HP Scraps Tablet Computer

1 05 2010

In an update to the Platform Wars discussion yesterday, HP announced that it was scrapping its newest tablet computer product and going back to the drawing board.  There are many news articles about this today, but the main reason given is that the Windows 7 OS was not competitive with products already in the market  such as Apple iPad.  The product issues include:

  • Weight
  • Performance
  • Battery life.  Nowhere near the 7-10 hour battery life of the iPad.

Note that HP does have other tablet PCs on the market today, but it is only the newest on that has been scrapped.

Tablet Market Requirements Have Totally Changed

By leveraging the iPhone and iTunes to differentiate from other eReader products, Apple has completely changed the dynamics of both the eReader and the tablet computing marketplaces.

  • eReader vendors like Amazon and Sony are competing with a product that does far more than just read electronic documents at high resolution.  The iPad is differentiated by their 185,000 apps and the power of the iTunes environment.
  • Tablet computer vendors like HP and Dell have seen the game change overnight.  Competition in the space used to be about putting a version of Windows on a small portable device.  Now, Apple has put new requirements on the industry that will be hard to respond to:
    • High resolution screen
    • Touch interface
    • Powerful online support with apps, music, podcasts
    • Long battery life
    • Quick response time (from a very lean OS)

Apple made a smart move in using the iPhone as the platform for the iPad.  Most if not all iPhone applications automatically run on the iPad.  The problem is that all of them were built to work with the small display size of the iPhone.  Apple dealt with that problem by adding a “2X” function that just doubles the display size of apps – and instantly almost all iPhone apps look bigger on an iPad.

HP Tablet Computer Options

The timing of this announcement is interesting in terms of the options before HP.  They clearly want to be a major player in the tablet computing space.  The problem is that Apple has completely  changed the market requirements for every vendor in the space.  HP’s strategic options:

  • Keep working with Windows 7 and try to get it right. HP has been a loyal strategic partner of Microsoft and going another direction might damage a very successful partnership.  However, it does not look like Windows 7 can compete in this space as it is now defined.
  • Move to Google Android.   It’s open.  It’s free to use.  They could leverage the Google application community.  This would seem to make a lot of sense except for…
  • Palm webOS.  HP just paid $1.2 Billion for Palm, so it’s hard to imagine them going in any other direction with their tablet computers.  iPhone/iPad and Android are gaining a lot of market momentum and developer support.  HP will have a lot of ground to make up in a short time.

General Observations

  • Apple has done an amazing job of disrupting the eReader business by extending the functionality of their product with iPhone/iTunes capabilities.
  • In the process, Apple has apparently also disrupted the Tablet PC market.  Two adjacent markets with one stone.  Amazing.
  • Product requirements:  Everybody building Tablet PCs was thinking in terms of smaller Wintel products until a couple of months ago.  The lesson to learn is: Listen to your customers problems, not how your customers think they should be solved.

Full disclosure: I am often critical of Apple for being proprietary, but I have to give them top ratings for innovation and strategy here.  This is an example of product strategy that will live on in MBA school case studies for a long time to come.

Other Articles on HP Scrapping their Tablet

CNN Money

Reuters





The Next Round of Platform Wars

30 04 2010

We have had lots of platform wars in the past and they are always difficult for software developers until the ultimate winner is determined.  For example:

  • PC Desktop.  Wintel won this one fairly early but there were a lot of entrants in that race.  And, remember OS/2?
  • Server Market.  It looked like Sun/Solaris was the emergent winner in the late 1990’s but I think we have to declare Linux as the winner in this one.
  • Smartphones.  The race is on.  At stake is control of the definition of the winning software development platform in that space, which is THE big growth platform of this decade.

ComScore Smartphone Market Share

Top Smartphone Platforms

Market Share as of February 10, 2010

Platform Share % Y/Y Growth %
RIM 42.1% +3.1 %
Apple iPhone 25.4% -0.004 %
Microsoft 15.1% -26.5%
Google 9.0% +137.0 %
Palm 5.4% -25.0 %

Reading the Market Share Numbers

This is a classic “confused” market from a software developer point of view:

  • RIM is the leader but growing slowly.
  • Apple showed little y/y growth, but has undoubtedly accelerated since these numbers were reported. The iPad will add to the platform numbers even though it is not a smartphone.
  • Microsoft and Palm are in sharp decline
  • The leader in growth is Google, but they are coming from a smaller base.

