Locked in Battle - Microsoft, Apple, and Google

Nobody can have missed the animosity and confrontation between Google and Microsoft. Fierce competition is a good thing but I am somewhat surprised by the sustained hostility and fervor. Apple is certainly also a player and competes with both Google and Microsoft in different segments but there is just not the same kind of hostile energy when Apple is involved.

Microsoft has a huge lead in the operating system market. Google is moving into this market and is in a position to finally bring Linux to the masses. However, the primary objective is surely not to directly challenge Microsoft but rather to develop a niche and chip away the impression that Microsoft owns the operating system market. More diversity in the operating system market will certainly benefit the smaller players and not by proportional measures - the gains for smaller players will accelerate as the market is changing. Microsoft will surely remain the leader, by far, for foreseeable future but Apple's OS X and Google's forthcoming Chrome is an attempt to change the dynamic of the market by breaking what has appeared to be a Microsoft monopoly - it is not a bad game plan.

Microsoft is challenging Google in the search market and Bing is a really good effort but it lacks an edge compared with Google and the core functionality - search - is, at best, comparable to Google. Currently, there is simply not enough incentive for users to abandon Google for Bing. But Microsoft will continue to challenge Google and they have time to work on the product.

The cell phone market and portable music player (iPod) markets are equally interesting. Google's Android platform is gaining traction and it will soon appear on more phones. Microsoft Mobile is far behind. Palm and RIMs Blackberry are fading. The iPhone is such a strong concept that it will surely continue to gain in the high-end segment of the market. Apple has managed to create a community driven ecosystem in the apps market and iTunes remains in a strong position in digital music sales - it's a concept that is very difficult to copy even if the competitors will eventually catch up and even surpass the iPhone itself. Microsoft's attempt to challenge the iPod with the Zune is so far pretty far from being a seriously threat.

On the application market is Microsoft's flagship - the Office Suite - under attack from both free software with similar capabilities (foremost OpenOffice) and web based applications such as Google Apps. The latter threat is more serious because it's an attempt to change the fundamentals - from local applications to web based applications. The web based applications have not caught up yet but they're making headway and key functionality such as offline capabilities are slowly emerging. This is a fundamental threat to Microsoft and this is the wider implication of the fight in the browser market. Just like with the operating system market, the primary objective of Microsoft's competition is to defeat the dominance and change the market.

The three companies are big enough to stay in the game for a long time so it will be a long battle. It may not only prove to be a good fight and drive innovation through competition but increased friction in the three areas (search, operating systems and web applications, and hand-held devices) may accelerate the development further and create ripple effects.

Google's Operating System

Google's announcement of the plan to release a Linux operating system, Google Chrome, next year wasn't exactly greeted by a unison voice of excitement from the Linux or from other parts of the open source community. The concerns are many, including fear that it will only splinter the Linux community and that Google will end up owning the world.

I don't know if Google will be successful but it seems like many miss the point of what Google is aiming at doing. The point is not to challenge Microsoft at building the current kind of operating systems. The point is to drive the development of operating systems in the direction of web applications and cloud computing. And that is much needed.

It is a good project. Google has defined a clear mission. It knows Linux very well and understands the power of web apps and the cloud and how to harness it. After all, Google built its breakthrough technology on Linux and a cloud-style design making computers work together. Lastly, no matter how people cut this - it's perceived to taking up the competiton with Microsoft and there are very few companies that can do that in a credible way. Google is one of them.

Vendor Management

Ericka Chickowski lists six CIO mistakes in vendor management in her article in CIO Insight, May 2009. It's a good selection, let's have a look at the mistakes to avoid:

1. Failing to speak with one voice: It's important to manage the interaction with the vendor. Too many cooks without an executive chef is a big risk and managing a vendor by committee doesn't work.
2. Skipping the homework: Investing in the project with good prep-work is usually a very good investment - minimize the need for the vendor to read your mind. The vendor want to avoid mind reading but will have a shot at it if needed - you may not be too happy with the outcome.
3. Fixating the price: The price is important but it's only one aspect. What ueis a good price if the vendor will not deliver a good product or not on time?
4. Using too few suppliers: Reliance on a few vendors expose you to risk and undermine your position in negotiations. Diversify!
5. Only dealing with large vendors: Choosing "safe" and large vendors may not be a guarantee for success. Often, you will get the B-team of a large vendor while smaller companies generally provide direct access to the principals.
6. Signing and forgetting: The signature of a contract is merely the start and checking-in and reviewing status is imperative.

