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WHAT? … Windows Live Spaces SaaS moving to WordPress.com SaaS? … It is part of a NEW strategy with Windows Live Essentials 2011 released now!

The news from Microsoft: WordPress.com and Windows Live partnering together and providing an upgrade for 30 million Windows Live Spaces customers [Sept 27]

Then Paul Kim, the VP of user growth from WordPress.com: Welcome Windows Live Spaces Bloggers [Sept 27]

Then a 3d party correction from the web: Microsoft: Windows Live Spaces already dead, WordPress.com will only get 1% of 30M users [Sept 30] which could be much understated as noted by Paul Kim’s response in the end:

Paul Kim, Automattic’s vice president of user growth, responded: “We don’t have an exact estimate for how many Spaces bloggers will move over to WordPress.com in the next 6 months, but in the first 48 hours we’ve completed close to 50,000 migrations which is very promising.” That number is impressive enough. Real measure will be the next 48 hours or 48 days.

There was a real surge in posting activity on wordpress.com. After 5 days the graph showed the following:

As you could see from the numbers there were approximately three times as many additional postings in the last 3 days of the first 5 days period, than in the first two. That quite probably would mean ~150,000 additional migrations giving the total number of migrations to ~200,000 already in the first 5 days.

So the 1% of 30 million Windows Live Spaces customers could indeed be an understatement, even a great one. Would be interesting indeed to see the numbers in the coming months. Microsoft PR meanwhile made a refinement by saying that those 30 million include the viewers as well, while the number of authors is “just” 7 million.

If the final number of migrated blogs will be in the range of several millions than this will indeed be a huge gain for the WordPress.com. The current number of blogs on that site is 13.9 million, so an increase of 10% to 30% for nothing would indeed be a great win for them.

But what is the win for Microsoft? Their announcement is giving the following reason:

WordPress powers over 8.5% of the web, is used on over 26 million sites, and WordPress.com is seen by over 250 million people every month. Not only that, Automattic is a company filled with great people focused on improving blogging experiences. So rather than having Windows Live invest in a competing blogging service, we decided the best thing we could do for our customers was to give them a great blogging solution through WordPress.com.

The Why is Microsoft giving away web traffic and abandoning users? [Sept 28] question is answered by Tim Anderson as:

Part of the reason may be that blogging itself has changed. The original concept of an online diary or “web log” has fractured, with much of the trivia that might once have been blogged now being expressed on Facebook or Twitter. At the other end, blog engines like WordPress have evolved into capable content management systems. Many blogs are just convenient tools to author web sites.

Microsoft gives up on Live Spaces: blogs to be shifted to WordPress.com [Sept 28] on the guardian.co.uk has a similar reasoning:

You’ve got six months before it disappears into the great Bit Bucket where Geocities has gone. …

Following the news that Vox is closing (on 30 September), and that its parent Six Apart (which created Movable Type) is joining with VideoEgg to create a new company called Say Media, one has to think that the pool of hosted blogging platforms is shrinking rather rapidly. Atthis rate, pretty soon it’s only going to be Blogger and WordPress.

And if that’s what it comes down to, you’d have to say that WordPress has the edge. It’s being taken up by the British government, even for non-blogging websites, where it acts as an effective content management system.

That though may overlook the emergence of “superfast blog” systems such as Tumblr, which strip away a lot of the stuff on the outside – which can make blog upkeep complicated or tedious.

Even so, it’s not clear from here where blogging, as a separate activity, is really going. I still have the sense – as I said last year – that the long tail of blogging is dying. Microsoft’s capitulation over Live Spaces seems an acknowledgement of that (its previous post, linked in that quote above, notes how much of a problem spam blogs and comment spam have been; indeed, when I used to trawl blogs for Technology content, Live Spaces blogs were notorious for being pure splogs or copy/paste jobs).

WordPress.com has done a better job keeping the spam out. The question now is whether it is building its business on top of an iceberg in a warming sea – or on dry land.

And indeed quoting from the referred The long tail of blogging is dying [June 24, 2009] post on the guardian.co.uk (emphasis is mine):

But recently – over the past six months – I’ve noticed a new trend: fewer blogs with links, and fewer with any contextual comment. (I’m defining a blog here as an individual site, whether on Blogger or WordPress or an individual domain, with regular entries.) Some weeks, apart from the splogs, there would be hardly anything. I didn’t think we’d suddenly become dull. Nor was it for want of searching: mining for blog comments, I use Icerocket.com. Technorati.com and Google’s Blogsearch.

Where is everybody? Anecdotally and experimentally, they’ve all gone to Facebook, and especially Twitter. At least with Twitter, one can search for comments via backtweets.com – though it’s still quite rare for people to make a comment on a piece in a tweet; more usually it’s a “retweet”, echoing the headline. The New York Times also noticed this trend, with a piece on 9 June about “Blogs Falling In An Empty Forest“, which pointed to Technorati’s 2008 survey of the state of the blogosphere, which found that only 7.4m out of the 133m blogs it tracks had been updated in the past 120 days. As the New York Times put it, “that translates to 95% of blogs being essentially abandoned”.

I see it: NetNewsWire, my RSS feed reader, has nearly 500 feeds. When one of them hasn’t been updated for 60 days, it turns brown, like a plant dying for lack of water. More and more of the feeds I follow are turning brown. Why? Because blogging isn’t easy. More precisely, other things are easier – and it’s to easier things that people are turning. Facebook’s success is built on the ease of doing everything in one place. (Search tools can’t index it to see who’s talking about what, which may be a benefit or a failing.) Twitter offers instant content and reaction. Writing a blog post is a lot harder than posting a status update, putting a funny link on someone’s Wall, or tweeting. People are still reading blogs, and other content. But for the creation of amateur content, their heyday for the wider population has, I think, already passed. The short head of blogging thrives. Its long tail, though, has lapsed into desuetude.

It is important to realize that Microsoft didn’t get WordPress.com hosting in exchange for this migration. Matt Mullenweg made this quite clear in his last year’s post of WordPress and Windows Azure [Nov 29, 2009]:

Are you moving WordPress.com to Azure?
No. WordPress.com, which is Automattic’s hosted blogging service, is going to stay on its existing infrastructure. Martin Cron from the Cheezburger Network launched a new blog Oddly Specific on Azure, which some people confused with Automattic.

Do you use Azure at all?
Yes, we’ve been testing out their blob storage as an alternative to Amazon S3 and Rackspace Cloudfiles. We don’t currently use it in production.

And nothing has changed since then. The Microsoft: Windows Live Spaces already dead, WordPress.com will only get 1% of 30M users [Sept 30] post is mentioning the following:

As for platforms, Kim responded: “WordPress.com, where these migrating Spaces bloggers are moving to, runs on Linux, Apache, MySQL and PHP.” In a follow-up e-mail, Kim responded: “We don’t plan to host any of these blogs on Windows Azure at this time.”

So there should be some additional gains for Microsoft in order to pass millions of authors and tens of millions of readers, as well as the advertising revenue attached to that. And indeed there are:

1. Microsoft’s lost eight years online: More than $6 billion down the tubes [Aug 13] which particularly stating that:

In fiscal 2010 ending June 30, Microsoft reported an operating loss of $2.35 billion on revenue of $2.2 billion for its online services division .

… [see the previous financial year data to see how there is an accumulated loss of more than $6 billion] …

[ZDnet’s conclusion:] Microsoft has generated no return on its Internet ventures. It has been nearly a lost decade for Microsoft online. Looking at the profit and losses, you could make an argument that Microsoft would have been better off avoiding the Internet. Strategically, that argument is absolutely crazy. On the financial front, shareholders may just want a dividend. Things could change. Perhaps Microsoft’s online investment has helped it with the transition to cloud computing somehow. As things stand today, the Web is one big money pit for Microsoft.

So saving some money with Windows Live Spaces migration is an important point for Microsoft, although not the major one as we would see further on.

2. What Microsoft is abandoning now is the thing of the distant past. One can easily understand that when reading again a 3d party authorative source Why are 30 million Microsoft refugees headed to WordPress.com? [Sept 28] (emphasis is mine again):

Microsoft had very good founding concepts for MSN Spaces in 2004 that later overlapped with Facebook. At the time I first met with Microsoft managers about its online services strategy, I was an analyst with the now defunct JupiterResearch. Microsoft product managers outlined a clear and compelling strategy about people publishing content for whom they know. The Web is too big, they rightly asserted. What matters is contenting your stuff to people who would be most interested in it, like family, friends and coworkers. I liked what I heard.

Four years ago, I compared Six Apart’s Vox to Windows Live Spaces. In August 2006, I wrote at the now defunct Microsoft Monitor blog: “Features are highly comparable. Both services are free, ad supported and provide mechanisms for blogging, sharing photos, music or videos and connecting to a widening circle of friends and family.” Vox is shutting down in two days. Windows Live Spaces will be gone in six months. Is it coincidence that these two services with similar design goals and features are shutting down around the same time? I think not.

Facebook has fulfilled most of the same philosophical and development goals articulated by Microsoft managers six years ago. In early 2007, Facebook had about 30 million subscribers — about as many as Windows Live Spaces today. Facebook now claims more than 500 million subscribers, although some people dispute they are all active. Facebook users share photos, status updates and other content with a circle of friends, family and other known or accepted relationships, which is exactly what Microsoft wanted to accomplish with Spaces and connected Live services.

3. Microsoft has reworked all of its Internet and web related strategies. I’ve already reported a few of that (but will report much more very soon). See these posts on my blog:
Microsoft strengths for the PC -> cloud transition [June 27]
Mobile search SaaS battle [June 28]
Windows slates in the coming months? Not much seen yet [July 13]
Microsoft going multiplatform? [Sept 17]
Microsoft to lead standards compliance and implementation? … or how Microsoft is aiming to create a radically new Windows client platform via a set of “whole computer capable rich web” standards. [Sept 20]

4. Their on-line services strategy part has just been completely rearranged by Windows Live Essentials 2011 available for download now [Sept 30]. The key elements of this change are (only some of the emphasis is mine here):

Windows Live Essentials 2011 was designed and built to connect your PC to the services you use every day. We’re also announcing today that Dell will be the first global PC manufacturer to ship PCs with Windows Live Essentials 2011 and Windows 7 pre-installed, just in time for your holiday purchases. Many other PC manufacturers are also planning to make Windows Live Essentials 2011 available and we’ll continue to keep you updated as they start releasing.

