Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
One of the great things about the Internet is that it truly is creating all sorts of new economic and business activity that we never imagined just a few years ago. Amazon is one of those "new economy" businesses, and it is a good example of why the U.S. economy keeps humming along, despite a heavy loss of manufacturing jobs.
Amazon did not exist ten years ago, but now employs thousands of people, in an online enterprise, rather than a manufacturing enterprise. As more and more manufacturing plants close, companies like Amazon keep growing and hiring more people. The challenge for a lot of communities is to ensure that young people leave high school with the right motivation and training to join the Knowledge Economy, as well as to help displaced workers enter the Knowledge Economy. Neither is an easy task, but both need to be done.
What does this have to do with "building your own bookstore?" Via Jakob Nielsen's great usability newsletter, he notes that Amazon now has a new feature that lets anyone create their own bookstore, as Nielsen has done. Amazon handles all the technology, you put your name on the bookstore, and you get a small commission for every book sold via your "bookstore."
It is a really neat idea, and as Nielsen notes, it gets rid of the really awful clutter of most Amazon Web pages, filled with a million distractions. And it is another example of how the Knowledge Economy is transforming business. Are the workers in your community ready to take advantage of these opportunities?
Just when you thought it could not get any worse with the Diebold voting machines, new information has come out indicating that the electronic voting machines can be opened with a minibar key, or in fact, almost any kind of cheap key that is often supplied with office desks and other types of furniture.
It has been previously demonstrated that someone with physical access to the machine can, in about a minute or two, alter the vote count of the machine. But that meant being able to open the locked machine quickly. And that is apparently quite easy if you have some of these cheap keys.
The media has numerous stories on the Maryland campaign aide who was fired for blogging on the job. The young woman's remarks, aside from being insensitive and rude, are incredibly naive. Not only was she making inappropriate remarks about her boss' opponent, she was also making inappropriate remarks about her boss' own associates--she was writing negative comments about her own boss.
So we have a perfect illustration of a blog gone too far. Regrettably, we have people today who think they have a right to blog about anything that strikes their fancy, but blogging is not a right, it is an opportunity. So we can formulate a simple rule.
Don't blog the hand that feeds you.
I hope this campaign aide is not surprised that she was fired, but somehow, I doubt it. Businesses need to add a policy on blogging to the company handbook, and it could be just one word, "Don't," as in "Don't blog about the company you work for or the people you work for or with, period. Doing so will be grounds for dismissal."
Microsoft has released details of its long-awaited music player, and it is pretty interesting. It's called Zune, and is obviously trying to beat the iPod by adding stuff that the iPod does not have. Included extras are WiFi networking, a slightly bigger screen, and an FM receiver. It comes in three colors, including brown, and I have to say that from the pictures, brown seems like an awfully unattractive choice.
The iPod has long been criticized for not having an FM tuner, but I do not think this is a particularly big selling feature. Other music players have offered this and it has not helped their sales. The underlying issue is that once you have all your music loaded on a portable music player, FM radio seems tedious and bland by comparison.
The Zune Marketplace (think iTunes Store) will selll music and videos, and the WiFi features allows you to share music and movies on a "sample" basis with nearby friends; it is not clear exactly how the "sample" sharing will work. In any case, it will be interesting to see how Zune does.
Three researchers at Princeton have written a detailed analysis of the many security problems with Diebold voting machines, and have included a video demonstrating how simple it is to tamper with the machine. Meanwhile, voters get the short end of the stick with both the potential for utterly compromised elections and the need to replace hundreds of millions of dollars worth of these machines with new ones, using our tax dollars.
eBay's purchase of Skype, the Internet phone service, appears to be reaping dividends in terms of new features for the phone service. Skype has been making more frequent upgrades to the software and service, and in the process, is redefining the telephone.
We used to think of the telephone as an object. It is now a piece of software and an associated service, completely independent of a particular physical object. You can run Skype on your computer with a headset, but manufacturers are also producing "Skype phones" which have the basic Skype service protocols built in, so you can plug them into your computer but use the phone to dial calls just like an "old fashioned" phone.
The company is taking many different features and services and combining them into a unified interface--something other companies are trying to do but with less success. Skype seems to be taking a page from Apple and focusing intently on designing really good software to make the service easy to use from beginning to end. The company has excellent help tips and instructions, and the newest version of Skype with videoconferencing recognized my camera without making me do anything to set that feature up.
