Sonos feels the burn

Sonos feels the fire from loyal customers

All of us who own Sonos products received a letter of explanation from Sonos CEO, Patrick Spence, who admitted to not handling the Sonos obsolescence announcing well. The letter reiterated that old Sonos gear would not receive feature updates, but would receive security patches. He also announced that the company was working on a way to essentially split home networks into two domains, so that legacy gear could operate in a second environment, maintaining its usefulness in the home without preventing new Sonos gear from having being updated. TechCrunch

dis-rup-shun: It seems that Sonos has forgotten about the scorching, white hot criticism that Nest received when it decided to brick the smart home hub it acquired from Revolv. Criticism was brutal, as it must have been for Sonos. Tech company leaders must remember that their companies have invested thousands of hours and hundreds of thousands of dollars into connecting with customers through social media and image building. Quick decisions that do not put those customer relationships first can torch a stellar image in a matter of days — just ask Sonos.

Why safer cars cost more to insure

Cars are safer than ever and crash rates are down. Insurance costs, however, have risen 29.6% in the past decade. The reasons for the disparity include the rise in distracted driver claims, thanks to the proliferation of smartphones, and the expense of repairing highly instrumented cars. Bumpers, for example, are full of sensors. Windshields are equipped with built-in cameras, high intensity headlamps can cost as much as $1800, and parts of cars are made of carbon fiber. Wired

dis-rup-shun: High insurance rates required to own and operate a car seem to favor the trend toward renting and paying-per-use over ownership. Separately, when we make a transition to self-driving cars, and those cars get in a crash with human-driven cars and the cause is “murky,” whose insurance pays? Expect a period of time when crash data from cameras and sensors from autonomous vehicles make the case that human drivers caused a collision, and the collective reaction from insurance providers for human driven cars will be to raise the rates to “account for crashes with autonomous vehicles.”

Big Tech seeks to change sharing of personal health records

While you read this article, a meeting including some of the largest health information providers in the country, including Cerner and Epic and including Big Tech companies such as Microsoft and Apple, is taking place to discuss a potential action by the Department of Health and Human Services to make consumer health data more open. Today, it is often difficult for a patient to access his or her own health records and move the data between different health providers. CNBC

dis-rup-shun: The question consumers need to ask is, who has given me better access to data that has resulted in self-empowerment? Does authorizing Big Tech companies such as Apple or even Google to house my data in their clouds make for a better healthcare purchasing experience, or is there risk in these companies having access to my very personal health data? While you ponder that question, ask yourself if the current kings of health information are working hard to create transparent, consumer friendly healthcare purchasing markets. It is a very important showdown, and what is certain is that the current system must change in order to improve and our Big Tech companies can certainly bring about change faster than the institutional healthcare data provider incumbents.

Technology for better cat health

The PurrSong Pendant is a Fitbit-like collar that holds a charge for one month and measures your cat’s activity and alerts you, through a smartphone app, when there are changes in patterns, which may indicate that kitty is sick. CNET

dis-rup-shun: Using machine learning to detect differences in activity from a “normal” baseline is being applied to senior care, but can work for most any age or animal species. Annual spending on pet care in the U.S. in 2018 was $72.5 billion, an increase of 4%. Globally, the pet care market is estimated by Grand View Research to reach $202 billion by 2025. Expect a host of connected technologies for pets to enter the market in coming years, following the same introductions for humans by only a couple of years.

 

 

Ready to cut the cord?

Step by step guide to cord cutting

The art of cutting your traditional pay TV service and replacing it with an Internet TV service has become cocktail conversation. Even luddites are doing it. This step by step guide takes you through the process, which involves some new investments: you must have fast, hearty internet service, and you much either replace old TVs with internet ready TVs (smart TVs) or purchase external connections such as Roku or FireTV for those old TVs. When you are ready to end your pay TV relationship, you can return any devices that you are renting (in perpetuity). Between ending rental fees and government mystery fees, you could save anywhere between $50 to $150, not counting your investment in new stuff. Shelly Palmer

dis-rup-shun: There has been an ongoing debate as to whether or not final TV expenses are lower for cord cutters, given all of the great streaming services and add-ons. The bottom line is that traditional pay TV subscribers have been buying most of the goodies, such as Prime and Netflix, and tacking on premium charges anyway, so lowering the base pay for TV services is a big win, especially given that for now, these services are not opposed to account sharing by your kids at college. 5G will upset the internet subscription pay model, in that super fast 5G connections that can power your entire home’s internet needs will challenge your traditional internet service (and may be the same provider), making what we call ‘faster then required’ much cheaper in a year. It’s a moving target, but you have to jump in some time.

