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Filing: Without Itanium Chip, HP Is "Strategically Screwed"

Arik Hesseldahl — Tue, 31 Jan 2012 15:00:45 +0000

Last night, a California judge made some key rulings in the ongoing litigation between Hewlett-Packard and Oracle over the latter’s decision to stop supporting Intel’s Itanium chip.

One thing Judge James Kleinberg did was dismiss a fraud claim by Oracle that said HP had been all sneaky when it concluded a settlement with Oracle that included an agreement to continue building software for systems using the Itanium chip. The settlement was struck only a few weeks before HP hired Léo Apotheker as its CEO and Ray Lane as its chairman.

But that’s not the important part of what Judge Kleinberg did. The most important aspect of yesterday’s action in Hewlett-Packard v. Oracle was the release of the unredacted version of Oracle’s cross-complaint. And it’s a juicy read.

I’ve posted the redacted version before. Now you can read all the bits that were blacked out.

What you’ll find is a lot of information that goes to the core of Oracle’s argument that HP has a lot to lose if the Itanium chip goes end of life, which is exactly what Oracle has said Intel plans to do. As the only major server vendor who sells boxes running Itanium chips, HP makes a lot of money — billions of dollars, according to a newly unredacted statement in the filing — on service-and-support contracts with its Itanium customers. As one HP executive is quoted on page four of the filing, without Itanium, HP would be “strategically screwed.”

Intel, on the other hand, was more or less ready to let the chip die. Having spent billions, dating back to 1989, to develop the Itanium chip, which outside of HP never saw any market success, Intel had to be convinced to keep building them. To do that, HP, the filing reads, paid Intel $440 million to keep Itanium chips in production for a few more generations, through 2014. The deal didn’t even cover the cost of the chips, as HP had to pay for them, as well, the filing reads. Oracle calls the arrangement a “pure pay-off to induce Intel to keep churning out processors that it really wanted to kill.”

And while there’s nothing specifically wrong with the arrangement by itself, Oracle’s point is that HP was misleading the marketplace about the true status of the keystone product in its Business Critical Service business. That unit, in no small part because of the uncertainty wrought by this lawsuit, saw its sales fall by 23 percent in HP’s most recent quarter.

Having won the release of the unredacted complaint, Oracle claimed something of a victory in a statement:

“Oracle is delighted that the Superior Court of the State of California, Santa Clara County, has rejected HP’s attempt to hide the truth about Itanium’s certain end of life from its customers, partners and own employees. We look forward to seeing all of the facts made public that demonstrate how HP has known for years that Itanium is end of life.”

It all sounds very reasonable, until you take into account the fact that Oracle acquired Sun Microsystems in 2010 and is now a big server vendor that competes with HP, and would by no real stretch of argument benefit from an exodus of HP’s Itanium customers toward other vendors. HP called the decision by Oracle to cease support for Itanium part of a “calculated business strategy” to mess up HP’s Itanium business and capture those customers. Yet the evidence so far suggests that the one benefiting from this fight is actually IBM.

HP claimed victory of its own, in a statement:

“HP is pleased that the Superior Court of the State of California, Santa Clara County, has rejected Oracle’s attempt to use a fraud claim to undo its contract with HP. We look forward to seeing the facts made public that demonstrate how Oracle’s March 2011 announcement to no longer develop software for Itanium servers was part of a calculated business strategy to drive hardware sales from Itanium to inferior Sun servers. This further demonstrates the fact that Oracle breached its contractual commitment to HP and ignored its repeated promises of support to our shared customers.”

HP has portrayed itself as the defender of the interests of Itanium customers, under attack by Oracle. As HP puts it in its statement, Oracle tried to induce customers running Oracle software on HP Itanium systems into replacing that hardware by limiting support and withholding software patches and bug fixes. “Customers were left without options to address bugs and other defects in their Oracle software,” HP says.

For HP, this is all a simple argument over whether or not Oracle can be held to the contract they agreed to in 2010.

The agreement stems from the circumstances of former HP CEO Mark Hurd’s resignation, and his subsequent hiring by Oracle as its president. HP sued Hurd and Oracle, and soon they settled. HP says that a clause in that settlement included a provision that Oracle would continue to port its database software to HP servers running the Itanium chip. Oracle has argued that this clause is not part of the final agreement. The settlement document itself remains confidential, but its details will likely emerge in the trial. Expect lots of arguing over different versions of the agreement.

I have embedded two documents below, for your reading pleasure. The first is Oracle’s unredacted cross-complaint, with all the blacked-out bits from the previous version now fully revealed for the world to see. Below that is a Case Management Conference Statement filed by HP lawyers, also unredacted, where it seeks to expose Oracle as making cold-blooded moves that would appear to be attempts to spur Oracle’s own software customers to abandon HP hardware. It’s not quite as juicy as Oracle’s document, but it has its moments, too. Enjoy them both:

HP v Oracle – Amended Cross Complaint

0077a 2011121 Hp Cmc Stmnt Unredacted

Exclusive: Like Marketing, Yahoo's Customer Advocacy Org Gets Sliced and Diced This Week

Kara Swisher — Wed, 26 Oct 2011 07:01:31 +0000

As happened last week to its centralized marketing division, Yahoo has broken up its Customer Advocacy organization, with its staff distributed to the various regions and the product unit of the Silicon Valley Internet giant.

Customer Advocacy has been led by EVP Jeff Russakow, whose fate is now similarly unclear as it is for CMO Elisa Steele, whose division was diced up to the regions last week.

Both execs — who were hired by fired CEO Carol Bartz — plan to remain at the company until at least January, sources said.

Russakow, according to his Yahoo bio, has had “global responsibility for all of Yahoo!’s customer support functions, including audience, small business, ad operations, and search network quality.” He came to Yahoo from previous jobs at Symantec and Adobe.

Interim CEO Tim Morse sent a memo to employees about the change, noting Russakow is looking for his next opportunity, using much the same language as Steele used in her internal email.

The moves are interesting, given Yahoo’s current effort to find a new strategy, which includes a possible sale of all or parts of the company. But there is also a strong sentiment within the company to reorganize around strengthening its advertising platform and products.

I have a call into Yahoo PR for comment (but let’s assume I am accurate about this, shall we?).

More, obviously, to come.

Occipital Uses Its 360-degree View, Sees Microsoft in Its Rearview Mirror

Ina Fried — Mon, 24 Jan 2011 14:00:20 +0000

Tiny Boulder, Colo.-based Occipital hit pay dirt with its first mobile app. Called RedLaser, the program–which uses an iPhone’s camera to identify and scan a product bar code–was sold last June to eBay.

Now, the five-person start-up is racing to rapidly improve its second program, a panorama photo-taking app called 360.

The app uses the iPhone’s video-recording feature to create an immersive panoramic photo (see YouTube video to really get a sense for what it does). I’ve used it a bunch in recent months to capture everything from interior scenes of the Boston Library to a snowy Copley Square to shots of Stanford’s women’s basketball team snapping UConn’s 90-game winning streak. The app debuted at the end of July, mere weeks after the team sold RedLaser to eBay.

However, the Occipital team feels a renewed urgency to add a bunch of features quickly. In December, Microsoft offered a demo of a similar technology it hopes to add into its Bing for iPhone app.

What the 360 app does well, said co-founder Jeff Powers, is create such panoramas quickly and easily. However, the options to share that panorama are limited, especially if one wants to share an immersive photo as opposed to just an unrolled flat image. Also, one of the downsides of the app’s speeds is that it only captures a part of the scene once, meaning it misses out on the opportunities to improve on that initial image with additional data. Also, unless a user is particularly skilled, there can be visible seams within the panorama.

