Former Microsoft number 3 and ex-head of VMWare, Paul Maritz shared his journey and insights with South Africans at the recent MyWorld of Tomorrow conference
Veteran industry executive Paul Maritz opened the recent My World Of Tomorrow technology expo and conference with a technology vision of businesses that is not about the technology itself.
In his keynote address at the Sandton Convention Centre, he said that we were experiencing not a technology revolution, but a social and business revolution.
Maritz currently heads Pivotal, a landmark company created through the combined forces of GE, EMC and VMWare. It was born for a new purpose: to create the next generation of operating systems that will power our future. Those platforms are vital, as Martiz set about to explain.
He first illuminated his own journey: as a fresh-faced varsity graduate from South Africa, Maritz left for the US to engage with the new world of PCs. It was the start of the Eighties and mainframe computers were being replaced by new maverick innovations from companies such as Intel. Maritz wanted in, kick starting a career that took him through giants such as Intel and Microsoft – where he was number three behind Bill Gates and Steve Ballmer. He would later move to EMC, soon heading up VMWare, then Pivotal.
This gave Maritz a good sense of history and a clear vision of where we are going. He looked at how the Eighties and Nineties were spent creating digital equivalents for paper-based processes, leading to the development of applications such as Microsoft Office. But now it is time for the next step:
“Those applications are not going away – they are going to stay with us for a long time to come. But they are no longer where differential value is coming from. Those are not where the new business models are being driven out of. We’re moving into an era where we are now starting to tackle things that you cannot imagine in a paper-based world. There is no paper-based equivalent to Google and Facebook. We’ve had to evolve structures and architectures to allow us to tackle those kind of use cases.”
To illustrate his point, Maritz looked back at mainframes. The cost to generate enough computing power to track a computer mouse was huge. Then the desktop-style PCs we are familiar with arrived, bringing that kind of power spend to virtually zero and thus ushering in the era of graphic user interfaces.
Yet the client/server PC world has its own limitations: the power available is still dictated by the capacity of an individual machine. So if something required ten machines to do its job, it would be an expensive and rare practice: Maritz called it avant-garde development.
The world needed a new way to evolve technology – especially if it expected to match the consumer-driven revolution pegged by smart devices and connectivity.
“Google is actually the pioneer here. In 1998, when they set out to index the entire world’s information, they already knew that the index would be petabytes in size. If you had gone to your favourite database vendor in 1998 and buy a petabyte of capacity – even if they could have supplied it to you at the then-going prices of $1 million per terabyte – it would have cost you $10 billion. For Google that was just a non-starter, so they had to go a different route. They had to tackle their problem by ganging together lots and lots of very cheap machines.”
Google’s thriftiness sparked the new technology platforms that are increasingly driving our world today, creating new use cases and opportunities for business. By combining many machines, the power of technology has become a commodity. Like the leap to graphic interfaces, now we can tackle big data, contextual behaviour and more. One example is General Electric, a century-old company that has become the standard bearer for transforming to the new digital epoch. GE’s aircraft engines famously generate terabytes of data over one single transatlantic flight, prompting the company to wonder what value lies in all of that data. This in turn brought new opportunities, which is why GE invested in Pivotal: it wants the next generation of technology to fuel its newfound ambitions.
Ultimately all that brought Maritz’s main point to book: what we are experiencing is not a technology revolution. It is a social and business revolution, exemplified by among other things how companies reach audiences.
“A lot of businesses used to operate on the principle of spending huge amounts of money on broad, horizontal media-based advertising to drive the masses to them. Now instead innovative companies spend their money on building compelling, useful ways of engaging with their customers in realtime. They rather spend their time and money into building useful apps that gives information and service in context to the user.”
The maverick automobile maker Tesla counts as one – it uses applications and in-car software to extend the experience well beyond simply owning a vehicle. Uber, the favourite example of this revolution, also uses apps and analytics to improve customer engagement. If you ever pondered why a food retailer wants you to swipe its shopper card, that’s towards gathering trends for improved service. All of that is being run on what Maritz called the third platform: the world of cheap, powerful parallel computer systems.
But to access this new world requires companies to shift their mindsets. Technology is becoming inseparable from business, at least if that business hopes to keep engaging the new consumer.
“One of the big changes many companies have a lot of problems with is to realise this is not an IT problem. This is a business problem. Google has an IT department, but they make sure every machine has an IP address and that’s about it. Everyone else in Google doesn’t think of themselves as IT people. They think of themselves as part of the product department. They build products. The business and technology people sit as equals around the table.”
Maritz rounded his point with a call to action for companies: “Find partners who want to do this with you as opposed to doing it for you. It will not help you if they do it all for you. At the end of the day this capability is going to be your differentiator for finding value. You can’t outsource that. If a partner says ‘No problem, just write me a cheque’, that’s a big red flag. Don’t go there.”
When will we stop calling them phones?
If you don’t remember when phones were only used to talk to people, you may wonder why we still use this term for handsets, writes ARTHUR GOLDSTUCK, on the eve of the 10th birthday of the app.
Do you remember when handsets were called phones because, well, we used them to phone people?
It took 120 years from the invention of the telephone to the use of phones to send text.
Between Alexander Graham Bell coining the term “telephone” in 1876 and Finland’s two main mobile operators allowing SMS messages between consumers in 1995, only science fiction writers and movie-makers imagined instant communication evolving much beyond voice. Even when BlackBerry shook the business world with email on a phone at the end of the last century, most consumers were adamant they would stick to voice.