Skype is adding SMS, file sharing, conference calling, video calls, and voicemail, among other features. And Skype can also call to "old" telephone landlines. Some of these things cost money, but Skype is pursuing the now classic Internet model of giving part of the service away for free. With eBay's deep pockets, Skype may well come to dominate the phone space, whether we like it or not. Internet advocates are working on an Open Source equivalent called Gizmo, which has many of the same features, but Gizmo, which relies on volunteers to add new features, may not be able to keep up with a steady stream of new features coming from Skype. But free does not always mean good. I've tried to use Skype's conference call feature, and the quality is mixed, as is just person to person Skype calls, because the service is heavily dependent on the quality of your Internet connection and all the connections between you and the person on the other end. Skype is one reason the phone companies are calling for a two tier Internet with toll booths. The phone and cable companies want to extort, er, I mean, charge Skype fees for carrying their traffic. But that's not a solution, it's just another problem, mostly for users.
What is likely is that the notion of having a single "phone" number or even just one or two phone numbers, is long gone. We'll have to have multiple voice services and accounts to accommodate friends, family, and business associates. As long as we can forward our phone calls from one "number" to another, we should generally benefit from a very rich set of features....if we can figure out how to use them all.
Glenn Harlan Reynolds has an article about problems with Amazon's brand new Unbox video download service, which serves as a contrast to Apple's new video service. The Unbox system only works on Windows (iTunes works on Windows and Macs), just for starters. But the gripes are apparently about a "phone home" feature (sometimes called spyware) of Unbox that seems to constantly want to connect to the Internet so that your computer can talk to Amazon's computers. Harlan writes about the experiences of another Tech Central Station columnist, who flatly recommends against using the service because of the difficulty installing, uninstalling, and the "phone home" spyware.
Most amusing is a quote from the Unbox documentation that a reader posted in the Comments section:
"If your device is Plays for Sure compliant it may work, but we cannot guarantee performance on untested devices"
So "Plays for Sure" apparently means "Plays Maybe."
Apple unveiled its iTunes movie download service yesterday, which is very nicely done from a customer experience perspective. But many people are likely to be frustrated with download speeds. Apple talks about 30 minutes to download a feature length movie, but the company noted that is if you have a 5-6 megabit cable modem connection. About 60% of broadband users have cable modem connections, and many of them are supposed to be three megabits/second or more, but few actually deliver that. The cable companies coyly use the phrase "speeds UP TO 6 megabits," meaning snowballs in heck will likely freeze solid first.
My home is on an Adelphia system now owned by Cox, and I rarely see speeds of much more than 1 megabit/second. Sometimes I see more, but last night, as an example, I was barely getting 500kilobits/second. The problem with cable and wireless systems that promise huge speeds is that you share that bandwidth with other local users, so the theoretical maximum the marketing people love to tout is just that--theoretical--as in, if you are the only person on the Internet in your local area. Which almost never happens unless you work the night shift and tend to be up at 4 AM.
We observed this phenomenon many years ago when I was still running the Blacksburg Electronic Village. In the afternoon and evenings, people go home and get online, and do so much more now than then. So if everyone pushes back from the dinner table about 6:30 PM on Friday night and decides to download a movie instead of going to the video rental store, you won't be getting that movie in anything like 30 minutes. It will more likely be a couple of hours, or even longer. Dedicated download enthusiasts will start downloads the night before and go to bed while pulling the movie down.
This is why cable and phone company promises of 5, 10, or even 30 megabit speeds are grossly inadequate. Apple's highly compressed movie offerings don't even match current DVD quality; they had to do this to make it possible to download them at all over current broadband systems. But as more and more people demand to watch movies in HD format, the current copper-based "broadband" network in the U.S. (i.e. cable modem and DSL) is simply not up to it. A high quality HD video stream requires 18-20 megabits/second for a single movie, and if you two of you in the household want to watch different movies at the same time, you are right up to around 40 megabits/second, just to watch a TV show or movie.
And despite promises of 54 megabit and 108 megabit wireless systems, those are the theoretical maximums, not the real world average throughput. For any wireless system with multiple users (almost all neighborhood systems), a simple rule of thumb is to divide the maximum throughput by 10 to get the likely "good" bandwidth you will see most of the time. So a 54 megabit wireless system might be able to deliver 5 meg/second when usage is moderate. On Friday nights, you might be lucky to get 1 megabit consistently.
