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Openness and Opportunities
                Android Aalto Community

                        Maksim Golivkin
                      Claudio M. Camacho




3.2.2011              Android Aalto Community
Experiments
           with Openness
           Maksim Golivkin




3.2.2011     Android Aalto Community
Introduction
           Maksim Golivkin
             Android applications developer
             M.Sc. student at Aalto University


           Android Aalto Community
              enthusiasts
              technology and business
              events
              collaboration




3.2.2011                       Android Aalto Community
Agenda
           trends

           Open Handset Alliance

           Android and Open Source

           Android enabled competition

           tablets




3.2.2011                      Android Aalto Community
Trends




3.2.2011    Android Aalto Community
How did that happen?




3.2.2011             Android Aalto Community
Open Handset Alliance




3.2.2011             Android Aalto Community
Not always Open-Source
   Process:
   1. new version is developed internally
   2. open sourced after official release

   Internal development enables
    1. innovations
    2. market momentum

   Negative issues:
   1. some bugs are not fixed for a long time
   2. enthusiasts are limited to contribute




3.2.2011                   Android Aalto Community
3.2.2011   Android Aalto Community
No Android User Interface

   Manufacturers modifications:
     Samsung - TouchWiz
     HTC Sense
     Motorola Blur
     LG, Sony skins

   Consequences:
     increased competition
     additional value for consumers
     OS upgrades are delayed




3.2.2011                  Android Aalto Community
Open-source

   Groups:
      XDA developers forum
      CyanogenMod developers


   Open-Source community:
     fast Android releases
     tools to make custom OS
     OS modifications and optimisations




3.2.2011                 Android Aalto Community
Android competes with Google


   Rebranded Android:
     OPhone
     Tapas

   Google services can be removed.
     Verizon sells devices with Bing
     Motorola manufactures devices with Baidu




3.2.2011                 Android Aalto Community
2011 Year of the Tablet

           first Android tablet launched on May 1, 2010.

           Galaxy Android Tablet on September 2, 2010

           22%* of tablet sales in 2010 Q4 were Android

           ... without any version designed specifically for Tablets




  * Strategy Analytics data

3.2.2011                         Android Aalto Community
The Android Market
           Stakeholders & Opportunities

           Claudio M. Camacho




3.2.2011      Android Aalto Community
Introduction
           Claudio M. Camacho
              project manager at Asio-Data
              M.Sc. student at Aalto University
              Android developer in my spare time

           Android Aalto Community
              coordinating workshops
              bringing speakers from the mobile industry
              collaboration with students and enthusiasts




3.2.2011                       Android Aalto Community
Agenda
           motivation

           main stakeholders: interests and concerns

           the Android Market

           opportunities for developers

           conclusions




3.2.2011                        Android Aalto Community
Teaser




           ** Image obtained from ArsTechnica




3.2.2011                                        Android Aalto Community
Phone Manufacturers
           ten years back
              differentiation by hardware
              differentiation by software
              service offer through own software

           currently
              just hardware manufacturers
              parts assembly
              little differentiation

           temporary solutions
              own applications store
              custom UI


3.2.2011                       Android Aalto Community
Mobile Operator
           ten years back
              full room for customization
              full control of the end-user
              charge per update
              charge per added service

           currently
              no room for additions
              no control over end-users

           temporary solutions
              permanency-based contracts
              special deals (e.g. comes with music)


3.2.2011                         Android Aalto Community
Platform Providers
           ten years back
              they did not exist at all
              phone manufacturers owned the market

           currently
              everything delivered through a platform
              role of cohesion
                  deal with manufacturers
                  deal with carriers
                  deal with developers
                  provide value to users

           excellent position for platform providers


3.2.2011                         Android Aalto Community
Customers
           ten years back
              buy once, use until it breaks
              additional features = new phone
              inability to pay for extra services
                  only operators were benefited

           currently
              full-time online
              services anywhere anytime
              additional features for free

           value co-creation in exchange for information



3.2.2011                         Android Aalto Community
Android Market in Brief
           centralized service for distributing applications
              different payment mechanisms for easy purchase
              social (ratings, comments)
              mechanisms to protect apps from piracy

           over 250,000 different apps*

           17 billion downloads in 2011**



   * androlib.com statistics
   ** Gartner forecast


3.2.2011                       Android Aalto Community
Publishing Apps
           publishing process relatively easy
              Google account
              market.android.com/publish/signup
              currently $25 per year

           free and paid apps through two different SLAs
               enables different revenue streams

           business models
              direct revenue (paid applications)
              advertisements
              gateway to digital services
                  subscription models
                  micro-payments and virtual currency

3.2.2011                       Android Aalto Community
Developers
           ten years back
              only possible to work as part of a firm
              low efficiency
              responsibility for the firm
                  including apps in phones
                  marketing

           currently
              total independence from firms
              new opportunities for startups
              up and running in several minutes
              cost-efficiency increased exponentially

           larger firms challenged by startups

3.2.2011                        Android Aalto Community
Conclusions

           newly-created opportunities through the Android Market

           new challenges for large companies
              a real threat or a new opportunity?

           interests and concerns on multiple stakeholders
               impossible to give a one-ultimate statement

           a magnificent era for developers and startups




3.2.2011                        Android Aalto Community
Coming Events
           Android Aalto Keynote #2
              Tuesday 8.2.2011 (18:00 – 20:30)
              Aalto Venture Garage (Betonimiehenkuja 3, Espoo)
              most interesting presentations
                 Android fragmentation, a valid concern?
                 business using the Android platform
                 new wave of Android-powered devices


           more information:
              www.androidaalto.org
              maksim@androidaalto.org
              claudio@androidaalto.org




