Welcome!

Web 2.0 Authors: Liz McMillan, Pat Romanski, Elizabeth White, Natalie Lerner, Dana Gardner

Related Topics: Cloud Expo, SOA & WOA, Virtualization, Web 2.0, Security, SDN Journal

Cloud Expo: Article

Carriers, Apple, Google, Microsoft... Fighting Over Slices of the Pie

Part 3 | Do the bit-carriers really have an open playing field to do what they want?

Much of the dialog over net neutrality seems rather dated. This is understandable, since the debate has been going on since last century.

The January 14th Federal Appeal Court decision in favor of the Internet access providers gave those companies (apparently) a degree of latitude to selectively block or prioritize edge provider services. We know that they want to do this, even though they might be coy about admitting it. Verizon, the plaintiff in the recent appeal case, issued a statement saying that nothing much will change as a result of this decision. We all expect Verizon and the other ISPs to take advantage of this change to the maximum extent they can. If they don't their shareholders might be a bit upset, after spending all that time and money.

However, there's more to this than the presence or absence of the FCC's now depleted Open Internet Rules, now substantially demolished. Do the bit-carriers really have an open playing field to do what they want? Since this debate started, the Internet has moved on. As a result the expectations of the access service-providers on one side, and the network neutrality proponents on the other, may both have to be revised. In my last blog on the topic of net neutrality, I hinted that there might be other factors in play that could make the whole concept less simple than it was when the topic first became hot. One of these factors is the role (and power) of the device manufacturers. Let's start there.

Apple was one of the first companies to demonstrate that there's more than one way to build a walled garden. While the Internet access providers dreamed of an end to net neutrality so they could control and charge for the flow of media from edge providers to content providers, Apple and others have already succeeded in doing something similar, and without spending huge amounts on legal actions and lobbying. And without upsetting their customers much, either.

In the mobile world, users of iPhones are pretty much limited to the apps chosen by Apple and offered in the Apple App store. By and large, those Apple-selected apps, which often dominate the users' experience, define the edge providers that the iPhone can access. Of course, general-purpose web browsing is still available, but most people live quite happily within the walled garden of apps approved by Apple. Apple led the way in circumscribing user behavior in this way, but the fashion quickly caught on. Android users have the Google (Play) store, and Windows Mobile users have the Windows Phone Store.

We can see the same thing happening for fixed-line Internet customers using desktops and notebooks. Oddly, Linux users were the first to experience the app-store approach. Some Linux distributions have long provided their users with an easy route to install approved applications from online repositories; non-approved apps are still available, it's just harder work to get them. With recent releases of Apple OS/X (Snow Leopard onward), the default way of buying software is via the Apple store; buying direct from a third-party vendor is starting to feel like a rather exceptional thing to do, as users are challenged when they try to bypass the store and have to tweak some security settings to make it possible to install a non-official app. From Windows 8.1 onward, Microsoft Windows users have their own App store too.

I don't believe there is anything suspicious going on here. Apple, Google, Microsoft, and the open source community are all aiming to make life simpler and easier for users, and at the same time create a user environment that is more structured, and controlled. These large corporations and communities are not forcing users into these walled gardens. They are enticing users to come inside and be safe and comfortable. For most ordinary users, this is seen as a fair trade: a win-win situation. Users can always take a walk in the wild woods outside if they want to, it's just that increasingly they don't want to.

Meantime, the US access providers have been busy in their efforts to remove the constraints imposed on them by the FCC. Now, theoretically, they are free to block and favor edge providers as much as they like. Well, perhaps not completely. Google, Apple, MS, and a lot of other companies in the web-connected device business have already built up their own portfolio of favorite web-enabled apps, providing device users with information services, online games, social networking, streaming media services, cloud services and more. Any attempts by the bit carriers to block or favor any of those online services would impact on the perceived value of all those net-connected devices, one way or another. The device manufacturers are now a firmly established part of the Internet value chain, and as such they will not be passive. If an access provider wants to provide preferential service to an edge provider, then the access provider needs to be sure the preferential user experience is not thwarted by the user's device. Or, if an access provider wants to downgrade an edge-provider's service it might be prudent to clear the ground with the device companies first, because they will want to know whom to point the finger at when their device users complain that certain apps no longer work the way they used to.

It seems that the Internet access providers might have to tread carefully here. Today, access ISPs are differentiated just by price for bandwidth, not much else. As long as the service is passably reliable, users can use any ISP. But, by definition any level of blocking or favoring will make a difference. It must, because if it didn't make a noticeable difference, no edge provider would pay for it. The device manufacturers are bound to take notice. Worst case, the device companies can explicitly tell users which ISPs will provide the best user experience for their devices and portfolio of apps, and which are to be avoided. Best case, the access ISPs will have to share the loot with the device vendors to keep them happy.

Either way, it will be interesting to watch the game. Starting with the iPhone, the device companies have mostly called the shots when it comes to defining the user experience. It's not likely they will be content to see this court decision changing that substantially.

More Stories By Esmeralda Swartz

Esmeralda Swartz is CMO of MetraTech, now part of Ericsson. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda is responsible for go-to-market strategy and execution, product marketing, product management, business development and partner programs. Prior to MetraTech, Esmeralda was co-founder, Vice President of Marketing and Business Development at Lightwolf Technologies, a big data management startup. She was previously co-founder and Senior Vice President of Marketing and Business Development of Soapstone Networks, a developer of OSS software, now part of Extreme Networks (Nasdaq:EXTR). At Avici Systems (Nasdaq:AVCI), Esmeralda was Vice President of Marketing for the networking pioneer from startup through its successful IPO. Early in her career, she was a Director at IDC, where she led the network consulting practice and worked with startup and leading software and hardware companies, and Wall Street clients on product and market strategies. Esmeralda holds a Bachelor of Science with a concentration in Marketing and International Business from Northeastern University.

You can view her other blogs at www.metratech.com/blog.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.