Communities need fiber, for business and for entertainment, and to make the system pay, you need both kinds of content. As Design Nine helps more and more communities design true Open Service Provider Networks (OSPNs), our financial models consistently show that you can't just build out to business or just to residential neighborhoods and make the network pay for itself. You need to bring both market segments into an integrated business plan.
Apple announced a slew of new and upgraded products yesterday that disappointed some Apple fans who had hoped for an iPod phone. Pundits have begun yet another "Apple is becoming obsolete" mantra, but beating up on Apple is nothing new, and for nearly thirty years, the pundits have almost always been wrong about Apple. With cellphones challenging the iPod as a music player and Microsoft's new music player about to be released, it is easy to see why you might think Apple's best music days are behind it.
But yesterday will likely prove the pundits wrong again. While no new "gotta have it" devices were announced yesterday, the fullness of Apple's multimedia strategy has emerged, in many small ways, mostly with Apple's superb design leading the way.
The iPod Shuffle, the smallest iPod, was long overdue for an upgrade, and Apple made the diminutive player even smaller; it is now no bigger than an oversize postage stamp, and instead of somewhat cheap-looking plastic, it is housed in a beautiful brushed aluminum case with a built in clip--perfect for people who want to carry music but don't want another big gadget to lug around. This new Shuffle is also likely to be popular with sports enthusiasts.
The iPod nano, which has been wildly popular but heavily criticized for its easily scratchable case, has been redesigned in durable aluminum and now comes in five colors, along with more capacity and longer battery life.
The full size iPod has a 60% brighter screen, longer battery life, lower prices, and increased capacity for better handling of movies. Apple also rolled out a revamped iTunes Store that now sells music, audio books, podcasts, TV shows, and full length movies. This was no surprise, but Apple's design efforts for the store are stunning. You use the new iTunes software to access the store and shop for content, and the two work together extraordinarily well. Among the additions to iTunes is the ability to capture cover art for both music and videos, and a new cover art browsing feature is really impossible to describe in words--I did not pay much attention to it as I read about it, but when I saw it working on my computer, I was awestruck, and with more than 30 years of technology use under my belt, that's pretty hard to do.
Apple has labored for years to slowly integrate media as part of the "computer," and the work is beginning to pay off. The seamless integration of hardware, software, and content can't really be appreciated until it is experienced, and if Apple wins the media wars, it will not be because of any single product or service, but because of an end to end commitment to detail and design that bigger companies like HP and Microsoft have never mastered.
Apple also previewed a $299 box that connects to your TV, stereo, or HD flat panel television; the device has both cabled Ethernet and wireless network access so you can stream music, TV shows, or movies from your computer to your TV. This is where Apple is diverging from the rest of the industry. Microsoft's media vision is that the computer becomes the TV, which means you end up with the computer NEXT to the TV, which is not where most people want to use the computer for other tasks like email, the Web, and work. Apple's vision is that the computer can be anywhere in the home, and you can effortlessly pull your music and video to wherever you want to use it.
Community economic development check: In just about every rural community I have ever been in, leaders talk about the need to attract and retain young people. But when I ask for a show of hands to see how many of these leaders have iPods or have used iTunes, it is ordinary for none of them to have an iPod or to be familiar with how these devices are used. But virtually everyone under thirty has a music player, and nearly 80% of those have an iPod. If you want to attract and retain young people in your community, you need to know what interests them and why. Step One of a revamped economic development plan: Buy each of your key leaders an iPod and install iTunes on their computer (yes, it runs on Windows).
A San Diego start up company has announced plans to sell broadband delivered by gas pipelines. The problem with these schemes to put broadband in {insert your favorite utility here: gas pipes, electric cable, sewer lines} is that you can end up spending a significant portion of what it would take to build out a complete, communitywide fiber system, but in most cases, you will have a second class broadband system that could put your community permanently behind communities that do invest in fiber--and from an economic development perspective, the result could be difficult to overcome.
These are typically vendor driven solutions, not community needs based solutions. These systems may well have a niche role to play in the market place, but the future is fiber--no other delivery system has the same ability to increase in capacity over time. I want to make sure communities invest in systems that are going to last for decades, and fiber, when you look at the total life cycle costs, is much cheaper than any radio-based solution, which includes over the air wireless, BPL (Broadband Over Power Lines), and the gas pipe system.
Vendors tend to want to push a single system, but it does not have to an either/or choice (either fiber or wireless). It is better to design an integrated system from the ground up with fiber throughout your service area and a wireless overlay so that our mobile devices (phones, PDAs, etc.) work anywhere.