Powers said the company hopes to address all of those issues in the next release.

“We’re trying to satiate that exact urge to capture the scene and share it with other people,” Powers said in an interview. “We’ve nailed the ‘It’s really fast and easy [part]‘; we havent nailed the ‘It’s really good quality and easy to share’ part.”

Powers said he is also hoping to get the next version of 360 out in the coming months, “hopefully before they [Microsoft] come out with whatever they come out with and before any others.”

Occipital, which grew out of the TechStars Boulder program, also hopes eventually to bring 360 to other mobile devices.

“We’re very very interested in Android,” Powers said. One of the challenges, though, is 360 works very closely with the phone’s camera. With the iPhone, that only means understanding one or two different models, as compared to dozens of Android phones–meaning lots of extra support and development time.

“It is a big endeavor to support all of these devices,” Powers said.

The company also hopes to create an expanded Web presence, beyond a current gallery of 360-created panoramas.

As for Microsoft, it says its panorama feature is still a prototype, with no firm date for when it will be added to the Bing iPhone app.

At the December event, Microsoft’s Blaise Agueras y Arcas demonstrated Bing’s forthcoming panorama abilities in a video interview with Mobilized.

“This is still experimental, but we are coming out with it very soon,” he said.

Here is the video that shows what the 360 app can do:

Second-Edition iPad–Worth the Wait?

Walter S. Mossberg — Wed, 05 Jan 2011 22:36:42 +0000

I am considering buying an iPad, but am wondering if I should wait for the second edition which is rumored to be coming soon. What do you advise?

I regard the current, original iPad as an excellent product, and can’t say you’d go wrong with it. But while Apple is famously secretive, I’d be surprised if there isn’t a new model announced in the next few months that will have added or improved features. There’s wide speculation, for instance, it will gain a camera or two. The company has a long history of improving its products, and, in the case of the iPad, must keep making it better to deal with a host of coming tablet rivals. So, if you can wait a few months, I’d do so.

I see that many of the newer wireless routers with attractive features do not support printer sharing. Does that mean you cannot connect a printer via Ethernet cable to the router and be able to access that printer through the wireless network? Why do so many of the newer routers not support printer sharing?

In the context you seem to be using it, the term “printer sharing” referred to plugging in an otherwise non-networkable printer via USB to a router, which would then make the printer usable over the network. I presume that this feature has declined in popularity as more home printers now have wired or wireless networking built in, and the latest Windows and Mac operating systems make it much easier to share even a printer without its own network features through the computer’s connection to the network. If the printer has wired networking built in, you should be able to plug it into one of the Ethernet jacks on most wireless routers and make it usable on your wireless network.

I have an almost two-year-old MacBook Pro. The hard drive is nearly full, and I wondered if you knew of any tricks to free up some space. I’m particularly interested in cost-effective fixes.

One useful free utility for freeing up space on a Mac is called Monolingual, and is available at http://bit.ly/dqTCSC. This little utility allows you to remove all the obscure files on a Mac that allow the computer to operate in languages you can’t read or don’t use. For instance, if you only speak and read English, you can erase the files that enable the computer to run in, say, Albanian and Portuguese. Its maker says this can free up hundreds of megabytes of space. I have tried it and it works. Of course, whether you have a Windows PC or a Mac, you can free up space in many other ways, such as by deleting files and programs you don’t use, archiving or deleting old email, and removing temporary browser files.

Email mossberg@wsj.com.

Amazon Recruits Developers for Super-Slick Android Appstore

Tricia Duryee — Wed, 05 Jan 2011 19:56:18 +0000

Amazon today released preliminary plans for its Android Appstore, which will likely do a better job of merchandising and selling apps than Google has.

Think of it as the equivalent of iTunes for Android.

Developers will be able to upload apps–including games and other digital content–to Amazon, which in turn will promote and distribute them on Amazon.com and also on mobile phones. (I can hear the promotions now: “If you liked that app…what about this one?”)

In a blog post aimed at developers, Amazon writes that it’s trying hard to get developers recognized among the hundreds of thousands of apps out there: “Amazon’s innovative marketing and merchandising features are designed to help customers find and discover relevant products from our vast selection, and we’re excited to apply those capabilities to the apps market segment.”

For the past few months, Amazon employees have been reaching out to developers to find out pain points and drum up support for this day.

So far, it looks like Amazon has listened to concerns. The developer portal looks insanely easy to use–anyone with a regular Amazon username and password can access it. Right now, the annual fee of $99 has been waived, and once you agree to a seven-page app-store distribution agreement, you can start uploading applications to the network, and eventually see metrics on how well they are performing.

Much of it sounds like iTunes.

Amazon will share 70 percent of revenues with developers, and the distribution agreement hints it will go worldwide. For now, it will be limited to the U.S. Amazon will handle all the bill processing, which is complex, especially on a global basis. Google learned this the hard way, and continues to support only paid apps in some countries. Amazon will also have some sort of approval process, but it’s unclear how rigorous that will be.

Launching an app store is not a stretch for Amazon. It’s been selling MP3s on phones for some time and has a large digital catalog, spanning books and videos. It also has a built-in payment system and access to tens of millions of Amazon customers, many of whom have their credit card information on file, as with iTunes or PayPal.

The one question is whether the business will provide enough scale for an e-commerce company of its size. After all, most applications today are free, or really cheap. And at least for now, Amazon is limited to the Android operating system.

True, Android is quickly gaining on Apple, especially in the U.S. According to Nielsen’s latest figures, the iPhone’s market share is 28.6 percent vs. RIM’s BlackBerry and Google’s Android platforms, which are essentially tied in second place with 26.1 percent and 25.8 percent, respectively.

There are two potential scenarios that will help pencil this out: The app store could help drive more sales of other content or products on the phone for Amazon. A more farfetched scenario is that Amazon does such a good job that other platforms or handset makers, like BlackBerry, Windows Phone, HTC or Samsung, will choose to outsource or adopt Amazon’s platform for a cut of the revenues.

Skype Postmortem: Overloaded Servers and Desktop Bugs Brought Us Down

Arik Hesseldahl — Wed, 29 Dec 2010 15:56:21 +0000

Skype today published a lengthy postmortem explanation concerning why its service went down for the better part of two days last week.

CIO Lars Rabbe says in a blog post that a set of support servers responsible for Skype instant messaging became overloaded, and as a result sent delayed responses. A bug in the latest Windows version of the Skype desktop software failed to process these delayed responses, causing them to crash. About half of the world’s Skype users who were signed on at the time the problem began were using that version of the software, and of those, about 40 percent crashed. Among them were users whose machines were serving as supernodes. Rabbe says as many as 30 percent of the Skype network’s supernodes were among the crashed machines.

Losing those supernodes increased the load on other still-functioning supernodes, which was compounded by all the crashed Windows users trying to restart their software and get back on the network. He says traffic to these supernodes surged to 100 times normal volume for that time of day.

What he doesn’t go into great detail about was why the instant messaging servers became overloaded in the first place. Was this another bug in the server software? It’s a little unclear from this explanation.

Rabbe says Skype is trying to learn from the incident and has instituted new procedures to try to prevent this sort of thing from happening again. But this can’t help but hurt its reputation as it looks for ways to diversify its base beyond the millions of free users it has and make some actual money.

The whole reason Skype is supposed to work as well as it usually does is the strength and resilience of the network, and the fact that the network gets stronger as more people are signed on to it. To say that two bugs in a strange confluence of events could bring that entire network down raises a lot of fundamental questions about Skype.

