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Tristan Louis

• Five social media presence strategies
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• Who owns your identity?

This week’s announcement from Nokia that it would get rid of its own platform and focus on Microsoft’s seems to mark two key milestones: the end of the Wintel world and the beginning of the Winkia one.

The post-PC world

Since the early 1980s, the personal computer has been sitting at the core of people’s experience with technology. But several trends have chipped away at that dominance for the last few years, first with the rise of dedicated devices with computer-like attributes (eg. ereaders and MP3 players), then with reintegrated devices that brought several of those features back together in a more portable form factor (smartphones and tablets).

Along that curve, Microsoft and Intel found themselves in an increasingly difficult position, largely trying to hold on to the legacy platforms that sourced the largest portion of their revenues while unsuccessfully trying to find ways to play in the new world.

Along the way, the two companies grew farther apart. In late 2004, I had called for Apple to move to Intel chips, a call that was met with derision by most people at the time because they thought Intel would never do anything that could run counter to Microsoft’s worldview. A couple of years later, Apple and Intel did make the move, creating what was possibly the first wedge in the Wintel cartel.

Last month, Microsoft made an announcement that was probably similar in terms of overall strength, looking to ARM processors as the future, and moving to a space where their reliance on Intel processor was relegated to the back of the bus. It wasn’t entirely clear at the time but one could see that the Wintel alliance had been hobbled and could possibly die off soon (in related news, HP announced this week that it would consider running its webtop OS on PCs).

Meanwhile, it was only a year ago that Intel and Nokia announced a strategic partnership, where they would merge their OS platforms. The intent there, I suspect was for Intel to start pushing its own chips into Nokia devices, allowing them a play they had longed for in the mobile space.

Yesterday’s announcement from Nokia that it would abandon its own OS effort and focus on Windows Phone 7 probably infuriated some people at Nokia.

Why Winkia will work: Developers

Of course, there is a lot of doubts about the partnership. High level partnership have a tendency to fail (in fact, Horace Dediu has shown Microsoft’s particularly bad track record in the mobile space).

But I disagree. Earlier this year, I argued that Microsoft would acquire Nokia for its distribution footprint. At the time, I did not elaborate but here’s how I see things working.

For starters, let’s look at areas of strength and weaknesses. Microsoft still has a large development community used to developing with its toolset and aching to get into the mobile space. With Windows Phone 7, that crowd now can use the same skills, programming languages and development kits they have been used to for years to create for years.

But the challenge that was presented to date was that there were no users of Windows Phone 7. While the operating system has generally been well received by critics, there has been precious few apps developed on top of it to date. Part of the reason for this, I suspect, is that there isn’t really a built-in public for those apps yet so many developers are waiting on the sidelines. In fact, this is something that people at Microsoft were painfully aware of, as they are now starting to explain to developers that the deal will bring a larger public for their apps. In a recent blog entry, Matt Bencke, Microsoft’s General Manager for Developer and Marketplace in the mobile space, said:

In simplest terms, this alliance can dramatically increase the customer base for Windows Phones, and, by extension, your apps and games. […] For example, Nokia already has strong relationships with operators in more than 190 markets. Nokia also manages an application marketplace that delivers 4 million downloads per day; a channel that will complement the existing Windows Phone Marketplace experience to bring Windows Phone developers and Nokia customers together.

[…]

From a tools and platform perspective, we’re working to make it as easy as possible for developers to take advantage of this new opportunity.

So the message they send here is clear: more people to use your apps and you can use the same tools you know already. This is bound to help create a market where lots of new apps will end up being created in a Windows Phone 7 environment only.

Why Winkia will work: Footprint

So how big is the marketplace we’re talking about? Well, before we enter this arena, let’s make a few key assumptions: growth in the mobile space is largely coming from the smartphone category. In fact, the entry of sub-$100 android phones is basically going to kill the concept of smartphone altogether by just gobbling up the regular phones and pushing the trend to every phone becoming a smartphone. So the game here is for the whole pie instead of a smaller portion.

So how does Nokia do in that space? The Symbian operating system, the one the company is abandoning, was on 37.6 percent of smartphone devices in the last quarter but Nokia overall marketshare in the mobile space was 28.9 percent.

How does it compare to others?  In the OS game, Nokia has a 15.1 percent lead over Android, its next nearer competitor (Apple comes in 4th, behind RIM) and an 11.3 percent lead over Samsung in the overall mobile space.

Meanwhile, Microsoft was nowhere to really be seen, with a mere 4.2 percent of the OS market, coming in above “others” in the OS category.

