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****************** AT THE CENTER ******************
The Silicon Valley World Internet Center thanks its Sponsors for their continuing support: EXECUTIVE SPONSORS * Amdocs, Inchttp://www.amdocs.com KNOWLEDGE NETWORK PARTNERS * Inclusion Inc.http://www.inclusion.net CHECK OUT OUR WEBSITE:http://www.worldinternetcenter.com Past copies of our newsletters and directions to the Center are available on the Web site. ALL PROGRAMS ARE HELD AT THE CENTER UNLESS OTHERWISE NOTED. *************************************** ***CENTER APOLOGY FOR MISDIRECTED EMAIL TO ITS ONLINE COMMUNITY:
MONDAY & TUESDAY, OCTOBER 1 - 2, 2001 ***PUB: THURSDAY, OCTOBER 4, 2001 ***2-DAY IBM Linux COURSE: MONDAY & TUESDAY ***TECH DEMO: THURSDAY, OCTOBER 11, 2001 ***PUB: THURSDAY, OCTOBER 11, 2001 ***SYMPOSIUM: TUESDAY, OCTOBER 16, 2001 ***SYMPOSIUM: WEDNESDAY, OCTOBER 17, 2001 ***CHALLENGE-THE-EXPERT: TUESDAY, NOVEMBER 27, 2001
-- The Center Staff
The Center would like to thank Robert Noakes (an independent consultant) who, once again, brilliantly facilitated this Think Tank Session; and Patric Carlsson (Principal at Research|Strategy|Business) for his thought-provoking presentation with a global perspective on the MVNO development, including Virgin Mobile's market activities. The Center would also like to acknowledge the high level contributions from the twenty-two participants! A short summary is below. The full proceedings from this Think Tank Session will be available on the Center's Web site within 3-4 weeks. The Silicon Valley World Internet Center held a Think Tank Session on the future of mobile business, addressing specifically the emergence of Mobile Virtual Network Operators (MVNOs) and whether MVNOs are capable of moving forward the mobile service business in the United States. At this Session, twenty-two participants discussed this movement and its impact on telcos. For the purpose of the day's discussion, the following was used as the MVNO working definition: "In its simplest form, a MNVO is a mobile wireless service provider of voice and data services that uses (or leases capacity of) the wireless communications network of a third-party carrier." Participants identified both the facilitating factors and the challenges for MVNO business models. Overall, the group agreed that highly focused branding and marketing are key to successful MVNO adoption along with a clear understanding of consumer needs and their wireless usage patterns. The participants emphasized that the first to market will have a competitive advantage and be in the best position to take advantage of opportunities for revenue generation through marketing and sales of products associated with highly known brands, including Virgin, CNN, and MTV. Participants at the Session currently working with large telcos in Europe, Asia and the U.S. reinforced that telcos are committed to the MVNO model with or without brand-related partners. As is well known, telcos have crossed the proverbial Rubicon (Julius Ceasar) in the costly purchases of capacity, especially 3G, and are committed to recouping these investments. The opportunities that arise from entering the MVNO market provide an alternate to telcos to generate revenue and cash flow, for instance, by leasing infrastructure capacity and revenue sharing from service-partnering. Overall, telcos have an incentive to enter this space from a customer perspective. As customers move from MVNO to MVNO (for example, from Virgin to MTV), the telco retains that customer through the services of the MVNO. A PERSPECTIVE ON GLOBAL DEVELOPMENTS Think Tank facilitator Robert Noakes opened the Session, including a brief discussion of the MVNO working definition. Although the MVNO working definition was based on 2.5G and 3G broadband networks, the group touched upon the incorporation of other networks such as 802.11. The ubiquitous development of the wireless space will involve the interoperability of networks along with a device capable of accessing all of these networks. For the purpose of the Session, 2.5G and 3G remained the underlying assumption for the day's MVNO discussion. Patric Carlsson from Research|Strategy|Business sparked off the day's discussion with a presentation on MVNO global developments, starting off with aspects of the MVNO business model(s) and concluding with current market developments in Europe, Asia and the United States. (Refer to Carlsson's PowerPoint presentation for full details.) While the European market is not homogenous, it can be characterized with at least 10 highly penetrated mobile markets, four to five infrastructure carriers, the incorporation of standards (GSM/GPRS) with international roaming and interoperability, and from 2 to 6 MVNOs in each of the 10 mobile markets. Voice and data are