The oracle at Compiegne

 

The even forces, at least on paper, that were standing in late 1939 at either sides of the Maginot Line, would not imagine that less than 6 months later, the initially outnumbered German army would inflict the French the worst defeat ever.

22 years earlier, Germany surrendered to the French. The French required the Germans to sign off the Armistice in a train wagon at Compiegne. The French kept the wagon as a monument to the French Victory and as well to the German Defeat. Fro the French, the German surrender of 1918 was a revenge to the German victories in the 1870s, and so it was carved on stone near the place where the train wagon was exhibited.

When in June 1940 the German flags were unfurled in Paris, the French High Command still had to formally sign its surrender, and they were called to do so at, precisely, Compiegne, and precisely in the same train wagon that the French had kept. Fro the German Leader, as important as the victory itself, the Germans were seeking revenge to the limit of humiliation. He instructed specifically his generals to set the ceremony that way. Anecdotally, the Germans made and intentional stop in front of the stone carving before the actual surrender signing.

We have witnessed recently the Oracle-SAP case verdict. It states that the latter has to pay the former the highest ever penalty in copyright infringement cases. Oracle’s victory sounds pretty much like the worst defeat ever inflicted to SAP.

It looks, however, like the Pontifex Maximus at the oracle is looking after his own Compiegne… Not really necessary, not fundamentally changing the lawsuit case, appearing more as a token gesture than a fundamental part of the trial, is this really something beyond a simple wish of humiliation?

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Legacy’s cost

 

“Number 2 is just the first one of the losers”, says a very famous motorbike racer who has been World Champion many times (still not retired) who loves being the fastest one.

This would be too radical a view when we have a look to any market, where there is not just one winner. It would actually be impossible under antitrust regulations.

However, the quote from Valentino Rossi (which is the biker’s name, as many bike fan’s might have guessed) can be understood in the context of what is currently going on in the smartphone market (and eventually in the tablet’s too), where old kings are running the serious risk of being phased out from their former positions.

Of course there can be space for them, and we actually believe there will always be, in fact. But it is really hard to accept being below second rank after past history dominance.

RIMM, Nokia, though still hitting very important volumes, might well be in that situation. The issue is the trend, clearly decaying, and the chance that they still base their current results on legacy. .

Legacy of corporate business and systems that have an enormous cost of change. Legacy of users who are provided a phone by their companies that might be used for personal purpose. Legacy from past experiences and resistance to adapt to new phones from previous ones.

But legacy has a deadline and does not last forever. History proves legacy is not enough, and costs empires. Ask the British about India, ask the French about Indochina, ask the Dutch about their Indies, or ask the Russians for the “xxxstan” republics. there is still a Britain, a France, Netherlands and Russia… but where did their empires go?

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The sound of silence

 

It is common to hear that no news equals good news… but it does not really seem the case for the guys at Microsoft regarding their mobile phone story.

Silence, as in that famous tune by Simon and Garfunkel, can be really loud, even more than the cheerful reporting when success is there, like it happened with Kinect.

Silence as well about the potential upgrades that are badly needed does not help either. When will the famous “cut & paste” basic feature show up?

The more they wait, the smaller chunk of the pie they’ll get, though they still have the potential benefit from the corporate and enterprise market, that to much extent has a Microsoft based IT. But even there, RIMM and Nokia can be too far it they keep on slowing down, or if they fail to move fast. Even the slowest of the slowest, that is, Palm, might move ahead of them if they ever start. Particularly if they deliver a confusing message to this segment.

The market does not wait for sound names and brands if they do not really deliver.

 

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Losers needed

 

Everybody likes a winner. In America, for example, “loser” is often used as an insult…

As well, and probably for the same reasons, everybody likes winning.

The problem with winners, however, is that to have a winner, you need losers. Winning is a relative situation. No losers mean no winners. When you win, you win against someone. Victory goes always at somebody else’s expense.

We have been wondering for a while about what is going between Oracle and HP. After the latest “victory” Oracle enjoyed, the well known trial against SAP for copyright infringement, which in fact involved indirectly HP through its current CEO Léo Apotheker, we have read about new aggressive arguments from Oracle’s Big Mouth Larry, aka the Pontifex Maximus at the oracle, targeting HP.

These last comments from the Pontifex indeed sound to us like a formal war declaration that finally comes up, after the de-facto war status so far, at least from the oracle’s side. Since the acquisition of Sun Microsystems by the latter, the once good partnership between Oracle and HP has degraded into a bitter relationship between the two companies that could mean in a closer relationship between HP and SAP, for example. SAP might really be all for it. As a matter of fact, we do believe this would be a logic step to take, and would certainly put a strong opponent in front of the Pontifex.

The Pontifex Maximus at the oracle, however, has a strong reputation after his manners, boastings and eventual bluffing. Not precisely an example of a New England British-like traditional gentleman, though effective and results-oriented. In fact, he is the real foundation of his company’s success. Personally, as well, he has fared pretty well, being considered the sixth richest man on earth. And the question remains open: Why HP in particular? What has this Pontifex Maximus against HP?

We do not have the full record of Oracle’s history, nor any insider information source. We don’t from HP either. But still, from the public information we might have had access to, we think we have an idea of what might be the reason.