3.2.2011                         Android Aalto Community
Thank you!




3.2.2011    Android Aalto Community

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On Android: Openness and Opportunities

  • 1. Openness and Opportunities Android Aalto Community Maksim Golivkin Claudio M. Camacho 3.2.2011 Android Aalto Community
  • 2. Experiments with Openness Maksim Golivkin 3.2.2011 Android Aalto Community
  • 3. Introduction Maksim Golivkin Android applications developer M.Sc. student at Aalto University Android Aalto Community enthusiasts technology and business events collaboration 3.2.2011 Android Aalto Community
  • 4. Agenda trends Open Handset Alliance Android and Open Source Android enabled competition tablets 3.2.2011 Android Aalto Community
  • 5. Trends 3.2.2011 Android Aalto Community
  • 6. How did that happen? 3.2.2011 Android Aalto Community
  • 7. Open Handset Alliance 3.2.2011 Android Aalto Community
  • 8. Not always Open-Source Process: 1. new version is developed internally 2. open sourced after official release Internal development enables 1. innovations 2. market momentum Negative issues: 1. some bugs are not fixed for a long time 2. enthusiasts are limited to contribute 3.2.2011 Android Aalto Community
  • 9. 3.2.2011 Android Aalto Community
  • 10. No Android User Interface Manufacturers modifications: Samsung - TouchWiz HTC Sense Motorola Blur LG, Sony skins Consequences: increased competition additional value for consumers OS upgrades are delayed 3.2.2011 Android Aalto Community
  • 11. Open-source Groups: XDA developers forum CyanogenMod developers Open-Source community: fast Android releases tools to make custom OS OS modifications and optimisations 3.2.2011 Android Aalto Community
  • 12. Android competes with Google Rebranded Android: OPhone Tapas Google services can be removed. Verizon sells devices with Bing Motorola manufactures devices with Baidu 3.2.2011 Android Aalto Community
  • 13. 2011 Year of the Tablet first Android tablet launched on May 1, 2010. Galaxy Android Tablet on September 2, 2010 22%* of tablet sales in 2010 Q4 were Android ... without any version designed specifically for Tablets * Strategy Analytics data 3.2.2011 Android Aalto Community
  • 14. The Android Market Stakeholders & Opportunities Claudio M. Camacho 3.2.2011 Android Aalto Community
  • 15. Introduction Claudio M. Camacho project manager at Asio-Data M.Sc. student at Aalto University Android developer in my spare time Android Aalto Community coordinating workshops bringing speakers from the mobile industry collaboration with students and enthusiasts 3.2.2011 Android Aalto Community
  • 16. Agenda motivation main stakeholders: interests and concerns the Android Market opportunities for developers conclusions 3.2.2011 Android Aalto Community
  • 17. Teaser ** Image obtained from ArsTechnica 3.2.2011 Android Aalto Community
  • 18. Phone Manufacturers ten years back differentiation by hardware differentiation by software service offer through own software currently just hardware manufacturers parts assembly little differentiation temporary solutions own applications store custom UI 3.2.2011 Android Aalto Community
  • 19. Mobile Operator ten years back full room for customization full control of the end-user charge per update charge per added service currently no room for additions no control over end-users temporary solutions permanency-based contracts special deals (e.g. comes with music) 3.2.2011 Android Aalto Community
  • 20. Platform Providers ten years back they did not exist at all phone manufacturers owned the market currently everything delivered through a platform role of cohesion deal with manufacturers deal with carriers deal with developers provide value to users excellent position for platform providers 3.2.2011 Android Aalto Community
  • 21. Customers ten years back buy once, use until it breaks additional features = new phone inability to pay for extra services only operators were benefited currently full-time online services anywhere anytime additional features for free value co-creation in exchange for information 3.2.2011 Android Aalto Community
  • 22. Android Market in Brief centralized service for distributing applications different payment mechanisms for easy purchase social (ratings, comments) mechanisms to protect apps from piracy over 250,000 different apps* 17 billion downloads in 2011** * androlib.com statistics ** Gartner forecast 3.2.2011 Android Aalto Community
  • 23. Publishing Apps publishing process relatively easy Google account market.android.com/publish/signup currently $25 per year free and paid apps through two different SLAs enables different revenue streams business models direct revenue (paid applications) advertisements gateway to digital services subscription models micro-payments and virtual currency 3.2.2011 Android Aalto Community
  • 24. Developers ten years back only possible to work as part of a firm low efficiency responsibility for the firm including apps in phones marketing currently total independence from firms new opportunities for startups up and running in several minutes cost-efficiency increased exponentially larger firms challenged by startups 3.2.2011 Android Aalto Community
  • 25. Conclusions newly-created opportunities through the Android Market new challenges for large companies a real threat or a new opportunity? interests and concerns on multiple stakeholders impossible to give a one-ultimate statement a magnificent era for developers and startups 3.2.2011 Android Aalto Community
  • 26. Coming Events Android Aalto Keynote #2 Tuesday 8.2.2011 (18:00 – 20:30) Aalto Venture Garage (Betonimiehenkuja 3, Espoo) most interesting presentations Android fragmentation, a valid concern? business using the Android platform new wave of Android-powered devices more information: www.androidaalto.org maksim@androidaalto.org claudio@androidaalto.org 3.2.2011 Android Aalto Community
  • 27. Thank you! 3.2.2011 Android Aalto Community