… Windows Live Essentials 2011 was designed from the ground up for Windows 7. You can pin your applications to the taskbar and use jump lists to quickly get to common tasks. The ribbon brings common tasks to the front, letting you filter photos, change your font, or publish to your favorite services in a single click.

For parents, Windows Live Family Safety gives you the tools to help keep your kids safer on the Internet.

… If you have more than one PC, or a PC and a Mac, Windows Live Mesh helps you sync your files and folders across your PCs and connect back to your PC from virtually anywhere.

… Use Window Live Photo Gallery to share photos with your friends on SkyDrive [this is now the one Microsoft on-line service outside of Windows Live Essentials], Flickr, SmugMug, Facebook, and more.

… Create a video using Windows Live Movie Maker and instantly publish it to YouTube.

… Stay in touch with your friends on Facebook, LinkedIn, and MySpace using the new Windows Live Messenger.

… Use Windows Live Writer to update your blog on WordPress.com [with Essentials 2011 it is the default], Blogger, TypePad, and many more blogging services.

… Use Windows Live Mail to keep track of your email from Hotmail [this is now the other Microsoft on-line service outside of Windows Live Essentials], Gmail, Yahoo, and more.

… Together with Windows 7 and the new Internet Explorer 9 beta, Windows Live Essentials completes your Windows experience and connects your PC to the services you use every day. Try it out and let us know what you think!

My final conclusion: Microsoft is not abandoning its eight years of on-line investments (which produced $6B+ loss so far) but splitting that among its classic strategic business lines. What we see now by Windows Live Spaces SaaS moving to WordPress.com SaaS and with the introduction of Windows Live Essentials 2011 is for the current (Windows 7) and the next generations of Windows clients.  Windows clients will continue to be free of any advertisements and hence there is no service should be in Windows Live Essentials which could only be financed through advertisement revenue. With Flickr, SmugMug, Facebook, YouTube, Facebook, LinkedIn, MySpace, WordPress.com (with Essentials 2011 it is the default], Blogger, TypePad, Gmail, and Yahoo mentioned as important partner services, there is a clear demarcation line between Windows Live and 3d party services. In addition Windows Mail is that part of Windows Live Essentials which integrates both the 3d party web mailing services (Gmail,  Yahoo etc.) and Microsoft’s own Hotmail Service. Hotmail thus remains the critical on-line service for Microsoft as well as the Live Messenger service of the Windows Live.

This is a very nice and rational on-line services strategy for the Windows clients. Please note that Microsoft Bing services are offered on their own, and those are the ones which should be supported by advertisement revenues in the long run. Also the Hotmail and Live Messenger services could be covered — at least partially — by advertising revenues in the long run. And certainly there is SkyDrive and Office Web Apps on SkyDrive which are in fact services that could mostly be covered by the Microsoft Office business line. BTW this is also true to a certain degree for Hotmail and Live Messenger.

Look at the Windows Live site for more information! You will even more clearly see that Microsoft did not lost its mind by migrating Windows Live Spaces to WordPress.com in such a “no return” way.

Microsoft to lead standards compliance and implementation? … or how Microsoft is aiming to create a radically new Windows client platform via a set of “whole computer capable rich web” standards.

This is the question and the final conclusion I came to after studying all the details related to the announcement of Microsoft and Top Sites Celebrate the Beauty of the Web With Internet Explorer 9 Beta Release [Sept 15]. Let’s see the accompanying fact sheet Windows Internet Explorer 9 New Features at a Glance which has the following grouping and the related to my question major statement excerpts about the IE9 Beta (emphasis used within the excerpted text detail is mine):

Hardware-accelerated graphics

As an example of how Internet Explorer 9 takes advantage of the power of the whole computer, the rendering of graphics and text has been moved from the central processing unit (CPU) to the graphics card (the graphics processing unit or GPU), using the Direct2D and DirectWrite sets of Windows application programming interfaces (APIs). Hardware-accelerated text, video and graphics mean that your websites perform like applications installed directly on your Windows-based computer.

New DOM and new JavaScript engine

The newly optimized document object model (DOM) in Internet Explorer 9 provides dramatic speed improvements by interacting more efficiently with Chakra, the new JavaScript engine. Chakra interprets, compiles and executes code in parallel by taking advantage of multiple CPU cores. Although each of these is significant on its own, combining these changes, along with using hardware-accelerated graphics, makes the browser all-around fast.

F12 developer tools

Clean site-centric design makes sites shine and integrates them with Windows 7:

Clean browser user interface Pinned Sites JumpLists Windows Aero Snap for your websites Thumbnail preview controls
Icon overlays Notification Bar New tab page One Box Address Bar Top Result

Feel the confidence and trust that you are in control with Internet Explorer 9:

Download Manager with SmartScreen filter integration Add-on Performance Advisor Hang recovery
Compatibility View Automatic updates Group Policy support

Write interoperable markup with HTML5 and Internet Explorer 9:

Extensive support for HTML5, Scalable Vector Graphics (SVG), Cascading Style Sheets Level 3 (CSS3), ECMAScript5 and DOM provides a new set of capabilities that will help enable developers to write one set of markup and know that it will work and look the same in all modern browsers. Internet Explorer 9 was designed with support for industry standards built in to help ensure that the same markup works the same across browsers.

HTML5 support. Internet Explorer 9 builds on the work done to implement HTML5 features in Internet Explorer 8, and adds several compelling features. Support for the video and audio elements enables native, hardware-accelerated video and audio content on a Web page without the need for a plug-in. Developers can now insert a video or audio clip onto their page as easily as they do images. Plus, support for the canvas element enables easy and dynamic graphics rendering, all while taking advantage of hardware acceleration through Windows and the graphics card. In addition, support for the selection APIs enables programmatic selection of text on a page, and HTML parsing improvements help make HTML authoring more versatile.

DOM Level 2 and Level 3. Internet Explorer 9 adds support for more of the Document Object Model Level 2 (DOM L2) and Level 3 (DOM L3), and improves DOM L2 support over existing implementations. These DOM additions are taken from several DOM specifications, including DOM L2 and L3 Core, DOM L2 Views, DOM Element Traversal, DOM L2 and L3 Events, DOM L2 HTML, DOM L2 Style, DOM L2 Traversal and Range, and WebIDL (interactive data language).

SVG. As the SVG standard has developed, developers have been requesting native support in Internet Explorer, and it is available in Internet Explorer 9. Support for SVG in Internet Explorer 9 enables powerful, attention-grabbing visuals with incredible detail, all without the need for a separate download or plug-in. Like all the graphics, text and media features in Internet Explorer 9, SVG in Internet Explorer 9 takes advantage of hardware-accelerated graphics.

CSS3. Building on the work that was done in Internet Explorer 8, which is fully compliant with the Cascading Style Sheets Level 2.1 (CSS2.1) specification, Internet Explorer 9 adds support for many components of CSS3, enabling even more flexibility and functionality for Web designers and developers. Internet Explorer 9 introduces features from several CSS3 modules, including the Backgrounds & Borders Module, Color Module, Fonts Module, Media Queries Module, Namespaces Module, Selectors Module, the Values & Units Module, and support for the Web Open Font Format (WOFF).

ECMAScript 5. The JavaScript implementation in Internet Explorer 9 is enhanced with many features defined by the latest edition of the ECMAScript standard. New ECMAScript 5 features introduce significant improvements to the JavaScript language and increase developer productivity. In addition, the Internet Explorer 9 DOM is designed to natively support ECMAScript 5, providing a consistent and natural programming model for developers when programming the Internet Explorer 9 DOM from JavaScript.

With things like that it is clear that Microsoft is aiming at a radically new Windows client platform creation which is based on the latest “rich web” standards capable of taking advantage of the power of the whole computer. In that sense what has debuted now as Internet Explorer 9 Beta is not less than:

  1. the fist implementation of that new Windows client platform, and also
  2. the live laboratory of platform development alongside with the development of new “rich web” standards.

The final questions are certainly how efficient is the current implementation and how much the latest “rich web” standards are covered by IE9 Beta?

To answer those two question let’s turn to the technology media leaders on the web having the opportunity to analyze the new release not less than week before it has been released by Microsoft:

Engadget Internet Explorer 9 Beta review [Sept 15] concentrated on completely redesigned fuctionality and performance, not advancements in the standards space (btw a pretty complicated issue):

IE9 bested Firefox 3.6 in lots of the tests, but Chrome still won out in them all. … What doesn’t really come through in those benchmarks is the browser’s hardware accelerated graphics. … There isn’t all that much in terms of graphics-heavy HTML5 sites at this point in time and Flash 10.1 already relies on the GPU, but we did try Microsoft’s Test Drive suite of sites in a number of different browsers. The JavaScript-based Amazon Shelf demo … is pretty stunning; on the M11x with the GPU activated, the demo ran at 60fps (about 55fps when we turned a page in a book). With the GPU off, the experience was a bit more sluggish – it ran at 16fps and 9fps when turning a page. … How does that Amazon Shelf demo work in other browsers? Both Chrome 6.0.4 and Firefox 3.6 don’t take advantage of the GPU, so even when it was turned on it notched 6fps. The results were much better in Firefox 4 Beta 5 which is optimized for GPU acceleration — it hit the 60fps mark

ZDNet Internet Explorer 9 beta review: Microsoft reinvents the browser [Sept 15] tried to answer questions readers were typically asking: Is it fast enough? Is it compatible enough? Is it cool enough to win back former IE users who have switched to other browsers, first to Firefox and more recently to Google Chrome? And will this shiny new browser be able to rehabilitate the tarnished Internet Explorer brand? From ZDNet’s review there was again answer only to my performance question (emphasis in the quoted text is again mine):

The single biggest performance boost in IE9 comes from its support for hardware acceleration. Because IE9 runs only on Windows Vista SP2 and Windows 7, it can be tuned to offload some rendering tasks to modern graphics hardware, which often has more raw processing power than the rest of the PC. (Microsoft claims that current browsers use only 10% of a PC’s power, which might be a bit of hyperbole.) It’s clear from daily use, though, that hardware acceleration really does make a difference in rendering text, images, and graphics. As a result, Microsoft finds itself in an unaccustomed position, out in front of other browsers, which are furiously trying to play catch-up.

