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Jean-Louis Gassée

What If Google Stored All Our Medical Records?

Uncategorized By October 17, 2010 Tags: 18 Comments

Regard the horrified looks on the faces of the attendees at a California Council on Science and Technology meeting in Irvine six or seven years ago. I’m the only member from the Dark Side, from the venture capital milieu, inside an institution “designed to offer expert advice to the state government and to recommend solutions to science and technology-related policy issues”. The other members are scientists and scholars.

The question of the day is electronic medical records: How do we computerize, standardize, store, secure, exchange our corpus info with a reasonable assurance of privacy?

My answer: Give the job to Google. And thus follows the politely alarmed reaction…and the objections.

Our records won’t be secure! Google will exploit our most personal history to make money on our backs (or other organs)! They’ve digitized books, is this yet another step towards a privately-controlled but overly powerful public utility/institution?

Years later, what do we know?

First, doctors and patients still have trouble finding and exchanging records. I have, as attorneys are fond of saying, “personal knowledge” of this fact. The exchange of records between my politically-incorrect internist, the Palo Alto Medical Foundation and the Stanford Hospital—organizations within a mere mile of one other—takes multiple phone calls, visits in person, fax machines.

Now try one of the blood-sucking medical insurance companies. To gain access to your own record, they send you, by fax, an authorization form for your signature…but there’s no return number, there’s no way to return the fax. It’s not personal, it’s systemic, an obstacle course to minimize claim payments.

Second, the current system, notwithstanding HIPAA regulations, leaves our records open to outsourcing subcontractors in the US and elsewhere, to poorly qualified claim adjudicators inside insurance companies and to employers’ HR personnel. In theory, there are walls. In practice, expediency: there’s “cost containment”, there’s an astounding number of people, “trusted” or not, who get to look at your records. Compared to this, Google looks pretty good. Yes, they have security breaches, people occasionally lose their password or get their accounts hacked, but these events are statistically insignificant. Add penalties for such incidents, weigh them against what we’d pay Google for the service, and we’d have a decent level of protection, an SLA for our medical records.

Few companies have dealt with size, with what we call “scalability” as successfully as Google has. They have the human expertise and the computer systems to store and index “everything”, this is what they do for a living, with more than 2.5 million servers that keep their data intact.

As to Google’s exploitation of our records… Of course Google cares, they can wring billions from our personal health history? All we have to do is write a contract to share the loot, we call this “revenue-sharing”. Think of what a relentless crawl through billions of medical records will garner them… Take a transversal look at all the patients who take high blood pressure (antihypertensive) drugs, look at morbidity (how often, when, and how severely they get sick) and mortality (when and how we die) rates. Or look at the more subtle but important combinations such as ancestry (the best way to get low cholesterol is to choose your parents well), other drugs, lifestyle (a.k.a. good and bad exercise, food intake, alcohol, tobacco and other substances soon to be legal in California).

This would be much better than the current and deeply corrupt system of medical studies. You think I exaggerate? I wish. See this sobering David H. Freedman story in the November issue of the Atlantic (a treasure of literate America).

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HP’s Board Gets No Respect

hardware, software By October 11, 2010 Tags: 8 Comments

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And rightly so.

You recall: Last August, HP’s Board of Directors dismissed its wunder-CEO, Mark Hurd. Well-loved by Wall Street, although not so much by employees, Hurd turned HP around after the lackluster Fiorina years. He made acquisitions, cut costs, and put the company at the very top of the IT industry. But HP’s fearless leader was accused of having entangled himself, carnally and emotionally, with a female “marketing contractor”, and of having engaged in a few financial peccadilloes in the process of covering up the relationship.

I’ll hasten to add that Hurd reached an amiable—and solid—settlement with the former soft-porn actress. By “solid settlement” I mean we’ve heard exactly nothing from the aggrieved woman, or from Gloria Allred, her highly expressive Hollywood attorney. (As a self-described “Fearless Advocate for Justice and Equality”, Ms. Allred appears to dig gold on behalf of the rejected/dejected paramours of media and sports celebrities.)