If the tie-up had happened last quarter, the combined team would hold first place with above 40 percent of the smartphone market, almost double their nearest competitor (Android) and almost triple Apple’s own offerings.

With that large a footprint, any developer will have to think about supporting those devices.

Furthermore, Nokia has a long-established relationship with phone carriers around the world (while I have not checked the data, I would be ready to venture that there isn’t really a phone carrier out there not carrying some Nokia phones). That kind of network will be hard to defeat moving forward.

Why Winkia will work: Patents

When he unveiled the first iPhone, Steve Jobs made it clear that there was going to be a huge legal fight in the mobile space.  During the unveiling, he highlighted that oncoming fight in the following way (emphasis is mine):

We have invented a new technology called multi-touch. It works like magic, you don’t need a stylus, far more accurate t
han any interface ever shipped, it ignores touches, mutli-finger gestures, and BOY have we patented it!

[…]

We filed for over 200 patents for all the inventions in iPhone and we intend to protect them

Apple later sued HTC and Motorola over some of those patents.

Meanwhile, Microsoft has not been shy in suing some companies over patent infringement relating to Google Android. The operating system from Google continues to be challenged in court, the most recent lawsuit coming from Oracle over alleged infringement of Java related patents.

So all and all, the mobile game is one dominated by patent fights. In the lead-up to this week’s announcement, Nokia’s CEO was touting its patent portfolio as something to look at. A story on AllThingsD put it as such (emphasis is mine):

Friday’s investor meeting will also address other aspects of the company, including its services strategy, its plans for its Navteq navigation unit and its plans to leverage its huge patent portfolio.

Between Microsoft’s patents in the mobile space and Nokia’s, I suspect we are soon going to see some lawsuits emerging from the new partnership and going after different aspects of the iPhone and Android devices (though I suspect Google will be the first target, with the iPhone being left for later).

Conclusion

Between Microsoft’s strength in the development community, Nokia’s strength in the hardware and distribution realm, I would venture that we may be seeing the beginning of a major shift in the mobile landscape. Both of the partners are quite strong and I would not be completely surprised if they were to both be able to reverse their fortunes in the mobile space. I also would not be totally surprised if, at some point down the line, Microsoft were to announce that it is taking over Nokia and folding it in. An interesting thing is that the cut in the overall market capitalization of Nokia after the announcement has now left it in a position where Microsoft could buy it in cash if it felt like it.

However, there are still a few things to be ironed out. For starters, Microsoft has just tied its OS to one partner and may have difficulties convincing other players to build mobile phones. Expect Samsung, LG, and HTC to stop investing in Windows Phone 7. So if Nokia fails in regaining some momentum as a result of this partnership, it may take with it Microsoft’s hopes in the mobile space.

Tristan Louis is the founder and CEO of Keepskor and writes the influential tnl.net weblog, where this was initially posted under the title Winkia rising.

Read more posts on TNL.net »

Today: Apple leads the soaring mobile app market. Plus: Applied Materials buys Verian. And: Google pulls heartstrings on TV, and Silicon Valley stocks.

Apple likely to remain dominant in mobile app market

Revenue from mobile apps is expected to soar nearly 78 percent this year to $3.8 billion, and Apple is likely to maintain its spot as the industry’s big dog for years to come, according to a new report.

Researchers at IHS iSuppli say that despite stiff competition from the emergence of Android, Cupertino-based Apple will control 76 percent of the app market by the end of 2011, reaping $2.91 billion, a 63.4 percent increase over last year. Android, Mountain View-based Google’s mobile system, is expected to see its revenue rise a whopping 295 percent this year, to $425.4 million, as it bumps RIM to become the second-largest app store.

The report predicts app revenues will continue to show remarkable growth, hitting $8.3 billion in 2014, with Apple losing ground but still holding a comfortable 60 percent of the market.

iSuppli predicts an impressive 10.3 billion downloads for Apple in 2011, compared to 5.8 billion for Android and 772 million for Research in Motion’s BlackBerry App World, as the number of downloads is expected to almost double from 9.5 billion in 2010 to

18.1 billion in 2011. But that’s nothing compared to 2014, when 33 billion downloads are forecast.

But Apple’s continued dominance is no sure thing, as the tech world has a funny tendency to change quickly. The iSuppli report adds a caveat that a new player in the game, such as Microsoft’s Windows Marketplace, could still become big enough to shake things up. And the folks over at PC Magazine wonder if Apple’s dependence on only a handful of devices will be its shortfall, noting that Android has a much wider range of devices and its exponential growth is closing the gap.

Until then, though, Apple will be happy to hang on to the big lead it got by getting into the game early.

