Facebook Messenger now makes up 10% of global mobile Voice Over IP calls. Because the audio quality of mobile VOIP calls are higher than the quality of the standard phone calls, the use of Facebook Messanger will continue to go up. Facebook will also add free mobile VOIP feature to WhatsApp.
Two years ago I anticipated Facebook will become a communications medium in which your Facebook ID could become your de facto phone number. I admit that while Facebook Home didn’t succeed at all, with 600 million Messenger users and 800 million WhatsApp users the mobile VOIP call feature could have a global impact on the telecommunication services.
The phone companies will have to rely increasingly on charging for data usage rather than for the traditional voice calls. Even that avenue of profits may become problematic with Google, Facebook, Elon Musk and Richard Branson (through their new satelite ventures) aiming to become global ISPs for over 50% of world population. Telecommunications companies will have to adapt and figure out new ways of generating income.
It’s not just a smart move, it is a brilliant move. Facebook brings back the glory of making software. While many large IT companies rushes to control both the software and the hardware as a way to dominate the market, Facebook is attempting to succeed by just being best at designing great software. In a way this is similar to what Microsoft has done through their partnership with Nokia, only at a grander scale. Google must be secretly brooding now. For a moment Google seemed to have it all, software and hardware together set in motion in a big wave overwhelming their long time foe, Apple. But here it is, the nightmare called Facebook is back on the front page. All that money poured into Android and Motorola hasn’t yet given any assurance that it will lead to world domination as planned.
The beauty of Facebook Home, as a concept as we don’t know how successful this is going to be, is its simplicity. Facebook created a social software layer on top of an entire ecosystem: Android operating system, hardware manufacturers, telecommunication networks and application developers. They have a phone, without having a phone. If there is someone else affected almost as much as Google is that must be Samsung. They have tried hard to build a services shop on their phone for some time, but with not much success. The media still calls the Samsung branded software applications ‘bloat ware’. And here it is, Facebook just comes along and in one swoop they capture the attention of all those eyeballs. At least what they hope they will do.
The move is brilliant, but it doesn’t guarantee success. Facebook desktop attraction started to lose some of its lustre and consumers have cooled off a bit. It will be interesting to see how the consumer will feel when Facebook is in their face all the time. Mark Zuckerberg describe Facebook Home as “highest quality experience you can have on Android“. If this is true, then the chances of broad adoption are greatly enhanced, but if not, the brand might suffer. The highest risk for Facebook is that although this move is brilliant, it may be too brilliant for their own good. Users may feel Facebook is too much into their lives. Success could irritate because by occupying the space in a dominant way it causes resentment. We have to wait and see.
It Facebook is successful, this may lead to the demise of good old phone number system. Instead of calling your friends using the telephone system, you just talk to your friends using the Facebook voice or video chat. Your Facebook ID could well be your next phone number.
An eerie silence is present just before Windows 8 launch. The big stories of the day are the battle between Apple and Samsung, iPhone versus Android, and Google versus Apple. The trending topics on Mashable are in order: Twitter, Google, Apple, iPhone, Social Networking, Google+, Social Media, YouTube, Business, Android, iPad, Google Chrome, and… down the ladder somewhere is lurching Microsoft. No trace of Windows 8.
GigaOm, proudly promoting its own brand of research has almost no trace of Microsoft or Windows 8. Today on its navigation bar there is a prominent Apple menu item and a long list of articles on the home page, only one of which mentions Microsoft related story, although even that is about Xbox music service to launch on Android and iOS. Top articles menu bar has iPhone 5 on a prominent position.
Others are more preoccupied with the imminent invasion. ZDnet and C/Net have tons of articles on Windows 8, but they also have articles criticising the new operating system and predict failure (see below prediction for Win 8 RT certain failure). However, if you browse these two sites, it strikes you how many announcements of new Win 8 products are rushed by a large number of vendors even before the official launch of the platform software. The latest one is from Samsung, the Korean electronics powerhouse who unveils an ultrabook and tablets.
None of the media outlets dares to look into the significance of the new operating system. Sure, it’s risky and judging by the success of Windows Phone 7.5, Microsoft has had an aura of outdated technology. I may be wrong, but I don’t understand why they fail to see the magnitude of Microsoft’s transformation. I can see how they would want to avoid publishing risky prediction, but at least they should take a look at what is going on deep under the surface and forget for a moment the buzzwords of the day. The online journals have columnist who cultivate a loyal relationship with its biased readers. This is always a gold mine for ratings. Whenever and article is published about Apple or Google, an army of loyal fans work hard to make their presence felt. The ratings go up and everyone is happy. Postings about Windows phone 7 have a far smaller ‘stir’ factor.
I don’t have that kind of problem, so I am at an advantage. I can write what I want. To me, Microsoft has achieved an incredible turn around and it has become the innovator, while the others have acquired the status of the conservative incumbents. The tiles introduce a very novel and powerful concept. Because they are designed to be dynamic displaying real-time information pushed by various digital services, the combinations across the massive array of technical services starting from cloud computing platforms, to music, emails, weather, and anything in between, Microsoft is building a super-ecosystem using a quasi-seamless operating system . An example of what kind of services is possible in this super-ecosystem is Xbox Music. This is very difficult to replicate. Google has an excellent search and social network platform, but its operating system is fragmented to say the least. Apple is mono-cultural and built around one service: the AppStore/iTunes.
