Interesting article on jockeying for position in the future!
I wonder what St Patrick's Day will bring....
ragingbull.com
Internet everywhere. Anytime. Anyplace. Anywhere. That's the future. The Web is rapidly moving beyond its desktop roots into a new realm of wireless devices. Such devices will help extend the Net consumer's experience beyond the confines of a dusty PC to a vast, new interconnected mobile environment.
Try lugging your desktop PC into a movie theater, a baseball stadium or out into the field on a sales call. It's just not going to happen. Wireless will weave the Web into facets of our life we can't even imagine, all by making e-mail accounts, calendars, contact lists, and other personal information easily accessible. So leave your laptops at home; you won't need them. The next generation of pagers, cell phones, and handheld devices will allow the Net to follow you everywhere.
Making the transition
Realizing what vast potential the wireless market holds, Internet companies are scrambling to make their desktop-based products compatible with wireless devices or invent new formats altogether. While innovative startups are popping up like weeds, established Net brands with millions of existing consumers have the best chance of reigning over this new kingdom. With this in mind, let's take a look at what the Three Pillars of the desktop Net -- Microsoft (MSFT), America Online (AOL), and Yahoo! (YHOO) -- have been up to lately in the wireless world. You might be surprised.
Wireless rally in Redmond
Only three months ago, Microsoft's efforts in the wireless world seemed murky at best. The Redmond, WA-based software titan was struggling in its efforts to grab more market share for its Windows CE operating system in the Internet appliance market. The company seemed equally inept at winning distribution deals for its relatively new MSN Mobile wireless portal.
Fast forward a few months, and Microsoft seems to be gaining momentum. The company recently announced distribution deals for MSN Mobile with wireless carriers Nextel Communications (NXTL) and AirTouch.
And last December, Microsoft announced a joint venture with Ericsson (ERICY) to form a new company focused on the mobile Internet market. It also entered into a licensing agreement last week with Sony (SNE) for Microsoft's Mobile Explorer microbrowser. Both deals illustrate Microsoft's efforts to target handset manufacturers as potential partners in its wireless quest.
Perhaps most importantly, the company announced an alliance with Qualcomm (QCOM) earlier this week to design future wireless devices. This alliance builds upon the Wireless Knowledge joint venture that Microsoft and Qualcomm already have. Add wireless partnerships with British Telecom (BTY) and NTT's (NTT) DoCoMo, as well as roughly 80 million users that rely on Microsoft's Hotmail and Exchange for e-mail, and one can see how Microsoft is striving to be a top player at this wireless poker game.
Exploiting its chat machine
While America Online has been beating its "AOL Anywhere" drum from Dulles, VA for over a year now, the interactive services monster did not elaborate its wireless strategy until earlier this week. In a flurry of announcements, AOL unveiled content and instant messaging deals with Nokia (NOK), Motorola (MOT), Sprint PCS (PCS), Research in Motion (RIMM) -- creators of the nifty Blackberry data pager -- BellSouth (BLS), and Arch Communications. It is AOL's huge user base of popular instant messaging products that is a powerful tool in courting handset manufacturers and network operators.
AOL has also wisely positioned itself in the local content business. Its acquisitions of mapping site MapQuest and movie guide MovieFone, and its buildout of local city guide network AOL Digital Cities, make a lot of sense when you think of an "Internet everywhere" environment of the future.
The Yahooligans walk the wire
Tim Koogle's troops from Santa Clara, CA, have wasted little time in entering the wireless fray. Yahoo was more aggressive than Microsoft or AOL last year in sealing wireless content agreements. It announced a deal in March to provide content for PageNet's pagers and agreed last summer to provide content for Sprint PCS cellular phones. In addition, the company acquired Online Anywhere, a provider of software for handheld devices, and enjoys a content relationship with 3Com's (COMS) Palm (PALM), one of the most high-profile IPOs this year. Not content with merely building its wireless presence in the United States, Yahoo also struck a content agreement with D2 Mannesman, Germany's largest mobile operator, last July. Other international wireless partners for Yahoo include Hansol PCS, SmarTone, and SK Telecom (SKM).
It didn't stop there. Last October, Yahoo entered into a wireless content and services relationship with Motorola. Like AOL, Yahoo has jumped on the wireless instant messaging bandwagon, allowing Windows CE and Palm users to download and install Yahoo Messenger on handheld devices. Given Yahoo's marquee brand and burgeoning user base of over 100 million visitors worldwide, the company will likely seek more content and services agreements in coming months.
Perhaps Yahoo's most interesting Internet appliance play is its recent deal with Hasbro's (HAS) Tiger Electronics. Tiger plans to initially develop two Yahoo-branded electronic products -- an Internet downloading tool, and a palm-sized digital camera. Both devices will smartly link users to Yahoo's Web site.
A world of air
As leading portals and destination sites heat up the battle for screen space on cell phones and other wireless devices, it could make sense for them to distribute their own branded wireless devices. Forget sharing the smart phone or handheld screen with dozens of partners. Branded devices would allow portals and destination sites to become their own gatekeepers of the wireless frontier.
Think of this scenario as the "free PC" and "free ISP" game with a twist, only this time the warfare takes place in the wireless handheld and smart phone arena. Call me crazy, but I can already see signs of such activity in the marketplace. Microsoft is already forging ahead with its planned MSN Web Companion, a stripped-down Internet appliance, and AOL is heading down a similar path with the forthcoming launch of its AOL TV set-top box. The race to exploit wireless content and services has only begun. |
