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Is Advertising the Future of Software Revenue? Part I

There is a strong movement toward maturity and its ultimate potential. The
Internet-based software applications. Of trade press once again declared this new
this, there is little doubt. I have technology a failure--far before the
written on the SaaS trend in the past, development cycle was even able to
and believe it is real. But sometimes deliver stable, useful products. 802.11
market trends such as the move toward became the dominant wireless networking
SaaS are overstated, both in terms of the standard. Bluetooth has found a small
speed of change, and also how much change niche in short cable replacement,
the trend will ultimately affect a primarily in the market for hands-free
market. We have a word for this devices attached to mobile phones. Newer
overstatement of a trend: "hype". So, is emerging standards such as UWB threaten
traditional software revenue model of to usurp in many of the market niches
licensing dead? Will all software that Bluetooth has been able to
eventually be "given away" to the end establish, and is the new challenger to
user, and supported solely by advertising 802.11 for the wireless networking space.
revenue? PEN AND VOICE COMPUTING (TAKE YOUR PICK):
If you believe many of the pundits in the What was predicted: Many times over the
computer trade press, the answer is a years, tech industry pundits have
resounding "yes". proclaimed that by year xxxx, Pens and or
What do I believe? It's a bunch of hooey. Voice Recognition technologies will have
I've got a few gray hairs, and have been rendered the trusty keyboard and mouse
in the technology business for a while. obsolete. We will be able to engage our
In technology, this type of hype is computing platforms in a more natural
neither unusual nor infrequent. For manner, much like we do in "real world"
background purposes, let's backtrack a interactions. The Apple Newton was to be
bit, to few recent, major "trends", which only the first generation of soon to be
were heralded as the "next big thing" by ubiquitous pen-based computers, which
the mainstream technology trade press and would dominate our everyday computing
associated analysts. world. Later, Bill Gates told us during a
JAVA stage introduction in 2001, that he was
What was predicted: Java was going to "already using a tablet PC as his
take over the world, it was a Microsoft everyday computer." Certainly all the
killer. Sun Microsystems was to ascend to experts, over the years, expected these
the position of King of the technology technologies to mature and become
world. mainstream, long before the year 2006.
What actually happened: There was What actually happened: We're still
tremendous PR hype far in advance of waiting. I'm guessing that Bill G.'s
mature, usable technology and products. clunky Tablet PC is sitting somewhere in
This was followed by headlines detailing the corner of his office--gathering dust.
the dismal failure of Java in the market, I haven't tried to add it up, but I'm
and the beginning of yet another down sure that many billions of dollars have
cycle for Sun. Java technology eventually gone down the drain (along with a bunch
matured and found a nice market space, of high profile startups, and careers),
although not a dominant one, and one that trying to bring these technologies to the
Sun seems to have failed to capitalize on mass market. In the meantime, the
directly. The most recent estimate I've technologies have continued to mature,
seen of Java revenues for Sun is $10M and have found important niches. Pens
annually. have become useful in mobile computing,
BLUETOOTH although keyboards have recently mounted
What was predicted: Bluetooth was going a comeback in that area. Voice
to be the next great wireless standard, recognition continues to mature and has
blowing past the expensive and inferior become very useful in the market for
802.l1 standard. It would extend from people with disabilities. The maturation
cable replacement all the way to "smart of voice recognition can also be seen
networking". when you call a company using one of the
What actually happened: Unlike Java, newer automated attendants, as entry
which people saw as proprietary to Sun points to their call centers. They are
(with good reason), no one company much smarter and quite a bit less
"owned" Bluetooth. It was backed by a frustrating to use than the earlier
large consortium and standards committee. attempts in the market, which helped coin
Unfortunately, like Java, it was grossly the phrase "voice mail hell".
oversold very early on, both on its




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