Box and you’ve got everything you need for your house. This is what Microsoft is envisioning. Everyone is still using Office on their Surface, Skyping on both X-Box and Surface, and everything is based on the familiar (sort of) Windows OS. Keeping it front and center.

Let’s say MS ditches the console and Surface. They’d have to license out Windows to run on tablets and wouldn’t have the ability to help shape those conversations. They are competing with 2 Rabid fan bases in mobile OSes, one that many companies are able to use for free (with some licensing fees to MS), Google is pushing to replace MS in netbooks and likely other environments – Chromebook and ChromeBox. All of these could threaten their dominance as the work station in enterprise. For the bulk of the work I do, I could probably do it on a tablet as long as I have a compatible office suite.

Furthermore, MS isn’t the only option in many of the enterprise spaces. They aren’t the only OS, Office Suite, or Enterprise service company (Dell, IBM, Accenture, SAP, etc…) it’s not a guarantee this process would work. Furthermore, people are already talking about an Android server for some activities. These are all threats to MS core business OS and Office Suits. Leaving the consumer space only opens them up to more threats as people will want to stay in a similar environment.

This is another example of the Innovator’s Dilemma and MS should look to use Lean to help solve their cash and process challenges. Both the Surface and X-Box are good products. They just need to figure out how to find the right market for the Surface.

Lenovo bought Motorola now what?

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Well, it’s complete, Lenovo has completed it’s assimilation of IBM’s x86 market and now has moved onto the mobile market in the US through buying Motorola Mobility. This move makes a lot of sense for both Lenovo and Google (as well as IBM). From the Innovator’s Dilemma perspective, we have a company that is focused on building produts at a good price with all sorts of efficiencies buying a much lower on the priority source of revenue from Google and IBM.

What else does this mean? Well, it’s likely that Lenovo will begin to experiment with unique products to take advantage of their full technology stack. They are one of the few companies that have successful lines of business in Laptop, Servers, and now Smartphones. They obviously will be quickly filling any gap they have in the tablet space – which they already have offerings. Now, they can take mature technologies from Motorola Mobility and implement them in their broader product portfolio. In the sale, Google kept most of the patents, but they are sharing the patents with Lenovo. This is a big deal for Lenovo as they can freely use those technologies with no cost which means they can experiment with those technologies in unique products.

For Google, it’s a good move because they don’t need to manage a legacy manufacturing and design firm that they never really integrated. This is especially true since they were partnering with other companies to develop their Nexus line up. It simply made no sense to hold on to a company like Motorola when you weren’t planning on truly using it. Plus, Google makes most of it’s money from ads still and from their ecosystem. They do better if there’s strong competition in their operating system ecosystem. In fact having Lenovo as a partner now will likely help them more than owning Motorola ever did.

Lenovo will be able to put more money into their smart phones and will likely offer unique products that mix their laptop capabilities and servers with the smart phones. What could we see? Well perhaps a fully docking phone/tablet that truly replaces a laptop and maybe even a desktop. With the small server capabilities they may even figure out how to mix those capabilities by selling a smart phone that can connect to a “personal server” that allows you to access more power and storage while on the go.

I’m excited to see stronger cometition for Samsung and Apple in Lenovo and look forward to interesting products from the company to compete and push the market in a new direction.

Samsung, the battle for tablets isn’t going to be over specs soon, get ready for Customer Service Wars

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I recently got a Samsung Galaxy Note 10.1 2014, in fact, I got it for Christmas as a present from my awesome wife. I plan on using the tablet as a replacement for my laptop as that’s on it’s last legs and I’m not quite ready to build a PC. I’ll be doing that for my gaming and other stuff, but in the mean time a tablet is going to fit my needs for blogging, watching streaming video, surfing the web, and even a lot of gaming. 

The thing about blogging, is that you really need a keyboard to be able to be efficient at writing. So, I bought a blue tooth keyboard so I can do my writing. Combined, this was a pretty sweet set up. When I was typing it worked pretty much perfectly, however, as I started to use my tablet more for this, I was having blue tooth issues, figured it out about 2 days later. So I talk to support after doing a lot of investigation myself, including reverting to factory settings, and eventually figured out that my blue tooth would drop whenever I switched applications. That’s clearly not acceptable as the tablet is designed for a user to have multiple windows open at the same time and multi-tasking. 

