G1 Android Already Sold Out

October 7, 2008

Two weeks ago today (September 23, 2008) Google officially announced & showed off the new HTC G1, aka the “Google Phone.” The G1 will run Google’s much anticipated Android mobile operating system & T-Mobile will provide service on their GSM network.

In my opinion, the G1 will be this first real competitor of Apple’s iPhone. One week following Google’s announcement & before the first phone had even shipped, T-Mobile announced that they had sold out of the G1. The demand for the G1 has far exceeded both Google’s & T-Mobile’s expectations. In an effort to respond to consumer demand, T-Mobile decided last week to triple the number of G1 mobile devices available for sale through pre-orders until October 22nd.

The excitement surrounding the release of the G1 Android goes beyond the fact that T-Mobile has sold out of their initial inventory. This is excitement can be seen through the numerous developments & announcements surrounding Android to include: Visa developing a mobile payment solution on Android, T-Mobile removing their 1GB data cap, & Amazon preloading their MP3 digital music store on the G1.

The future potential of Google’s Android operating system is almost limitless. HTC is predicting up to 2 million Android phones will be sold by end of 2009. Google is also making waves with mobile carriers with their hopes to free the mobile device from the mobile carrier with a concept they call “Instant Bid.” Expectations remain high & I like many others believe that Google will deliver & expose the necessary technologies for others to develop the next generation of mobile solutions.

Brian Kirk
VP Business Development
NetworkIP & Jaduka

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Apple Shifts the Mobile Industry

September 23, 2008

I was reviewing my notes from last week’s Mobilize conference & I found myself asking where was Apple? This 1-day conference featured eight panel discussions with talent from the major mobile network providers, the mobile device manufactures, the mobile operating systems, & a variety of companies that specialized in mobile application development & marketing. The panel discussions consisted of topics ranging from the development of mobile applications with Location Based Services (LBS), to the hurdles associated with mobile carriers, to investment strategies in the mobile market space. Regardless of panel topic, I noted a recurring theme throughout. Not one panel discussion could avoid bringing up Apple & what they had done with the iPhone. It felt at times like the entire conference consisted of people asking how do we keep up with Apple, or is Apple’s approach the right approach to take, or what will Apple do next?

I scanned the list of conference attendees that was handed out at the beginning of the conference & there wasn’t a single person in attendance from Apple; nor was anyone from Apple participating in any of the panel discussions or keynote presentations given that day.

So here I sat in a room full of very talented people from some very reputable & large companies who could not help but analyze Apple & what Apple has done to the mobile market.

I find myself asking why Apple would have been there. Apple has set the standard. They’ve raised the bar with mobile devices & mobile application development & distribution. As a result, we find ourselves trying to catch up to Apple. While we sit here discussing how Apple approached the mobile market, they continue to innovate. I’m sure from time to time that they find themselves at conferences looking for answers to questions & to get a feel for a market. Of course they appear to do their own research in many other ways. Apple doesn’t wait for an industry to shift, they shift an industry.

Can other mobile device manufactures & mobile operating systems surpass Apple? Is today’s release of Google’s Android operating system on HTC’s G1 an example of this or will Apple continue to shape the mobile industry?

Brian Kirk
VP Business Development
NetworkIP & Jaduka


The Economics of Mobile Application Development

September 22, 2008

At last Thursday’s Mobilize conference the discussion started off with a round table focusing on “The Economics of (Mobile Application) Development.” At the end of this panel discussion which included talent from BlackBerry, the LiMo Foundation, Qualcomm, Adobe, & Windows Mobile the group concluded the following:

“That mobile applications will run primarily over the web versus being installed native to the device, applications will be available in a centralized area (like Apple’s App Store) versus a distributed model of distribution, most applications will be downloaded versus bundled with the device, mobile applications will be developed through businesses rather than through a consortium, & finally that applications will continue to be geared towards the consumer versus businesses.”

These predictions point to a couple of hurdles that in my opinion will continue to plague the mobile industry for many years to come.

