The CMB Technology Pulse Blog

Market Research Shows Most Consumers Won't Make The Switch

Posted by Kristen Garvey on Thu, May 13, 2010 @ 12:16 PM

Once again my hopes and dreams for an iPhone have been squashed right along with the rumor that Verizon was getting the iPhone by the end of the year.  Mashable reported this week that AT&T has the iPhone exclusively until 2012. This isn't the first time my hopes have been dashed and I am debating joining the Android camp, which Marketing Daily reports is taking a bite out of Apple .

The NPD Group reports Google's Android OS edged out Apple's OS for the number-two position behind RIM in the first quarter of 2010. So I'm not the only one getting tired of the wait, and quite honestly I'm not sure what I'm waiting for anyway. After all, Droid Does have a lot of apps.

So, are consumers willing to switch carriers to get the mobile device they want? Recently, in our online Consumer Pulse we asked over 1500 consumers "How likely is it that you will switch carriers to access a device that your current carrier does not offer?"  While 72% said a switch is not likely, 28% reported they are either moderately or very likely to switch carriers for a specific device. Personally, I think I fall into the 72% camp. And in a different set of research we conducted in March using Toluna's phone-based omnibus we found only 13% of the 1004 US consumers surveyed said they would pay the fees related to switching carriers to get a specific mobile device. 

I don't think I'm willing to switch carriers. Maybe all the Droid Does marketing is working. I'm becoming convinced that I can do everything I want with a Droid that I could have done with an iPhone.

What do you think? Would you switch carriers for a specific mobile device?

Posted by Kristen Garvey.  Kristen is CMB's Director of Communications, a mother of two, and loves mobile technology.

Tags: technology research, CMB, iPhone, research, mobile research, Google, Android, kristen garvey, smartphones, consumer insights

HP's Acquisition Of Palm Isn't About Depth But Breadth

Posted by Don Ryan on Wed, May 05, 2010 @ 10:28 AM

Not only does HP continue to acquire companies whose time is running out, but they are also extending their product lines to offer their customers more. 3Com may not have been the first networking company one would choose to acquire, but it did fill in gaps from HP's Procurve business. Similarly, Palm complements HP's iPaq phone line (new OS, touch screen technology, etc). What HP is showing is that an acquisition does not have to be the best, but rather it needs to provide more scope within a growing market and new technology platforms from which they can build new products.

In fact, the HP acquisition may not be as much about the smartphone business as it is about other mobile devices like netbooks and tablets.  There's no question about the importance of developing Web OS applications for all mobile devices. (See WSJ article for acquisition analysis). 

In a recent Bloomberg News interview with Michael Cuggino, portfolio manager for The Permanent Portfolio based in San Francisco, he talks about the Palm acquisition being about much more than the smartphone business and thinks maybe HP can "unlock the real value of the Web OS and fill a hole in their product line." Cuggino also talks about the importance becoming an integrated entity and the breadth of product lines...

In the mobile device space it is becoming table stakes to have a full product line that spans device types, user interfaces and operating systems. The importance of having a robust product line is consistent with technology research CMB recently conducted on consumer electronic device preference and usage. One of the things we asked among a group of approximately 700 US consumers was which device would you replace your current device with when you make a new purchase.

What we found is that there is a fair amount of substitution especially between netbooks and notebooks and tablets and netbooks. Not surprisingly, most smartphone users would likely replace their existing smartphones with a new smartphone, but we did see that 15% will say they will replace their smartphone with either a tablet or netbook.

These shifts underscore the importance of a vendor having a full line of products to maintain overall device market share as consumers switch from one device to another. What HP has recognized is that it is not as critical what the brand is that they acquired, but rather having a new brand in the first place that offers consumers a viable choice when they do decide to switch.

I will presenting more of these findings at the Netbook Summit taking place May 24th- 25th in San Francisco. We hope to see you there!

Posted by Don Ryan. Don is the managing director of CMB's technology practice. Don is an avid tennis player and enjoys reading political commentary and spy novels.

Tags: Tech Pulse, mobile research, chadwick martin bailey, market research, Don Ryan, Google, HP, netbooks, smartphones, Palm

Tech Pulse: Are Enterprise Software Companies a Thing of the Past?

Posted by Don Ryan on Thu, Apr 15, 2010 @ 11:36 AM

An article recently in Information Week caught my interest. Titled Global CIO: Oracle, SAP, And The End Of Enterprise Software Companies, it underscores the shift in thinking from the enterprise line of business and from IT executives on all enterprise applications. I would argue that heavy lift application implementation is increasingly becoming an anomaly due to difficult implementation and high investment cost.  To quote Bob Evans from Information Week in the article:  "It also means the days of big, blunt, mega-purchases of software are for the most part behind us--and for SAP and Oracle to continue to grow, they therefore need to step aggressively into new revenue streams other than software to keep investors happy." 