So, I contacted support and they requested that I send my tablet into to get fixed. I sent my tablet in on the 28th and I didn’t hear anything from Samsung until 1/8/2014 when the tablet was repaired. I still haven’t gotten my tablet back. Apparently the label to return the tablet to me was created on 1/11/2014 and still hasn’t shipped out 2 days later. 

Samsung should be concerned the long term impact on their business. I’m probably early as someone that will fully replace a laptop with a tablet, but still rather late to the tablet game as a consumer. Samsung is competing with both Amazon, Google, and Apple for best tablet. Amazon has a fantastic track record with customer service for the products they have full control over. Apple has really good support as well. Google, from my understanding, is also excellent. To this point Samsung has been able to rely on their cell phone providers to provide customer service for their devices, now it’s incumbent upon them to properly manage their customers when they have issues.

What I wanted as a customer in this case was pretty simple, clear expected delivery date to Samsung’s repair facility, clear report on the problem as well as how to deal with the problem if I ever have to do a factory reset, fast turn around time on sending my tablet back to me. At this point I’ve gone much longer without my table than with it.

I’ve had issues with Amazon’s products in the past, my Kindle broke while I was flying and it was well out of warranty. What happened with that, they told me if I paid $50 and sent them my broken Kindle they would replace it. In fact, they actually shipped me a new one and asked me to use that box to return my other one. This worked really well and allowed me to get my Kindle back faster and the customer reps made it very clear what was going on.

How Samsung could have made this better.

  1. Provide Tracking Number for my tablet to Samsung’s repair
  2. Failure analysis with a way of ensuring that I wouldn’t never have this problem again
  3. Shipping my tablet out the very next day from their repair facility to me. It’s been 5 days and the Tablet hasn’t shipped yet.
  4. More information on their service tracking website.

I’ve been extremely disappointed in this service experience. If this problem isn’t resolved, I’m going to be returning the product and likely will not return to the Samsung ecosystem in the future. The great product I bought has been pretty well tainted by their horrible customer service. 

Also, Samsung also asked me to review their service before I got my product back. Talk about tone deafness. Samsung needs to fix this otherwise they will not be able to compete especially with these extremely strong customer service companies in Google, Apple, and Amazon. Great products won’t matter because Laptops will be replaced with tablets and tablets need different levels of manufacturing support than laptops. 

Failure of DMCA and TPP is going to be worse

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It should come as no surprise to many of my readers that I’m not really a big fan of DMCA. I believe that this law hinders innovation in the arts and sciences. I you are interested in a very nuanced and well articulated argument against Copyright, I suggest you download Lawrence Lessig‘s book Code 2.0 – it’s a law book, but it’s free and interesting. However, I have written about this topic before if you’re like a bit of a synopsis.

The DMCA is a law that requires companies to help copyright holders manage and protect their copyrighted material. This results in something called a Take Down Notice, where the company that receives the take down notice must remove the offending material. In many cases the copyright holders are requiring companies like Google to create tools to allow them to automatically search for offending material.

Growing number of Take Down requests

Growing number of Take Down requests accessed 1/5/2014

For a growing company like Twitch.TV which streams live video game broadcasts and services several hundred thousand viewers at once, may cripple them in the future. According to a recent George Mason University study, the DMCA take down notice process has been a complete failure. The law was never intended to function in the manner that it has been.

The take down notice was designed as a stop gap measure and compromise between copyright holders and the new technologists on the web. The DMCA was passed in 1998, most of the internet that we know and love didn’t exist then. It was likely that only a few people had even started using Google when the law was passed, YouTube was nothing more than a pipe dream, Napster and sites like it were the major driving force for this law.

