Why the laws of competition don’t apply to tech giants

Monopolies, duopolies, and the role of regulators

The network effect, which states that the value of components in a network increase as the members increase, makes tech giants such as Facebook, Google and Apple almost impossible to slow down once they gain critical mass. The more users of a platform (iOS, for example), the more apps are developed for the ecosystem, making the ecosystem more valuable. Competing with that platform becomes extraordinarily difficult as exponentially rising network value creates insurmountable barriers to entry. Microsoft’s failed mobile OS is an example (see next article). The Verge

dis-rup-shun: As The Verge states, competition is good for the consumer and good for the economy. If the forces of competition are not able to scale the barriers to entry into network-based businesses, then it is the job of government regulators to level the playing field, or at least monitor the powers of those that control the network and access to its markets.

Microsoft’s biggest error ever

Speaking to Village Global venture group, Bill Gates said the biggest mistake in Microsoft’s past was missing the opportunity to be the alternative (to Apple) mobile OS provider – an opportunity lost to Android, which Google purchased in 2005 for the purposes of defeating Microsoft’s mobile strategy. The Verge

dis-rup-shun: For those that tried Microsoft mobile phones, you recall that the company really blew the customer experience opportunity. At the time, there were Blackberry, Motorola, Nokia and upstart iPhone. Microsoft’s error was to think it could squeeze the bloated WinCE operating system into a phone form factor. Rather than looking at the opportunity as a fresh, new ecosystem, Microsoft (Steve Ballmer) saw mobile phones as tiny Windows devices. The error launched Google’s fortunes in the Android business, both in licensing software and building handsets, while missing, likely forever, a future in mobile for both Microsoft and close partner, Intel.

Smart products suffering from lack of intelligence

TechCrunch reports on Samsung SmartThings’ release of a new camera, smart plug and smart bulb. The products work as expected but are described as not very exciting.

dis-rup-shun: Unfortunately much of the smart home industry is still competing on devices — expecting the white box or switch with the most features or protocols to prevail. Machine learning, however, is the competitive differentiation that will make smart homes intelligent homes. By using data profiles of users and ‘understanding’ habits, as well as deviations from those habits, connected products will operate for users, not by users, and will become ubiquitous in new homes and buildings. Connected products that do not use data and data analytics for their operation will remain lackluster to the markets.

Hackers have infiltrated over 10 mobile carriers

According to cyber security firm Cybereason, hackers have infiltrated over ten global wireless carriers and, prior to detection, could have shut the networks down at any time. The firm says none of the carriers are in the U.S., but spread around the globe. CNet 

dis-rup-shun: Global infrastructure, including energy grids, wireless networks, and banking networks are dangerous prizes for hackers. With escalating tensions with Iran and ally, Russia, the West can expect a sharp increase in cyber attacks, and the future of defense will increasingly involve hardening networks and scanning for breaches.

Over 25% of every day is spent viewing a screen

Daily screen time up to 6.3 hours

Mary Meeker’s annual report on tech trends provides some statistics on screen usage. Americans consumer a whopping 6.3 hours of digital media per day, up 7% from the prior year. Last year was the first that Americans spent more time on mobile devices than on TVs. While watching TV, 88% of Americans simultaneously used a mobile device. 41% of those viewers were using the mobile device to discuss the content with friends and family while 71% were looking up information related to what they were watching. Quartz

dis-rup-shun: Conventional television content continues to be less important and watching on-demand or live content on a mobile device has become a priority. While TV advertising revenues are down as a result, the importance of word-of-mouth (word-of-keyboard, actually) is increasing the value of the content. Content that evokes discussion on social media has a longer shelf life as friends and family, armed with recommendations and familiarity, are more likely to select the discussed content from a dizzying array of choices. The task for producers, then, is to create content that creates a social media response.

Verizon Smart Locator helps you find anything

The Smart Locator is a tiny device used for finding anything you lose frequently. Using Bluetooth, GPS, Wi-Fi and LTE, the $100 per year device will locate anything as long as it is within an LTE cell and the 5 day battery is still active. The Verge

dis-rup-shun: The Smart Locator is the essence of Internet of things, as it puts most anything on the Internet. For $100 per year, keeping up with something you value, like a pet, a purse, or a small child, this is a bargain. Most things, perhaps with the exception of small children, will have their own wireless radios in them in a year or two, but until then, the Smart Locator is a good option.