While Hurd tried to do the right thing after his alleged mistakes, HP’s Board and management repeatedly and needlessly pilloried him, barely stopping short of accusing their former CEO of fraud. (See more sorry details in this Monday Note.)

All this led Larry Ellison to publicly lambaste the HP Board for kicking Hurd to the curb—and to promptly hire him as co-president of Oracle.

Ignoring the “when you’re in a hole, stop digging” maxim, HP doubles down and sues Hurd. Their complaint? As Oracle co-president, Hurd will inevitably misuse HP’s confidential information and cause his ex-employer grievous harm.

Larry chuckles and lashes out again. He calls HP’s suit vindictive, which is true, and adds that it will make it impossible to continue as business partners, only somewhat true as each had already recently moved into the other’s business. Oracle bought Sun and HP got into software and services by acquiring EDS.

A few days later, on the eve of Oracle’s OpenWorld, the suit is settled. HP’s pain is salved by a few million dollars, and the threat of the misuse of confidential information is suddenly, mysteriously no longer an issue. One wonders about the damage HP’s Board did to the company’s reputation by treating this alleged sinner in such a bullying and ultimately lame way.

While Hurd stays out of the limelight plotting Oracle’s next moves, HP directors keep stoking the coals for their critics. In their quest for a new CEO, the Board rejects internal candidates for the third time and pick an outsider: Léo Apotheker, ex-CEO of SAP Germany. This leads to another salvo of Ellison jibes. (When Larry calls himself “speechless”, you know he’s having a good time.)

But wait, there’s more.

What does the Board do besides recruiting Apotheker? They hire Ray Lane as Chairman. As the link to his Kleiner Perkins bio proves, Lane is, without a doubt, an “industry figure”, the type Kleiner Perkins, one of the largest VC firms in the world, likes to co-opt. But the slick KPCB bio (there is, significantly, nothing on him on Wikipedia) omits an important episode: Ray’s acrimonious departure from Oracle. The more charitable souls among us hope that everything is forgiven and forgotten. But knowing the protagonists, Larry and Ray, a more realistic view is that HP’s Board brought Ray in with a specific intent: They want to strengthen the team for a fight against Oracle.

There are three problems with such a move.

First, we now have two muscular venture capitalists on HP’s BoD: Lane and Marc Andreesen, from Andreesen Horowitz (as an aside, admire the firm’s spartan site). While some argue that it’s great that HP has such connections in the VC world (as if any executive or Board member couldn’t get us VCs to return their calls), there’s a governance problem. There will be many situations in which Mark’s or Ray’s existing investments and connections will raise conflict of interest questions; they won’t be deemed independent directors.

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The OS Doesn’t Matter…

software By October 3, 2010 Tags: , 76 Comments

by Jean-Louis Gassée

Once upon a time, operating systems used to matter a lot; they defined what a computer could and couldn’t do. The “old” OS orchestrated the use of resources: memory, processors, I/O (input/output) to external devices (screen, keyboard, disks, network, printers…). It’s a complicated set of tasks that requires delicate juggling of conflicting constraints, and every OS handled them differently—or not at all. In those days, the OS was married to the hardware and only a handful of “wizards” with Electrical Engineering degrees—and a deep understanding of circuitry—understood (and invented, and protected) the arcana of OS construction.

Over time, the secrets of these illuminati leaked out. About 20 years ago, the OS lost its mystery. We had learned enough about writing an OS kernel that it became a college-level topic and a Christmas break hack.

Today, there’s only one operating system: Unix. (Okay, there are two, but we’ll get to that.) This is why I contend that the OS doesn’t matter—or that we need to take another look at the word’s content, at what we mean when we say ‘Operating System’.

When RIM decides to go with QNX for its upcoming tablet, the PlayBook, tongues wag. After calling its Blackberry OS the “best of breed” (a tired markitecture phrase), RIM is surrendering to reality: The “proven OS” foundation proved to be unfixable. Because of the layers of software silt that had accumulated over the years, the edifice couldn’t be modernized. Better to quit and make a fresh start. QNX is based on a Unix OS for embedded applications that dates back to 1982(!) when it was first released for the Intel 8088 microprocessor.

