Welcome!

@CloudExpo Authors: Scott Millis, Elizabeth White, Pat Romanski, Liz McMillan, JP Morgenthal

Related Topics: Agile Computing

Agile Computing: Blog Feed Post

The Cloud, a Disruptive Technology? Just Ask Nokia!

Nokia just recorded its first quarterly loss in over a decade

It’s often said that the Cloud will be a game changer and disruptive and that statement is put out there for the future but I believe we have already seen a huge example of this in the mobile telecommunications domain.  We have seen in the last twelve months the beginning of a fundamental change in a users relationship with services because of the ability of real time delivery over mobile and fixed broadband. Apple single handedly changed the perception of, not only what dollar value a user would pay, but that they would actually pay at all. In the first 60 days Apple had 100 million downloads from their App Store.  Just think about this…60 days, 100 million downloads ! At the end of September 2009 the app downloads had topped a staggering 2 billion - Phenomenal ! Even more phenomenal is they ripped up the script of the established model and implemented their own.

We have quickly seen other providers such as RIM, and Google quickly adopt the same model, with Nokia lagging behind and then news filtering out that they would launch an App Store at the Mobile World Conference in Barcelona and when they did,  well lets just say that it was not exactly a success.  Microsoft, late to the party as always, are also jumped on the bandwagon with the launch of their “My Phone” service . Samsung have also now launched their own Mobile Applications MarketPlace. This shift has hugely changed the whole model of the Telco market. Nokia, the 100 pound gorilla, is losing market share hand over fist as it struggles to get to grips with this new model. Motorola has lost $3.6 billion as they too struggle to get to grips with this new consumer model.

Yesterday Mobile Crunch ran an article outlining Nokia’s first quarterly loss in over a decade. Nokia made a loss of $834 million and their shares dropped by 6.02 per cent. Apple however, in just over one year,  has become the eighth largest mobile phone vendor in the world (source: strategy analytics). This whilst only competing in the smartphone market and, at the time of the report, not selling into markets such as China. Overall during the past March quarter mobile phone sales fell 13% worldwide, the fastest rate of annual decline since record began, but in contrast sales rose 10% in the US, largely because of Apple. The top 5 handset vendors saw their market share fall from 83.5% to 78%, a decline that is predicted to continue as Android comes of age and Apple continues it’s dominance with low-end entry points into the consumer market.

The whole notion of how to sell to an individual has changed, it has become from the edge and back rather than the reverse i.e. it has proved that users are wiling to not only pay for real-time services and just-in-time applications, but will actually choose their handset provider based on the perceived value and breadth of those services. How many times have you read of a competitive phone review, “In some ways it is a better handset than the iPhone but it just cannot match the App Store for breadth of Applications”. Interestingly not everyone agrees. MobileCrunch also ran an article, “Not every Company needs an App Store“.  I believe they miss the point. The rules have changed and the humble phone has changed to become a platform to deliver services aided by on-demand cloud applications and services.  Apple’s advertising tells you “want to this, that or the other ? We have an app for that”. Well behind all those apps there are hundred if not thousands of individual developers supplying the “app for that”, and guess where the backend of many of these are hosted ? You’ve got it, on cloud services.

I agree that ideally we would be able to write against one platform for services delivered. Unfortunately the mobile phone OS market is very segmented with lots of players such as Symbian (Nokia), Microsoft, Google, iPhone etc. Having said that their are some initiatives to try and provide some abstraction to allow code / services written for one platform to run on others, such as PhoneGap, which supports iPhone, Android and Blackberry. Ultimately the Genie is out of the bottle and new mobile companies can see the carrot, that is new revenue and business models, which Apple has made reality. Ultimately the vendors will have no choice, with an Open Source OS model in Android squeezing them from one side, and Apple on the other, the landscape is being changed and the 100 pound gorilla is starting to look like an endangered species. Figures compiled by Gartner show that Apples Market share more than doubled in 2008, whilst Nokia’s Market share of the global smartphone Market fell from 47% in 2007 to 31% in 2008, and based on projections in the Gartner analysis, this would make Apple the leading global smartphone provider by 2011.

Syndicated from my original blog post on Cloudiquity

Read the original blog entry...

More Stories By Jim Liddle

Jim is CEO of Storage Made Easy. Jim is a regular blogger at SYS-CON.com since 2004, covering mobile, Grid, and Cloud Computing Topics.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@CloudExpo Stories
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
"MathFreeOn.com is a line coding platform for engineers and scientists. When they want to solve an engineering problem and they have to use software - they have to pay a lot of money for licenses - but with MathFreeOn you don't have to pay a lot of money. Just go to our site and write the code and you can check the result right away," explained Simon Lee, CMO of MathFreeOn, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Cla...