Android's new ally against the iPhone: Ubuntu

(Credit: Canonical)

Last year was a long time ago for Android.

That was when Google's mobile platform was stealing market share from all the other smartphone platforms -- winning even against the iPhone -- and beating a path toward market dominance.

But Android is now facing a renewed challenge from its archrival. Android's vulnerability against the iPhone can be summed up by looking at the two biggest wireless carriers in the U.S. -- AT&T and Verizon. At AT&T, the iPhone represented 78% of all smartphone sales in the first three months of 2012. At Verizon, which had been an Android stronghold since the launch of the original Motorola Droid in October 2009, the iPhone has picked up over 50 percent of all smartphone sales for each of the past two quarters (Q4 2011 and Q1 2012).

How'd that happen? Android won over more users than Apple during 2010 and 2011 because Android devices were available on more carriers and there were Android phones that cost a lot less than the $200 base model of the iPhone. But now the iPhone has spread to virtually all of the major carriers and there are now iPhone models available for under $100.

Android badly needs a new advantage against the iPhone in the next stage of the mobile platform fight. It may get it from Canonical's Ubuntu for Android.

The Ubuntu factor

Ubuntu is a friendly version of Linux aimed at the masses. Unfortunately, the masses have never embraced it on a large scale, but it has proven to be usable enough that even your technophobic uncle can easily use Ubuntu to do things like surf the Web, check e-mail, and download photos from a digital camera.

While the iPhone is winning on simplicity, Android is winning on expanded features (and it's still expected to have a 50 percent market share this year). One of those expanded features that the iPhone doesn't have is the ability to dock and act like a computer. Last week we looked at how Motorola Webtop pioneered this concept. However, Ubuntu has an alternative vision for smartphone/PC convergence and it's teaming with Android hardware makers on devices that will hit the market later in 2012.

Canonical, the company behind Ubuntu, has slowly and quietly evolved the Linux desktop into a legitimate low-cost alternative to Windows and Mac. Ubuntu's focus on usability with its Unity Desktop and Heads-Up Display (which is like a Google search for all of the menus on your computer) has given Ubuntu the simplicity it needs to compete in an era that's about to be dominated by touchscreens and cloud computing.

That's why when Canonical announced and demonstrated Ubuntu for Android at Mobile World Congress in February, it generated a lot of interest across the mobile industry. Users liked the idea of a more full-featured desktop than Motorola's Webtop. Android phone makers liked the idea of using the software to build high-powered multi-purpose devices and make more money off smartphones accessories like desktop docks. And, wireless carriers loved the idea of powerful smartphones running desktop-level applications that will demand more data than ever.

Mobile World Congress 2012 attendees flock to see Ubuntu for Android. Photo credit: Canonical

"The feedback has been great," Canonical CEO Mark Shuttleworth said. "People that really got their hands on it have raved about it."

After the announcement, the Canonical booth at MWC 2012 was flooded with interest from corporate tech managers, consumers, and representatives from telcos and handset makers. All of them wanted to see what Ubuntu for Android could do. Everyone has seen the capabilities of Motorola Webtop -- as we talked about last week -- but it's limited to mostly desktop Web browsing and it's only available on Motorola phones. Ubuntu takes the concept a step further by opening it up to more apps and to all Android phone makers.

Shuttleworth said, "Webtop reminds [me] of ChromeOS. It's a browser story. We've pulled off a very different feeling... The full range of desktop apps are there."

When Ubuntu is loaded on an Android phone, the two platforms share the same Linux kernel, so it's not like running two operating systems. The two pieces act like complementary partners. The Android phone functions normally when used as a smartphone or when making calls, but when it docks then the Ubuntu desktop pops up and acts like a standard computer. You can open a desktop Web browser, but you can also install and run standard Ubuntu desktop software for photo editing, word processing, etc.

Because Ubuntu is so lean, the entire Ubuntu software stack only takes up about 2GB, and that includes apps for e-mail, Web browsing, photo editing, music, and other basic stuff. If you install more applications from the large Ubuntu repository of open source apps then that will obviously take up more space, but there's still plenty of storage on most modern smartphones to handle it. While Ubuntu takes up more storage than Webtop, it's also giving you a lot more capabilities.