The same thing happened at Apple…twice. The Apple ][ OS (or lack thereof, purists will say) couldn’t be brought up to modern standards, so the Macintosh had to be built on a fresh foundation. The original Mac OS foundered on its own beachhead and was replaced by OS X. Based on the Mach kernel, OS X is another Unix derivative, co-authored at CMU by Avie Tevanian. Mr Tevanian improved the system during his tenure as head of software at NeXT and was instrumental in convincing Apple that their purchase of NeXT would breathe new life into the company.

Open the Terminal application on a Mac and what do you see? A noble and worthy Unix “shell”, a program that geeks use to interact with the OS. Terminal uses the bash shell (for Bourne Again Shell. Created by Brian Fox, bash is based on the sh shell, which was invented by Stephen Bourne. Unix mavens love their word-play acronyms).

And now we have the Apple iOS, an OS X derivative that uses bits from the same kernel.

Regard Palm. The sine qua non of handset makers saw that their PalmOS couldn’t be fixed, so they pressed the restart button and created WebOS, a Linux derivative.

Android? It’s based on a Linux kernel. Nokia’s MeeGo? Ditto.

The list goes on. We have the spiritual children of Unix living inside the Cloud, powering the millions of Linux servers running at Google, Facebook, Amazon…

The only exception is Windows. Initially built on top of DOS, Microsoft painstakingly added version after version, always striving for backward compatibility while, at the same time, adding new features. It didn’t always work well (who wants to remember Windows Me and Vista?) but it worked well enough because Microsoft never gave up. They fixed mistakes that they claimed didn’t exist, and now we have the well-respected Windows 7. (Inevitably, critics will say that Microsoft wouldn’t have gotten away with such a tortuous path if it weren’t for its vigorously enforced monopoly.)

Windows will live on — in a PC industry now at a plateau. But otherwise, in the high-growth Cloud and smartphone segments, it’s a Unix/Linux world. We need to look elsewhere to find the differences that matter.

The technical challenges have migrated to two areas: UI (User Interface, or the more poetic—and more accurate—UX, for User Experience) and programming tools.

Now that all “system functions” are similar, the game for hardware and software makers is to convince the user that his/her experience will be smooth and intuitive. Your device will walk on water (with the programmer right under the surface), catch you as you fall, make sure you don’t get your feet wet.

For the developer, what we now call the OS must supply ever-growing expressive power—think a fife versus a twelve-keyboard organ. To wield that expressive power, the programmer needs software tools. The industry uses acronyms such as API (Application Programming Interface), IDE (Integrated Development Environment) or phrases such as Application Frameworks. They define the rules and conventions—which ideas are allowed and how to express them—and the software tools that programmers need to develop an application.

This is today’s OS. User experience. Development tools.

One last element that is and isn’t the OS: This new creature called an App Store (or Marketplace, depending upon the…OS). In my non-technical view, the App Store must be considered part of the OS totality, part of its gestalt. Applications have always been in a feedback loop with the OS. A program can only do as much as the OS allows it, so it played tricks to create multi-tasking, to allow smooth audio/video playback. These “tricks” were incorporated into the OS (and the hardware—think GPU), which then bred another generation of apps that wanted more, and so on.

The App Store genre, invented or not in Cupertino, is now part of that loop, a killer OS component, one that deserves a Monday Note of its own.

JLG@mondaynote.com

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The Carriers’ Rebellion

hardware, mobile internet By September 26, 2010 Tags: , , , , 27 Comments

Before the Steve Jobs hypnosis session, AT&T ruled. Handsets, their prices, branding, applications, contractual terms, content sales…AT&T decided everything and made pennies on each bit that flowed through its network. Then the Great Mesmerizer swept the table. Apple provided the hardware, the operating system, and “everything else”: applications, music, ringtones, movies, books… The iTunes cash register rang and AT&T didn’t make a red cent on content.

