Thursday, January 05, 2006

Google's to launch utility software first

Google's strategy for selling software over the interent looks set to get unveiled tomorrow. And it looks as though they will initially offer a bundle of utility programs. If these succeed, who knows, we may even see an on-demand office suite by year end!

The Wall Street Journal has reported today that the search firm plans to unveil its Google Pack of software that will include Adobe Reader, Lavasoft's Ad-Aware, RealNetworks' RealPlayer, Symantec anti-virus software and instant messaging software from Trillian. The package will likely include Google's search software and its Picasa image management application, Google Talk IM, and Google mapping software.

Pricing and internet packaging are not entirely clear yet. This looks like an interesting start if just a little unadventurous. I just wonder when Google will serve up real alternatives to Microsoft applications over the internet. Come on guys, the time may even be right.

Verizon already making progress in internet TV

Verizon Communications is expanding its television service to more states and has signed up 20% of the market in the first community where it offered the service, Chief Executive Ivan Seidenberg announced today at CES.

They apparently have 20% of the market in Keller, Texas, in just three months since operating there. Keller may not be New York or London, but they have set a fascinating presedent.

And as Verizon rolls out fibre optic to the next 3 million homes, they have already wired their first 3 million, these signs of early success will be vital to them. They have after all invested a massive amount in internet TV, so it better pay off, or the investors will get impatient.

Stringer sets out his stall for Sony at CES

Howard Stringer, Sony's first non-Japanese CEO, has finally eplained his vision for Sony a little more clearly. Other than hammering out the usual cost cutting measures and the reduction of 10,000 employees, he has started to show more of the potential future direction of Sony.

He expressed strong backing for Blu-ray, the Sony-backed high-definition DVD format competing with HD-DVD, backed by Toshiba. In spite of fears of a format war, Sir Howard insisted: “Blu-ray has momentum and it is happening now.”

Most importantly he said Sony would concentrate on four categories in pursuing the changing consumer entertainment market: high definition video and audio technology; digital cinema; video gaming and “e-entertainment”.

Sir Howard defined e-entertainment as products reflecting consumers’ desire for more choice and convenience in how they access entertainment. Which is jargon for consumers pulling entertainment, a la internet, rather than having it pushed at them broadcast style.

His catoegories are broad. It will be interesting watching him put more meat on the flesh by explaining specific category strategies as well as product directions. He promises more in a month or so. They need it, the consumer electronics world is moving at light speed and everyone is piling in. And Sony is no longer the giant they used to be.

Google to announce video download service and free internet software bundle

Well, is the cat out of the bag? It looks like it might be. Larry Page from Google looks set to announce that instead of them launching a Google PC to be sold through Wal-Mart (??) they are instead announcing that they are launching a video download service with content from CBS, ITN and a couple of others. And it's not for free. You'll have to pay for the download.

While your all scratching your heads wondering why this is so exciting, (after all isn't everyone doing it?) it looks like the innovation is a new searchable, on-demand interent repository for all and any video's/TV programs. I guess it will try and become the Amazon of video content and could it also get into music? Mmmm.

As a follow up it also looks like Google will announce a bundle of free consumer (?) software offered via the internet from Google and a select bunch of Microsoft competitors. Mmm, now this looks interesting. Let's hope we won't get as disappointed as we all did the last time Google announced a free internet software thingy with Sun that was the ultimate limp...

HP and Blackstone to bid for CSC?

Rumours are spreading around that HP, with the support of leading private equity group Blackstone, may be preparing a bid for CSC.

The idea seems to be that HP would initially take a minority stake in CSC, presumably with Blackstone taking the majority and if performance measures are hit then HP could end up buying Blackstone out over time and taking CSC over completely.

CSC could be worth around $12bn.

This looks like a potentially bold move for HP's new CEO and would be the first major acquisition since Fiorina left HP nearly a year ago. But it looks like a potentially shrewd move.

HP needs to bulk up more in enterprise services and CSC has great quality people, customers and contracts. The move would cement HP's position as the rightful global challenger to IBM. CIO's should benefit as well, as CSC could do with being part of a larger outfit.

