Qottab, Quindim or Quesito? Google releases Android Q beta

Every year Google releases a new version of Android, and while it is marginally entertaining to guess what sweetie it will be named after, it also provides a very useful roadmap for the future of mobility.

In controlling roughly 74% of the global mobile Operating System (OS) market share, Android is in a unique position to dictate how the ecosystem develops over the short- and medium-term. This year’s update appears larger and more wide-ranging than previous iterations, perhaps representing the significant changes to the industry in recent months.

“In 2019, mobile innovation is stronger than ever, with new technologies from 5G to edge to edge displays and even foldable screens,” said Dave Burke, VP of Engineering for Android. “Android is right at the centre of this innovation cycle, and thanks to the broad ecosystem of partners across billions of devices, Android’s helping push the boundaries of hardware and software bringing new experiences and capabilities to users.”

Privacy updates, gaming enhancements, features to accommodate for new connectivity requirements and addressing the foldable phone phenomenon, there is plenty for developers to consider this year.

Privacy as a product

New demands are being placed on developers around the world when it comes to privacy, but in truth, they have no-one to blame for the extra work than themselves.

This is not to say all developers have abused the trust of the consumer, but numerous scandals over the last 18 months and the opaque manner in which society was educated on the data-sharing machine has created a backlash. Privacy demands have been heightened through regulation and consumer expectations, meaning these elements are slowly becoming a factor in the purchasing process.

There are numerous privacy and security updates here which suggests Google has appreciated the importance of privacy to the consumer. Privacy could soon become a selling point, and Google is on hand with many of the updates based on its Project Strobe initiative.

Perhaps one of the most important updates here is more granular control of the permissions for individual apps. Users will not only have more control on what data is shared with which apps, but developers can no-longer request for consent for a catch-all data hoovering plan, while Google is also cracking down on un-necessary permissions. The team is updating its User Data Policy for the consumer Gmail API to ensure only apps directly enhancing email functionality have authorisation, while the same is being done for call functionality, call logs and SMS.

Data Privacy Survey

Source: GDMA: Global data privacy: What the consumer really thinks

Aside from the permissions updates noted above, users will also have more control over when apps can get location data. While some developers have abused the trust of users by collecting this data when irrelevant as to whether the app is open or not, users will now have the power to give apps permission to see their location never, only when the app is in use (running), or all the time.

There are other updates to the permissions side including audio collections, access to cameras and other media files. All of these updates represent one thing; privacy is a real issue and (theoretically) the power is being handed back to the consumer.

That said, Ovum’s Chief Analyst Ed Barton notes the critical importance of privacy features today, however, as Google could be considered one of the main contributors to the root problem, you must question how much trust the consumer actually has.

“It is noteworthy that privacy is something one might reasonably assume to have in most situations in modern life except in one’s digital life where the default expectation is that a vast digital platform knows more about you than your life partner and immediate family,” said Barton. “It is these circumstances which enables the concepts of privacy, personal data control and trust to be highlighted and used as marketing bullets.

“Privacy in something like an OS is meaningless unless you can trust the entity which made it so with Android Q the question, as always, is ‘how much do you trust Google’?”

Gaming enters the mainstream

Another major update to Android Q looks to target the increasingly popular segment of mobile gaming.

“Gaming remains one of the most popular genres on the app stores, while smartphones have allowed the industry to connect with the masses,” said Paolo Pescatore of PP Foresight.

“This has led to emergence of new games providers and a surge in casual and social gamers, while the arrival of 5G will open further opportunities for cloud based multiplayer games due to faster and more reliable connections and low latency. Mobile devices will be key in this new wave that also promises to bring virtual and physical worlds closer together providing users with immersive experiences.”

Capture

Source: KPMG: The Changing Landscape of Disruptive Technologies report

Here, there are two main updates which we would like to focus on. Firstly, Vulkan and ANGLE (Almost Native Graphics Layer Engine) to improve more immersive experiences. And secondly, improved connectivity APIs.

