Category Archives: cloud computing

Adobe announces next Creative Suite, now called Creative Cloud

Adobe has announced the next version of its all-conquering Creative Suite, now renamed (or subsumed into) Creative Cloud.

Availability is set for June 2013. There will not be any perpetual licenses for the updated applications:

Can I purchase a perpetual license for the new Creative Cloud (CC) desktop applications that were announced in May 2013?

No. The new CC versions of the desktop applications are available only through Creative Cloud offerings for individuals, teams, and enterprise. We do not have any current plans to release future CC tools outside Creative Cloud.

Let’s start with the important stuff. I like the new “totems” which are intricate and abstract; but I think it works. Here is Creative Cloud:

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and here is InDesign, wow:

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Here is Premiere, can you see the lettering?

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So what about the technical stuff? Here is quick tour of what’s new.

Adobe always seems to demo Creative Suite on the Mac these days, but says there is feature-parity between Mac and Windows. GPU acceleration of algorithms (such as in the Mercury engine) no longer uses NVidia Cuda but rather Open CL for best cross-platform compatibility.

Typekit Fonts can now be installed on your desktop, and once installed work like any other font – you can use them in Microsoft Office, for example.

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We quizzed Adobe about what happens to the fonts if you stop subscribing to Creative Cloud. The answer seems to be that you must no longer use them, but whether this is technically enforced is unclear.

Settings synchronisation is a theme across a number of apps including Dreamweaver and After Effects. This touches on a curious aspect of Creative Cloud: despite the name, the applications are desktop applications. Sync settings means you can log in on any machine with the suite installed and get your settings back, including for example web sites in Dreamweaver. The consequence is to bring the make your desktop experience more cloud-like in respect of working from anywhere.

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Photoshop gets an amazing camera shake reduction feature. Camera shake is a big problem for me, as I rarely have a tripod. The new feature detects how the camera moved during the shot and compensates accordingly. The demo worked great on Adobe’s sample shot, but then it would, so it is not until we get to try this with some of our own images that we will know whether Adobe’s claim of “making unusable images usable” is justified. Still, Adobe has a good track record and I am optimistic.

Other interesting features are a filter for Camera Raw, and a “straighten” effect for perspective distorting in images such as those of tall buildings which look as if they are leaning (though I am sure I have seen ways of handling this in earlier versions too). There is also an rounded rectangle editor, a new artefact removal feature, and the ability to upsample an image so that your low-resolution bitmap magically becomes more suitable for print.

There will no longer be an Extended Photoshop. If you have it, you have it all.

The Kuler colour theme chooser has been rebuilt in HTML.

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Illustrator gets a CSS properties panel.

Flash has a Publish feature which converts Flash to HTML (We can see where Adobe is going with this). This uses the CreateJS framework; it does not convert ActionScript.

Premiere Pro now includes the engine from Audition for advanced audio editing within the application.

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Edge Animate is able to animate a sprite across a Motion Path curve for some cool effects.

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Fireworks is still in the suite, but is not being updated. Bad news for Fireworks lovers.

Dreamweaver has a new CSS designer, and a Fluid Grid Layout for designing adaptive web sites:

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After Effects now embeds the Cineware 4D engine, which is big news if you use both AE and Cineware (as many do).

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InDesign is now 64-bit with an updated user interface.

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InDesign also has a “favourite fonts” feature making it easier to manage a multiplicity of fonts on your system.

What have I missed? A lot, no doubt; but I am impressed with how well Adobe has managed its transition from mainly perpetual licences to mainly subscription, how it is rapidly adding features to Creative Cloud, and how it has also managed the transition from Flash to HTML.

Billion dollar revenue or not, Microsoft Azure is growing fast

Is Microsoft Azure now a billion dollar business? Maybe, maybe not. The milestone was announced by Curt Anderson, CFO for Server and Tools at Microsoft, in this Bloomberg piece:

Microsoft Corp. (MSFT)’s Windows Azure software and related programs have surpassed $1 billion in annual sales for the first time … Microsoft’s $1 billion sales figure includes Azure, as well as software provided to partners to create related Windows cloud services, Anderson said in an interview.

The remarks have prompted discussion of what exactly makes up this billion dollars of sales. In particular, what is this software sold to partners for “related Windows cloud services” and how much is it worth?

Timothy Prickett Morgan on the Register takes the most sceptical line:

It seems likely, however, that the bulk of that revenue figure comes from peddling Windows Server, Systems Center, SQL Server, and any other wares that service providers, telcos, and hosters have bought to build Windows-based clouds.