In the eyes of other carriers, AT&T sold its birthright. But they didn’t sell cheap. The industry-wide ARPU (Average Revenue Per User per month) is a little more than $50. AT&T’s iPhone ARPU hovers above $100. Subtract $25 kicked back to Apple, and AT&T still wins. More important, AT&T’s iPhone exclusivity in the US “stole” millions of subscribers from rivals Verizon, Sprint, and T-Mobile—more than 1 million per quarter since the iPhone came out in June, 2007.

(Legend has it that Jobs approached Verizon before AT&T, but Apple’s demands were deemed “obscene”. If the story is true, Verizon’s disgust lost them 10 million subscribers and billions in revenue—much more than it would have made in content sales putatively under its control. Another theory, unprovable but preferable, is that Apple went for the worldwide “GSM’’ standard, hence AT&T.)

To the industry at large, the damage had been done. Jobs disintermediated carriers. Consumers woke up to a different life, one where the carrier supplied the bit pipe and nothing else. Yesterday’s smartphones became today’s mobile personal computers and carriers devolved into wireless ISPs, their worst fear.

Enter Android.

Android is like Linux, it’s Open Source, it’s free. And it’s very good, and rabidly getting better. But with two important differences. Android is Linux with money, Google’s money. And Android is Linux without a Microsoft adversary. There’s no legally—or illegally—dominant player in the smartphone/really personal computer space. Nokia, Palm, Microsoft, and RIM were and still are much larger than the Disintermediating Devil from Cupertino.

Handset makers and software developers love Android, new handsets and new applications are released daily; see the Android Market here. The current guess is that Android will grab the lion’s share of the handset market by 2012. Nokia, RIM, and Microsoft may disagree with that forecast, and Apple is certain to stick to its small market share/high margin, vertical, bare-metal-to-flesh strategy.

Carriers get excited about Android, too. For two reasons. First, Android (and the very good bundled Google apps) allows handset makers to make inexpensive devices. Carriers and Google both encourage a race to the bottom where handsets are commoditized, but smart.

Second, because Android is an Open Source platform, carriers can work with handset makers, they can dictate the feature set and, as a result, revitalize the revenue stream. They can promote their favorite apps, content, and services sales that have been choked by disintermediation.

But it’s not a straight shot. Android lays out the playing field for a contest between Google and carriers.

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HP’s Board of Directors: Redemption or More Insanity Ahead?

hardware, Uncategorized By September 19, 2010 Tags: 11 Comments

HP’s Board of Directors has accumulated an impressive record of bad judgment calls, the latest being the lame lawsuit against their recently deposed CEO, Mark Hurd, who quickly joined Oracle as Co-President and Director.

The History

Once a revered Silicon Valley icon, HP was arguably the first worldwide success to emerge from pre-war Stanford where Bill Hewlett and Dave Packard studied under the illustrious Frederick Terman. Unfortunately, the insiders who were groomed to replace “Bill & Dave”—first John Young, an HP lifer (1968-1992), followed by Lew Platt, another long-termer (1966-1999)—presided over the company’s long slide into comfortable bureaucracy and middling financial performance.

In 1999, HP’s Board was seduced into giving the CEO mantel to Carly Fiorina, a gerontophiliac sales exec from AT&T/Lucent…only to fire her in early 2005. Known for her posturing and opaque pronouncements, Fiorina antagonized and mystified insiders and industry observers alike. John Cooper, CNET’s Executive Editor and longtime tech writer, characterized one of her more frustrating talks as “a Star Trek script” containing “enough business-babble to reduce even the most hardened McKinsey consultant to a state of dribbling catatonia”. Nice.

To succeed Fiorina, HP went outside again and, this time, managed to snare an experienced and accomplished CEO: As head of NCR, Mark Hurd had led the company through a successful turnaround.