"The Ubuntu solution is providing a complete PC operating system," said Richard Collins, the Product Manager for Ubuntu for Android. "Canonical has always seen the opportunity for Ubuntu for Android. It's something that's always been discussed, but once the hardware was ready then we realized the timing was good for this. [The software] is mature enough for us to engage with an OEM today."

Before joining Canonical in December 2011, Collins previously worked on smartphones for Symbian -- the operating system that used to power Nokia smartphones before CEO Stephen Elop dumped it for Windows Phone 7 last year.

For Ubuntu for Android, Collins added, "We haven't touched Android at all."

But, while the Ubuntu solution doesn't alter Android, it provides deep integration with Android on the Ubuntu side, and that's where Canonical is bringing value that goes above and beyond what Motorola accomplished with Webtop.

Going beyond Webtop

Here are some examples of the ways Ubuntu integrates with Android:

• Web pages that you have open on your Android phone are automatically opened in Ubuntu when you dock. It even switches from the mobile site to the desktop version of the site, in many cases.
• View, search, and launch Android applications from within the Ubuntu desktop
• Access and edit photos and videos and then save them back to Android
• Wi-Fi networks and settings are shared between Android and Ubuntu
• View and search phone contacts from the Ubuntu desktop
• Use Dialer app to make calls on the phone while docked in Ubuntu
• Read and respond to text messages with full keyboard in Ubuntu
• Android calendar app is synced with Ubuntu calendar software
• Social networking account credentials are synced between Android and Ubuntu

Again, the other thing that Ubuntu has going for it over Webtop is that Webtop is currently only available on Motorola smartphones. In my Webtop article last week, I suggested that when Google buys Motorola Mobility it could choose to directly integrate Webtop into the next version of Android, which would turn almost every new Android device into a PC replacement.

In the meantime, Ubuntu for Android is bypassing Google and making its pitch directly to Android handset makers. Interestingly enough, once the announcement was made in February, several of the handset makers actually came and sought out Canonical to start the dialog on how to get it on their devices. Canonical said that virtually all of the major Android phone makers are considering Ubuntu for Android.

"We've engaged all the handset manufacturers that we feel were relevant to this solution," said Collins. "They were beating a path to our stand [at MWC]."

Collins said Ubuntu for Android is not something that is meant to be released as a download on the Internet and installed on existing Android phones. It's going to take close cooperation with the phone makers in order to optimize performance of the hardware for each smartphone and to build in all the hooks that are needed for the deep integration that Ubuntu is doing with Android.

Since Ubuntu for Android runs alongside Android, Collins argued that a handset manufacturer can integrate it with a phone that is currently in development without having to completely reboot the product. He said manufacturers that are planning to launch multi-core smartphones this year can still take this and launch with it before the end of the year. While that sounds a little oversimplified, the key is that Collins thinks we'll see Ubuntu integrated into high-end Android phones by the end of 2012.

Collins also said that Ubuntu would love to work with some  devices. That's where the possibilities of this type of solution could start to shine through, since performance has been one of the big drawbacks of Motorola Webtop as well as the Motorola Atrix 2 device that Ubuntu of Android was demonstrated on at MWC.

While it's uncertain what Google is going to do with Motorola Mobility once the acquisition is complete, the search giant has said that it intends to run Motorola as a stand-alone business. If that's the case, then Shuttleworth said he's even open to collaborating with the Webtop creator. "I'd love to work with Motorola because I know the courage it took to bring Webtop to market."

One thing that's very clear in talking with Shuttleworth is that he has completely bought into the idea that the smartphone is the future of the PC. His only question was the timing. "It's a very natural step for us to be taking," he said. "[This is] an upcoming phase change. It might take five years. It might take 10 years."




(courtesy:cnet.com)

Microsoft's $300 million gamble on B&N: Hey, why not?