Starting with the graphics side, Android Q will add experimental support for ANGLE on top of Vulkan on Android devices to allow for high-performance OpenGL compatibility across implementations. The team is also continuing to expand the impact of Vulkan on Android, with the aim to make Vulkan on Android a broadly supported and consistent developer API for graphics.

In short, this means more options and greater depth when it comes to creating immersive experiences.

On the connectivity front, not only has Google refactored the wifi stack to improve privacy and performance, developers can request adaptive wifi in Android Q by enabling high performance and low latency modes. There are of course numerous usecases for low latency throughout the connectivity ecosystem, but from a consumer perspective, real-time gaming and active voice calls are two of the most prominent.

Gaming has slowly been accumulating more support and penetrating the mass market, and some of the features for Android Q will certainly help this blossoming segment.

Foldable phones; fad or forever?

Considering the euphoria which was drummed up in Mobile World Congress this year, it should hardly come as a surprise the latest edition of Android addresses the new demands of the products.

“To help your apps to take advantage of these and other large-screen devices, we’ve made a number of improvements in Android Q, including changes to onResume and onPause to support multi-resume and notify your app when it has focus,” the team said in the blog announcement.

There are of course a number of useful features which come with the increased real-estate, one of which is being able to run more than one app simultaneously without having to flick back and forth, as you can see from the image below.

Google Update

There are of course advantages to the new innovation, but you have to question whether there are enough benefits to outweigh the incredible cost of the devices. The power of smartphone and the astonishing tsunami of cash in the digital economy is only because of scale. With Samsung’s foldable device coming in at $1,980, and Huawei’s at $2,600, these are not devices which are applicable for scale.

Google is preparing itself should the foldable revolution take hold, but mass adoption is needed more than anything else. The price of these devices will have to come down for there to be any chance of these devices cracking the mainstream market, and considering recent trends suggesting the consumer is becoming more cash conscious, they will have to come down a lot.

The price might also impact the development of the subsequent ecosystem. Developers are under time constraints already, and therefore have to prioritise tasks. Without the scale of mainstream adoption, few developers will focus on the new form factor when creating applications and content. With little reward, what’s the point? Price will need to come down to ensure there is appetite for the supporting ecosystem to make any use of this innovation.

We’ve been complaining about a lack of innovation in the devices market for years, so it is a bit cruel to complain when genuine innovation does emerge, but a lot of work needs to be done to give foldable screens as much opportunity for widespread consumer adoption.

BSS – change and adapt, or die

Telecoms.com periodically invites third parties to share their views on the industry’s most pressing issues. In this piece Tony Gillick, Tony is GVP Solutions Management at Openet, takes a look at the current state of the BSS business.

Recent news from Ericsson that it is spending SEK 6.1billion (approx. £530million) to restructure its BSS business comes as little surprise. Approaches to operator mobile service monetisation and underlying BSS has changed beyond recognition over the past few years. Traditional delivery mechanisms, when operators tied themselves to one major vendor for all its service monetisation needs are over – and the telecoms industry needs to accept it and move on.

The big bang approach to BSS transformation doesn’t work. For Ericsson to base their Revenue Manager solution on an end to end BSS stack that would replace existing legacy BSS was a brave move. The rewards could have been very high, but then again so were the risks.

Monetising new services is already going to be an uphill struggle for operators, adopting the right tools can make life all the more easy for them. These tools will see the overhaul of service delivery models and service architectures, and the brave adoption of new technologies and approaches. For the telecoms industry, such change is daunting and risky but more important than ever before.

A chance at survival

In today’s world, everywhere you turn there’s a vendor or an operator talking about change and the need to evolve. Yet, for many, it’s evident that the definition of digital transformation remains unclear. Operators and vendors must remove themselves from the echo-chamber in which they find themselves. They need to find a new source of truth, one that encourages and promotes innovation and new thinking, but also highlights their failings, and allows them to successfully explore the new trends driving industry change.

