Travelling On The Silicon Road

A Tablet market report from Goldman Sachs states “The OS platform wars could drive greater hardware commoditization over time. We believe that over time the more open platform vendors may have to impose standard hardware and user interface specs on handset and tablet OEMs to ensure that software developers have a uniform installed base. This move to standardization would narrow the ability for hardware manufacturers to differentiate their technology over time and could result in hardware commoditization like that found in the traditional PC market.”

With the gaining importance of software in the Mobile Internet Devices (MIDs), hardware’s role as a differentiating factor is indeed diminishing. And with that, so do the profit margins for the chip industry incumbents. So, how are the chipset players reacting to survive, if not thrive, in this evolving market?

Qualcomm shows a recent example - “Qualcomm will give web apps a boost”.
As a part of the company’s effort to enable a shift away from today’s fragmented set of native mobile environments, it is set to release shortly a set of applications programming interfaces geared to give Web-based applications deeper links into hardware. The company already supports Android, Blackberry, Windows Phone and WebOS mobile OSes among others. A move to Web-based applications would help it reduce the variety of platforms for which it needs to write software supporting its chips.

Web vs. native apps - as the mobile usage increases, both will grow with it and become valuable factors of product road maps. The question the product strategists need to ponder upon, however, is “what does my target audience need?” While the debate of web vs. native apps is not new, it does throw some interesting options in this backdrop of looming hardware commoditization.

One option is - The chipset vendors start conforming to the standard specs set by the open platform vendors. The hardware is strongly connected to the OS platform and with a proliferation of various mobile OS in the market, it is not an easy task supporting them all or even hedging on a few. Not enticing.

But what if a chipset vendor were to make inroads into web apps and get a deep link between web apps and its native hardware through some popular browsers? it can potentially get some interesting revenues by tapping the right web apps based on their target market – and remember that web apps is an open platform – no waiting, no approval. Its success is hinged on its adoption by the user community.

Having said that, the speed comparison (of compiled vs. interpreted code/web vs. native) will be there as well as cases, especially till the near future, where native wins over web but companies are working on those too (Qualcomm has been working for two years to optimize software so that browsers run as fast as possible on its chips). What has happened to desktop apps, can also happen to native mobile apps. Hmmm…. This may be one escape route from the commoditization problem.

I had mentioned about technology fitting serendipitously in developing countries in an earlier post. Just came across this news item which shows yet another use of a consumer device for an unintended but highly useful application.

Pediatric eye surgeons in India and elsewhere find that the iPhone’s security and features makes it the best platform to be used in tele-opthalmology to cure Retinopathy of Prematurity (RoP). An Indian eye hospital is piloting software that will push retinal images collected from patients in remote locations to the doctors’ iPhones. They can then quickly send their diagnosis and recommendations from their iPhones to the doctors in the location nearest to the patient. Laboratory assistants take pictures of the retinas of prematurely born babies and transmit them via broadband to pediatric eye surgeons, who could be hundreds or thousands of miles away.
It is envisioning of applications like these that will help to bridge the digital divide

Read an interesting story by EDN executive Ron Wilson about technology fitting serendipitously in developing countries.
 

NXP’s NFC (Near Field Communications) technology, the underlying technology of its contactless SmartCard MIFARE product was primarily targeted for subway ticketing and the like.
 

And it has found a market in rural India – in a high tech village banking scheme!
 

India has several villages which do not have a local bankbranch – the meager cash flow does not provide adequate return on capital to justify establishing a branch. Enter NXP – a trained villager with a cell phone handset with NFC and fingerprint scan capability acts as a lone banker. Authorization and authentication is provided by the swiping the client villager’s smart card and swiping his finger. Transaction takes place by dialing the central bank through the handset and records are updated on the smart card.
 

Everyone benefits – The village gets banking and NXP gets the market!
 

Do read the complete article

In his editor’s note, Majeed Ahmed of EETimes, Asia comments on CSSP (Customer Specific Standard Product) as an interesting turn point.

QuickLogic has broken from its FPGA past (hard time competing with the Coke and Pepsi of FPGA world i.e. Xilinx and Altera) by coming out with CSSP – an alternative design solution integrating the “application specific” functions (akin to ASSP) while incorporating a programmable fabric which allows additional “customer specific” functionality for flexibility and differentiation.

It is indeed a mutation in the semiconductor fabric, as pointed out by Majeed and a step towards trying to address the increasing challenges of the market. However I see it is another variant of the structured ASIC technology; trying to get a foothold between flexibility and cost plus time to market

…. and too early to term it as a new cross road in chip evolution.

Mobile connectivity was the main thrust in the recent Intel Developer Forum. The company said its 45-nm Penryn-based Montevina processor technology due out in 2008 will be the company’s first Centrino processor for notebooks to offer the option of integrated Wi-Fi and WiMAX wireless technologies in an adapter code-named Echo Peak. This option would ensure customers do not necessarily need to make a choice between 3G and WiMAX.  Montevina also boasts the capability to run both HD-DVD and Blu-Ray for media applications. The new PCs and motherboards will be rolled out by Lenovo, Acer, Asus, Toshiba and Panasonic. Intel is investing with KDDI in a trial in Japan in addition to the well publicized trials by Sprint & Clearwire in the US.
 
In the old times, system providers used to put their bets on any 1 standard (amongst the few major competing ones) and come out with a product based on that standard and see how the market reacts. Now, they roll out products supporting all the standards (or at least the major ones) lest they lose out on the market share. So it is 3G and WiMAX, HD-DVD and Blu-Ray…….
 

I read this interesting article by Cliff Edwards in the recent edition of Business Week.

It talks about how Intel’s “Broadband Man” (EVP, Sean Maloney) garnered support from Samsung, Motorola, Nokia and Sprint to get this technology to its present state.

The key technology was obtained by Intel when it purchased a company called Iospan Wireless from a Stanford university professor Arogyaswami Paulraj. Maloney then went on to woo the industry heavyweights for this standard (AT&T had earlier, in 2000, tried a precursor to WiMAX in Project Angel. The project however was a non-starter because of lack of industry standard and support)

While Intel has declared 2008 to be the year of WiMAX, the technology and businesses built upon it still have a lot to prove and better & cheaper devices are needed to get to mass market adoption. However, several big companies have a lot at stake here and it does look poised to alter the communications landscape; or as Ottelini said: we are on the cusp of a new global network.