the main markets in Europe. In Asia, the MVNO market development is not as visible as in Europe. For the most part, Virgin Mobile is the pioneer in the Asian market. The opportunity for customer churn is low. There is, however, high potential for new markets, but in some areas there is no infrastructure in place, which creates the challenge. In the U.S., WorldCom can be considered a MVNO as it does not own any of its infrastructure, but leases it from carriers. The MVNO market in the U.S. is purely data with providers such as GoAmerica, Motient, Palm.net and OmniSky. Carlsson emphasized that U.S. carriers are, indeed, upgrading their networks. The latter is especially true on the East Coast, however, devices are yet to be marketed. VIRGIN MOBILE: THE CASE STUDY Carlsson presented a case study of Virgin Mobile. Virgin has received most attention in United Kingdom by reselling services of Orange and Vodafone and becoming the fastest growing provider of wireless services in that country last year. The company was launched in 1999 in the United Kingdom utilizing Points of Presence (POPS) targeted at the younger generation of trend setters, reaching 1 million customers this past summer with 50 percent of its customers coming from churn. Overall, Virgin Mobile's business model incorporates pre-paid services, targets 18-33 yr. olds, and incorporates a low Average Revenue Per User (ARPU) target, allowing more flexibility for roaming. In Australia, Virgin Mobile has partnerships with Optus and Cable & Wireless and with Singtel in Singapore. Virgin has just entered into the U.S. market and is currently considering its partner options. Much of the following group discussion centered around Virgin's strong brand. Given Virgin's strong branding and 'lifestyle' trend, Virgin Mobile is used to push existing Virgin services and products, including travel, music and banking. Virgin understands its customers and the importance of marketing; their services and products are all about branding. Brand loyalty programs in the United Kingdom are so hot that some consumers carry two to three devices for separate loyalty programs. The watchwords for this discussion are "profile and communicate." First, find out what the customers want and then communicate that to them. Some participants noted that this sort of lifestyle development is not incorporated in the marketing strategies in the United States. BUSINESS CUSTOMER VS CONSUMER Discussion ensued around U.S. enterprise adoption versus the rampant consumer adoption in Europe and Asia. Some participants opined that the big dollars for getting the MVNO concept off the ground in the U.S. are in the business sector, while others argued that American teenagers and young adults have an abundance of discretionary income available for use in the MVNO arena for branded products and services. The group was in full agreement, however, that the industry is in its infancy with blatant indicators of this in both services and products. Downloads in the form of wireless advertisements are generally very unsophisticated, hard to read and do not communicate the message well to the consumer. Also, telecommunications and data communications have not yet converged in the psyche of the companies producing devices. Companies have yet to market a single device to handle all consumer needs. The consumer versus the business customer discussion continued into the breakout group activities. In the breakouts, participants were asked to put together a business model for the U.S. market capable of successfully penetrating at least 60 percent of a given target group. Each group was responsible for identifying the target group, the profile of this target group, services, a branding strategy, necessary partnerships, and revenue-sharing options. Three of the groups focused on consumer markets (and interestingly, two of which were related to products and services branded around sports) and the fourth group focused on the enterprise customer. (Refer to the Session proceedings for further detail on the results from the breakout groups.) THE MVNO IMPACT ON TELCOS The group consensus was that telcos are committed to the MVNO market, with or without the existence of independent MVNOs in the marketplace. Telcos have spent tremendous amounts on licensing and infrastructure to leave the market to chance. If MVNOs do not rush into this market space, telcos will develop their own market-brand portals for selling products and services as Telia has done in Sweden. But, in most case, the telco may need to subvert its brand to the better-recognized brand of a MVNO. Will telcos do it? The group agreed that they will, indeed, give up brand position for revenue generation to recoup past investments. The customer wants services; they do not care about how they are