Doing this is tough, however. For the legacy operator, adapting to quickly evolving industry and consumer trends can prove daunting and complex, and very much out of their comfort zone. But today’s reality means that consumers are no longer prepared to wait for their operator to act and deliver the service they need. Consumers have little loyalty to their operator brand and will churn if they feel they aren’t getting value for money or the service they want, when they want it. At the same time, industry trends and the availability of cloud-native technologies is allowing new players, who previously had no skin in the telecoms game, to enter the market. In the face of these new entrants, who have a wealth of new applications and services to offer, legacy operators must take action if they are to have a chance of survival.

What does change look like?

Understanding what change really means is probably operators’ and vendors’ biggest challenge. Yet these answers can be easily found in the trends driving industry transformation.

Operators and vendors must change how they think about transformation. It’s not enough to simply adopt new technologies, operators and vendors must truly get behind the concepts such as open source technologies, and the sharing of new ideas and methods to drive innovation. According to a 2018 TM Forum industry survey, cultural obstacles are one of the biggest issues when it comes to encouraging transformation. Operators and vendors need to leave behind their legacy mindset and begin to embrace collaboration and partnerships. Allowing new relationships to flourish based on mutual understanding and benefit will help underpin digital transformation’s success. Operators just cannot afford to be shackled by their supplier, and similarly, vendors must have the trust of their operator customer to take risks and innovate through new technologies and approaches.

It is only through this cultural change and collaborative approach that operators and vendors will truly be able to leverage the capabilities of new technologies and approaches such as AI, microservices and DevOps. These approaches will be key to developing the platform-based tools and services that operators will need to deploy new offers rapidly, and monetize new services such as 5G and IoT.

The road to digital transformation success is a long and winding one, with many uncertainties along the way. Digital transformation cannot be seen as a destination or an end-goal, it’s an ever-evolving ‘thing’ that will continue to be so long as the industry exists. Operators and vendors have their work cut out to make change a reality, but it’s by learning from the failures of others, and embracing new thinking and new tools that the industry will truly change. In doing so, operators will start to reap the rewards of launching new services by seeing subscriber churn decrease and customer engagement increase. Ultimately, it’ll be the difference between them thriving and merely surviving.

 

CREATOR: gd-jpeg v1.0 (using IJG JPEG v80), quality = 82“Tony Gillick is the GVP Solutions Management for Openet. Previous to this Tony has headed up product management, solutions engineering and systems architecture for Openet. He’s been with Openet for more than 15 years and has managed BSS implementations for some of the leading service providers in the world.”

Virgin Media gives some smarts to wifi

Virgin Media has unveiled a new, ‘intelligent’, router which it claims will bring faster speeds to more areas of the home.

With the telco world becoming increasingly utilitised, and advertising authorities rightly cracking down on the ‘creative’ marketing claims, new ideas will certainly be needed to capture the attention of the increasingly demanding consumers. And in fairness to Virgin Media, this is not a bad attempt.

“Delivering ultrafast broadband to help make Britain faster is what we do best at Virgin Media but making sure this translates into reliable in-home connectivity is just as important,” said Richard Sinclair, Executive Director of Connectivity at Virgin Media

“Intelligent WiFi will allow our customers to make the most of their broadband while also helping to easily overcome any connectivity conundrums around the home. With families using more devices than ever before, it’s vital they can all be online whenever needed. Whether it’s streaming UHD movies on Netflix, playing the latest games online or video conferencing, Intelligent WiFi has your back.”

Starting with the intelligence side of the router, should the software work the way it’s supposed to, this could prove to be a very interesting addition. Firstly, Channel Optimisation allows the router to choose the least congested channel to decrease the likelihood of traffic jams. Secondly, a Band Steering feature allows devices to switch between 2.4GHz or 5GHz frequency to optimise performance. Finally, Airtime Fairness suggests bandwidth will be allocated between devices depending on the demands of that device.

The term ‘intelligence’ is thrown around relatively flimsily nowadays, though should the performance of these features be at the desired level, this could prove to be a very useful product.