It’s hard to imagine it being even a 20-80 split for Azure proper versus Azure-alike, and the ratio is probably something on the order of 10-90 if you put a gun to our head and made us guess. And maybe more like 5-95.

He overstates the case though. Context: Server and Tools earned revenue of over $18bn in the Microsoft’s last financial year ending June 30 2012 and is set to exceed that in 2013. As Mary-Jo Foley reports here, System Center (which forms the basis for Microsoft’s “private cloud” offering) was already over $1bn last year, so it seems unlikely that Anderson would now lump System Center revenue in with Azure and call it Azure revenue.

At the same time, the qualification in Anderson’s statement does imply that Azure on its own, without this “software provided to partners” does not quite make it.

It matters little. It is clear to me that Azure is a rapidly growing business for Microsoft, and that the energy put in by Scott Guthrie and his team is paying off. Check his blog for a stream of strong announcements.

Server and Tools boss Brad Anderson told me that Azure is a “massive public cloud that doubles every six months.”

It makes sense too. If your business runs on Microsoft’s platform and you want to scale into the cloud, Azure is a strong contender now that its usability and features are maturing. Azure Virtual Machines, providing infrastructure as a service, are of key importance; note that while they have been available for a while they only came out of preview officially on April 16th, a couple of weeks ago. Azure Active Directory and the possibility of federation with on-premise AD is another critical feature, and so is virtual networking, which became generally available at the same time as the Virtual Machines.

On the other hand, Prickett Morgan’s response and other exclamations of surprise around the web (Say What? says Gigaom) show the extent to which Microsoft botched the Azure launch back in 2008 and 2009, and how far it has to go before it is perceived as a strong cloud platform contender beyond the circles of Microsoft partners.

Amazon Web Services on the other hand won its cloud reputation years ago and shows no sign of letting go of its lead, with energetic development of its platform that at least matches Microsoft’s efforts as well as commodity pricing.

Still, with both Office 365 and Azure now booming, it seems to me that the time when you could laugh off Microsoft’s cloud efforts has passed. Expect an unqualified $1bn revenue for Azure before too long.

Xamarin acquires LessPainful, announces Test Cloud for mobile apps

Xamarin, a company which provides tools for cross-platform development in C#, has announced its acquisition of LessPainful and the creation of cloud-based testing for mobile apps based on LessPainful’s technology and the Calabash scripting language it created.

The Test Cloud will perform automated user-interface tests on real devices, hosted by Xamarin, will provide detailed reports in the event of test failures, and will support Continuous Integration so that bugs are caught as early as possible.

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“After you’ve conquered the cross-platform mobile development problem, testing is the next large pain point” says Xamarin CEO Nat Friedman. “You can’t just get by with manual testing. There’s a need for the same level of tools and processes in mobile testing that you have in desktop and web testing.”

“Quality is actually more important on mobile than in other places. Mobile sessions are very short. People are really intolerant of low quality on mobile. The release cycles are shorter too. People are revving more frequently, and testing is a bigger challenge.”

Another issue with mobile testing is the number of devices out there, especially if you throw cross-platform into the mix. “You have on Android all these manufacturers who customise the OS in different ways, you have multiple different versions that are in use, and you have multiple different form factors and device capabilities. The testing permutation matrix is huge.”

“Automated UI testing is the only kind of testing that can ensure that the app does what it is supposed to do.”

Friedman says that the Xamarin UI tests are more robust than competing UI test frameworks because they do not depend on UI image recognition. “The right answer is object-based, you identify user interface elements on the screen by object IDs”.”

How does testing on real devices work? If you have 50 developers testing on 27 devices in Xamarin’s cloud, will there be racks and racks of devices to support them?  “That’s what it looks like at our end, racks and racks of devices,” confirmed Friedman. “The service is going to be built based on device/hour usage. We’ll be able to scale up to match what people need.

“We talk to developers who spend $8,000 a month just to get new devices. That’s not counting the labour and everything else they need to do, to set up their own testing infrastructure. It’s a giant pain point.”

Xamarin’s Test Cloud will offer plug-ins for Jenkins, TeamCity, and Microsoft’s Team Foundation Server, to support Continuous Integration.

The scripting language for the Test Cloud is either Calabash , or C# scripting which is under development by Xamarin.

The Test Cloud is not just for applications developed using Xamarin’s C# framework, but also supports other frameworks including those written in native iOS Objective C. However, only iOS and Android are supported.

Availability is set for the third quarter of 2013.