I tested the IE9 beta alongside Firefox 4 beta 5, which was released in September 2010 and is the first Mozilla offering to support hardware acceleration. I also tested it against the most recent beta of Google Chrome 6, which doesn’t use the GPU for rendering. (Google has reportedly placed that feature on its roadmap for Chrome 7.) … The biggest performance differences, not surprisingly, were apparent on Microsoft’s own graphics-oriented tests at its IE Test Drive site. On the FishIE Tank example, which uses the new HTML5 Canvas tag, here’s how the three browsers compared: … IE9’s frame rates stayed high as I kicked up the number of animated fish in the virtual tank. Performance remained smooth and glitch-free even when I moved the window across multiple monitors and docked it to the side of the display using Aero Snap. Firefox 4, by contrast, was able maintain high frame rates for short bursts, but moving the browser frame caused performance to plummet and even froze the display for long periods. Using Firefox, frame rates plummeted dramatically when I selected the most demanding settings (500 and 1000 fish). …

For a more independent performance test, I enabled all three browsers for YouTube’s HTML5 channel and tried playing a handful of high-definition videos at 720p and 1080p resolution. All three browsers performed admirably within a window and at full-screen resolution. IE9 and Chrome 6 were able to maintain full-fidelity playback even when tearing a tab out of the browser pane and dragging it to its own window. Firefox 4, on the other hand, failed this test, stopping the playback and starting the clip over when it landed in a new window.

The other new performance-enhancing component in IE9 is the new Chakra JavaScript engine, … ran the SunSpider benchmark using only the most recent beta releases of IE9, Firefox, and Chrome. The difference between each browser is only about one-tenth of a second, and that composite result includes dozens of complex operations. The independent JSBenchmark test produced similar results, with the IE9 beta running 21% faster than the latest Firefox 4 beta but 29% slower than the latest test build of Google Chrome 6. The conclusion? JavaScript performance isn’t a significant differentiator between modern browsers, and IE9 can hold its own with any Webkit-based browser on this score.

Based on these two indepedendent reviews (and a lot of others with similar findings) I can conclude that performance-wise Microsoft is on track to create the radically new Windows client platform. From the point of view of upcoming “rich-web” standards, however, I should do my own investigation. That will come in the next post in this blog.

Microsoft going multiplatform?

Microsoft Has No Plans To Make Another Smartphone, Exec Says [Sept 16] wrote The Wall Street Journal yesterday. Is it big news? Some say so. Wired’s reaction to the internals of that article is the most notable one: Microsoft’s New Mobile Strategy: Software for Every Platform [Sept 17].

Microsoft’s Tivanka Ellawala told the WSJ that the company’s done with smartphone hardware (beyond in-house prototypes, presumably): “We are in the software business and that is where our business will be focused,” he said. That means no follow-ups to the Kin social media smartphone, definitely; no resuscitation of the Courier e-reader/tablet project, probably; and a new focus on making apps for other platforms, quite possibly.

Then there is a reference to “Microsoft blogger Paul Thurrott confirmed the rumors on Twitter”:

Shhh…. It’s true: Microsoft is working on iPad apps. [Paul Thurrot is a Penton Media technology analyst creating all the content of the SuperSite for Windows]

By the rumors it is meant what has been written in the WSJ blogpost as:

He [Tivanka Ellawala ] made the remark in response to a question about rumors that the Redmond, Wash.-based behemoth is working on a new phone.

So we should still get more information, rumors or otherwise, to accept Wired’s interpretation which essentially means that Microsoft is becoming a multiplatform software vendor.

Until we have that further information we should collect the already existing evidence indicating such a direction for Microsoft:

1. Market neccessity. The Wall Street Journal is coming again handy with the news that Retailers Turn to Gadgets — Best Buy, Others Stock Up on Handhelds for Holidays as TVs, PCs Lose Luster [Sept 14]:

The new priorities are plainly evident in the changing strategy of Best Buy Co., the nation’s largest electronics retailer by revenue, which is now morphing into a mobile gadget specialist after decades of promoting the latest in big-screen televisions, desktop computers and high-fidelity stereos. Best Buy … said it will showcase devices such as Apple Inc.’s iPad tablet computer and Amazon.com Inc’s Kindle e-reader* this holiday season. … internal estimates showed that the iPad had cannibalized sales from laptop PCs by as much as 50%.

  • Note on the Kindle (*): This is showing perfectly well the reality that iPad is not cannibalizing single-purpose e-reader sales, so the FUD described in my Undermining E-Ink and single-purpose E-readers [Aug 23, updated till Sept 17 and beyond] could have very little effect on the market.

Subsequently Engadget has relayed these news as iPad has halved laptop sales, claims Best Buy CEO [Sept 17], while Wired went as far as declaring Best Buy Chief: iPad Cannibalizes Laptop Sales by 50% [Sept 17].

2. Microsoft has already a well developed “multiplatform” strategy for its Software + Services approach. Look at their latest summary of  Microsoft cloud computing & cloud services – So much more than just BPOS [Aug 23]. Microsoft Office Web Apps and Windows Live Essentials are the most visible manifestations of the AJAX multiplatform technology underlying these applications. We know only – in fact for almost two years already – that a C# to JavaScript tool, called Script# is an essential part of that. And there are continuous improvements in both set of applications, see the MSDN blog of the Microsoft Office Web Apps team, as well as the Inside Windows Live and the Windows Live for Developers blogs.

While the current Office Web Apps (an only 2:37 long video) has much more functionality than the current Office Mobile version we should understand that the highly portable AJAX code beneath Office Web Apps could relatively easily be tweaked for any strategic smartphone or media tablet/pad platform.

3. The current Windows 7 platform will stay with x86 only as has been shown in my posts here: Microsoft strengths for the PC -> cloud transition [June 27] and Windows slates in the coming months? Not much seen yet [July 13]. At the same time there are a number of indications that the next Windows 8 platform might extend to the ARM architectures as well. All the speculations are based on the fact that Microsoft Licenses ARM Architecture [July 23]. Interpretations are abound. See: New Microsoft, ARM licensing agreement; Could a Windows Phone tablet be coming? [July 23 with updates], or a digest of several of them: What can Microsoft do with ARM chips? [July 23].

4. Internet Explorer will be even more closely tied to the Windows platform, so Microsoft’s browser will not become multiplatform as per Sinofsky on IE9, Windows Live, and more (Q&A) [Sept 16]:

Browsing is the thing that a lot of people do, obviously. What we really wanted to make sure of is that when you get Windows you get the very, very best browsing experience, period. Among all the people who make browsers, we’re uniquely committed to doing a great job for Windows, which is the platform that the vast majority of people use when they are browsing.

We think there is something there and that you shouldn’t be constrained by a least common denominator across operating systems.

It’s a fact that we are not encumbered by trying to do browsers on all of the operating systems that have very small numbers of users. Other people can do that and that’s great, but with that come a set of decisions and a set of hard challenges.

And Windows Live is an essential extension of that:

We think that the combination of Windows plus Windows Live–and of course with the latest Internet Explorer–offers what we think of a complete Windows experience. It connects Windows up with services that you care about and it also provides rich experiences for photos, for movies, and for Messenger. There’s some really exciting and innovative things in it and they also tap into the power of hardware. Movie Maker and Photo Gallery are all hardware accelerated and do a really great job using accelerated video and accelerated graphics in general. It’s that whole complete experience. It’s the things we have been doing in the very immediate term with Windows Live–connecting it up to Facebook and over 100 service providers.

5. In the broad “productivity solutions” space Microsoft is already going multiplatform: Microsoft and Nokia form global alliance to design, develop and market mobile productivity solutions [Aug 12]

… the two companies will begin collaborating immediately on the design, development and marketing of productivity solutions for the mobile professional, bringing Microsoft Office Mobile and Microsoft business communications, collaboration and device management software to Nokia’s Symbian devices. These solutions will be available for a broad range of Nokia smartphones starting with the company’s business-optimized range, Nokia Eseries.

… Next year, Nokia intends to start shipping Microsoft Office Communicator Mobile on its smartphones, followed by other Office applications and related software and services in the future. These will include:
– The ability to view, edit, create and share Office documents on more devices in more places with mobile-optimized versions of Microsoft Word, Microsoft PowerPoint, Microsoft Excel and Microsoft OneNote
– Enterprise instant messaging and presence, and optimized conferencing and collaboration experience with Microsoft Office Communicator Mobile
– Mobile access to intranet and extranet portals built on Microsoft SharePoint Server
– Enterprise device management withMicrosoft System Center

Since just a week ago the Microsoft executive in charge of this alliance changed the seats and became Nokia’s new CEO – see: Stephen Elop to join Nokia as President and CEO [Sept 10] – this agreement will not only be carried out in the full but also might significantly be extended in the future. See also a good summary of that turn of events: Will Microsoft And Nokia Team Up To Take On Apple, Google? [Sept 15].

Conclusion: as one could see from the above 5 points Microsoft is already multiplatform or at least multiplatform capable in a number of key application segments, while in the core Windows segment it might become multiplatfrom with the next Windows 8 version.

