I write a monthly policy update since I track digital policy issues. Here is the update for October
The announcement by commissioner Neelie Kroes on the EU’s much awaited Cloud strategy at the end of last month was very significant and we will be covering it in a separate article. Already the industry is beginning to take notice. It is significant announcement that could have some significant implications for Cloud providers over the next few years.
My view is: When the Internet started off, countries and others like the EU had no regulation point/ reference point. Hence, we saw a lot of benefits but some challenges as well. Now, the Cloud achieves the same thing as the Internet, but offers regulators a reference point. The EU recognizes this and uses it through this document for specific initiatives like the Single market. In other words, the Cloud is the technological means to achieve the single market. The Cloud has certain regulatory points and they can be used to better the lives of citizens and overcome challenges. We will see a new ‘cross border’ negotiation. At one level we will see dialogue at OECD etc between nations for the principles, but at the Cloud level, the dialogue will be more implementation based. Another way to look at it is, left to itself, the Internet will not solve certain problems (it was not designed to). The Cloud provides regulators that opportunity
Thus, two areas feature prominently in this month’s discussion – The Cloud and Mobile. Gigaom lists 7 reasons why Europe really matters to cloud computing (Clean, innovative energy, Eastern Europe’s talent pool, London’s financial center, CERN, OpenNebula, One-third of Twitter’s firehose and Individual rights)
So what else is happening in the world of policy and ‘under the radar trends’?
While we do not cover news, there have been some significant announcements like the launch of windows 8 and Surface - Hands-on, at last: Microsoft formally debuts Windows 8 and Surface
Gartner also made two significant announcements - Gartner: Top 10 strategic technology trends for 2013 (Mobile device battles, Consumerization , Mobile apps and HTML5, Personal cloud, The Internet of things, Hybrid IT and cloud computing, Strategic big data, Actionable analytics, Mainstream in-memory computing, Integrated ecosystems and Enterprise app stores) and IT Spending to Reach 3.7 Triiilllion Dollars by 2013, Gartner Predicts
And Facebook hits one billion users, not counting fake accounts and Facebook Brand Engagement Grows 896% Year-Over-Year
Mobile
Mobile has been in the news in more ways than one this month. The significance of mobile is now not disputed especially in terms of revenue and growth for web based companies and that trend is highlighted strongly this month.
- In anticipation of 4G, EE announces 4G tariff details. Orange and T-Mobile customers will pay between £36 and £56 for a two-year contract, depending on data usage
- Google has $8 billion in mobile revenue: is that good or bad? – but the breakdown is unclear.
- Mobile commerce and mobile payments are also significant this month. Carrier mobile payment play Isis goes live in Austin and Salt Lake City. Isis, the mobile payment joint venture between Verizon, AT&T and T-Mobile, goes live in Austin, Texas and Salt Lake City, Utah. Isis uses near field communication (NFC). An Isis compatible handset is needed as is a new SIM card to enable touch-and-go payments from their phone.
- On the enterprise front, SAP wants to be the Apple of enterprise mobility . SAP’s goal is to create a brand for itself in enterprise mobility like Apple did in consumer mobility. .
- But it is Mobile marketing that is driving the real interest in mobile with some big numbers. In Mobile Marketing by the Numbers: Too Big to Ignore. , 6 billion: The number of mobile phone subscriptions worldwide by the end of 2011 - 2 million: number of items EBay sellers are posting each week from their smartphones. Source: New York Times/ eBay’s earnings report - $1.2 Billion: Mobile advertising spending in the United States during the first half of 2012. Source: Interactive Advertising. Also, IAB’s report shows that mobile notched a 95% growth in mobile advertising revenue between the first half of 2011 and the first half of 2012.
- Mobile opens up new opportunities for Facebook and Google – (Out of home and local)
- These big numbers are the reason companies are web companies are scrambling to get a foothold on to mobile revenues. Facebook says that it is now getting 14% of its revenue from mobile. Facebook: We’re just getting started making money in mobile after introducing sponsored stories and rolling out mobile app install ads. Mobile gamers are increasingly focused on mobile devices with 23 percent of app gamers say that they only play on mobile devices. 23 percent of app gamers play only on mobile devices
- Some more numbers highlight the significance of mobile. One billion smart phones are coming. One billion smartphones? Well, yes, it’s coming (of course).