This is far from over.  Another view is by applications on the platform.  I don’t have the growth numbers on these, but the growth in applications has been red-hot for both.

Current Applications

  • Apple reports 185,000 apps
  • Google reports 38,000 applications

Alternatives for software developers

  • Apple and Google are both hot.  Port to both.
  • Port to Google first as there is a better chance of being the first in the application category.
  • Port to Apple first since it has the largest potential audience of app buyers.

The news on Wednesday of this week that HP would acquire Palm looks a little strange. In most network-effect markets, the market leader gets the vast majority of the profits.  In this case, the top two might be successful.  There is no #3 in a market like this.  It’s hard to figure what HP is thinking with this move.

The question is: Why would a software application developer spend resources porting to the Palm platform when they could be enhancing the competitiveness of their applications on Apple or Android?





Convergence and Social Media: Why Do We Care?

13 11 2009

Network Convergence

A lot has been written over the past few years about “technology convergence.” The problem is that there are many different technology convergences going on with different meaning and impacts for enterprise customers.   Let’s talk a bit about a couple of convergences and their impact enterprise social media.

Cloud Computing Convergence

Cloud computing convergence  is the coming together of three key technologies:

  • Server Hardware. These are the big computers with all the blinking lights mounted in racks in the back room. They do all the heavy lifting in the software application world.
  • Networking. These are the big routers and switches that handle enterprise IP network traffic.
  • Virtualization. This is software technology that applies a layer over server hardware and network equipment, allowing system administrators to manage their data centers as if it were a single giant pool of resources, assigning tasks to groups of computing or networking resources.

What’s happening is that network routers are becoming so powerful that vendors such as Cisco are adding general-purpose server blades to them in order to enable them to run software applications. That puts Cisco in direct competition with their former alliance partners HP and IBM. HP is retaliating by investing in their own HP ProCurve networking products and by acquiring 3COM. IBM has quickly moved to form alliances with Juniper Networks and others.

The convergence of these technologies is what is enabling a platform for a “cloud computing” architecture where hardware and networking resources become on large virtualized pool of resources organized to provided on-demand services over the Internet when and where they are needed.

  • For cloud computing service providers like Google and Salesforce.com, it means they can provide services to their community of users over the Internet to anybody who has a browser.
  • For enterprises, it means they can either purchase services from service providers or move their internal IT architectures to a “cloud computing” model to make their key services and data available to their mobile employees, partners, and customers as appropriate.

The bottom line for users, is that cloud computing service providers and enterprises are increasingly moving to a service provider model where their services are made available, on-demand, in a secure manner over the Internet to their mobile employees, partners and customers.

Networking Convergence

For years, we have all been using data over the Internet. Now, we are seeing more traffic from voice and video as well, all traveling over the same IP network. A high percentage of voice traffic still travels over carrier’s proprietary networks, but more traffic is moving to the “free” Internet every year.

Vendors like Skype have offered very low cost voice and video conferencing capability over the Internet for years.

This week’s announcement that Google acquired Gizmo5 immediately makes Google a serious competitor in that space.

The Impact to Social Media

There are a number of immediate impacts to Social Media that we will see in the very short term.

  • With data, voice and video running over the same IP networks, it will become much easer to integrate those services in interesting ways.
  • Social Media will not be limited to text and stored video. Network convergence will expand Social Media in the realm of real time communication with voice and video.
  • The “Cloud Computing” model will enable both enterprises and service providers to offer Web services inexpensively with high reliability and security.

So, what does this mean for Enterprise Social Media Marketing?

  • First, it will make you personally more productive. You will be able to access an increasing array of services, regardless of your location, to help connect with other people and to do your job more flexibly and better.
  • Second, it will provide new and better-integrated ways for you to communicate with your customers. Some quick examples:
    • When you want to communicate with somebody, there will be a rich array of options from short text messaging to full video conferencing.
    • Click on a name in an email or blog to talk to that person. No looking up numbers and dialing.
    • Drag & drop contacts to set up a video conference.
    • Ad hoc Video “Tweet-ups.”
    • Very direct customer feedback o products and product direction.
    • The quantity, quality, and velocity of customer feedback on your company and products will increase dramatically
  • Third, the companies that are the leaders today in Social Media may not be the leaders in 2 years. There is much market disruption and change yet to come.

For social media marketing, the relationship between vendor and customer is becoming less a matter of broadcasting the corporate message and much more of a two-way social interaction over an increasingly rich set of communication styles. The technology convergence trends are key enablers of this change.








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