Thursday, March 17, 2011

Cloud-Based Apps Will Disrupt the Software Business, Open Some Doors for Service Providers

The emergence of mobile apps on smartphones and tablets is the front end of a broader shift of application architecture that someday will, with the growth of cloud computing, affect the way consumers and businesses buy and use software.

For today's communications or video service providers, it is possible the changes will create the opportunity for a new role within the application business, something those providers are keenly anxious to find.

It is possible, for example, that independent software providers (ISVs) will want to work with new partners as the sales model, revenue model and distribution channel change. Perhaps 'they will turn to players like the telcos, which provide billing engines for usage or transaction-based pricing,' says Forrester Research.

Features and Prices for the Next Wave of Smartphone Buyers

As smartphones become standard devices used by U.S. consumers, designers, retailers and manufacturers might have to rethink their assumptions about the target end user, and what those end users may prefer. Many devices possibly can be designed around the needs of the mainstream user segments that represent the bulk of the additional sales from this point forward.

On the other hand, the behavioral differences might be more a matter of degree than type.

Click on image for a larger view.

Perhaps newer adopters will use many smartphone apps less frequently than today's smartphone owners, but they will use them.

So it is possible that devices aimed at newer adopters will vary principally in price of the device and prices of monthly access plans, both lower than current smartphone users tend to pay. This implies that less-expensive devices will have fewer capabilities than more-expensive models. That might be more true of hardware features than software features. Front and rear-facing cameras might not be as prevalent. There might be less memory.

But the application capabilities should substantially be the same, if not identical to higher-priced devices, if only because most smartphone users will want to use the same apps as many current users do.

Wednesday, March 16, 2011

HP Mergers & Acquisitions: Who’s Next?

By design or by chance, some might say, HP is angling to become a complete supplier of end-to-end information technology infrastructure and business software.

Here's one take on what firms might be next for acquisition activity, and the discussion thread. I don't have an opinion, one way or the other. Do you?

Apple Got 29% of Smartphone Sales Revenue in 2010

While Apple trailed Nokia in 2010 smartphone volume, Apple dominated the market in revenue, and took 29 percent share of revenue, according to Strategy Analytics. The top three device suppliers—Apple, Nokia and RIM—generated 64 percent of the revenue in the smartphone market.

Apple had just 16 percent of smartphone market volume in 2010. But Apple claimed 29 percent revenue share. Nokia followed with 20 percent and RIM with 15 percent revenue share. Samsung got nine percent of smartphone market revenue.

FCC Members Say They Unanimously Favor USF, Carrier Compensation Reform

"When we voted unanimously to approve the USF/ICC Transformation NPRM last month, each of us made clear that we are committed to reforming the Universal Service Fund (USF) and the Intercarrier Compensation (ICC) system, and to doing so as soon as possible," all five commissioners say. "We must eliminate waste and inefficiency and modernize USF and ICC to bring the benefits of broadband to all Americans. We can’t afford to delay."

With the caveat that not everybody really wants reform, and that all attempts to reach a major reform have basically failed in recent decades, pressure seems to be mounting for fixing a system most observers would say is badly in need of reform. But that isn't universally supported by all participants in the market, it is quite safe to say.

Google Docs Blurs Line Between Document Collaboration and Email

Smartphones and Tablets Change Wi-Fi Usage Profile

Android, iPhone and iPad accounted for about 16.53 percent of total Wi-Fi connections studies by Meraki, in middle of March 2010. As of March 14, 2011, these three devices now account for about 33 percent of the total connections to network.

Wi-Fi used to be about connecting PCs. It now is shifting to include connecting phones and tablets.

% (3/14/2010)% (9/14/2010)% (3/14/2011)
Total Devices100.00%100.00%100.00%
iPhone15.96%21.88%23.53%
Android0.57%1.30%5.19%
iPad0.00%2.08%3.41%

San Francisco Wants to Tax Stock Options, and Has Statutory Authority Already

Few people are aware the San Francisco has had a tax provision in its municipal code since 2004 that requires companies to pay a payroll tax on gains from employee stock options, says Sarah Lacy of TechCrunch. No one pays it, she says, and San Francisco hasn’t enforced it to date, but companies are becoming increasingly agitated that the city may change that policy at any time.