Big Mouth Larry is probably no exception from the opening statements in this post. He loves winners, and he loves winning. Therefore, he sees any activity he steps into, anything he does, as a competition, as a battle, as a contest… that he ultimately has to win. To prove himself and the rest of the world he is a winner, and the world should love and admire him the same way he adores and admires himself.

Running his company is for him nothing different from any other kind of competition, and he takes it as something where he must win. He would not stand himself if he wouldn’t. Recall the way his PR is managing the fact that a cluster made of Sun Micro servers is the fastest one managing databases: They talk about this the same way they talk of the Oracle boat winning the America’s Cup.

And there is where the matter lies. To become a winner requires him to find a loser, Otherwise, there is no winner. So considering his options, there seem to be three possible opponents: Cisco, IBM, and HP. Cisco being the weakest, in reality it’s already behind Oracle.

Both IBM and HP are phenomenal references. IBM being the master company in the IT industry, a reference for decades, and HP being the largest IT company by revenue. But from the two, HP is weaker, compared to IBM, and certainly within range for Oracle’s artillery.

In other words, HP is a “beatable” foe in the eyes of Oracle, weak enough in certain areas, like software, and big enough for any victory on them to be regarded as brilliant. Beating HP would be a triumph the industry would recognize.

IBM would still be out of reach for Oracle. At least, farther than HP. And despite the Pontifex’ ultimate wish to beat them too, the guy is probably still intelligent enough to declare he does not intend to “tease them too much”. We do not think Oracle is not going after IBM because Big Mouth Larry likes IBM; we think he realizes he would probably not succeed if he tried, and wants not to appear as a loser should anybody think he wanted to fight IBM.

So the Pontifex is looking for losers to beat so he can feel recognition for his victories, so he can feel a winner. And HP’s problem with that is just being in range. That is, in our opinion, the underlying cause in the Pontifex’ fixation with HP. The risk now for the Pontifex, however is not really being able to make it. Having the speed record of database processing does not necessarily mean winning anything.

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It goes without saying

 

Predicting the future has always been one of the strongest wishes man has had throughout times. Either to benefit from anticipated information, or to prevent eventual bad news, it’s sort of a constant throughout human history.

History is therefore full of examples about predictions, some of which became true (probably by chance), many more of which turned out completely wrong.

One of the most recognized visionaries in the IT world is, no doubt, Steve Jobs at Apple. In fact, his leadership within that company made it possible to actually contribute to define the future of that industry, for the good or for the bad. Apple’s influence is actually tangible in our opinion.

No matter how much this influence might have been (which could be subject to debate depending on personal opinions), it seems not all Jobs’ opinions are exactly right, however. Even successful visionaries might not be completely right.

His widespread comment about mid-sized android tablets being DOA is not exactly what is happening, according to Samsung’s Galaxy tablet performance so far.

Which is not necessarily bad for Apple anyway. Competition is healthy for an industry development, we’d all probably agree.

However, as important in our opinion as what was explicitly said, it is what was not explicitly quoted in Jobs comment. Certainly not usual for Steve Jobs to criticize competition openly or so directly, his strong attack to Android-based tablets indicated his concern about its potential success. In other words, he could have been seeing what Android could achieve…

If he foresaw the results Androids (through Samsung) are apparently achieving so far, then he was not that bad a visionary at the end of the day… and a master of propaganda, the way he presented his forecast.

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Teenagers buy too

 

Political systems that determine what party holds government for a certain period of years are based on people’s votes. Every number of years, elections are set up, and the party that gets the higher number of votes holds government until next election.

If voting age starts at, say, 18, a significant portion of voters in elections happening in year 2020, for example, will include a lot of new voters who were under age in the previous polls. Let’s use the US as an example.

When presidential elections come up in 2012, all the people who are today from 16 to 19 will be able to vote for the first time in their lives. So Republicans or Democrats that prepare those elections should consider all these teenagers as prospect voters and make sure they buy in even before they become actual voters.

And here we got another smart move from Apple, according to the report here… If the information delivered in it is correct, it would be a fact that Apple is not only selling well to current customers, but as well paving the way for maintaining and/or increasing its share in the smartphone and tablet markets at least in the future. The tablet market, predicted to grow real fast, will be based on current customers, but new ones that today are just teenagers that will have resources to buy stuff in the coming years.

Maybe they have to wait long for 6-year-old kids to be real customers, but the same principle applies to teenagers that will have enough money, or that can convince mom and dad to get one iPad or iPhone for them next year, or in 2012.

It is not frequent, for example, to find teenagers longing for a regular mp3 player, a specific Android phone or even a Zune or a Windows Phone 7 phone. But they actually do for iPhones, iPods or iPads. Not necessarily because of games… but more because of all the rest of things you may do with it in a recognizably “cool” way.

Skating, for example, is not that much about moving a certain distance differently than just walking or running. Is about stepping on a fashionable board and doing weird movements on it and with it while managing to keep balance and not getting hurt. Same with tablets or smartphones. It is more about how you do things on them than the actual things you do, which could be performed in a standard laptop or netbook.

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