All posts by Scott Bicheno

Audi, connected car, Huawei, M2M, News & Analysis, Vendor, Volkswagen

Huawei’s details connected car partnerships with Audi, Volkswagen

Huawei is pushing forward with a number of connected car partnerships this week

Huawei is pushing forward with a number of connected car partnerships this week

Chinese networking giant Huawei is going big on the connected car market this week with the announcement of partnerships with German car makers Audi and Volkswagen, reports Telecoms.com.

This week’s news specifically concerns Volkswagen, with the demonstration at CES Asia of some MirrorLink-based technology that enables smartphones apps to be used on the vehicle-mounted systems. While this sort of thing has been around for a while, it seems that Huawei is facilitating the integration of MirrorLink technology in VW cars, all of which will feature it by next year.

“Our cooperation with Huawei will seamlessly blend the capabilities of users’ smartphones with the systems in their cars,” said Sven Patuschka, executive vice president for R&D of Volkswagen Group China. “All content on the phone will be shown in real time on the car’s infotainment touch screen. The result is smart and convenient interaction between phone and car.”

Earlier this week at the same show Huawei unveiled an R&D partnership with Audi, but this time focused on “interconnected car technology”, which seems to mean embedded modems.

“We see the unlimited opportunities available in the interconnected car market and we are excited about our partnership with Audi Group,” said Richard Yu, chief executive of Huawei Consumer Business Group. “By partnering with industry-leading automobile companies like Audi, Huawei aims to bring the best interconnection services and solutions to the next generation of cars, while actively promoting interaction between cars, smartphones, wearables and people, creating a seamless communication experience and driving environment.”

The connected car has long been viewed as the next major opportunity for the tech industry, but it has been slow to develop. One of the main reasons is the relatively long lead times in the automotive industry, which means bets have to be made on embedded technology standards that may be obsolete by the time the car comes to market. The answer, of course, is open standards, but as ever we have to wait for the proprietary land-grab to exhaust itself first.

Visit Connected Cars 15 to find out all about connected car business models and technologies.

Bonny Joy, Christopher Dodge, News & Analysis, Operator, telco, Telco Cloud

Cloud storage bundles improve stickiness but not revenues – research

Cloud storage helps operators retain customers, not necessarily generate revenue

Cloud storage helps operators retain customers, not necessarily generate revenue

Research undertaken by analyst firm Strategy Analytics has concluded that pre-installed mobile cloud storage bundles, such as Dropbox, have become table stakes for device vendors and are perceived more as a prerequisite than a value-add, reports Telecoms.com.

SA pooled the resources of three analysts covering mobile content, user experience and app tracking to come to the conclusion that premium storage bundles have already become ‘me too’ propositions that confer little product differentiation. Having said that they also conclude they can still be effective for both device vendors and operators when it comes to customer loyalty.

Christopher Dodge, Associate Director of SA’s Wireless Media Labs, said: “Our research suggests that consumers are agnostic to who the service provider is, but at the same time they place significant emphasis on the trustworthiness of the service, which in turn creates an opportunity for device OEMs and operators in becoming the trusted provider of the service, through pre-installing the application on the device with free storage.”

Nitesh Patel, Director of the Wireless Media Strategies Service, said: “For operators, the focus with cloud storage service should be on indirect monetization – this means rather than relying on cloud as a premium service, they should manage it effectively for reducing customer churn.”

Bonny Joy, Chief of SA’s Consumer Telemetry Platforms said: “ OEM partnerships with cloud storage providers are being received favorably by the end users. The AppOptix based on over one million application sessions in the US found that Dropbox on Samsung devices realize a traffc of 12.8 MB  per day, the highest among  major OEM brands.”

Fellow analyst firm CCS Insight has also published some research today, but focusing on the UK consumer communications services market. CCS is forecasting that by 2020, 79% of UK households will have signed up to a multiplay service bundle, a 60% increase on the current level. Furthermore the number of households buying a bundle of at least four comms services is expected to increase by over 400%.

Paolo Pescatore, Director of Multiplay and Media at CCS Insight, reckons this means premium content will become even more valuable and that industry consolidation is set to continue. “With a furious battle for customers raging, we expect the amounts paid for exclusive content deals on movies, sports and TV shows to continue to skyrocket. Sports will be a major weapon in every provider’s arsenal for many years to come,” he said.

“Our surveys reveal that consumers find it more convenient and better value to buy broadband, mobile, TV and land-line access from one company, so established providers that can offer all these services are in a strong position. Once multiplay packages are the norm, it’ll be the exclusive content on offer that’ll set providers apart. It’s little wonder we’re seeing a frenzy of acquisitions as leading players scramble to secure assets.”

Dan Pitt, network function virtualisation, News & Analysis, NFV, ONF, SDN, Software Defined Networking

Open Networking Foundation wary of ‘big vendor’ influence on SDN

Pitt said networking has remained too proprietary for too long

Pitt said networking has remained too proprietary for too long

Dan Pitt, executive director of the Open Networking Foundation (ONF), has warned of the dangers of allowing the big networking vendors to have too much influence over the development of SDN, arguing they have a strong interest in maintaining the proprietary status quo.

In an exclusive interview with Telecoms.com, Pitt recalled the non-profit ONF was born of frustration at the proprietary nature of the networking industry. “We came out of research that was done at Stanford University and UC Berkeley that was trying to figure out why networking equipment isn’t programmable,” he said.

The networking industry has been back in the mainframe days; you buy a piece of equipment from one company and its hardware, chips, operating system are all proprietary. The computing industry got over that a long time ago – basically when the PC came out – but the networking industry hasn’t.

“So out of frustration at not being able to programme the switches and with faculties wanting to experiment with protocols beyond IP, they decided to break open the switching equipment and have a central place that sees the whole network, figures out how the traffic should be routed and tells the switches what to do.”

Disruptive change, by definition, is bound to threaten a lot of incumbents and Pitt identifies this as a major reason why Networking stayed in the proprietary era for so long. “Originally we were a bunch of people that had been meeting on Tuesday afternoons to work out this OpenFlow protocol and we said we should make it an industrial strength standard,” said Pitt. “But if we give it to the IETF they’re dominated by a small number of very large switching and routing companies and they will kill it.”

“This is very disruptive to some of the traditional vendors that have liked to maintain a proprietary system and lock in their customers to end-to-end solutions you have to buy from them. Some have jumped on it, but some of the big guys have held back. They’ve opened their own interfaces but they still define the interface and can make it so you still need their equipment. We’re very much the advocates of open SDN, where you don’t have a single party or little cabal that owns and controls something to disadvantage their competitors.”

Ultimately it’s hard to argue against open standards as they increase the size of the industry for everyone. But equally it’s not necessarily in the short term interest of companies already in a strong position in a sector to encourage its evolution. What is becoming increasingly clear, however, is that the software genie is out of the bottle in the networking space and the signs are that it’s a positive trend for all concerned.