Microsoft on iTunes: "We were smoked"

This is an interesting peak behind the curtain at The Great Oz (Microsoft, circa 2003). Founder Bill Gates and product manager Jim Allchin admitted that Apple caught them unawares- again- and wondered how and why the record companies would let something like that happen.

Even more telling, Gates urges his team to "move quick to both match and do stuff better" than Apple in the music space. Seven years later? The Zune. And Zune Marketplace. Actually, the Zune is a good device, and TZM has certain advantages over iTunes, including a subscription model, for those who prefer it, albeit an expensive one. Yet the Zune has a tiny fraction of a market completely dominated by Apple, in a role-reversal of the desktop OS market, where MS is the 800 lb. gorilla.

It is good that Gates and company recognized a problem. Not so good that, after 7 years, they are nowhere near a leadership position in that market.

This is an apocryphal story akin to Ken Olson, president, chairman and founder of Digital Equipment Corporation (DEC), who, in 1977 declared “There is no reason anyone would want a computer in their home.” MS has sleepwalked through much of the last 2o years, relying on it's massive installed user base and gobs of cash instead of innovation and superb execution. In the lightning-paced world of technology, it may be their undoing.


Full text of the disclosed emails follows here, courtesy of Techcrunch:

Apple tablet? Oui

L'interview politique de Jean-Pierre Elkabbach
by Europe1fr

MocoNews reports that French mobile network Orange France's Deputy CEO Stephane Richard confirmed the existence and imminent release of the Apple iSlate.

At 6:15 in the video, you can hear the following exchange, in French. Nothing out of context; this is the context.

Jean Pierre Elkabbach: According to Le Point, your partner Apple will launch a Tablet...

Stéphane Richard: Yes.

Jean Pierre Elkabbach: ...with a webcam...

Stéphane Richard: Yes.

Jean Pierre Elkabbach: ...would Orange users benefit from this?

Stéphane Richard: Sure! They are going to benefit from the web cam, certainly we will be able to, in effect, transmit images in real time. We are going to modernize, in essence, the video phone that we knew a few years ago... the size of the resolution, and the quality of the resolution will be better, and it will be available to all in France.

Start saving your pennies!

Nexus One Launches

Steve, this is your loyal Apple customer base. Um, don't panic or anything, but, you might want to take a look at the new Google Phone. It's, um... well, like... wow. You, you might want to check it out. I'm just saying.

Wow.

What MS has been up to

The Courier is Microsoft's entry into tablet computing, albeit with a twist. It's not a tablet, it's a booklet. A hinged, double-screened notebook computer with a combination touchscreen and pen stylus user interface. It looks sexy as hell, and this demonstration video illustrates how it will likely work.

I love this! I've been ragging on Microsoft pretty hard for the last couple of years, and with good reason, frankly. But this is great news for consumers, and maybe, along with the advent of the new Windows 7 operating system, and the Bing search engine, could keep Microsoft relevant, even if they are lagging seriously behind in the smartphone arena.

What's more, it could keep Apple, Google, and Amazon on their toes. It does seem like MS is targeting a very different user need with the Courier. I think most people are expecting the new Apple iSlate to compete more with the Amazon Kindle, and it's own iPod Touch, than with HP and Dell's tablet offerings.

I can't wait for Christmas 2010!

Apple iSlate vs. Amazon Kindle: eBook Steel Cage Match!?

The Apple rumor mill is now projecting that all the activity around an overgrown iPhone-like device will not be an Apple "netbook", or tablet computer, but rather an eBook reader, set to compete with the Amazon Kindle and Barnes & Noble's Nook. Supposedly called the iSlate (yeesh...), the Apple reader will have a separate part of the App store dedicated to eBooks for the device.

This makes a lot of sense, in the wake of certain publishers who have released their book publications as iPhone apps, rather than as PDFs, Kindle Books (.azw format), or .mobi (MobiPocket format). The advantage of this for Apple is that it leverages their current iPhone/iTunes Store momentum and infrastructure, while maintaining ease-of-use for customers. It does, however, mean more VHS/Betamax format wars for consumers.

Right now, it looks like Mobipocket and other formats, used by open-book readers like Sony, the Nook, Philips', and others, are fighting an uphill battle, at least in the U.S. The Big 3 in the electronic publishing industry are PDF, MobiPocket, Kindle Books. But even though an iPhone app is not really a file format, is is a method of delivery, which is ultimately what the file formats allow. Amazon and the iTunes Store offer convenience of delivery, sync, and portability, while PDFs offer print options and ubiquity due to a 15-year head start. Since Amazon purchased Stanza, buying books from the Fictionwise book store has become more disjointed and harder to do. IPhone app-books, in contrast, are becoming easier and easier to download. Another advantage for iTS users is that they can purchase their audiobooks from the same place, to the same devices. Amazon's Kindle does "read" certain books to you, but reviews of the auto-reader are mixed.

No doubt Android (Google's smartphone OS) will be incorporating app-books into it's store soon, if it has not already. That, together with Google's recent eBook moves and it's ginormous search-engine audience, could be the beginning of a slow death of Amazon's initial raison d'etre. I foresee an Apple vs. Google fight to the death in most consumer information markets, including eBooks.

Good thing Amazon has leveraged it's cloud computing and fulfillment infrastructure into separate businesses. Wonder what Microsoft is up to?

Austin shares it's Smarts

Austin has teamed with German auto maker Daimler-Chrysler to debut a new type of "company car" for city workers. The program will use the company's very popular, and very eco-friendly SmartforTwo cars, which are itty-bitty little things, and go for, like days, on mere lighter fluid. Or something like that. Workers get to walk up to any car that's parked, swipe a card, get in and drive off. Kind of like cops do with their cruisers.

It's not quite the Singapore solution of charging people (a lot of) extra money to drive into the city instead of using public transport, but since we don't have a tremendous amount of public transport anywhere in Texas, this is a pretty clever second.

I love that Austin is at the forefront of international innovation. It really is a forward-thinking and fun place to live. Of course, there is a downside.

Sign documents on the go from your iPhone

Zosh iPhone application video demo from Joshua Kerr on Vimeo.

Zosh has just released an iPhone app that allows you to sign PDF documents. From your iPhone. And date them.

I'm sure there will be privacy concerns, which the company should address through a well-crafted and well-implemented user service agreement. But this really is technology that is long overdue, and is the implementation of e-signature technology that we've been expecting since the year 2000, when President Clinton signed that act into law.

Goodbye, fax machines. And good riddance! (J2, and fax makers everywhere, are you paying attention?)