It’s hard to imagine today that the smartphone as we know it has been with us for less than 10 years. Apple introduced the iPhone, the world’s first mass-market touchscreen phone, in June 2007, but it is arguable that it was the advent of the app store in July the following year that changed our relationship with phones forever.
That was the moment when the revolution in our hands truly began, when it became possible for a “phone” to carry any service that had previously existed on the World Wide Web.
Today, most activity carried out by most people on their mobile devices would probably follow the order of social media in first place – Facebook, Twitter, Instagram and LinkedIn all jostling for attention – and instant messaging in close second, thanks to WhatsApp, Messenger, SnapChat and the like. Phone calls – using voice that is – probably don’t even take third place, but play fourth or fifth fiddle to mapping and navigation, driven by Google Maps and Waze, and transport, thanks to Uber, Taxify, and other support services in South Africa like MyCiti, Admyt and Kaching.
Despite the high cost of data, free public Wi-Fi is also seeing an explosion in use of streaming video – whether Youtube, Netflix, Showmax, or GETblack – and streaming music, particularly with the arrival of Spotify to compete with Simfy Africa.
Who has time for phone calls?
The changing of the phone guard in South Africa was officially signaled last week with the announcement of Vodacom’s annual results. Voice revenue for the 2018 financial year ending 31 March had fallen by 4.6%, to make up 40.6% of Vodacom’s revenue. Total revenue had grown by 8.1%, which meant voice seriously underperformed the group, and had fallen by 4% as a share of revenue, from 2017’s 44.6%.
The reason? Data had not only outperformed the group, increasing revenue by 12.8%, but it had also risen from 39.7% to 42.8% of group revenue,
This means that data has not only outperformed voice for the first time – as had been predicted by World Wide Worx a year ago – but it has also become Vodacom’s biggest contributor to revenue.
That scenario is being played out across all mobile network operators. In the same way, instant messaging began destroying SMS revenues as far back as five years ago – to the extent that SMS barely gets a mention in annual reports.
Data overtaking voice revenues signals the demise of voice as the main service and key selling point of mobile network operators. It also points to mobile phones – let’s call them handsets – shifting their primary focus. Voice quality will remain important, but now more a subset of audio quality rather than of connectivity. Sound quality will become a major differentiator as these devices become primary platforms for movies and music.
Contact management, privacy and security will become critical features as the handset becomes the storage device for one’s entire personal life.
Integration with accessories like smartwatches and activity monitors, earphones and earbuds, virtual home assistants and virtual car assistants, will become central to the functionality of these devices. Why? Because the handsets will control everything else? Hardly.
More likely, these gadgets will become an extension of who we are, what we do and where we are. As a result, they must be context aware, and also context compatible. This means they must hand over appropriate functions to appropriate devices at the appropriate time.
I need to communicate only using my earpiece? The handset must make it so. I have to use gesture control, and therefore some kind of sensor placed on my glasses, collar or wrist? The handset must instantly surrender its centrality.
There are numerous other scenarios and technology examples, many out of the pages of science fiction, that point to the changing role of the “phone”. The one thing that’s obvious is that it will be silly to call it a phone for much longer.
MTN 5G test gets 520Mbps
MTN and Huawei have launched Africa’s first 5G field trial with an end-to-end Huawei 5G solution.
The field trial demonstrated a 5G Fixed-Wireless Access (FWA) use case with Huawei’s 5G 28GHz mmWave Customer Premises Equipment (CPE) in a real-world environment in Hatfield Pretoria, South Africa. Speeds of 520Mbps downlink and 77Mbps uplink were attained throughout respectively.
“These 5G trials provide us with an opportunity to future proof our network and prepare it for the evolution of these new generation networks. We have gleaned invaluable insights about the modifications that we need to do on our core, radio and transmission network from these pilots. It is important to note that the transition to 5G is not just a flick of a switch, but it’s a roadmap that requires technical modifications and network architecture changes to ensure that we meet the standards that this technology requires. We are pleased that we are laying the groundwork that will lead to the full realisation of the boundless opportunities that are inherent in the digital world.” says Babak Fouladi, Group Chief Technology & Information Systems Officer, at MTN Group.
Giovanni Chiarelli, Chief Technology and Information Officer for MTN SA said: “Next generation services such as virtual and augmented reality, ultra-high definition video streaming, and cloud gaming require massive capacity and higher user data rates. The use of millimeter-wave spectrum bands is one of the key 5G enabling technologies to deliver the required capacity and massive data rates required for 5G’s Enhanced Mobile Broadband use cases. MTN and Huawei’s joint field trial of the first 5G mmWave Fixed-Wireless Access solution in Africa will also pave the way for a fixed-wireless access solution that is capable of replacing conventional fixed access technologies, such as fibre.”
“Huawei is continuing to invest heavily in innovative 5G technologies”, said Edward Deng, President of Wireless Network Product Line of Huawei. “5G mmWave technology can achieve unprecedented fiber-like speed for mobile broadband access. This trial has shown the capabilities of 5G technology to deliver exceptional user experience for Enhanced Mobile Broadband applications. With customer-centric innovation in mind, Huawei will continue to partner with MTN to deliver best-in-class advanced wireless solutions.”
“We are excited about the potential the technology will bring as well as the potential advancements we will see in the fields of medicine, entertainment and education. MTN has been investing heavily to further improve our network, with the recent “Best in Test” and MyBroadband best network recognition affirming this. With our focus on providing the South Africans with the best customer experience, speedy allocation of spectrum can help bring more of these technologies to our customers,” says Giovanni.