About a year after Hurd’s election, HP’s Board became embroiled in the Pretexting scandal. Board members spied on employees and journalists—and even on each other—in an attempt to track down leaks of confidential strategy documents. This ugly episode led to several Board and executive departures: Chairwoman Patricia Dunn was thrown under bus; HP’s General Counsel, Ann Baskins, “took the Fifth” at a Senate hearing; another director, Tom Perkins, and several employees left as well. What Mark Hurd actually knew or did in relationship to this episode has never been clarified.

Despite the scandal and the departures, Hurd made good on his reputation as a turnaround CEO and, through carefully crafted acquisitions and cost-cutting, put HP back at the top of the computer industry in just five years. His wizardry with numbers, his sober talk, and his attention to execution left the impression that HP had finally found the right helmsman.

But then disaster struck. As discussed in our August 29th Monday Note, HP’s Board unceremoniously fired Hurd, publicly berating him for conduct unbecoming a CEO and barely stopping short of accusing him of fraud. And then, after pillorying him, the company inexplicably paid off the “disgraced” Hurd to the tune of $30M to $40M. HP shareholders sued the directors and the media roasted them.

Enter Ellison

Larry Ellison and Mark Hurd have known each other for several years. They’d been business partners when HP and Oracle allied themselves in serving large government and enterprise clients—and they’re tennis buddies as well.

After harshly criticizing HP’s trustees for firing a star executive, Ellison hired Hurd. In keeping with his leadership style, Ellison made room for the new lieutenant by summarily chucking the previous tenant, Charles Phillips, who, ironically, had also become embroiled in a “relationship contretemps” with an ex-paramour. I’ll hasten to say that I prefer Larry’s summary and clean manner to HP’s: Chuck Phillips had a successful career at Oracle, Larry wished him well on his way out, the money flowed, and everyone moved on to the next stage of their lives.

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Nokia’s New CEO: Challenges

hardware, mobile internet By September 12, 2010 Tags: , , 41 Comments

by Jean-Louis Gassée

Here we are, back from last June’s Nokia science-fiction romp. The company has finally elected a new CEO to replace OPK, Olli-Pekka Kallasvuo. 43-year-old Stephen Elop’s bona fides are in order: As President of Microsoft’s Business Division (since January 2008) he was in charge of the Microsoft Office money machine and was part of the company’s “Leadership Team”. He was well-paid (the 2009 proxy pegged him at $4.8M, excluding longer-term items) and rumor placed him at the top of the short list to succeed Ballmer…

So what possessed Elop to take the Nokia job?

The answer must be that he’s been given the opportunity to make his mark. Having seen Microsoft from the inside, he must have realized that he was being groomed to be no more than a competent caretaker. He might even have decided he wouldn’t get, or wouldn’t want, the big prize, the CEO crown. So, I speculate, he went for the challenges of a turn-around situation.

The goal is clear: Restore Nokia to its former glory as the ne plus ultra of smartphones. But the path to this renaissance isn’t a straight shot—it’s an obstacle course.

Numbers

Mr. Elop’s most immediate challenge lies in Nokia’s financial performance. During the last three years of OPK’s tenure, Nokia lost 75% of its market cap, plunging from $40/sh in 2007 (the year the iPhone came out) to less than $10 today, although with a nice 2% uptick following the CEO announcement:

A more direct way to look at the numbers challenge is a single datum: Today, Nokia gets about €155 ($196) per smartphone, down from €190 last year. In the meantime, Apple gets more than $600 per iPhone. (See the June 2010 Financial Times story here.)

It gets worse when the total average number is considered, smartphones and not-so-smartphones together. That average now hovers around €60, which means Nokia sells very large numbers of low-end phones that yield very little profit. They’re in great danger of being squeezed by the incoming low-end Android horde.

But the numbers are a mere proxy for the bigger trial: The product itself, the smartphone.