- Facebook is expected to top two billion users in three years from now. Google’s website index will reach a trillion webpages, about two decades from now. These numbers are significant because the current 959 million phones took 16 years but the next billion smart phones will take only three years.
- By 2016, mobile payments could be a trillion-dollar industry all its own and Google is using Google wallet for micropayments Google rebooting content micropayments initiative under Wallet
Innovation
- We have been tracking crowdfunding for a while and now Kickstarter crowdfunding platform gets official UK launch date . Another favourite, 3D printers is also getting momentum – 3D printers shape up to lead the next technology gold rush
- · Over in the emerging markets, a start-up called Husk Power Systems, has created micro power plants that burn agricultural waste to produce electricity. The company designs plants that are small — 25 KW to 100 KW in size — that can burn agricultural waste such as rice husks and produce electricity. Husk Power raises funds to bring power to rural India
- · Facebook has a ‘want’ button which analysts are not sure if it will work. Why the “Want” Button Doesn’t Work for Social Commerce
- Nexleaf Analytics wants to create the world’s cellphones into networked sensors - Turning The World’s Cell Phones Into A Network Of Sensors
- Brazil launches rival to iPad mini
- Major events like the Olympics and the jubilee show suggests that people are not only willing, but keen to connect with their community when given a reason or opportunity. How online networks can transform communities
Open Data and Big Data
- Big Data is now coming to the forefront and while Open Data and Big Data are not linked, they are connected – so we consider them together here. Open Data leads to some unique challenges as we find out.
- Francis Maude: Open data is uncomfortable, but we can’t turn back because Open data identifies waste and incompetence.
- Meanwhile, Mike Lynch, founder of Autonomy, one of the earliest people to have identified Big Data before it was even a phrase, says that Mike Lynch: Big data may be big but is it clever? He believes that the real frontier in big data is the type of information that the databases haven’t been able to understand – the vast 95% of information out there which is email, text, video and audio, because that’s where the real competitive value comes.
- Meanwhile, the UK government is in talks to use Hadoop Government in talks to use Hadoop for big data analytics but is in a dilemma because they want to save money but not cause a scandal.
- Meanwhile data is profitable for enterprises – by one estimate Google was making $14.70 per 1,000 searches in 2010, and possibly less in 2011 and Facebook a mere $1.68 How much do Google and Facebook profit from your data?
- In the UK, Directgov and Business Link have been replaced by a new digital service Gov.uk . This is a major new way of delivering services. Gov.uk: why this new government website really matters
Disruption
Many industries continue to be disrupted.
- Intel revenue drops on weak economy, poor sales partly attributed to PC makers are clearing off inventory of old Windows 7 PCs ahead of the launch of Microsoft’s new OS, Windows 8. But there are deeper undercurrents and it is claimed that we’re going from two separate architectures locked into a defined space to more architectures and many vendors in a free-for-all Take a peek at the secret upheaval in the chip world
- Social gaming is disrupted – and not in a positive sense - Investors Steering Dollars Away From Social Games Ever Since Zynga’s IPO
- Amazon Struggles to Crack Publishing - Amazon.com Inc. has had lots of success in book retailing. But cracking the publishing business hasn’t been as easy.
- A Khosla-backed big data energy start-up you should know about - While other companies make similar claims, Bidgely’s big selling point is that the company says it can take smart meter data, utility data or energy data from a Zigbee-based router in the home, and be able to tell which appliances are consuming what amount of power in a home in real time without having extra hardware or sensors on each plug or appliance.