The move also says a lot about HP's new CEO, Hurd. He is cautious and measured. Spreading the risk with Blackstone is something one would never imagine while HP was run by Fiorina, and they only get to take the group over if it performs. In the mean time they could start intergrating offerings and cross-selling HP and CSC services.

Well, we said that 2006 would be ther year of tech M&A, this could be great way to start.

Internet portable phones for MSN and Skype users

Microsoft and Netgear have announced the launch of portable internet phones for MSN and Skype users respectively, challenging Vonage's model. They are clearly no longer happy offering PC to PC internet telephony alone. This is a wise move if they want internet telephony to go even more mainstream.

Microsoft's device for MSN's IM users will be made by Phillips. But perhaps the more exciting and advanced of the two attempts comes from Netgear and Skype.

They announced a wi-fi phone, the size of a large cellphone, that would allow Skype users to call each other without the need for their computers. The calls can be made from a hotspot or over their own wireless home network. The phone shows who is online and available and even allows calls to fixed lines through the SkypeOut service.

This is a big step forwards for internet telephony. How exciting.

Microsoft's Gates kicks off CES - the ageing rock star?

Bill Gates kicked off CES last night with a spirited performance. He told us about Vista and he showed us why Microsoft is making progress in consumer electronics - really.

But the wierd bit about the speech is that Microsoft and Gates tried hard, perhaps a little too hard, to still look hip and trendy and like the tech leaders they kind of are, but like an ageing rock star, ultimately came off as a little passe.

Maybe it's because they had no earth shattering announcements. Their best attempts were a bunch of new media center DVD players, based on the new HD-DVD standard, for the Xbox 360 games console, as well as new portable media players that will be able to display a widening range of movies and TV shows.

Oh and then there's a couple of neat patnerships. One with Phillips will produce a portable internet phone for MSN users and their new relationship with Palm has finally created a Treo Smartphone device. Wow...zzzzzzzzzzzzz.

Don't get me wrong, Microsoft can become a graceful and highly successful ageing rock star, look at Mick Jagger, but they probably can't be hip and cool any longer. They're just too big and too much like the establishment.

The new crown for hip and cool at things like CES has shifted over to Google and Apple for this year. They both have a lot to live up to. And Google's announcements had better be up to the hype. Apple of course are the coolest of all because of their absence!

Wednesday, January 04, 2006

Google at $600!! and Google PC's?!!

OK, ok, so Larry Page is the last speaker at CES in Vegas this week, but does that mean we have to start the year with wild predictions and the usual media frenzy? Well, it seems so.

For investment bank Piper Jaffray & Co have predicted in their Jan 3 research note that the search kingpin's stock would climb to $600 before yearend. Ooh mama! I guess he got a pre-sniff of what sister businessuncut channel business-rant wrote about yesterday, and decided to respond.

So, just as we recover from the suggestion that Google could be worth north of $175bn by end 2006 and be the 10th most valuable company in the US, we get the latest wild prediction that Larry Page is set to announce a stripped down Google PC at CES on Friday. Google have rejected the notion in a counter announcement today!

So, I mean, what's going on. The year has only just started, but Google-mania doesn't let up for a moment.

So, what do we think? We agree with sister channel business-rant that Google's stock will trickle up from today's levels and may even scorch to $500 per share, but not much above that. Google is worth plenty enough where they are and this year will see much more competition.

On the notion of Google getting into the PC game so that they can presumably direct the user instantly to Google services, we struggle even more. Google and hardware could be a dangerous match, even though they, if anyone, could make a free stripped down internet PC work, generating revenues from advertising. But this game has been tried before with a singular lack of success.

Google getting into Wi-Fi we could buy into or Google announcing free on-demand ad supported software we can agree with. Google PC's? Now that seems too much of a stretch. I guess we'll all find out on Friday.

XM Satellite Radio getting into mobile - nearly!

Yesterday we announced Motorola's iRadio service which is designed to take on XM and Sirius in digital radio, particularly on mobile phones. We stated that we believed that XM and Suirius would respond and be the long term winners. And today XM has responded.

They plan to today debut a pair of portable, handheld radio receivers that will also store digital songs.

The two devices, called the Helix and the Inno, and manufactured by Samsung Electronics and Pioneer Electronics respectively, will store and play MP3 files and those encoded using Windows Media software.