San Francisco Bites the Hand that Feeds

Twitter and Zynga are threatening to relocate elsewhere if San Francisco imposes a new tax on stock options.

"San Francisco taxes startups like no other city in the world," says Michael Arrington of TechCrunch. Not only is there a 1.5 percent payroll tax, but the city also is trying to tax stock option gains. Some argue that level of taxation actually can chew up most of the money any startup might raise in an initial public offering.

Twitter, Zynga and other startups are threatening to leave the city unless the taxes are waived for a period of time. The stock option tax appears to be the biggest issue.

50% of Web Sales From Mobile in 2015

By 2015, companies will generate 50 percent of their Web sales using their social-media presence and mobile applications, according to Gartner analysts.

“By 2015, context will be as influential to mobile consumer services as search engines are to the Web and information about customers will no longer be limited to data stored in company-owned systems,” said Gene Alvarez, research vice president at Gartner. “Context information can be about identity, such as who you are and your calendar, environment, where you are and the device you use, process (things you do and what you allow and community), who is in your networks and who you communicate with. If used correctly, context information facilitates the move from e-commerce today to contextual commerce tomorrow.”

Tuesday, March 15, 2011

26% of Mobile Apps Get Used 11 or More Times

In a previous mobile application analytics study, Localytics found that while smartphone and tablet owners are very willing to give applications a try, 26 percent of the time they never use the same application again.

In its latest study, Localytics found that another 26 percent of people become very loyal, repeat customers, using a new application more than 10 times.

It is probably worth noting that both "loyalty" and "disinterest" have to be kept in some perspective. Some apps might intentionally be designed around a specific promotion or event, and might not be intended to have a long shelf life.

Some apps are games and users might tire of some games rather quickly. What the data seems to suggest is that a quarter or so of mobile apps are highly engaging or useful, another quarter are not, with half lying in between. But nearly half (48 percent get used three times or less), suggesting there also is a lot of experimentation going on.

read more here

Netflix to Create Original TV Series

Netflix apparently has won the right to a nre original series to be produced byMedia Rights Capital. The drama series "House of Cards" will be executive produced and directed by David Fincher and executive produced by, and starring, Kevin Spacey.

Netflix reprtedly got rights to the series by offering a relatively unusual commitment of two seasons, or 26 episodes. Given that the price tag for a high-end drama is in the $4 million to $6 million an episode range and that a launch of a big original series commands tens of millions of dollars for promotion, the deal is believed involve an investment by Netflix of more than $100 million.

Such a move is traditional for premium cable networks trying to increase value and add uniqueness to their services, and Netflix clearly is aware that unique content not available elsewhere will be a draw for its streaming service and subscriptions.

Maybe 7% of People Use Twitter, 92% Know of It

If people aren't using Twitter at the moment, it certainly is not because they have never heard of it. According to Edison Research, more than 90 percent of people surveyed say they are aware of Twitter. twitter-numbers-1

Marissa Mayer, Google VP, Keynote at South by Southwest.

Marissa Mayer, Google VP, making her keynote address at South by Southwest. Mobile is clearly her focus, and a focus for Google.

Home Based Business Grows 11% in 2010

Home-based businesses grew an estimated 11 percent in 2010, analysts at AMI-Partners say, based in large part on people finding themselves laid off from larger enterprises, the research company says.

“What’s interesting is that 80% of those who became HBBs because of downsizing from a larger company,” says Jessica Efta, AMI-Partners manager. “They do not plan to return to the corporate workforce."

That should have implications for sales of products and services to small business customers, since the number of such entities has grown significantly over the past year.

Is Private Equity "Good" for the Housing Market?

Even many who support allowing market forces to work might question whether private equity involvement in the U.S. housing market “has bee...