SAP’s Business ByDesign SaaS to be relaunched on July 31 with mobility as one of key attractions

Yesterday’s Q2 financial report from SAP specifically mentions the expansion it made in the volume business as well as the progress in the small and midsized enterprise (SME) segment:

… said Jim Hagemann Snabe, Co-CEO of SAP. “Our success in the SME segment creates a strong foundation for the new version of our on-demand platform SAP Business ByDesign. The new version will be available on time on July 31st and is ready for volume deployment in six countries.”

The company provided a quite interesting video as well: SAP Business ByDesign Goes Mobile [July 26]. “Get an exclusive first look at the latest SAP Business ByDesign software, running on mobile devices such as iPad, iPhone, and BlackBerry. The software will be available in 2011.” There is also a related blog-entry from SAP TV: Exclusive: See what’s coming 2011 – Behind the scenes with a SAP developer [July 27]

In a later video interview given to CNBC (see SAP CEO on Earnings [July 27]) Bill McDermott, Co-CEO of SAP, was describing his company’s outlook as follows:

[2:30] Others have consolidated legacy markets to downsize companies and leverage margin. In the short-term that’s a viable shareholder strategy, no question about it.  We believe in organic growth, we believe that customers will run their business with on-premise enterprise applications, they’ll run them on-demand in the cloud, using in-memory technology with real-time analytics, and they’ll run their business on-device.

[3:00] The vision that we have is to connect the virtual boardroom to the shopfloor worker, so on an end-to-end process basis companies are run better, and they are actually managed by exception. So all these knowledge workers that are interned to the desktop can actually make decisions in real-time. So Sybase got us into a new category which is the mobile. I believe to be the new desktop. If you look at markets like China, as an example, three quarters of their knowledge workers have bypassed the desktop and gone right to the mobile.

[3:31] So we are all about innovation. We will let others have their short-term games on the margin. We think customers will appreciate that in the long run, and shareholders too. [3:41]

Mobility has indeed been the major reason why SAP has recently acquired Sybase for approximately $5.8 billion. Other reasons were being very strong in analytics and certainly its traditional database business. See: SAP to acquire Sybase Inc. [May 12]

Strategic Move to Accelerate the Reach of SAP® Solutions across Mobile Platforms, Help Companies Manage and Analyze Business Information and Processes on Any Device

… SAP will accelerate the reach of its solutions across mobile platforms and drive forward the realization of its in-memory computing vision. … For Sybase, SAP in-memory technology will provide the opportunity for dramatic performance improvements to its analytic processing capabilities. Sybase will also be able to bring its complex event processing and analytics expertise, which was built in the financial sector, to customers in other industries, markets and product areas …

“Mobile devices are becoming the preferred interaction point with business applications, whether the user is a factory supervisor, a retail manager or an entrepreneur in a developing nation,” said Jim Hagemann Snabe, co-CEO of SAP and member of the SAP Executive Board. “The combination of SAP and Sybase will give users the option of running their operations from leading mobile devices … In addition, innovation around Sybase’s established database business will pave the way for ‘real’ real-time analytics and finally remove the decade-old barrier between business applications and business intelligence.”

… John Chen, CEO of Sybase, Inc. “… by combining the market leader in enterprise applications with the market leader in enterprise mobility, companies around the world will be able to run their business from many devices. This will drive a new wave of enterprise productivity. … ”

As a new, to be operating as a separate subsidiary of SAP, Sybase has announced a much strengthened mobility offering almost immediately. See: Sybase Introduces Industry’s First Mobility Platform Empowering Enterprises to Better Enable Employees and Engage Customers in New and Innovative Mobile Ways [May 20]

The Sybase Mobility Platform is comprised of the most comprehensive new and industry-proven solutions, including:

Sybase® Mobile Sales for SAP CRM and Sybase® Mobile Workflow for SAP Business Suite have also earned Sybase an SAP award in the “Technology Innovator of the Year” category. See: Sybase Awarded 2010 SAP® Pinnacle Award [May 20]. These applications, by the way, have been jointly announced well before the acquisition. See: SAP and Sybase Deliver First Set of Applications to Millions of Mobile Workers Worldwide [March 2]

… The population of mobile workers and the number of personally owned devices entering the enterprise is growing exponentially. According to industry analyst group IDC, “The worldwide mobile worker population is set to increase from 919.4 million in 2008, accounting for 29% of the worldwide workforce, to 1.19 billion in 2013, accounting for 34.9% of the workforce.” …

  • Sybase® Mobile Sales for SAP CRM automates sales processes, increases productivity and enhances customer service by equipping sales professionals with anywhere, anytime access to SAP CRM 2007 through smartphones such as iPhones and Windows Mobile devices.
  • Sybase® Mobile Workflow for SAP Business Suite enables mobile workers to complete business processes — such as workflow items and alerts, time recording and travel requests that require immediate action — through a familiar and secure email inbox.

CNBC’s earlier Why Sybase? [May 17] interview with Bill McDermott has given more insight on whether the mobilization of  business is to propel [this] M&A:

[1:31] The main reason for acquiring Sybase was one, mobility. They are the #1 mobile infrastructure company in the world. We want to move our applications to mobile devices. #2 – they are very strong in analytics. So we were already #1 in the world in analytics, and they approach industries such as financial services and public services. And they are growing very fast, and in quick markets like China, where China has bypassed the PC generation and gone right to the mobile. The 3d reason is the database where they have a very strong core business. We believe that in-memory computing combined with their core business will give the customer just an at-a-site-solution that currently does not exist on the market from any vendor. So for all three reasons we felt this was a breakthrough to have that asset. [2:18]

[2:32] We believe very heavily that our strategy was reliant on mobility. … We participate now in a 10 billion market. We wanted to be in a 220 billion market, and to do that you had to get in-memory, you had to get mobile, and you had to get on-demand. Sybase itself touches all three priorities. [2:53]

Note: One can put here indeed press releases that prove Sybase strengths in the #1 and #2 areas. For simplicity I am just giving here the ones that are also related to the China market:

Back to the Business ByDesign SaaS! The new customer-centric innovations in the Business ByDesign solution have already been announced and demonstrated at SAPPHIRE® NOW event this year. See: New Release of SAP® Business ByDesign™ Gives Customers In-Memory Analytics, Support for Mobile Devices, and Customizable User Interfaces [May 17]. Of the new attractions mentioned in this headline one needs to mention the incorporation of Microsoft Silverlight technology into the front end. The rest is quite well understandable from the things detailed above.

One innovation mentioned just in the internal text of the press release, however, needs to be mentioned as a key attraction as well:

Single and multi-tenancy support. Customers can now choose either single or multi-tenant topologies as the solution is fully enabled to support both. Other than traditional on-demand offerings, SAP’s multi tenancy concept has been engineered for customer and partner specific business extensions, business configuration and all kind of UI, report and forms flexibility. It leverages SAP’s proven life cycle management system protecting all changes during upgrades. During the planning and engineering phases towards multi-tenancy, SAP collaborated with Intel to create an infrastructure optimized for the massively scalable ‘cloud computing’ environment of SAP Business ByDesign. The Intel® Xeon® Processor is the reference platform for SAP Business ByDesign deployments. The scalability and efficiency of Intel Xeon processors with the Next-Generation Intel® Microarchitecture will enable SAP to achieve even lower TCO for the solution’s infrastructure by delivering equal business capability with a smaller server and carbon footprint, significantly lowering energy consumption compared to previous generation processors.

The reason for full inclusion of that part is quite simple. That single functionality has been missing from this SaaS product and that was one of the major reason why SAP has not been able to enter the SaaS market in a big way so far. Another one has been the clash of its old and new (i.e. on-demand) business models. Here is some earlier information on that:

“What we did discover in the last five or six months is that while we made progress on our TCO model we’re not where we wanted to be (a 10 times TCO reduction),” says Apotheker, in a meeting with a group of Enterprise Irregulars Monday at SAP’s Sapphire conference in Orlando.

… The rumor mill has been most unkind of late: Rumors have been flying that ByD is going to miss its latest release date, that its marketing plans are DOA, and that SAP is on the verge of laying an egg of colossal size and impact.

The rancor surrounding the July 31 release date of the new ByD reflects a complex history inside SAP and the on-demand market that has clouded a lot of otherwise objective analysis about its prospects, and how important ByD’s success is not just for SAP and its customers, but for the on-demand market as a whole. …

… The other point worth addressing about ByD is that its initial entrance to the market in 2007 came in the midst of a not-so-private battle between ByD’s main advocate, Peter Zencke, and fellow board member Shai Agassi, who wanted the concepts of ByD – model-driven, on-demand ERP – to be embodied in the main SAP suite instead of in a completely new, mid-market product. That battle at the top eventually led to Shai’s departure – Zencke left shortly thereafter – but it left a bad taste in many SAPers’ mouths for the product. The fact that it failed to be economically viable as an on-demand product in its initial release further fueled the ire of its detractors. …

… This internal “polemic”, to be polite about it, reminds me of what Microsoft has been going through in the years since Ray Ozzie first discussed Software + Services as the new direction for Microsoft. Even an outsider can imagine the screaming inside Microsoft about such a radical shift and what it would mean to the king of the desktops. The fact that Steve Ballmer felt compelled three years later to give his now-famous “We’re All In” speech is testimony to how hard it’s been internally for Microsoft to grapple with this paradigm shift. …

… SAP is facing a similar dilemma with ByD. Everything about it – on-demand but not true multi-tenant, requires a major channel that doesn’t exist yet, the potential for cannibalization of other products, the sordid release history, the bad blood inside SAP – means that SAP has a similar requirement to make sure that everyone is walking the walk and talking the talk.

With so much at stake, it’s clear that ByD will be one of the great inflection points in the history of enterprise software, and in many ways its success or failure will define the future of on-demand enterprise software for some time. ByD isn’t just a gamble that SAP can create a product like ByD, it’s also a gamble that there is actually a market out there for what ByD represents. This fact is hardly a given: NetSuite’s struggles to meet its market potential has given many proponents of on-demand ERP pause, as has Workday’s slow slow progress towards a critical mass of customers. …

… If SAP can pull off ByD, that success will create a huge opportunity for others, including NetSuite, by legitimizing a market that to date doesn’t really exist as a billion-plus dollar opportunity. If SAP fails, I fear that this much-needed capability will languish on the sidelines another four or five years, and customers will be all the poorer, literally and figuratively, for that failure.

