The Telecom infrastructure market has gone through a wrenching transformation in the last decade and the most recent downturn has accelerated the change. According to a recent Reuters report, Nokia Corp. (NOK) and Siemens AG (SI) are considering an IPO as a way to exit from their 50-50 stakes in Nokia Siemens Networks. Despite years trying to make their respective investments in telecom infrastructure payoff, the NSN joint venture failed to make a profit. The two companies have been searching for a new partner in the private equity sector but have so far been unable to find a suitor. The joint venture began in 2007 only to have a global economic recession take hold one year later. Tough competition from Chinese vendors Huawei, ZTE and market leader Ericsson eroded NSN's market share aided also by uncertainty in product roadmaps from the combined venture.
Nonetheless, NSN has managed an impressive pair of wins in North America, including its $1.2 billion purchase of Motorola Inc.'s network business and a $7 billion deal to build Harbinger Capital Partners' LTE network over an eight-year span.
Saturday, November 27, 2010
Sunday, October 31, 2010
Verizon Getting Ready to Launch LTE Service
At long last, LTE is about to hit the big time in the U.S.. At CTIA in October, Verizon launched their LTE network, saying the service will be available in 38 markets covering 110 million potential customers before the end of the year. They plan to increase that coverage to 200 million pops by 2012 and more than 285 million pops by the end of 2013. Verizon's recent advertisements are claiming a launch in December. The goal is increase network speeds dramatically with downlink speeds of up to 12 megabits per second and up to 5 Mbps on the uplink. We can also expect to see a flurry of new devices to take advantage of their new network, likely at the upcoming Consumer Electronics Show in Las Vegas in early January.
Thursday, September 30, 2010
BlackBerry PlayBook - Tablet Market Heating Up
The big news from RIM this week was the official announcement of the BlackBerry PlayBook, the latest entry into the growing computer tablet market. I'm personally very excited about the potential this beauty holds for road warriors like myself. I have a pretty small laptop but it still weighs about 5lbs. At 0.9lbs, the BlackBerry Playbook significantly lightens my load. I also like the fact that I can view all the apps on the BlackBerry smartphone directly on the PlayBook via Bluetooth and don't have to worry about syncing or duplicating data on the two devices. This is handled automatically by the BlackBerry Enterprise Server.
The new tablet OS is a powerhouse and promises to deliver speed and performance not seen on tablet computers to date. It's based on QNX Neutrino software from QNX Software Systems, a maker of real-time OSs and is used in demanding environments such as planes, automobiles, high-end routers and power plant control systems. Secure, reliable and fast. Doesn't get much better than that for a road warrior.
The announcement today about Kobo e-books being available on the BlackBerry Playbook promises to add value from a content perspective. Kobo will be pre-loaded on the PlayBook and integrated with BlackBerry's email, allowing users to share books and create live, book-driven social networking groups. Easy access to 2.2 million titles while on the road and synchronized with me BlackBerry.
I can't wait!
Key features and specs of the BlackBerry PlayBook include:
The new tablet OS is a powerhouse and promises to deliver speed and performance not seen on tablet computers to date. It's based on QNX Neutrino software from QNX Software Systems, a maker of real-time OSs and is used in demanding environments such as planes, automobiles, high-end routers and power plant control systems. Secure, reliable and fast. Doesn't get much better than that for a road warrior.
The announcement today about Kobo e-books being available on the BlackBerry Playbook promises to add value from a content perspective. Kobo will be pre-loaded on the PlayBook and integrated with BlackBerry's email, allowing users to share books and create live, book-driven social networking groups. Easy access to 2.2 million titles while on the road and synchronized with me BlackBerry.
I can't wait!
Key features and specs of the BlackBerry PlayBook include:
- 7" LCD, 1024 x 600, WSVGA, capacitive touch screen with full multi-touch and gesture support
- BlackBerry Tablet OS with support for symmetric multiprocessing
- 1 GHz dual-core processor
- 1 GB RAM
- Dual HD cameras (3 MP front facing, 5 MP rear facing), supports 1080p HD video recording
- Video playback: 1080p HD Video, H.264, MPEG, DivX, WMV
- Audio playback: MP3, AAC, WMA
- HDMI video output
- Wi-Fi - 802.11 a/b/g/n
- Bluetooth 2.1 + EDR
- Connectors: microHDMI, microUSB, charging contacts
- Open, flexible application platform with support for WebKit/HTML-5, Adobe Flash Player 10.1, Adobe Mobile AIR, Adobe Reader, POSIX, OpenGL, Java
- Ultra thin and portable:
Measures 5.1"x7.6"x0.4" (130mm x 193mm x 10mm)
Weighs less than a pound (approximately 0.9 lb or 400g) - Additional features and specifications of the BlackBerry PlayBook will be shared on or before the date this product is launched in retail outlets.
