Cloud is benefiting Microsoft, Amazon, Google

It is easy to rent access to computers for a monthly fees rather than buying them and maintaining them for a lifetime. Cloud has proved to be a profitable business for Microsoft, Amazon and Alphabet as large enterprises shift to Internet-based services to host and manage their data. (Alphabet – parent company of Google). These 3 companies excelled their profit estimates for the last quarter with major contribution coming from cloud computing services they offer. On the contrary, technology companies like IBM, HP, EMC (will be merging with DELL) etc. are seeing a downtrend with decline in sales of their traditional hardware, software because of the cloud providers. Google, Amazon and Microsoft provide their computing services to many companies who are eagerly seeking for low cost alternatives. Otherwise those companies would have gone for traditional hardware, software from HP, IBM.

Kalyan_ Cloud

While many firms try providing cloud services in the market, winning in cloud is not for everyone! Amazon, Microsoft and Google invest significant sums to build huge, so called state-of-the-art data centres. “Developing a data centre infrastructure along with the required marketing and operations support is simply beyond the reach of all, but to the companies like Amazon, Google, Microsoft” says chief analyst John Dinsdale from Synergy Research Group.

Many of the Indian IT companies like TCS, Infosys, Wipro are already focusing in the digital and Cloud computing services partnering with companies like Microsoft. Indian IT companies are seeing a reduction in larger deals from customers who traditionally rolled out tenders of hundreds of millions of dollars, but they are many transactions from customers in lower value deals linking with Cloud and digital. Like Google’s CEO Sundar Pichai said “Every business in the world is going to run on cloud eventually” let us see how it rains dollars!

Please refer to Bloomberg, The Walls Street Journal, tech.firstpost.com, Forbes for more details.

Google Glasses and Education ?!!

Most of us might have heard of Google Glasses. Augmented Reality (AR) is finally been in live. AR merges the physical and digital worlds in making the real world more interactive to the user.

Mobile AR

Mobile continues to be the preferred device for AR application and is expected that, by 2017 2.5 billion mobile AR applications will be installed.

AR offers an innovative learning experience by merging digital learning material over the physical space. Each learner can control his/ her own learning, manipulating digital information and objects for better understanding.

For example when you and your niece are walking across a park, your niece can point the AR browser in the smartphone to a seasaw in the park and understand the physics behind how it works.

In subjects like physics, chemistry or biology, where it is difficult and time taking to understand the concepts in class, AR will be of great aid in Education. Even in complex tasks like firefighting, let it be surgeries, AR can be used for training easily.

Risks of failure in AR is minimal as compared to practical real object based training i.e. a heavy fall while demonstrating firefighting (happened in some cases in India), can be avoided using AR based training programs. Researchers have found that with AR based training its takes shorter time to understand and the performance of the trainees are good compared to conventional training.

AR in Indian Education:

Though there is still a challenge of reaching the digital resources to majority of school going kids in India due to financial challenges of their parents, most of them posses mobile (low end smart phone that starts from Rs. 3999) – thanks to domestic manufacturing, high competition that lower prices.

Mobile AR provides students access to key digital information right from their homes without the need for any other device to supplement their textbooks. Parents can use mobile phones to help their kid’s educational needs!!

However, quality of broadband connectivity is still a challenge in India, for Mobile AR to reach common man. Hope the spectrum issues are solved soon for grea

Businesses in India should focus on branding

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Summary

  • Technology brands like Apple and Google are dominating in Brand Valuation, but cannot stay on top without new innovations and design.
  • This list is based on three parameters: economic profit, role of brand and brand strength.
  • Personal technology brands like Apple and Google have pushed the leader of the last 13 years, Coca Cola, to No. 3
  • Google, Coke and McDonald’s have a brand value higher than brand revenue.
  • Apple and Google do two things better than most brands: they are great at design and superb at doing the thinking for the consumer. Their entry into wearable gadgets like watches and glasses will test these strengths.
  • In the Indian list, the brand value is significantly lower than brand and business revenue. Brands need focus and consistency. Brand longevity without innovation may lead to brand respect but does not create brand value.

Facts

  • The top 100 in the list have 55 brands from the US, 9 from Germany, 7 each from Japan and France.
  • Nokia is now 59 after being in top five for few years.
  • Blackberry if out of 100
  • Philips at 40 and Sony at 46
  • No Indian Company yet in Top 100 Global List.

Discussion:

  • Discussion on Technology brands versus FMCG brands.

FMCG:

  • FMCG brands like Coke work on habit, distribution and owning consumer mind space. This combination cannot be copied easily and, hence, brand leaders in FMCG tend to be leaders for decades.
  • A good example is Thums Up in India, which survived due to consumer loyalty, even when Coke tried unsuccessfully to kill it. In FMCG, innovation is slow and gradual, unlike in technology where it is disruptive.

Technology:

  • For Technology bands, missing an innovation in technology puts a company back by at least five years. Market shares swing in decimal points or small numbers in FMCGs over a year, while they can swing by more than 10 or 20 points in a few months in technology.
  • In the Indian list, the brand value is significantly lower than brand and business revenue in each case. It tells us that a collection of businesses doesn’t make a powerful brand but a collection of brands makes a powerful business.
  • We in Indian business value metrics like revenue, profit and market capitalization. Brand value, which is strategic, is common to all three and, hence, worth growing. Indian businesses must spend energy on branding. India is a huge consumer market.

Reference: “Why Indian businesses must spend energy on branding” The Economic Times, 7th November 2013