Xamarin’s Evolve conference is currently under way in Austin, Texas, with around 600 developers in attendance. Friedman says the company is growing fast. 1000 developers a day download the tools, there are over 15,000 paid developers, and the company now has 65 employees.

More information on the Xamarin Test Cloud is here.

The PC puzzle: does the sales drop implicate or justify Windows 8?

Gartner has joined IDC in releasing figures showing a steep drop in PC sales for the first quarter of 2013.

Worldwide PC shipments totalled 79.2 million units in the first quarter of 2013, an 11.2 per cent decline from the first quarter of 2012, according to preliminary results by Gartner, Inc. Global PC shipments went below 80 million units for the first time since the second quarter of 2009. All regions showed a decrease in shipments, with the EMEA region experiencing the steepest decline.

says the release. In EMEA the decline was 16%. In the US, the decline was only 9.6%, but marked the 6 consecutive quarter of decline.

Gartner does not give worldwide figures for Apple, but says that its shipments grew by 7.4% in the US, which is a particularly strong market for Apple, giving it an 11.6% market share.

One bright spot for Microsoft:

Unlike the consumer PC segment, the professional PC market, which accounts for about half of overall PC shipments, has seen growth, driven by continuing PC refreshes.

That will please the folk at the event I am attending right now, the Microsoft Management Summit in Las Vegas, which is about managing servers, PCs and other devices in the enterprise. The consumerisation of IT is real, and so is Bring Your Own Device, but never underestimate the extent to which Windows is embedded in business.

Still, does the overall decline prove that Windows 8 was a huge mistake, and that Windows/Microsoft is now set for long-term decline?

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Not necessarily. There is another way to look at these figures, which is that Microsoft was correct to conclude, back when Windows 8 was planned, that tablets and touch devices would erode the traditional PC market, and that it had to take the risk of reshaping its desktop operating system accordingly.

It is plausible, even likely, that PC sales would not have declined so fast if Windows 8 had been less radical. On the other hand, the long term cost of not reshaping the Windows UI for touch, nor introducing the app store model of software deployment, would probably be greater.

Put another way, the Windows 8 experiment means that PC sales may eventually stop declining, whereas without it they would continue to trend download, even though the curve for this last quarter might be less shocking.

Even if you accept this reasoning, you can still argue that the Windows 8 tablet personality is so poorly executed that it cannot compete with iOS and Android devices. Most Windows 8 users live on the desktop, even those with touch screens and tablets. I am seeing a lot of Surface Pro here in Vegas, with users loving its portability, performance, and elegant keyboard cover, but I see it being used like a laptop, not like a tablet.

Microsoft undoubtedly made mistakes in the initial release of Windows 8, the biggest problem being that the Windows Runtime side, which supports the tablet personality, was rushed out and is really not finished. Creating excellent and good-looking apps is harder than it should be, which is one reason why there are so few.

  • The Windows 8 experience for new users, especially those with long familiarity with earlier versions, is so poor that many prefer to stick with Windows 7. A few tweaks and compromises would have made this easier.
  • Windows RT, the ARM based edition which runs only “Modern” apps and Office, is spoilt by poor performance as well as the lack of good apps. The absence of Outlook from Office in Windows RT spoils its for the business market, where it is potentially attractive as a cost-effective, secure tablet operating system.
  • Microsoft’s OEM and retail partners do not seem to know how to sell Windows 8.

When I put these points to some Microsoft folk informally here at MMS the answer I got was “Blue will make you happy.” Blue, according to these guys, is not the code name for a new version of Windows. Rather, it is a process of incremental updates which users will get automatically. It is well-known of course that significant Windows 8 updates are on the way, and builds have been leaked.

Windows 8 has made a bad start, but it is not all bad. The desktop side (which is what most of us use most of the time) improves on Windows 7, and it is plausible that a combination of user learning along with updates that make the transition to the new Start screen less jarring will make adoption easier.

Equally, the Windows Runtime side will get better. I expect to see new and improved components for developers building apps, and better reliability and performance. Outlook is rumoured to be coming to Windows RT, and at some point we may also see versions of Office applications appear in the Modern UI.

Windows RT will have a tough fight with Intel-based tablets, but users will win either way, since next-generation ARM chipsets are much faster and Intel is making great strides with low-power, high-performance chipsets of its own.

Incidentally, Windows RT is not quite dead. I heard a questioner here at MMS ask questions about how to deploy their forthcoming purchase of a “large quantity” of RT devices.

Microsoft is at times a stumbling giant, but it is stumbling in the right direction with Windows 8, and it may yet work out. Even if by then it is called Windows 9.