The murky future for Sonos

Sonos has announced a trade-in program for some of its first devices, while also announcing that it will no longer support products dating back to 2006 and 2007. The pioneer in streaming music is directing its efforts on supporting the latest technology, all the while suing partner Google for patent infringement. Wired

dis-rup-shun: Sonos makes some of the greatest products in the connected home realm, with a very simple user interface. Sonos is to whole home audio what iPods were to boom boxes, and Sonos became what Bose was to the prior generation — the mark of really cool home music systems. Amazon and Google, with some help from Apple, JBL and others, are displacing Sonos. Research indicates that the most frequent use case for smart speakers such as Google Nest Home and Amazon Echo is to play music. The biggest complaint, of course, being that sound quality is lacking. The smart speaker makers and the Bluetooth speaker makers are upping their sound quality, while adding support for smart assistants, meaning that Sonos’ advantages as a high fidelity provider of streaming music are all but gone. What’s worse, of course, is that Amazon and Google are happy to sell products below cost as they race to be the provider of shopping services, information services, and a hub for smart home products. If you manage Sonos, how do you compete with that?

Proving space travel is safe

On Sunday, SpaceX, in a final safety test for NASA, demonstrated its human recovery module in the event of a rocket explosion. The recovery module is, essentially, a lifeboat that will bring astronauts back to an ocean landing should there be an in-flight catastrophe. The exercise is in preparation for SpaceX’s upcoming transporting of astronauts to the international space station, not yet scheduled but expected in the coming year or so. Spectacular footage of the flawless launch, explosion, Dragon separation, and splashdown can be viewed on Wired.

dis-rup-shun: The exercise will pave the way for the return of U.S. based rockets ferrying astronauts to space — something that has not occurred since the last shuttle mission in 2011. Boeing, the beleaguered maker of the 737 Max, is competing with SpaceX to be the first to return a U.S. based astronaut in space, but at present the aircraft company has a lot on its corporate plate, giving Musk a chance to steal the spotlight. Of course Musk, with his soaring Tesla auto company, highly criticized solar company, and ambitious boring (tunneling) company, among other endeavors, seems to thrive with a lot on his plate. A private citizen eager to purchase a ticket on a commercial space ride has an interesting choice to make: ride on the craft made by the occasionally fiery Tesla father, or ride with the largest maker of commercial aircraft and semi-complete software. I will wait.

Microsoft pushing hard into remote worker software

If you haven’t been working from a remote site, you may not be aware of Slack, a web-based group working software application that makes it easy for remote or headquarters workers to instant message, call, and file share, all from a pop-up app always running on their PC or mobile device. Slack brought in over $175 million in revenue last year, a growth rate of 42% according to Yahoo! Finance. Microsoft has come after Slack with its Teams application, which it built on top of the awkward Skype VOIP application. Microsoft has gone prime time, highlighting on weekend commercials how the application is transforming the way people work. CNBC

dis-rup-shun: Teams and Slack are, in fact, changing the way people work — making it increasingly awkward to use the telephone, tethered or smart, to call a co-worker, when, with a click of a button, one can loop co-workers into a screen session and share a desktop. Document collaboration, while not something that happens in an office, is becoming a common result of frequent use of workflow software. Microsoft, having been blindsided by the commercial acceptance of Google Docs, is not about to give up more of its share of office productivity to San Francisco based Slack, but has declared a full battle to claim the new category, and is bundling Teams with Office 365. Bundling, however, does not ensure success, as Google Chrome has long bested Microsoft’s Internet Explorer and now Edge browsers, despite those being pre-loaded onto Windows computers.

Sonos exceeds $1 billion in sales

Sonos cracks $1 billion

Sonos, the original Wi-Fi music player maker, announced 2019 results of revenues over $1.2 billion. The product is now in over 9 million households and the company’s collaboration with Ikea to build combo lamp/speakers and bookshelf speakers was a huge hit, resulting in 30,000 units sold on day one. CEPro

dis-rup-shun:  I recall seeing a prototype of the first Sonos version. It was cool, but like so many other new concepts, it was uncertain if the market would understand its benefits and generate mass appeal. What the company proved is that a really simple setup and user interface was the difference maker. In the 1990s, people were anxious to extend the convenience of digital music beyond the iPod without dongles, converters and 3.5mm connectors. This little startup became the top home music system, roles which giant Sony and mighty Bose once enjoyed. Sonos has, since 2002, maintained superior design standards, aesthetics, sound quality and user interface. Sonos and Apple are in a design class by themselves, and Sonos is further evidence that superior design, even more than great technology, leads to superior market performance.