 

And while the ‘intelligence’ aspects are more likely to enthuse those consumers who are more geekily orientated, a new app to manage the wifi experience is answers a lot of the simple bugbears and first-world problems of connectivity.

One example is sharing wifi passwords. It might not seem like a revolutionary idea but being able to log into the app and simply send the wifi password to a friend or guest will save customers from the inevitable digging around behind the TV. This is not necessarily a feature which will win customers for Virgin Media, but enough of these little quirky features will improve the customer experience and loyalty.

Another area which the app addresses is ubiquitous connectivity. Being connectivity everywhere and all-the-time is a necessity nowadays, though consumers are becoming increasingly cash conscious. Through the app, Virgin Media customers can now connect to any Virgin Media wifi hotspots, of which there are 3.5 million around the UK.

Most importantly for Virgin Media, this take the brand outside of the customers home, and allows the company to support customers through the entire day. This is Virgin Media adding value into the customer’s lives, going beyond the assumed perimeters of a home broadband provider.

“UK consumers have an insatiable appetite for data across a wide range of devices that will continue to grow over time,” said Paolo Pescatore of PP Foresight. “As well faster download speeds, consumers want a better and reliable connection in all parts of their home. This is starting to be a highly sought after service among users.”

BT has been playing in this market for some time, which offers Virgin Media a blueprint for success. Patchy performance and an irritating log-in process perhaps gave the BT wifi play a bad name, though progress has been made across the public wifi space in recent years. Hopefully Virgin Media will have learned these lessons.

With connectivity increasingly heading towards the dreaded limitations of utility, it is becoming increasingly important for telcos to prove they can add value to other aspects of the customers life. This is certainly an interesting play from Virgin Media and should the features work, Virgin Media goes some way in proving it is more than just a utility.

Reports of Google China’s death are greatly exaggerated

Google engineers have found that the search giant has continued with its work on the controversial search engine customised for China.

It looks that our conclusion that Google has “terminated” its China project may have been premature. After the management bowed to pressure from both inside and outside of the company to stop the customised search engine for China, codenamed “Dragonfly”, some engineers have told The Intercept that they have seen new codes being added to the products meant for this project.

Despite that the engineers on Dragonfly have been promised to be reassigned to other tasks, and many of them are, Google engineers said they noticed around 100 engineers are still under the cost centre created for the Dragonfly project. Moreover, about 500 changes were made to the code repositories in December, and over 400 changes between January and February of this year. The codes have been developed for the mobile search apps that would be launched for Android and iOS users in China.

There is the possibility that these may be residuals from the suspended project. One source told The Intercept that the code changes could possibly be attributed to employees who have continued this year to wrap up aspects of the work they were doing to develop the Chinese search platform. But it is also worth noting that the Google leadership never formally rang the dead knell of Dragonfly.

The project, first surfaced last November, has angered quite a few Google employees that they voiced their concern to the management. This was also a focal point of Sundar Pichai’s Congressional testimony in December. At that time, multiple Congress members questioned Pichai on this point, including Sheila Jackson Lee (D-TX), Tom Marino (R-PA), David Cicilline (D-RI), Andy Biggs (R-AZ), and Keith Rothfus (R-PA), according to the transcript. Pichai’s answers were carefully worded, when he repeated stated “right now there are no plans for us to launch a search product in China”. When challenged by Tom Marino, the Congressman from Pennsylvania, on the company’s future plan for China, Pichai dodged the question by saying “I’m happy to consult back and be transparent should we plan something there.”

On learning that Google has not entirely killed off Dragonfly, Anna Bacciarelli of Amnesty International told The Intercept, “it’s not only failing on its human rights responsibilities but ignoring the hundreds of Google employees, more than 70 human rights organizations, and hundreds of thousands of campaign supporters around the world who have all called on the company to respect human rights and drop Dragonfly.”