Rabbe says an investment program to increase capacity to support paid consumers and enterprise customers is underway and will continue into 2011. I’m betting Skype will speed it up.

SkypeOut: Service Is Down for Millions

Ina Fried — Wed, 22 Dec 2010 18:23:35 +0000

Skype users were sent scrambling for one of the few remaining pay phones on Wednesday as the Internet telephone service experienced a widespread outage.

A page deep in the company’s support site confirms the issue, but appears to significantly understate the problem.

“We are aware that some people are encountering difficulties signing in to Skype,” reads the company’s response on a FAQ page for those having connection issues. “Rest assured, we are working hard to fix this. In the meantime, we apologise for any inconvenience this may be causing you.”

Maybe the company was just trying to reinforce its warning that Skype is not a replacement for the telephone in an emergency:

Needless to say, this isn’t the kind of conversation the company was seeking to spark as it tries to build momentum for a pending stock offering.

Update, 10:45 am PT: A Skype representative said in an email that the company is examining the cause and extent of the outage and again apologized to users for the inconvenience. Skype said to follow its Twitter account (@skype) for updates.

Rejoice! Download Katy Perry From Amazon to Your BlackBerry Without Waiting!

Peter Kafka — Tue, 14 Dec 2010 16:16:18 +0000

You know how everyone you know who owns a BlackBerry is always complaining that they can’t buy and download MP3s from Amazon directly to their phone? Problem solved!

At least theoretically: I just tried to download the new app to my year-old Tour, and got an error message. And BlackBerry’s support link for the app gave me a 404 error.

Meanwhile, some context: Various retailers, carriers and phones have offered over-the-air downloads for years, and Apple brought them to the iPhone in 2009.

Despite the music industry’s big hopes, they’ve never really taken off in the U.S.

Analyst: Verizon iPhone Would Have Minimal Impact on Android Vendors

John Paczkowski — Wed, 17 Nov 2010 18:45:49 +0000

The iPhone’s debut on Verizon next year will clearly cause some suffering over at AT&T, which is losing its long-running exclusive on the device. But there are a few other companies that will feel the pain of that transition as well: HTC, Motorola and Research in Motion. Verizon is an important distribution channel for all three, and the eagerly anticipated debut of the iPhone on its network will likely affect them–but not as much as you’d think.

“We see 3 immediate effects of expansion of the distribution of the iPhone at Verizon,” Bernstein Research analyst Pierre Ferragu said in a note to clients today. “A) Migration of existing iPhone users from AT&T to Verizon; B) Some migration of Android users at Verizon to the new iPhone; C) More support to Android from AT&T, as a consequence of the loss of the iPhone exclusivity.”

Worst-case scenario, Ferragu figures Motorola, HTC and RIM will lose 10-30 percent of their business to Verizon. But that loss will likely be offset by new gains at AT&T–at least for Android vendors like HTC and Motorola, for whom Ferragu predicts a 0-30 percent increase in shipments at the carrier. Says Ferragu, “If Verizon starts selling the iPhone, we believe there will not be a visible impact for HTC and a limited one for RIM. If there is a medium term impact on Motorola, we believe that the shortfall will be easily made up in the full year.”

Apple Snips Needling Threads From iPhone 4 Forums

John Paczkowski — Tue, 13 Jul 2010 18:34:03 +0000

Yet another twist in the iPhone 4 antenna saga: Apple’s Support forum moderators have deleted some–but not all–threads discussing Consumer Reports’ refusal to recommend the device.

As public relations moves go, “moderation into oblivion” is a poor strategy. Though the deleted threads are no longer viewable on Apple.com, you can still find them in Bing’s cache. As a wise man once said, “You can’t take something off the Internet…that’s like trying to take pee out of a swimming pool.”

iPad Wi-Fi Woes?

John Paczkowski — Mon, 05 Apr 2010 16:56:13 +0000

Though a marvel of design and engineering, Apple’s iPad, like most first-generation devices, is not without flaws. Just two days at market and already some new iPad owners are flocking to Apple’s support forums, complaining about temperamental Wi-Fi connectivity.

“I have…noticed very weak wifi signal in my 16GB iPad,” one post to Apple’s iPad support discussions reads. “Even when standing in front of the wlan router the signal fluctuates from strong to very weak. The router has very strong signals as every other computer here has full signal strength, even 20-30 meters from the router. So there is definitely a wifi signal issue here with the iPad.”

“I’m having the same problem,” reads another. “iMac, Macbook, Macbook Pro and iPhone all work great 3 rooms from my house (all connecting through an airport). My iPad is only getting 1/3 on Wifi and frequently dropped the connection.”

This is obviously a supremely annoying problem since Wi-Fi is the iPad’s only means of connecting to the Internet.

It is not yet clear how widespread this issue is. As I write, there are several iPad Wi-Fi-related discussions on Apple’s support forums, the largest of which hosts about six pages of comments.

That said, I have not had any problem with my iPad–moments ago, I streamed a Netflix (NFLX) movie to it from the sidewalk in front of my house–and my informal poll of friends and colleagues who own the device turned up no reports of weak or temperamental Wi-Fi connections. Which is not to say they don’t exist or that they’re the result of user error, just that they appear to be fairly limited in scope at this point.

In any event, Apple (AAPL) has posted two support documents (1, 2) for iPad owners to troubleshoot ornery Wi-Fi connections.

UPDATE: A commenter below points out a list of potential fixes.

Xobni Soups Up BlackBerry; No Mac Support

Katherine Boehret — Wed, 17 Mar 2010 19:22:09 +0000

Stacey Delo of Digits and MediaMemo’s Peter Kafka talk with Katie about her review of Xobni, a BlackBerry app for Outlook contact synching. In the video, they discuss the lack of Mac support, pricing and the need for having all your contacts in one place.

[ See post to watch video ]

Windows Phone 7 Series Even More Impressive Than Previously Thought

John Paczkowski — Mon, 15 Mar 2010 17:55:34 +0000

Microsoft added a bit more to its Windows Phone 7 Series story at its MIX10 event this morning, revealing some of the mobile operating system’s features and detailing how developers can write software for it. While it’s obviously far too early to make any big declarations about it, the OS certainly seems competitive–and compelling. Consider this feature list:

accelerometer support
a Microsoft Location Service for the phones
Microsoft Notification Service, known to other smartphone users as push notifications
hardware-accelerated video playback with digital rights management
internet information services smooth streaming for live video
multitouch support
camera and microphone support

Table stakes at this point, I suppose, but a robust feature list just the same. Announced along with it: A free suite of application development tools and a solid list of launch partners that includes the Associated Press, EA Mobile, Namco, Pandora and Sling Media, among others. One of the OS’s showcase apps: Netflix with “Watch It Now” 3G video streaming.

Impressive, no? Could this be the beginning of another application development gold rush? Microsoft (MSFT) clearly hopes so.

“More than half a million Silverlight and tens of thousands of XNA Framework developers are now Windows Phone developers,” Windows Phone 7 boss Charlie Kindel wrote in a post to The Windows Phone Developers Blog.

“Developers and designers can now build their code once and optimize it to take advantage of the unique capabilities of the phone, Web, PC or Xbox 360,” Kindel added. “Due to common shared libraries, controls and runtimes across these many screens and the cloud, developers now have the opportunity to reach over 1 billion customers.”

Still, it’s far too early to say what’s to come. It seems clear, however, that with Windows Phone 7, Microsoft could make the jump from mobile OS also-ran to contender fairly quickly–assuming the market’s willing, of course.

