<font face="arial" size="1"><b>The latest from the desk of the Editor-in-chief : <a href="http://www.connect-world.com/magazine_pages/global-ICT_telecommagazine.htm">http://www.connect-world.com/magazine_pages/global-ICT_telecommagazine.htm
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<h1>Little by littler...
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<td><font color="#052c65" face="Arial, Helvetica, sans-serif" size="1"><b>Fredric
Morris</b><br>
Editor-In-Chief<br>
Connect-World</font></td>
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<p><font size="5">L</font>ittle
is getting big, but less, as architect Mies Van der Rohe said so many
years ago, is definitively more – at least in the ICT world. <br>
<br>
In the eLetter at the end of May this year, I commented that
Microsoft's parallel interest in on-line advertising, in
online-software usage, widgets and mobile computing was far from
coincidental, that all the signs point to a grander scheme and a tight
interconnection between these spheres of interest. <br><br>
Reports from Microsoft's recent <em>Financial Analysts Day</em>
at their headquarters, only served to confirm my suspicion that we are
witnessing the birth of a major trend - doing more, affordably, with
less. According to a variety of published reports, Steve Ballmer, told
financial analysts that they will be investing heavily in online
advertising, online services, consumer electronics and: "software plus
services". Microsoft, it seems, is transforming its business model
orientation; apparently, it will now centre upon software plus online
services. <br><br>
Another focus of its business model will be online advertising. The
last time I felt such drive, such enormous determination to change, was
when Microsoft jumped on the Internet bandwagon. Microsoft is taking on
a potentially disruptive technology - its enemies, I am <em>not</em>
one, might say like a snake changing its skin - and make it its own. If
the MS Internet Explorer serves as an example of what a fundamental
change in Microsoft's strategy portends, the sector is about to undergo
a major shift in direction.<br><br>
"We are hell-bent and determined to allocate the talent, the resources,
the money, the innovation to absolutely become a powerhouse in the ad
business," Steve Ballmer is quoted as saying. Ballmer outlined their
commitment to advertising supported Web services.<br><br>
The command centre for hell might well be the new centre dedicated to
online advertising and search services announced by Bill Gates. Hell's
command centre, Microsoft renamed it the <em>Internet Services Research Centre</em>,
will concentrate upon searching scanned images - especially print
publications, fighting spam, determining new ways to build the
relevance of search results, and who knows what else.<br><br>
Ballmer made it clear that the markets targeted - advertising-supported
Web services, online services in general and consumer devices - are all
leading markets for the company's software. Online Services and the
Microsoft Entertainment and Devices division have never done well, but
Microsoft has a record of betting on losers for years - look at the
history of its server software - before they become major revenue
generators.<br><br>
I'm not as good as they are at predicting winners, but when I drop
mobile services and mobile Internet devices into the equation with the
above strategies and multiply, I see a new model for the sector
emerging with Microsoft, once again, at the forefront. <br><br>
Microsoft, notoriously, has never focused upon advertising revenue as
much, or at least as successfully, as companies like Google. Now,
though, according to Steve Ballmer, they will be an "advertising and
devices" enterprise.<br><br>
The most significant idea found reading Bill Gate's presentation, was
not the perennial promise of more powerful user-oriented functions for
slicker devices coupled with a better user experience. The noteworthy
concept, the one that I believe centres the MS strategy, is that of
reconsidering the traditional computing model that confines processing
to the device, a computer of some sort, and moves much of the
processing to the Internet. It's not a new idea, but now, with the
blessing of hell, its time may have come.<br><br>
The Internet-as-the-processor is ideal for handheld,
always-carry-it-with-you, mobile computing. So too is an ad-based
revenue model for the massive majority of users that are always a bit
strapped for cash. With billions of users throughout the world, you
don't need to hit users with high prices to earn fantastic profits from
advertising and micro-fees-per use. <br><br>
The business model works, and there are several additional advantages.
Software, for one, is much harder to pirate with this sort of model.
Most important, though, is the change this makes in the way people use
the Internet, in the equipment - the devices they use and the way the
whole value chain of the industry slips and slides off the road it's
been following. <br><br>
This type of computing needs a lot of bandwidth. Current mobile
broadband is too slow and too expensive, but WiFi, WiMesh, WiMAX and,
perhaps, LTE (<em>Long Term Evolution</em> – UMTS mobile broadband) promise faster and cheaper wireless broadband.<br><br>
Since the storage and computing power can reside on the Web small,
handheld, mobile devices with full keyboards can serve as full-function
computers. The screens are small and the keyboards cramped, but these
devices, potentially, can do anything larger more expensive equipment
can do. Add a full-size keyboard and a box to connect it to a
television or monitor and you have a set-up that many people - perhaps
most eventually – will be using, especially in developing regions. <br><br>
In a few years, powerful, low-cost, slip it into your pocket, computer
and communications devices will become a common sight everywhere in the
world and this 'personal mass-media' will be a force to be reckoned
with.<br><br>
Today, in some age groups and communities, communications through sites
such as Facebook that describes itself as, "a social utility that
connects you with the people around you", and MySpace, "an online
community that lets you meet your friends' friends", are rapidly taking
over the functions of more traditional Internet email communications.
These kids just don't use email much, except to talk to adults! This is
happening not just in the USA, the EU and parts of Asia, but in Latin
America and probably other parts of the world as well. These on-line
communities let one network, exchange messages, share photos, and clips
with other members of your personal community of friends and
acquaintances. <br><br>
Nowadays, many students are starting to log into Facebook through their
cell phones. In a few years, as mobile broadband availability grows, I
expect mobile access to predominate. Also In a few years, these
students will be adults, and bring at least some of their
communications habits with them to the business world. Although email
is still the standard for business, the millions upon millions of
Facebook, MySpace and other similar networks <br><br>
With millions and millions of members each, MySpace and Facebook are
among the frontrunners to control a huge chunk of this promising
market. Of course, they have a small problem coming up - the Microsoft
elephant will soon be barging in on this market and, oh yes, so will
Sprint Nextel teamed up with Google.<br><br>
A few days ago Sprint Nextel announced they would develop a new mobile
portal to provide Web searching and social networking using WiMAX. The
announcement said Sprint's wireless broadband network, together with
its ability to detect location will be combined with Google's email,
chat and other applications. <br><br>
Couple all this with over-the-air software and Web services and lower
subscriber costs financed by ad- based revenues, carry-at-all-times,
mobile Internet devices and little by little… anyone ready for a
revolution? </p><br>-- <br>Anne-Rachel Inne