Amazon sought to buy BlackBerry maker RIM

Looks like more bad news are piling up for RIM. It makes sense for Amazon to control another corner of the network triangle. I just wish they had better options than RIM at this point. I haven't seen a good plan and value proposition from Amazon or RIM to recruit the developer community to develop on their products. Until then, their products (tablets or phones) will lack a vibrant application ecosystem.

Disruption at work: Apple's iPad

Apple has done it again. The Cupertino guys have, one more time, dramatically changed how people consume digital content with their new iPad device. This is on the same scale as the iPod and iPhone introduction. Digital content streaming is going to explode with the adoption of the iPad. The size, the weight, the resolution and the price make it the perfect device to use in the house. I don't like to look too far back, but Apple is superbly executing on their strategy as discussed in an early 2006 post. So who should be concerned with the new iPad?

• Amazon. It's going to take a lot of work for the Kindle to get any significant traction unless there is a big change in design and business model.
  


• Carriers. AT&T gets a 3GSM model to increase its subscriber base in an environment where ARPU is declining. Verizon and Sprint must be worried and so should be other carriers worldwide.
  


• Print Media. It's going to be very interesting to watch how media companies such as newspapers are going to react to the new device. Why do you want to pay for print newspapers/magazines ever again? I'd better monitor newspapers sales and distribution from now on.
  


• Device manufacturers (Nokia, RIM, Samsung, LG). Apple is all over the house now, they have so many touch points with the consumer that the barriers to entry will be too high for you and you may become irrelevant quickly.
  


• Google. This is a double-edged sword. Apple was first to market but a lot of the device manufacturers may flock to Google to adopt Android. This looks very much like the open vs closed war that we saw before.

All these companies are vying for a dominant position around the network triangle. Apple and Google are appearing as the leaders to control the overall user experience.

Evolution of the Data Center

As I am looking at the triangle to explain the transformations happening around content, networks, and devices I can't help thinking about the other changes happening in the IT industry. Is one driving or enabling the other?

In the past, I talked about utility or cloud computing and it seems that cloud computing is becoming the new buzz word. It is true that content providers, service providers and network infrastructure manufacturers believe in the same shared network service architecture. Cloud computing meets all the scalability, reliability, flexibility and performance (one could argue with this last one :-) required to deliver these services over the web.

Big players like Sun, Microsoft, IBM, HP, Oracle and Amazon are already offering cloud computing services to other companies to run their software. Like email and web hosting in the past, this is not for everyone. Large companies still see their data centers as a competitive weapon and won't let anyone running it outside their four walls. They are using the same convergent infrastructure (server, storage, software) to make their own data centers much more flexible but it will be a while before they transition. This explains the success of VMware ($700M of revenue can't lie).

In the meantime, more cash-sensitive companies will buy computing resources on the web to run some of their software (or buy the service outright from salesforce.com). The data center is evolving to better server the business model outlined in the triangle.

Amazon and Utility Computing

Fascinating article here about Amazon's new bet on utility computing. Jeff Bezos is now going to sell computing power and storage to companies looking to access these resources over the web. Utility computing (or Cloud computing) is nothing new. Sun Microsystems launched its own hosted services based on N1, nearly 3 years ago. What is interesting in this announcement, is that Amazon has been able to integrate computing power, storage, network and provisioning software and offer it as a service while other companies are only starting to implement or talk about convergent IT infrastructure. I'm not sure if this is going to skip one adoption cycle but if Amazon (and other large companies or service providers) is going to be successful, this is going to upend the IT industry in a very significant way. I'm always wary of believing in quick adoption rates and this is going to take time. The route to utility and cloud computing will need more salesforce.com companies first before a move to a hosted converged infrastructure. As any platforms, you need developers to make it meaningful.