So, baring some unforeseen glitch, ByD re-enters the market in one short week. Its success or failure will hinge on a number of factors, most important of which will be the SDK that comes out at the end of the year. This is going to be one of the most closely watched software rollouts in a long time, with its repercussions felt across the industry for years to come.

So  the relaunch of SAP’s Business ByDesign product should be watched quite carefully on July 31!

Windows slates in the coming months? Not much seen yet

On the first day of the Microsoft Worldwide Partner Conference this week there was not much about the Windows slates. It is not surprising given that Intel has just begun real and honest marketing of its sufficiently low power SoCs (see: Intel SoC for Cloud Clients [June 25]).

… what you’ll see over the course of the next year is us doing more and more work with our hardware partners creating hardware-software optimisations with Windows 7 and with Windows 7 Media Center …

  • Even more, Mr. Ballmer is emphasizing that whatever they will be doing on Windows 7 and Windows 7 Media Center basis will still not be the real thing, and everybody should wait for Windows 8 with real “Big Button touch” — i.e. (I would add) waiting till 2012:

… Media Center is big and, when people say ‘hey, we could optimise [that] more for clients’ I think what they generally mean is ‘Big Buttons’.  Big Buttons that’s, I think, a codeword for Big Buttons and Media Center is Big Buttons not Little Buttons. I’m not trying to trivialise that – it’s a real issue.

We’re not going to do a revamp of Windows 7 over the course of the next year for that purpose.  Whether we should, or we shouldn’t, we’ve put all our energy around doing a great job on that and other issues in the next version of Windows

  • Related post on my other blog: Windows 7 UI overlays from Microsoft and elsewhere [Aug 30]. This is clarifying the UI situation for Apple iPad competitive Windows slates.
  • Related: Compal president pessimistic about non-Apple tablet PC shipments in 2011 [Digitimes, Sept 2]. His prediction is only 15 million units at max while Apple tablet PCs ~10-12 million. Also: “Wintel netbook sales have recently been devoured seriously by tablet PCs and if the two firms do not consider dropping prices or improve performance, sales will continue to drop.”
    Notebook supply chain still has no clear visibility for December orders [Sept 6]: “First-tier notebook makers Quanta Computer and Compal Electronics have recently adjusted their third-quarter notebook shipment forecast from positive growth to an up to 10% drop; however, they still forecast to see growth in the fourth quarter and are working aggressively to bring up their shipments for the quarter.”
  • Update: Even the most Windows slate concious manufacturers are publicly admitting now their dependence on Intel’s lagging chip capabilities (finally): MSI waiting on Intel Oak Trail for Win 7 tablet, Android version will hit before end of the year [Aug 23]. See also Mary-Jo Foley’s Another Windows 7 slate dropped from this year’s Christmas list [Aug 24].
  • Update: Toshiba’s dual-screen Libretto W100 laptop on sale in America for $1,100 [Engadget, Aug 16]. Excellent price for this unique, Intel U5400 based device which has only 0.8 kg weight and 3 cm thickness (when closed). See the complete offering on the Amazon site: Toshiba libretto W105-L251 7-Inch Dual Touchscreen Laptop (Silver/Black). Look at the picture on the right (copied here for convenience). Toshiba’s characterization is nothing less than: “ultramobile companion goes beyond slates and tablets to deliver something more: a full Windows 7 experience to be enjoyed across two touch screens. So now you can enjoy many different things – games, ebooks, movies, music, TV and so on – from a single handheld device.”
  • Toshiba is, however, mum on the battery life, just stating 36 Wh with the large capacity 8-cell Li-Ion battery. Considering Intel U5400‘s 18 W max TDP this is clearly not enough for even 2-3 hours of continuous use. This is why vendors should wait for Oak Trail’s Q1 2011 arrival for their Windows slates.
  • Update: and surely we will have the notebook convertibles with full touch screen capabilities like this: New Smaller LIFEBOOK T580 Is The Gateway to Fujitsu’s Tablet Line Up Slate-beating LIFEBOOK tablet PC combines touch screen mobility with the convenience of a keyboard [Sept 2], see also the detailed specification. Notable differentiator: “Even in direct sunlight, the screen display is bright and clear thanks to high-definition LED backlighting with an Ambient Light Sensor that automatically adjusts display brightness, while a smear-proof coating means no distractions from fingerprints.” Price, availability: “The LIFEBOOK T580 is the lowest-priced tablet PC in Fujitsu’s line-up. Exact pricing varies by region.  Fujitsu’s LIFEBOOK T580 will be available for all regions in late November 2010”
  • Update: Acer to launch three tablet PC models featuring 5- to 7-inch panels [and Android 3.0 in the first quarter of 2011] [Sept 14]: “Before the Android models are released though, Acer will launch an x86 model using an Intel processor and Windows 7 to test the water in the market”.
  • Crucial issues for the future: What if a Microsoft Surface like functionality will go into this kind of handheld design? I mean a case when one of the screens is configured to work (via software added to Windows 7) as a Microsoft Surface which is even more enhanced with a tailored very general input functionality. I came to this idea when watching the concept video on YouTube (also available on the Amazon site). Even more: What if the Microsoft Courier prototype will also be adopted to this design and brought to the market? Those two things will change the whole market by themselves! And these are “just” software additions to the existing Windows 7. The screens are already multitouch!
  • This little device has been the best what Microsoft could demonstrate at this partner event. See all the detailed information below on that Toshiba Libretto W100 as mentioned at the partner event as well as elsewhere around the web.

This is what Microsoft could tell and demonstrate on this important event:

Microsoft’s Ballmer: Windows 7 slates are coming this year [Mary-Jo Foley’s “All about Microsoft” blog on ZDNet, July 12]

I think it’s way overdue for Microsoft to tell customers what’s coming on the slate front. We’ve heard that there will be Windows Embedded Compact tablets and slates coming, but it’s doubtful (I’d think) that those will be able to run Windows apps.

Microsoft execs can’t — with any credibility — keep pooh-poohing slates, claiming they’re nothing more than PCs, given how quickly the iPad has been gaining traction. Microsoft is known to be focusing on the slate form factor with Windows 8, but that operating system is still likely close to two years away from release.

All that said, there’s more to a slate than just the physical form factor. If there isn’t longer battery life, instant on/off and some kind of app store with not just the usual business apps, but also consumer-focused apps and games, I’m not so sure users are going to bite…

So let’s see in the speech transcripts what has exactly been said today about the slates:

Steve Ballmer: Worldwide Partner Conference 2010 [July 12]

… over the course of the next several months, you will see a range of Windows 7-based slates that I think you’ll find quite impressive. Tami is going to show you some of those today. They’ll come from the people you would expect, from Asus, from Dell, from Samsung, from Toshiba, from Sony. Windows 7-based slates, they’ll come with keyboards, they’ll come without keyboards. They’ll be dockable. There will be many form factors, many price points, many sizes. But they will run Windows 7. They will run Windows 7 applications. They will run Office. They will accept ink as well as touch-based input. And they will be very good for the kinds of scenarios that all of us are going to see for knowledge workers in the business that we serve that want to have something that works super well at work, but also supports their kind of personal interests as they travel.

Tami Reller: Worldwide Partner Conference 2010 [July 12]
(Video record: select from the presspass video gallery)

[Ryan Asdourian demoing for Tami Reller, [8:05 – 11:10]: none of the devices shown in this period of time are releated to the slates or tablets, they are rather variations on notebooks and netbooks]

… [11:10] but I’ve also got some surprises. I’ve got this right here, this Sony P. It’s a beautiful machine. Open this up, this is running the full version of Windows 7 right here. And it’s just really light, it’s beautiful, easy to carry around.
[11:35] Let me hand this one out as well. Just play with this for a second. While you do that, I’m going to show you this one last machine I’ve got. This is called the Toshiba Libretto. And it’s got two capacitive touch screens. You see here, I can actually interact with it right here, and it’s got a core i5 chip so it’s actually running an HD video and I’ve got a document open at the same time. It’s a beautiful machine. [11:50]

… [32:30] seeing apps is really what brings it to life. And seeing some of the great apps that have been built by you. So, let me ask Ryan to come and show us some of the great innovation out there. Welcome back. [[32:40] Ryan Asdourian demoing for Tami Reller] … the first demo I’m actually going to show is actually on this [Hanvon] slate I’ve got here. This is the Copia Reader. And what I can actually do here — I go ahead, I click into this, and what I see is a lot of articles here. I can actually go ahead and drag these right here to my reading queue. I can go ahead, save some of these in my favorites, and this app is actually tied into a bunch of my social networks, so I can see what my friends are doing as well, and they can comment, I can comment on their stuff. It’s a really interactive, rich way to interact and this is all built with Windows, WPF, and has Azure as a back end, so it’s a great example of rich client app and putting the cloud with that. [33:20]

The Sony P-series Lifestyle PC: Just don’t call it a Netbook [Jan 7, 2009]
VAIO P Series Lifestyle PC | Sony
:
Estimated Battery Life with Standard Battery6 (included)
– Default Settings: Up to 4.5 hours
– Max. Brightness: Up to 4 hours
Estimated Battery Life with Extended Battery6 (sold separately)
– Default Settings: Up to 9 hours
– Max. Brightness: Up to 8 hours
Power Requirements: 68W + 10%

Toshiba Libretto W100 resurrects the classic UMPC brand with dual 7-inch displays [Engadget, June 21]
Toshiba libretto® Dual-Screen PC
:
Toshiba libretto® W100 Dual-Screen PC
(coming in August): “Enjoy up to 5 hours battery life” (see here) Warning[Aug 24]: This reference is for Toshiba’s UK site. Elsewhere Toshiba is mum on the battery life, just stating 36 Wh with the large capacity 8-cell Li-Ion battery. Considering Intel U5400‘s (used in current W100/105) 18 W max TDP this is clearly not enough for even 2-3 hours of continuous use. Vendors should wait for Oak Trail’s Q1 2011 arrival for their Windows slates! No question about that.
Toshiba Libretto W100 preview [Engadget, July 1]

So, what’s our overall takeaway after spending an afternoon with the W100? It’s definitely working better than the model we saw a few months back, but even when it did work there’s not much you can do with it. It’s neat as a web surfing device, but very few things take advantage of the two screens — for instance, we’d like to see a compelling e-reading app (eh hem Toshiba Book Place). In the end — even if Toshiba gets all the hardware and software kinks worked out — we’re far from convinced that there’s a place for the W100 in our lives for $1,100.