Once the category leader, Nokia is now struggling to catch up with HTC, Motorola, Samsung and, of course, RIM/Blackberry and Apple. Pugnacious Nokia die-hards adhere to the company’s sisu, but the market has spoken—and it enunciates more distinctly every quarter. See this Business Insider chart:

Given today’s market turbulence, one can’t help but admire the charter’s ability to “see” as far as 2014—but the trend is obvious. Will upcoming products such as the N8 reverse it? Early reviews are mixed. For Nokia, the N8 isn’t likely to do what the Razr did for Motorola in 2003 or what the latest Droids are doing now. Motorola’s conversion to Android seems to have righted the ship and Sanjay Jah, the Co-CEO in charge of the company’s mobile business, is on his way to leading a self-sustaining entity, one that could finally be spun off as planned.

Software

Today, Nokia pushes devices that use older Symbian S60 stacks, newer Symbian^3 and Symbian^4 engines, as well as a mobile Linux derivative: Meego. Imagine the chuckles in the halls of Cupertino, Mountain View, and Palo Alto. Even with plenty of money and management/engineering talent, updating one software platform is a struggle. Ask Apple, Google, or HP, and the chuckles quickly become groans. Nokia thinks it can stay on the field when it’s playing the game in such a disorganized fashion?

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Science Fiction: An Apple-Curated App Store

mobile internet, software By September 6, 2010 Tags: , 16 Comments

In an alternate universe, Apple has announced the App Store Guide and Blog. Choice morsels from the PR material follow.

“We came to realize that a quarter million apps meant worse than nothing to Apple users”, said Apple’s CEO. “I get confused too! Reviews are often fake, lame, or downright incompetent. PR firms have been caught astroturfing reviews, publishers have resorted to flooding the App Store with shameful clones of successful applications. I won’t let one of Apple’s most important, most imitated innovations sink into anomie.”

[Remember, this is sci-fi.]

“So…Today we’re proud to introduce the Real App Store Guide, written and maintained by Apple experts. We’ll review new and existing iOS apps. We’ll tell you which ones we grok (and that grok us) and give you the straight dope on the offerings you shouldn’t touch, even if they’re free. In our Guide, you’ll find a series of paths: For the Traveler, the Gamer, the Music Lover, the Graphic Artist, the Oppressed Enterprise Windows User, Teachers, Parents, Doctors… The Guide will also feature a blog, a running commentary on the iOS App landscape with intelligent answers to cogent questions. And in keeping with our usual standards for decorum and IQ, the blog will be moderated…”

And so it is, the App Store is fully curated, at long last.

As always, this doesn’t please everyone…at least on the surface. In reality, the usual naysayers are thrilled: More pageviews! Ryan Tate jumps on the opportunity and frenetically fires at Steve Jobs’ inbox, trying to start another late night email séance. But this time the Emailer In Chief doesn’t bite.

Customers, on the other hand, like the Real App Store Guide. Users can finally find their way through the twisted and confusing maze of programs. They learn to adjust for a particular writer’s opinions, much as we’ve all learned to compensate for the biases of, say, movie reviewers. The blog gives civilians a forum where they can argue (politely) with the named authors of the reviews—there’s no anonymous corpospeak here.

App authors…some of them aren’t so keen on the idea. The ones that get tepid reviews are understandably furious and threaten lawsuits (in vain…their attorneys are told to re-read the App Store T&Cs). With a modicum of care with words, that’s what the Guide’s editors are for: Safe negative opinions.

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Curious Summer

mobile internet, software By August 29, 2010 Tags: , , 14 Comments

by Jean-Louis Gassée

Nothing much happens in August, we thought. Wrong. Our three-week break has been filled with a number of “interesting” events.

Curious Yellow

Let’s start with Mark Hurd’s exit from HP after five years of great financial performance as CEO. If you missed the fireworks, you can get a refresher in this Business Insider post by Henry Blodget, or this excellent NYT piece by ace columnist Joe Nocera.

In twitter terms, it looks like this: A “marketing contractor” claims Hurd sexually harassed her; an inquiry fails to substantiate sexual harassment but finds “an inappropriate close relationship”; the investigation also reveals that expense reports were fudged in order to conceal a tête-à-tête with the female. Mistakes were made, Hurd is fired. End of story.