Smart Displays versus Tablets: which is better in the kitchen?

The new crop of smart displays from Google Nest, Lenovo, Amazon and JBL are optimized for the hands free and voice use in places like the kitchen, where ease of use and assistance with cooking and home controls is the objective. These devices run a version of Android called Android Things. Tablets, on the other hand, offer far more customizations, like running Netflix in the kitchen, while still responding to voice controls. These devices run a version of Android’s mobile OS. The difference in experience is significant and both offer trade-offs. CNET

dis-rup-shun: The question is, do our homes need a specialized screen, optimized for different rooms, like the kitchen, the shower, the bedside, or if a tablet located anywhere will do. Separate devices will be displaced by screens built into refrigerators, stoves, washing machines and wall switches, but at the rate of technological evolution, a 10-year-old smart refrigerator will become a dinosaur far more quickly than a dumb refrigerator. Expect built in screens in most new appliances to be as ubiquitous as their control knobs are today, while counter top screens will control and report on all of those smart appliances.

Consumers demanding technology to change healthcare

Mary Meeker says digitization of care is well underway

Now famous tech trend investor and publisher of annual trends report, Mary Meeker, has stated that the digitization of the health care industry is responding to consumer pressure to be more transparent and convenient. Areas impacted are health care records, health information, scheduling appointments with providers, measuring health with wearables and devices, and telemedicine. ZDNet

dis-rup-shun: The health industry has been slow to embrace technology, primarily as care payers have been unwilling to pay the cost of new technologies. A bonus of the Affordable Care Act has been a restructuring by Centers for Medicare & Medicaid Services (CMS) of what procedures get reimbursed by the U.S. Government. The shift to consumers paying a larger portion of healthcare has resulted in demand for technologies to increase convenience, offer more information, and reduce costs. Healthcare is shifting to a consumer, not industry, driven marketplace and the growing demand makes it great business for technology companies.

Cozy relationship between DOJ and Apple, Google

The DOJ has been reported to be considering anti-trust investigations against Apple and Google, while the FTC may be looking into Amazon and Facebook. Senator Elizabeth Warren, however, has determined and announced that the person at the DOJ in charge of a potential inquiry is Assistant Attorney General Makan Delrahim, a man who was a paid lobbyist for both Google and Apple. The Senator is calling for Delrahim to recuse himself if any inquiry occurs. Gizmodo

dis-rup-shun: Senator Warren is doing her part to drain the swamp and expose the increasingly cozy relationships Silicon Valley has formed with Washington through an army of lobbyists. The GAFAM (or FAANG, if you prefer) big-five are increasingly setting pricing and policies on the Internet, and are counting on their political investments to pay off, but an increasing consumer backlash on privacy and data standards will make for a rougher road.

Amazon ends restaurant delivery businesses

Amazon has announced the end of two U.S. food delivery businesses: Amazon Restaurant and Daily Dish. At the same time, the company has increased its stake in delivery business and former competitor, Deliveroo. Deliveroo, based in the UK, is Uber Eats largest competitor. Engadget

dis-rup-shun: We are not accustomed to hearing about Amazon retreating. Amazon is not afraid to lose money in new ventures, and is generally patient. If the company believed that there is no future in food delivery by car, it would likely not have invested in Deliveroo, unless to keep Uber Eats in check as Amazon’s developing drone fleet will challenge Uber’s fleet at some point in the future. Amazon likely wishes to use its stake in Deliveroo to stay connected to the business until it can provide a more profitable form of food delivery than people in cars.

The European Union implements drone regulations

The EU has drafted specific operating requirements for drones, allowing registered drones to fly across borders. The regulations categorize drones in three classes, based on size, purpose and degree of risk. The regulations are likely to be in effect in one year. TechCrunch

dis-rup-shun: The EU is establishing itself as the efficient and effective regulator of technology. The General Data Protection Regulation (GDPR) data privacy standard, adopted in 2018, changed the way that big data companies operating in Europe store and transmit personal data, including processes and disclosure. Kudos to the EU for taking action and demonstrating leadership in management of personal data, and now drone usage.

