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Article from TechCrunch.

“$41 million. From Sequoia Capital, Bain Capital, and Silicon Valley Bank. Pre-launch.

That’s how much a brand new startup called Color has to work with. Your eyebrows should already be raised, and here’s something to keep them fixed there: this is the most money Sequoia has ever invested in a pre-launch startup. Or, as the Color team put it, “That’s more than they gave Google.”

But the founding team goes a long way toward explaining it. Headed by Bill Nguyen — who sold Lala to Apple in late 2009 — the company has attracted a wealth of talent. It has seven founders including Nguyen and company president Peter Pham, who previously founded BillShrink. And its chief of product is DJ Patil, who was previously LinkedIn’s chief scientist.

So what exactly is Color?

Update: The application is now available for the iPhone at Color.com. Android is coming.

At first glance, it looks like another mobile photo app, like Path, Instagram, or PicPlz. You take snapshots with your mobile phone (the app supports both Android and iOS at launch) and they appear in a stream of photos. And there aren’t even any of those trendy lenses to spruce up your images. Sounds pretty basic, right?

But the beauty of Color stems from what it’s doing differently. Unlike Instagram and Path, there isn’t an explicit friend or following system — you don’t browse through lists of contacts and start following their photo stream. Instead, all social connections in the application are dynamic and established on-the-fly depending on whom you’re hanging out with. And your photos are shared with everyone in the vicinity. In some senses this is the Twitter of photo apps — it’s all public, all the time (I’m ignoring Twitter’s protected tweets, since most people don’t use them). Another way to look at it: it’s almost the complete opposite of Path, which is built around sharing photos with an intimate group of friends.

It’s difficult to explain what Color does with a bullet list of features, so I’ll try painting an example that hopefully demonstrates how it works.

Say you walk into a restaurant with twenty people in it. You sit down at a table with four friends, and start chatting. Then one of your friends pulls out their phone, fires up Color, and takes a snapshot of you and your buddies.

That photo is now public to anyone within around 100 feet of the place it was taken. So if anyone else in the restaurant fires up Color, they’ll see the photograph listed in a stream alongside other photos that have recently been taken in the vicinity.

In a crowded area these streams of photos will get noisy, so Color also has some grouping features. Tell it which four people you’re eating with, and Color will create a temporal group with a stream of just the photos you and your buddies have taken. But here’s the twist: because everything on the service is public, you can also swipe to view other groups, to see what the tables next to you are snapping photos of. And you can always jump to the main stream, which shows a mishmash of photos taken by everyone.

It takes some time to wrap your head around, and my time with the app was limited, so I can’t really vouch for how well it works. But there’s some very interesting technology that’s working behind the scenes to make Color more than just a simple group photo app.

First are the social connections, called your Elastic Network. All of your contacts are presented in a list of thumbnails ordered by how strong your connection is to that user. Whenever Color detects that you’re physically near another user (in other words, that you’re hanging out), your bond on the app gets a little stronger. So when you fire up the app and jump to your list of contacts, you’ll probably see your close friends and family members listed first. But if you don’t see a friend for a long time, they’ll gradually flow down the list, and eventually their photos will fade from color to black-and-white.

These social connections are important because they’re the only way to view a stream of photos beyond those have been taken near you. If you fired up Color in that restaurant example from earlier, you’d only be able to see photos that had been taken by friends and strangers within 100 feet of that restaurant. That is, unless you jump to your social connections. Tap on your best friend’s profile photo, and you’ll then be able to see all of the photos that have recently been taken within 100 feet of them. In other words, Color is trying to give you a way to see everything that’s going on around you, and everything that’s going on around the people you care about.

The Groups feature also makes use of this elastic network. In the restaurant example above, the application would likely already know who your friends were based on your previous interactions and would automatically place them in the same group — you wouldn’t have to manually do it yourself.

Color is also making use of every phone sensor it can access. The application was demoed to me in the basement of Color’s office — where there was no cell signal or GPS reception. But the app still managed to work normally, automatically placing the people who were sitting around me in the same group. It does this using a variety of tricks: it uses the camera to check for lighting conditions, and even uses the phone’s microphone to ‘listen’ to the ambient surroundings. If two phones are capturing similar audio, then they’re probably close to each other.

So far I’ve described a compelling and unique photo app with some neat tricks. But how exactly is Color going to make “wheelbarrows of cash”, as Nguyen says?

At this point the company is still very early on, but it eventually plans to offer businesses a self-serve platform for running deals and ads as part of the Color experience (you fire up the app to see the photos being taken around you, and you also see the special of the day, for example).

But that’s just the start. Nguyen has visions of fundamentally changing some aspects of social interaction and local discovery with the app, which he considers part of the so-called Post-PC movement. Using all of the data being collected (remember, the app is taking advantage of all of your phone’s sensors), Color hopes to eventually start recommending nearby points of interest, and maybe even interesting people.

