To those people that have followed my writing these last two months, I’ve been exposed to virtualisation more than I would like, due to an incompatibility between my Macbook, a Java Virtualbox I’m running on it, and the Windows 2003 server managing our company network. As a result, I’ve been booting a lot into Windows via Boot Camp, got hooked on Windows Live Writer, and have been using Parallels frequently just for that app (I need a Crossover fix for .NET apps badly).

The second consequence is that I’ve been thinking a lot about the implications of virtual OSs. With Google OS recently having been announced, which is supposed to integrate flawlessly with Macs and Windows, assumably Android, as well as being designed for Netbooks, I wonder if Intel, with it’s multi-core processors, has not created a situation where nothing else matters, hardware-wise, except to have a powerful enough processor? In other words, have hardware-manufacturers like Sony, Samsung, and to some extent, Apple simply become irrelevant?

Take Sony for instance, which has just announced its first “Netbook.” It’s one selling point?

“Like other netbooks the Vaio W has a 10-inch screen, but its display has a resolution of 1,366 by 768 pixels rather than the more common 1,024 by 600 pixels. That means more of a Web site can be fitted onto the screen, and the user will have to scroll less, the company said at a launch event in Tokyo on Tuesday.” (emphasis my own)

Not much to write home about, except if you absolutely need to use a Sony, and bear in mind that that company was at some point a premium manufacturer of technology. The PC market has long been commoditised of course, ever since IBM opened its hardware up to the world, but with the rise of ultra-cheap PCs & laptops, I think they are digging their own grave.

I think that, as I wrote in a comment to a recent post, Netbooks are a failed experiment and, to add to that, unless either drastic changes in the cost-structure can be made to increase profit-margins, or new business models can be found (e.g. a similar hardware-service bundling to what has been happening in the mobile phone space), I think that we won’t be hearing from netbooks after 2010 onwards.

What also seems clear is that software companies, with their much more favourable profit margins, are winning this war, and, pretty soon, they won’t have to think about hardware at all any more. Instead of writing for a “spec,” you just need to write for a virtual space, which can run anywhere or everywhere.

Arguably, hardware has always been enslaved to software (except for one company), but I see the Sony’s & Samsung’s of today becoming the Nokia’s & Motorola’s of the future.

Since I’m not a technologist (more of a technology philosopher), I may be drastically oversimplifying. What do you think?
P.S. going to stop signing my name for a while. I’ll see if that makes a difference. V.

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Couple of days ago there was some “inside rumors” about Nokia working on an Android phone. This rumor was pretty quickly denied by the Finnish giant.

Full QWERTY and dual screens. Eat that iPhone. Also works as a fishing net weight.

It was a good rumor because it sounded plausible until one starts to seriously think about it. Yes, Nokia is one of the few handset manufacturers who doesn’t have Android plans so it just a matter of time, right? Not exactly. Sure, some might think Android is a better platform than S60 and yes, in my opinion, the current S60 UI and user experience are a crapfest but at least it’s Nokia’s own crapfest. And that’s the important thing.

The reason why other traditional cell phone manufacturers are pushing out Android phones is that it doesn’t really matter what software runs in their phones as long as it sells. And of course Android sells, because carriers finally get to bill for data usage when mobile users discover the web.

Does SonyEricsson, Samsung, HTC have a smartphone that matters? They all pump out smartphones on different platforms and don’t really focus on building an ecosystem across their phones. Their main customers are phone operators, who’ll eventually brand the phones and fill them with their own software and sell them to their customers. This is ture for Nokia too as far as Nokia the mobile phone manufacturer goes. Nokia, however, isn’t just about manufacturing hardware. Take SonyEricsson as a counterexample. As a part of Sony, SonyEricsson is more about extending Sony’s brands (Walkman, Cybershot) and not solely about mobile phones. Same goes for Samsung. Nokia, on the other hand, is a brand on its own and has interests in all aspects of mobile communication.

SonyEricsson is a good example also because it shows what would happen to Nokia if it’d adopt Android. Those who remember time when it was just called Ericsson, the company actually did have pretty nice technologies and phones. Today, that history is pretty much nonexistent in their phones.

Unlike the other phone manufacturers, but like Apple and Google, Nokia has a wide application ecosystem. Nokia is betting a lot on services, even though Ovi Store and other Ovi services haven’t caused similar nerdgasms like Apple’s Apps Store. In fact, one might say that Ovi services are a source of a lot of nerdrage instead. Nokia would also need to port its Nokia Maps and Mail for Exchange support over to Android, just to mention few. Also, why invest in Qt if you’re going Java?

The only way for Nokia to remain relevant in the marketplace is to own the software its phones and services run on. It’s about vertical integration and it’s about mattering in the smartphone market. This vertical integration is why Google and Apple suddenly matter in smartphone business. Vertical integration is why Apple still matters in the computer business.

This is also why no other mobile phone manufacturer has taken Symbian seriously. It would give Nokia, their #1 competitor, immense strategic power. The reason Windows Mobile has zero traction in mobile phones follows the same logic.

As Trip Hawkins, whose Electronic Arts was first to bypass the game resellers and went straight to retailers, has put it, “it’s all about leverage. If you don’t have it, you lose”. With Google’s recent announcement of Chrome OS for netbooks, there are many unhappy netbook manufacturers who decided to build something on Android. On the other hand, by bypassing the need for a real OS and focusing on the Web, netbook manufacturers can try to cut costs – at the expense of becoming dependent on Google.

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From the Official Google Blog:

Today, we’re announcing a new project that’s a natural extension of Google Chrome — the Google Chrome Operating System. It’s our attempt to re-think what operating systems should be.

Google Chrome OS will run on both x86 as well as ARM chips and we are working with multiple OEMs to bring a number of netbooks to market next year. The software architecture is simple — Google Chrome running within a new windowing system on top of a Linux kernel. For application developers, the web is the platform. All web-based applications will automatically work and new applications can be written using your favorite web technologies. And of course, these apps will run not only on Google Chrome OS, but on any standards-based browser on Windows, Mac and Linux thereby giving developers the largest user base of any platform.

I have nothing to say that I haven’t already said before.

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