Dell Earnings Show Innovation Is Not Simply Changing Looks

Dell's earnings was down quite a bit last week.  As a result there was a lot of questions for Dell's future and the industry at large.  Could what happened to Dell's earnings report this week be what is coming for the rest of the tech industry?  More importantly, could this have been avoided?  It all depends on what they said happened and what the reality is.


The economic state the world is in now definitely has an impact on tech spending and there is no argument from anyone about it.  I think we're in for a longer period of slugginess than I think anyone care to admit.  It was good that US Treasury finally acknowledged that we've got issues.  Now, does this bad quarter for Dell also extend to IBM, HP, or Apple?


Obviously, we won't know until these companies report their earnings.  But does this point to a deeper problem being suffered by tech companies these days?  Technology has improved incrementally but stagnation from the labs of these tech companies is also evident.  The biggest technological improvement, if you can call it that, is the proliferation of these so-call netbooks.  Seriously, that's the best these companies have been able to come up with in the last couple of years.  


As far as mobility is concerned (or computing or electronics in general), there really has not been true innovation since Intel and Microsoft tried to convince us that UMPCs are the next step in mobile computing.  True mobility means being able to take your mobile device anywhere you want and being able to power it. It was cool watching the promotional videos for this new class of devices but the truth is of the matter is we're not there yet.  Battery life is one component.  Guess what the other is?


Wireless connectivity also plays a big part.  In truth, whether it'll be 3G, WiMax, or whatever gen 4 mobile 


Once we have these two components in place, there will also be the matter of creating mobile devices that can truly take mobile work, computing, and entertainment to another level.  Building wireless capability like Intel is doing with WiMax is a good first step but mobile devices like tablets or some new class of mobile devices, which we believe Apple and Google are trying to create and dominate, 


So in summary, and we'll make it sound like all this is a piece of cake, is as follows:

• New battery technology - fuel cell, or a combination of super efficient components and battery packaging.
• Wireless broadband - we're talking about unmetered, unfettered access.   About a week ago, Onxo discussed what the Federal Communications Commission chairman wanted for the US.  
• True revolutionary UI and packaging for the form.  

HP has announced their intention to release touch-screened computers next year.  We already have a variety of such devices on the market, albeit incomplete solutions what seems like lackluster implementation, and totally lack of user experience.  

We'll just have to wait until that happens.  Who's going to offer us the total convergence that offer the best complete mobile solution?

Wireless Access Is Like Healthcare Debate

A couple of days ago, in an interview with USA Today, FCC Chairman Kevin Martin said he would like to see wireless broadband access for all of the US, particularly rural areas.  As Martin put it, it's a social obligation.  As some people believe it, it is a necessity for the twenty first century.

While noble endeavor, there are issues that needs to be resolved before this can go forward.  What does Martin want the FCC to accomplish?

• FCC is particular concerned about the rural area being left behind where Sat broadband and dial-ups dominate.
• Will want to use wireless spectrum to bridge gap between rural and urban areas.
• Will want only 25% of this block of spectrum be used to offer free wireless.
• This spectrum is known as AWS-3.  
• T-Mobile, who paid for AWS-1 believes this will disrupt their services.
• FCC engineers are working on interference issues.  
• The universal service fund will be used to subsidize cost for lower-income families - traditional phone companies operating in rural areas will object because they draw on the fund to offset costs (or pad profits).

Just how successful can Chairman Martin be? 

Well, if this is going to be anything like healthcare, not very.  Here is why I think this will be like health care.  Going forward, wireless technology will revolutionize everything we do and how we do it.  Specifically, the how we will do it is the most important aspect about mobility.

There will be billions at stake.  Consider the two camps in health care.  One wants a government sponsored healthcare while the other wants no government involvement but liberalizing the laws to allow for great competition to keep cost down and, hopefully, better care in the process.

Now back to wireless.  On one side, there is the side of the telecoms who believes competition and a hands off approach from the FCC and other government entities (hint, hint...Congress) will foster innovation and lower costs.  On the other hand, there are those who are pushing for free access for everyone.

Free access is to government sponsored healthcare as is private insurances competing for our business is to telecoms competing to for our wireless business.

