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Software ecosystem

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Software ecosystem

  1. 1. Software Ecosystem  MICROSOFT  APPLE  GOOGLE  AMAZON
  2. 2. 1. Introduction 1.1 General introduction Traditionally, a software ecosystem refers to a collection of software products that have some given degree of symbiotic relationships (Hansen). Fig1: A conceptual model of a keystone-centric software ecosystem (Anon). Software ecosystems (SECO) refer to the set of businesses and their interrelationships in a common software product or service market. A Software Ecosystem consists of the set of software solutions that enable, support and automate the activities and transactions by the actors in the associated social or business ecosystem and the organizations that provide these solutions. This is an emergent field inspired in concepts from and business and biological ecosystems (J.V. Joshua, D.O. Alao, S.O. Okolie, O. Awodele, 2013). Along with SECOs introduce many new research challenges on both a technical and a business level (Slinger Jansen, Anthony Finkelstein, Sjaak Brinkkemper). Once upon a time, tech behemoths such as Microsoft and Apple battled to persuade businesses and consumers to purchase their computers, mobile devices or software packages. Those days seem so quaint now. Today, the battle is on a much larger scale. It is a war between vast ecosystems made up of hardware, software and online services, not just individual pieces of hardware and software. Purchase an iPhone, for example, and you're buying into the entire Apple ecosystem, including operating systems, apps, add-ons, music, movies, books and more (Michael deAgonia, Preston Gralla, JR Raphael, 2013). 1.2 History Company Apple Microsoft Google Amazon
  3. 3. Events Established 1st April 1976 4th April 1975 15th Sep 1998 1995 Founders Steven Wozniak and Steven Jobs (apple) Bill Gates and Paul Allen(Hamza Qureshi, 2012) Larry Page and Sergey Brin as “googol” (google) Jeff Bezos (David Ramirez, 2008) Current CEO Tim Cook Steve Ballmer Larry Page Jeff Bezos Financial info AAPL MSFT GOOG AMZN HQ Cupertino, CA Redmond, WA Mountain View, CA Seattle, WA Events Years Focused on software OS, apps, laptops, Tablets, PCs 1977: Apple II Introduced 1986: Desktop Publishing Takes Off 1989: released first Macintosh Portable 1991: First PowerBooks Ship 1993: Newton MessagePad Ships 1998: iMac Introduced 1999: AirPort Debuts on iBook (apple). 2000: PowerMac Cube launches 2001: The iPod launches 2002: iMac G4 launches, Apple iBook 2003: iTunes Music Store Opens 1981: Introuduced Microsoft 16-bit operating system MS Dos 1.0. 1984: introduced mac versions of BASIC & Word 1985: introduced next-generation operating system called OS/2 1993: introduced 32- bit version operating system 1995: introduced windows 95 1998: introduced windows 98 1999: introduced Encarta Africana (first complete encyclopedia) 1996: search engine called BackRub 1998: Google Inc. 2001: launches google images 2003: acquire Pyra Labs, the creators of Blogger 2004: social network Orkut, lauch gmail, acquire Picasa, cquire Keyhole (later become Google Earth) 2005: Google Mobile Web Search, Google Earth, launch Google Talk 2006: Google Finance launches, acquisition of YouTube 2007: announce Android 2008: T-Mobile announces the G1, 1988: Begins Selling Books 1996: Launches Amazon.com 1998: Acquires Internet Movie Database 1999: Opens Music Store 2000: Begins Selling Books, Music, Video & DVD 2001: Opens Software & Video Games Store 2005: Launches Search Inside!™ Opens Consumer Electronics Store