Customers Inspire the Socialization of CRM

Brian Solis — Fri, 05 Mar 2010 19:11:08 +0000

The Altimeter Group is no stranger to disruption. The incredibly savvy and influential team lead by Charlene Li is redefining the role and purpose of industry analysts by placing research into action–essentially bringing trends from the edge to the center to help businesses employ the technologies and strategies that will help them compete for the future, today.

Industry analysts, at least in the case of the Altimeter Group, are ultimately becoming market catalysts.

With today’s news, this is of course, only fortified.

The Altimeter Group released a new report on social customer relationship management, and while analysts release reports all the time, this is different. The report is free to read and share under creative commons, and this is a big disruptor, one that reflects the socialization of information and the spirit of social media. By giving away insight, Altimeter ignites change and thus brings its report to life.

As such, the Altimeter Group is demonstrating how new models are needed to thrive in the social economy and concurrently putting into practice the ingredients of an effective social CRM framework.

The New Rules of Relationship Management

The essence of the new report by Altimeter’s R “Ray” Wang and Jeremiah Owyang is putting the customer first. While that seems like a simple principle, it’s easier said then done. The case the duo make is rooted, of course, in social media and the self-actualization of personal influence.

As the report notes in the beginning:

“Rapid adoption of social networking enables users to connect with individuals and communities who share mutual interests, increasingly leaving organizations out of the conversation.

Simply hiring more people to keep up with social marketing, sales, and support will not be sufficient, as consumers and their new channels will always outnumber employees. As a result, companies need an organized approach using enterprise software that connects business units to the social web–giving them the opportunity to respond in near-real time, and in a coordinated fashion.”

And indeed, they’re right.

Social media didn’t invent conversations, it simply amplified and connected them to audiences and the actions that are triggered as a result. With the right tools, and more important, mindset and resolve, we can now uncover these incredibly valuable, insightful and prominent conversations where and when they happen. Listening is only the beginning however. As in anything, we need a little less conversation and a little more action.

As the report notes, social CRM does not replace existing CRM efforts, it complements them with an outbound extension to connect with the very social beacons that shape and steer perception–those previously untouched with inbound-only infrastructures. Essentially the “s” in sCRM should be viewed as a verb…as in socialize. Actions speak louder than words and thus, sCRM transforms words and intent into action.

As the “godfather of CRM,” Paul Greenberg, notes, “We’ve moved from the transaction to the interaction with customers, though we haven’t eliminated the transaction–or the data associated with it….Social CRM focuses on engaging the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. Social CRM is the company’s response to the customer’s ownership of the conversation.”

The Socialization of an Entire Organization

The social customer is only one part of the equation. As any listening program will reveal, conversations map specifically to departments within an organization and as such, all units affected by outside activity will socialize over time. This is why I believe that over time, we should focus less on the “C” of sCRM and focus our attention, energy and ingenuity on the aspects of SRM–social relationship management.

The social Web is distributing influence beyond the customer landscape, allocating authority among stakeholders, prospects, advocates, decision-makers, and peers. SRM recognizes that whether someone recommended a product, purchased a product, or simply recognized it publicly, in the end, each makes an impact on behavior at varying levels. Therefore customers are now merely part of a larger equation that also balances vendors, experts, partners, and other authorities. In the realm of SRM, influence is distributed and it is recognizes wherever and however it takes shape.

“SRM is a doctrine aligned with a humanized business strategy and supporting technology infrastructure and platform. SRM recognizes that all people, no matter what system they use, are equal. It represents a wider scope of active listening and participation across the full spectrum of influence mapped to specific department representatives within the organization using various lenses for which to identify individuals where and how they interact.”

But we must begin somewhere and for many businesses, the evolution from CRM to sCRM is in fact, revolutionary.

After months of study and interviews with over 100 organizations, Altimeter Group identified 18 use cases for Social CRM to help businesses assess, adapt, and create new programs and processes to socialize their brands.

As the report notes, social CRM programs start at the departmental level, but require corporate support to transform fiefdoms into united efforts. The challenge lies in mobilizing and organizing resources around distributed conversations and building the connectors that link CRM systems to social networks. And, organizations must set priorities based on market demand and technology maturity.

Customers have already migrated toward new channels and in the process, companies that are not in pursuit are quickly falling behind. Relationships between organizations and customers might be better defined simply as “relations” as the existing framework was traditionally optimized around the organization and not the customer.

“Traditional CRM projects have failed to grasp the complexities of the customer-company relationship. Though these CRM programs started out with the goal of providing a single customer view and 1:1 relationship management, early efforts quickly refocused on automation of front-office tasks and improving management visibility across marketing, sales, service and support. Because these programs have often failed to support the front-office worker’s needs to manage relationships, internal adoption halted as users grew to resent, and in some cases revolt, against CRM.”

To begin at the beginning, businesses must deploy social CRM for business value and not get caught up in the hype of Twitter and Facebook. We have to go where our customers seek, discover, and share information. Alitimeter suggests focusing on bite-sized entry points as today’s tight budgets, limited resources, and little time will ensure that companies get the most bang for the buck initially. (Click graph below to enlarge.)

In the report, each one of the 18 use cases brings definable metrics that should be incorporated in each Social CRM program.

- Begin with the end in mind

- Metrics should be aligned with an organization’s entry points

- Quantify the baseline and determine the effort

- Adjust ROI targets to align resources with efforts to move the needle

- The goal–drive business value

The 18 recommended use cases are organized in seven categories and in order of operations. As observed, most organizations start their initiatives by building out the “5 M’s” and deploying a customer insight program that matures with experience and earned intelligence. I previously discussed the maturation of social media infrastructure in business usually evolves in at least 10 stages. (Click table below to enlarge.)

Social Customer Insights form the Foundation for All Social CRM Use Cases–Everything begins with listening

1. Social Customers Insights

Social Marketing Seeks to Achieve Customer Advocacy

2. Social Marketing Insights

3. Rapid Social Marketing Response

4. Social Campaign Tracking

5. Social Event Management

Social Sales Enables Seamless Lead Opportunities

6. Social Sales Insights

7. Rapid Social Sales Response

8. Proactive Social Lead Generation

Social Support and Service Drives Sustainable Customer Satisfaction

9. Social Support Insights

10. Rapid Social Responses

11. Peer-2-Peer (P2P) Unpaid Armies

Social Innovation Streamlines Complex Ideation

12. Innovation Insights

13. Crowd-sourced R&D

Collaboration Reduced Organizational Friction and Stimulates Ecosystem

14. Collaboration Insights

15. Enterprise Collaboration

16. Extended Collaboration

Seamless Customer Experience Sustains Advocacy Programs

17. Seamless Customer Experience

18. VIP Experience

The Customer (R)evolution
The methodologies, systems, and people that entwine CRM are unquestionably forcing a historical (r)evolution from the outside in. As customers earn prominence online and ultimately in the marketplaces they define, CRM is far more consequential to the prosperity and relevance of businesses, than perhaps ever before.

This is about earning a prestigious position in the hearts, minds, and ultimately, decisions of customers, prospects and those who affect their actions, today and tomorrow. Essentially, with the socialization of media and the redistribution of authority and influence, we are competing for the future simply by listening, responding, learning and adapting.

Social customers are disrupting the balance of power and actively exerting their new found eminence within every social network and community that thrives off of shared experiences. The socialization of CRM is effectively measured by the dedication of resources and resolution the organization commits not just to social media, but to all existing channels where customers, influencers and prospects seek help.

Divided we share…united we change.

Social CRM: The New Rules of Relationship Management

Apple iPad Event Liveblog

John Paczkowski — Wed, 27 Jan 2010 18:00:40 +0000

After months of feverish speculation and as many years of wishful thinking, Apple uncrated its tablet computer–the iPad–at an invitation-only event in San Francisco this morning.