Quite a lot has already been conjectured in the wake of Microsoft's decision to invest $300 million in a new joint venture with Barnes & Noble. Is a Windows Nook on the way? Are we witnessing a sly move to poke Google in the eye by fostering Android fragmentation? Or is this part of a longer range effort to help users e-books and articles across myriad devices?

Yes to all of the above. But there's not much sense in overthinking this. If you're Steve Ballmer, there's no way that you don't do this deal.

First, the $300 million is a rounding error for a company that did $17.4 billion in its most recent quarter. This was chump change next to what Facebook plunked down to buy Instagram and, really, a very small price to pay to get off the sidelines and into a hot market.

For Microsoft, it's a low-cost gambit given how badly the company trails in the e-book business. Microsoft, which of course doesn't share that view, tells me that the real battle is only now getting underway. That's a bit delusional, but you have to admire their spunk.

And if the gambit succeeds, Ballmer will look prescient, having found a cheap way into a world currently dominated by Amazon and Apple. If Microsoft fails, it's a meaningless tax write-off that won't make a difference to the company's stock (unlike Barnes & Noble, whose shares rose 52% on the news.)

Microsoft could also use a partner that knows what it's doing. As Kevin Tofel reminds us, this is not the first time Microsoft has given the e-reading business a try. But big ideas don't always pan out. Microsoft's Windows Pocket PC platform for mobile devices debuted on April 19, 2000. The Microsoft Reader was embedded in the platform, "allowing you to read e-books on the go."

Microsoft eventually got out of the Reader business in August of last year, with the decision to shutter its Reader efforts. And why not when the software was then losing to dedicated e-Ink devices and smaller tablets from Amazon, Barnes & Noble and others?

For Barnes & Noble, Microsoft's deep pockets are a godsend. Nook or no Nook, the company still struggles with issues that ultimately pushed its former rival Borders into bankruptcy. (Hands please: Who wants to be a big box book retailer in the age of the Internet?)

Which is why the new division -- the Orwellian-named Newco -- could eventually wind up on spun out on its own. More immediately, Microsoft's backing should help Barnes and Noble dispel the concerns of any fence-sitters wondering whether the Nook can survive in an increasingly hardscrabble market.

My CNET colleague David Carnoy correctly observes that in the commodity world of e-books, uneasy consumers have expressed worry that their purchases might disappear if a company goes out of business.

 When Borders went belly up, consumers were simply migrated over to Kobo because Kobo already powered Borders e-book store. But no one knows exactly what would happen if Barnes & Noble went down the tubes, and not a Nook story goes by on CNET without a commenter voicing some concern over Barnes & Noble's longevity.

Microsoft's money solves that problem for Barnes & Noble. How do win more customers? In announcing the news, neither company was very specific. Microsoft President Andy Lees went on about how "the option here is to define the future of reading" and that Microsoft sought to become "more than just the platform provider."

That covers a lot of ground, but it's still anybody's guess what that will mean. Lees was equally opaque about what comes next -- besides, that is, the obvious step of making a Nook app for Windows 8. That leaves the blogospheric chattering classes to ponder the inner Zen of the moment.

Since the Nook runs on Android, it's reasonable to expect Microsoft to press Barnes & Noble to switch to Windows 8 sometime in the future (at least for some Nook models.) All Lees would say was that Microsoft offered several different form factors, price points, and capabilities, leaving the impression that there would be more to talk about at some future date. He also mentioned how Microsoft's "complementary assets will accelerate e-reading innovation across a broad range of Windows devices." Amazon now controls roughly 60% of the e-book business in North America and if CEO Jeff Bezos was listening to today's conference call, he didn't hear anything to lose sleep over.

But while Microsoft and its newest best friend aren't doing much beyond making promises on top of promises right now, this story may yet wind up with a happy ending. The Nook has already won its share of good product reviews -- CNET gave it 3.5 out of five stars in its rating -- and there's no reason to believe it wouldn't do equally well equipped with Windows 8, which could be one of the best OS iterations ever produced at Microsoft.