While Sergei Brin, who was behind Google’s decision to pull out of China in 2010, was ready to stand up to censorship and dictatorship, which he had known too well from his childhood in the former Soviet Union, Pichai has adopted a more mercantile approach towards questionable markets since he took over the helm at Google in 2015. In a more recent case, Google (and Apple) has refused to take down the app Absher from their app stores in Saudi Arabia, with Goolge claiming that the app does not violate its policies. The app allows men to control where women travel and offers alerts if and when they leave the country.

This has clearly irritated the lawmakers. 14 House members wrote to Tim Cook and Sundar Pichai, “Twenty first century innovations should not perpetuate sixteenth century tyranny. Keeping this application in your stores allows your companies and your American employees to be accomplices in the oppression of Saudi Arabian women and migrant workers.”

Samsung looks to capitalise on Huawei’s woes

Samsung is reported to be investing heavily in infrastructure business to fill the market gap left by Huawei’s ban from 5G business in the developed markets.

Sources inside Samsung and other industry executives have told the Reuters that Samsung is pouring resources into its telecom infrastructure business unit, aiming to seize the opportunity created by the ban on Huawei in a number of important western markets. Samsung’s infrastructure business had been insignificant until recently, trailing Huawei, Nokia, Ericsson, Cisco, and ZTE, according to figures from the research firm Dell’Oro Group. But it saw a chance when first ZTE then Huawei found themselves being shut out of the lucrative 5G markets in one country after another in the developed world.

To join the ranks of Ericsson and Nokia, Samsung is said to be moving strong management resources as well as software engineers from the smartphone unit to the infrastructure business and to have started charming Huawei’s current customers. One of the global heavyweights that has been impressed by what Samsung has got to offer is Orange. After visiting Japan, where Samsung was conducting a 5G trial, Mari-Noëlle Jégo-Laveissière, Orange’s CTO, was happy to include Samsung in its shortlist of alternative suppliers, after the telco decided to ban Huawei, its long-term top supplier, from its 5G business in France. An Orange 5G trial with Samsung will be conducted this year.

One difficulty Samsung needs to overcome is the shortage of talents. To start with it needs good engineers. To this end, Samsung’s heir apparent and de facto head Lee Jae-yong, or Jay Y. Lee as he is known in the western world, has sought the support from the Prime Minister when the latter visited Samsung in January. “We need more software engineers and want to work with the government to find that talent,” Lee was quoted by government officials. Samsung’s infrastructure unit has a workforce of about 5,000 people, both Nokia and Ericsson employ more than 100,000 people, and Huawei is said to have employed 200,000 people.

Another type of people Samsung needs to get onboard is those that can build operator relations. This needs a different skill sets from what Samsung has excelled in dealing with distribution channels for its smartphones, and it needs them to be in all the right places in the mature markets, and, better still, to have already worked with the potential operator customers. Due to the nature of business, trusty relationship with telcos often need to be cultivated for years or even decades.

However, Samsung may have just chosen a perfect timing for expansion. Both Ericsson and Nokia are laying off people, either wholesale shutting down of full business units, or selectively downsizing certain teams. Many of these functions have actually had customer interface experience. Huawei’s founder meanwhile has warned that the company may also need to adopt some cost control measures. Though they could not bolster Samsung’s strengths to the same level of its competitors, these could all be good recruitment targets for Samsung to pounce.

Ericsson and Intel partner for 5G cloud platform

Ericsson and Intel have announced a new partnership which is aimed at aligning the Swedes efforts for software-defined infrastructure with Intel’s Rack Scale Design.

The resulting hardware management platform will be designed for telcos targeting 5G, NFV, and distributed cloud. In theory, the pair aims to create a common managed hardware pool for all workloads that dynamically scales. It’s the scalable and affordable dream telcos have been promised for years.

The duo has said the new tie-up will allow telcos to take advantage of multi-vendor hardware options, Ericsson’s end-to-end software solutions, and Intel’s latest architectural solutions.