  4. 4. 2004: iMac G5 launches 2005: The Video iPod and iPod Nano launch 2006: The iMac Core Duo launches 2007:iPhone and Apple TV 2008: Apple launches the App store 2009: Apple releases the iPhone 3GS. 2010: The iPad launches 2010: Apple releases the 4th generation iPhone, with video calling, multitasking and a new uninsulated stainless steel design (Matt Berger, 2011) 2000: windows 2000 2003: revealed its office XP, Xbox and server 2003 2005: Xbox 360 2007: new OS Windows Vista, Ms Office 2007 2008: windows server 2008, SQL server 2008 and Visual Studios 2008 2009: Bing (online search engine MSN), windows 2007 2010: MS Office 2010, Xbox 360 2011: Office 365, skype 2012: windows 8 (109 languages), social network Yammer (Hamza Qureshi, 2012) Google Chrome, Google Mobile App for iPhone 2009: Twitter, Google Chrome OS 2010: Nexus One, Google TV, acquire AdMob, a mobile display advertising company. 2011: Google Wallet, Chromebooks, offline access to Gmail, Calendar and Docs for people using Chrome, Android 4.0, Google+ Pages 2012: Google Play, unveiled Project Glass, acquire Motorola Mobility, announce Google Now, first Nexus 7 2013: Chromebook Pixel, Google Now for iPhone and iPad, video doodle, updated Google Maps app for smartphones and tablets, Chromecast (google company, N.d) 2010:Launches Amazon MP3- App for Android, Announces Amazon App for iPad 2011: Launches Kindle, Kindle Store & Kindle Direct Publishing (KDP) 2012: Launches Cloud Player and Cloud Drive 2013: Launches Cloud Player for iPad (amazon, N.d)
  5. 5. 2. Background Each of the four companies we're covering -Amazon, Apple, Google and Microsoft has a different history. So their ecosystems have developed in vastly different ways. Microsoft and Apple, for example, were born in the days when tech companies rose and fell based on the hardware and software they sold, while Google is a child of the Internet. Amazon, on the other hand, started with a vision of an integrated ecosystem almost from its founding -- in a New York Times interview from 2005, CEO Jeffrey Bezos is quoted as saying that it is "...very important to get into new categories beyond books reasonably quickly" (Michael deAgonia, Preston Gralla, JR Raphael, 2013). 2.1 Amazon Fig 9: amazon ecosystem (Joe McCann, 2012). With owning content distribution, credit card numbers, devices and powering nearly half of the internet with their Web Services offering, Amazon has the ability to ultimately disrupt the competitive ecosystem space. Amazon has been incredibly successful, capturing 50% of the Android tablet market share. But with additions like Amazon Drive, Amazon Cloud Player and their Instant Video offering, Amazon is quietly encroaching into the digital omnivore's multi- channel lifestyle typically dominated by Apple, Google and Microsoft. Amazon has consistently added new facets to AWS(amazon web services) as it broadens the technology away from the commodified storage and compute options, and into more complex areas such as the SSD-backed DynamoDB NoSQL database (Staff, 2012). The AWS launched in 2002 and the portfolio of services expanded over time. The Amazon Elastic Cloud EC2 was built in 2004, which is central to the whole AWS infrastructure. Amazon itself is one of the clients for the EC2 platform
  6. 6. (Rammohan Narendula, 2012). Moreover, with AWS(amazon web services, cloud computing: compute, storage, database), they have the ability to scale any sort of cloud-based offering for any of their services going forward. This is a real threat to Google, Apple and Microsoft. 2.2 Apple Fig 6: apple ecosystem (Joe McCann, 2012). Apple is the obvious example of a company feeding the digital omnivore through their ecosystem. They have hardware, software, millions of credit card numbers on file, software distribution (App Store), content distribution (App Store), computers, phones, tablets, televisions (Apple TV) and a cloud-based syncing mechanism (iCloud) to keep everything up to date and in sync with each other. In order to beat market Apple bought Personal assistant app “Cue” For Over $40M To Compete With Google Now (ALEXIA TSOTSIS). `1In addition to all of this they have retail outlets to sell and promote their wares boasting record-breaking numbers with their stores earning an astounding $4,000/square foot (2nd place is Tiffany with $2,700/square foot) (Joe McCann, 2012). Apple has the ability for users to access content on multiple devices, in an environment for which they are familiar and feel safe and secure using.