In the United States, we abhor big government and the fiscal conservatives makes sure we don't forget it.  But we are also a charitable people.  There is a sense also that we are falling behind in areas of technology.  With a society that is connected literally and figuratively, the US can only be in a better position in a global economy that requires instant information and a workforce that is well versed with the right skills and tools to compete effectively.

Good luck.  Love to see it happen finally.  There definitely is a middle ground to make it happen.  We just need the will to make it so.

Tethering

What is tethering?  For mobile communication, it means sharing an Internet-enabled device such as a phone's wireless capability with another device, usually a laptop through a wired connection or wirelessly through the Bluetooth connection if it is available.

Why is this significant?  Well, if you're a mobile warrior, having a fast wireless connection enables you to work just about anywhere your Internet-enabled device has access to the Internet has access.  The effect is untethering you from the clutches of your office, home, or the need for WiFi access.

For the most part, wireless providers provide rate plans and authorized equipments for this purpose.  For example, Verizon offers variety of high speed wireless solutions ranging from tethering in the sense we've defined here to having a a wireless router solution.  However,  router solution does not provide the freedom tethering brings.  Sprint also a great option for tethering.

This is significant as in an increasing mobile workforce.  But so far, it is only seen as a temporary solution when Internet access is truly required.  Most devices offer a degree of Internet access now such as to e-mails and text messaging.

Furthermore, WiFi access is a common place now and coverage is increasing day by day (onxo mobile tip:  free WiFi access at Starbucks).    I find WiFi more robust for wireless work and precludes the need for a phone to serve as the router, freeing up worries about battery life of the phone.

Keep in mind that you may have tether capability but depending on your service agreement with your wireless provider, tethering may not be allowed.  It may result in cancellation of your contract and fees may be imposed on you.  Furthermore, there could be limitations to how much data you are alloted a month.  Going over that amount may result in additional charges.

Horror stories of bills in the thousands are not uncommon.

Impact:  Last week, we noted the signification of the availability of an iPhone app, NetShare, that tethers the iPhone with a laptop.  In the United States, the wireless provider is ATT, a traditional control freak over its network.  Since it was made available, it was taken down, then put back up on the app store, only to be taken down hours later.  So far there is no explanation.

Onxo believes Apple and ATT may be in discussion regarding the impact of such an app on the overall market.

Net Neutrality, Begged AT&T & Verizon

It's interesting when any giant corporations argue that all is good and there is not a need for the people to worry. That is precisely the time the consumers to start worrying. It is a bit like kids who have already done something bad or is about to do something bad.

AT&T along with Verizon got together to tell the FCC that they already have to tools to enforce net neutrality. Be that as it may, what's wrong with a bit of assurance from Congress? And AT&T getting together with Verizon to make this point? Shocking.

To make the story short, the largest cable provider, Comcast, has been screwing some of its subscribers by slowing down their download speed. It was targeted specifically at bandwidth hogs. P2P kind of things. Or so they said. I'm sure it's not a precursor to the day when folks start to download movies and other media.


The two telecom giants want the FCC to come down hard on Comcast. Keep in mind that no mention of consumers were made of AT&T and Verizon only that less regulation is good for the broadband industry.

This really bare watching as new broadband technology come online in the next few years. A lot of new wireless broadband technology such as Sprint's WiMax and LTE are months of not a couple of years away. Given an increasingly mobile workforce, it would not be inconceivable that one day, users abandon the shackles of today's broadband for tomorrow's faster and mobile services. These are the areas where AT&T and Verizon dominates and they know it.

It's never good when corporations come out against industry regulations and made no mention of consumer welfare. This is an issue we all need to pay close attention to given that it has not registered at all with mainstream Web media.

All mobile warriors, keep an eye on this and let me know if you read any developments.


Update: Here are some links related to this issue.

• AT&T to metering DSL subscribers.
• AT&T spokesman Michael Coe says that given the trends the company is seeing, a form of usage-based pricing for those customers who have abnormally high usage patterns is "inevitable.
• Comcast to user: stop using your cable broadband if you want to keep it.
• Looks like the Canadians are going through the same thing. And they've got more regulations in general than Americans here.
• Webware wonders if Comcast will cut users off. (Only if we let them.) Read the comments by one of the readers, surfyogi2. Way to go, dude. Fight back!
• Really sad for Cox users.
• Roadrunner too. Rot spreading on the net indeed.