There are still plenty of questions, even about the existing service. This kind of voyeurism — you’re sharing photos with the world and looking at photos from strangers — could take a while to get used to. People may reject it entirely. Or it may be completely addictive. There’s really no way to tell until people start using the app in the wild.

The future is unclear, but promising. And with this much money in the bank and a staff of 27, Color has plenty of time to hone in on what works.”

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Article from SFGate.

“AT&T Inc.’s $39 billion deal for T-Mobile USA could improve the company’s cell service in San Francisco, but it may also mean the end to low-cost phone and data plans.

Acquiring T-Mobile’s infrastructure will increase the number of AT&T cell towers in San Francisco by 30 percent, according to spokesman John Britton.

That’s a significant increase to a network known for its dropped calls.

“We’ve got the same network, so they’re very compatible,” Britton said. “They can easily come together and be integrated. It’s going to be good news for customers.”

Both companies’ networks use a technology known as GSM. AT&T said customers of T-Mobile, which is owned by Deutsche Telekom, would be able to continue using their existing handsets if the merger is approved.

The company would not say how many cell towers it now has, or how many T-Mobile has in the Bay Area. But it said the acquisition would be crucial in helping it meet the exploding consumer demand for wireless spectrum.

In the past four years, AT&T’s mobile data traffic grew 8,000 percent, the company said. By 2015, it is expected to increase by up to 10 times more.

But AT&T’s expanded network will come at a cost to consumers, advocacy groups warned. T-Mobile’s disappearance from the marketplace would mean that three companies – AT&T, Verizon and Sprint – would own roughly three-quarters of the U.S. mobile market.

And the low-cost plans for which T-Mobile is known will probably disappear if the merger is completed, advocates said.

“This transaction would create a vastly more concentrated market,” said Andrew Jay Schwartzman, policy director at Media Access Project. “What that translates to is higher prices, less consumer choice and less innovation.”

The proposed acquisition, which would bring AT&T’s U.S. subscriber base to 130 million, is likely to take a year to complete. In a conference call with investors Monday, AT&T executives said they expected the deal would win approval from the Federal Communications Commission and the Department of Justice.

U.S. Rep. Anna Eshoo of Palo Alto, the ranking Democrat on the Energy and Commerce Committee’s Communications and Technology Subcommittee, called for oversight hearings on the proposal.

“Competition is essential to promoting a vibrant wireless market, where consumers have a choice in the innovative services and devices available to them,” Eshoo said in a statement.

Customers will not notice any changes in their service until after the merger is completed, AT&T said.

A combined AT&T and T-Mobile would also make the next-generation communication standard, known as LTE, available to 95 percent of American households, or 46.5 million more than were eligible to receive it otherwise, the company said.”

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As a technology scout, I often look for new behaviors of consumers in order to predict technology evolutions. After some time looking into the GroupOn trend, I have started to form a mental understanding of sorts. The stakes are high and the social shopping trend presents a new prosperous businessmodel and most large online companies are making the move to harness the trend. Let me explain the separate parts that forms my picture and what it all means.

1. eBay – the online fleamarket.

Looking at what today is widely accepted as a stunning success and moneymachine – eBay took the private entrepreneur online. Craigslist and similar services continue to provide broad audiences for the private seller. The shift from paper to online generated a larger audience and more interest for the second-hand market.

2. Facebook – networking our life.

Through the introduction of online social networks like Friendster, MySpace, Bebo, Twitter and Facebook, personal networks got joined together online. The effects of “Faceboking” you social life is a transparency that newer been visible before. New “check in” services from GPS enabled mobile devices further expose our location and automatically connects us with unknown people on the same location.

3. iPhone – making applications smarter.

As mentioned above, “check in” services like “Places” on Facebook, Loopt, Gowalla and Brightkite brought the social context to the mobile device though their “check in” features. Together with Twitter and Facebook mobile, the social and contextual dialogue is more and more becoming a way of using the technology.

The New, New Market!

So, based on these three separate innovations,a new market is emerging – Social Shopping. Sure, not all new in its core – Amazon have for long had recommendation and 3:rd party providers of used products. But, if I look closer on the trend, and take into consideration the companies that have announced that they are testing similar products – it will be a fierce battle ahead.

GroupOn is the one stealing all the headlines right now, IPO rumors are spreading and the race is on for becoming the leader of the pack. Nr. 2 on the market – Living Social are playing catch up. Recently I was invited to sign-up for Facebook Deals, a service originally launched last year and currently going through updates similar to GroupOn and Living Social. Goggle is testing its Google Offers. Microsoft is using it´s Bing to for similar services.

What does it mean?

