Rich thin client - the future of our PC ?

Treehugger wrote this morning about a small device, the size of a pack of cigarettes. It is a kind-of very small PC(it includes some CPU, USB ports, DVI output...) and has to be plugged in an Ethernet LAN.

It is LAN powered only - no need of other energy source - it can be plugged anywhere in your network. USB ports allow to plug what you want on it: keyboard, usb key, mouse...

In a server environment, those devices will allow people to execute distant apps, via thin client installed (like Citrix or Microsoft Internet Explorer).

This means that to execute simple apps, you no longer need to deploy and maintain expensive hardware. Of course, there is no hard drive, but you can save your work on the network or plug an usb key to save your data.

Could be very useful in schools, libraries, municipalities, shops... where you only have to access to remote info or to remote applications.

The french Minitel is back!

Jack-PC
Minitel

Smart use of a search engine feature

In their attempts to differentiate themselves and reduce (if possible), the gap with Google, Microsoft, Yahoo! and others are multiplying Web marketing campaigns.

Today, Microsoft emailed to some of its livemail (former hotmail) French users http://www.image-addict.fr/

A classic Internet game, allowing users to participate to a contest (andwin an Xbox360 maybe). The principle is simple: to guess a word in a limited time (30sec here). But guess what are the hints: 20 images.

This is smart.

The first clever idea is to use sets of 20 pictures to guess a word. It is simple to understand and quite funny considered the time limit. Same neurologic principles are used in some “train your brain” games.

The second clever idea is the use of live.com’s image search. Most users admit that Microsoft’s search service main spectacular feature, is its image rendering engine – a clear difference with Google search image rendering for instance.

Considering the importance of image search, this marketing campaign really combines
- funny and quite addictive principle (depending on the number of words to guess)
- focus on a major market trend (importance of image)
- clear illustration of a differentiating factor (MS's image rendering)

http://www.live.com
http://www.image-addict.fr

The problem with Microsoft and Google revenue

The two giants are dominating their historical markets. Microsoft Windows and Office dominate the operating system and desktop applications market, while Google dominates the searches market.

1)Let’s have a look to their revenue
Microsoft's revenue split between client software (Windows), server software (SQL, .Net), business apps (Office for 90% of the amount), online (Live) and entertainment (Xbox).
But 2/3 of Microsoft’s revenue comes from Windows and Office.

As for Google’s revenue, it is very simple: nearly all of Google's revenue comes from advertisements that appear on search result pages and on partner sites

2) What is the problem?
Core revenue of both companies could be reduced by successful community initiatives:
- open source operating system (Linux),
- open source (Open Office) or rich web based desktop application (Ajaxwrite),
- search engines based on Wikis (Wikiasari)

Each point of market share taken by community initiatives, will weaken the two giants and reduce their revenue.

3) What does this tell us?
The traditional barriers to entry in the software industry has dramatically changed. With the expansion of communities … it is possible for focused networks to challenge some established companies. Here is the paradox.

Although it is difficult for a private help company to challenge Microsoft or Google (to challenge them would cost millions of dollars), it is possible for communities, where passionate people work for FREE (or for glory), to challenge established companies on some markets. Microsoft spent billions and paid 10 000 people to develop Microsoft Vista. A well managed community (Linux) is doing (almost) the same. For free.

Take it as granted: communities can challenge established companies, it is just a question of time. Especially if communities develop better MS like or Google like apps.

Nevertheless, they will only challenge those companies on some segments.

And here lies the interesting part. Communities cannot challenge established companies on:
- hardware (Xbox),
- business solutions (MS Dynamics ERP),
- localization service (Microsoft Local or Google earth),
- hosting terra data (Gdrive)
- …

So I’m betting that the two giants will always re-organize themselves and shift their business if needed.

Open Office the open source desktop application
Linux the open source operating system
Wikia the open search project
Ajaxwrite the ajax desktop application