The latest showing of the lonely Hanvon slate device was just last weekend:

Hanvon Touchpad B10 tablet computer at CES China [July 12]

… new Touchpad B10 [linking to Hanvon’s product page] tablet computer. The 9.96 x 6.61 x 0.70 inch, 1.98 pound device is powered by a 1.3GHz ULV 743 Celeron processor and GMA X4500 display chip from Intel on a GS45 chipset with 2GB DDR2 memory and a 250GB hard disk drive.

Here is an earlier report from Asia already declaring local availability and even superiority: Chinese tablet maker Hanvon throws down the gauntlet to the iPad [May 20]

To mark the availability of its first slate tablet in China, the TouchPad, Hanvon chairman Liu Yingjian smashed an Apple-shaped ice sculpture with a hammer, insinuating that his products are superior to the iPad. He claimed that the Apple slate is like a mere toy which cannot satisfy the real needs of a consumer or business user, unlike the TouchPad B10 and B20 tablets which run on Windows 7.

Quite an ambitious company! E-Reading the Market – Hanwang sells nearly all the digital readers in China. Founder Liu Yingjian knows that won’t last for long. [Forbes, May 28]
(You could see a collection of related videos as well: Hanvon’s E-Reading Market [June 1])

China-based Hanwang Technology has denied rumors that its Hanvon-branded e-book reader sales have been seriously dampened by competition from the Apple iPad and its current inventory has piled up to as high as 500,000 e-book readers, according to a Chinese-language report on sina.com.cn.

Hanwang chairman Liu Yingjian is cited saying that although the second quarter was the weak season for e-book readers, Hanvon’s sales was significant, and the company expects at least 300% growth in net profit in 2010, the report noted.

The 3d party application shown on that slate is not less ambitous: Welcome to Copia

– We’re not just changing the format.
– We’re rewriting the whole reading experience.
– Introducing Copia, the world’s first social reading experience — reading, learning and sharing all in one.

And the latest report regarding the availability: Copia Coming in July? [June 20]
(There is an embedded video demonstration [June 7] of the software as well.)

Google App Inventor Beta for Android

Google’s Do-It-Yourself App Creation Software [The New York Times, July 11]

… has been under development for a year. User testing has been done mainly in schools with groups that included sixth graders, high school girls, nursing students and university undergraduates who are not computer science majors.

… The Google application tool for Android enables people to drag and drop blocks of code — shown as graphic images and representing different smartphone capabilities— and put them together, similar to snapping together Lego blocks. The result is an application on that person’s smartphone.

App Inventor for Android [Google Blog, July 12]
About App Inventor
App Inventor research project launch [Google Research Blog, July 31, 2009]

Android App Inventor lets you be the developer (video) [Engadget, July 12]

Google is following in Nokia’s footsteps today by offering its users a simple-to-use DIY app maker. Employing a design scheme that relies on visual blocks rather than oodles of arcane code, the App Inventor — still in Beta, of course — has functions for “just about anything” you can do with an Android handset, including access to GPS and phone functionality.

Is Google App Inventor A Gateway Drug Or A Doomsday Device For Android? [TechCrunch, July 11]

Because this new tool makes it easy for anyone to make their own apps, it makes the idea of trying to create your own app a much less daunting one. And that’s the powerful thing here. If this tool can get some kid to start messing around with app creation, maybe they’ll get more interested and start learning actual Java. And then maybe one day they’ll create the next killer app.

… they [Google] have to hope it doesn’t backfire and simply flood the Android Market with more junk apps than already exist. Google already has a problem with surfacing good apps in their market—interesting, given that they are the ones that surface good webpages as mentioned earlier—the problem could get worse if this tool is a success.

Still, I’m going to be cautiously optimistic that this tool is a good thing. Potentially a very good thing. And it’s something Apple should be taking very seriously.

Personal note: One thing is clear, there is a significantly increased momentum for Google Android as has been well indicated by my previous 4 infonuggets:

Android 2.2 (Froyo) excitement is just the tip of the iceberg for the current Android momentum

Ars technica had two articles in the last 3 days which have created quite an excitement on the web (66K+ hits):

  • This is, however, just “the tip of the iceberg”.
  • To understand that you could read first my two previous infonuggets on the subject if you want to grasp the extent of the current Android momentum:
    Beyond Android 2.1 [July 4]
    OPhone OS (OMS) 2.0 based on Android 2.1 [July 5]
  • The mobile Internet technology momentum behind the Android in general could be well understood from my another infonugget:
    3.9G TD-LTE rollout in 2012 with integrated 2G, 3G and 4G? [July 19]
  • In addition, Android has just joined the ranks of the 1st tier cloud client software platforms, as has been indicated recently by my another infonugget, titled:
    E-reading SaaS wars next to e-reader wars [June 30]
  • Finally, below is the whole discussion of Android 2.2 (Froyo) significance which will make the whole “iceberg” completely visible.

Ars reviews Android 2.2 on the Nexus One [July 6], giving the following conclusion about this latest release:

Android 2.2 is an incremental update, but the performance enhancements alone make it an important upgrade for Android enthusiasts. The improved responsiveness and smoother interface transitions really boost the user experience.

Several of the new features—particularly batch updating—offer immediate and obvious benefits. Other features, such as SD storage and cloud backup, aren’t going to start delivering real value until they get broader uptake among Android application developers. I’m particularly enthusiastic about the cloud messaging service—it seems like a capability that will deeply enrich Android and open the door for some innovation in the application development community.

Google’s aggressive development efforts are moving Android forward at a rapid pace. The platform has matured considerably since its initial launch two years ago. The introduction of a JIT [just-in-time compilation] in version 2.2 has largely resolved Android’s performance problems, making it more competitive than ever. As Google works towards version 3.0 and a rumored user interface overhaul, it’s likely that we will see even more innovation.

Android 2.2 demolishes iOS4 in JavaScript benchmarks [July 8] because:

In our recent review [i.e. the previous article] of Android 2.2, we conducted some tests on the Nexus One to measure the extent of the JavaScript performance improvements. SunSpider and V8 benchmarks show that JavaScript execution in Froyo’s Web browser is almost three times faster than in the previous version of the platform.

We compared these findings with that of our tests of Apple’s mobile Safari browser on the iPhone 4. The results show that the Android device delivers significantly faster JavaScript execution than the iPhone, scoring over three times better on V8 and almost twice as fast on SunSpider.

It is worth to combine the results of those two tests in a single chart (recalculated in order to show the performance improvement vs. the performance of the benchmark on the Nexus One with Android 2.1 as the baseline):

The performance improvement is especially remarkable for v8 benchmark which is quite understandable since the V8 Benchmark Suite by Google is:

… a suite of pure JavaScript benchmarks that we have used to tune V8 [JavaScript engine brought to the Android browser as part of 2.2]. …

With this the browser in Android 2.2 (Froyo) is having the same JavaScript performance as Google’s mainstream browser since:

V8 is Google’s open source, high performance JavaScript engine. It is written in C++ and is used in Google Chrome, Google’s open source browser. [see: V8 JavaScript Engine]

SunSpider is just delivering about half of the performance improvement of the V8 benchmark suite which could be because:

This [SunSpider] test mostly avoids microbenchmarks, and tries to focus on the kinds of actual problems developers solve with JavaScript today, and the problems they may want to tackle in the future as the language gets faster [see: SunSpider JavaScript Benchmark].

Note: The main characteristics of a microbenchmark are the following:
• Small program
– Datasets may be large
• All time spent in a few lines of code
• Performance depends on how those few lines are compiled
• Goal: Discover some particular fact
• Remove all other variables
[See: slide #8 of the How NOT To Write A Microbenchmark presentation from JavaOne 2002]
The V8 benchmark suite used for tuning the engine might be more “microbenchmarkish” than the SunSpider benchmark which is explicitly trying to avoid microbenchmarking!

Developers of Android are themselves declaring that:

This has resulted in a 2-3X improvement in JavaScript performance vs. 2.1. See: Android 2.2 and developers goodies [May 10, 2010].

which seems to well correspond to the performance improvement result by the SunSpider benchmark suite.

Ars technica, however, didn’t carry out benchmarking of the Java engine used in Android 2.2 (so called Dalvik, which is not a regular JVM) albeit vast majority of Android applications are coded in Java, and:

The new Dalvik JIT [just-in-time] compiler in Android 2.2 delivers between a 2-5X performance improvement in CPU-bound code vs. Android 2.1 according to various benchmarks.

This is from the same, Android 2.2 and developers goodies [May 10, 2010] blog post which contains other significant improvements from developers’ point of view as well.

Endnote: My statement in the name of the post, that the type of Android 2.2 (Froyo) excitement shown by Ars technica is “just the tip of the iceberg” is even more true from software developers’ perspective. A lot of professional developers in technologically well established and long mature camps, like Microsoft .NET and JVM based enterprise Java / community developed application frameworks (eg. Spring), are considering the Android framework quite underperforming and immature. I’ve met even misunderstanding among them, that Android is programmed in JavaSript or even C++.

With the introduction of Dalvik JIT there are no more reasons to underrate Android (2.2 and above)! To dismiss the wrong belief of “JavaScript and C++ only” programming myth for Android I am usually providing the following links and quotes as well:

http://developer.android.com/guide/basics/what-is-android.html

Android includes a set of core libraries that provides most of the functionality available in the core libraries of the Java programming language.

