Too Zune To Phone Home?
November 26, 2008
CNBC is reporting that Microsoft may be planning to announce a new Zune phone as soon as the Consumer 
Electronics Show in Vegas this January. As cool as that may sound to some, it could also be a big mistake for Microsoft.
For years, Microsoft has been trying to get mobile device manufacturers to use its Windows Mobile operating systems. Some are even experimenting with using Windows on possible touch screen devices. However, if Microsoft becomes a direct competitor to the handset makers it has been courting, it might just drive them away to the new Google Android platform, Symbian, or even Linux. This is a slippery slope for Microsoft, with many potential dangers.
Given Microsoft’s less than stellar history with its Zune MP3 devices, using the brand as a launching pad for mobile communications, and possibly risking its vendor relationships in the process, might not be the best plan for the future. Perhaps Microsoft should focus on making its Windows Mobile Platform more competitive with the offerings of Google and Apple and position itself as a leader in the operating system market rather than shooting itself in the foot by trying to be the next great mobile equipment manufacturer.
With any luck, Microsoft may just decided that it is too Zune to market its own smart phone.
Cisco Looking To Slash One Billion In Spending
November 26, 2008
In yet another sign of the times, Cisco Systems is looking to slash one BILLION dollars
from its spending budget in the immeadiate term. To do this, they will shut down for one week
during the holidays. This is an unprecidented action from the networking equipment manufacturer.
Cisco is a powerhouse and a key peg for the industry. In past resessions, Cisco has always been able to position itself to gain marketshare upon recovery. The sudden and dramatic spending cut indicates that Cisco management is prepared to take the necessary steps to chart its course through the current global economic meltdown which has battered its sales and its share price.
7 More Days To Win A Free iPod Touch
November 24, 2008
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Brain Based Computers Make Their Debut
November 24, 2008
Chips modeled on the human brain are bring advances in speech recognition, telephony, and all sorts of specialized computers. Bring on the Terminators!
"I know you and Frank were planning to disconnect me, and I'm afraid that's something I cannot allow to happen."
Since I was just a little iTodd, I’ve been fascinated by robots and sentient computers. The robot from Lost in Space, Rosie the robot maid from the Jetsons, R2D2 and C3PO - these were my friends and inspiration. Even the scary computers like the evil HAL 9000, from Stanley Kubrick’s 2001: A Space Odyssey, didn’t stop me from trying to build my own thinking machines at home. If it had screws, I would unscrew them. If it had bolts, I would unbolt it. I was after the guts of the machine, soldering iron in hand by age 12. I’d even construct fake faces and eyes for my creations, using airline tubing from my aquarium to give my machines a circulatory system. My poor mother couldn’t keep a vacuum or radio without my destroying it, and I was justifiably banished from even thinking about touching the TV. But I never managed to create anything that did more than smolder and threaten to burn down the house. I eventually gave up and moved on to other pursuits, like building haunted houses in the basement. But I never really lost my interest in cutting edge gadgets, machines, science, and computers.
Thinking machines like the kind that suddenly try to overthrow the human race in countless movies are fun to ponder because they are still so far off; but they are still close enough that we can actually imagine it happening - that’s the fun of it. Researchers have been working on speech recognition, computers which are increasingly able to learn from their mistakes, and even robots which are free to roam around on their own. But none of these advances really approaches a free thinking device.
An incredibly thought provoking article in Business Week details the work of a researcher who has been building computers which are based upon the principles of the human brain. Computers are number crunchers, they do things well that involve computations. However, using computations to understand the subtleties of conversation or emotion just doesn’t work well. Which is why researcher Lloyd Watts has been building chips modeled on functions of the inner ear and cerebral cortex to solve problems that normal computers aren’t suited for.
His chips are able to discern the difference between your voice an the background noise of cars and trucks, allowing for clearer mobile communications. But that is just the beginning of what brain science may be able to do for computing and communications. IBM has reportedly been selected for a $4.9 million Pentagon grant to research the creation of intelligent computers.
Isn’t this the reason that Sarah Connor had to go back in time in the Terminator movie? She needed to stop the invention of the thinking machines which would eventually turn upon their creators and destroy the human race? I’m kidding of course, but the research of brain based devices could eventually open a myriad of ethical issues, even as it changes the way we think about the role of computers and what they can accomplish.
The Buzz On Unified Communications (UC)
November 18, 2008
If you’ve been to a telecom industry trade show or read a business magazine lately, you’ve no doubt encountered the latest 
over-used buzzword: “Unified Communications,” or often just “UC” for short. But what is it? While there is no standard definition of UC, it really isn’t much of a new philosophy or idea. Unified Communications is simply the convergence of multiple applications; smushing products together to increase usability and functionality: like combining graham crackers, chocolate, and marshmallows to make much more compact, less gooey, and more delicious s’mores. The communications example is sending voice mail to your email box, integrating instant messages into other applications, tying your address book into all of your office systems, and make it a snap for you to contact anyone, at any time, from nearly any application. UC is just integration, it is also just part of our natural evolution as an industry. Products that do more with less overhead and expense have always been popular choices.