The first hurdle is that there are far too many mobile operating systems & too few standards in this space. When a company or an application developer decides to develop a mobile application they are forced in most cases to pick a single operating system to use to develop their application because trying to keep up with the support & life-cycle of that application on 5+ mobile operating systems requires resources that many businesses & application developers simply don’t have to invest. As a result, businesses & application developers loose entire audiences because their application won’t be supported on a large majority of mobile devices running other mobile operating systems. Even with 5+ mobile operating systems; why can’t each mobile operating system adhere to some set of standards that would allow applications to seamlessly work across operating systems?

It is evident that device manufactures realize the control they’ll have when choosing a particular operating systems to run on their device. That is why there is such a race to gain market share now before the mobile market becomes even more saturated with additional mobile operating systems (note that Android from Google is being released this week). If these companies can’t work together on a set of standards for businesses & application developers to adhere to my hope is that we’ll see some device manufactures & mobile operating systems simply go away.

Secondly, mobile carriers still control too much of the equation. The mobile carriers have control of which devices they’ll allow on their network. They determine how the mobile applications will be distributed to the consumer; installed on the device prior to sale or forcing the consumer to download. The mobile carriers also control the costs associated with the network time (voice or data) that the application will require to use. All of these control factors make it very difficult for businesses & application developers to develop an application that is simple & affordable for the consumer to use.

While the mobile market is obviously exploding & “open” for growth, don’t be fooled to believe that there aren’t some significant hurdles for us to overcome in order to deliver a valuable solution to enterprises & consumers.

What is your opinion on these questions pertaining to the mobile market?

Applications will run: Native or Web?
Applications will be distributed: Centralized or Distributed?
Applications will be installed: Downloaded or Bundled?
Applications will be developed by: Businesses or Consortium?
Applications will be geared towards: Consumers or Businesses?

Brian Kirk
VP Business Development
NetworkIP & Jaduka


NetworkIP & Jaduka Attending Mobilize 2008

September 18, 2008

Early this morning Trevor Baca, VP of Software Engineering, Karthik Srinivasan, Director of Systems Engineering, & I jumped on planes headed for San Francisco to attend tomorrow’s Mobilize conference. This is the inaugural year for the Mobilize conference & with GigaOM behind this one it is sure to be a success & last for many years to come. This is an exciting time to be in the mobile space & we expect tomorrow’s conference will be just as stimulating & productive as it promotes to be.

The conference has pulled together thought leaders from Google, Nortel, Cisco, Motorolla, Sprint & many others involved in the mobile industry to cover topics that we’ve all been asking & that will enable us all to make informed decisions in this new market. The Mobilize conference also includes a launch pad session so companies like Cumulux, Fonemesh, Fonolo, Fusion Garage, Heysan, LuckyCal, MotionDSP, Pinch Media, placethings, Skyfire Labs, TuneWiki & Zecter can present their new mobile products.

Over the past few months we’ve been talking about how faster mobile data speeds (3G, 4G, & LTE) & open mobile operating systems (Apple, Symbian, & Google’s Android) are making this an exciting & opportunistic market for businesses & application engineers to develop new & innovative applications for the mobile space. As more companies & application engineers enter this space & find themselves supporting mobile consumers & mobile products they are realizing the need for faster, more robust, & more reliable transaction processing services. These companies & application engineers obviously understand the value of transaction processing services; however, they haven’t the time, the money, or the resources to develop them on their own. Their focus is where it should be; on their mobile products & services. So they rely on us & our proven experience in the transaction processing space to ensure their accounts & products are properly managed.

Our transaction processing services allow companies to manage all of their mobile consumer accounts & mobile products via simple API interfaces without having to invest any costs or resources to build a network, deploy hardware, ensure security standards, & manage complex databases. We do the heavy lifting so these companies & application engineers can focus on their existing mobile products, new mobile products, & most importantly their customers.

Brian Kirk
VP Business Development
NetworkIP & Jaduka


The Home Phone is No Longer a Necessity

July 22, 2008

Tomorrow AT&T will release its second-quarter earnings. It is projected that AT&T will fall short of their projections for this past quarter & many suspect that AT&T will lower expectations for 2008 as a whole.

AT&T, along with other major phone companies, has seen a significant decrease in landline services in Q2 of 2008. The Wall Street Journal reported yesterday that the phone companies used to be largely insulated from economic downturns because most consumers considered their home service a necessity. However, now that over 80% of Americans own cell phones, the home telephone isn’t the necessity that it used to be.