delivered. Just as imode never mentions the Internet, Virgin will never bother the consumer with the fact that it leases capacity from Vodafone or One2One. After all, consider the most widely asked question on mobile phone: "Where are you?" not "Who is your carrier?" The current mobile computing world is full of challenges. Significant differences exist in the speed, latency, availability, and dependability of wireless networks. Handheld devices vary wildly in terms of displays, operating systems, user interfaces and performance characteristics. It seems as though new content creation and delivery methods are introduced on a monthly basis. This rapidly changing world makes it difficult for decision makers whose choices today need to be viable well into the future. Rick Brennan will briefly discuss these challenges and demonstrate an approach to handling mobile content that allows for interactive access to existing Web, CAD, and other document file types as well as the capability to create very efficient and powerful XML-based mobile content applications. SoftSource's ClearView suite of products represent a class of mobile solutions that enable effective use of existing content and content creation tools while opening the door to techniques for creating impressive new user experiences. ABOUT SOFTSOURCE CORPORATION SoftSource (http://www.softsource.com) builds software tools that bridge the gap between the desktop and mobile end-user experience. By delivering diverse, graphically rich content to mobile devices, SoftSource's tools make the smart mobile device a more compelling medium for content providers, developers, and end-users. With locations in Broomfield, Colorado, and Bellingham, Washington, SoftSource was founded in October 2000. The company will launch initial products in Q4 2001. ABOUT RICK BRENNAN Rick Brennan has been managing technology ventures both within large corporations and at startups since 1989. Before becoming CEO of SoftSource, Mr. Brennan held the top post at ZoomOn, Inc. where he set up the U.S. business of an award-winning Swedish software developer. Prior to ZoomOn, he held positions as Vice President of Operations, Software Development, and Business Development at Requisite Technology. Prior to that, Mr. Brennan was Vice President of High-Tech Industries at General Electric. Mr. Brennan's experience also includes stints as Director of Web Marketing and Development at Sun Microsystems as well as Manager of Web Services at National Semiconductor.
IBM, an Executive Sponsor of the Center, is offering a two-day course on October 8 & 9 in San Francisco for those: * Interested in learning basic Linux skills with hands-on training,
and The deliverables from this course include: * You will get a jump-start with the Linux(TM) Operating System
(OS) and IBM's e-business infrastructure software. COURSE & ENROLLMENT INFORMATION IBM Course Code: QLS01 LOCATION IBM Education Center F16, IBM Corporation
At this Tech Demo, come hear about IBM's Linux strategy from Steve Curtis as well as interact with him during the second part of his presentation. Mr. Curtis will give an overview of tools, middleware, and hardware as well as a demo of some of IBM's Linux offerings. For sometime, IBM has been very open about its commitment Linux as a viable e-business platform. IBM is convinced that Linux is suitable for infrastructure tasks and also applications environments. Linux may have come through the back door from techies, but IT managers are now asking 'can we use this for something more?' With over 2,400 enterprise-class applications now available for Linux in IBM Solutions Directory, IBM and its partner are winning Linux contracts, including one for Integrated Genomics, a DNA analysis firm using Domino on Linux. Linux customers are benefiting from its reliability, flexibility, and cost on medium-sized Web servers, new applications, and server consolidation. And IBM has not stopped there. IBM is focusing on Linux scalability through high-end symmetrical multiprocessing. Come hear more from Mr. Curtis at this Tech Demo! Those who attend the Tech Demo are welcome to stay for the Center's Pub from 5:00 - 7:00 p.m. ABOUT STEVE CURTIS Steve Curtis is currently Marketing Manager, Linux Solutions Marketing for the IBM Software Group out of San Francisco. He is responsible for working with strategic software partners helping IBM deliver business solutions on Linux worldwide. Prior to this position, he has held numerous marketing management, strategy, and business development positions across channels, ISVs, and sales. Mr. Curtis started his career with IBM in December 1986 as a systems engineer, specializing in PCs, LANs, communications, and software interoperability. Then, as an Account Development Manager, he focused on multi-year, complex customer projects