Liveblog

9:13 am PT: Quite a scene here this morning; the queue for media credentials is nearly as long as some of the iPhone 3G launch lines I saw a few years back. Moments ago, an Apple PR rep slipped through the doors of the Yerba Buena Center to ask that the press waiting outside take two big steps back. The last time that happened to me, I was at a Jesus Lizard show.

9:54 am: The doors open and the press enters the event hall. Initially, at least, the scene is pretty crazy. “This is like the subway in New York,” an attendee behind me jokes. More like the subway in Tokyo, I think to myself.

A Bob Dylan soundtrack plays as media and guests file in. It’s momentarily interrupted by a “please take your seats, our event is about to begin” announcement.

10:00 am: Interesting stage set-up today: Instead of an empty stage or a simple table, there are a black leather chair and side-table. Lights are dimming….

And Steve Jobs takes the stage to a standing ovation.

“We want to kick off 2010 by introducing a truly magical product, but first a few updates….A few weeks ago we sold our 250 millionth iPod…I didn’t want to let that moment pass without recognizing it.”

10:05 am: Jobs offers a quick overview of Apple’s retail operations and some of the new stores it has opened recently before moving on to the iTunes App Store. “A few weeks ago we announced that three billion applications had been downloaded from the App Store–that’s in 18 months…amazing.”
He notes, as he did in the company’s earnings release the other day, that Apple is now a $50 billion company.

Apple is a mobile devices company, says Jobs, “the largest mobile devices company in the world now. Larger than Sony’s mobile device business, larger than Samsung’s and, astonishingly, Nokia’s as well.”

10:07 am: A quick historical overview now. Jobs touches on the first PowerBook, introduced in 1991. He moves on to the MacBook and then the iPhone.

“All of us use laptops and smartphones, now. And the question has arisen lately: Is there room for a device in the middle?…We’ve pondered this question as well.”

This “middle” device, says Jobs, must be better at doing certain tasks than either the laptop or smartphone. If there’s going to be a third-device category, it must be better at browsing the Web, video, photos, music, etc.

“Some folks say this device is a netbook…. The problem is, netbooks aren’t better at anything.”

10:10 am: But we have something that is, says Jobs, “and it’s called the iPad.”

Photos of the device appear on the giant screens. Very thin. Very slick. “IPad offers the best Web browsing experience there is–way better than laptops.” There is no camera that I can see. That’s not going to go over well with folks hoping for a device that supports video iChat.

10:13 am: Further details: The “iPad is a dream to type on,” Jobs says, pointing out its life-sized onscreen keyboard. It’s also an awesome way to enjoy media. iTunes, iTunes University and YouTube HD support are built in.

10:14 am: Jobs sits down to demo the device: “Using this thing is remarkable. It’s so much more intimate and capable than the laptop.” He loads Safari and surfs over to the New York Times (NYT). The iPad loads quickly and Jobs is able to easily navigate the page, loading stories and zooming in on articles.

10:15 am: Demonstrating landscape and portrait now. “This device adapts to the way I want to use it.”

Definitely an impressive browsing experience. Fast and elegant.

Now, an overview of Mail. Also elegant. Nice split-screen presentation. Hit compose, and a nice onscreen keyboard pops up. Jobs types out a message to his colleagues at Apple. Seems relatively easy.

10:19 am: Moving on to iPad’s photo capabilities. It supports iPhoto’s Events, Faces and Places features. It also offers built-in slideshows complete with soundtracks and transitions.

Running a slideshow demo, Jobs pauses and looks out at the audience with a Chesire Cat-wide grin. He’s clearly relishing this moment.

10:22 am:: The iTunes experience on iPad is much as you would expect. Similar, if not identical, to what the software currently offers. Calendar and Contacts apps are also nice and, again, similar to what you’d find on a MacBook or iPhone.

10:24 am: Demoing Google Maps now. The iPad supports Google Street View and the implementation is very slick.

10:25 am: Moving on to video. Jobs calls up an HD clip from Google’s (GOOG) YouTube and displays it in both portrait and landscape. That finished, he fires up iTunes and loads “Star Trek” to demo the device’s video features, scrubbing, etc. Then he shows us a clip from Pixar’s “Up.” Tap to go full-screen. “Isn’t that wonderful?”

10:27 am: Watching that is nothing like actually having one in your hands, says Jobs.

iPad is one-half-inch thick, weighs 1.5 pounds, and comes with 9.7 inch IPS display–“very high-quality display”
Full capacitive multitouch
16GB-64GB flash storage
iPad is powered by our Apple’s custom silicon–“We did it inhouse and it just screams,” says Jobs.
Wi-Fi, Bluetooth, accelerometer, compass.
Battery life: 10 hours.

“And in addition to 10 hours of battery life, iPad offers a full month of standby time,” Jobs notes. “It’s also a good environmental citizen,” he adds, noting that it’s a very green device.

10:31 am: Jobs invites Scott Forestall to the stage to talk about apps on the device.

“We built the iPad to run virtually every app in the App Store right out of the box,” Forestall says.

Evidently, a built-in pixel-doubling feature automatically scales iPhone apps to full-screen iPad apps.

10:35 am: Forestall runs an unmodified racing game from the App Store. He first demos it in the screen size of an iPhone. Then, using the pixel-doubling feature, he blows it out to full screen. Very slick.

“So you can buy the iPad, take it home, hook it up and download all your iPhone apps and run them with no problem at all,” he says.

Forestall announces a new iPhone software development kit specifically geared to the iPad. He notes that iPad-specific applications will be featured “front and center” in the App Store.
He then invites Gameloft’s Mark Hickey to the stage to demo some new games the company has developed using the new SDK.

Hickey notes that the iPad’s additional screen space is a boon for developers, particularly those building games. He demos a first-person shooter that showcases this. “We’re now able to interact with the game world in ways that we weren’t able to before.”

10:40 am: Next up, the New York Times. Martin Nisenholtz takes the stage to talk about its iPad effort.

After talking up the Times iPhone app, Nisenholtz segues to the the paper’s new iPad app: “We think we’ve captured the experience and essence of reading the newspaper.”

The app is largely what you’d expect. Tap to resize text, zoom, breaking news updates, video. “This is everything you love about the paper and everything you love about the Web.”

10:44 am: Now, a painting application called Brushes that was famously used to create a New Yorker cover.
The app is impressive enough on iPhone; it’s even more so on the iPad. It supports “playback” of paintings, and as the presenter notes, brings us one step closer to a real virtual painting studio.

10:46 am: EA’s Travis Boatman take’s the stage. The topic of his presentation: Need For Speed.

“Building for the iPad is a little bit like holding a high-def TV screen a few inches from your face,” he says.

The iPad version of Need for Speed boasts a number of touch-activated enhancements: Tap on the car to view its interior, tap on the rear-view mirror to look behind you.

10:52 am: Up next: MLB.com’s Chad Evans. He demos the outfit’s iPad-optimized app, which uses the device’s additional screen space to display video excerpts and MLB TV.

MLB TV can be streamed like and enhanced with onscreen stats and data. “This big display really allows us to create a much more immersive experience,” Evans says.

10:52 am: Forestall returns to the stage to make another brief plug for the SDK before Jobs takes over for him.
“Let me show you another one of our apps that we’re very excited about,” Jobs says. “An e-book reader.”

Behind him a photo of Amazon’s (AMZN) Kindle appears. “Amazon did a great job with their reader and we’re standing on their shoulders here….Today we’re announcing the iBooks store,” says Jobs, adding that it will be supported initially by Penguin, Simon & Schuster and a number of other big publishers.