It is my opinion that many Americans realized long ago that the home phone wasn’t a necessity, however, we choose to avoid the hassle of calling up the phone company & turning off our service & then having to inform all of our family & friends that we now only use our mobile phone. Now that the price of gas is $4 plus dollars we are willing to accept these hassles & actually disconnect our home phone services.

The disconnecting of home phone services also points to a number of other realities. First, the wireless networks have improved such that we aren’t worried so much about poor quality during our phone calls. Two, the cost of mobile phone services has decreased significantly & the notion of domestic long distance no longer exists. Three, the mobile phone has become such an integral part of our daily lives that we always have it with us & it is no longer something that we only use when we are away from home.

As we see a decrease in home phone services I suspect we’ll see an increase in business for prepaid calling card providers. Regardless of how much better those mobile phone calling plans have gotten, it is still quite difficult to find a good international long distance rate for mobile phone calling plans. Prepaid calling cards offer a great alternative for consumers that are looking for a low cost & good quality international long distance plan. With many prepaid long distance services offering PINless* dialing features & auto-recharge options it has become more convenient for users to gravitate to this type of service. These services have become practically invisible to the consumers using them.

I suspect that over the next 5 years we will continue to see the number of home phones diminish. Not only will more Americans cancel their existing services, but younger generations won’t even bother having them installed. Mobile services will continue to expand & until mobile international calling plans improve the prepaid long distance businesses will prosper.

* PINless dialing is a convenient feature that allows you to register your phone number(s) at the time of purchase so that you can place long distance calls without having to dial a PIN.


I’m Not Waiting In Line for the 3G iPhone

July 10, 2008

It was a month ago today that Steve Jobs announced the release of the new 3G iPhonefrom Apple. There has been much anticipation, chatter, & speculation about this new phone & this Friday, July 11th, the wait will be over. Many Apple stores in the U.S. will open at 8AM in an effort to get ahead of the rush of orders for the new iPhone.

With the 3G iPhone retailing for $200 USD I have no doubt that the lines outside Apple stores will be worse than they were when the first generation iPhone was released over ago (June 29, 2007). I confess that I was one of many who stood in line for hours outside the Apple store waiting to get my hands on that first generation iPhone. I’m sure I’ll eventually give in & purchase the new 3G iPhone, however, I will not be one of the early adopters who gets one this Friday. While the Edge network from AT&T has its flaws, I’m not ready to invest $200 for the phone & an additional $10 a month (data plan on the 3G version is $30, not $20 dollars) for 3G access & GPS support.

I am however eager to download the new iPhone software & the many new applications that will be available for the iPhone. I think many existing first generation iPhone owners will follow my lead & simply take advantage of the new software & applications. Om Malik, of GigaOM, posted an interesting poll yesterdayasking who really is going to run out & purchase the new iPhone. The reaction was mixed of course. Some folks love it & can’t wait & others could care less. Regardless, it’s going to be a good day for Apple & Apple stock.

I do wonder if AT&T’s 3G network is ready for the additional traffic. Unfortunately we’ll just have to wait & see what happens on Friday.


Fireworks & the FreeRunner

July 7, 2008

This past Friday, July 4th, a many Americans celebrated our country’s independence. Typical July 4th activities in the U.S. include firing up the grill with burgers & dogs, heading out to the lake or pool, & shooting off fireworks when the sun goes down.

For those of us heavily involved in the open-source development community we were busy putting in our orders for the new Neo FreeRunner from OpenMoko which was finally released in the U.S. on Friday. Earlier this year we began prototyping some mobile applications using the Neo 1973 from OpenMoko. The Neo 1973 allowed us to get our feet wet with mobile phone application development as well as contribute back to the open-source community.

The OpenMoko phones manufactured by First Internaitonal Computer offer developers the unique ability to completely customize the software of a working GSM phone. While the current software isn’t quite ready for end-users, the new FreeRunner hardware adds Wi-Fi & extended battery life (something the Neo 1973 was severely lacking) to supplement the feature set of the Neo 1973 which includes GPS, bluetooth, USB networking & 2.5G GSM.

The new FreeRunner will begin shipping today & should arrive in our Austin office by end of week. Both our NetworkIP & Jaduka engineering teams are eager to begin working with it. The new FreeRunner & 3G iPhone all in the same week; we can hardly contain ourselves.