Amazon sues Department of Defense 

Amazon followed through with its threats to file suit on the Pentagon’s $10 billion JEDI contract — a project to upgrade military IT infrastructure and house military data on an external cloud. Microsoft was awarded the contract and AWS, believing it was the front-runner on the contract, has stated that the decision was influenced by President Trump and his feud with Amazon’s Jeff Bezos over unfriendly presidential coverage by Bezos owned Washington Post.  CNBC

dis-rup-shun: The results of this suit may set a precedent for losers of large contracts, as deals this big that involve years of proposals and positioning cost a fortune for those firms competing. The DOD has often awarded giant contracts to multiple bidders as if to make it worth their while and to maintain competition throughout the life of the contract. If AWS wins this action, the government procurement process will undoubtedly be amended to make it more difficult for politics to influence the outcomes.

No breakage in Tesla Cybertruck follow-up video

Musk released, via Twitter, a video of the steel ball not smashing the bullet proof windows of the Cybertruck which were smashed not once, but twice during the big reveal. Commentary of the follow-up video on Jalopnik notes that the truck’s door was ajar, absorbing some of the energy of the steel ball.

dis-rup-shun: The great reveal of the Cybertruck seems to be the most talked about event at weekend dinner parties, tailgates and cocktail functions. If you don’t know about the smashed windows spectacle, you have not seen or heard any news since Thursday. In retrospect, this announcement has created more buzz since Apple’s Think Different Superbowl Commercial, and, love him or hate him, Musk continues to be one of the highest profile business people in the world.

Cloud energy efficiency is goal of latest semiconductor start up

Nuvia is a new semiconductor company whose founders are expert at developing chips that are energy efficient — having come from Apple where they developed chips designed for battery powered, mobile devices. Nuvia will take power efficiency technology and apply it to data center semiconductors, potentially saving large amounts of energy in electricity hungry data centers. Techspot

dis-rup-shun: As attested by this weekend’s Harvard Yale football game turned climate change protest, energy efficiency is becoming a political football. Count on BigTech to use energy efficiency as differentiator of cloud services, and certainly energy efficiency is important to operating expenses. Nuvia is in a good position to benefit as cloud services are growing quickly (12% CAGR, according to Gartner).

Dash is back for small business

Amazon Dash Pad automates small business supplies

Amazon’s Dash Button for consumers, the small hardware device that reorders products automatically, was discontinued. The technology has been resurrected in the form of a Dash Smart Shelf — a small Wi-Fi connected platform which is setup to either reorder the designated supplies resting on top of the shelf, or to simply notify someone that it is time to reorder. TechCrunch

dis-rup-shun: This is an elegantly simply application of the Internet of Things with a simple business model that provides businesses with convenience while providing Amazon with a competitive advantage, using established, proven technologies. It is hard to imagine that this concept will not succeed, unless a growing bias against the power of Amazon becomes a barrier to adoption. The IoT industry needs more simple, clear applications such as this to prove the benefits of connecting everything.

HoloLens technology being used in surgery

Microsoft’s HoloLens augmented reality technology — currently deployed as a headset, is being used in sinus surgery at the University of Texas Health Science Center at Houston. The technology provides guide-lines to help guide surgeons as they navigate through a patient’s sinuses. MediView, one company implementing the technology is using it at the Cleveland Clinic, leading the way for broader adoption among doctors. Wired

dis-rup-shun: Remember when you had to back a car up by wrenching your neck to look over your shoulder and look out of the rear window? Archaic. Soon, surgeons will be laughing about the old days when they operated without multiple virtual views and guidelines of patient’s bodies. The safety, quality and time improvements are exciting, and the more these advantages can be quantified, the quicker large institutions will fund and adopt emerging technologies.

Sonos offers non-connected voice control

Sonos has acquired a voice control technology firm called Snips. The acquisition will enable one to control a Sonos speaker via voice without connecting to a cloud and without the voice command going  to the cloud and back to execute commands. Sonos appears to be responding to customer who are unwilling to have a BigTech voice service constantly listening to conversations. TechCrunch

dis-rup-shun: The fact that Sonos has invested in Snips makes an interesting statement about smart speaker technology. The statement is that a significant share of the tech and digital music-loving population will not buy a smart speaker that connects to Amazon, Google or Apple’s cloud services — which must listen for trigger words to function. Rather than accept the fact that a share of the population will not purchase a cloud connected smart speaker, Sonos has invested in technology to address this population. Marketers take note — a very sophisticated technology product company has determined that privacy concerns are a significant barrier to adoption, worthy of a $37 million investment.