What does all this mean you might think. I fell it’s a contextual shopping trend that moves the web 2.0 into a truly social value experience. If you are shopping for something and have the mobile device, you will be able to utilize your location and seek out good deals close to where you are, when you want it. The technology evolution exemplified by iPhone and Android phones with location awareness embedded is the technology enabler. Facebook networks are the social context and audience for spreading the word and eBay entrepreneurs can chase deals and post them on the social shopping sites to generate a self-serving ecosystem that becomes a machine in it self.

One might think that this technology trend, contrary to social networks of relationships (which are personal and limited) like Facebook, have enough room for more than one or two major services. As the trend relies on action rather than relation, its a active usage and active user who drives the equation – on Facebook, it’s all a matter of who you know.

Implications

The biggest question for me is if Facebook will succeed in incorporating their Facebook Deals service into the private social networks as a natural extension of smaller, often local groups of a few hundred people, as seem to be the norm of the personal networks on Facebook. If they succeed, they will steal the market from the pioneers like GroupOn and Social Living and further solidify their position as the premier social destination on the net, if not Facebooks value will decline as a result and focus might shift. Google, Amazon and Microsoft will steal their fair share of the market place, as they own large audiences and often “host” a mature audience searching for little less cool and less hip offerings – with high trust and reliability.

The race is on!

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Article from SFGate.

“It’s been a big couple of weeks in mobile. Verizon Wireless finally got the iPhone. Hewlett-Packard unveiled the first fruits of its Palm purchase last year. Nokia, the world’s biggest maker of handsets, abandoned its once-dominant Symbian mobile software system and demoted itself to a kind of glorified contract manufacturer of Microsoft-powered devices.

The struggle for mobile dominance has entered a new phase. Why would Nokia throw out Symbian, with its 37 percent market share, in favor of software with less than one-seventh of that? Because recently hired Chief Executive Officer Stephen Elop is convinced that Microsoft has better odds of going up against the four other mobile powers – Apple, Google, Research In Motion, and HP – and making its new Windows Phone 7 software a center of gravity for the world’s programmers, manufacturers, and consumers.

“The game has changed from a battle of devices to a war of ecosystems,” Elop told investors at a recent London news conference.

Actually, it’s the same game that created the most valuable franchises in tech history, from IBM to Microsoft to Facebook. All successfully established themselves as “platforms,” in which countless entrepreneurs and programmers developed products and applications that gave value to customers and profitability to shareholders – sucking oxygen away from rivals all the while.

Platform leaders

In the 1960s, IBM trounced Sperry and other mainframe manufacturers by creating a soup-to-nuts stack of hardware, software and services.

In PCs, Microsoft erased Apple’s early lead by signing up hardwaremakers to create cheap machines, and software companies to develop Windows versions of everything from word processors to Tetris.

Facebook vanquished social networks such as MySpace by repositioning itself as a platform – a decision that led to the creation of gamemaker Zynga and other app companies that keep Facebook’s 500 million users hanging around.

What’s different this time is scale.

“Mobile is the biggest platform war ever,” said Bill Whyman, an analyst with International Strategy & Investment. More smart phones were sold than PCs in the fourth quarter, and sales should reach $120 billion this year. That doesn’t count billions more in mobile services, ads, and e-commerce.

This war will probably last for some time, too. Unlike with PCs, where the unquestioned victor – Microsoft – quickly emerged and enjoyed years of near monopoly, no one has a divine right to dominance in mobile. Microsoft crushed its competition by forcing people to make a choice. There were far more software applications for PCs, and most didn’t work on Macs. The more Microsoft-powered machines out there, the more people wrote software for them, the more people bought them, and the bigger the whole system became. Economists have a name for that phenomenon: “network effects.”

Appealing products

All cell phones can talk to each other and handle the same websites and e-mail systems, so winning means making products that function more effectively and appealingly. That sums up Apple’s success.

Steve Jobs figured out long ago that when people spend their own money, they’ll pay for something a lot nicer than the unsexy gear the cheapskates in corporate procurement choose. While others competed on price, Apple focused on making its products reliable and easy to use. Once customers buy an iPhone and start investing in iTunes songs and apps, they tend to stick with the system and keep buying – even though there’s no proprietary lock on the proverbial door.

Apple’s huge sales volume makes carriers and suppliers more likely to agree to its terms. The software that powers everything Apple makes – all variations of the Mac operating system OS X – is as intuitive to developers as Angry Birds is to app shoppers.

The result is economic leverage of staggering power. To create a blockbuster, Apple doesn’t need to spend billions on a start-from-scratch moon-shot of a development project. It just needs to tweak a previous hit.

Take the iPad, which is in many ways a large iPod touch. Apple won’t say how much the iPad cost to develop. Consider these numbers, though: In the year that ended Sept. 30, during which Apple introduced the iPad and the iPhone 4, the company spent $1.8 billion on research and development. Over the same period, Apple’s revenue increased by $22.3 billion. Nokia spent three times as much as Apple on R&D – $5.86 billion – and increased revenue by just $1.5 billion. No wonder that Apple, whose share of total global mobile-phone sales is only 4.2 percent, gets more than half the profit generated by the industry, according to research firm Asymco.