Ikea’s robotic furniture makes arranging easy

Ikea launches line of robotic furniture

Ikea’s upcoming furniture line features wheels that, with a push of a button, reconfigure your rooms to convert sitting or work areas into sleeping areas. With the accelerating migration of populations to cities, real estate is becoming costlier and space, accordingly, more efficient.  engadget

dis-rup-shun: Ikea’s line is not yet ‘smart,’ and does not yet boast of AI, but that will inevitably follow so that one can reconfigure their apartment as they are approaching in their Uber, or so the apartment can ready itself as the usual time, or, of course, so that Ikea can collect more data on sleep habits and inform you if you are sleeping well.

11 Great applications for facial recognition technologies 

CBInsights shows the growth of patents for facial recognition technologies, and lists 11 use cases, including law enforcement, accessing and starting a car, banking authentication, virtual makeup sampling, workplace security and worker alertness, insurance quotes, personalizing food orders, healthcare access and diagnosis, hotel check-ins, shoplifting prevention, travel check-in.

dis-rup-shun: If you use facial recognition on your phone or your PC, you have experienced the ease-of-use and effectiveness of the technology, and if you have “enjoyed” long hotel or rental car check-in lines on your latest business trip, you will be willing to risk a compromise of privacy for some convenience.  After all, you do that every time you surf the Internet — why not share your photo with Google, Amazon, Avis and Hilton?

China launches rocket from a ship at sea

China’s National Space Administration successfully launched a rocket from a cargo ship. The March 11 rocket carried five satellites — two which will be part of a global, space delivered Internet network. China is the third country behind Russia and USA to launch a rocket from a ship, though the first country to do so without cooperating with other countries. engadget

dis-rup-shun: Independence is the name of the game for China as the U.S. tries to force China to change its trade practices. As the U.S. shames China’s Huawei, China will be showing off its technology and flexing its strengths very publicly. The race is on for space, and thousands of new satellites and space objects will be cluttering the skies to provide networking services and military defense outposts. It is the Wild West in space and those who get there first will own platforms for both revenue and national defense, worth billions.

Amazon drones use AI to avoid power lines

Amazon is developing a drone called Prime Air, designed to deliver light loads, under 5 pounds, at high speeds. Challenges that must be overcome are identifying hard-to-see dangers such as power lines or clotheslines, and the craft must land and liftoff in tight spots. engadget

dis-rup-shun: Many obstacles remain for commercial drone deployment, but Amazon will not have to rely on others when regulators open the skies. FedEx and UPS cannot rest on their logistics network laurels, as Amazon plans to fly right over them.

Cracking Amazon’s Choice

Trying to understand Amazon Choice

Amazon.com features products in each category called “Amazon Choice.” Wired tries to figure out what it takes to nab the Choice label, as this spot drives staggering volumes. Choice products are not the most or least expensive, and they can change quickly. For those that shop using voice commands and a smart speaker, Choice makes voice shopping easier.

dis-rup-shun: Cracking the code behind seemingly arbitrary Amazon Choice picks is tough, but it is clear that the company is a master of psychology, understanding that consumers want lots of choices AND are overwhelmed by too many choices and need a recommendation. Why not offer both? Differentiation has always been the key to sales success, and never before has it been so important.

Ring adds more smart lighting

Ring, an Amazon company, has released a new line of outdoor lighting that uses motion sensors, Wi-Fi, and connects to a home hub. The “smart” occurs when a motion sensor detects movement, turns on the light, and activates a camera, and vice-versa. The lighting additions complement the company’s offerings of doorbell, cameras, and security hub and sensors.

dis-rup-shun: The biggest growth in the smart home market is coming from point solutions, such as Alexa, Ring, Hue, and smart locks. These devices present a simple and affordable value proposition. Consumers get it. The billion dollar question is, can these point solution sellers surround their hits with layers of products which, voila, create a system that merits monthly subscription fees? The answer for Ring and Alexa appears to be yes, as they are tirelessly adding to their ecosystems in a Legos or Garanimals manner, increasing options, value and revenues.

Stanford prof launches 105 satellites 

The KickSat-2 project (2 for second attempt), a project born at Stanford with the support of Cornell, launched 105 tiny, cracker-sized square satellites from the International Space Station this past March. The tiny satellites are in low orbit and communicate with one-another and with a base station on Earth. TechCrunch

dis-rup-shun: Nano satellites are small, less expensive, and specialized in function. Corporations and organizations that prefer a private communications device could become users of this technology in the future. Who needs a personal satellite? There was a time when people thought mobile phones were just for special people.