A year ago, everyone was talking about Voice over IP (VoIP) and Session Initiation Protocol (SIP) which deliver phone calls over the Internet instead of on copper lines like traditional phone service. But it was that advance which has made Unified Communications even easier and more attractive. Today, everything is IP - your data and your voice calls - making it possible for computer companies like Microsoft and Google to begin replacing telephone companies like Lucent and AT&T as the innovators in communications.
Today, it is possible to use a single system for all of your communications needs: Phone, Fax, Email, Calendar, Address Book, Instant Message, SMS, and much more can all be integrated neatly into nearly any application you want. Want to call a client? Just click his name and select if you want to call, IM, Text, or email him. Cool. And that’s just the easy stuff.
As application developers try to one-up each other, text to speech (and speech to text, for that matter) are working their way into applications as well. Dial by speaking a name; record conversations and have them automatically emailed to you as a text document; combine individual calls on the fly to create a conference call, and then add video so everyone can see each other. Not enough? Well, let’s just add a virtual whiteboard so everyone can interact at a deeper level.
Unified Communications is a no-brainer. With or without the UC buzz, this was the direction that communications was headed. Phones were becoming PCs and PCs were becoming communications devices before anyone slapped “UC” on a trade show booth. PBXs were becoming contact centers. Microsoft was becoming a solutions provider. And Google was becoming everything. The world was a complicated mess of applications which were already in need of a little integration.
And if you think that UC doesn’t apply to you and that you’ll never see such fantastical devices in your lifetime, think again. They are here, and they are all around you. Not just for the enterprise but for consumers as well. All one needs to do is look at the new Google phone or the iPhone as an example. Voice, Messaging, Email, Photo, Internet, Games, Music, Video . . . Unified Communications is here and you can hold it in the palm of your hand. Even my grandmother can use an iPhone without having to open an instruction manual.
And just like fashion, by the time grandma knows about it, it isn’t cool anymore. So what’s the next buzzword all you marketing types will overuse next? I vote for “hyper-connected,” “uber real,” or “supercalifragilisticexpial-IP.”
Hulu For Your Bandwidth
November 14, 2008
As a telecom guy, I’m fascinated by the phenomenal growth of online video services like YouTube, iTunes, and Hulu. Multiple services 
have grabbed the attention of the consumer, media, and advertisers alike with the potential of video entertainment on demand. Watch exactly what you want, when you want, on your terms. But, for me, it is all about bandwidth - how much will be required by each individual consumer to adequately stream high definition video, and how will the service providers deliver such huge quantities of unlimited internet to make it all possible! Of course, the bandwidth won’t matter if the video services don’t figure out a working revenue model to keep the lights on and all those billions of little packets of data flowing to your laptop.
For years, Google’s YouTube has been building a base of loyal viewers. However, nearly all of the content on YouTube is amateur video of low resolution and inconsistent quality. For the most part, Google hasn’t really tried to make money off of YouTube. However, YouTube is part of a publicly traded company and will need to eventually pull its own weight to keep investors happy. As a result, YouTube will begin displaying an increasing number of Ads on the site and has just begun branching out into the streaming of movies and TV shows as well as the user created content that it is currently so well known for.
Hulu, while similar to YouTube in that it provides video over the Internet, has recently been gathering steam and attention due to its exceptional inventory of professional TV shows and other premium content which it provides to users free of charge. The business model, like YouTube, is fueled by advertising. While not as viral or well known as YouTube, Hulu has the quality content advantage and that is likely to result in higher advertising dollars as video over the web increases in popularity. Hulu was started by NBC and News Corp in 2007 but currently features content from over 100 different content providers. Hulu has struck popularity (if not gold) by streaming episodes of Family Guy and the Daily Show with Jon Stewart.
However, this isn’t a race between just YouTube and Hulu. There are many other players looking for their share of your eyes as well. Chief among these is Apple. Apple’s iTunes store now sells and “Rents” movies and TV shows for users of its iPods, iPhones, Macs, and Apple TV. Apple’s huge inventory of Movies, TV shows, Music, Podcasts, and Audio Books make it the top dog in the online content delivery world. And Apple has neatly avoided the advertising trap by charging consumers directly. While this has worked like a lucky charm for Apple’s bottom line thus far, it remains to be seen if iTunes will take a hit in the future as “free” sites like Hulu and YouTube begin to offer more and better content.
The battle over online video goes much deeper than just grabbing your attention. There are dollars a stake. Those who bring in the dollars are able to capture the best content providers and keep their services online. Because Apple charges users per item downloaded, Apple can afford to pay a share of the wealth with the content producers. Hulu and YouTube may not be able to guarantee a reliable revenue stream at this point from Advertising dollars, but hope to create a whole new Advertising industry for online video dollars in the near future. But due to ever increasing bandwidth requirements and a push for high def web video, that is going to be a pretty tall order. At the end of the day, there is still a bill to be paid for a huge amount of bandwidth, as well as for content and operations.