- RIM intends to also offer 3G and 4G models in the future.
Tuesday, August 31, 2010
Consolidating Mobile Development Platforms
Alcatel_Lucent seems intent on simplifying the development of mobile applications for its carrier customers. It announced today that it has acquired OpenPlug, a mobile software and applications development tools vendor. What makes this announcement interesting is that traditional NEPs are now offering applications solutions to operators as data consumption grows and voice revenues decline. For years carriers have been attempting to build their own ecosystems to attract developers on their network but have largely failed to do so. ALU's acquisition is clearly part of the company’s broader application enablement strategy, which helps wireless operators leverage the network so operators can remain relevant to end users. Open Plug allows developers to create mobile applications once and convert the code into native software that runs on leading device operating systems such as iPhone or Symbian. There's also another angle here available to ALU since the OpenPlug technology also supports porting applications to non-mobile devices such as IPTV set top boxes, game consoles and other devices.
ALU appears to be on buying binge as it assembles the necessary pieces to offer its carrier customers. The company bought ProgrammableWeb in June. That company enables developers to easily access new APIs as they are created and shared in a clearing house type of format. Ideas for creating interesting mashups, leveraging social networks and other How To tips are available.
We can expect to see similar acquisitions across the NEP community as the industry increasingly seeks to leverage the growth of smartphones and data usage. The easier it is for service providers, enterprises and developers to write mobile applications without regard to device type, the more broadly content can be distributed and consumed. And that equals higher ARPU.
ALU appears to be on buying binge as it assembles the necessary pieces to offer its carrier customers. The company bought ProgrammableWeb in June. That company enables developers to easily access new APIs as they are created and shared in a clearing house type of format. Ideas for creating interesting mashups, leveraging social networks and other How To tips are available.
We can expect to see similar acquisitions across the NEP community as the industry increasingly seeks to leverage the growth of smartphones and data usage. The easier it is for service providers, enterprises and developers to write mobile applications without regard to device type, the more broadly content can be distributed and consumed. And that equals higher ARPU.
Friday, July 30, 2010
Motorola WiMAX a boost to NSN's Portfolio - But Does it Matter?
Motorola's recent sale of their network equipment business to Nokia Siemens Networks for an estimated $1.3B 
is a good addition to NSN's WiMAX portfolio. Motorola also has a reasonable presence in CDMA networks but I think the WiMAX technology was the primary reason for NSN's interest. The combination of the two pushes NSN into the #2 spot for wireless infrastructure in the US, a market where it has previously had little traction.
WiMAX itself is at an interesting point in its evolution. It had a time to market advantage relative to other high speed 4G technologies such as LTE. Sprint, with the help of its partner Clearwire, recently announced seven new cities with 4G WiMAX service, bringing its total of U.S. cities covered to 43. Analysts have predicted solid growth of WiMAX over the next five years (see ABI Research chart). Still, handsets that support WiMAX are fairly limited. Sprint offers one device at this time - HTC's Evo 4G. At least the Evo 4G is selling so well that demand is exceeding supply.
That said, the jury is still out on the long term success of WiMAX. Global subscriber adoption of WiMAX simply hasn't met expectations. Although revenue was up in Clearwire's most recent quarter, they reported a loss of $94M. In November 2009, the operator needed a fund infusion of $1.5B to turn itself around. Even in emerging markets, WiMAX uptake has been slower than expected. And with 4G LTE deployments hitting the market by the end of 2010, the window of 4g exclusivity that WiMAX has enjoyed is rapidly closing. It will be interesting to see how the two technologies co-exist (or not) in the years ahead.
is a good addition to NSN's WiMAX portfolio. Motorola also has a reasonable presence in CDMA networks but I think the WiMAX technology was the primary reason for NSN's interest. The combination of the two pushes NSN into the #2 spot for wireless infrastructure in the US, a market where it has previously had little traction.WiMAX itself is at an interesting point in its evolution. It had a time to market advantage relative to other high speed 4G technologies such as LTE. Sprint, with the help of its partner Clearwire, recently announced seven new cities with 4G WiMAX service, bringing its total of U.S. cities covered to 43. Analysts have predicted solid growth of WiMAX over the next five years (see ABI Research chart). Still, handsets that support WiMAX are fairly limited. Sprint offers one device at this time - HTC's Evo 4G. At least the Evo 4G is selling so well that demand is exceeding supply.