Twilio integrates with Google App Engine for cloud telephony applications

Cloud telephony company Twilio has announced a partnership with Google to integrate its API with App Engine, Google’s platform for cloud applications. Google has a clear explanation of what this enables here. You can have your application respond to incoming SMS texts or voice calls, and send an SMS back, or for voice, play messages, record the call, or ask for further digits to be pressed to route the call appropriately. You can also use the API to initiate calls or send texts.

If you look here there are how-to examples (generic to Twilio, not specific to App Engine) for some of the things you do with Twilio:

  • Automated reminder calls
  • Click to call on your web site
  • Company directory
  • IVR (Interactive Voice Response) for automated support
  • Conferencing
  • Phone polls
  • Voice mail
  • Voice transcription

and more of course. Help desk applications and other kinds of support are the most obvious applications, but there are no limits: if you want to build voice calls or SMS messaging into your app, Twilio is the obvious solution.

The relationship with Google is not exclusive. Twilio already has integration with Windows Azure, Microsoft’s cloud platform. Google has one-upped Microsoft though. The Azure promotion gets you free credit for 1000 texts or minutes for Azure, while there are free 2000 texts or minutes for Google App Engine customers.

You can also use Twilio on any platform that can use a REST API. There is a module for Node.js, and libraries for PHP, Python, Ruby, C#, Java and Apex (used by Salesforce.com).

Microsoft’s growth areas: Azure, Server with Hyper-V, Office 365, Windows Phone

Microsoft has left slip a few figures in posts from PR VP Frank Shaw and platform evangelist Steve Guggenheimer.

Observers have tended to focus on Windows “Blue” and what is happening with Microsoft’s core client operating system, but what caught my eye was a few figures on progress in other areas.

  • Windows Azure compute usage doubled in six months
  • Windows Azure revenue growing 3X
  • Office 365 paid seats tripled year on year last quarter
  • Server 2012 Datacenter edition licenses grown 80%

A notable feature of these figures is that they are relative, not absolute. Office 365 is a relatively new product, and Windows Azure (from what I can tell, since Microsoft did not release numbers) performed rather badly until its renaissance in early 2011 under Satya Nadella, Scott Guthrie and others – see here for more about this). It is easy to post big multiples if you are starting from a small base.

This is real progress though and my guess is that growth will continue to be strong. I base this not on Microsoft’s PR statements, but on my opinion of Office 365 and Windows Azure, both of which make a lot of sense for Microsoft-platforms organisations migrating to the cloud.

Why the growth in Server 2012 Datacenter? This one is easy. Datacenter comes with unlimited licenses for Windows Server running in Hyper-V virtual machines on that server, so it is the best value if you want to the freedom to run a lot of VMs, especially if some of those VMs are lightly used and you can afford to overcommit the processors (you need a new license for every two physical processors you install).

Here’s another figure that Shaw puts out:

Windows Phone has reached 10 percent market share in a number of countries, and according to IDC’s latest report, has shipped more than Blackberry in 26 markets and more than iPhone in seven.

Spin, of course. This February report from IDC gives Windows Phone just a 2.6% market share in the 4th quarter of 2012. Still, it did grow by 150% year on year, thanks no doubt to Nokia’s entry into the market.

My personal view is that Windows Phone will also continue to grow. I base this on several things:

  • I see more Windows Phones on the high street and in people’s hands, than was the case a year ago.
  • Windows Phone 8 is decent and the user interface is more logical and coherent than Android, which mitigates a lack of apps.
  • Nokia is bringing down the price for Windows Phone devices so they compare well with Android in the mid-market below Apple and the premium Android devices.
  • There is some momentum in Windows Phone apps, more so than for Windows 8. Guggenheimer notes that downloads from the Phone Store now exceed 1 billion.

The context of the above is not so good for Microsoft. It is coming from behind in both cloud and mobile and the interesting question would what kind of market share it is likely to have in a few years time: bigger than today, perhaps, but still small relative to Amazon in cloud and Apple and Android in mobile.

There is also the Windows 8 problem. Many prefer Windows 7, and those who use Windows 8, use it like Windows 7, mostly ignoring the tablet features and new Windows Runtime personality.

How will Microsoft fix that? Along with leaked builds of Windows Blue, Microsoft has announced the next Build conference, which will be in San Francisco June 26-28, 2013 (I am glad this will not be on the Microsoft campus again, since this venue has not worked well). There is a lot to do.

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Virtual meetings: as good as the real thing?

Last night I participated in an unusual event: a virtual wine-tasting laid on by Citrix for a few journalists, to demonstrate the capabilities of its GoToMeeting online conferencing software.