The Browser Market and Web Apps

The browser market is fundamentally different today compare with a few years ago. The latest market share provided by Net Applications leaves Internet Explorer with a 67.77% market share. This is down nine percent from a year ago but the trend becomes even more pronounced when looking even further back such as the above 90% market share in late 2004.

While Microsoft owned the browser market five years ago, it is now a diverse market place with Firefox continuously growing and after passing the 20% mark in late 2008 and now listed at 23.84%. This is an annual increase of about five percent. The diverse nature of the browser market is fortunate as web apps gain increasing importance. Hence, the technology to access the web is not controlled or dictated by one company or group.

Safari has increased its market share to 3.53% which is about a percent higher than a year ago. The increase for Safari is currently not primarily driven by the browser itself but by the success of Apple's products.

The newest player, Google's Chrome, remains at a modest share of 1.79% but the product is still very much in its infancy. Google is pretty open and clear about its ambitions, as articulated in a recent interview - serving as a catalyst to improve the JavaScript capabilities of all browsers seems to be one of the principal motives behind the project.

How will the future browser market look like? If the current trends will remain steady may we in two years have a situation with IE at 50%, Firefox 30%, Safari 15%, and Chrome at 5%. However, that assumes that there are no disruptive change.

Web Apps - Google Showing the Way (Again)

Once again - Google has built a web based application which is superior to a regular client application. I am referring to the improved Gmail web application for iPhone and G1. The web app was released earlier this month and I took plenty of time to try it out. I have switched now and I am only using web Gmail on my iPhone.

I have noted that the improved web app has, largely, been greeted positively but most reviewers still seems to refrain from switching from the mail app - for instance, as reported on The Web Worker Daily and by bloggers such as Matt Thommes. Email usage and habits may account for some differences of how the native mail app is compared with the web app but I wonder if the reviewers had the patience to really give the web apps a fair chance.

The web app implements key Gmail functionality such as threaded email conversations and labels (and stars). The proper search functionality is an added benefit. But the benefits goes beyond that and the app is, in my view, much smoother and more responsive. It's interesting that the inherit Ajax functionality of the Safari browser offers a richer experience than the native applications - the floating bar is probably the most obvious example of this. I also find it possible to accomplish more with fewer actions in the web interface.

The only real down-side I see at this point is that some buttons are a bit small, such as the refresh button.

What Business Leaders Can Learn from the Military

Colonel Tom Kolditz was the guest at a recent Harvard Business IdeaCast. He is an expert on leadership in dangerous situations. Col. Kolditz is teaching at West Point and the author of "In Extremis Leadership: Leading as if Your Life Depending on It".

Obviously, leadership in extreme situations where lives are in danger is a bit different but the Colonel points our three lessons business leaders should contemplate in the situation with economic uncertainty:

1. With the feeling of increased danger, there is increased focus on the leader. Individuals will rely more on the leaders and try to read how the leader perceives the situation and what approach will be pursued.
2. There is a greater focus on the core competence of the leader while "soft skills" becomes less important as the stakes are higher.
   
3. Trust in a leader becomes more fleeting than normally and trust is largely determined on an assessment of if the leader is going to put the interest of the organization first.

The discussion is also available through iTunes podcast directory as Harvard Business IdeaCast 133.

Top 10 Functions to Outsource

Most of CIOs and CTOs will be asked to trim costs and improve operational efficiencies as the economy labors through the recession. Outsourcing is one option.

Baseline Magazine discussed what functions are most suitable for outsourcing with Frank Casale of the Outsourcing Institute and Allen Weinberg of McKinsey & Company’s Outsourcing and Offshoring Practice Group. This is the resulting top ten list:

1. Application Development. If this is new - start small with a project or two.
2. Testing. This is good to outsource whether you outsource other parts of the process or not.
3. Application Management. If you prefer to keep the dev team in-house, is this an option to make the organization lean.
4. Database Management. You can often buy better expertise in this area for a fraction of price for staff.
5. ERP. Outsourcing in this area has matured and is increasing.
6. Help Desk. Outsourcing the entire of part of the function may cut costs and increase the service level.
7. PC Maintenance
   
8. Systems Integration. Restructuring in the market place (by mergers and acquisitions) will increase the need to integrate systems.
9. Infrastructure Management
   
10. Business Process Outsourcing (BPO).