… Android includes a set of C/C++ libraries used by various components of the Android system. These capabilities are exposed to developers through the Android application framework.

Since June 2009 there is also a Native Development Kit (NDK) for which it is good to know that:

Android applications run in the Dalvik virtual machine. The NDK allows you to implement parts of your applications using native-code languages such as C and C++. This can provide benefits to certain classes of applications, in the form of reuse of existing code and in some cases increased speed.
… Please note that the NDK does not enable you to develop native-only applications. Android’s primary runtime remains the Dalvik virtual machine.
http://developer.android.com/sdk/ndk/index.html

As you know, Android applications run in the Dalvik virtual machine. The NDK allows developers to implement parts of these applications using native-code languages such as C and C++.
http://android-developers.blogspot.com/2009/06/introducing-android-15-ndk-release-1.html

… the NDK is a companion to the SDK that provides tools to generate and embed native ARM machine code within your application packages. This native code has the same restrictions as the VM code, but can execute certain operations much more rapidly. This is useful if you’re doing heavy computations, digital processing, or even porting existing code bases written in C or C++.
http://android-developers.blogspot.com/2009/09/now-available-android-16-ndk.html

Finally, the use of JavaScript requires absolutely different considerations, namely: Building Android Apps with HTML, CSS, and JavaScript, extensively elaborated in a so named and actually excellent book under development (and hence available online as just linked) by Jonathan Shark, which has a Chapter 1 with the following observations (to get a feeling of difference):

What is a Web App?

To me, a web app is basically a web site that is specifically optimized for use on a smartphone. The site content could be anything from a standard small business brochure site to a mortgage calculator to a daily calorie tracker–the content is irrelevant. The defining characteristics of a web app are that the user interface is built with web standard technologies, it is available at a URL (public, private, or perhaps behind a login), and it is optimized for the specifics of a mobile device. A web app is not installed on the phone, it is not available in the Android Market, and it is not written with Java.

What is a Native App?

In contrast, native apps are installed on the Android phone, they have access to the hardware (speakers, accelerometer, camera, etc.), and they are written with Java. The defining characteristic of a native app, however, is that it’s available in the Android Market–a feature that has captured the imagination of a horde of software entrepreneurs worldwide, me included.

Which Approach is Right for You?

Here’s where it gets exciting. The always-online nature of the Android phone creates an environment where the lines between a web app and a native app get blurry. There are even some little known features of the Android web browser that allow you to take a web app offline if you want.What’s more, several third party projects–of which PhoneGap is the most notable–are actively developing solutions that allow web developers to take a web app and package it as a native app for Android and other mobile platforms.

For me, this is the perfect blend. I can write in my native language, release a product as a pure web app (for Android and any other devices that have a modern browser), and use the same code-base to create an enhanced native version that can access the device hardware and potentially be sold in the Android Market. This is a great way to create a “fremium” model for your app – allow free access to the web app, and charge for the more feature-rich native version.

OPhone OS (OMS) 2.0 based on Android 2.1

… the carrier announced on Monday it was preparing to establish its Ophone Innovation Alliance, said Bill Huang, general manager of the China Mobile Research Institute.

“Our Ophone strategy is constantly moving forward,” Huang said during in a speech at a conference in Beijing. Huang did not give any specific details about the alliance, but encouraged potential partners to participate once more information is publicized. The company has spent over a year planning the alliance.

The announcement follows China Mobile’s effort to promote its OMS in April, when Huang urged developers in Taiwan to build more mobile applications for the operating system. At the time, Huang said there were around 600 apps developed specifically for Ophones. In contrast, Apple’s App Store features more than 300,000 third-party applications.

Building less expensive smartphones without sacrificing quality is critical to China Mobile’s business strategy, Huang added. “If we can effectively make an advanced smartphone less expensive, then more users will come to use China Mobile’s services in a shorter amount of time,” he said.

China Mobile is also working to introduce more middle and higher-end smartphones for its 3G network, said company chairman Wang Jianzhou during a speech at the conference.

While China Mobile may have a relatively small number of applications for OMS, the company’s app store continues to gain in popularity. Since it opened in 2009, the carrier’s Mobile Market has recorded 70 million downloads, Wang said. The store features apps and multimedia downloads for different mobile operating systems.

  • Update: Despite of recent reports on weakening OPhone support within China Mobile (see the below update) there are newer reports pointing just to the opposite direction:
    China Mobile to procure 6 million TD-SCMA handsets, says Chinese media [Oct 8]: “Of the total, 3.6 million will be of entry-level models and 2.4 million mid-range products. … the latest procurement effort is largely due to the fourth phase of the China Mobile’s TD-SCMA network construction. When completed, demand for TD-SCMA end-use products is expected to increase substantially.”
    China market: Inexpensive TD-SCDMA handsets to be available in 4Q10 [Oct 13]: “Pushed by China Mobile, TD-SCDMA handsets and smartphones at retail prices of about 500 yuan (US$75) and 1,000 yuan respectively will be available in the China market in the fourth quarter of 2010. … China Mobile is setting up its fourth-phase TD-SCDMA network of more than 100,000 base stations and expects the number of TD-SCDMA subscribers to increase from 13.42 million currently to 100 million in 2012.”
    China Mobile: 4G network coming soon [Sept 15] is stating that “4G data card is close to debut and the carrier and partners are working on the research of 4G handset chip … China Mobile is expected to launch 4G mobile communication services as early as 2011 to boost its high-margin data services, according to the GSM Association.”
    China Mobile to set up device sourcing company [Sept 17] is telling that “The planned device-sourcing company will begin to purchase TD-SCDMA-enabled feature phones with prices below 1,000 yuan (US$148) at the end of the year and then shift to smartphones priced below 2,000 yuan in the first half of 2011“.
  • Update: OPhone fails to connect [Aug 24] which reports that with the change of leadership in June all the technology initiatives started under the previous GM and managed by Bill Huang (Huang Xiaoqing), head of  China Mobile’s Research Institute, will get less support — this is the case of OPhone — or even have been put on hold — the case of mobile payment project. Reasons are the insufficient progress. The estimations are, for example, that OPhone sales are less than half of the number of iPhones bought in China. Quite important article on what is going inside China Mobile.

OPhone 2.0 Platform Debuts in Beijing [June 28]
Samsung first to unveil handset for oPhone 2.0 [June 29] – important to note: “Nokia is also planning a smartphone for the carrier using the oPhone overlay and hardware specs, but running on Symbian.”
Samsung I7680 (Oscar) parameters – Google translated from Chinese
The world’s first mobile phone Samsung I7680 evaluation OMS 2.0 [July 1] Google translated from Chinese
Page 3: Fusion Android 2.1, OMS 2.0 magnificent transfiguration [From Android2.1 transfiguration OPhone2.0 evaluation Samsung I7680] – [5 July] all Google translated from Chinese

The developer of the platform is the Beijing based Borqs: http://borqs.com/index.jsp. They describe the OPhone OS (short for Open Mobile Phone Operating System) platform here: About OPhone OS. See also the recent interview with their CEO: BORQS Ophone OS & more & the China mobile revolution [May 27], important to note: “Borqs is the only company that has done significant Android customization.”

But the supporter is the world largest mobile phone company: China Mobile wants Android apps for its Ophones [April 7], launching the first version of the platform last year: China Mobile Ophone hopes [Sept 1, 2009], China Mobile Launches OPhone [Sept 1, 2009], China’s first OPhone-based mobile phone hits market [16 Dec, 2009]. The last, OMS 1.5 was Android 1.5 based: OPhone SDK 1.5 New features and API changes ENG.1 [Nov 19, 2009].

Note [updated with June data on July 20]: The 3G customer base of the China Mobile is still embryonic with just 1.9% (10.46 million) of the overall number of customers (554 million) at the end of June 2010. Also this number has not been increased significantly for the last 18 month, as shown by the chart below. Meanwhile the rival China Unicom has 4.8% (7.56 million) of the 2G+3G customer base (157 million) on 3G (by end of June 2010):

Another rival, China Telecom, is not publishing 3G numbers. The MIIT* Q1’CY10 3G numbers for China Telecom (CDMA2000) were 5.57 million, i.e. 8.5% of their total CDMA subscriber base (65.45 million).
*Ministry of Industry and Information Technolog
y

Overall 3G market share in Q1’CY10 according to the above MIIT report:  42.5% China Mobile, 30.8% China Telecom, 26.7% China Unicom. For end of May a China Telecom “official said it now has between 6 million and 7 million 3G subscribers”, i.e. about the same number as China Unicom (6.5 million).

The follow-up MIIT report for end of June 2010 is indicating 7.18 million 3G subscribers for China Telecom. When combined with the company’s July 20 stock market closing report this would be 9.6% of their total CDMA subscriber base (74.52 million). Overall 3G market share at the end of H1’CY10 corresponding to the follow-up MIIT report would be: 41.5% China Mobile (-1% vs. Q1’CY10), 28.5% China Telecom (-2.3% vs. Q1’CY10), 30% China Unicom (+3% vs. Q1’CY10). A significant gain for the W-CDMA!

The 3G numbers in China are well below of other geographies. See: Could China close the gap in mobile Internet? It should! [July 21] The Chinese government and all the three mobile operators are therefore making extraordinary efforts to close the gap between China and the rest of the world.

There is also an OPhone SDN (OPhone Software Developer Network) community site: http://www.ophonesdn.com/. Here you can find the OPhone SDK Documentation in English, currently for v1.5: http://www.ophonesdn.com/documentation/index. The rest is in Chinese.