That said, the jury is still out on the long term success of WiMAX. Global subscriber adoption of WiMAX simply hasn't met expectations. Although revenue was up in Clearwire's most recent quarter, they reported a loss of $94M. In November 2009, the operator needed a fund infusion of $1.5B to turn itself around. Even in emerging markets, WiMAX uptake has been slower than expected. And with 4G LTE deployments hitting the market by the end of 2010, the window of 4g exclusivity that WiMAX has enjoyed is rapidly closing. It will be interesting to see how the two technologies co-exist (or not) in the years ahead.
Monday, June 28, 2010
BlackBerry Mobile Voice System 5.0
I'll admit this is a shameless plug for a very cool product RIM has recently made available. It's called BlackBerry Mobile Voice System (MVS). With all the hype around data applications, one of the topics that often gets lost is mobile voice. The fact remains that voice is still the number one revenue generator for carriers. There's also a lot that can be done to improve the efficiency of interaction between corporate telephony networks and mobile phones. BlackBerry MVS 5.0 is a product aimed squarely at the enterprise customer and is designed to lower costs and improve productivity while leveraging existing telephony investments.
In short, BlackBerry MVS brings desk phone features to BlackBerry smartphones. You can work with one business number at the office or while travelling. You can enjoy one caller ID, unified voice mail and advanced security features. Depending on your role in the enterprise, the business drivers vary. For the employee, the business drivers are single number reachability, a single place to check voicemails, easy access to corporate directory and improved collaboration with colleagues. For the IT executive, BlackBerry MVS helps improve productivity, increase customer satisfaction, control & manage mobile costs and leverage existing investments (e.g., keeping their current IP-PBX and IP desk phone systems). For the IT admin, BlackBerry MVS allows them to gain control & management of mobile devices, users and voice service. Tying all of this together is BlackBerry security through secure call setup & authentication.
I'll give an example of a very cool BlackBerry MVS feature I use all the time. I'm often on a call while commuting into the office. Once in the office, however, I used to have to end the call and re-dial into the conference call number again. With MVS, I simply select "move call" and within a second or two my desk phone rings. Voila! I'm now on the conference call from my desk phone and no one on the call is the wiser.
Another huge selling point of BlackBerry MVS 5.0 is the ability to make and receive calls over Wi-Fi networks whether at the office, home or any hotspot. For companies with a global sales force, cellular network roaming costs can be huge. BlackBerry MVS lets you avoid those costs by making calls over a Wi-Fi network using your business phone extension. There are also a variety of on-device options such as controling incoming business calls based on time or day or restricting calls from specific numbers.
From the architecture diagram shown above, you can see that the BlackBerry MVS server sits completely outside the traditional call path. Each call from a BlackBerry smartphone is automatically authenticated by the BlackBerry Enterprise Server to help prevent unauthorized individuals from accessing the company’s PBX system. Calls made through BlackBerry MVS are
routed and anchored through the enterprise PBX to help ensure that company policies are met. The BlackBerry Enterprise Server has achieved multiple security accreditations and through its integration into the BlackBerry Enterprise Server environment, BlackBerry MVS adopts these security capabilities.
I hope you find BlackBerry MVS as exciting as I have. For more details on the product, visit the BlackBerry website here.
routed and anchored through the enterprise PBX to help ensure that company policies are met. The BlackBerry Enterprise Server has achieved multiple security accreditations and through its integration into the BlackBerry Enterprise Server environment, BlackBerry MVS adopts these security capabilities.
I hope you find BlackBerry MVS as exciting as I have. For more details on the product, visit the BlackBerry website here.
Friday, April 30, 2010
What's HP up to?
I must admit, the news that HP is buying Palm caught me by surprise. My first reaction: "huh?" That's because the first thing that came to mind was iPaq. Why would iPaq plus Palm be a winner? Two rocks don't float any better than one. Then I thought about where HP might be going with this; perhaps this is the start of a break from Microsoft OS-based products. HP could turn their current line of tablet PCs and mobile thin clients into a WebOS products. No more licensing fees to Microsoft and much higher margins for HP. Not a bad outcome if they can make desirable products. This will be fun to watch.