Sommelier Akos Hervai at Clusters to Wine talked us through the serious business of how to taste wine and we discussed the merits of four selected bottles – taking the driest first, which I now know is the proper thing to do.

Most meetings are less palatable; but if you can successfully conduct a wine tasting online, does the same apply to most business meetings?

Here are a few observations. First, we were strongly encouraged to use webcams for this event; and yes, it does make a difference. Suddenly, like a real meeting, everyone can tell if you have fallen asleep, left the room, or started talking to someone outside the meeting on your mobile. Of course you also have to think about your surroundings, how you are dressed, and the impression you are making. It substantially changes the dynamics and increases engagement.

I am not sure how many businesses have a policy of webcam use for online meetings, but I could understand such a policy, even though it is hard to enforce; GoToMeeting, like most such software, makes it easy to switch off your webcam or mute your microphone. There is also a limitation of six video feeds (640×480) on-screen, so this will not work for larger meetings.

Despite the general value of the webcams, we found them of little use for visual demonstration. Someone tried to show the label on an interesting bottle of wine they had; none of us could see it beyond a blurry blob.

Second, the flow of conversation is harder than in a real meeting. Bear in mind that there is no real eye contact, no ability to clear your throat or make one of those subtle indications that you would like to get a word in please. Of course the software has a “Raise hand” feature but it is so crude, a binary flag whereas in person we have a million tiny signals.

In practice the online text chat is often a better way to make a comment – if participants remember to keep an eye on it.

Third, in my long experience of online meetings, there are always things that go slightly wrong. Extraneous noise is always a problem. Sitting in a real meeting you would think twice before making banging or crashing noises or slamming a door; yet get a group together online with unmuted microphones and you always hear all sorts of sounds. Depending on where the microphone is situated, typing noises or loud breathing can also be a problem. Personally I favour muting all microphones other than when you need to speak, and in a meeting beyond a certain size – about six? – that becomes essential.

We also had a participant who could not get his webcam working. Then, towards the end, I started to speak and GoToMeeting just quit unexpectedly. Bang. Re-launched and all was fine.

Still, let’s not forget the advantages. Simply, many meetings are possible online which otherwise could not take place, other than perhaps as old-fashioned conference voice calls; and the benefit of screen sharing, online text chat and so on is significant.

Can the software get better? I think so. As hardware and bandwidth improves, there is scope for better video and more intelligent software; for example, GoToMeeting knows who is speaking (it shows this in the control panel); could it not expand the webcam image of the speaker and increase its resolution (hardware allowing) automatically? In general, the goal should be to reduce the friction in online meetings and make it harder for things to go wrong.

That said, no, it will never be a complete substitute for face to face meeting. Human communication is too sophisticated for that.

Microsoft financials: record revenue, signs of Windows 8 concern

Yesterday Microsoft released its financial figures for the last three months of 2012.

Quarter ending December 31st 2012 vs quarter ending December 31st 2011, $millions

Segment Revenue Change Profit Change
Client (Windows + Live) 5881 +1140 3296 +416
Server and Tools 5186 +171 2121 +409
Online 869 +85 -283 +176
Business (Office) 5691 -619 3565 -623
Entertainment and devices 3772 -466 596 +79

Although Microsoft reported record revenue, I do not consider these figures all that revealing. The transcript of the earnings call is more to the point. A few notable remarks from CFO Peter Klein and General Manager Investor Relations Chris Suh

  • 60 million Windows 8 licenses sold and 100 million apps downloaded. At 1.66 apps per license that shows lack of interest in the new Windows Store and raises suspicions that some of those sales may actually be downgraded to Windows 7. The remarks from Klein confirm that the new platform is off to a slow start:

It’s early days and an ambitious endeavor like this takes time. Together with our partners, we remain focused on fully delivering the promise of Windows 8.

While the number of apps in the Windows Store has quadrupled since launch, we clearly have more work to do. We need more rich, immersive apps that give users’ access to content that informs, entertains and inspires.

  • Suh states that Windows is selling better to businesses than consumers. Declining interest from consumers is obvious if you walk around a few retailers selling Windows PCs:

Within the x86 PC market, we saw similar trends to prior quarters, with emerging markets outperforming developed markets, and business outperforming consumer. The consumer segment was most impacted by the ecosystem transition, as demand exceeded the limited assortment of touch devices available.

  • System Center 18% revenue growth
  • SQL Server revenue 16% growth
  • Online revenue (this is Bing not Azure) up 11%
  • Windows Phone sales 4 times higher than last year
  • Skype calls up 59%

The company says little about Office 365 and Azure, but my perception is that both are growing fast though how significant they are versus traditional software license sales is less clear.