Apple shares rose to $1.37, or 0.39 percent, to $349.57. Google rose $1.90, or 0.36 percent, to $535.79.

Applied Materials to buy Varian

Santa Clara chipmaker Applied Materials is making up for lost ground by purchasing rival Varian Semiconductor for $4.9 billion in cash in the Valley’s biggest semiconductor deal in years.

Bloomberg News reports the move will get Applied Materials back in the ion-implantation game, a very specialized and highly technical process in the creation of microchips at which Varian has surpassed Applied Materials. “You’re getting a very high-quality company,” analyst Patrick Ho told Bloomberg. “They basically lost all their market share to Varian.”

CNBC says the ion technology is crucial to the creation of next-generation chips, such as more energy-efficient chips with 3-D transistors that Intel just happened to announce today. That indication of a more energy-efficient future was likely key for Applied Materials, as Varian’s technology

is also used to make solar panels and LED lighting. The booming smartphone market is seen as another gold mine for chipmakers, as the Merc notes.

Applied Materials shares fell 15 cents, or 0.98 percent, on the news, to $15.09.

Google launches TV ads

Google, which in a report Monday was seen as widely admired but perhaps lacking in heart, is hoping to strike an emotional chord now with a pair of TV commercials to promote its Chrome web browser.

The 90-second ads, which began airing Tuesday, are Google’s biggest offline promotion ever, according to the

Jim Patterson, founder and CEO, Mobile Symmetry

Editor’s Note: Welcome to our weekly Reality Check column. We’ve gathered a group of visionaries and veterans in the mobile industry to give their insights into the marketplace.

Several companies provided earnings and further guidance last week. Interestingly enough, all of these earnings results were shaped by one company – Apple Inc. (AAPL) Many of you remember one of my first columns for RCR Wireless News called “The question every board member and shareholder wants you to answer,” which detailed the sprawling effect of Google Inc.’s (GOOG) strategy. For 2011, however, the questions (and answers) now circulate around Apple.

The Apple effect is far flung. As we will see, it impacts Microsoft Corp.’s (MSFT) outlook for PC market growth. Verizon Wireless’ (VZ) iPhone launch certainly impacted ATT Mobility’s (T) results (as we saw last week). Sprint Nextel Corp. (S) even attributed the fact that they would likely have had positive postpaid net additions had it not been for the Verizon Wireless iPhone launch and ATT Mobility’s subsequent $49 Apple iPhone 3GS 8GB offer. Time Warner Cable trumpeted 360,000 iPad app downloads in the first minute of their earnings conference call. And Research In Motion Ltd. had a not-so-shocking announcement to that their shipments in the current quarter would be down, and that their phones shipped would be at the lower end of the range (meaning, less Torches and more Curves).

And, as we discussed in last week’s column, the industry influence is clearly translating into shareholder sentiment. Even with the increased press coverage over the iPhone’s location data storage, Apple has created $21 billion in value for their shareholders over the past two weeks. Others have gained (and, surprisingly, improved their year-to-date gains) but Apple has set the standard.

Let’s see how Apple impacted Sprint Nextel’s earnings. Overall, Sprint Nextel reported good earnings, and, while they did not improve their post-paid retail gains over 4Q 2010, they certainly showed that they could pass through a usage-based data price increase to their customers. Sprint Nextel still has a ways to go in their earnings before interest, taxes and depreciation margins (there’s a good chance that T-Mobile USA Inc.’s absolute EBITDA will actually be higher than Sprint Nextel’s, as it was throughout 2010; Sprint Nextel’s margin as a percentage of service revenues is still 1,300 to 1,500 basis points below T-Mobile USA). Many analysts struggle with the sustainability of Sprint Nextel’s prepaid play, which just received a new entrant, Verizon Wireless, last week.

But one of the biggest questions for Sprint Nextel was “can you grow without the iPhone?” Dan Hesse, Sprint Nextel’s CEO, responded as follows:

“… we do we typically see a significant impact upon the launch of a new device or in this case, the iPhone 4 on a new carrier Verizon. But it continues to be – the iPhone does continue to be a significant, if you will, competitive threat to us. First, in the hands of ATT and then in the hands of Verizon. The additional impact of the iPhone has had on us recently and continues to have it is, ATT is pricing the iPhone 3GS at $49. So you have to think about both Verizon’s iPhone 4 and of course, ATT’s response to that, which I alluded to in my opening comments, not only continuing to offer the iPhone 4 but offering a lower-priced 3Gs. So the iPhone continues to be, quarter after quarter, a successful device and one that provides very strong competition to Sprint. But needless to say, Verizon’s introduction of their new iPhone in Q1 this past quarter did have a notable impact on our net add performance for the quarter.”