  7. 7. 2.3 Google Fig 7: google ecosystem (Joe McCann, 2012). Google, not directly making loads of money on Android, has invested heavily in not only Android, but in satiating the digital omnivore's appetite of a multi-device lifestyle. Sure Android is running on smartphones and tablets, but Google has integrated the likes of email (Gmail now has 425MM users), instant messaging, SMS and telephony (Google Voice à la Grand Central acquistion), social networking (Google Plus which in less than one year has amassed 250MM users, of which 60% are "active") ) (Joe McCann, 2012), cloud storage and sync (Google Drive), software and content distribution (Google Play), computers (Chrome OS notebooks - not all that successful, but still an attempt at growing the ecosystem), televisions (Logitech, Vizo, and other Google TV devices) and even their own cross-device web browser (Google Chrome) to support the multi-channel experience. This is the model for success going forward and is what is pitting Apple's ecosystem against Google's
  8. 8. 2.4 Microsoft Fig 8: microsoft ecosystem (Joe McCann, 2012). For years Microsoft has been dominating the PC space, yet hasn't been able to grab a solid foothold in the mobile and casual computing sector. Windows Phone has been a prototype of sorts at best and not until just recently have they even had a real contender in the tablet space; their Surface tablet is looking to change that.However, Microsoft has been investing in their ecosystem for quite some time. Inorder to compete it seems looking Looking To Put Windows Phone On Android Devices, Starting With HTC (DARRELL ETHERINGTON). Hotmail, Xbox, Kinect, Azure, Exchane, So.cl (an attempt at a consumer social network), Zune (even though it was a failure, it supported the ecosystem model), Skype, SkyDrive and now with additional hardware such as the Surface tablet, the recent puchase of an enterprise social network (Yammer), Microsoft is slowly building their ecosystem back up. In my opinion, the success or failure of the enterprise adoption of Windows 8 (consumers always adopt much more quickly), will determine whether they are truly a technological contender or simply the third wheel. 3. Analysis Beyond Apple and Microsoft, there are new players in SECO game. Now it's not just but also Amazon and Google and a host of specialists. Google and Amazon aren't hardware heavy hitters (although Google is indirectly involved in hardware through its Android mobile OS), while
  9. 9. Apple and Microsoft are relatively weaker in shopping. Microsoft is strong in gaming, while Amazon rules when it comes to books. But one way or another, they're all locked in a death match. Microsoft uses the cloud for online entertainment and the mighty Microsoft Office, and Apple has iCloud for its Macs and iOS machines. The most recent survey by Strategy Analytics reports that 27% of US consumers have used iCloud, 17% Dropbox, 25% Amazon Cloud Drive and 10% Google Drive (Gary Marshall). Apple's foray into the consumer Cloud follows similar efforts by Google with GMail, Google Docs, Picasa Web Albums, Google Books and Google Music, the last of of which went into private beta only recently. The pending release of iCloud as part of iOS 5 and Mac OS X Lion also follows the recent introduction of Amazon's Cloud Player and Cloud Drive, which supplants their streaming video service, and multi-platform Kindle bookstore as well as their existing and extremely comprehensive Amazon Web Services (AWS) (Jason Perlow, 2011). 3.1 Comparison: Features and Services Companies Features Apple Amazon Google Microsoft Phone iPhone Nexus OEMs (original equipment manufacturer) Tablet iPad Kindle Fire HD Xoom Nexus 7 Surface Computer Mac Chrome* OEMs Books iBooks Kindle Play Books B&N Movies iTunes Amazon Play Movies Music iTunes Amazon Play Music Xbox Music Browser safari Silk Chrome IE OS MacOS ChromeOS Windows Mobile OS Ios Amazon Android Android Windows Phone Office Apps iWork Google Apps Office Search engine (google) Bing Google Bing
  10. 10. Cloud iCloud AWS (Amazon Web Services) Google Azure Table: The state of play as of sep 2012 (David Cardinal, 2012) 3.2 Comparison: Market value, valuation and financial statistics The $658 billion valuation that Wall Street places on AAPL is more than the total of $117 billion for AMZN, $232 billion for GOOG, and $258 billion for MSFT (David Cardinal, 2012). Fig: market value evaluation (David Cardinal, 2012) Fig: Sequential quarter comparison of financials (visualign, 2012).