Trouble ahead? With Windows 8 struggling for acceptance, Office under threat from online and device alternatives, the games console business (overall not just Microsoft) probably in permanent decline, and Windows Phone not yet quite mainstream, you would think so. On the other hand, this is a company with a broad and deep product range and looking at the solid performance of the server products and continuing strength of Windows and Office in business, we may continue to be surprised at its resilience.

Amazon AutoRip: great service, or devaluing music?

Or possibly both. Amazon’s AutoRip service means that when you buy one of a limited, but considerable, range of CDs, you get an MP3 version in your Amazon cloud player for free. Even past purchases are automatically added, which means US customers have received emails informing them that hundreds or in some cases thousands of tracks have been added to their Amazon cloud player.

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The service adds value to CD purchases in several ways. You get instant delivery, so you can start listening to your music straight away, and when the CD comes in the post, you can enjoy the artwork and play it on your hi-fi for best quality.

Amazon is differentiating from Apple, which only sells a download.

An infernal creature lies in the details though. Here are a few comments from Steve Hoffman’s music forum:

Got Auto-rip Pink Floyd’s DSOTM 2011 mastering of the DSOTM SACD that I bought in 2003.

and

I now have autorips of cd’s I no loner own…..interesting concept.

and

I now have autorips of CDs I bought as gifts.

These customers have done nothing wrong. They bought a CD from Amazon and gave it away or sold it, but it is still in their Amazon history, so now they have the MP3s.

Another interesting point is that Amazon appears to treat all versions of the same recording as equal. This is why I have included the comment about the Pink Floyd album above. Record companies have done well over the years by persuading fans to buy the same CD again in a remastered version, sometimes with bonus tracks. The Beatles 2009 remastered CDs are a well-known example. But if customers with unremastered CDs are now getting remastered MP3s automatically, this type of sale is harder to make.

The gift issue is more serious. The terms and conditions say:

Albums purchased in orders including one or more items marked as “gifts” at purchase are not eligible for AutoRip.

and intriguingly:

If you cancel your order or return this album, our normal order cancellation and product return policies will apply regarding the physical version of this album. However, if you download any of the tracks on the MP3 version of the album from your Cloud Player library (including if you have enabled auto-download to a device and any of the tracks on the MP3 version of the album auto-download), you will be considered to have purchased the MP3 version of the album from the Amazon MP3 Store and we will charge your credit card (or other payment method) for the then-current price of the MP3 version of the album (which will be non-refundable and may be a higher price than the physical version of the album).

Someone therefore has thought about the problem, though I predict unhappy customers, if they buy a faulty CD, return it, and find they have been charged anyway thanks to an auto-download feature of which they might not understand the implications.

Note also that many CDs are purchased as gifts without being marked as gifts in Amazon’s system. The idea of marking items as gifts is that you can have gift wrapping and get an item sent to another address, but if you plan to do your own wrapping, it is not necessary.

Here is something else. Audio enthusiasts are not happy with MP3s, preferring the real and/or psychological benefits of the lossless CD format for sound quality. For many people though, the audio is indistinguishable or they do not care about the difference.

What do you do if you receive a CD in the post, having already downloaded and enjoyed the MP3 versions of the tracks? I imagine some customers will figure that they have no use for the CD and sell it.  Provided they do not return the CD to Amazon, I cannot see anything in Amazon’s terms and conditions that forbids this, though I can see ethical and possibly legal difficulties in some territories.

The consequence is that someone may lose a sale.

Subscription is the future

My view on this is simple. The only sane way to sell music today is via subscription – the Spotify or Xbox Music model. The idea of “owning” music (which was never really ownership, but rather a licence tied to physical media) is obsolete with today’s technology.

Amazon’s new initiative demonstrates how little value there is in a downloaded MP3 file – so vanishingly small, that it can give them away to past customers for nothing.

Android up, Apple down, Microsoft so near, so far: 2012 in review

What happened in 2012?

Windows 8

Whether you regard it as the beginning of the end for Windows, or a moment of rebirth, for me it was the year of Windows 8. Microsoft’s new Windows is fascinating on several levels: as a bold strategic move to make a desktop operating system into a tablet operating system, or as an experiment in how much change you can make in an established product without alienating too many of your customers, or as the first mainstream attempt to create an “immersive” user interface where users engage solely with the content and have to make an effort to summon menus and tools.