For $300 million, it's well worth rolling the dice. What's to lose?

(courtesy:cnet.com)

Who's telling Apple to 'Wake Up' in Oz? It's RIM!

The campaign has seen screaming protestors being dumped outside of the Sydney Apple store and traipsing through the streets. Cryptic messages have also popped up all over Sydney and Melbourne. Black-and-white signs bearing the message "Wake Up" have been spotted all over the two cities, including on the bottom of a pool at Sydney's Bondi Beach.

RIM today took ownership of the controversial campaign.

We can confirm that the Australian "Wake Up" campaign, which involves a series of experiential activities taking place across Sydney and Melbourne, was created by RIM Australia. A reveal will take place on 7 May that will aim to provoke conversation on what "being in business" means to Australians.

Speculation had been rife that Samsung Australia was behind the experimental advertising push, with the impending release of the company's latest Galaxy S smartphone and the anti-Apple sentiment acting as clues.

Samsung Australia's marketing director, Arno Lenior, denied the company's involvement in the protests, praising whoever was behind it.

"It's great to know we're front of mind with parts of the media, as well as a good few bloggers, when it comes to discussing campaigns like 'Wake Up'. As a market leader in smartphones, we think Australians have already woken up to the multitude of choices available, but kudos to whoever is behind the campaign -- clearly it's captured significant attention in the market, and we are as keen as everyone else to discover who is behind it," Lenoir said in a statement reported by Mumbrella.

The theory that RIM was behind the campaign was first floated by MacTalk, which uncovered a piece of code that pointed back to the smartphone maker on the cryptic Wake Up countdown website.

(courtesy:cnet,com)

Groupon's board adopts some financial discipline

Embroiled in shareholder lawsuits, its stock plunging, and still headed by a CEO criticized as unpredictable, Groupon has found things a bit hectic recently. Which may explain a minor board shakeup that looks a lot like an attempt to put some grownups in control of things.

Financial veterans American Express CFO Daniel Henry and Deloitte vice chairman Robert Bass are to join Groupon's board.

"With their deep financial, accounting, and operational experience, Dan and Bob will provide invaluable expertise to the Board going forward," Groupon Chairman Eric Lefkofsky said in a statement.

Henry joined the board April 26, replacing Starbucks CEO Howard Schultz, who resigned from the board on April 24, well before the end of his term and just over a month ahead of the vesting date for 30,000 of his Groupon stock options. Bass is set to replace Kevin Efrusy from Accel Partners at the company's June 19 board meeting.

This focus on new blood from the finance world may be an indication that Groupon is looking to regain investor confidence. The daily deals company went public just six months ago, but has faced a handful of upsets that paralleled some of its pre-IPO accounting controversies -- specifically, a high-profile accounting slip-up that revealed its fourth-quarter results were worse than previously stated because of higher refunds to merchants.

That blunder increased Groupon's net loss for the fourth quarter by $22.6 million and reduced revenue for the quarter by $14.3 million to $492.2 million. It also led to two lawsuits filed by shareholders and a possible SEC investigation.

Groupon went public in November at $20 a share, and its stock peaked at $31.14 in early February before beginning a downhill slide over the past couple of months. Shares closed at $10.71 today but its stock price is trading up about 2 percent in after-hours trading since the announcement of Henry and Bass joining the board.

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(courtesy:cnet.com)

Facebook to unveil 'life-saving tool' today

What does Mark Zuckerberg have up his sleeve for tomorrow? Zuckerberg pictured here at F8 in 2010

(Credit: James Martin/CNET)

Facebook CEO Mark Zuckerberg has a potential "life-saving tool" announcement to make.

Zuckerberg will unveil the tool today during "Good Morning America," while Chief Operating Officer Sheryl Sandberg will provide more details in an interview during "World News with Dianne Sawyer," ABC said on its site today.

There are few details on the announcement, although ABC has been plugging the segment all morning. Zuckerberg will be showing off the tool at the company's Menlo Park, Calif., headquarters.








(courtesy:cnet.com)