Microsoft has a central market place for Windows Mobile applications in the making. It is the latest (and maybe the last) of the big smartphone platform makers to come forth with such a model. And – with a probably already somewhat reflexive jab to its Cupertino nemesis (yes, Mr Gates’ children are not allowed iPods), it vowed to be more open to outside software developers.
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So following the conflicting news about what the strategy for Windows Mobile would be, some learned folks followed up and quizzed Microsoft. So here‘s what they said:
Microsoft will be focusing on building out the quality of the Windows Mobile experience, investing more in working with its partners to ensure the best hardware-software integration. While this may result in fewer phone models, Microsoft will continue working with our partners to innovate on the Windows Mobile platform.
Microsoft is committed to continued innovation of the Windows Mobile platform. Our goal continues to be working together with you to deliver exciting experiences to end users. The implication in The New York Times that Microsoft will limit the number of Windows Mobile devices is not accurate. In an interview with the paper, Todd Peters stated that Microsoft would be focusing on building out the quality of the Windows Mobile experience, investing more in working with its partners to ensure the best hardware-software integration.
Last week during the frenzy that was CES, Microsoft put out two statements that I find slightly confusing. Statement no. 1 was the announcement from Steve Ballmer that more than 20 million Windows Mobile devices had been shipped in 2008. He went on to marvel
“about the momentum we have…We have delivered 11 different mobile phones that have each sold a million units each, and in the past year, we’ve brought to market over 30 new Windows Mobile phones, or more than any other mobile platform in the market”
“I’d rather have fewer devices and be more focused [as] we get better integration [between phone and operating system].”
Microsoft scored an important success with a recently announced a deal that will see its Flash competitor Silverlight (with the most Apple-esque logo ever issued in Redmond) installed on the mighty Nokia‘s s60 and – low-end – s40 devices (or multimedia terminals as the good folks from Finland like their posher phones to be called). Interestingly of course, Nokia also embeds Adobe‘s Flash Lite… Tasty!
Now, is Silverlight really this good? Or is it only another product the people from Microsoft thought they should have on their shelves (arguably not being too happy that Adobe carved out for itself a nice niche for some)? I don’t know and I won’t be able to answer that without embarrassing myself. So: the news tonight is simply that Nokia is a good catch for Microsoft. And, now, the weather…
One small piece of advice to MS though: choose your showcase sites carefully. The Yugoslav maker of one of them (I don’t really know what they’re doing) does not really offer the latest and greatest in web design and functionality…
It did not take too long to bring down the value of mobile music spearheads Musiwave from $130m to $50m. The former was the price Openwave paid for the French company in 2005, the latter is what Microsoft now splashed out to buy it from Openwave ($46m in cash and $4m in assumption of debt). And at this price, it looks like a rather good buy for the world’s largest software maker.
Microsoft has acquired what was an early leader in mobile music. Musiwave is a giant in mobile distribution of music content – everything from ringtones, ringbacks and full-track downloads to music recognition, etc. Whilst Microsoft will have seized access to a trusted carrier-grade database and provisioning environment as well as Musiwave’s extensive relationships with all players on the mobile music circuit – labels, carriers and device manufacturers. Now it will have to show that it can marry it to its own music-centered services, in particular around its Zunes device and service.
All in all, Microsoft seems to be a much more natural home to Musiwave than Openwave would seem to have been. Good luck to the tall guys in Musiwave!
BlackBerry maker Research in Motion (RIM) pushes into Windows Mobile reports Telephony Online. As it sets out to create a BlackBerry Virtual Machine, this would imply a move from a hardware-driven to a software-driven business model but RIM is playing this down: they say they will continue to build their Blackberry devices and merely react to market demand.
Analysts seem sceptical as loading the BlackBerry software onto a Windows-powered phone is apparently tougher than it sounds. They also claim that vendors may be reluctant to include it in their phone’s basic software stack, and carriers may be reluctant to support it.
And that seems logical: a few years ago there had not been any alternative, so everyone might have played along. However, now alternatives, most prominently from mighty MSFT itself (Microsoft ActiveSync), are here, and one wonders if it will be just as easy. Given Blackberry’s cult following and the wariness towards Microsoft’s dominance, one cannot help but wish for a powerful competitor. However, it might very well be that RIM fell for the old Apple mistake, i.e. trying to marry hardware and software for too long: once the real world has moved on and worked around proprietary systems (even if they are superior), there is no winning anymore.
It heats up but remains VERY fragmented: After Microsoft snatched up Massive and bought Screentonic, AOL now acquired Third Screen Media. Google has been invisible on this front but powers ahead with integrating many of its products onto mobile – and they (can) come with ads (see article and interview with their Director of Product Management, Deep Nishar, here). Yahoo! as well is getting its search products onto more and more carriers, a step to keep doors and screens open… Mighty Nokia announced its own service… Various carriers do it on their own (e.g. Sprint as per the report here). And then there’s a few first-generation “indies”, such as Greystripe and Actionality (indies for how long though?), Exit Games and IDG try the partnering approach – there is certainly a lot going on!
Is this all sensible or is it the silverbacks trying things out and some of the smaller players dressing up for a beauty parade and a big-buck exit by acquisition and/or running after the flavour of the month? AOL seems to think the former: their Chairman & CEO, Randy Falco said that “AOL is one of only four at-scale advertising businesses on the Internet, and the acquisition of Third Screen Media gives us a very strong position in the fast-growing mobile space. It also lets us offer advertisers a more complete set of solutions, from display advertising to search and now a superior set of mobile solutions.”
At the moment, the sector is all talk and little money. According to traditionally buoyant analysts Informa, 2006 saw $871m in ad revenue on the mobile platform (and they didn’t even tell what was comprised; I assume this includes SMS-based services which we can probably agree are pretty crude), others put it to half that (also see the overview on the fine GigaOM blog here). There is little doubt that the sector will grow exponentially but when, how and through which players is pretty much wide open.
Today, for MSFT, Google, Yahoo! et al, these acquisitions are largely insignificant as regards their impact on the P&L but they may well equip them with a much needed spearhead (and knowhow) in the new ad sector, mobile advertising.
If more and more players try to assert themselves, the question will arise which type of advertising model we will see: will it be syndication-driven as it is on the web or will you need to book your ads with every single media owner (as it is in print and TV). At the moment, even though one would/could argue that the mobile is merely a different iteration of online, it would seem as if they’re choosing the latter but then it is very early days.
The big issues are still somewhat unsolved as yet and they will arguably hinder quick implementation: white-listing of data services, so that the end user does not actually have to pay for the delivery of ads to his/her phone, is a big issue that will only be solved once data plans are truly open and not capped at [X] MB (as a few carriers now introduce, e.g. Orange). Many other issues, such as targeting users (relevance) and balancing ads (e.g. in-game; see interesting report here) need more robust solutions, too.
So at present I’d say: congrats to the likes of Massive, Third Screen, Screentonic, etc who have found a deep-pocketed corporate home and good luck and perseverance to all the others.