for finance and manufacturing accounts in San Francisco and the Bay Area. Other prior positions include Sales Manager for an IBM, Apple Computer, and Novell alliance. ABOUT IBM IBM (http://www.ibm.com) strives to lead in the creation, development, and manufacture of the industry's most advanced information technologies, including computer systems, software, networking systems, storage devices, and microelectronics. IBM's worldwide network of solutions and service professionals translate these advanced technologies into business value for its customers. There is no fee to attend. Registration is not necessary but highly recommended. Send your name, title, company, email address, and telephone number to: Ms. Glenda Garcia
At the Pub, Steve Curtis will discuss IBM's Linux strategy and the continued developments around Linux! As is well known, for sometime IBM has been very open about its commitment Linux as a viable e-business platform. IBM is convinced that Linux is suitable for infrastructure tasks and also applications environments. Linux may have come through the back door from techies, but IT managers are now asking 'can we use this for something more?' With over 2,400 enterprise-class applications now available for Linux in IBM Solutions Directory, IBM and its partner are winning Linux contracts, including one for Integrated Genomics, a DNA analysis firm using Domino on Linux. Linux customers are benefiting from its reliability, flexibility, and cost on medium-sized Web servers, new applications, and server consolidation. And IBM has not stopped there. IBM is focusing on Linux scalability through high-end symmetrical multiprocessing. Come interact with Mr. Curtis during the evening on the development of Linux and IBM's commitment to Linux. ABOUT STEVE CURTIS Steve Curtis is currently Marketing Manager, Linux Solutions Marketing for the IBM Software Group out of San Francisco. He is responsible for working with strategic software partners helping IBM deliver business solutions on Linux worldwide. Prior to this position, he has held numerous marketing management, strategy, and business development positions across channels, ISVs, and sales. Mr. Curtis started his career with IBM in December 1986 as a systems engineer, specializing in PCs, LANs, communications, and software interoperability. Then, as an Account Development Manager, he focused on multi-year, complex customer projects for finance and manufacturing accounts in San Francisco and the Bay Area. Other prior positions include Sales Manager for an IBM, Apple Computer, and Novell alliance. ABOUT IBM IBM (http://www.ibm.com) strives to lead in the creation, development, and manufacture of the industry's most advanced information technologies, including computer systems, software, networking systems, storage devices, and microelectronics. IBM's worldwide network of solutions and service professionals translate these advanced technologies into business value for its customers.
This Symposium is part of a two-part Symposium Series on the future of Realtime Location Systems (RTLS). This is the first symposium and it focuses specifically on the usage of RFID tag technologies in the auto industry. The second, scheduled for October 17, focuses on the defense industry. Invited 12-15 participants will have the opportunity to interact with one another and discuss the following: * What are the currently deployed RFID tag technologies for supply
chain management (SCM) in the automobile industry? Those who have an understanding of RFID tag technologies and realtime location systems (RTLS) from a technology background and who also understand the evolution of the market and can make a business case for their usage in the area of supply chain management (SCM), should contact the Center by email. In the email, send the following information: name, title, company, email address, phone number, and bio (including involvement in RDIF and RTLS) to: Dr. Venilde Jeronimo
This Symposium is part of a two-part Symposium Series on the future of Realtime Location Systems (RTLS). This is the second symposium and it focuses specifically on the usage of RFID tag technologies in the defense industry. The first, scheduled for October 16, focuses on the auto industry. Invited 12-15 participants will have the opportunity to interact with one another and discuss the following: * What are the currently deployed RFID tag technologies for supply
chain management (SCM) in the defense industry? Those who have an understanding of RFID tag technologies and realtime location systems (RTLS) from a technology background and who also understand the evolution of the market and can make a business case for their usage in the area of supply chain management (SCM), should contact the Center by email. In the email, send the following information: name, title, company, email address, phone number, and bio (including involvement in RDIF and RTLS) to: Dr. Venilde Jeronimo