The context is also gripping. Microsoft’s desktop monopoly is under attack from all sides. Apple iPad and Google Android tablets, cloud apps that make the desktop operating system irrelevant, Mac OSX computers and laptops that have captured the hearts of designers and power users. Windows still dominates in business computing, but the signs of encroachment are there as well, with reports of iPad deployments and a shift in focus away from desktop apps.

Windows 8 is intended as the fix, making Windows into a first-class tablet operating system and establishing a new app ecosystem based on the Windows Runtime and the Windows Store.

How is it going so far? Not too well. App developers have not flocked to the platform. Users who were happy with Windows 7 have been bewildered. Most seriously, the Windows ecosystem of OEM vendors and general retailers has failed to adjust to the concept of Windows as a tablet operating system, treating it more as a somewhat awkward upgrade to Windows 7.

The work of Windows President Steven Sinofksy in overseeing the engineering and design of Windows 8 and delivering it on schedule has been amazing. He kept his team focused and shipped a release of Windows that is faster and with nice improvements on the desktop side, as well as offering a tablet personality designed for touch-first, in which apps are securely sandboxed and easily installed from an online store.

At the same time, it is easy to see ways in which Microsoft bungled Windows 8.

  • Why was Microsoft so unrelenting with its “immersive” UI that it would not tolerate an option to show things like time and battery status on screen all the time, or three dots for “more” so that users will more easily discover the app bar, as suggested by Paul Thurrott?
  • Why did Microsoft spend mind-stretching amounts on advertising for Windows 8 and for Surface RT tablets, but not allocate enough budget to create a decent Windows 8 Mail app, for example? The current effort is a constant annoyance, especially on the Surface where there is no alternative.
  • Why did Microsoft expend so much effort pumping up the number of apps in its Store, but so little effort nurturing quality? Very few outstanding apps were available at launch, and even now they are hard to find.

I say this as as someone who likes Windows 8 overall. The strategy makes sense to me, but the execution in some critical areas has been disappointing. So near but so far.

 

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The sudden departure of Sinofsky immediately after the Windows 8 launch was unfortunate; a significant loss of a person with both vision and the ability to implement it.

That said, despite all the difficulties Microsoft has now launched this radically different version of Windows; it is over the first hump and provided that the company keeps its nerve, it can focus on refining the platform and creating compelling new apps that will persuade users to explore it. Further, users who have the patience to learn a few new ways to navigate Windows will discover that it is a decent upgrade, with strong features like Hyper-V, improved file operations, Windows to Go and more.

It is tablets that matter though. Tablet usage will continue to grow, and if Microsoft cannot establish Windows as a tablet platform, its further decline is inevitable.

Does CEO Steve Ballmer have a grip on this huge, dysfunctional, brilliant, frustrating company? Maybe 2013 will answer that question definitively.

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Surface RT

2012 also saw the launch of Microsoft’s first own-brand tablet. It is high quality, exceptionally strong, with long battery life thanks to its ARM processor and supported by keyboard covers that let you flip it between touch and keyboard/trackpad without making the device too bulky or complex.

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Three things, no make that four things, have prevented Surface RT from taking off as Microsoft hoped:

1. Performance is barely adequate. It is usable, but Office is sluggish with large documents and apps are noticeably less responsive than on x86 Windows 8. That said, the NVIDIA Tegra 3 chipset is capable of fast graphics, and some games run surprisingly well, so it is not all bad.

2. The lack of strong apps affects Windows RT devices like Surface more than x86 Windows 8, since you cannot install desktop apps. Yes, it is a new platform, but Microsoft could have done better.

3. There is too much desktop in Windows RT and therefore in Surface RT, making the device more complex than it should be.

4. Microsoft has not yet established Windows 8 as a tablet platform in public perception, nor yet provided the apps that make it work fully as a tablet platform. One consequence is that when someone goes out to buy a tablet, they do not think of Surface RT as a candidate; it is iPad or Android. Another consequence is that reviewers tend to evaluate Surface RT as Windows rather than as a tablet. Considered as Windows, it is weak compared to x86 builds.

Despite all the above, I often slip Surface RT into my bag when travelling. The combination of small size, keyboard cover, long battery life, and Word and Excel is a winner for me. Surface RT 2, with faster performance and a more mature app platform could be great, if the product makes it to a second edition.