Some will claim that Sprint Nextel reached their high mark at 4Q 2010, and that the post-paid losses will continue at 2010 levels for the foreseeable future. Had Sprint Nextel not taken the steps to shore up their Clearwire Corp. relationship and coordinate network planning with other companies, I think that would have been the case. But with post-paid churn at 1.84% (an incredible number in light of Sprint Nextel’s historical churn levels), 4G LTE launches starting in late 2011, and a decent non-iPhone lineup, we should see more positive net add figures than negative ones.

Others will claim that Sprint Nextel is on the verge of overtaking ATT Mobility in the net additions race in 2Q, which I think could happen if the new Evo device launches are as successful as last year. The first quarter has traditionally not been Sprint Nextel’s strongest and the second quarter tends to be very strong for post-paid churn. Sprint Nextel is investing in 3G data (with little need to invest in voice as usage continues to drop for both post-paid and pre-paid users), and the Clearwire commitment should help bolster existing market bandwidth augments.

But no iPhone? iPad2? Even into 2012? I can’t see it. Apple hinted strongly in their conference call that they are open to additional carriers. Here’s Tim Cook’s quote on the topic:

“On the carrier side, I don’t want to get into specifics about the CDMA or GSM for that matter. But we are constantly looking at where we should bring on incremental partners. And as we have said earlier, we brought on 3 this quarter, 3 large ones with Verizon, SKT and Saudi Telecom. That’s on top of the ones that we brought on in December where we added O2 and Vodafone in Germany. And so we are constantly looking and adding where it makes sense, and you can keep confidence that we’ll continue to do that.”

We also know from some recently published reports that some within Apple see an opportunity to extend the life of the 3GS through the prepaid segment. This would have been unthinkable just a few years ago and is indicative of how far we have come in the past two years with the introduction of smartphone operating systems into MetroPCS Communications Inc., Leap Wireless International Inc., Boost Mobile, Virgin Mobile USA and others. Frankly, the idea of Wal-Mart selling the iPhone 3GS as part of their Straight Talk plan should send shivers down the back of Samsung Electronics Co. Ltd. and LG Electronics Co. Ltd. Could Wal-Mart, one of the largest distributors of the iPod and iPad, sell the iPhone as a wholesale product? You bet.

And Microsoft? According to a recent presentation from Microsoft, the Windows/Windows Live division is about 25% of Microsoft’s total revenues and a driver of cash for the company. In its presentation Microsoft notes that consumer PCs are tanking and about to get worse, and netbooks within the consumer PC segment have nearly vanished (remember when netbooks were the rage?). Microsoft benefitted from netbooks (as did Intel Corp. and others), but that benefit eroded quickly. The latest quarter shows how the iPad 2 momentum clearly changed consumer buying habits. The question now becomes “(When) will iPad users ever return to Microsoft?”

Microsoft is not going anywhere – they just crossed $50 billion in cash and marketable securities. A strong Nokia Corp.
(and hopefully stronger RIM/BlackBerry) relationship can provide an alternative if Microsoft gets their act together on applications. But a full year of iPad sales is starting to impact Microsoft’s growth outlook. What a change a decade makes.

Jim Patterson is CEO and co-founder of Mobile Symmetry, a start-up created for carriers to solve the problems of an increasingly mobile-only society. Patterson was most recently President – Wholesale Services for Sprint and has a career that spans over eighteen years in telecom and technology. Patterson welcomes your commentsatjim@mobilesymmetry.com.

 
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When Microsoft and Nokia announced in February that they would be partnering for the production of Windows Phones, we outlined ten main points about the partnership that were important for consumers to know. The list inspected the effect the partnership would have on Nokia’s Ovi services, Microsoft’s Bing, Nokia’s Finnish workforce, and Windows Phone as a whole.

On Thursday, Microsoft provided further information about the partnership, giving slightly deeper insight into how the Nokia Windows Phones ecosystem will look.

1. Bing will be default search for All Nokia devices

In February, we noted that adCenter would supply advertising services for Nokia’s full portfolio. Part of this agreement involves shifting Nokia’s defualt search service to Bing.

2. Symbian/Nokia developers don’t have to pay to become Windows Phone developers

By dropping the $99 per year developer fee for Windows Marketplace, Microsoft is removing a possible deterrant for developers considering making a platform switch.

3. New Nokia app store, built on Windows Marketplace

Meant to simplify app distribution for multi-platform developers, the new app store will carry Windows Phone, Symbian, and Nokia Series 40 apps.

