Thursday, June 23, 2011

ICloud: What is Steve Jobs up to?

Apple introduced its free iCloud Service recently with more oohs and ahhs going to its new OS Lion. However, the real story is iCloud. First, Apple is about to make The Cloud mainstream. With its ability to sync all your Apple devices, Apple users of any two or more devIces will soon discover that multi device syncing with the cloud is a Must Have for their digital lives. Credit Apple with once again showing how technology can be delivered seemlessly and intuitively. But is iCloud really free?

Here is why the candy man is so generous.
First, iCloud will breed loyalty, stickiness and make new Apple purchases extremely tempting. Once, we enjoy the reality of finding our data, email, music and software on any device, we are not likely to want to buy android and microsoft based products which will not work with iCloud. So we can increase Apple's upsell purchase forecast across the board. And that is all gravy as its selling more of the same products to existing users. Also, go ahead and increase the new user forecast for ARPU (avg revenue per user), the holy grail of higher multiples.

It gets better. You see, more corporate users are making personal decisions to purchase Apple products. However, they keep exasperating corporate CIOs by taking the darn things to work, and connecting them to the corporate data farm and syncing their mail, attachments and contacts. Well remember, Steve is now offering to sync that same data to his Cloud. Isn't that convenient. So, how long will it take for confidential information and personal digital preferences from most of America, including its corporate data to end up in Steve's cloud? Once its all there, how will it be protected? Or Used? Who will use it and how? Will we soon be discussing Steve's cloud like we have been Google's surfing data farm?

Of course we will hear all the promises of best security etc, but who are we protecting it from? Hackers or Steve's product marketing team. All that data is so tempting. Even stripped of its personal names, just think how well Apple could focus market to you with that data.

It is likely that by the time any regulators wake up to the possibility it'll be too late. Btw: I bet there are alot of government agencies as well who wouldn't mind gaining access to it. Subpoena or not. Some might not even mind Steve putting it conveniently all in one place.

So, in summary, something to think about. Overall, I think its a brilliant plan. Great corporate drama. I can't wait for the movie. It'll make Social Network look like a walk in the park.

Wednesday, June 15, 2011

Multi screen Trumps Commercial Services at NCTA

The emphasis this year is all about multi screen viewing. Content providers are clashing with cable co's regarding how and who interfaces with the end user. Comcast and HBO Go both are trying to get on your iPad from different angles. Some MSO's are tethering your mobility to your residence network (TWC) while others are letting you access on any network (Comcast). Meanwhile HBO and Showtime are trying to demonstrate that Coax is not their only path to the end user. Fun times with the lawyers starting to get busy.

Meanwhile, Commercial Services had a low profile, to my disappointment, which is contrary to what we at TelecomMarketplace are hearing from our MSO clients. Also, the number of 3D demos was way down versus last year.

The other notation is that the iPad is ruling the show. Attendees, exhibitors and speakers are all talking about the transformative tablet. Other tablets will continue to lag as all product development and interfaces are iPad focused first.

IPad is also proving disruptive to corporate security with employees bring in personal devices which then start carrying corporate data on sync up.

We spoke to NCTA about helping them start a Commercial Services track for next year and may be engaged by them to help launch it. More to come.

Steve co host of Fox and Friends and me

Paris Hilton drawing a crowd at Oxygen Booth

Live fromNCTA

Live from NCTA

Theme this year seems to be TV Anywhere, multi screen viewing and Apple response.

Tuesday, June 14, 2011

At The Cable Show this week in Chicago

Chicago, ill

Attending the annual NCTA Cable Show this week. All the key content, broadband and solution providers are in attendance. With a jam packed agenda, we will be representing our clients to the Cable Industry. Big meetings with Time Warner Cable, RCN, Pat Media and Brighthouse are just a sample. In each case we will be introducing their executives to our clients products and partnership solutions as an executive Business overlay to their internal teams.

How are you forging partnerships?

Monday, June 13, 2011

Surprise Surprise: No Entrepreneurs and no Jobs

The front page of USA today reported that entrepreneurial activity in America has reached a 20 year low. Yet politicians continue to be baffled with the economy's failure to create jobs. Meanwhile large business profits and productivity are soaring. While big business continues to improve margins by a) sending jobs overseas (employers > 500 employees had a loss of 1M jobs between 2001 and 07, while SMB's added 7M jobs over the same timeframe. All while the economy was decent) and b) favoring investments in capital over labor.

Meanwhile, the bailouts, government takeovers and Stimulus 1 and 2 continue their focus on supporting large businesses, who have a long history of not creating jobs for America. Here's an idea, focus some government stimulus on small and medium businesses. How about enticing entrepreneurs to invest and create jobs. No, refunding a few payroll tax dollars after 12 months is not working and never would work. For pennies the feds could use the SBA programs to entice both the employed and unemployed to exercise their entrepreneurial spirit. For example, the SBA program could be used to help entrepreneurs lower their risk profile in this unusually risky environment. If people are unwilling to buy real estate at 50 cents on the dollar, why would we anticipate they would invest in risky start ups at 100 cents on the dollar. I believe unemployment could be cut within 18 months to under 7% by instituting the following program: for every dollar that an entrepreneur invests in a start up, the sba provides .50 in non lienable loans and .50 in equity investment up to $500k in total investment. Current SBA loans require the entrepreneur to accept a lien on their house (not happening and little equity in real estate anyhow to recover). The equity portion would be payable to the government on liquidation with a liquidity preference but no appreciation. Sounds a lot like what the car makers and banks received.
In this program an entrepreneur would be heavily enticed to invest, since they could double their chances of success. The government would still recover their money from all the successful start ups while not further punishing those who lose their investment further by taking their home. Meanwhile, we would be assured that the stimulus would be heavily spent on job creation because local, small and medium businesses are labor intensive and proven job creators.

Why do I need to break from running my company to figure this out for these baffled politicians? The reality is that SMB's don't get the carrot because they don't pay the piper. They don't typically make big political contributions, hire lobbyists or have the time to woo their local politicians. They are too busy running their companies. Wake up media, politicians and pundits... No start ups No Jobs.

TelcoSource Partner Program Launched

This past Thursday we unveiled the long anticipated Partner Program for the TelcoSource platform. This program is off to a fast start and has the ability to help our partners solidify their strategic importance to their customers while bringing in some very healthy new revenues.