“We have long history of successful collaboration with Intel. Lars Mårtensson, Head of Cloud & NFV infrastructure for Digital Services at Ericsson. “This new collaboration will focus on software in addition to hardware and we see it to be truly transformative for service providers’ ability to successfully deploy open cloud and NFV infrastructure, from centralized data-centres to the edge. Intel’s and Ericsson’s joint efforts significantly strengthens the competitiveness and roadmap of the Ericsson Software Defined Infrastructure offering.”

“5G will be transformative, accelerating today’s applications and triggering a wave of new usages and edge-based innovation,” said Sandra Rivera, SVP of the Network Platform Group at Intel. “Our infrastructure manageability collaboration with Ericsson will help communications service providers remove deployment barriers, reduce costs, and deliver new 5G and edge services with cloudlike speed on a flexible, programmable and intelligent network.”

As part of the tie up, the Ericsson SDI Manager software and Intel RSD reference software will be converged, though the pair reiterated full backward compatibility would be maintained for existing customers. Any new solutions developed moving forwards will be subsequent Ericsson hardware platforms, as well as Intel’s server products which are sold through third-parties and in other industry segments.

Red Hat gives thanks for Turkcell virtualization win

Turkish operator Turkcell has launched a virtualization platform called Unified Telco Cloud that’s based on Red Hat’s OpenStack Platform.

As the name implies this new platform is all about centralising all its services onto a single virtualized infrastructure. This NFVi then allows east selection and implementation of virtual network functions, or so the story goes. Examples of operators going all-in on this stuff are still sufficiently rare for this to be noteworthy.

As a consequence this deal win is also a big deal for Red Hat, which has invested heavily in attacking the telco virtualization market from an open source direction, as is its wont. Red Hat OpenStack Platform is its carrier-grade distribution of the open source hybrid cloud platform. Turkcell is also using Red Hat Ceph Storage, a software-defined storage technology designed for this sort of thing.

“Our goal is to remake Turkcell as a digital services provider, and our business ambitions are global,” said Gediz Sezgin, CTO of Turkcell. “While planning for upcoming 5G and edge computing evolution in our network, we need to increase vendor independence and horizontal scalability to help maximise the efficiency and effectiveness of our CAPEX investment.

“With the Unified Telco Cloud, we want to lower the barrier to entry of our own network to make it a breeding ground for innovation and competition. In parallel, we want to unify infrastructure and decrease operational costs. Red Hat seemed a natural choice of partner given its leadership in the OpenStack community, its interoperability and collaboration with the vendor ecosystem and its business transformation work with other operators.”

Another key partner for Turkcell in this was Affirmed Networks, which specialises in virtualized mobile networks. “We initially selected Affirmed Networks based on their innovation in the area of network transformation and virtualization and their work with some of the world’s largest operators,” said Sezgin.

It’s good to see some of the endlessly hyped promise of NFV actually being put into effect and it will be interesting to see what kind of ROI Turkcell claims to have got from its Unified Telco Cloud. With organisations such as the O-RAN Alliance apparently gathering momentum, open source could be a major theme of this year’s MWC too.

Google investors slightly spooked by free-spending execs

Revenues might well be booming again at Google, but it seems shareholders are slightly concerned by increased costs, which is one of the fastest growing columns in the spreadsheet.

Looking at the final quarter, revenues stood at $39.3 billion, up 22% year-on-year, though traffic acquisition costs (TAC), what Google pays to make sure it is the dominant search engine across all platforms, operating systems and devices, were up by over $1 billion. Cost-per-click on Google properties were also down. A glimmering ray of sunshine was higher-than-expected seasonal growth for premium YouTube products and services.

Total revenues for 12 months ending December 31 stood at $136.8 billion, up 23% over 2017, while net income was back up to the levels which one would expect at Google, raking in $30.7 billion. The company is not growing as quickly as it used to, while expenses are starting to stack up. Investors clearly aren’t the happiest of bunnies as share price declined 3.1% in overnight trading.