The platform is also going out of the mainland China:
first, to Taiwan
: Taiwan-based III to cooperate with China Mobile to develop OPhone [brief, June 10], China, Taiwan agree on Android, Ophone, WiMax, TD-LTE, more [detailed, June 10]
then to US and RoW: China’s OPhone to find its way to US as Android+ [May 28, 2010]

China, Taiwan agree on Android, Ophone, WiMax, TD-LTE, more

Beyond Android 2.1

UnwiredView: Android 3.0 Gingerbread details: 1280×760 resolution, 1Ghz minimum specs, mid-Oct. release [Jun 30]
then: Revisiting Android 3/Gingerbread details post. Some corrections, clarifications [July 2]

Between these two original English posts has been an avalanche like reporting and discussion (almost half million hits!) of the Android future, all based on this source alone (directly or much more indirectly).
Note: The funny thing is that UnwiredView’s Staska (definitely a Russian speaker) has used as a trusted source the [30:36 – 38:45] time duration part of the Russian podcast Айфономания, серия четвертая, Выпуск 19 (or this one). One thing I would include here from that podcast: “As of today the number of daily Android activations has reached 160 thousands. With this Android will be #2 behind Symbian before the end of 2010”.

This is a typical reporting based on the UnwiredView source:
Android 3.0 may ship in mid-October, carry minimum specs [Electronista, June 30] originally named: Google may fork Android 3 to guarantee experience
which – however – worth to mention here because it has a whole chain of links to previous/other posts on the pressing issues with current Android versions, and these
also validate very much the original rumor (indepedent of its origin)
Android 3.0 to hasten the end of custom UIs? [Electronista, June 16], originally named: Android’s Gingerbread may hurt HTC Motorola
Android Team “Laser Focused” On The User Experience For Next Release [TechCrunch, June 16]
Android to end app fragmentation by 3.0? [Electronista, March 29], originally named: Android to detach core apps from OS updates
Exclusive: Android Froyo to take a serious shot at stemming platform fragmentation [Engadget, March 29]
Sprint Android 2.2 plans trigger outrage, highlight OS woes [Electronista, June 25] originally named: Evo 4G and other Sprint phones reach 2.2 soon
Sprint expects to launch Android 2.2 in near future [Sprint News, June 25]
Adobe posts Flash 10 for Android, leaks Android 2.2 upgrades [Electronista, June 22] originally named: Adobe outs mobile Flash 10 only for android 2.2
HTC promises Android 2.2 updates in 2010 [Electronista, May 20] originally named: Froyo coming to company’s latest Android phones
Samsung won’t upgrade Behold II, shows Android fragmentation [Electronista, May 28, 2010] originally named: Samsung says Behold II can’t go past Android 1.6

E-reading SaaS wars next to e-reader wars

Monday’s announcement from Amazon, Free Kindle for Android App Now Available [June 28], has generated quite a stir on the web. My time duration (of the first 24 hours) and subject specific search brought back ~277 000 hits. From these I would just mention two which might best express the reasons for this excitement:

With Kindle for Android, Amazon’s Winning Strategy Is Complete to which I would add the following image and acompanying text from the Amazon Kindle site to make it crystal clear:Our Whispersync technology synchronizes your Kindle library and last page read across devices, so you can always pick up right where you left off. Buy a book once, and read it anywhere.

Let the e-Reader Content Wars Begin which I would rather call: e-reading SaaS wars.

This is in addition to the device wars started a week before:
War of the e-readers: Kindle, Nook & Kobo
Barnes & Noble Introduces NOOK Wi-Fi® and Lowers NOOK 3G Price, Giving Book Lovers Greater Choice and Even Greater Value [June 21]:
– At Only $149, Wi-Fi-Only Addition to NOOK Family is the Most Full-Featured, Low-Cost eBook Reader on the Market, Now Available Online at http://www.nook.com
– Bestseller NOOK 3G is First Dedicated eBook Reader with Free 3G Wireless and Wi-Fi Connectivity Available at $199
– Latest Software Update to Both NOOK Models Offers NOOK Customers Complimentary Access at All AT&T Wi-Fi Hot Spots and Improved Reading Features
Amazon Kindle Now Only $189 [June 21]
• to which Barnes & Noble responded with a Product Comparison Chart, NOOK 3G and NOOK Wi-Fi and eBookstore factsheets, emphasizing that on $189 Kindle 2 there is no:
– color touch screen;
– Wi-Fi®/802.11b/g, Free Wi-Fi® in all Barnes & Noble stores and Free Wi-Fi® in all AT&T hotspots;
– memory expansion (via MicroSD);
– browsing and exclusive content in Barnes & Noble stores;
– EPUB and eReader formats supported;
– digital lending; and
– replaceable battery
(indicating just Word document support and text to speech as missing features)

The 3d, latecomer to this competition, Kobo has been represented in this battle by his business partner/shareholder, the US Borders Group:
Borders Offers Best eReader Values on Market [June 22]
– Company Bundles $20 Gift Card with Purchase of Kobo eReader
– Company introduces application for the iPhone and the iPad
which were added to Borders’ previous market offensive actions
:
Borders(R) and Aluratek Partner on ‘Libre’ eBook Reader Pro [June 1], First $119 Device Featuring Link to Borders eBook Store Available for Pre-Order at Borders.com
Borders Launches New E-commerce Site [May 27]
– Borders.com features unique Magic Shelf™ technology and exclusive video programming that brings a real bookstore experience online
In-store kiosks will introduce Borders.com shopping option in Borders stores nationwide
for which they have secured all the necessary vendor alliances.
Borders(R) Launches Digital Initiative [May 07]
– Pre-Orders Now Open for Kobo(TM) eReader;
– eBook Store and Apps Unveiled Next Month
Spring Design and Borders Announce eBook Agreement [Jan 7]:
“an agreement in principle to feature the upcoming Borders eBook store powered by Kobo on the new dual display Alex(TM) eReader later this year”
Borders Partners With Kobo to Deliver eBooks [Dec 15, 2009]:
“Through the partnership, Borders will launch a new eBook store integrated into Borders.com and powered by Kobo. In addition, Kobo will power a Borders-branded eBook store for multiple mobile devices. Sales through these Borders-branded eBook stores will be booked by Borders. Kobo’s mobile applications are device neutral, which will enable consumers to purchase eBooks from Borders on popular smartphones such as the iPhone, BlackBerry, Palm Pre and Android, as well as other devices. Borders and Kobo plan to launch these new services within the second quarter of 2010.”

Borders’ offering is therefore coming quite close to that of Amazon and Barnes & Noble. Because of the choice of e-readers it is even technically more flexible. From e-reading SaaS point of view their current [June 30] state is as follows:

It looks quite similar in concept and plan to that of current Amazon (see the picture in the beginning) and Barnes & Noble as well.
Note: from B&N’s product comparison chart it is clear that they are equal to Amazon’s offering from e-reading SaaS point of view, only the Android smartphone support is not there yet, see B&N Reader for Android Phones?.

Such a look however is deceiving. First of all the Kobo e-reader has just USB and Bluetooth connectivity (see Kobo’s eReader Device Comparison) nothing like Kindle 2’s USB and 3G, or Nook’s USB and 3G/WiFi. Also the $120 priced Aluratek‘s Libre Pro has just USB connectivity. For at least this very reason the “last page read across devices” functionality is not available in Borders’ current e-reading SaaS experience, supplied by Kobo. Competition however will force both Kobo and Borders to introduce e-readers with WiFi and/or 3G connectivity when their e-reading SaaS should also be upgraded for the smooth sharing and syncing experience provided now by both Kindle and Nook.
Note: without the WiFi / 3G connectivity – in addition – you cannot get e-books directly to your reader, your free e-reader desktop app (PC or Mac) should be used first and then the purchased e-books loaded over through the USB or Bluetooth connection. This is considered to be rather inconvenient by today’s standards.

The wars for both e-reading SaaS and e-readers is therefore very important to create a level playing field (in the US) in terms of complete experiences and affordable offerings. We should therefore welcome these wars as essential to mass adoption of e-reading (in the US, which then could be followed by other countries quite soon).

Additional information:

Kobo e-readers are already sold in other countries as well: currently in Australia, New Zealand and Canada. The Canadian Indigo Books & Music Inc, Canada’s largest book retailer, is actually the 58% majority shareholder of Kobo, while – in addition to Borders’ – there are other shareholders from Australia and Hong Kong as well. This coalition is definitely aiming at taking the international market not only in e-readers but in e-reading services launched by local book retailers as well. See: Kobo Powers its First International eBook Store.

The hardware used by Aluratek in his Libre Pro is from the Chinese manufacturer, JCNIP:
JCNIP M218A e-book device coming this month
[Sept 5, 2006]
JCNIP new ereader—M218B [Oct 11, 2007]
which appeared under Dr. Yi brand for their original Chinese market as: Dr. Yi-M218ADoctor M218A + EasyDoctor M218A + enhanced tradeDr. Yi M218B (sources translated by Google). Their latest model, the rechargeable battery powered M218C is sold currently in China for 999.00 yuan, i.e. for ~$150.

This hardware has also been introduced into the US market much earlier by ECTACO:
New jetBook e-book reader from ECTACO set to change the way we read forever! [Mar 21, 2008]
ECTACO Inc. releases the most affordable eBook Reader – the jetBook-Lite [Oct 27, 2009]
Ectaco Jetbook – a brief review [Feb 5, 2010]
Ectaco jetBook Lite eBook Reader Now $99 [June 17, 2010]
The $99 price is clearly showing that e-reader wars will continue to that price level, which could be reached by some other e-readers eas early as by Christmas this year.

All these devices are using a really low-cost, unique and almost unknown screen:
TOSHIBA MATSUSHITA DISPLAY TECHNOLOGY CO., LTD. STARTS MASS PRODUCTION OF 5-INCH VGA MONOCHROME REFLECTIVE-TYPE TFT LCD
[Jan 16, 2007] Features both High Resolution and High Reflectance
This manufacturer has since been renamed:
Toshiba to take over LCD joint venture with Panasonic [Apr 1, 2009]

Barnes & Noble Introduces NOOK Wi-Fi® and Lowers NOOK 3G Price, Giving Book Lovers Greater Choice and Even Greater Value