This was the rise of Intel and Microsoft, firms who dominated the PC era. Now the PC era seems to be coming to an end and, like IBM, DEC, and HP did, Microsoft and Intel are now trying to adjust to the changing model. Yet it is likely that those on top at the end of the move will not be the same companies that were on top during the last two decades.
This is typically because they have to balance existing legacy lines against the new opportunity. And the folks in the firms supporting the status quo tend to be more powerful then the progressive managers driving change.
In companies like Google, Qualcomm, Marvell, and Freescale, there is no status quo to protect and these firms can run unfettered internally.
At the show each major PC vendor, including Dell, HP, Acer and Lenovo, showcased Android/ARM based products that could initially supplement and eventually replace a PC. But this isnt certain, as the marketing funding that drives demand generally comes from Intel and Microsoft and (with the exception of Apple who wont make this mistake) that lack of built-in demand generation could define how this market develops.
As a result Apple, rather than Google, could emerge as the new heir apparent. And Apple is rumored to be building its own ARM chip.
For Intel this means they cant switch priorities over to Atom from Core because of a fear that this move would collapse margins. And for Microsoft switching to Windows Mobile and subscription or advertising pricing for a complete Office solution would be even scarier financially.
Yet CES showcased, much like the PC decade did, that the market is moving with or without these two major players.
The user, frustrated with the low progress toward an appliance model, has started to move. Users wanted something that was more like a phone. But the PC became more like a little mainframe. While the PC cycle took about 10 years it also started without an eco system in place (other than general retail) to support it.
The existing PC eco system appears more than adequate to support a less complex product than it currently its supporting. This suggests this move will likely take between 3 and 5 more years to become fully established.
This suggests you need to start thinking about whether you want to buy these things and fully support them, allow the employees buy them themselves and expense them, or use a carrier or other service to manage this for you. And these arent the only choices, as the economic ownership choice could be completely separate from the management choice.
Youll also need to think about security, how you will set and enforce standards, and limit the coming complexity as you likely dont want to support three or more devices for every employee. I suggest organizing managers who likely will be bringing these in on their own nickel into methodical trials so you can begin building a competence with them before the wave hits.
You likely werent able to stop the iPhone. And these coming devices, including the iSlate, are vastly more useful than it is.
We appear to be at the forefront of what appears to be a 3 to 5 year cycle to begin the process of moving away from the PC. The complete move may take an additional 3 to 5 years (the laptop move took 20). But much like it was with PCs and then laptops, the impact on your organizations should become pronounced early in the cycle. And it will be unavoidable by the end of the first phase for most of you.
In fact, with Smartphone use, youve already likely had to rethink how you manage and support portable appliance-like devices you dont own.
For both Microsoft and Intel this move represents a lot of risk but also an opportunity to reinvent themselves. And it doesnt come without risk for Google or the ARM vendors or any of the initial suppliers either. Remember that the PC market started with Commodore in the lead and they failed before the switch to laptop computers had really begun.
With the latest showcase product from Google, the Nexus One, there has been huge number of issues that suggest their free model (free like a puppy is free) may not survive this transition either. And another vendor as yet unidentified, or Apple or even Microsoft both of whom have already functioning eco systems could dominate instead.
Change is only a problem if you dont anticipate it. The coming change is now clear, so make sure you arent blindsided, are prepared, and youll likely enjoy the ride.
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