“Operating expenses were $13.2 billion, up 27% year-over-year,” said Alphabet CFO Ruth Porat. “The biggest increase was in R&D expenses, with the larger driver being headcount growth, followed by the accrual of compensation expenses to reflect increases in the valuation of equity in certain Other Bets.

“Growth in Sales and marketing expenses reflect increases in sales and marketing headcount primarily for Cloud and Ads followed by advertising investments mainly in Search and the Assistant.”

Headcount by the end of the last period was up by more than 18,000 employees to 98,771. While CEO Sundar Pichai was keen to point out the business is continuing to invest in improving its core search product, diversification efforts into areas such as the smart speaker market, cloud and artificial intelligence are hitting home. Perhaps investors have forgotten what it’s like to search for the next big idea.

For years, Google plundering the bank accounts with little profit to offer. These days are a long-distant memory, but it is the same for every business which is targeting astronomical growth. You have to perfect the product and then scale. A dip in share price perhaps indicates shareholders have forgotten this concept, but Google is doing the right thing for everyone involved.

Some businesses search for differentiation and diversification when they have to, some do it because they have ambition to remain on top. Those who are searching because they have to are most likely reporting static or declining numbers each month and did not have the vision to see the good days would not last forever. Google is pumping cash into the next idea so when growth in its core business starts to flatten, something else can pick up the slack and pull the business towards more astronomical growth.

This is what is so remarkable about the ‘other bets’ column on the spreadsheets. It might have costs growth every single year, as does the wider R&D column, but having graduated the cloud computing business and most recently Loon, there are businesses which will start to contribute more than they are detracting. This is a company which never sits still, and this is why it is one of the most admired organizations from an entrepreneurial perspective. Shareholders might do well remembering this every now and then.

Looking at joy around the world for the final quarter, US revenues were $18.7 billion, up 21% year-over-year, while EMEA brought in $12.4 billion, up 20% and APAC accounted for $6.1 billion, up 29%. Revenues in LATAM were $2.2 billion, up 16% year-over-year. APAC and LATAM were subject to negative FX fluctuations, particularly in Australia, Brazil and Argentina.

In the specific business units, Google Sites revenues were $27 billion in the quarter, up 22%, with mobile collecting the lion’s share, though YouTube and Desktop contributing growth also. Cloud, Hardware and Play drove the growth in the ‘other’ revenues for Google, collecting $6.5 billion, up 31% year-over-year for the final quarter.

Although these diversification efforts are growing positively, there are also some risks to bear in mind. Firstly, the cloud computing business is losing pace with Microsoft and AWS. Google is making investments to attempt to buy its way through the chasm, but it will be tough going as both these businesses make positive steps forward also.

Secondly, some properties and developers are choosing to circumnavigate the Google Play Store, instead taking their titles direct to the consumer. This is only a minor segment of the pie for the moment and there will be a very small proportion of the total who actually have the footprint to do this (Fortnite for example), though it is a trend the team will want to keep an eye on. Perhaps the 30% commission Google charges developers will be reconsidered to stem dissenting ideas.

Finally, the data sharing economy which will sit behind the smart speaker and smart home ecosystem is facing a possible threat. Google will not make the desired billions from hardware sales, but it will from the operating systems and virtual assistant powering the devices. Collecting referral fees and connecting buyers with sellers is what Google does very well, though this business model might be under threat from new data protection and privacy regulations.

The final one is not just a challenge to the potential billions hidden between the cushions in the smart home’s virtual sofa, but the entire internet economy. GDPR complaints are currently being considered and potential consequences to how personal data is collected, processed and stored are already being considered. The Google lawyers will have to be on tip-top form to minimise the disruption to the business, and wider data sharing economy.

Costs might be up and while there are dark clouds on the horizon, Pichai and his executives are moving in the right direction. The lawyers can lesson the potential impact of regulation, but the exploration encouraged by the management team in the ‘other bets’ segment is what will fuel Google in the future. Costs should be controlled, but spending should also be encouraged.

Telefónica pulls its SOCs up with Nokia’s help

Operator group Telefónica is changing its UK Network Operations Center into a Service Operations Center to show how customer-centric it is.