Apple: a bad year

2012 was a bad year for Apple. On one level everything is fine, with iPads and iPhones selling like fury, and the successful launch of iPad Mini. What changed though is that the concern of the late Steve Jobs, that Android is close enough to iOS to capture a lot of its market, became a reality. Android is the bestselling smartphone platform and Android tablets, led by Google Nexus and Samsung Galaxy, will likely overtake iPad for the same reasons: better value, more vendors, faster innovation. There was plenty of litigation in 2012 as Apple sought to protect its inventions, but despite some legal successes, Android has continued to grow and it looks unlikely that court action will do much to impede it. Another problem for Apple is that price pressure makes it difficult to sustain the high hardware margins which have made the company so profitable.

The other Microsoft

The Windows 8 drama caught our attention, but Microsoft has been busy elsewhere, generally with better success. The most significant development was the transformation of the cloud platform, Windows Azure from an also-ran to a compelling contender (though still small relative to Amazon), thanks to the addition of IaaS (infrastructure as a service), or plain old Windows VMs, along with a new management portal that makes the service easier to use.

Microsoft also released Server 2012, a substantial upgrade to Windows Server particularly in Hyper-V, but also in storage, remote access, server management, and general modularisation.

Windows Phone had a mixed year, with a sage in sales when Microsoft announced that Windows Phone 7 devices will not be upgradeable to Windows Phone 8, but ending more positively with relatively strong (in the context of a market dominated by iOS and Android) sales for new Windows Phone 8 devices.

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It was a good year for Office 365, on-demand Exchange and SharePoint, which is now an obvious choice for small businesses migrating from Small Business Server and a plausible choice for medium and larger businesses too.

2012 also saw the launch of Office 2013. I am not so sure about this one. It is meant to be the version of Office that is touch-friendly and cloud-centric. It is not too bad, but with its washed-out appearance and various annoyances it hardly seems a compelling upgrade. Office needs a “Windows 7” release, one where Microsoft focuses on what Office users find slow and/or irritating and sets out to fix the issues.

Adobe’s cloud and HTML transformation

Microsoft took too much of my attention in 2012, something I hope will change in 2013, but one company which caught my attention was Adobe. Without great fanfare, it has successfully switched the business model for the Creative Suite (PhotoShop, Premiere, Dreamweaver and so on) which forms the largest part of its business to a subscription-based model with cloud delivery and additional cloud services. It has also moved its technical platform away from Flash and towards HTML with less pain that I had expected, and is coming up with interesting new tools in its Edge range. Most impressive.

RIM and Blackberry: all to prove in 2013

2012 was painful for RIM, which saw interest in its Blackberry platform decline to the point where many now consider it of little relevance in mobile, but mitigated by intense effort to engage its developer community in preparation for the launch of Blackberry 10 devices at the end of January 2013. It may be too late; but the new OS does have attractions, especially in business where there is innovation in the way it separates business and personal use of a single device. Is Windows Phone or Blackberry 10 the third mobile platform after iOS and Android, or will these two stragglers simply weaken each other while Apple and Google dominate?

Amazon web services: fast pace of innovation

Amazon dominates the IaaS market and with good reason: relatively low prices, high quality of service, and fast pace of innovation. It was this last that most impressed me when I attended an update last November. Amazon prefers to talk to developers and businesses rather than the press, and its services are perhaps under-reported relative to its competitors. An impressive operation, with an inspiring CEO.

Google the winner in 2012

It may not have vanquished Facebook, but of all the tech giants Google has had the best year, with sustained success in search and advertising, huge Android sales and the establishment of the operating system on tablets as well as smartphones, thanks to Samsung and Google’s own efforts with the Nexus range. Google also won some kudos versus Apple following the iOS 5 maps debacle, with Apple’s own mapping efforts found wanting.

Not everything has worked for Google, yet. The web-centric Chromebooks are out there, but whether there is much appetite for netbooks that run everything in the browser is an open question; there are security advantages to this computing model, but users would rather have Android with its rich app ecosystem and greater freedom.

How will Google monetize Android, in the face of further fragmentation and a competitor like Amazon helping itself to what is free but building its own commercial platform on top? Another open question, though my guess is that Google will find a way.

Google rationalised its services in 2012 and pushed hard on its social platform, Google+, but failed to make much dent on Facebook’s popularity.

At the end of 2012 we were reminded of the downside of reliance on cloud providers when Google pulled Exchange ActiveSync support from its free email service. Existing users are not affected, but new users will find it harder to set up Gmail accounts on devices such as Windows Phones. Free users can hardly complain, but if they have become reliant on a gmail address there is an element of lock-in which Google is now using to discourage users from using a competitor’s mobile device.

2013?

A few predictions. More Microsoft fireworks as the PC and laptop market continues to decline; Apple vs Android wars; a strong play from Google for the Office/Exchange/SharePoint market. What else? If the past is anything to go by, expect some surprises.