4. Nokia’s royalties to license Windows Phone are uniquely scaled

Since licensing is the main way Microsoft makes money on software, it should not be surprising that royalties are involved in its deal with Nokia. However, Microsoft said today that “royalty payments…reflect the large volumes that Nokia expects to ship,” suggesting a lower rate than other OEMs might pay to license Windows Phone 7.

5. Nokia is making billions

Even with all the resources that Nokia is getting from Microsoft: its software and distribution infrastructure, its marketing staff, and its search technology, access to Nokia’s gigantic international audience and fundamental mobile patent portfolio is still worth billions to Microsoft.

Why is this useful? Knowing how consumers are interacting or engaging with ads, including from which device, can tell marketers how to create more innovative campaigns. Just one indicator of how fast the mobile space is growing: local mobile ad network xAD is reporting their traffic has doubled in the last four month. Their numbers show that 1 billion ads have been served in the last 4 months.

“Understanding consumer behavior across online and mobile will become more and more important for advertisers, publishers and agencies — particularly as mobile usage continues to evolve,” said Scott Ernst, President of Compete. “Today, you absolutely must view digital consumers holistically; otherwise you’re designing campaigns, buying media and doing vital brand research with only a partial picture of your consumers.”

Tweet

I’ve been an Android user since the G1. Picked one up on launch day, in fact. I was working in an environment that was heavily embedded in open source, so the greater concepts that surrounded Android appealed to me. It was my first real smartphone, having only really been a feature phone user previously. Since the G1 I’ve spent quality time with just about every Android phone that has come out, but I’ve owned a Cliq, a Nexus One, and a Nexus S. As this popularity contest between Apple and Google continues to rage on, I couldn’t help but notice that other competitors had entered the ring with products that seemed, from a distance, appealing.

My experience with the Palm Pre was less than exciting. Though I did enjoy the UI, I couldn’t get past the hardware. I’ve played with my fair share of iPhones and iPads, and I’ve poked at the occasional Blackberry. I have not, however, spent any real time with any past or present version of Windows Mobile. My first brush with WinMo was with 6.5, and frankly it make my stomache turn. Then, the Kin came out, and left just as quickly as it arrived. So, here I sit, having made a bet with myself that I would give Windows Phone a proper shake by casting aside my Nexus S and only using the HTC HD7.

I chose the HD7 out of all the Windows phones due largely to the HD2′s success, and my appreciation for HTC’s phone designs. From a hardware perspective, there’s little difference between an HTC Android phone and a Windows Mobile phone. The only real difference is the lack of a Menu button in Windows Phone, and the Home button is designed like the Windows logo.

Aside from that, all of the same hardware functions you would expect are present. Power button, volume rocker, and Windows Phone’s all have a dedicated Camera/Shutter button, something that is less present in current Android phones, but not gone entirely. The HD7 also has a pull out stand that allows the phone to sit up in a landscape fashion, something HTC has been including more and more in their larger screen phones. On the HD7, the stand is wrapped around the camera but sits flush against the back of the phone in such a way that you’d never know it was there until you pull it out.

The HD7′s design does have a somewhat puzzling “flaw” to it, in that the back of the phone is wider than the front, causing the bezel to taper inwards. This design makes it difficult to fully press any of the physical buttons on the phone when held in the left hand, as your fingers must wrap around the phone to push the power button or volume rocker in. When held in the right hand, this is much less of an issue. The power port to the phone is on the bottom of the device, making it possible to charge with the pull out stand open so you can easily use the phone as a bedside clock at night.

The phone isn’t my favorite HTC design, but the HD7 offers the same solid feel I expect from their line of phones.

When you turn a Windows Phone on for the first time, you are prompted to enter a Windows Live login, allowed to enter email accounts from Gmail, Yahoo, etc, and the sync process begins. If you have a calendar associated with these accounts, you can opt to have that sync to the phone as well. I discovered shortly after logging in, however, that the Windows Live login you choose to sign in with is permanent. Unfortunately for me, the Windows Live login I use for communication and the one I use for Xbox Live are not the same, which caused a problem. So, I performed a master reset and signed in to my Xbox Live instead, and signed into my Windows Live account as a secondary account, which allowed me to use all of the features offered by the phone. This process frustrated me a bit, as this particular part of the process is much simpler in Android if you know how.

After about an hour after first turning the phone on, my data was synced, my Xbox Live Avatar was dancing, and I got a pop up telling me that my phone had a System Update. What took me a moment to realize was that I had just received an Over the Air notification that I needed to plug my phone into my computer to receive my system update, and in order to do that I needed Microsoft’s Zune application.