  11. 11. Fig: market capitalization (Clint Boulton , 2011). 3.3 Tablet wars: Amazon and Google, which earlier analysis showed offers the Nexus 7 tablet on a similarly low- margin basis, aim to really profit from tablets only once they are in owners’ hands via their services businesses. Google is pursuing a similar strategy with its Nexus tablets, although it seeks to profit by driving traffic to its search engine rather than by selling digital or physical goods. Apple and Microsoft are meanwhile seeking to make good money on the devices themselves. Microsoft, with its first own-brand tablet, Surface, is pursuing a path taken by Apple, seeking a large profit on the device itself and encouraging owners to use its "ecosystem" of services. With the iPad mini, Apple is sticking to the premium-brand strategy it has always used for its media tablet and smartphone products (Christopher Williams, 2012). 3.4 Product comparison Amazon Kindle Fire HD 8.9” Apple’s new iPad Microsoft Surface with Windows RT Google Nexus 7 Processor 1.5 GHz dual- core processor 1 GHz dual-core processor 1.4 GHz quad- core processor 1.4 GHz quad- core processor 3G/4G support Yes (in some models) Yes (in some models) Unknown Unknown Internal storage 16/32GB 16/32/64GB 32/64GB 8/16GB OS Custom version of Android 4.0 iOS 5 Windows RT Android 4.1 Table: (NDTV Correspondent, 2012) & (NDTV Correspondent, 2012)
  12. 12. 3.4 Comparing cloud services: 3.4.1 Google: cloud computer After the creation of Chromebook, Google is taking a "100% web" approach to everything it does. Google has spent a lot of time refining its many cloud services, and there have been a few changes - so for example Google Docs has been rolled into the wider Google Drive service. Google Drive is designed to do two things: create and share documents, and share files. Files you store on Drive can be accessed from phones and tablets with the Google Drive apps, and there are also desktop apps for PC and Mac that can automatically synchronise files between your computer and your Drive. Play Google Play, entertainment arm of Google's cloud offerings, and it has five types of content: Android apps, movies and TV programmes, music, books and magazines (Gary Marshall, N.d). 3.4.2 Microsoft: cloud computing Microsoft's been doing the cloud computing thing for decades: Hotmail (later Windows Live Hotmail, and now Outlook.com) was one of the first web-based email services and Microsoft bought it back in 1997 when nobody really knew what cloud computing was. Its Azure platform powers many big businesses, and Xbox Live brought all kinds of entertainment to the Xbox. Like Google, Microsoft has been revising its various cloud offerings, so for example its Live Mesh file syncing service was retired earlier this year. File synchronization is now handled by the soon-to-be-renamed SkyDrive. SkyDrive is rather similar to Google Drive: you can use it to share and synchronize files between different devices, and you can create Word documents, Excel workbooks, PowerPoint presentations, OneNote notebooks and Excel surveys inside your browser. When it comes to entertainment in the cloud, Microsoft's track record has been patchy: its MSN Music was relatively unsuccessful rival to Apple's iTunes and was shut down in 2006, and its next attempt was tied to the supposed iPod-killing Zune music player. Xbox Music works across multiple platforms: the web, Windows 8 and Windows RT, Windows Phone 8 and the Xbox 360. It also gives a companion service, Xbox Video, which offers movie rentals and purchases and which once again works on PCs and tablets (Windows 8 and Windows RT only) as well as on the Xbox (Gary Marshall, N.d).
  13. 13. 3.4.3 Amazon cloud services Amazon isn't just the world's biggest retailer. It's one of the world's biggest cloud services providers, and its servers power some of the internet's favourite services. In 2011 it decided to join the consumer cloud party too, and since then it's quietly added some very useful cloud-based features. The most recent example is Amazon's AutoRip, which automatically adds MP3 versions of CD or vinyl records you've bought to your cloud music player - and which checks through your purchase history to AutoRip CDs and records you've bought in the past. cloud player Cloud Player, Amazon's online music streamer provides access via the web or via iOS and Android apps. The free version is limited to 250 songs, with the option to have up to 250,000 songs for £21.99 per year. Amazon also has an App Store for Android - not just the customized Android that powers its Kindle Fire devices, but ordinary Android too. (Gary Marshall, N.d) 3.4.3 Apple service iCloud which would provide easy access to your documents, important information and iTunes library, and which Apple no doubt hoped would erase the memory of its former cloud service, MobileMe. The media side of iCloud works very well indeed across Mac and iOS devices: you can buy a song on iTunes on the desktop and it'll magically appear on your iPhone or iPad, and if you've bought a movie or TV show on one device your Apple TV knows about it and knows where you left off. You can store your entire iTunes library in the cloud and stream it too, but unlike rivals such as Google Play Music the Apple version isn't free: iTunes Match, as it's called, is £21.99 per year. iCloud will sync your calendar, contacts and email between devices, can be used to save web pages for later reading and, if your chosen apps support it, it can be used to sync files too. Why apple cloud iCloud is about to be revamped: when iOS 7 ships later this year there will be new photo sharing features enabling friends and family to add content or comments to your photo and video streams, and iCloud Keychain will create passwords and securely store credit card and account logins for you. There will also be new, web-based versions of Apple's iWork apps, which are already available to iCloud users as public betas (Gary Marshall, N.d). 3.4.4 Comparing cloud storage features: Cloud storage Free storage space Upgrading cost
  14. 14. Company Google 15GB of total storage $4.99 per month for 100GB; and $9.99 per month for 200GB. Microsoft 7GB of storage £16 per year for 50GB and £32 per year for 100GB Amazon 5GB of free storage and comes with desktop (PC and Mac), iOS and Android apps 20GB (£6 per year) to 1,000GB (£320 per year) Apple 5GB of storage (purchases don't count towards that total, and neither do the photos you share via iCloud's Photo Stream service) $20 per year for 10GB, $40 for 20GB and $100 per year for 50GB 3.5 Comparison core product line: Fig: strength by core product line (Clint Boulton, 2012).
