The Beatles Create a Buzz

With the recent announcement that Apple's iTunes would now be offering all The Beatles' albums, an internet craze began.  Within the first 10 hours of the announcement, Google news found more than 3,000 stories on the announcement.  This type of coverage of a band that hit its prime nearly 40 years ago is unprecedented, and begs the question, how much hype and coverage would The Beatles have incurred during the internet era?  We will soon know more about this question, as this announcement only adds to iTunes 14 million songs offered and will surely increase the 10 billion songs downloaded yearly recorded by iTunes.  This is just another step in the direction for IT dominance by Apple, as they have continued to improve their competitive advantage in the internet music industry with the additional offerings of The Beatles.

Do you trust facebook?

With word that facebook is likely to introduce a new email service, one must consider the privacy capabilities of facebook.  According to the article "5 Ways Facebook Could Threaten Gmail," Facebook apparrently is about to launch its own email service.  But with the recent privacy issues concerning Gmail, does facebook have the cyber power to be more secure with personal data than Google.  My gut instinct is no, and i personally wouldn't trust facebook to handle my email.  However, Facebook has a reputation with the younger generation that may be more willing to try this out.  The only way to know this will be to wait and see, but something tells me this idea is gonna flop.

Is Microsoft slipping?

With the recent announcement that Microsoft CEO is choosing to sell nearly $2 billion of stock, one must wonder whether the feeling inside Microsoft headquarters is one of pessimism rather than optimism.  Like all things in life, the business world is under constant change, rarely does one company stay on top of a particular industry over a long period of time.  Microsoft has been at the forefront of the IT industry since the introduction of the computer, but has recently been rivaled heavily by companies such as Google and Apple as the computing industry has moved more mobile.  While Microsoft is launching its smartphone to compete with the aforementioned companies to compete in the smartphone market, it is quite apparent that the proportion of Mac users is steadily rising.

Therefore, this announcement may be a sentiment that Microsoft executives may feel the pressure from their competitors.  CEO Steve Ballmer states that he is excited about Microsoft's new product offerings and prospects, but its hard to believe he would sell as Microsoft just initiated a dividend boost and buyback company if he were that confident.  These are stock characteristics of a maturing company with low growth, which is where I believe Microsoft stands today.  It is likely we will see a new tech giant emerge as the software leader in the next 10-20 years, as the business world always has a way of being cyclical.

How much higher can Twitter go?

After reading the Article "The Twitter Effect," I was extremely surprised to learn that Twitter is the most widely used work in the English language, with a close second being Obama.  As a non Twitter user and someone who doesn't really pay much attention to social networks, I wonder how much further Twitter can go as a business.   Already valued at approximately $1.1 billion, the brand name Twitter has accomplished a lot in only 4 years.

This begs the question, would Twitter be as successful if it had a different name?  I often wondered the same thing about Google, who's name is now correlated with tech innovation and supremacy.  I really thing the catchy sounding tune name of Twitter has played a large role in the explosion of the social networking giant.  This leads me to believe that once the Twitter craze is over, Twitter will find it harder to remain as potent in its market.  I see Twitter reaching its peak in the next 2-3 years, before being supplanted by the next social networking tool that is bound to come.

Will The Microsoft Smart Phone Succeed?

With the release of the Windows Phone 7 smartphone coming Oct. 11, one must wonder how much market share Microsoft can take from Apple, Blackberry, and other smartphone providers.  With Windows limiting its provider to AT&T, they are pretty much in direct competition with Apple.  I believe as well as the article  "5 Reasons the Windows Phone 7 Will Fail" that limiting the provider to AT&T could be a colossal mistake.  This limits the availability of the phone that will already have struggles trying to penetrate an established market with strong reputations and brand loyalty.

One advantage, on the other hand, is the monopoly Microsoft has on the software market.  This could allow the Microsoft Smart Phone unparalleled compatibility with their smart phone and personal computers, thus creating a competitive advantage.  I believe this alone will allow Microsoft to take a good chunk of the smartphone market, mainly from Blackberry rather than the iPhone as most users of the iPhone are more than satisfied with Apple's product.

All in all, I believe the Microsoft Windows Phone 7 will be a moderate success as its going to face large problems entering a market well behind its competitors.  The real key will be being the innovative leader during the next generation of smartphones, which Microsoft already has a step up on its competition with its software compatibility.

Smartphones

As little as 6 months ago, I was part of what seems to be the severe minority of people who do not have a smartphone.  To show how behind the smartphone curve i was, my little sister has had 2 Blackberry's and 3 iPhones before I transitioned to the iPhone from the classic flip phone.  I always felt as though my phone was for texts and calls, therefore my cell phone was entirely sufficient.  Then, in early April I became eligible for the beloved upgrade, which I cashed in for the 3GS.   In hindsight I wish I could have waited for the iPhone 4, but the upgrade to the iPhone has been more than enough to make me happy.

Excluding the games that everyone enjoys, the iPhone has reaped rewards that I had no concept of before I had a smartphone.  Not only can I check and update my fantasy football team right from my phone, but i can literally instantly find almost any piece of information with a quick search on my phone.  I never could have imagined how superior having the iPhone is to a traditional phone, where now I feel that people with the old flip phone are out of date.  According to an article about smartphone satisfaction, users rated the iPhone the highest out of all smartphones.  The one complaint that was common among the iPhone is the short battery life, which doesn't actually affect the functionality of the phone itself but is just an annoying hassle.  If you haven't made the switch to a smartphone, I severely recommend it as a recent transfer, just be ready to check your email more than you ever thought possible.

The Netflix Effect

As a recent subscriber to Netflix, I can completely understand why movie rental stores are encountering financial problems.  For only $8.99 per month you can have access countless mail-in DVD's, as well as select video streaming through your computer, xbox, and other internet devices.  When considering it costs about $5 for a regular 5 day rental from Blockbuster, one wonders why anyone would even consider renting from blockbuster when you can get anywhere from 8-12 rentals a month from Netflix instead of the price of 2 at Blockbuster.

And with the recent news that Netflix has signed a deal with HBO and Showtime to stream their television series.  This means that Netflix users can have access to HBO and Showtime Series for $8.99 a month pus the movie viewing benefits, where some subscribers to HBO and Showtime pay $10-15 a month for each of these channels.  With just those figures, one can see that although Netflix and HBO teamed up for this partnership, Netflix also has the ability to damage their customer base in the coming years.  However, the one caveat in the deal is that HBO doesn't release many of their original series for streaming until 90 days after they air.

With 15 million subscribers and growing, Netflix along with Redbox have combined to completely change the movie rental industry.  And with the efficiency and information exchange required to operate this business models, it is easy to see that innovative information technology is required for these business models to be successful.  This is just one of the many industries that have been revamped by technology in the 21st century, and many companies in different industries under the same pressures as Blockbuster better take notice and adapt if they expect to avoid a Chapter 11 bankruptcy.