The signs of adoption of innovation are there: first, all vendors have announced a myriad of products, many of them quite innovative. Secondly, the new products are creating new categories which promise to fill the gap between tablets and laptops. Microsoft Surface is leading this trend. For Microsoft the innovation cycle starts anew.
Thirdly, the IT managers show a great deal of interest in Windows 8. It is interesting that in a survey published on InfoWorld Google Android is loosing share, while iOS is gaining. This is pointing to a problem that Android has in the enterprise space: fragmentation. This makes it difficult to support. Windows 8 will not have that problem and because of its strong compatibility with the legacy Windows platform it will have a faster adoption than the other two. And finally, Windows Phone 8 and Windows 8 RT have a strong support from all vendors. This is where Apples win against Samsung might prove to be a very costly mistake, a Pyrrhic victory. I should also mention Nokia, which released Nokia Lumia 920. For the first time, Nokia looks better on paper than its main competitors, Samsung and Apple.
Windows 8 may have an impact on the education market. iPads are great looking devices, but they are difficult to integrate and use as effective learning tools. The new detachable and convertible ultrabooks may prove to be more practical and for the same reasons IT managers are ready to adopt Windows 8, education systems may have a strong interest in the new devices.
Microsoft still has something reminiscent of its old magic touch. Its like a wand gently tapped on Barnes & Nobles business field to cause an explosion of vividly coloured flowers. It remains to be seen if this field will keep blooming in the years to come.
Microsoft is building strategic partnerships to prepare the launch of its massive Windows 8 ecosystem. Compare this approach with Samsung’s business style. While the South Korean is obsessed by operational excellence and hardware design brilliance, Microsoft is investing in non-IT business partnerships which are the life-blood of the ecosystem.
I suspect we will hear more of this kind of deals from Microsoft, many of them aimed at mobile computing platform.
We haven’t heard or seen anything yet about Windows 8 tablets other than some vague prototypes. I have a hard time to believe that Nokia will not play a major role here. It is going to be interesting, even fascinating to see how the competition between Apple, Microsoft, Nokia and Samsung will unfold.
AT&T hyped the launched of Lumia 900 so much that almost everyone expected to see fireworks in each capital city dedicated to the new Windows phone. Instead stories of sedated customer representatives who would happily talk about iPhone and its apps rather than Lumia keep coming up in many reports that came out today. So why all those noisy promises of a mammoth campaign, bigger than ever, promoting Lumia? It’s a mystery that left anyone scratching their heads. AT&T should care about this if they spend $150m on this campaign.
But the Amazon’s online business never sleeps and it did a much better sales job than the bricks-and-mortar AT&T shops. This is another example why Amazon is eating the lunch of traditional business. It all started on Easter Sunday. The sales started to push Nokia up the sales charts reaching the number five spot. I am not sure how the tally is determined, but there is one detail that tells me how the product fares: the customer reviews. If the number is high is usually a good sign that the product is hot. On Sunday, the number was about ten for the black Lumia 900. That is not impressive at all.
However, in the next day, Lumia 900 reached the top. The black model was top and the cyan was third initially, but then it reached the number two spot. So Nokia got the 1-2 pole position. But to me the most remarkable thing was the number of customer reviews. In one day it climbed up to go past 60 reviews for the black model and 20 reviews for the cyan model. What is going on?
It is impossible to figure out if Nokia will be successful in its attempt to revive its fortunes, but there are a couple of interesting things here that could predict a positive start for the Finish phone maker and for Microsoft through extension. The first one is the rapid increase of the number of the customer review. By comparison, the Droid which used to be on the top of bestseller list and Samsung Galaxy, the second on the list had 54 and 16 reviews, respectively. Nokia did reach those numbers in one day, while the other two phones had at least three months to get those reviews. Secondly, the reviews have almost perfect five stars. This is quite something.
There is something else. Reading randomly those reviews, one could notice some reviewers are encouraging of Nokia and Microsoft. This is interesting, because it shows emotional attachment to the new device and its user interface. Windows Phone is new; it has an unusual design, certainly distinct from the other two operating systems and in combination with an exceptional hardware design, it offers something to the new owners making them proud of their acquisition.
Nokia is currently running a cute ad showing how a guy with a new cyan Lumia 900 gets the attention of a girl to the dismay of his other mates who obviously own iPhones or Androids. I have a sense that the ad cleverly taps into that emotion that comes with ownership of something new and beautiful. It is the only way Nokia can fight the negative of having fewer applications. It is a smart approach, because otherwise, by just comparing technical specs and numbers people will not feel motivated to go for a change.
And by the way, how good is Amazon? Who needs to go through the experience of dealing with sales people that are unprepared to help, when you have great information and all you need to do is to just press a button to get what you want?