Thursday, February 8, 2007

The new tech zaphyr: Getting hotter by the day!

Helo Helo
Long time no type...but couldn't help... work as usual..

Ok it's time to skip idiosyncracies a bit and focus on a recently noted global phenomenon.

Interesting trend I observed recently...Apple Computers is now known as Apple Inc. Essentially, a straightforward attempt on Mr. Job's part to go with the new foun didentity of the company as a provider of more devices & solutions than just computers - the iPOD, iTV, iPhone along with the traditional iBook & iMac's. They see themselves now as more than just computer manfacturers...and hence the shift. Very strategic in my opinion.

You may ask what's so strategic in this...looks like an obvious reason and expected action. But there's more to it than what meets the eye.

Rewind back a year and you will recall another strategic shift...IBM dropped out of machines and moved to solutions, bringing in Lenovo (a little known Taiwanese firm till then) as the name for its machines. This is the same IBM that, at one stage (early 80's) was seen as the "Big Brother" and was the largest PC manufacturer in the world...imagine stepping out of those shoes..unimaginable then atleast!

A few months back, Microsoft revealed Zune...an MP3 player to take on the iPOD (it failed miserably but that's another story...too much too "zune" i say!). But they are holding on and will definitely become a force to reckon with soon. They also moved in with XBox...a gaming device..earlier a prerogative of the likes of Sony & Nintendo mostly...Microsoft is the same firm that has traditionally made OS's (okok, copied mostly) & software. Now they are pushing Media Centre PCs that show Live TV...Their recent forays could not be imagined a couple of years back...

Google started as a web search engine like a lot many others (we have had ask jeeves/ask forever!). They then launched a mail platform (Gmail), social networking (Orkut), Shopping (Froogle), Groups, Patents, Books, Blogs (yours truly Blogspot), Videos, News etc etc..I check my mail on google, blog on google, network on them, my custom start page delivers all the news, info, language translation, chat & conference on Google Talk, the works...! How often do I leave their servers anyway?!!

Want to get scared? Click to : Check out google, Microsoft & Yahoo acquisitions over the years....

What the hell is going on? Are we not to trust any business instincts with market dynamics & corporate strategies changing literally on the fly? It doesn't take time nowadays...don't expect change to be planned over "years"...months are the norm now!

I can share a perspective that makes a bit of sense somewhere or so I hope.
IT market is dynamic, growing at a lightening pace..blah..blah..etc & IT biggies are moving towards consolidation...This is happening at two distinct levels:
1. Platform:
Apple has Tiger OS & iTunes, Windows has Vista etc. They are now offering devices that run on these platforms alone. An iPhone will have Safari browser, email & possible office applications, thus rendering the need of a notebook/PDA..its a blackberry, iPOD & phone bound in one gizmo. While its too early to say that it will replace notebooks (PDA's have been there forever..unsuccessfully), but blackberry has shown the way & finally PDA's are overcoming the traditional shortcomings - low power, limited apps etc.

2. Hardware:
Serious consolidation here as we all can see around us. Gizmos combined together, 100 GBs HDD & a gig of RAM fit in a HCL Nano PC that is as big as a book, Microsoft Media Centre PCs are throwing conventional TVs out of the window, iTV doing the same, XBox functions as a superb Hi-Def DVD player etc.

If this is not enough, now codes are replacing hardware! A little shell extension loaded on a PC turns your Gmail Account into a 100Gig storage hard disk...for free. Should Samsung & Hitachi shut shop? AJAX has enabled applications to run from a web page instead of showing static data...end of app installations and consequently heavy Hard Disk/RAM requirements?

Who needs a server now? We needed it for Intranet in office, data storage and basic PC infra management. Atleast these were the key reasons. Now people browse wirelessly-anywhere & not just in office, data storage is becoming remote (google drive/file upload sites/increased email speed & carrying ability) & managing PC's is moving again towards remote management as PCs are driven out in favor of notebooks/PDA's/Blackberrys.

So if we don't need PCs or Servers, whats gonna happen to brands like HP & Dell who specialise in just that? It really is high time that they thought it over, lest HP goes back to selling printers alone!

What is written above is reality, not projections. This reality only took months to invade our world, not years. And the future seems brighter, smarter & even more consolidated. Nobody wants to carry multiple devices, change domains & connections and run between providers & help centres.

So what's the way forward?

Step 1: Create a platform. iTunes, Vista, Symbian show that owning platforms is a very good idea to ensure device compatibilities & ease of transition in future. Nokia, a hardware manufacturer, was thinking just this when they acquired Symbian. iTunes came way early...Apple simply weaved its products - iPOD, iTV & now iPhone around it. They even tried iTunes to Motorola for their Razr range of phones...nice way of testing don't u think?!

Platform can even include browsers (IE7 & Safari - both in use on mobile devices!). Google tied up with FireFox & zillion other software providers (including open source) to offer its toolbar as standard accesory..hence effectively owning the browser!

Platforms also help in helping customers get used to your products, generate familiarity & allow immense ease of transition when products start getting combined. Meanwhile when all products are running on a common platform, customer stickiness is guaranteed as the google server example above shows! Its like owning the "Living Space" of the consumer...wherever he dips his hand, he engages with just one provider.

Step 2: Offer ease of ownership & usage: iPOD is easy, portable & fun to use...and its one dead serious product..brilliant in every which way. So is Zune. So is the XBox. Plus they are not expensive to own initially...platforms are mostly free & these products don't really cost a bomb. 18K indian rupees for an iPhone with all those features is ABSOLUTELY affordable & offers VFM.

Step 3: Engage the audience. Be it via gaming devices or owning the web platform to ensure he only sees your content (sounds malicious..but consumer has a choice still), the longer the time he spends with you, the better he is for your business. No wonder apple is working on gaming, interactive websites & forums are becoming standard and more & more brands are focusing on what "activities" they should do to engage & interact with consumers. That's the only way they are gonna listen in this new world full of too much information to capture any attention for long...

And keep thinking...not just about how to sell the latest range of PCs!

Note: You may notice that all through the article, I have used the terms consumer & customer for the same set of people. While I am aware of the difference between the two, I am hoping that the note above should make you think that the boundry is ever diminshing...