Installing the Zune software was quick, and as soon as I connected my phone the application recognized it and prompted me to give it a name and sync over any music or movies I might have. I slid a few albums and my recently acquired Tron Legacy over to the device, and shortly after the sync was finished the Zune software was ready to give me that update. Fast forward about 15 minutes and I was ready to go with the latest and greatest of Windows Phone.

Right as I got to the doorway to my office I received another popup, telling me an update was ready. This update wasn’t Over the Air either, so back to my computer I went. right around 15 minutes later I was free again, this time for sure I was up to date. I enjoyed several new features including the Microsoft Office suite, played some more with my Xbox Live avatar, and about an hour later I was prompted yet again for a Windows Phone update. This time, I was receiving the NoDo update, which included the ability to copy/paste amongst other things. In summation, at this point I had owned the phone for 4 hours, and had already performed a master reset and needed to connect the phone to my computer 3 times for separate system updates. I think it was safe to say that I was now ready to enjoy the phone.

The Windows Phone UI can be described in a single word: uncomplicated. I wouldn’t call it simple, or even easy to use, just uncomplicated. It’s a pleasing to the eyes two panel system. Panel One is your “Live Tiles”. These are apps you have decided you need quick access to, and you want tiny snippets of information from. Simple things like email, phone, text, etc. For the stock apps, this is really great, because the Live Tiles also change color in unison for a quick theme job no matter what you like. The second panel is a one column alphabetically arranged app drawer. If you want faster access to something that’s in your app drawer, you pin it to your Live Tile panel.

Now, in theory, app developers will build Live tile functionality into their apps to the User Interface and the User eXperience  is consistent throughout the OS. This doesn’t happen so much, even with popular apps like Twitter’s own app for Windows Phone. This causes the really nice looking Live Tile system to lose a bit f its charm the more non-conforming apps you move to this page. There are also system level tiles that can occupy 2 spaces instead of one, such as the Calendar and, in the case of an HTC device, Sense UI.

My favorite thing about Windows Phone is the success it’s had doing the one thing I wish HTC would choose to do on their own. Sense UI is not the dominating experience on Windows Phone that it is on Android. In fact, all of the individual features to Sense UI, from the flashlight app and the sound enhancers to the phone state sensors (in the pocket, flip to silence, flip to speaker, etc) are all separate apps that you can choose to install. Once you do install them, you can enjoy them in much the same way that you do on Android, with a few exceptions. For example, I am a huge fan of the SRS Labs WOWHD audio enhancement software, but Android app developers haven’t really started utilizing the OpenSLES codecs that take advantage of them, so the stock apps are typically the only ones that benefit. Because Windows Phone handles audio on an OS level, and not an application level like Android, so everything benefits from the audio enhancement.

The phone comes with Netflix and Slacker Radio pre-loaded, which was amazing since I use (and pay for) both of those services already. Netflix on Windows 7 works great on both WiFi and 3G with fairly minimal loading times considering. The UI for the Netflix app was somewhat limited, lacking buttons like “Next Episode” and such that the browser based Netfllix system offers. Also when you watch something on Netflix Mobile it takes much longer for Netflix to mark the file as “Watched”. Naturally I wanted a few more apps, so I strolled through the Marketplace for awhile. Since Windows Phone doesn’t sport any native IM clients (not even for Windows Messenger) and the Facebook integration through the contact manager doesn’t notify you to comments, I went shopping for some of the communication tools that I commonly use.

Twitter’s WP app, and a Yahoo! Messenger app made by a third party were the only apps I could find that I didn;t immediately uninstall for being low quality. When you search for something in the Marketplace, you are given results not just for apps, but for the Zune Market as well, filling your results with songs, and video clips in between the apps you might be looking for. In the end, I found the Windows Marketplace to be kind of frustrating, and do not typically enjoy using it.

As a Google product fanatic, not having a native Google Voice app was frustrating, but livable given the simplicity of the Google Voice website. At least, the one I was used to, anyway. Since Windows Phone’s browser is either not on Google’s short list of usable browsers or the browser really is that limited, the result is an old school flat HTML website. It’s still usable, just very limited and forces me to refresh the page a lot. All in all it’s a small issue since there aren’t a ton of Google Voice users anyways, much less ones who would own or use a Windows Phone, but it would be really nice if either Microsoft or Google picked up the ball on this one.