Not quite.

When a CEO gets the boot, a modicum of decorum is usually observed . Not this time. From HP’s General Counsel we hear that “Mark demonstrated a profound lack of judgment that seriously undermined his credibility and damaged his effectiveness in leading HP”. And that’s on the record.

In her memo to the troops, Cathy Lesjak, HP’s CFO and now interim CEO, accuses Hurd of “misusing corporate assets,” referring to the illegitimate expense reports and alleged payments to the erstwhile soft-porn actress for work not performed.

But forget the salacious details; there’s always Google for that. What puzzles most of us is the exit package story. HP maligns Hurd, accuses him of what lay people call fraud… and then grants him an exit package worth tens of millions of dollars, $35M according to unverified estimates. Attorneys, less puzzled than supercilious, sue HP’s Board on behalf of despoiled shareholders.

In the next few weeks we’re certain to get a clearer picture of the inside animosity directed at the cost-cutting, Wall Street-pleasing CEO. His alleged misconduct may turn out to have been nothing more than a convenient pretext, a word that resonates in HP’s history.

Curiouser and Curiouser

This one’s harder to explain: Intel’s acquisition of McAfee. If you own a Windows PC with Intel Inside, there’s a good chance your computer came with bundled anti-virus/anti-spam/anti-spyware software from companies such as Symantec or McAfee. Microsoft entered the fray a few years ago and provides what they call Security Essentials—for free (Microsoft also offers a free safety scan here). PC Tools, AVG, Kaspersky Labs and many others provide the now customary combination of free and paid-for software security products.

In short, this is an active, thriving scene: Symantec’s revenues are at the top of the $5B range and McAfee’s are close to $2B, despite the competition with “free” products from Microsoft and others.

So what possessed Intel’s CEO Paul Otellini to risk his reputation—and more than $7B of his shareholders’ cash—by wading into such a complex, competitive sector? Seasoned Valley observers such as the WSJ’s Don Clark are politely puzzled (see here and here). Otellini intones a new mantra: Security Is Job One. This marks “Intel’s move from a PC company to a computing company”. Sonorous words, certainly, but without a story of higher revenue and profit for the combined companies, there’s not much to back them up.

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Antennagate: If you can’t fix it, feature it!

hardware, mobile internet, Uncategorized By July 18, 2010 85 Comments

…and don’t diss your customer, or the media!

Rewind the clock to June 7th 2010. Steve’s on stage at the WWDC in San Francisco. He’s introducing the iPhone 4 and proudly shows off the new external antenna design. Antennae actually, there are two of them wrapped around the side. Steve touts the very Apple-like combination of function (better reception), and form (elegant design).

And now we enter another part of the multiverse. Jobs stops…and after a slightly pregnant pause, continues: The improved reception comes at a price. If you hold the iPhone like this, if your hand or finger bridges the lower-left gap between the two antennae, the signal strength indicator will go down by two or even three bars. He proceeds to demo the phenomenon. Indeed, within ten seconds of putting the heel of his left thumb on the gap, the iPhone loses two bars. Just to make sure, he repeats the experiment with his index finger, all the while making a live call to show how the connection isn’t killed.

It’s not a bug, it’s a feature! It’s a trade-off: Better reception in the vast majority of cases; some degradation, easily remedied, in a smaller set of circumstances.

Actually, it’s a well-known issues with smartphones. Steve demonstrates how a similar thing happens to Apple’s very own 3GS, and to Nokia, HTC/Android, and RIM phones. Within the smartphone species, it’s endemic but not lethal.

Nonetheless, adds Apple’s CEO, we can’t afford even one unhappy customer. Buy in confidence, explore all the new features. If you’re not satisfied, do us the favor of returning the phone within two weeks. At the very least, we want you to say the iPhone didn’t work for you but we treated you well. If you fill out a detailed customer feedback report, we’ll give you an iPod Shuffle in consideration for your time.