Trade war spurs Chinese semiconductor business

As the U.S. government’s fight with China’s Huawei has resulted in starving the company of many technology components, China is pushing hard to accelerate its own semiconductor industry. CNBC

dis-rup-shun: The impact of the escalating trade wars, regardless of being quick or drawn out, will undoubtedly change the global economic mix, as China commits to never being in this position again. The trade wars will make for a stronger, more independent China that will begin to demonstrate its strength in 24 to 36 months with its own technology breakthroughs.

Amazon and Google and federal scrutiny

Amazon and Google under federal scrutiny for unfair competitive practices

The Washington Post (owned by Amazon’s Jeff Bezos) reports that the FTC and DOJ have divvied up duties of looking into the practices of Amazon — a job for the FTC, and of Google, to be handled by the DOJ. 

dis-rup-shun: Google’s dominant search engine and Amazon’s marketplace, together with Prime subscription data, enormous logistics resources and leading cloud platform, AWS, put the companies in the difficult position of direct competition with most of their customers. Owning the very rails of the online market, the Post puts it, is akin to the railroads of the late 1800s. The “coopetition” position of the companies — as they both compete and serve their customers, will undoubtedly be the companies’ defense should the feds take the companies to court.

iTunes is dead

This is the week of Apple’s annual developer event, WWDC. It has been rumored that Apple will shutter iTunes, more tightly integrating movie and music content services into new operating system features, rendering iTunes as a standalone marketplace irrelevant. Engadget

dis-rup-shun: Most people likely fell out of love with iTunes years ago as soon as it swallowed their music collection after their first iPhone upgrade. Launched in 2001, the service was the most important thing that happened to the music industry after music became digital, but iTunes complexity was its demise. By making it difficult to manage and share the content that people rightfully owned, it hastened the shift to streaming music services, which Apple finally joined by acquiring Beats in 2014. By that time, consumers had already tried and settled on several streaming services and the majority chose Spotify. Apple, the company that re-invented music, lost it only a dozen years later.

Space race setback: Stratolaunch shutting down

The race to own space is full-on with several governments (China, Russia, Japan, USA) and several private and public companies (SpaceX, Blue Origin, Lockheed, Boeing and others) aggressively pursuing economic and strategic initiatives. Stratolaunch, space company of late Paul Allen, co-founder of Microsoft, is reported to be shutting down. The company has built and flown the world’s largest aircraft, capable of launching heavy rockets from high altitudes, which reduces the cost and complexity of blast offs from a launch pad.  Engadget

dis-rup-shun: The U.S. government has outsourced space innovation to corporations. The free market will create efficient competitors who will profit from space exploration, but whose goals may not align with political and military objectives. Having a contract with NASA, however, helps stabilize the early days of the new space race.

Odd technology: Muro programmable music box

Muro is a wood and metal retro music box encased by a plastic dome. Unlike its pre-computer predecessors, this version can be programmed with an app to play essentially any tune. TechCrunch

dis-rup-shun: The appeal of an antique-looking and sounding music box playing Guns N’ Roses is lost on most, but perhaps this tech novelty will be the rage this holiday season.

Google is following you, everywhere

How to control Google’s tracking of your every action

As we all know, or suspected, Google follows what apps we use, what we do on those apps, what devices we use, what we purchase and where we go (or where our phones go). Wired provides simple instructions to limit or disable those functions without pulling the plug on your online life.

dis-rup-shun:  Information is power and consumers are loading Google, Facebook, Amazon, and to a lesser degree, Apple, with more power every day. Whose job is it to inform customers of the choices they are making everytime they install an app or visit a site? Perhaps the Bureau of Consumer Protection, a department within Federal Trade Commission, should take the lead in both informing consumers of their rights as well as requiring a common data sharing dashboard that must be used by all application providers. 

