Red Rocks

Why Microsoft is Jealous of Apple

January 21, 2011

Microsoft has been struggling to find a new line of revenue that will ‘move the needle’ for more than a decade.  Their stock price has gone down 8% relative to 10 years ago.  As a comparison:

  • AAPL (Apple): +3,701
  • AMZN (Amazon) : +903%
  • GM (General Motors): +8%
  • PG (Proctor and Gamble): +87%
Source (1/21/2010)
Not only have technology companies wildly outperformed Microsoft so have large US stalwarts like GM and Proctor and Gamble.  GM even pulled that off despite bankruptcy protection!  Microsoft is struggling for Growth.
Microsoft's revenue by division in the latest reported quarter (Q2 2011 - Ending 9/30/2010):
- Windows and Windows Live: $4.76B - Server & Tools: $3.96B - Business: $5.126B - Online services: $0.527B - Entertainment & Devices: $1.8B
Source
The vast majority of Microsoft's income comes from the same place it has for years: Windows, Windows Server, and Office/Exchange.
There is little growth potential for these businesses (at least in the Western world) as they are nearly a monopoly in the Windows and Office/Exchange business lines.  And these lines of business are under new attacks on several fronts.
Windows: Mac OSX, Netbooks, iPads, Android Tablets (soon), and Chrome OS (soon) are or soon will be increasing their market share.  While it is not one to one, the growth in this area will diminish the Windows market share.
Office/Exchange: The advent of hosted solutions, primarily from Google in the form of Google Apps (Email + Office) enables smaller (and now medium size to large) companies to utilize Google as an alternative to the Office/Exchange monopoly.
Microsoft has focused on new fronts, such as Search (Bing), Mobile (Windows Phone 7), and Gaming (XBox) to provide growth (or backfill slowing growth).  But when you look at the current picture, less than 15% of its revenue comes from outside of the three major cash cows.
The picture looks even worse when you contrast it with Apple.  In Apples most recent quarter (one after the above MS quarter), Apple reported $2.79B in revenue from the iPad.  The iPad, less than a year old, has already surpassed the revenue of all of Microsoft's new endeavors.

(Apple revenue source)

Read More

Photography

January 4, 2011

Photography has been a hobby of mine for the past few years.  I decided to post some of my favorite shots on my website.  You can view them here. The header image for the site was also created from one of these images.

Here are a few samples:

Smart phones: Open, Closed, and Fragmented

November 22, 2010

Android is Open, iOS is closed.  Well, that is one way to look at it.  Steve Jobs would prefer: Integrated vs. Fragmented.  As we’ve learned from politics, (Estate Tax vs. Death Tax), how you name something can dramatically change people’s perceptions.

I don’t believe most of the facts in this discussion are in dispute.  Apple and Google take a very different approach to their mobile operating systems.

Apple takes a very controlling closed/integrated approach.  You can only publish an application on an iPhone if Apple approves it.  The approval process can be opaque at times, though it is getting better.  As Henry Ford said: “Any customer can have a car painted any colour that he wants so long as it is black”; the iPhone comes in one color, one screen size, one form factor.  Old devices are supported for a while with the latest OS, but users are certainly encouraged to run the latest OS, with a somewhat recent version of the hardware.

Read More

Android is a Success, but for Whom?

November 22, 2010

There is no arguing that the market share of devices built on the Open Source Android operating system is impressive.  The Android platform, judged by adoption, is a success.

But who are the winners?

Google, who is spending the money to develop and market Android, obviously hopes to gain from their effort.  While they do not sell Android, they support it to foster more traffic to Google and the web in general, which will, in theory, sell more ads.  When asked about the ad revenue from Android, CEO Eric Schmidt said: “Trust me that revenue is large enough to pay for all of the Android activities and a whole bunch more."  Google’s Jonathan Rosenberg estimated Google’s Android related revenue at $1b annually.  However, this revenue is all indirect.  Would Google be just as well off if the smart phone market were entirely iPhone devices defaulted to use Google and YouTube?

Read More

Using Tycho to Build an OSGi Project

October 22, 2010

I recently migrated the build process for an application from a monolithic Eclipse Buckminster build to a Maven build using Tycho.  Our source code was componentized and runs in an OSGi container, but our build was not, making it difficult to version each component individually.

Because all of our OSGi meta-data was already stored in the OSGi MANIFEST.MF files, we wanted a built process that would leverage that investment, while providing us the flexibility and functionality  a generalized build tool provides.  Maven and Tycho fit the bill.

Read More

Apple Deprecates Java, Escalates War on Flash

October 21, 2010

Apple made a few surprise moves yesterday.  Engadget noticed that the new MacBook Air computers do not ship with a Flash Plug-in pre-installed.  This is another escalation in the Apple vs. Flash battle that started with the iOS devices and is now creeping into the OS X computers.  However, unlike iOS, you can still manually install the Flash Plug-in if you choose.  In the end, this is an inconvenience, but nothing that can’t be resolved by a user in 5 minutes since Adobe develops the Flash Plug-in.

Read More

Forest Fires

September 7, 2010

Today while hiking near Estes Park, CO I saw smoke from two different forest fires.  The larger fire was the Fourmile Canyon fire near Boulder that broke out this morning.  It is not yet contained and the smoke can be seen throughout the Denver area.

The second fire was a smaller file near Lumpy Ridge in Estes Park.  I believe there have been fires in this area already this year, and at this point this one is believed to be minor.

Read More

The Power of Simplicity

August 20, 2010

Small changes in functionality can make big impacts on usefulness, and therefore the value of tools and applications. This has always been true, but is more obvious on mobile devices where limited user input, network access, and screen size magnify the value of a good user experience (UX).

One example of this phenomenon is Wikipedia. On the iPhone, I can look up data on Wikipedia using Safari, or using one of the Wikipedia iPhone applications. At first glance, an iPhone Wikipedia application is absurd. After all, it simply uses the built in Safari to render public web pages to the user. The exact same pages can be viewed using the built in Safari browser, and you can add a bookmark directly to the Wikipedia page to your iPhone home screen. But one difference makes all the difference. That one difference is auto-completion. On the mobile site, Wikipedia does not provide for search auto-completion. You must type in a full search and execute it. If you searched correctly, you can then select the result and view the page. Using the application, you simply start typing, and then select the correct match of your partial search to view the page.

Read More

Is Scala Too Complex?

July 22, 2010

Is Scala too complex to become the ‘New Java’?  This question has been debated before, and there are some good existing posts including:

But I want to take a different angle on this question.  I believe that the use of Scala to build Domain Specific Languages illustrates how some of Scala’s features can be used to create code that can be complex to understand, but that may be OK.

Read More