The iBooks Store interface begins with a simple bookshelf view. Tap the screen and it loads a more iTunes-like view. Purchase a book and it’s added to your bookshelf with a slick little animation.

The reading experience seems very appealing. Much more book-like. From where I sit, the pages look like they’re written on paper.

“We use the e-pub format, the most popular open-book format in the world,” says Jobs. “We think iPad is going to be a very popular e-reader not just for bestsellers, but for textbooks as well.”

10:58 am: And here’s another new product announcement: A new version of iWork tweaked for use on the iPad. Jobs invites Phil Schiller on stage to demo it.

“We have a completely new version of Keynote, a completely new version of Pages and a completely new version of Numbers–all optimized for multitouch.

Schiller demos Keynote first. Creating presentations appears intuitive and simple–a slide navigator on the left, tap to load individual slides in the main window, drag to rearrange.

Nice use of multitouch gestures to enhance the app. Pinch to resize photos, tap to insert animations and transitions. These are all fairly advanced techniques and the device seems to handle them well.

11:05 am: Moving on to Pages now. Also impressive, though creating a written document on a tablet device like the iPad seems like it might be a drag. A nice tool for editing, though. Simple controls.

11:07 am: Moving on to Numbers. This application also makes good use of multitouch gestures and boasts a data-entry keyboard along with some 250 built-in functions. The software’s gesture capabilities makes Excel look antediluvian.
Powerful and fast.

So what’s Apple going to charge for iWork? $9.99 each, says Schiller, who notes that all three applications are compatible with their Mac versions.

Jobs returns to the stage, grinning. “Isn’t that great?” he asks for what’s easily the 10th time. iPad, he says, will synch to Mac or PC via USB.

11:14 am: Evidently, there will be two iPad models–one with Wi-Fi-only and one with Wi-Fi and 3G. The 3G device will come with two plans: 250 MB per month for $14.99, unlimited data for $29.99.

And who’s the carrier? AT&T.

A small groan ripples through the audience.

Jobs allows that AT&T is also throwing in free Wi-Fi at its hotspots. He follows that up by noting that there are no contracts for the iPad. You can cancel at anytime.

All iPad 3G models are unlocked and they use new GSM micro SIMS, so chances are they will just work, Jobs says, after noting that Apple hasn’t yet worked out international carrier deals.

11:16 am: Now a quick overview as a wrap-up. Jobs touts the overall tablet experience along with the new iBook app and iBook Store. “This is an amazing product with tremendous breadth. What should we charge for it?…When we set out to develop the iPad we not only had aggressive UI goals, we had aggressive price goals, because we wanted to put this in the hands of as many people as possible….IPad pricing starts not at $999, but $499,” Jobs says to a huge round of applause.

$499 for 16GB base model.
32GB for $599.
64GB for $699.
Adding 3G requires an additional fee.

Apple will ship Wi-Fi models in 60 days and 3G models in 90.

11:20 am: Apple has created new accessories for the iPad: A standard dock and a second dock with a keyboard attached to it. “Keep one of these in your den and you can write the next “War and Peace” on it.” The final accessory, a new case that doubles as a stand.

Running a video now. It features a number of Apple execs enthusiastically talking up the iPad.

11:25 am: Let me circle back here for a moment to pricing. Adding 3G to iPad requires an additional $130. So we’re talking $629 for the 16GB model, $729 for the 32GB and $829 for the 64GB version.

Designer Jon Ives on the iPad: “In many ways iPad defines our vision, our sense of what’s next.”

11:32 am: Jobs returns to the stage and recalls the “middle device” scenario he mentioned earlier today. “Can we create this new category? The bar is set pretty high, but we think we’ve got the goods.”

“This is our most advanced technology in a magical and revolutionary device at an unbelievable price,” he adds. “The reason the iPad is going to be so great is because Apple has always strived to be at the junction of technology and liberal arts.”

And with that he concludes. Lights go up and Dylan begins playing over the speakers again.

View the slideshow

PREVIOUSLY:

Apple’s Tablet: A $2.8 Billion Business?

Apple’s Tablet: MacBook Airbus?

Apple Announces Jan. 27 Special Event: “Come See Our Latest Creation”

Major Apple Product Announcement Set for Wednesday, Jan. 27

Apple Pitching Tablet to Publishing Industry; Spring Launch Expected

Time (Finally) for the Tablet? Apple Developers Supersizing Their Apps for January Event.

The Apple Tablet Is Delayed? So What?

$1.9 Billion in Capex? What’s Apple Planning?

Apple’s Tablet: Read Different?

Imaginary Demand for Mythical Apple Tablet Exceeds All Estimates

Apple Tablet Coming to AT&T?

New From Piper Jaffray Analyst Gene Munster: The Apple iPad

Rumored Apple Netbook Actually an E-Book?

iTablet: Apple’s Killer App for Higher Ed

iFugly

Decent Nexus One Customer Support Apparently Not on List of Things Google Makes Universally Accessible and Useful

John Paczkowski — Tue, 12 Jan 2010 08:03:47 +0000

With Android and Nexus One, Google claims to have “improved” the rate and pace of innovation in mobile phones and the manner in which they are distributed. Sadly, the search giant doesn’t seem to have done much for the way in which they are supported.

Not a week after the device’s debut, Google’s support forums are rife with complaints from Nexus One owners who are clearly not getting the level of customer support they expect.

Like most other Google (GOOG) offerings, Nexus One support is self-help driven–FAQs, troubleshooting guides and email forms offered with this earnest caveat: “in most cases you won’t receive a personal response.”

That might fly with folks availing themselves of free Google services like search and email, but it doesn’t with those who’ve just spent between $179 and $529 on a new superphone. Buyers expect their devices to work properly out of the box, and if they don’t, they expect their complaints to be approached with at least a modicum of urgency, preferably by a human.

But that’s not the experience Google is currently offering Nexus One users. As PC World pointed out earlier today:

If you buy a Nexus One manufactured by HTC, directly from Google’s Web site, and use it with T-Mobile’s wireless network–who do you call when you have a problem? Google is only accepting support requests via e-mail, and users are getting bounced between T-Mobile and HTC as neither seems equipped to answer complaints, or willing to accept responsibility for supporting the Nexus One.

So while Google’s new Nexus One distribution paradigm might excel in versatility and simplicity, it fails when it comes to support. Which isn’t all that surprising, I suppose. Google was never really set up to provide customer service. That said, you’d think that a company that takes great pride in improving things and making them accessible and useful, would have made more of an effort to do the same for Nexus One customer service.

Did Google launch the Nexus One with a half-assed customer-service solution? I put a variation of this question to the company and here’s what I was told:

What, exactly, was your customer support solution at launch? I’d assumed that you would initially pay the carriers to handle support, but that doesn’t seem to be the case.
We developed a dedicated, comprehensive Google customer support team for the Nexus One. Our support site can be found at google.com/phone/support, which has pointers to our help center, where there is lots of troubleshooting information. HTC provides telephone support for device troubleshooting and warranty, repairs, and returns. Google also offers self-help through our help center, user-to-user help through forums, and email support to customers who are unable to find answers to their questions online. We promise to answer email inquiries within 48 hours. T-Mobile USA fields calls regarding their service (including service billing inquiries).

Why was this solution chosen?
Solving customer support issues is extremely important to us, because we want people to have a positive Nexus One experience. Therefore, we felt this was the best approach to quickly resolve any customer support inquiries.

We felt this was the best approach to quickly resolve any customer support inquiries.