  15. 15. 3.6 World Population with access to ecosystem services Fig: media categories - music, movies and books (Daniel P., 2012) 4. Conclusion a. Critical evaluation Google wants everybody to use its cloud offerings so it can sell ads, but Apple wants to use its cloud offerings to sell hardware. As a result its focus is much narrower, and it's not particularly interested in doing great things on non-Apple devices. Google gave developers at I/O a Chromebook Pixel, a high-end Chrome OS laptop that should set off alarm bells at Apple. Google also launched Google Play game services, for Android, iOS and the Web. Apple's focus on its own platforms will hurt it here: Given a choice between integrating the Apple-only Game Center and the cross-platform Google Play services, developers are likely to lean Google if they're not exclusively committed to iOS. Apple looked outward with iTunes by creating a Windows version; it should have launched an Android version of Game Center instead of burying its head in the sand . Despite the absence of a significant Android update, Microsoft isn't any closer to changing the balance of power in the smartphone market. Apple at least is doing well here, though Android's relentless rise has to be keeping Apple executives awake. Google also beat Apple to the punch by launching its streaming music service, the inelegantly named Google Play Music All Access, before Apple could launch one of its own. here was a lot of attention paid to Google+ at Google I/O, particularly to improvements made to Google+ Photos. Though Facebook remains the leader in social networking, Google's vision of social computing is no longer laughable, because Google has the power to force participation and
  16. 16. because some services, like Hangouts, are really good. Google+ is unavoidable, for better or worse. But Apple and Microsoft have nothing comparable, outside of a few strong stand-alone services like iMessage and Skype (Thomas Claburn, 2013). Part of the problem is Apple and Microsoft spends far too much energy keeping Google out instead of deploying services that are better than Google's. Apple's iCloud also suffers in comparison to Google's cloud offerings, as has been documented in various reports. Microsoft, at least, has shown it can compete in the cloud, even if it's too reliant on Office as a way to rope customers in. Meanwhile, Google is pushing ahead with its Cloud Platform to compete with Amazon Web Services. The company opened Google Compute Engine to the public, added PHP support to App Engine and introduced Cloud Data store. Mobile phones and tablets are there already, but desktops and laptops are mainly missing touchscreen and the Xbox is still the same old one. Big launch for Microsoft ecosystem will happen earliest in 2015 with Windows 9, when they will announce a new Xbox and devices will have better support for the operations needed (touch screen, DLNA, Wi-Fi, Bluetooth 3.0, NFC) b. Future of software ecosystem The future of computing is clearly cloud-y, and the giants of tech haven't been slow to notice. Google was an early adopter, of course, but Amazon was quick to spot the potential too - and today its cloud services power everything from Amazon's own music and movie streaming to banks' online offerings (Gary Marshall). Companies Factor Apple Amazon Google Microsoft Future Software Ecosystem Mac OS X, dubbed "Mavericks," Apple iWatch, an Apple HDTV set, 6-inch Apple phablet (Jason Hiner, 2013). Retina MacBook Pro (13-inch version as well), iOS 6 (Devln Coldewey, 2012) 3D eye-tracking smartphone and free off-contract smartphone (almost certainly run Amazon’s modified version of Android, Fire OS)(Sebastian Anthony, 2013). 7-inch Kindle Fire (Jason Hiner, 2013). Nexus 5 (next version of Nexus 4) with Android 4.4 KitKat (Jason Hiner, 2013). pen-capable Galaxy Note, Surface RT(likely renamed surface 2) (Devln Coldewey, 2012)
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