XM's two players, part of its XM2Go line, will let users bookmark songs that can be purchased online from its joint venture service with Napster.

Now they just need to get them to be mobile phones as well and bob's your uncle. Come on XM and Sirius, get more seious about the mobile space. Ignore it at your peril.

BellSouth cautiously moves to Internet TV

BellSouth, the No. 3 US local telephone company, has just announced that it has signed a deal to receive satellite video services from SES Global as it moves ahead with test plans to deliver television over the Internet.

The deal with SES Global's US arm, SES Americom, expands on a trial BellSouth began last year with Microsoft to launch a new Internet Protocol television, or IPTV, system in mid-2006.

BellSouth are taking the cautious route to IPTV, avoiding the huge investments that the likes of AT&T and Verizon are making into monstrous new fibre optics networks. I'm not sure that caution is going to pay in this market. They need to remember that their real competition is the cable companies and they are well ahead. For the consumer today, whether it's cable or IP matters little.

As far as telco strategies go we support those being a little more aggressive such as AT&T and Verizon. If you want to catch the cable guys you have to throw big dice and large marketing spends.

Disney first to offer sport on the iPod

I told you CES was going to be all about digital video and YV!

Walt Disney has now reinforced its line-up of video offerings for Apple iPod users with near-instant replays of the current “Bowl” series of American football games and news from its ABC television network.

Programmes from the group’s ESPN sports division, feature animation and family entertainment arms will be made available in the coming weeks, the company said in a statement.

And it now looks as though the other networks are piling in as well, with announcements from CBS, Warner and Fox just around the corner.

Disney’s latest move makes it the first content provider to offer sports.

Disney said condensed versions of Monday’s college football games, the Fiesta Bowl and Sugar Bowl, were due to be available on Wednesday at $1.99 each. Today’s Rose Bowl – the national title game pitting the University of Texas against the University of Southern California – will go on sale on Thursday.

Apple has certainly been quick about securing the necessary content to get the video iPod flying. Good on them. This just proves that TV shows and video sales over the iPod and at iTunes was a huge success over Xmas.

Mind you the mobile phone companies are hot on their heels. This announcement follows the launch of Mobile ESPN, a branded cell phone equipped to deliver news, video, commentary and scores along with its telephone service.

One hugely relevant piece to note is that Disney is creating vital precedent by offering ABC news free on the iPod, supported by advertising. Now this is the way to go. Content companies have to crack free content supported by advertising for many more types of content if they want mobile and handheld content to go mainstream. We firmly believe that it is the lack of free content that is stifling data useage on mobile phones and will continue to.

Oh and btw Apple - when are you announcing the mobile phone iPod?

Chip makers go for the living room

Chip makers from Intel to AMD to TI and Samsung are pushing hard for the living room. Yesterday TechBoard looked at how video was the key theme for the consumer electronics show, CES, in Vegas this week. Now the chip guys are driving this home (pun intended) by saying that their future lies in powering the TV's and set top boxes of tomorrow with chips that will enable greater multimedia power, greater intelligence and greater interoperability.

And armed with their new strategy and new branding Intel is leading the charge. Their entertainment chip aptly named Viiv (rhymes with five or jive) will provide a platform of dual-core processors and chipsets designed to speed the handling of multimedia files in different formats and reproduce them in high-definition video and surround sound. It is appearing first in PC-like devices running Microsoft’s Windows Media Center software and AMD is developing its new Live! platform as an alternative for buyers of Media Center devices.

But the Viiv brand, Intel argues, will assure users of interoperability as content is exchanged between devices made by different manufacturers and Intel is in a unique position to help the consumer electronics industry achieve this.

Samsung and TI are hot on their tails. But with Intel going so aggressively for the living room entertainment market then Microsoft has to benefit in the short term. Now it's their turn to finally explain in user speak what these Media Center PC's of theirs actually do. Then more people might even buy one.

If not, the smart TV or the set top box or the games console or even the iPod might just muscle into the living room and overtake them as the device to drive our entertainment centers of tomorrow. He who does it all for us invisably and simply will ultimately win. Hey, now I'm sounding like an Apple fan. Woah!