Really? Hard to believe that “we promise to answer email inquiries within 48 hours” is “the best approach.” Clearly, it’s not.

Google VP of Engineering Andy Rubin conceded as much during an onstage interview with Walt Mossberg last Friday at the Consumer Electronics Show: “We have to get better at customer service,” Rubin said. “We have to close that three-day gap [in response time] to a couple of hours.”

[ See post to watch video ]

Video clip: Andy Rubin on Nexus One customer service issues.

That’s great to hear, but it doesn’t really explain why the gap exists in the first place or why Google felt comfortable launching with it.

So what’s the plan going forward? Says a Google spokesperson: “We are working quickly to solve any customer support issues as they come up, and we are trying to be as open and transparent as possible through our online customer help forums. We’ll continue to address all issues in as timely of a manner as possible, and we’re flexible and prepared to make changes to our processes and tools, as necessary, for an optimal customer support experience.”

Doesn’t sound like much of a plan to me. You?

Operating Systems Offer New Choices in PC Shopping

Walter S. Mossberg — Thu, 29 Oct 2009 01:02:04 +0000

Now that both Microsoft and Apple have finally shipped the new versions of their operating systems, Windows 7 and Snow Leopard, respectively, it’s time for my annual fall computer-buying guide.

This guide stresses laptops, which have become the prevalent choice, but most of its specs also apply to desktops. As always, it is aimed at average consumers doing typical tasks, such as Web surfing, email, social networking, word processing, photos, video and music. It doesn’t apply to businesses, hard-core gamers or serious media producers—groups that need specialized or heftier hardware.

[ See post to watch video ]

Consumers shopping for new computers this fall have a wide variety of choices with the new operating systems pre-installed, making the machines faster and better. Windows PCs are no longer burdened with the disliked Vista OS.

That’s the good news. The bad news is that the Windows hardware makers and retailers generally are trying to nudge you to spend more. They are anxious to guide consumers away from the popular, but low-profit, stripped-down netbooks to somewhat larger Windows 7 laptops from which they can make more money. This larger-size category goes by a variety of names, which can be confusing.

Windows vs. Mac: The arrival of Windows 7 makes PCs from Hewlett-Packard (HPQ), Dell (DELL) and others much better choices than their Vista-equipped predecessors were. Microsoft (MSFT) has closed most of the gap with Apple’s (AAPL) Mac OS X operating system. Also, Windows PCs are often priced hundreds of dollars lower than Macs, and offer many more choices.

But Apple’s hardware is stylish and sturdy, and, in my tests, Macs usually boot faster than Windows machines. Plus, Apple’s chain of retail stores offers a better buying experience and strong post-purchase support. Also, in my view, Apple’s built-in software still has the edge. Snow Leopard is fast and reliable. And it comes with a full suite of excellent built-in programs, including email, photo and video software. Microsoft has stripped Windows 7 of such programs. Some PC makers have restored some or all of these in certain models, although I consider Apple’s counterparts better. Another huge plus: The Mac isn’t susceptible to the vast majority of viruses and spyware.

Cost: Prices on Windows PCs are creeping upward. You can buy a Windows PC for under $500, but many stores are pushing costlier models. And those $250 netbooks are much scarcer. Now, they typically run between $300 and $450. Apple has mostly stuck with its same, higher, prices, though it has boosted the specs on many models. The cheapest Mac desktop, the minimalist Mac mini, is $599. The cheapest Mac laptop, the new MacBook, is $999. The heart of Apple’s line starts at $1,199.

New category: Windows PC makers this season are pushing a category of laptop that is meant to fit between a netbook and a full-size laptop. It goes by a variety of confusing names, such as “ultrathin” or “thin and light,” though these models are often no thinner or lighter than some laptops of the past. They typically cost between $500 and $800, and often have 13-inch screens.

Memory: All Macs come with at least two gigabytes of memory, which is plenty for running Snow Leopard well. Mainstream Windows PCs have at least three gigabytes. But the cheapest Windows machines sometimes come with less. I recommend at least two gigabytes.

64-bit: PCs have long been based on something called a 32-bit architecture, but many models now use a 64-bit architecture, allowing properly written software to use more memory and run faster. If possible, buy a 64-bit computer, which is likely to dominate eventually, even though some software and add-on hardware may be incompatible at first.

Graphics: The new operating systems allow software makers to speed up some tasks by offloading them from the main processor onto the graphics chip. So, if possible, get a “discrete” graphics processor, which has its own memory. Otherwise, find a potent “integrated” graphics chip, which shares your main memory.

Processor: Mainstream Windows PCs sport fast, dual-core processors from Intel (INTC) or its rival, AMD (AMD). These pack the equivalent of two brains onto one chip. But many lower-price Windows PCs have slower processors, such as the Intel Atom, which are best suited for light duty. Apple models all use Intel’s dual-core processors, except for the highest-priced desktops, which come with quad-core chips.

Hard disks: A 250-gigabyte hard disk should be the minimum on most PCs. On a netbook, look for at least a 160-gigabyte disk. Solid-state disks are faster and use less battery power, but often add hundreds of dollars to the price tag.

Touch: Windows 7 lets you control the computer by touching the screen with your fingers, and some PC makers add their own touch-screen features. But this only works fully with newer types of touch screens, adding cost. Make sure any touch-screen model you buy has a full multitouch screen that supports all Windows 7 gestures. Apple uses the laptop touch pad, or its new mouse, as the multitouch, finger-gesture mechanism, instead of the screen.

As always, don’t buy more machine than you need.

Find all of Walt Mossberg’s columns and videos online, free, at the All Things Digital Web site, walt.allthingsd.com. Email him at mossberg@wsj.com.

Perhaps by "Devices Like the Pre," Verizon CEO Meant the iPhone?

John Paczkowski — Fri, 25 Sep 2009 09:00:27 +0000

Well, now we know why Verizon Wireless CEO Lowell McAdam said he expects to have “devices like the Pre” on his network by next year: The carrier reportedly doesn’t plan to offer the Pre at all.

Sources close to the company tell TheStreet.com that Verizon has reconsidered its plans to add Palm’s new smart phone to its lineup.

An interesting rumor, but clearly one that’s to be taken with a grain of salt, if not a salt lick entire.

Why? Well, Palm (PALM), which declined comment on the report, just yesterday reaffirmed its fiscal year 2010 outlook and its planned product and carrier launches. Which means it doesn’t foresee any material changes in its business in the near future. Presumably, Verizon (VZ) passing on the Pre would count as such a change.

Moreover, the same sources who told the TheStreet.com that Verizon was going to give Palm the high hat also said the company might take a more diplomatic approach to the situation and simply order just a few Pres with no intention of lending the device much marketing support.

So, as I said, to be taken with a grain of salt…

One thing’s certain, though: If the rumor does prove true, it’s a serious blow not just to Palm, but to Verizon customers pining for a decent handset as well. Unless, of course, Verizon has cut an iPhone deal with Apple (AAPL)–in which case it’s just lousy news for Palm.

UPDATE: Analysts who follow Palm are already lining up to debunk TheStreet.com’s report.

Perhaps by "Devices Like the Pre," Verizon CEO Meant the iPhone?

John Paczkowski — Fri, 25 Sep 2009 09:00:27 +0000

Sources close to the company tell TheStreet.com that Verizon has reconsidered its plans to add Palm’s new smart phone to its lineup.

An interesting rumor, but clearly one that’s to be taken with a grain of salt, if not a salt lick entire.

So, as I said, to be taken with a grain of salt…

UPDATE: Analysts who follow Palm are already lining up to debunk TheStreet.com’s report.

You Can Almost Hear the Shrieks of Outrage in Cupertino, Can't You?