One last thing. Knowing the downside of the improved antennae arrangement, we’ve designed a “bumper”, a rubber and plastic accessory that fits snuggly around the iPhone 4’s edges and isolates the antennae from your hands. The bumpers come in six colors—very helpful in multi-iPhone 4 families—and costs a symbolic $2.99.

The antenna “feature” excites curiosity for a few days, early adopters confirm its existence as well as the often improved connections (often but not always—it’s still an AT&T world). The Great Communicator is lauded for his forthright handling of the design trade-off and the matter recedes into the background.

If you can’t fix it, feature it.

End of science fiction.

In a different part of the multiverse, things don’t go as well.

Jobs makes no mention of the trade-off. Did he know, did Apple engineers, execs, marketeers know about the antenna problem? I don’t know for sure and let’s not draw any conclusions from the way Jobs avoids holding the iPhone 4 by its sides while showing it off to Dmitry Medvedev:

There’s a more telling hint. Apple had never before offered an iPhone case or protector of any kind, leaving it to third parties. But now, for the iPhone 4, a first: We have the bumper…at $29, not $2.99. (And which, by the way, prevents the phone from fitting into the new iPhone 4 dock.)

As usual for an Apple product, the new iPhone gets a thorough examination from enterprising early adopters, and many of them discover the antenna gap “feature”. As one wrote Jobs:

It’s kind of a worry. Is it possible this is a design flaw? Regards – Rory Sinclair

Steve’s reply:

Nope. Just don’t hold it that way.

Steve, No! Don’t diss your beloved customer. No tough love with someone who’s holding your money in his/her pocket.

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Drop that -phone!

Uncategorized By July 4, 2010 14 Comments

I’ll explain the ‘’-’’ in a moment. Today’s piece is about the power of words to shape thought, to distort, to mislead. More specifically, I contend “smartphone” is the wrong word for the new genre of mobile devices.

I’m not completely naïve, however. In the end, I’ll agree there is little chance we’ll settle on another word.

Once upon a time, philosophers held thought preceded words: you thought of something and then struggled to find the right words for that gem. Later, psychologists of the twentieth century persuasion, came to think, no, to say words preceded thought: one could only think of thoughts for which they already possessed words for. As much as I like our dear Lacanians, some of whom hover around the Valley, the word ineffable leaves them… speechless.

Devoid of a clean theory, we can wallow in examples.

The most visible one is the PC, the personal computer. Derivative thought first gave us “microcomputers”, because they were “like” minicomputers, themselves “like” the only serious computers, mainframes — only smaller. Next, because size matters, we’d get nano computers, pico computers, femto computers…

Fortunately, the gestalt, the user experience won: This is my computer, as opposed to the institution’s. The beginnings weren’t always easy: I recall a book called “You bought a personal what?”, published in the late seventies. I also remember our collective indignation at Apple when, in 1981, IBM boldly misappropriated the concept and introduced The Personal Computer and proceeded to win the market, that is until Microsoft gave it to the clones. The P word worked and won.

Decades ago, Motorola was the king of cell phones. Cell was a good word because it pointed to the amazingly powerful innovation of cellular telephony. Previously, mobile phones called a radio station and kept using the same frequency as the user moved around. This severely limited the number of users and forced mobile phones to have powerful radios to stay connected over long distances. With cellular telephony, frequencies  were reusable as users were magically handed over from one lower-powered radio station to another as they drove around, leaving the frequency behind, ready for another user.

The Motorola name came to be associated with radios of all kinds, from cars to the Moon. I recall Motorola execs calling their successfully miniaturized cell phones of the late eighties “little radios”. They were rightly proud of their technical prowess, I owned several StarTacs and MicroTacs. But when cell phones gained PDA features, Motorola’s clock got cleaned by the likes of RIM (Blackberry) and Palm (Treo). For a long while, Motorola’s culture remained backward-focused on the phone part of the customer experience. The new phone boss, Sanjay Jha, is now an Android convert: a couple of impressive Droid devices have put Motorola back in the race.

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