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RIM has some new, unwelcome, partners

Mar 2011/in , /by

It’s interesting to look at the smartphone choice our users have made across different markets. We conducted a mobile survey a couple of weeks ago and found that a BlackBerry is still a necessity in the corporate environment, but often not enough. However, our survey results are contrary to the latest consumer survey that shows Android surpassing Apple iOS and the Blackberry platform in market share.

While we are developing the FirstRain mobile application, our survey showed that among the users surveyed they have an average of 1.2 devices each – and when we broke it down by device to find that 14% of the BlackBerry users were also using an additional device. We suspect this is because while BlackBerry may be mandated by many firms it simply does not have the app support and so is not as useful and fun outside of the standard corporate apps like email and calendars.

Corporate Mobile Usage

FirstRain Corporate Survey February 2011

What does this mean for RIM? Research in Motion first introduced the BlackBerry in 1999, and 12 years ago the BlackBerry was able to hold its own— a strong operating system, stable, reliable—all the works. With the highly anticipated BlackBerry 6 OS debuting with the Torch, BlackBerry users can keep up with the competition—right?

The BlackBerry Torch does have all new features—upgraded camera, proper touch screen, security features, built-in GPS, universal search, and perhaps most favored by IT — the administrative control available. But is this enough to keep up with personal and work demands?

We found that for our users, the BlackBerry as a smart device is not cutting it. The app development has been slow for the BlackBerry OS, and the functionality of the apps are not up to par. If 14% (and growing) of our users need a second device, usually an iPad or iPhone, to maintain the quick pace of the workday, the Torch will not salvage RIM as a business-friendly product.

If 2011 is the year of the enterprise app, then this may be the beginning of the end for RIM. The BlackBerry has not made substantial enough strides to maintain functionality with all of the “super apps.” Salesforce already has 20,000 companies that have embraced their new Chatter mobile app, and it is no surprise that more than 50% of the workforce is using mobile devices as their new desktop. With more companies shifting towards app development, including FirstRain, maybe there is a reason that so many of our users who utilized BlackBerry’s also needed a supplemental device.

It is also quite hard for the BlackBerry OS to compete against the prominently featured “fun” iOS system.  The iPhone is becoming so deeply embedded in our business culture, that it is seen as a necessity and the new iPad 2 is going to continue Apple’s overwhelmingly dominant control of the tablet market. Businesses like Juniper and Good.com are thriving with more consumers bringing their mobile devices into work (that now need additional security). In October, Good Technology released their first quarterly data report— illustrating how the rapid adoption of iOS is revolutionizing enterprise mobility and how they are benefiting from the move away from the Blackberry.

Whether this means more good news for Apple’s iOS and Google’s Android, or a meek future for RIM, one can’t be sure—but it is clear modern users will now demand competitive apps on their primary handheld device.

Bond and Competition

Apple vs. Google—Frienemies?

Feb 2011/in /by

Sometimes you have to wonder, are Google and Apple friends or enemies? They compete to move an industry left behind, forward. Is that really competition or is it a concentrated, coordinated effort to bump everyone else out?

Apple and Google are now in full competition for the digital newsstand. First Apple has a new subscription model – and yesterday Google introduced the “One Pass,” a similar payment system for digital content. With both of these competing services, will just one come out on top?  Both are a big deal to the publishers and while the initial changes are small the long-term effect is disruptive.

Apple has now made electronic magazine and newspaper subscriptions part of the iTunes app store. Their newsstand will be similar to the iBook store, in hopes of attracting people deeper into the digital world.  The newsstand is already selling the digital versions of various major magazines and newspapers, and Apple has readied changes in iTunes so that I (the end customer) am able to use the app store billing system, all on my one credit card.

Google’s “One Pass” does the same thing for Android devices and beyond (accessible via web browsers). They will implement the familiar “Google Checkout” online payment service to users who wish to pay for content. One Pass is in a race with Apple’s newsstand to compete for users who buy digital media through mobile devices. An additional perk that Google offers however is more flexibility in payment options. As long as the user is signed into their Google account, they can purchase publications from any other participating website (whereas Apple’s has to be through iTunes).

Clearly Google is building flexibility in as a differentiator to Apple.  Apple is putting in draconian control and a whopping 30% revenue share. Any news service currently offering an app with a subscription must now either offer the app within the Apple store, or allow Apple to offer the same app for the same price or less.

In contrast, Google is allowing purchase of subscriptions, articles, or even day passes at a much more competitive revenue split of 10%.

With Apple at 30% and Google at 10%, are they together trying to become a monopoly in the digital newsstand industry? Will it be worth it to publishers to accept this reduction in revenue just to associate with the “cool” Apple brand – or will they be compelled to access the explosive number of Apple device users?  Either way, whoever ends up dominating the digital newsstand, this will revolutionize the news industry.

If done right, these two “frienemies” will drive many more readers to the new digital era of media. And these new digital copies of magazines and newspapers will be anything but ordinary– they are a great outlet for a new generation of creativity of media creation. Can’t wait!

Here is a survey by Josh Gordon, comparing readers’ preferences on digital magazines, versus traditional websites.

Tablet and Finance and Data

Financial Firms Fastest Adopters of iPad

Jan 2011/in /by

Interesting report from Good Technology was written up by Securities Technology Monitor today on the different rates of adoption of the iPad between different segments – and not surprisingly the financial services industry is way ahead.

Typically we have seen financial services be more conservative among our customers – especially when it comes to security and technology on the desktop (IE6 anyone? Ugh) but when it comes to facing the client the financial services industry has always been nimble at creating the most attractive image. Having your financial advisor, or your sales person, show up with an iPad has sex appeal and raises the client’s confidence that the advisor is on the leading edge. And the visual appeal of the iPad’s crisp, clear screen would make almost any performance charts just look better.

Good’s fourth quarter report shows that in the battle between iOS and Android tablets the iPad is taking share – activations climbed from 60% to 68%. Blackberry is not included in the study since Good’s value to their customer is adding Blackberry-like security to non-Blackberry devices. It will be interesting to see what changes, if anything, once RIMM has a competitive tablet.

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