Fast-growing Android

Even Google, Apple’s mightiest rival, got only a $5 billion increase in sales on its $3.4 billion R&D budget. It does have plenty to show for its efforts, though: Its Android platform is growing at a blistering pace. In the fourth quarter, according to research firm Canalys, twice as many Android devices shipped as iPhones.

“Google is being far more aggressive in building its platform than Microsoft ever was,” says Bill Gurley, a partner at Benchmark Capital.

Barring big surprises, the other contenders – RIM, HP, and Microsoft – are in for a slog: too dependent on mobile devices to give up, yet lacking the tools to make much progress. All lost market share in 2010 and have far fewer apps available for their devices.”

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Article from GigaOm.

“A few years ago, Jeff Jarvis, a good friend of mine, published a book called What Would Google Do? When he wrote that book, Google had an aura of invincibility. Fast forward to today: Thanks to Facebook, it doesn’t seem so invincible. The new social web has passed it by. So, the question today is: What should Google do?

I’ve always maintained Google has to play to its strengths – that is, tap into its DNA of being an engineering-driven culture that can leverage its immense infrastructure. It also needs to leverage its existing assets even more, instead of chasing rainbows. In other words, it needs to look at Android and see if it can build a layer of services that get to the very essence of social experience: communication.

However, instead of getting bogged down by the old-fashioned notion of communication – phone calls, emails, instant messages and text messages – it needs to think about interactions. In other words, Google needs to think of a world beyond Google Talk, Google Chat and Google Voice.

To me, interactions are synchronous, are highly personal, are location-aware and allow the sharing of experiences, whether it’s photographs, video streams or simply smiley faces. Interactions are supposed to mimic the feeling of actually being there. Interactions are about enmeshing the virtual with the physical.

In a post earlier, I outlined that with the introduction of its unified Inbox, the constantly changing Facebook had shifted its core value proposition from being a plain vanilla social network to a communication company. Here’s a relevant bit from that post.

Facebook imagined email only as a subset of what is in reality communication. SMS, Chat, Facebook messages, status updates and email is how Zuckerberg sees the world. With the address book under its control, Facebook is now looking to become the “interaction hub” of our post-broadband, always-on lives. Having trained nearly 350 million people to use its stream-based, simple inbox, Facebook has reinvented the “communication” experience. …. Facebook as a service is amazingly effective when it focuses all its attention on what is the second order of friends – people you would like to stay in touch with, but just don’t have enough bandwidth (time) to stay in touch with. Those who matter to you the most are infinitely intimate, and as a result you communicate with them via SMS, IM Chat and voice. So far, this intimate communication has eluded Facebook. The launch of the new social inbox is a first step by Facebook to get a grip on this real world intimacy.

In 2007, I had argued that the real social network in our lives was the address book on our mobile phone. Google has access to real-world intimacy – the mobile phone address book – thanks to Android OS. All it has to do is use that as a lever to facilitate interactions.

In order to understand Google’s interaction-driven social future, one doesn’t have to look far: no further than Apple’s iTunes app store.  As you know, I have switched from BlackBerry to the iPhone, and as a result, I’ve been looking for a BBM replacement, and have been playing around with a score of apps.

In the process of searching for this app, I came across an app called Beluga, which essentially allows me to connect to my friends. And then I can create Pods (essentially Groups) with one or more of my friends. Sort of like what I did on BBM. Except, there’s more to Beluga.

It taps into my social graph (Facebook); it leverages my location, and it allows me to share photos as part of the messaging process. It’s a beautifully designed application that’s very inviting – and the experience is less communication, more interaction.

What’s beautiful about Beluga is it’s as personal and private as you want it to be. It’s just ironic that Beluga was co-founded by three Google engineers — Ben Davenport, Lucy Zhang and Jonathan Perlow — and if you see their bios, it is hardly a surprise that they ended up with an interaction-centric product like Beluga.

Yesterday, I was introduced to a new app called Yobongo, and it comes from a San Francisco startup co-founded by alumni of Justin.tv. It’s a good-looking application that leverages your location, allowing you to find people around you and to chat with them. It is at the extreme opposite of Beluga: It’s open, and you can chat with anyone. It is very real-time in nature. Of course, there are other apps like Yobongo: MessageParty, for example!

What’s common between these two apps is their ability for synchronous messaging. This messaging can, in turn, become the under-pinning of what I earlier called interactions.

Ability to interact on an ongoing basis anywhere, any time and sharing everything, from moments to emotions – is what social is all about. From my vantage point, this is what Google should focus on. If not — you know it very well — Facebook will.”

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