The technology exists. So why do so many businesses crash and burn when it comes to launching successful eBusiness strategies? Why do flashy Web sites send customers to a 1-800 number that can be accessed only during "normal" business hours? Why do executives who market toys and games refuse to listen to their own children? According to IBM's Internet guru, Mr. John R. Patrick, it's all about attitude!! Our inability to harness the full power of the Internet has much less to do with the technology itself than with the cultural and psychological barriers that straitjacket our thinking about it. In his book, "Net Attitude," he reveals the strategies and more important, the mindset, that will allow you and your company to flourish in the age of connectivity. Drawing from a wide range of examples from the worlds of business, technology, politics, education, and popular culture, during the first hour of this program, Mr. Patrick will explore the profound implications of adopting an Internet attitude and how it will transform you and your business. Audience participants will be able to interact with Mr. Patrick during the second hour in a facilitated, knowledge exchange. Mr. Patrick's book, "Net Attitude," can be pre-ordered through Amazon.com. ABOUT JOHN M. PATRICK Mr. John M. Patrick is Vice President of Internet technology at IBM Corporation. As IBM's chief Internet technology officer, he leads the company's efforts for the next generation of the Internet. Mr. Patrick is also closely involved in IBM's aggressive backing of the red-hot Linux movement. However, if you read between the lines of Patrick's official job description -- or have heard him deliver cutting-edge remarks at conferences throughout the world or read one of the many articles he's been featured in -- you'll see that John's unofficial title is Internet visionary. It is one of the reasons why Business 2.0 recently named him as one of the industry's most intriguing minds, and why Network World called him one of the 25 most powerful people in networking. Mr. Patrick was a founding member and is now the chairman of the Global Internet Project, a founding member of the World Wide Web Consortium at MIT in 1994, a senior member of the Institute of Electrical and Electronics Engineers, and a member of the Internet Society and the ACM. He is an advisor to several new Internet companies, including Lou Dobbs' and Sally Ride's Space.com and Mary Furlong's ThirdAge Media. He is also an advisor to IntraLinks and Neoteny, a new incubator in Japan. While at IBM, Mr. Patrick has created a number of innovative programs including the alphaWorks Web site, which is IBM's on-line research and development laboratory for advanced Internet technology, and IBM's successful "Get Connected" program to expand the use of the Internet both within the company and to serve as a model for other companies. Mr. Patrick joined IBM in 1967 and spent the first half of his career in various sales, marketing and management positions. He was a pioneer and developer of IBM's leasing business at IBM Credit Corporation, today the largest computer leasing company in the world. He was subsequently the chief financial officer of various business units of IBM and was also vice president of operations for IBM's Computer Integrated Manufacturing Business. In 1992, Mr. Patrick became vice president of marketing for Personal Systems and was responsible for creating the successful ThinkPad brand. He earned a B.S. in Electrical Engineering from Lehigh University and an M.S. in Management from the University of South Florida. He also has a law degree (LL.B.) from LaSalle University, which he earned during his military service. An individual who leads by example, you can access further information about Mr. Patrick and his activities through his innovative personal web site: http://www.ibm.com/patrick. Registration is not necessary but highly recommended due to limited seating. To register, send the following information: name, title, company, email address, and phone number to: Ms. Glenda Garcia
The Pub Talk begins at 6 p.m. The Pub gathers 80-100 mid- to high-level executives every week and, as always, is a great place to come and meet people from the Silicon Valley and all over the world. Representatives from small start-ups and major companies to venture capital and academic join in the exchange at the Center's Pub. It's...
For directions, please visit http://www.worldinternetcenter.com and click on directions. The dress is casual and there is no fee to attend. Just bring your good ideas! Companies with an interest in giving a Pub Talk should contact
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