John Paczkowski — Fri, 24 Jul 2009 01:15:59 +0000

“iTunes 8.2.1 disables devices falsely pretending to be iPods, including the Palm Pre. As we’ve said before, newer versions of Apple’s iTunes software may no longer provide syncing functionality with unsupported digital media players.”

– Apple, July 15, 2009

“Oh, and one more thing: Palm webOS 1.1 re-enables Palm media sync. That’s right–you once again can have seamless access to your music, photos and videos from the current version of iTunes (8.2.1).”

– Palm, July 23, 2009

Devices “falsely pretending to be iPods” can once again sync with iTunes, whether Apple (AAPL) likes it or not.

Palm (PALM) this evening released an update to the Pre’s webOS operating system that restores the iTunes syncing ability disabled by its Cupertino rival only last week.

“Palm has released webOS 1.1, which, along with offering more robust EAS support for business users, re-enables Palm media sync,” said company spokesperson Lynn Fox. “Palm believes that openness and interoperability offer better experiences for users by allowing them the freedom to use the content they own without interference across devices and services, so on behalf of consumers, we have notified the USB Implementers Forum of what we believe is improper use of the Vendor ID number by another member.”

The “oh, and one more thing” was a nice touch. But let’s face it, nothing can come of this but ugliness….

You Can Almost Hear the Shrieks of Outrage in Cupertino, Can't You?

John Paczkowski — Fri, 24 Jul 2009 01:15:59 +0000

“iTunes 8.2.1 disables devices falsely pretending to be iPods, including the Palm Pre. As we’ve said before, newer versions of Apple’s iTunes software may no longer provide syncing functionality with unsupported digital media players.”

– Apple, July 15, 2009

“Oh, and one more thing: Palm webOS 1.1 re-enables Palm media sync. That’s right–you once again can have seamless access to your music, photos and videos from the current version of iTunes (8.2.1).”

– Palm, July 23, 2009

Devices “falsely pretending to be iPods” can once again sync with iTunes, whether Apple (AAPL) likes it or not.

Palm (PALM) this evening released an update to the Pre’s webOS operating system that restores the iTunes syncing ability disabled by its Cupertino rival only last week.

The “oh, and one more thing” was a nice touch. But let’s face it, nothing can come of this but ugliness….

Apple "Fixes" Pre-iTunes Sync

John Paczkowski — Wed, 15 Jul 2009 19:25:19 +0000

Apple rolled out iTunes 8.2.1, a minor point release of its popular media software that provides “a number of important bug fixes and addresses an issue with verification of Apple devices.”

And devices masquerading as them.

Like the Palm (PALM) Pre. Because among this release’s “fixes” is one that prevents the Palm Pre from syncing with iTunes. Seems Apple (AAPL) has made good on the threat it made last month when the company warned that it does not support iTunes integration with third-party digital media players.

“Apple designs the hardware and software to provide seamless integration of the iPhone and iPod with iTunes, the iTunes Store, and tens of thousands of apps on the App Store,” the company said at the time. “Apple is aware that some third-parties claim that their digital media players are able to sync with Apple software. However, Apple does not provide support for, or test for compatibility with, non-Apple digital media players.”

And that is clearly the case with iTunes 8.2.1 which, as Apple spokesperson Nat Kerris explained to me, “disables devices falsely pretending to be iPods, including the Palm Pre. As we’ve said before, newer versions of Apple’s iTunes software may no longer provide syncing functionality with unsupported digital media players.”

And what does Palm think of all this? Is the Pre maker gearing up for a cat-and-mouse game with Cupertino? Who knows? At this point, the company is recommending that Pre users who want to preserve the syncing feature stick with an earlier version of iTunes. “Palm’s media sync works with iTunes 8.2. If Apple chooses to disable media sync in iTunes, it will be a direct blow to their users who will be deprived of a seamless synchronization experience,” said spokesperson Lynn Fox. “However, people will have options. They can stay with the iTunes version that works to sync their music on their Pre, they can transfer the music via USB, and there are other third-party applications we can consider.”

Below: Video of Elevation Partners Managing Director Roger McNamee and Palm Chairman and CEO Jon Rubinstein showing off the Pre at our D7 conference in late May.

[ See post to watch video ]

Apple "Fixes" Pre-iTunes Sync

John Paczkowski — Wed, 15 Jul 2009 19:25:19 +0000

Apple rolled out iTunes 8.2.1, a minor point release of its popular media software that provides “a number of important bug fixes and addresses an issue with verification of Apple devices.”

And devices masquerading as them.

Below: Video of Elevation Partners Managing Director Roger McNamee and Palm Chairman and CEO Jon Rubinstein showing off the Pre at our D7 conference in late May.

[ See post to watch video ]

Apple to Bring Wi-Fi-Free iPhone to China Three Months Early

John Paczkowski — Fri, 10 Jul 2009 21:35:23 +0000

Apple’s iPhone is coming to China, perhaps sooner than later. But when the handset finally arrives, it’s likely to lack an important feature: Wi-Fi.

Sources say Apple has formally requested a network access license to sell the iPhone in China, but the license is for a customized model in which Wi-Fi support has been disabled. If that proves true, then Apple (AAPL) has finally bowed to the demands of China’s Ministry of Industry and Information Technology, which has been insisting that the iPhone run only on cellular networks.

As Matt Mathison, an analyst at Wedge Partners, notes, that’s a hell of a concession for Apple, which had no desire to customize the iPhone for the mainland market. “Apple was hellbent on having the iPhone be wifi-enabled,” Mathison told BusinessWeek. “The Chinese government has been just as adamant that it not be.”

Mathison added that now that Apple has conceded to Beijing’s demands, the iPhone may launch in China as much as three months earlier than expected. “We now expect it to come before the Spring Festival in [January] 2010,” he said.

"Unsupported Third-Party Digital Media Players." Hmm, Wonder Who That Could Pre…

John Paczkowski — Wed, 17 Jun 2009 02:13:43 +0000

Palm’s Pre is the first non-Apple device to successfully link with iTunes in years. And it may be the last. On Tuesday, Apple issued an advisory warning that it does not support iTunes integration with third-party digital media players.

Apple is aware that some third-parties claim that their digital media players are able to sync with Apple software. However, Apple does not provide support for, or test for compatibility with, non-Apple digital media players and, because software changes over time, newer versions of Apple’s iTunes software may no longer provide syncing functionality with non-Apple digital media players.

Translation: The Pre won’t be syncing with iTunes for long.

Now, Palm isn’t explicitly named in the advisory, but it’s clear that this is a broad shot across its bow. And it’s not like we didn’t see it coming. Did anyone really think that Apple (AAPL) would permit the Pre to sync with iTunes by masquerading as an iPod?

Funny. Asked last month at D7 if Apple might take issue with the Pre’s iTunes integration, Palm investor Roger McNamee said, “I don’t think so. They are practically a monopolist and this is what consumers want. Consumers own all this media. I find it hard to believe that Apple will get bent out of shape.” (see video below)

Well, believe it. That said, Palm (PALM) seems unfazed by Apple’s implied threat. Reached for comment, the company said Cupertino will only harm consumers if it disables iTunes integration with the Pre. “Palm’s media sync works with the current version of iTunes,” Palm spokesperson Lynn Fox told me. “If Apple chooses to disable media sync in a future version of iTunes, it will be a direct blow to their users who will be deprived of a seamless synchronization experience. However, people will have options. They can stay with the iTunes version that works to sync their music on their Pre, they can transfer the music via USB, and there are other third-party applications we could consider.”

[ See post to watch video ]