Tuesday, January 03, 2006

What's the Consumer Electronics Show gonna be all about

The US kicks off 2006 with their annual Consumer Electronics Show (CES) in Vegas. Only this year it seems more du jour than ever before. After all, consumer electronics is red, red hot. As fashions go, consumer electronics seems to be it and could even remain that way until the end of this decade.

So forget Prada and Gucci and Burberry and hello iPod, Xbox, Playstation, PSP, Rockr and Razr. If you don't have one of these by now your yesterday's news. After all, 2005's end of year shopping binge was headlined by consumer electronics, not clothes or toys or even PC's. Sorry Microsoft.

But, even given all this noise, what's gonna be the big theme at CES this year? Well, it looks like it's gonna be video. Yep, video. Or to be more precise digital video and digital TV. And really, video looks to be the killer app for 2006, both on PC's and mobile phones/handhelds.

And like Apple kicked off the (legal) digital music fad with the infamous iPod, their video iPod seems to be doing the same for digital video. Except for one difference. I can't help feeling that Apple will have nothing like the dominance in digital video that they have managed in music. Maybe they just launched the video iPod a little too late.

For everyone seems to be jumping on the back of digital video and TV. And Hollywood plus the TV networks are piling in and franchising cable companies, telephone companies (both fixed and mobile), internet portals, software companies, mobile and handheld hardware manufacturers, start-ups and more to offer content to their users.

So expect announcements from everyone about digital video. And expect 2006 to be the year that it happens. The losers will be cinema's and could ultimately even be cable companies, who have the stranglehold today. The winners of course will be the content creators and us, the consumers.

We'll keep you posted on the actual announcements from CES in Vegas all this week and give you our opinions. Sit back and enjoy. This is gonna be a great year for couch/desk/car/anywhere potatoes!

Motorola launches iRadio

Motorola has announced the launch of iRadio, which seems to be their answer to subscription based digital radio services from XM and Sirius. Motorola's service is clearly intended to be the mobile phone's digital radio of choice, even though SprintNextel already uses Sirius.

The iRadio service, will include 435 commercial-free radio channels, including genres it identifies as Heavy Metal, Rockin' Cowboys and Angry Women. The service will let users download channels on the computer and transfer them to play on their phones or on car or home stereos, like satellite radio. The iRadio service will cost about $7 a month but the price may vary depending on which wireless phone service the subscriber uses.

Motorola are offering iRadio on the all new Rockr E2 music cellphone, which will not include Apple's iTunes as the first Rockr did. Interesting that they've dumped iTunes for their own service.

Motorola are quick to point out that the iRadio service is designed to be complementary to mobile network operators music download and streaming services. Well, it'll need to be as most major mobile operators are or have launched their own music services to rival iTunes on a cellphone.

I'll say one thing for Motorola's iTunes, at least its not just another music download/streaming service. They seem to be dime a dozen at the moment. This seems to be an innovative attempt to fill a potentially powerful mobile niche that done right could be popular (XM and Sirius have proven that) and complementary to operator services. I just wonder if they can really compete with XM and Sirius, after all, they have one huge head start and great channels and DJ's.

So good luck Motorola, but my money's still on pioneers XM and Sirius. Unless of course I'm missing something.

Microsoft starts the year off with a bang!

Well they say how you start is generally how you finish. Let's hope not for Microsoft in 2006. For they've started with one heck of a virus scandal.

The flaw, which allows hackers to infect computers using programs maliciously inserted into seemingly innocuous image files, was first discovered last week. But the potential for damaging attacks increased dramatically at the weekend after a group of computer hackers published the source code they used to exploit it. Unlike most attacks, which require victims to download or execute a suspect file, the new vulnerability makes it possible for users to infect their computers with spyware or a virus simply by viewing a web page, e-mail or instant message that contains a contaminated image.

And any version of Windows is apparently under threat. Microsoft are so taken aback by this attack that they can't produce a patch until at least 10 Jan. And they even seem to be promoting various work arounds, including ones produced by programmers not employed by Microsoft! Corporate IT managers will be running scared.

And poor old Microsoft was only a few weeks ago trumpeting how successfful they were in 2005 at stemming the tide of endless Microsoft hackers. And 2006 is the year that Windows gets revolutionised with both live.com and Windows latest edition, Vista. Both could actually make Windows even more vulnerable. Let's see. In the mean time, watch out there's a hacker about...