A single sensor for smart applications

Smart buildings and smart homes now have to manage a plethora of devices to inform users. Oval is a startup which has developed a five-in-one sensor that senses movement, light, temperature, humidity and water. The $50 sensor, $150 hub and app make implementing simple home or building automation really easy. Oval

dis-rup-shun: Simplicity in smart applications for consumers cannot be over emphasized, and despite the success of hot products like Ring, Nest, Echo and Google Home, smart products are not yet simple enough. Oval is a step closer to the “open the package and it just works” requirement. The industry needs to take note and continue to drive both complexity and prices down.

Target shows Amazon it’s not afraid

Target has figured out omni-channel retailing

Target’s earnings numbers, released this week, exceeded forecasts and reflected same store sales growth of 3.4%. Target has perfected omni-channel retailing, which combines online shopping with in-store pickup or same day delivery through its Shipt offering. Yahoo! Finance

dis-rup-shun: Competition makes companies better, and Target refuses to be crushed by Amazon. Target has determined how to offer both the convenience of in-store shopping and meet the demands of those who want products the same day without entering the store. Expect to see other retail outlets emulate omni-channel retailing — hybrid brick and mortar and online model, and expect Amazon to more aggressively experiment with physical stores.

Bose returns to the leading edge

Bose released a surprise, the Portable Home Speaker, that is both a Bluetooth portable, as well as a Wi-Fi multi-room speaker with voice support from Google Assistant, Amazon’s Alexa, AirPlay 2, and Spotify Connect. TheVerge

dis-rup-shun: Bose, the coveted speaker brand of the 80s and 90s, let Sonos create and dominate the market for Wi-Fi music as it focused on the highly competitive Bluetooth speaker market. Over the past two decades, two segments of digital music grew in parallel: the Sonos-centered middle market whole-home replacement market, using Wi-Fi to stream music throughout the house, and the low-end portable Bluetooth music player. Bose and Sonos are bridging these segments with products that can both stream via Bluetooth at the lake, as well as be members of the whole-house Wi-Fi music system back at home.

Huawei fires an AI salvo

Huawei, despite its ban by the Trump Administration, has released its NVidia killer AI chip set, called Ascend 910. The chip is designed for AI data centers that require fast processing of large amounts of data to quickly establish data profiles. The chip set will compete head on with Qualcomm, Intel and NVidia, among others. CNBC

dis-rup-shun: Earlier this week Cerebras unveiled its giant, AI-optimized processor, signaling a new segment for silicon manufacturers who will serve cloud data centers, autonomous vehicles, drones and robots. Expect a host of similar offerings from Intel, NVidia and Qualcomm as they pursue this specialized category of microprocessors.

Google Photos enables text search in pictures

A new feature in Google Lens, part of the Google Photos app, enables one to search through pictures for text strings, then copy and paste the text using optical character recognition (OCR) technology. ZDNet

dis-rup-shun: A number of expense tracking apps have long supported photos of receipts to input data, but this process relied in part on people to assist with character recognition. Greater ability to convert photos to text means students can snap pics of the whiteboard rather than write notes, product managers can circulate sensitive data from photos of competitors’ conference notes, and people can archive their photos by date, based on images of newspapers, magazines or other dated documents that may appear in the photo. Expect select word processing applications to offer a photo-to-text conversion feature.

Machine Learning capable of chronic disease prevention

AI used to prevent kidney failure

Alphabet’s AI division, Deep Mind, worked with the U.S. Department of Veterans Affairs to develop an algorithm that accurately predicts kidney injury up to two days before it occurs. Kidney injury is an often fatal condition frequently occurring among hospital patients and difficult to detect until its onset. The algorithm is effective at identifying patients who are highly likely to have kidney damage in time to effectively treat them. Financial Times

dis-rup-shun: This exciting use of machine learning, improperly termed AI, relies on vast amounts of hundreds of patients’ records to ‘feed’ the algorithm. This same analysis is promising in detecting many other diseases such as breast cancer, heart disease and others, and will eventually become the primary form of diagnosis, relying primarily on data and secondarily on trained medical professionals. This transformation of the medical industry and relief from a shortage of medical professionals, however, will be stunted by the problem of patient privacy. In order to build effective data sets that are the foundation of detection algorithms, tens of thousands of patient records must be de-personalized for protection of privacy — a thorny issue that HIPPA is designed to prevent.