Thursday, March 18, 2010
The National Broadband Plan
On Tuesday of this week the FCC delivered their National Broadband Plan to Congress. At 376 pages, it's not a quick read (I'm on page 81). It is, however, full of interesting information on the state of the market, and rich with ideas on how to extend broadband networks to a stated goal of 100 million U.S. households by 2015.
In general, the Plan does a good job teeing up all the major issues the country faces in delivering broadband to everyone at a reasonable cost. The Plan recognizes the need to have an open access to infrastructure to encourage the upgrade to fiber, to increase the available spectrum for wireless broadband, to address delivering broadband to lower income or disadvantaged groups and to standardize the way broadband services are marketed so consumers can compare offerings more easily.
What remains to be seen is how well the FCC and all the inter-related agencies work with Congress to implement their recommendations. A major disappointment is that the hot topic of net neutrality is not addressed. Instead, the FCC summarizes the topic and acknowledges that discussions are continuing - a missed opportunity for the FCC to show real leadership.
Scanning through the Plan, there are a few points that stand out. I've taken the liberty of paraphrasing the recommendation statements below shown in italics:
The Good
Make spectrum more available in order to foster additional wireless-wireline competition at higher speed tiers (Recommendation 4.1)
A lot of spectrum is taken up by traditional TV bands. This spectrum has excellent propagation characteristics that make it ideal to deliver mobile broadband services. The Plan calls for reallocating 120 megahertz while leaving the existing, free broadcast TV system intact. In addition, the Plan proposes auctioning the 10 megahertz Upper 700 MHz D Block for commercial use that is technically compatible with public safety broadband services and making up to 60 megahertz available by auctioning Advanced Wireless Services (AWS) bands. All of these actions will stimulate market investment and growth of competitive offerings.
Make it easier to compare broadband offerings (Recommendation 4.5)
This is akin to mileage-per-gallon labels on cars. While not always a true representation of your mileage, the MPG ratings at least provide an expected MPG range based on a standard set of guidelines. Having the same available for broadband providers would be a great help to consumers who today are faced with a confusing array of techno-jargon.
Develop open, standard networking protocols for home set-top boxes (Recommendation 4.12)
Set-top boxes are the critical link to landline broadband services. The Plan proposes that broadband service providers install a gateway device in all new subscriber homes and in all homes requiring replacement set-top boxes, by Dec. 31, 2012. In today's world, these boxes use proprietary technologies, thereby limiting the ability to easily switch between broadband service providers. The intent of this recommendation is to crack open the set-top box dominance held by Cisco and Motorola (95% market share in North America), create more competition and innovation and make it easier for consumers to change providers.
Fund the Plan by shifting money from the outdated telephony-focused USF to a new funds focused on broadband (Recommendation 8.6)
It's refreshing to find the topic of cost addressed in this report. Rolling out broadband services nationally is going to take time and a lot of money. The FCC proposes shifting up to $15.5 billion over the next decade from the current Universal Service Fund's "High-Cost" program (there are three others as well) to broadband through a set of reforms. One of those reforms is to create a Connect America Fund and a Mobility Fund to ensure access to both broadband and mobility services in areas where their is no private sector business case to do so.
The Not So Good
Establish a national framework for digital goods and services taxation (Recommendation 4.20)
Yikes! We've managed to create a burgeoning commerce industry based on the Internet without Government taxation getting in the way. Why would we chose to impede growth by introducing burdensome taxation at time when the country is launching a national effort to expand access?
Launch a National Digital Literacy Program that creates a Digital Literacy Corps and an Online Digital Literacy Portal (Recommendation 9.3)
The goal to increase digital literacy across America is a noble one. The Plan notes that 22% of non-adopters cite digital literacy as their main barrier to broadband adoption. That said, I'm less convinced that this should be addressed at the Federal level instead of at the State or Local level. The proposal to create an online digital portal and fund a nationwide network of digital literacy training programs runs the risk of becoming a massive, inefficient government bureaucracy at a time when we can least afford it. In fact, the report cites an example in Chicago that I think makes the case for not creating a Government-run program . In 42 locations across Chicago, a group of young volunteers mostly in their 20s, work in conjunction with the Chicago Public Library to help people with basic computing skills and even advanced trouble shooting skills. Sounds likes a great model! Left alone, more of these initiatives will likely spring up on their own.
Final Thoughts
The National Broadband Plans is a solid piece of work. Some of the tougher issues, such as net neutrality were side stepped, but overall there is a good framework in place to move forward. The key will be how these recommendations move from planning to implementation over the coming months.