In the end, Windows Phone is young, and the things it does well, it does very well. Provided Microsoft maintains a growing trend of developers interested in building quality apps for the platform, I can see Windows Phone being a real contended in the smartphone market, especially once the Nokia handsets start to roll out. This window of opportunity is only going to be open to Microsoft as long as they carefully guide this OS in the right direction. If the volume of low quality apps continues to grow, and if the Desktop Zune software isn’t either completely removed or is allowed to grows WITH the platform, it’s likely Windows Phone will continue to grow.

MSDN Webcast: Rock Paper Azure Challenge Tips and Tricks (Level 100)

Friday, May 6, 2011

10:30 A.M.–11:00 A.M. Pacific Time

Microsoft’s MIX11 Day 2 is perhaps more important than the first. Today, Joe Belfiore took the keynote stage to discuss the next Windows Phone update, codename “Mango,” which will be “available to all current users of Windows Phone” and on new handsets, he said. Developer tools are coming next month.

Microsoft plans to release Mango in autumn, adding support for 16 additional languages. The number of countries where Windows Phone apps can be submitted will increase from 30 to 36. Applications will be available to download or buy in more countries — 25 up from 16.

Belfiore also highlighted changes specific to developers that “get more value out of your apps.” User-specific enhancements will be announced later.

Among the new features is what Belfiore called a “jump list for apps,” essentially the ability to use typographic keys to scan for documents. The feature could be a boon for end users with lots of apps and ensuring that developers’ applications don’t get lost in the mix. Search is improved, and Microsoft presents more information about apps in the Windows Phone Marketplace. Another new feature attaches apps as “Extras” to searches. Belfiore used example of Binging movie “Source Code,” then watching the movie trailer from the IMDB app presented in “Extras.”

Windows Phone codename “Mango” running Amazon app

Microsoft also will give developers more access to phones’ sensors and to ringtones. Microsoft Research has provided a combined motion and compass sensor that developers can write to. Belfiore demoed a capability (previously previewed) — scanning the room with the phone’s camera and seeing where different Twitter users are on the screen. He also demoed making Ballmer’s famous “Developers! Developers! Developers!” rant a ringtone.

Microsoft will improve multitasking, which suspends an app when the user switches to another. He demoed Spotify background audio when moving to other apps. Another new capability is background “live agents” that developers write into their code; Windows Phone schedules them in a way to protect battery life. Belfiore briefly demoed Angry Birds during the multitasking demo. The game will be available for Windows Phone on May 25th and will take advantage of new multitasking capabilities when available.

Developers also will have access to live tiles. Belfiore demoed a barcode scanning tile that launched Amazon’s shopping app. The new features consistently stick to a theme touted in Windows Phone marketing — about getting people off the handset and back to living. ”We’re the glance-and-go platform,” Belfiore said.

Internet Explorer 9 will add HTML5 capabilities to Windows Phone

Perhaps most exciting is the browser. ”The phone has IE9 built in,” Belfiore said. “It’s the same exact code” as the PC. That means HTML5 capabilities, including hardware acceleration, on handsets running Mango. He demoed HTML5 capabilities several ways: background audio coming from the browser; a speed test comparing iPhone 4, Windows Phone and Nexus S; and navigation of Boston Globe’s impressive HTML5 website.

Why Today’s Pitch Matters

Microsoft CEO Steve Ballmer officially announced what was then called Windows Phone 7 Series in February 2010. The first Windows Phone handsets shipped about 10 months later. I was then and remain to be now impressed with Microsoft’s clever advertising, which has a strong lifestyle message: Windows Phone will let you reclaim your life, rather than be owned by it.

In February 2011, Microsoft cut a lucrative distribution deal that will make Nokia swap Symbian for Windows Phone as primary operating system. The first Nokia-branded Windows Phone handsets are expected to ship next year. The deal dramatically changed analysts expectations about Windows Phone’s future. In October last year, they put Windows Phone as No. 6 behind — get this — Meego in 2014. In recent weeks, Gartner and IDC revised forecasts, putting Windows Phone 7 second to projected market-leading Android in 2015 for smartphone operating systems.

HTML5 ‘read test’; IE9 wins

“We were pretty excited to see our strategy validated in that way,” Belfiore said today.

But getting to No. 2 will require more than swapping Symbian for Windows Mobile. Microsoft needs developer support, which is one reason today’s keynote is so important. Currently there are about 13,000 apps at Microsoft’s mobile marketplace compared to more than 300,000 at Apple’s store.

I found Belfiore’s pitch to be compelling. Microsoft is taking a measured approach to improving its mobile platform. It’s risky short term but could pay off long term. Still, Apple has a huge carrot to offer developers. There is little fragmentation in its platform because Apple, and not carriers, control updates.