The recession has fundamentally and forever changed the way enterprises will acquire applications and for that matter many other parts of their IT infrastructure. What has saved the server business in the near term is the dramatic ten-fold increase in cost per processing unit productivity due to lower server prices, virtualization and improved processing power.  Although, I think the long term outlook holds marginal upside for on premise servers given the rapid deployment of in-house and cloud computing.  

No cost savings breakthroughs in delivery have taken place or are foreseen for legacy enterprise applications.  Conversely, web based, cloud delivered applications have a strong value proposition based on cost savings and administration efficiencies. The following chart summarizes the relative position of specific vendors based on recent research which CMB did with enterprise IT managers.  Not surprisingly, some of the newer entrants like Google and have a place in the more favorable quadrant.

This shift to applications through a services delivery model and the increasingly important role of implementation and management services through integrators, managed service providers and VARs will take place faster not slower than people think. A sea change among IT executives has already happened on acquisition and management of applications. The great news for application providers is that their core business benefit and functionality can be provided through these new delivery platforms and the vendors can still profit and thrive by adopting these new variable cost business models. The only question is which legacy companies can take the lead to acquire first mover status? In my mind the jury is still out.

To learn more download the full CMB Tech Pulse Report: Shifts are Starting in the Applications Status Quo

Posted by Don Ryan. Don is the managing director of CMB's technology practice. Don is an avid tennis player and enjoys reading political commentary and spy novels.

Tags: technology research, Tech Pulse, CMB, research, chadwick martin bailey, market research, Don Ryan, Google, IT solutions

Market Research Shows Netbooks Are Starting To Penetrate The Enterprise IT Market

Posted by Don Ryan on Tue, Mar 16, 2010 @ 08:47 AM

When I Google the term "netbooks" I get close to 16 million results. 16 million results for a new market entry!

The netbook market is growing rapidly for consumers, but we are also seeing growth in the enterprise. Similar to how smartphones slowly infiltrated the enterprise market, growth is slow but steady as the consumerization of IT continues.

In our CMB Tech Pulse Netbooks in the Enterprise we asked over 150 IT decision makers about their interest in netbooks, deployment strategies, as well as current and future use.

The findings from our netbook research shows a lot of interest with close to 40% considering deployment of netbooks in their organization and 20% already using netbooks in some capacity.

  • 20% are already using netbooks in the company for a handful of selected people
  • 38% have not deployed them yet, but are considering it
  • 29% do not currently have any netbooks deployed and have no plans to do so
  • 13% do not have any deployed, but have it in their budget to do so

Not surprisingly, we also see a trend that has heavier deployments in those organizations with a highly mobile workforce and in those companies that are using cloud computing applications.

Learn more by downloading our report or seeing us at the Netbook Summit taking place May 24th- 25th in San Francisco. We will be presenting our research and sharing our insight with many other thought leaders.

Posted by Don Ryan. Don is the managing director of CMB's technology practice.

Tags: technology research, Tech Pulse, CMB, research, mobile research, chadwick martin bailey, dell, Don Ryan, Google, IT solutions, HP, netbooks, netbook research

Google Chrome, Will It Shake Up The OS Market?

Posted by Don Ryan on Wed, Mar 03, 2010 @ 09:46 AM
GoogleChromeIn a Google blog post about the new OS, Google stated "It's our attempt to re-think what operating systems should be". We all know what happens when Google starts to re-think what something "should be", they reset the expectations and create a new standard. Just look at what they did in the browser/search market, they made Google a verb. Could they be on their way to doing the same thing in the OS market? It's too early to make that call, but it's worth noting they are in the game and when they play it's usually to win.

In our initial CMB Tech Pulse research we found Microsoft is off to a good start with Windows 7, but Google Chrome is something we should all keep our eyes on. We asked IT decision makers about the strengths and weaknesses of all the operating systems from Windows XP, Vista, and 7 to the Mac OS, Linux and Google Chrome. Our panel rated each OS in areas such as competitive licensing costs, security, ease of use and administration. The results were clear, we saw strong messages about the capability of each OS and we expect to see further divergence as newer solutions like Windows 7 and Google Chrome become more established. To see how each OS ranked among our panel download the free report Windows 7 Uptake Plans. One thing is clear, the concerns with high licensing costs may drive some companies towards open source OS alternatives like Google Chrome. It will be interesting to watch how Google Chrome impacts the 38% of our IT decision maker panel who stated they plan to standardize on Windows 7 for netbooks over the next 2 years. How will Google Chrome impact the netbook OS market? Stay tuned, we plan to keep a close eye on that.

Subscribe to the CMB tech blog to keep up to date with the latest trends. For more information on the Windows 7 Uptake Plans download the full report free.

Tags: technology research, market research, Don Ryan, Google, Microsoft, Google Chrome, windows 7