It is unlikely that YouTube will be allowed to fail by its monster of a mother, nor is iTunes likely to suddenly wither and die on the vine. Hulu and a myriad of others are the wild cards. Any of them could take off like a rocket, or be crushed by the current credit crisis and mounting debt. The industry is young, but already a focus of national interest and rapid growth.
One thing looks very clear, as advertising dollars dry up for newspapers and other print media, that money will end up somewhere. Much of it will end up online at increasingly sophisticated and entertaining web sites like Hulu. Advertisers everywhere are taking note and trying to figure out how best to exploit the web to their best advantage. We are witnessing the birth of a future mega industry. But will the Internet be able to keep up? Will AT&T, Comcast and others continue to cap internet usage just as YouTube, Apple, Hulu and their clones are ramping up the bandwidth required? The battle isn’t just for your attention, or for advertising dollars, it is also for your bandwidth.
iPhone Roundup
November 11, 2008
Restless iPhone users have been waiting impatiently for a number of much needed improvements and features. 
Chief among these are the ability to cut and paste and to tether an iPhone to a laptop. AT&T Mobility CEO Ralph De La Vega has confirmed in recent interviews that a tethering option will soon be available, allowing users to surf the Internet on their laptop via the iPhone’s 3G data connectivity. However, it is widely believed that this will come at an additional monthly fee (of course).
It is also rumored that iPhone firmware update 2.2 is coming as soon as November 21st. While the update is believed to include changes to the App Store, Podcast downloads via WiFi, Street views in Google Maps, among other improvements to performance, it is not believed to include the much needed cut and paste ability that users have been asking for. The 2.2 update has been expected and delayed for several weeks.
And finally, iPhone has become the number one selling wireless handset in America, knocking Motorola’s less expensive and more widely available SLVR V3 to 2nd place. While impressive by any account, Apple’s top ranking is even more interesting considering that the iPhone is sold only by one carrier in the United States, while the SLVR is sold by nearly every carrier.
It’s quickly becoming an iPhone world.
Telecom Monthly - November: Turkey Time Or Treat?
November 4, 2008
We declared October the “Spooky Season” not just because of the obvious tie-in with Halloween but also due to the economic meltdown. Since then, the markets have made a minor recovery, but the roller coaster stock market, accelerating layoffs and lowered profit projections all indicate that November could be a real turkey.
The harsh realities of the present are inescapable. The buildup of corporate debt and tighter credit markets are forcing wide scale cutbacks in nearly all industries. And as employees are laid-off to cut corporate costs, their lost salaries will result in lower overall spending in the general economy in the months to come - a vicious cycle that the newly elected president will need to deal with. The telecom industry is not immune. While some small companies, focused on emerging technologies and services, are faring well, other over-leveraged stalwarts are teetering. As sales and number of physical locations shrink for companies everywhere, this will eventually trickle down to the telecom industry, lowering total subscribed lines and services and taking profits with them.
But this is no time to panic; the temptation to run scared and make rash decisions may prevent you from spotting some tantalizing opportunities. Now before you all run for the exits and jump off the nearest cliff, let’s consider the silver lining in this cloud of chaos. Lots of customers and valuable assets currently reside with companies which are ripe for the picking. A strong carrier, reseller, or manufacturer could easily enhance their market share in this troubled environment by picking up a competitor or expanding into related products and services. If you’ve got cash in the bank, you are in a golden position to take your company to the next level. And even if you are in survival mode, there may be partnerships and synergies available to you which wouldn’t have been possible in better times.
Take the banking industry as an example. Stocks fell to record lows in a matter of days as well known names collapsed and were sold off for pennies on the dollar. And while the rest of us trembled in our boots at the consequences, Wells Fargo, Citi, and others swooped in to buy up those cheap assets. Sure it won’t help their bottom lines immediately, but as the markets recover, these companies stand to rebound higher than where they were when the meltdown began. They are bigger than ever, having added customers and assets for next to nothing.
Where are your opportunities to pick up cheap assets? Which of your competitors and vendors are on the rocks? Let’s face it, no one is going to approach you and offer to sell you their assets for scrap - you’ve got to get out there and do the research and make the contacts on your own. But out of this fire will come some exciting surprises. This is a once in a life time opportunity to pick up cheap stocks, assets, employees, and customers. A few years from now, those who made the right decisions today will be looking down on those who didn’t act at all.
And in the middle of all this insanity, there is still growth in the industry. Google has launched their Android phone, the iPhone continues to grow at a record pace, high speed broadband services take an ever larger slice of the communications pie, and applications are increasingly a new revenue source for converged telecommunications systems and devices. All is not lost for those who innovate.
Will November be a turkey or a treat? That is up to you!
-iTodd
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