Abstraction

Article in PC world talks about HTML 5 in the context of the Google announcements today (http://tinyurl.com/mk8krj)

HTML5 is a standard that is still being developed and is likely to remain so for several years. Its focus on running applications within the browser is an important driver of interest in cloud computing, where applications live somewhere off on the Internet and are delivered by the browser.

The focus of future browsers will shift from “going places” to “doing things.” This will be a boon to free operating systems, which will increasingly be able to hide themselves under the browser user interface. While Windows and Mac OSX won’t go away overnight, the pressure on them will be to innovate beyond the browser, perhaps through a common set of extensions for HTML5 applications to use.

The key takeaway is that the operating system is in the cloud, in addition to office applications and everything else. Mobile operators are the most important — and to date largely unsung — players here; it is they that have the most to gain (or lose, if they succeed at screwing it up).

You’ve heard it before: remember Sun’s campaign that the “Network is the Computer. ” Back in 1995 Larry Ellison was predicting that Network Computers would replace Personal Computers as the computing equipment of choice. And Netscape said for years that the browser was the “next OS.”

The difference now is that a viable broadband mobile infrastructure is in place. Network technologies have matured, not from a technological standpoint (they’ve been mature from some time), but from a social standpoint. The network is now, finally, ready to realize it’s place as the computer because people’s lives are integrated with it more deeply than even Larry could dream more than a decade ago.

From Unstrung: http://www.unstrung.com/document.asp?doc_id=176867&

T-Mobile and Orange are both saying that LTE has many technology hurdles to overcome before it is viable for their networks (Verizon and NTT’s aggressive plans notwithstanding).

The operators’ concerns with LTE include: support for voice services; the impact on backhaul capacity; intellectual property rights; the lack of standardization for self-organizing networks (SONs); and the lack of spectrum. And those are just the chief conerns.

In addition, T-Mobile and Orange, along with other European carriers, are scarred by the disastrous early days of WCDMA (3G), when they spent billions of euros on licenses and hyped 3G downlink speeds beyond reality, leaving customers and investors sorely disappointed. They don’t want to repeat those 3G mistakes in LTE, especially in the midst of a global financial crisis.

In my mind, this reinforces my contention that mobile bandwidth will quickly and inevitably become a finite resource in the face of unprecedented demand. Business models will change from a flat-rate all-you-can-eat (or all-you-can-eat-up-to-a-point) to more complex and nuanced charging that includes dynamic tiering, utility-style billing, and so on.

I’ve read a number of reports speculating about mobile data growth lately and it strikes me that they typically omit what I believe is the most significant evolution affecting mobile data. iPhones and similar are great and have certainly accelerated the market, but they are nothing compared to the impact (and opportunity for network policy vendors) represented by netbooks with embedded cellular access.

Consider: Right now, AT&T is selling a range of laptops in Northern California at Radio Shack for $49.95 (that’s not a typo — 50 bucks; see http://tinyurl.com/oagx33) with a 2 year contract for flat rate data with a monthly cap. Netbooks are now the most popular computer type on the market (Intel expects sales to double in 2009 http://tinyurl.com/djxdrd).

Too, there’s the recent announcements of businesses standardizing on cloud office applications like Google Apps. Imagine the savings a large enterprise can enjoy by standardizing on netbooks. Laptops so cheap they are almost disposable. All data saved safely in the cloud.

Suddenly you have lots of torrent sessions and Skype calls routinely supported through the mobile network. Huge increases in youtube traffic. Hulu. Even parental control becomes much more meaningful as parents worry about inappropriate content accessed via the laptop much more than a phone.

Suddenly, despite usage caps, the GGSN is supporting data volume like no one could ever dream, with smartphone traffic a minority. Some reports say this is a long range play. We’ll see. I think it’s going to explode as we watch. And vendors that tie licensing terms to usage/seats/transactions or similar, will watch revenue explode with it…

Article in the WSJ today talks about the network impact of the iPhone: http://online.wsj.com/public/quotes/main.html?type=djn&symbol=t

Users of iPhone download games, video and other Web data at two to four times the rate of other smartphone users, according to comScore. Yet AT&T charges iPhone subscribers the same fee of $30 a month for data that it levies on other smartphone customers. And aside from restricting certain activities, like file sharing, AT&T doesn’t limit how much data can be downloaded…

Too, the iPhone is just the tiny first drop of a huge deluge that will be caused by access dongles and netbooks. The situation is pretty clear: network resources are finite; demand upon them is (as good as) infinite.

A message to those folks philosophically opposed to any kind of network management: something’s gotta give. If access remains unrestricted, physics will take over and reduce everyone’s throughput and QoS to a trickle. It’ll be a small comfort to know that the occasional packet you receive is officially “neutral.”

The net neutrality issue as currently framed is a red herring anyway. Subscriber’s don’t care if their bandwidth is restricted, as long as they have control to remove the restriction. The water supply in my sink is restricted, but I can remove that restriction at any time (for a fee) by turning a tap. The more I turn the tap, the more I pay.

And that’s really the key — allocate network resources according to those willing to pay for it. Everyone wins.