In general, the Plan does a good job teeing up all the major issues the country faces in delivering broadband to everyone at a reasonable cost. The Plan recognizes the need to have an open access to infrastructure to encourage the upgrade to fiber, to increase the available spectrum for wireless broadband, to address delivering broadband to lower income or disadvantaged groups and to standardize the way broadband services are marketed so consumers can compare offerings more easily.
What remains to be seen is how well the FCC and all the inter-related agencies work with Congress to implement their recommendations. A major disappointment is that the hot topic of net neutrality is not addressed. Instead, the FCC summarizes the topic and acknowledges that discussions are continuing - a missed opportunity for the FCC to show real leadership.
Scanning through the Plan, there are a few points that stand out. I've taken the liberty of paraphrasing the recommendation statements below shown in italics:
The Good
Make spectrum more available in order to foster additional wireless-wireline competition at higher speed tiers (Recommendation 4.1)
A lot of spectrum is taken up by traditional TV bands. This spectrum has excellent propagation characteristics that make it ideal to deliver mobile broadband services. The Plan calls for reallocating 120 megahertz while leaving the existing, free broadcast TV system intact. In addition, the Plan proposes auctioning the 10 megahertz Upper 700 MHz D Block for commercial use that is technically compatible with public safety broadband services and making up to 60 megahertz available by auctioning Advanced Wireless Services (AWS) bands. All of these actions will stimulate market investment and growth of competitive offerings.
Make it easier to compare broadband offerings (Recommendation 4.5)
This is akin to mileage-per-gallon labels on cars. While not always a true representation of your mileage, the MPG ratings at least provide an expected MPG range based on a standard set of guidelines. Having the same available for broadband providers would be a great help to consumers who today are faced with a confusing array of techno-jargon.
Develop open, standard networking protocols for home set-top boxes (Recommendation 4.12)
Set-top boxes are the critical link to landline broadband services. The Plan proposes that broadband service providers install a gateway device in all new subscriber homes and in all homes requiring replacement set-top boxes, by Dec. 31, 2012. In today's world, these boxes use proprietary technologies, thereby limiting the ability to easily switch between broadband service providers. The intent of this recommendation is to crack open the set-top box dominance held by Cisco and Motorola (95% market share in North America), create more competition and innovation and make it easier for consumers to change providers.
Fund the Plan by shifting money from the outdated telephony-focused USF to a new funds focused on broadband (Recommendation 8.6)
It's refreshing to find the topic of cost addressed in this report. Rolling out broadband services nationally is going to take time and a lot of money. The FCC proposes shifting up to $15.5 billion over the next decade from the current Universal Service Fund's "High-Cost" program (there are three others as well) to broadband through a set of reforms. One of those reforms is to create a Connect America Fund and a Mobility Fund to ensure access to both broadband and mobility services in areas where their is no private sector business case to do so.
The Not So Good
Establish a national framework for digital goods and services taxation (Recommendation 4.20)
Yikes! We've managed to create a burgeoning commerce industry based on the Internet without Government taxation getting in the way. Why would we chose to impede growth by introducing burdensome taxation at time when the country is launching a national effort to expand access?
Launch a National Digital Literacy Program that creates a Digital Literacy Corps and an Online Digital Literacy Portal (Recommendation 9.3)
The goal to increase digital literacy across America is a noble one. The Plan notes that 22% of non-adopters cite digital literacy as their main barrier to broadband adoption. That said, I'm less convinced that this should be addressed at the Federal level instead of at the State or Local level. The proposal to create an online digital portal and fund a nationwide network of digital literacy training programs runs the risk of becoming a massive, inefficient government bureaucracy at a time when we can least afford it. In fact, the report cites an example in Chicago that I think makes the case for not creating a Government-run program . In 42 locations across Chicago, a group of young volunteers mostly in their 20s, work in conjunction with the Chicago Public Library to help people with basic computing skills and even advanced trouble shooting skills. Sounds likes a great model! Left alone, more of these initiatives will likely spring up on their own.
Final Thoughts
The National Broadband Plans is a solid piece of work. Some of the tougher issues, such as net neutrality were side stepped, but overall there is a good framework in place to move forward. The key will be how these recommendations move from planning to implementation over the coming months.
Wednesday, January 27, 2010
Oracle gets Telco!
If it's one thing that surprised me the most from Wednesday's Oracle-Sun strategy session held at Oracle's headquarters in Redwood City, it was hearing Oracle President Charles Phillips mention "NEBS" in his opening remarks. And show a slide featuring Sun's NEBS ATCA blade servers surrounded by NEP logos (Sun's OEM customers). And proudly acknowledge Sun's market leading presence in the central offices of large telecoms. Holy Toledo. Oracle gets Telco!