Over the past few years we’ve had several attempts to expand on the DMCA and make matters significantly more restrictive on the Internet. For example we had the SOPA/PIPA, CISPA laws that the internet killed with a blackout. The blackout is an example of what Rebecca MacKinnon argued in her book “Consent of the Networked” where law makers need to look at the interconnectedness of the world and how these laws reach beyond our boarders and impact the broader world.

Unfortunately, these types of laws aren’t dead and DMCA isn’t going away despite what GMU recommends. Currently TPP is working it’s way through the “Fast Track Process” (fast track essentially allows the President to enter into trade agreements powers not authorized by the Constitution) and if it is successful there are copyright provisions that are very damaging for both Copyright Law and Patents. The copyright provisions are stronger than DMCA, similar to SOPA, and would force all signers to follow the rule of the trade agreement over their own established laws, including the US. If you are interested in reading TPP here’s the full agreement for download at Wikileaks.

What can we do to prevent TPP from making our copyright lives worse? Well, it appears there’s limited things we can do. Of course you can contact your representatives, however, Darrel Issa was already refused to see the agreement. However, more interest from the general population can only be a good thing. We’re going to have elections this year in the US, so it’s a good idea to get people thinking about this trade agreement now and stop it before it’s ratified.

Startups are going to save us, relax everybody

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In typical Silicon Valley Breathlessness Forbes published an article by Victor W. Hwang arguing the fact the Startup movement isn’t about startups. He argues that it’s actually a movement to free people from the chains of our current economic system. I definitely don’t buy this. Most people start a company for one of two reasons, they find a problem that they have a better solution for than anything provided (or a novel solution) or to make money. Typically it’s a combination of the two. No company in existence is out there not to make money. Companies that aren’t profitable cannot stay in business for long unless you’re lucky and funded by people that thing you will eventually make them a lot of money.

An opinion piece in the NY Times from 1/2/2014 pretty much sums this fact up. You’re replaceable at a startup and likely even more so than any time in the  future of the company. It’s really easy to fire people when you have no money, especially if you are open and honest about how you go about letting people go.

Furthermore, if the startup movement was in fact about bettering the plight of people we wouldn’t be seeing the social stratification that we’re seeing in cities like San Francisco, ground zero for the startup movement. In SF some of the neo-techno-libertarian-elite are upset that they even see the poor people on their streets rather than out of the way like in cities like NYC (he issued an apology not unlike Tiger Wood’s for being a sex addict). Not only are these the people that are involved in the startup movement, but they are funding it. Yes, I know that this is only one person and on the other side you can point to Alexis Ohanian of Reddit fame, which really is doing a lot of social good.

In some ways the startup movement has made it easier for people to be cogs in the wheel. They work long hard hours, large companies like Facebook and Google push and push to get more for less. In many cases this can cause depression and the exact opposite of what the Startup movement is striving for. In fact, the goal of the Lean Startup is to make it extremely easy to ramp up new employees and ensure full coverage if something goes wrong. These companies and products are designed around the idea of building in quality rather than testing or patching it in. Of course, there’s a benefit to the employee in these cases too – they’re free to really explore new problems and create new things without needing to worry about reoccurring problems.

I do believe there are many startup founders are genuinely trying to change our society for the better, but it hasn’t been a frictionless process and will likely only get worse as we move forward. The Sharing Economy, for example, has come under fire from traditional companies, neighbors, politicians, and even members of the sharing economy. While in other cases, such as Zynga, we see companies that are essentially parasites that thrive through creating addicting games and clogging a platform with their notifications (those notifications stopped and Zynga basically died).

It’s important to be skeptical of statements that glorify any portion of our culture. The article that spurred me to write this has a similar tone as many of Thomas Freeman’s, of the NYTimes, articles, fully optimistic, but missing a broader portion of the population and the long term impact. We should be wary of these articles because we’ll end up believing that it’s more complicated to calculate a median value than an average. The startup movement is to help people start companies, some founders are dreamers, some truly try to change how work is done, but they most aren’t truly changing the world in amazing ways. We’ll be fine if reddit, AirBnB, or some other services vanishes. We were when Digg, Google Reader, Palm and any other influential company vanished.