Walmart hires Google/Amazon Chief Digital Officer

Suresh Kumar, formerly of Google, Microsoft, IBM and Amazon, will be Walmart’s new CTO and Chief Development Officer, reporting to Walmart CEO Doug McMillon. TechCrunch

dis-rup-shun: Walmart, the company that used to be the most feared for controlling the way products are purchased, is now only in the top 5 of most feared, with Amazon clearly in first place. Walmart needs to continue to increase its online sales presence, and has a great deal of ground to gain in services, where Amazon is growing daily.

Is AI really going to wipe out vast numbers of jobs?

The Brookings Institute provides a detailed study of the impact of artificial intelligence on the workforce. Key points:

    • Automation substitutes for labor
    • Machines substitute for tasks, not jobs
    • Automation complements labor
    • Automation can increase demand, creating jobs
    • Capital and labor augmentation spurs innovation
    • Tech possibility is not the same as tech reality

dis-rup-shun: So, will AI displace vast numbers of jobs? The answer is that it will displace many jobs, particularly the simpler, task oriented jobs like delivering food or answering simple support phone calls. Past productivity revolutions have increased demand for knowledge workers and AI will do the same, putting greater pressure on the knowledge divide between those educated and those not.

Stargazing permanently impacted by new space objects

Shocking photography of satellite launch

An amateur astronomer captured a photo of the launch of 60 StarLink satellites — the first of 12,000 to be launched in coming years. TheVerge  Astonomers around the world, however, have expressed shock at the realization that each satellite’s solar panel will reflect light back to Earth and be very visible at dawn and dusk — forever chaning views of the night sky. Forbes

dis-rup-shun: Imagine the shock of early farmers and urban dwellers when the first interstate billboards, replete with bright lighting, were erected in their views. Today’s stargazers are the ones shocked, as Elon Musk’s band of low orbit satellites, orbiting Earth to provide a new source of broadband services, will forever change views of outer space. Never fear, the new broadband service will make it easier to surf pictures of uncluttered outer space — the way things looked before space objects changed the view.

Withings smart watch is everything Apple’s is not, and more

Withings, maker of connected health and fitness gear, has released a smart watch that is by bar the most stylish design for lovers of classic watches. The device features fitness and workout monitors, sleep analysis, a vibrating alarm, battery life of 25 days and is water resistant up to 50 meters and okay for showers. Inverse

dis-rup-shun: At a price of $199, Withings enables lovers of fashion watches to enjoy the benefits of a connected device, and with long battery life, the ease of use beats Apple iWatch 4’s expected 18 hours.

Tesla Model 3 is best seller in Norway

Tesla’s allocation of Model 3s arrived in the country in February and quickly put a dent in sales of other luxury models, incluing Mercedes Benz. Norwegians have a high interest in electric vehicles. CleanTechnica

dis-rup-shun: Depite Tesla’s bumpy year, with continuous delays in Model 3 production, softening U.S. orders, and stories of cultural disharmony, the company’s product is still favored by buyers of electric vehicles. For generally affluent and eco-conscious cultures such as Norway, the company’s market leadership will spur accelerated EV development by more established competitors such as Daimler, Toyota, and Volvo.

Alexa intercom feature now on all devices

Alexa’s ability to serve as an intercom between only its flagship devices (Echo, Dot, Show, Spot) has now been expanded to every Alexa-enabled device. The Verge

dis-rup-shun: As many different types of devices, including light fixtures, wall switches, door bells, thermostats and Bluetooth speakers now include Alexa, every home has many intercom possibilities. For busy families with young children or homes with seniors, the application for voice to voice, in-home communications adds a new layer of benefits to smart speakers and further advances Amazon’s lead over Google in this category.

You generate 1.7MB of data every second

Each person, by 2020, will create 1.7MB per data per second

Given that each person’s location is constantly tracked by their smartphone, simply standing still creates data. Driving, however, generates an enormous amount of data that can be mined not only by car makers, but by many parties who can benefit from our patterns, our routes, our entertainment choices and our shopping habits. The auto makers are in an ideal position to benefit from data management, but will likely lose this advantage to FAANG tech giants. TechCrunch

dis-rup-shun: Technology companies, especially Google, Facebook, Amazon, Uber and Lyft, understand that the car is an extension of the mobile phone — simply a service platform that offers not only driving services, but entertainment and communications as-a-service. The automakers will struggle to abandon the legacy model of “selling” 1.97 shiny new autos to each new house for an average ownership period of 6 years, and will find their core business eroded by tech giants and their subsidiaries.

