The Rutberg July Industry Newsletter covered the mobile advertising market, cloud services across both consumer and enterprise markets, and a cross-carrier payments initiative by AT&T, Verizon Wireless, and T-Mobile USA. As usual, the Rutberg team provided solid analysis of current events and their financial implications [if you would like Rutberg’s indepth financial analysis, please visit http://www.rutbergco.com/equity-research/].
I will now add analysis from a business management perspective and the impact that executives would be wise to consider.
Millennial Media reported in June that ad requests through the Apple OS grew the most globally – 36%; ad requests over Android grew 23%.
Rutberg 10 Second Review: Momentum for the overall market and for certain private company leaders.
EquisGlobal 1 Minute Review: Whether you build an Andoid OS device or develop an app on the Android platform, Google will take a cut of the ad service. Since most searches start at Google, the tracks connect directly to Google ad partners regardless of who is managing the middle including Millenial, AdMob, etc…
Cloud computing for enterprises
LG Uplus partners with Microsoft for cloud computing
Rutberg 10 Second Review: Cloud services continue to be a material discussion topic and opportunity for wireless and integrated carriers.
EquisGlobal 1 Minute Review: Cloud service, cloud computing, and cloud apps – these are new names for old businesses known as enterprise services, over-the-air (OTA), remote computing, Internet storage, and many more. So, why is – life in the cloud – compelling now?
Cloud is a term that common computer users now understand in concept, even if they cannot fully articulate the associated solutions in technical language.
1. Storage is cheap.
2. Telecommuting workers can account for 80% of all workers at some large enterprises.
3. North America is losing its status in R&D to become a sales and marketing service economy dependent on profit during good cycles and mitigating costs during depressing cycles. In most companies, sales roles are designed for out-of-office, constant travel with home office remote access into the corporate servers.
U.S. operator consortium on payments
U.S. operators take on credit cards with contactless payment trial via smartphones.
Rutberg 10 Second Review: In our view, the use of smartphones for point-of-sale purchases remains a significant and untapped opportunity. Questions include: 1) who will pay for the costs within the device and at the merchant, 2) how will revenues be shared among players across the ecosystem, and 3) will consumers be willing to pay more, to subsidize the revenue requirements for the new players in the ecosystem.
EquisGlobal 1 Minute Review: Banks have tried to build out a mobile wallet system, but the consortiums did not understand the concept of – intellectual property – thus when they invited telecom to participate, they were surprised no one accepted the invitation to share knowledge and participate in trials.
Companies such as Firethorn and Obopay attacked the challenges, however, the only success they achieved was acquisition and investment by device and component builders in telecom.
Now, we have carriers pursuing a unified solution. North American carriers, in addition to building out networks, act as banks/financial institutions with deep access into customers. The big operational questions are ‘will the carrier be the banker, the billing agent, and/or quality assurance (collection of debt) through service insurance to the business?’