Consumers tire of expensive phones — leading to softer tech economy 

Consumers were raised on carrier subsidized handsets — meaning a new phone required only a few hundred dollars out of pocket. Given that the latest smartphones from Apple and Samsung cost around $1000 and are no longer carrier subsidized, sales are slowing. Apple’s sales are down 15% and Samsung 11%, according to a number of sources. Consumers are increasingly embracing less expensive phones made by Chinese companies Xiomi, Huawei, Oppo and Vivo. Huawei, despite sanctions from the U.S. government, has achieved a worldwide market share of 15%, a sliver behind Apple’s 16%. ExtremeTech

dis-rup-shun: We have seen cellphone incumbents Nokia, Motorola and Blackberry rise and fall in stunningly swift succession. Surely Apple and Samsung won’t miss the call to offer more variety of price points and let upstart “value players” quickly grab market share, followed by growing consumer approval of the new brands. In the cutthroat electronics business, fast is often not fast enough, and smartphones are a very large driver of the tech economy and associated stock prices.

The confusing world of streaming music players 

Selecting the right streaming music speakers for the right setting is increasingly difficult with many new form factors and options. Wired profiles the major options from Sonos, with prices from $50 to $1100.

dis-rup-shun: As a teenager, the holy grail of music enjoyment was owning a giant receiver (what’s that?) and speakers that were at least waist high. Today, the majority of music fans don’t understand file compression and the loss of high fidelity that came with digital music, and very few understand the best architecture for a whole home audio system. Wired or wireless? Digital to analog or all digital? Sonos is the new Bose, and all but very discriminating aficionados will be content with a digital streaming music player.

Buffett offers success traits

Buffett offers keys to business success

Speaking to a class of MBAs, Buffett advised the group that high IQs will not differentiate business leaders. Instead, he listed traits required to succeed:

  • Fulfill your promises
  • Be honest
  • Be trustworthy
  • Give credit where credit is due
  • Be mindful and emotionally intuitive
  • Manifest humility
  • Be willing to admit you’re wrong
  • Offer help when it’s needed
  • Treat others with respect
  • Be charitable
  • Be patient

CNBC

dis-rup-shun: While high IQs without integrity may lead to problems later in the journey, there is no quantitative score card available to rank workers on Buffett’s list of integrity traits. So for the foreseeable future, organizations will continue to use IQ as a unit of measure for recruiting and hope that their members possess, or will develop, Buffett’s leadership traits.

India going to the moon

India delayed, on Sunday, the launch of its lunar lander and rover project, called Chandrayaan-2 due to technical problems. The mission includes a lunar lander and rover that will explore the Moon’s south pole. Space.com

dis-rup-shun: Lunar landings are so 1960s — why bother? The moon is a convenient platform for a country to showcase its space travel capabilities. To be not only a global, but universal super power, a country now has to have a formidable space program, not so much to colonize the moon, but to operate a fleet of orbiting satellites that will provide future broadband and 5G services, as well as play important military roles including spying, weapons hosting, and communications. India will be the fourth country to land on the Moon (USA, China, Russia have landed, Israel missed).

Employee leaked recordings of Google Voice conversations

Google revealed that employees listen to conversations from Google Assistant that are not related to the watch phrase, “Okay Google,” or “Hey Google.” All of the smart speaker vendors have disclosed that real people listen to samplings of customer recordings to improve quality of speech recognition. ArsTecnica

dis-rup-shun: Listening to conversations for the purposes of development of the technology is not the big deal. The big deal is that 15% of the conversations listened to were not in response to the watch phrase, and therefore should not have been recorded. The fact that the recordings were leaked to a company in Europe, where the European Union is currently enforcing its new data privacy safeguarding law, GDPR, means that Google will certainly face additional investigations from the EU. The article provides instructions for settings that turn off voice recordings and delete conversation history.

Amazon building Sonos-killer 

Amazon continues to expand its line of Echo products. Bloomberg reports that the company will introduce a high fidelity version of the player that will seek to deliver a music experience akin to Sonos or Apple’s HomePod. eMarketer reports that the Echo family owns 63% of this year’s smart speaker market. Bloomberg

dis-rup-shun: Amazon will continue to flood the market with many shapes, sizes and variants of Echo devices as it seeks to establish critical mass as the voice control standard for all types of appliances, cars, players and even light switches. The smart speaker makers are buying market share, selling devices below cost, as sales of the devices are, more importantly, sales of a voice control network standard. The Network Effect states that the value of a network standard such as Echo increases with the number of nodes, making competition nearly impossible once one company grabs a high share of market. Building a high fidelity version of Echo puts Amazon in competition with Echo licensing customer Sonos, but alienation of a customer is a small price to pay when Amazon’s game is massive scale.