Google providing on call and in-home support team

Google wants to be your device provider and has a team on standby to prove it. If you need consultation on what, where or how to install a home product, a Google support person is on the ready on the phone, or ready to come to your home. Android Police

dis-rup-shun: The good people at Google are playing catch up to Amazon, who not only has the best selling in-home smart speakers and doorbell cameras (Ring), but has had in home support and sales staff, Amazon Home Services, since 2015. Free home service consulting offerings are not profitable, and therefore the people already coming to your homes — the home electronics dealers and installers — are reticent to get into this business while retailers struggle to sell many smart home products that require a lot of explanation and often, installation. In home consultants are filling a gap that will eventually be closed when products are simpler, easier to install, and more familiar to consumers.

Watch a robot pull a plane

The Italian made HyQReal robot is capable of pulling very heavy loads horizontally at low speeds. It is impressive. TechCrunch

dis-rup-shun: If robots will replace jobs performed by humans, then people who pull heavy loads at low speeds should be worried. That would be operators of tractors, bulldozers, forklifts and heavy equipment. But since autonomous trucks and cars are coming, then we should place all drivers on the endangered species watch list.

Facebook continues to clean-up its act

In the first quarter of this year, Facebook reports that it eliminated 4 million examples of hate speech from its site. The company has formed a group of moderators to scrub the population of posts for those items it defines as unsavory. Gizmodo

dis-rup-shun: When a company has more customers and more revenues than many countries on the planet, it has to emulate successful countries and implement its own police force to keep the population in compliance with the nation’s rules. Since politicians have begun to invoke antitrust laws and suggest that the Facebook nation has become too large and must be broken up, expect Facebook’s self-governance to grow quickly and publicly.

Xbox and Playstation play together

Xbox and Playstation teaming up

Sony’s and Microsoft’s gaming console divisions have formed an alliance to stream gaming content from the cloud. The alliance will use Microsoft’s Azure cloud services to provide a better gaming experience to users of Xbox and Playstation. TechCrunch

dis-rup-shun: Google has announced its Stadia gaming steaming platform and has the incumbents looking for ways to blunt the new offering. By making certain that the Xbox and Playstation experiences are as good as it gets, the players hope not be displaced by Google. Google, however, has a reputation for providing great experiences at great prices, mostly free. Another example of how competition benefits the consumer, as the gaming experiences, offerings and prices of all providers will be getting better immediately.

Amazon Alexa Guard turns Echo into a security device

Amazon has activated the Alexa Guard service, which listens for sounds of breaking glass, smoke detectors, and carbon monoxide detectors. If detected, Alexa sends an alert to the account holder’s smartphone to tell them of the potential emergency. These features join Alexa’s capabilities of controlling lights and alarm systems. CEPro

dis-rup-shun: Alexa is on its way to running every system in the home and car. Now we know Alexa is not only listening for her name, but is also listening for certain alerts. This could be a path to Alexa offering many home management services, like telling owners that their AC compressor is more noisy than usual and is likely to fail, or that the refrigerator is working harder than normal and a repair person is on their way.

Google terminating Huawei’s Android License

Gizmodo reports that Google is pulling Android from Huawei, making it impossible for the phone maker to continue offering a feature rich smartphone. This move follows Trump’s executive order that banned U.S. companies from buying telecom equipment from companies that pose a threat to the U.S.

dis-rup-shun: This move will hobble Huawei’s race to catch Samsung and LG in the smartphone department and will lead to retribution from China. Expect China to ban sales of something important to U.S. manufacturing, but not labor.

Hewlett Packard Enterprise announces purchase of Cray Computers

HPE announced they will acquire Cray supercomputers for $1.3 billion. HPE wants to develop a high-performance computing as a service platform for specialized needs when large volumes of data must be analyzed in the era of AI and machine learning.  ZDNet

dis-rup-shun: This acquisition is an attempt for HP to find some differentiation for its cloud service offerings, given that the lucrative cloud business is hot and Microsoft is offering some features to make its cloud more attractive than Amazon. It seems that HP has a real knack for purchasing companies that have already peaked. Apollo Computer, Compaq, Palm, Snapfish, EDS, are a few companies whose growth was already slowing when HP absorbed them.