- Google’s Self-Driving Cars Now Legal in California
Security
- HSBC restores websites after major DDoS assault
- National security threat or not? Huawei offers Australia unrestricted access to code - Huawei is offering unrestricted access to its code and hardware in an attempt to prove that it’s not a security threat and in the USA Huawei and ZTE Answer Home Security Committee’s ‘Unsafe’ Accusations
- “always-on, listening widely” - IBM Takes a Big Data Approach to Security
Media and newspapers
- Monetizing BitTorrent helps Australian newspaper keep down video costs Sydney Morning Herald publisher Fairfax was spooked by the escalating cost of licensing video for its new TV
- French media to Google: pay us for news searches - The French seem to have an appetite for regulating the Internet, and for going after Google in particular. A new proposed law would force Google to make payments when French media show up in news searches; but Google has responded, in a letter to French ministers, that it “cannot accept” such a solution and would simply remove French media sites from its searches.
- French anti-P2P agency’s funding to fall by 23 percent in 2013 More than a month after a French court convicted its first three-strikes offender under the anti-P2P regime known as Hadopi, the French government will be continuing the controversial program into 2013. And despite a reduced budget, Hadopi will also begin policing pirated video games, in addition to films and music.
- YouTube just added some additional recourse for users that feel like they’ve been wrongly targeted for the alleged upload of unlicensed content: The site added an appeals process to its Content ID program that defaults to the DMCA if the dispute isn’t resolved. YouTube revamps content ID, defaults to DMCA in case of unresolved disputes
- Circa wants to rethink the way we consume the news on a sub-atomic level wants to rethink the way that news is produced as well — and that meant trying to boil down the idea of a news story into its component pieces.
- Amazon reminds us that we are merely renting eBooks and we don’t own them. A healthy reminder from Amazon: You don’t buy ebooks, you rent them when a woman’s account was blocked and all of her books removed
- Oyster, a fledgling mobile service for Spotify-style on-demand books, has raised $3 million in funding led by Peter Thiel’s Founders Fund - Oyster: A Spotify For Books
- The Association of American Publishers has settled a long-running copyright infringement case with Google Inc., but the issue of whether Google had the right to digitally copy copyrighted books is still being waged in court by the Authors Guild. Google Settles Copyright Case With Publishers
Miscellaneous
- Pirate Party falling out of favour across Germany - According to a new article in Germany’s main news magazine, Der Spiegel, the German Pirate Party has been rapidly losing support across the country. The organization can thank mismanagement, disorganization, and poor public relations.
- New HTC phone to be sold without charger
- Trolls filed 40% of patent infringement lawsuits in 2011 Trolls have long been the standard villain in patent debates. Often little more than an empty office in East Texas, patent trolls produce no useful products themselves but earn millions of dollars by threatening patent lawsuits against productive companies. There is plenty of anecdotal evidence that patent trolls are a serious and growing problem, but until recently there has been little hard data to back up the evidence.
Internet governance
- The debate continues who is responsible for internet content
- A regional judge in Brazil orders the arrest of Brazil Google President after the company failed to take down videos. Google is appealing, but the argument of the internet being a space where one can express themselves “freely” continues. http://www.bbc.co.uk/news/world-latin-america-19724403
- A discussion on ’Sender-party-pays’ as proposed by the ETNO (Europeans Telecommunication Network Operators’ Association) which has been appearing in a number of documents Are you for ‘sender-party-pays’ for Internet traffic principle?
- The guardian has a balanced discussion on Who controls the internet? Covering ETNO, Sender pays, Icann, cybersecurity, challenging western dominance etc
- Many web services are heavily dependent on Amazon cloud and a crash Amazon Web Services have taken down a variety of services Amazon’s Cloud Is Down Again, Taking Heroku and GitHub With It
- Business-software maker SAP AG defied the dismal economic climate to deliver a 16% rise in revenue, and changed the company structure to put its Web-based, or “cloud,” business in focus - SAP Sales Rise, Cloud in Focus
Cloud
- Many web services are heavily dependent on Amazon cloud and a crash Amazon Web Services have taken down a variety of services Amazon’s Cloud Is Down Again, Taking Heroku and GitHub With It
- Business-software maker SAP AG defied the dismal economic climate to deliver a 16% rise in revenue, and changed the company structure to put its Web-based, or “cloud,” business in focus - SAP Sales Rise, Cloud in Focus
Till November!
Kind rgds
Ajit
Image source: Halloween – wikipedia