That was the distilled message from a press launch in central London this morning, co-hosted by its vendor for this project – Nokia. Building a SOC will allow O2 UK to make customer-led, as opposed to engineering-led, decisions about its network, we were told by Brandan O’Reilly, the CTO of O2 UK.

Telefónica has apparently already got started on this process in some of its other markets, including Chile and Germany, but this is a first for the UK and also the first time Nokia has been the vendor. So this seems like a big deal for them – hence the press event.

Tim Smith, VP of Nokia Software Europe, explained its SOC platform aggregates and standardises the various network data feeds in order to be able to compare and optimise them. It’s all about being proactive rather than reactive when it comes to network management and AI seems to play a big part, as you might expect.

A lot of the questions from the grizzled telecoms hacks in attendance focused on what specific benefits a SOC offers over a NOC and how they might be measured. While reduced churn is an obvious way to track ‘customer delight’, as Smith put it, Telefonica has its own metric called NCX (Network Customer Experience), which is currently at 79 and O’Reilly hopes will jump by at least a couple of points as a result of this shift. Here are the canned quotes from the press release.

“Telefónica has always aimed to offer the best possible experience to our customers which a reactive network monitoring approach to operations could never guarantee,” said Juan Manuel Caro, director of network and IT operations at Telefónica. “With SOC we have already transformed this in three of our markets reaching the next level in automated customer experience management, granting us flexibility and adaptability that serves as a key differentiator. Nokia’s solutions and services will allow us to achieve this goal in a competitive market like the UK.”

“Telefónica is pioneering the transformation toward customer-centric operations with the deployment of Nokia eSOC,” said Bhaskar Gorti, president of Nokia Software. “Nokia is proud to support Telefónica’s digital transformations and SOC deployments across the globe and with the flexibility to adapt to existing ecosystems in local markets.”

This all seems like quite a lot of effort to go to just to labour the ‘customer-centric’ concept that has become endemic to the point of cliché in the business world. But to be fair to both companies they are at least announcing concrete measures being taken in pursuit of that aim and thus holding themselves publicly accountable for delivering it.

Ericsson calls BS on its full-stack BSS

Kit vendor Ericsson has started the year by writing down almost $700 million to account for the fact that its latest BSS efforts have turned out to be a non-starter.

Its Q4 numbers will feature costs of around SEK 6.1 billion related to the ‘reshaping’ of its BSS (Business Support System) business, half of which will be customer compensations and write-downs, and half of which will be restructuring charges. It looks like Ericsson has concluded this is the only way to get its struggling Digital Services division back on track.

“The company’s past BSS strategy included pursuing large transformation projects based on pre-integrated solutions, including development of a next generation BSS platform, the full-stack Revenue Manager,” said the announcement. “The strategy has not been successful and to date the full-stack Revenue Manager has not generated any revenues.

“The anticipated customer demand for a full-stack pre-integrated BSS solution has not materialized. Delays in product and feature development has also made the full-stack Revenue Manager less competitive. R&D resources in BSS have been focused on full-stack Revenue Manager, causing further delays in product releases of the established platform. In addition, certain complex transformation projects experienced delays and cost overruns.”

No revenues at all? Damn! You have to question the due diligence that ‘anticipated customer demand for a full-stack pre-integrated BSS solution,’ when none whatsoever materialised. Furthermore another SEK 1.5 billion will need to be accounted for over the course of this year, taking the total bill to around $860 billion. Ericsson does still see value in its established platform, Ericsson Digital BSS, which apparently has a decent installed base, so it’s not pulling out of BSS entirely.

A big part of Börje Ekholm’s strategy since he took over has been to dial back some of the over-reach that characterised the Vestberg era. “Ericsson is applying a selective approach to large transformation projects focusing on projects based on available products,” said the latest announcement, and it’s clear that Revenue Manager was just such a project. Ekholm deserves some credit for continuing to look facts in the face and take decisive action.