Sun's success in telco was a fact often lost on Sun executives. The OEM business was even less understood within the company. Oracle's management seems to have quickly identified this hidden jewel within Sun's portfolio and plans to capitalize on it.
Oracle was also crystal clear about what they will NOT do. Forget about low-end x86 servers with Windows on it or variants of Linux. For that matter, forget about low-end anything. Buy your low-end gear from somebody else. Solaris is not about being the best workstation or desktop OS. It's built for high-end markets, where five 9's reliability, radical scalability and screaming fast performance are table stakes. There was no mention of continuing an Oracle-Sun branded Star Office desktop productivity suite but rather a cloud-based pay-as-go or subscription service. Imagine that.
Oracle's strategy is a radical departure from the Sun of old. One of Sun's greatest failings, in my opinion, was management's inability or unwillingness to cut poor performing products from its portfolio. In other words, an inability to decide what NOT to do. Products that were not profitable often carried forward from year to year with declining investment - doomed to suffer death by a thousand cuts. In so doing, resources were never fully available for those products that truly stood a chance to succeed. Make no mistake, Sun has developed many incredible technologies. The challenge at Sun was never around innovation but in making the difficult choices that come with having so many interesting options to pursue.
Oracle won't have that problem. They are brutally financially driven. Their presentations made that clear. There was no ambiguity, no open decisions, no blank stares from the audience. Larry Ellison's vision of delivering an integrated, optimized and tested stack from server to app offers the telco world a game-changing solution. A new model for product lifecycle management that could significantly lower OA&M costs over time while delivering cheaper, better, faster service for their customers. Oracle has the resources to invest in Sun technologies that offer incredible cost reductions in the wireless infrastructure world (e.g., virtualization with LDOMs, packet processing software with Netra Data Plane Suite, multithreading with SPARC CMT) particularly suited for deployments in emerging markets (see earlier blog post on 4G). Oracle's stated plan to spend $4.3B in R&D in FY11 made it clear that they will do so.
None of this will be easy. Getting multiple engineering teams to work together seamlessly is always a challenge. But now at least they'll be under one roof. As Larry put it, "the proof is in the pudding." I can't wait to see how that pudding tastes.
Sun's success in telco was a fact often lost on Sun executives. The OEM business was even less understood within the company. Oracle's management seems to have quickly identified this hidden jewel within Sun's portfolio and plans to capitalize on it.
Oracle was also crystal clear about what they will NOT do. Forget about low-end x86 servers with Windows on it or variants of Linux. For that matter, forget about low-end anything. Buy your low-end gear from somebody else. Solaris is not about being the best workstation or desktop OS. It's built for high-end markets, where five 9's reliability, radical scalability and screaming fast performance are table stakes. There was no mention of continuing an Oracle-Sun branded Star Office desktop productivity suite but rather a cloud-based pay-as-go or subscription service. Imagine that.
Oracle's strategy is a radical departure from the Sun of old. One of Sun's greatest failings, in my opinion, was management's inability or unwillingness to cut poor performing products from its portfolio. In other words, an inability to decide what NOT to do. Products that were not profitable often carried forward from year to year with declining investment - doomed to suffer death by a thousand cuts. In so doing, resources were never fully available for those products that truly stood a chance to succeed. Make no mistake, Sun has developed many incredible technologies. The challenge at Sun was never around innovation but in making the difficult choices that come with having so many interesting options to pursue.
Oracle won't have that problem. They are brutally financially driven. Their presentations made that clear. There was no ambiguity, no open decisions, no blank stares from the audience. Larry Ellison's vision of delivering an integrated, optimized and tested stack from server to app offers the telco world a game-changing solution. A new model for product lifecycle management that could significantly lower OA&M costs over time while delivering cheaper, better, faster service for their customers. Oracle has the resources to invest in Sun technologies that offer incredible cost reductions in the wireless infrastructure world (e.g., virtualization with LDOMs, packet processing software with Netra Data Plane Suite, multithreading with SPARC CMT) particularly suited for deployments in emerging markets (see earlier blog post on 4G). Oracle's stated plan to spend $4.3B in R&D in FY11 made it clear that they will do so.
None of this will be easy. Getting multiple engineering teams to work together seamlessly is always a challenge. But now at least they'll be under one roof. As Larry put it, "the proof is in the pudding." I can't wait to see how that pudding tastes.
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