Microsoft’s updated mobile app store running on Mango

Belfiore preempted his keynote to discuss updates, by addressing the first Windows Phone update, which Microsoft released in late February but pulled almost immediately. There were installation problems, among others, on some phones. Belfiore said there was no one problem but several, largely related to Microsoft testing on phones for which there were changes, mainly to firmware, later on.

While Microsoft servers dispatch updates, carriers choose when. Belfiore defended the practice of letting phone operators test updates and choose when to make them available. “From our point of view, that’s quite reasonable.” Microsoft releases the update on X date for unlocked phones. He said that major carriers treat updates, even minor ones, like the release of a new phone. Testing is rigorous, even if it causes end users frustration when seeing someone else with an update they can’t get.

“We think t
hese things will go faster in the future,” Belfiore said.

Digital marketing solutions provider ValueClick has acquired brand-focused mobile advertising network Greystripe for $70 million in cash. Per terms of the deal, ValueClick will retain Greystripe’s management team and employee base, and will operate the mobile ad network as a wholly owned subsidiary. ValueClick adds that Greystripe is expected to contribute approximately $24 million to $26 million in revenue and $2 million to $3 million in adjusted EBITDA to its consolidated results over the remainder of 2011.

The Greystripe proprietary ad platform serves billions of rich media impressions to over 30 million touchscreen device users–its network spans across more than 3,500 application titles and mobile websites encompassing all major mobile platforms. Greystripe also boasts relationships with Fortune 500 advertisers across verticals including retail, consumer packaged goods, entertainment, technology and automotive. Greystripe joins existing ValueClick brands including Commission Junction, Mediaplex, Smarter.com, CouponMountain.com, Investopedia.com and PriceRunner–the company’s solutions target affiliate marketing, display advertising, ad serving and comparison shopping.

The ValueClick/Greystripe deal is the second significant mobile advertising acquisition in the last seven days: Last week, digital marketplace eBay stated it will acquire location-based media and discovery solutions provider Where, indicating plans to integrate its PayPal virtual payment service into the Where mobile app to boost local deal discovery. Where’s hyper-local advertising network promises consumers relevant, real-time information and merchant offers; its mobile application, which spans the iOS, Android, BlackBerry, Windows Phone 7 and Palm platforms, also offers personalized offers and local recommendations. The app boasts over 4 million active users each month.

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E-marketplace powerhouse eBay Inc. has reached an agreement to buy Where, a provider of advertising services, search and mobile apps that support shopping in nearby stores. Terms of the deal were not disclosed.

Through its mobile app, Where lets consumers search for products and services from local businesses, provides recommendations based on the consumer’s shopping preferences, and serves ads from local retailers.

“By delivering personalized, hyper-local advertising, offers and deals to shoppers on their mobile phones, we see a huge opportunity for retailers and brands to reach more buyers, and for consumers to get more choice and value when they shop,” eBay says.

Where claims to have 4 million registered users and more than 120,000 participating retailers. It says it handles more than 2 billion ad impressions monthly, reaching more than 50 million mobile users. Its mobile app comes in versions for the iPhone, BlackBerry, Android, Windows Phone 7 and Palm WebOS mobile devices.

EBay expects to make its PayPal online and mobile payment service available through the Where mobile app.

“As a first step, we plan to integrate PayPal into the Where mobile app to make it even easier for PayPal customers to take advantage of the local deals,” Amanda Pires, senior director of global communications, brand and experimental marketing at PayPal, says in an eBay blog post.

The acquisition makes a lot of sense in light of the changing realities of retail caused by mobile commerce, says Nikki Baird, managing partner at Retail Systems Research.

“Store-based retailers’ biggest differentiator to online-only retailers has always been their stores, but mobile is changing all that, and fast,” she says. “If an online retailer can understand the context in which a consumer is using its mobile app or site, then it can be even more sophisticated in what and how it communicates to shoppers, and have a strong opportunity of winning away a consumer’s business without the store ever knowing. So I’m not surprised at eBay’s move. It’s a powerful combination of capabilities that could easily have store-based retailers very worried.”

The acquisition, which is expected to close in the second quarter, follows eBay’s purchase late last year of Milo, a search engine for finding products available in local stores, and of RedLaser, developer of a bar code scanning app shoppers can use to comparison shop in stores.

In making such moves, eBay is putting itself into a position to compete more against Groupon , Facebook, LivingSocial and others in the growing local shopping and advertising market.

Where, in an indication of its growth plans, lists more than a dozen job openings on its web site, including positions for web developers and sales managers.

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