Wireless

AT&T has unveiled its latest cloud-based offering, which lets businesses grab more computing capacity when they need it.

The company announced on Monday its Synaptic Compute as a Service, designed to let IT staffers store and maintain internal applications and data via AT&T's cloud. Capacity and availability can be ramped up when needed, especially if a company's own data center resources become taxed, AT&T said.

The service is designed is to help businesses save money by not having to maintain full network capacity year-round if demand only shoots up during certain times of the year. AT&T said that businesses can seamlessly access the software and content they need, whether stored internally or out on AT&T's network cloud.

Synaptic Compute "provides a much-needed choice for IT executives who worry about over-building or under-investing in the capacity needed to handle their users' traffic demands," Roman Pacewicz, senior vice president of strategy and application services for AT&T Business Solutions, said in a statement.

AT&T plans to introduce the service before year's end. Initially, it will be available only in the U.S.

Though cloud computing has grown in popularity among enterprise customers, concerns exist about both security and reliability. AT&T said that it has built security on top of its cloud layer, so that it is fully integrated. The company also expressed confidence in its track record of reliability, both in its own data centers and in its hosting and network businesses.

Since last year, AT&T has focused more on the industry push toward cloud computing for its customers. In May, the company announced its first Synaptic Services feature--Synaptic Storage as a Service--which lets customers access data on AT&T's cloud as needed, paying only for the storage they use.

In the battle of the open-source mobile platforms, developers have at least two choices: Google Android, which is open source but (relatively) closed development, or Symbian, which is open source...once it gets around to releasing the full source code.

Guess which one is winning?

You can't code me, but at least you can buy me.

(Credit: Google)

Gartner expects Android to become the second-most popular mobile platform within the next few years as it continues to gobble up Symbian's declining market share.

But why?

Symbian has been dismissive of Google Android, as well as smaller upstarts like the LiMo Foundation, arguing that the latter is overly focused on middleware for wireless operators and the former is fake open source with more hype than substance.

All of which might be true, but the reality is that it seems to be working for Android. Google has been signing new handset manufacturers at a frenetic pace, while Symbian has been holding steady with Nokia...and that's about it.

Despite Symbian announcing new handsets, Google is actually shipping Android. There's a big difference between marketing and reality. Google Android offers the latter.

For all the buzz that Android gets from developers, its success owes more to handset manufacturers than to open-source developers. Handset manufacturers and wireless carriers are hungry for alternatives to surging Apple and declining Microsoft. And while others may not be seeing source code in copious amounts, handset manufacturers are apparently getting their fill.

More than this, though, Google gives them a safe, consumer-friendly brand. Symbian does not.

This is the reason Google Android is winning. It's not about developers--at least, not yet. Neither Symbian nor Android really offers developers open communities and open code.

No, the difference today is brand. Google has it. Symbian does not, and that's despite decade-long dominance of the mobile market.

Symbian still has a ways to go. It has a weak user interface (UI) that is supposed to get better, but that describes much that is wrong with Symbian today. Everything (source code, revamped UI, and resumption of market dominance) is always spoken of in the future tense.

Meanwhile, Google Android rolls on--not because it out open-sources Symbian, but rather because it out-executes it.

Cisco Systems has bumped up its buyout offer to $3.41 billion for video conferencing company Tandberg.

The network giant's initial bid received a thumbs down from most of Tandberg's shareholders, who felt the initial $3 billion offer undervalued the company.

So far, more than 40 percent of Tandberg's stockholders, which includes investment firm OppenheimerFunds and Norwegian government pension fund Folketrygdfondet, have pre-accepted the new offer.

Cisco announced on October 1 that it was pursuing a $3 billion cash takeover of Tandberg, a major global supplier of video conferencing equipment with dual headquarters in Oslo, Norway, and New York City.

Increasingly important to companies looking to cut travel costs, teleconferencing is considered a growth industry. Cisco wants a bigger piece of that pie, and analysts didn't expect it to give up on Tandberg too easily.

The new bid expires December 1. Cisco said that if the bid isn't accepted by that deadline, it will withdraw the bid and look at other ways to expand its reach in the video conferencing market.

Cisco has been on a tear lately buying smaller niche companies, taking over a few firms earlier in the year and recently announcing plans to gobble up security software firm ScanSafe and wireless equipment maker Starent Networks.

As consumers increasingly purchase sophisticated smartphones such as the iPhone, BlackBerry, and Droid, they are developing expectations for how these phones allow contacts, calendars, e-mail, and social networks to remain in sync across all their devices.

One of the big challenges is that users don't always maintain the same source of inputting data--they switch from browser to desktop application to smartphone as their data access and entry point, introducing many variables into the data chain. And data integrity will only get more complicated as more applications become browser-based and keep no local data storage.

Most enterprise users have a local store in addition to the cloud storage, something that I still find puzzling from the T-mobile Sidekick outage, where consumer data that should have been in multiple locations (or at least present on the device) was thought to be lost.

The most common sync services are not provided directly by the mobile operator. Generally this is a good thing, as the more you can dis-intermediate the carrier, the more control you have over your data. But because the sync services are provided by others--notably Microsoft, Google, and Apple--you end up locked-in to their data structures as well as whatever privacy and data management issues that might arise in relation to advertising or other usage of your information.

Today, you can fairly easily sync your mobile device with most common online e-mail and PIM services although the BlackBerry, Droid, and the iPhone differ in their approaches--or at least in the visibility of how they work. For example, you can sync with Gmail and other services on the iPhone, but it rather perversely requires the Microsoft ActiveSync protocol.

By controlling the address book, Google and Apple effectively lock-in users to their sync service, leaving the carriers and devices to be easily replaced (minus the cancellation charges.) The user would barely notice the difference, aside from the sticker on his phone that says AT&T or Verizon.

Mobile operators do not want to cede control of the address book to Google or Apple, but they are late to the game and do not yet have sync solutions of their own. As a result, they are scrambling to add this functionality, but building a sync solution that works with all different devices and email services is no easy task, thanks to the widespread problem of device fragmentation in the industry.

One option is to deploy a white label solution, like the open mobile cloud sync offered by Funambol. Funambol CEO Fabrizio Capobianco told me the company has been approached by many of the top mobile operators, with several of them looking to setup sync services for their customers. They all recognize the issue, and according to Capobianco can turn to Funambol as a way to quickly bring a high-quality solution to market.

With all the different players in mobile sync, users will begin to question who owns their data. Enterprise users, in particular, should have privacy concerns about trusting their data to someone else. In the case of Android users, there is a growing anti-Google sentiment, and if Google already owns your email, calendar, and search queries, do you really want them to own your phone contacts as well?

Windows Mobile lost 28 percent of its smartphone market share between last year's third quarter and this year's third quarter, according to market researcher Gartner.

Figures released Thursday by Gartner show that Microsoft's mobile OS had 11 percent of the global smartphone market in Q3 2008. A year later, it had 7.9 percent. Meanwhile, the iPhone's share rose from 12.9 percent to 17.1 percent, and Research In Motion's share jumped from 16 percent to 20.8 percent.

Symbian's share fell from 49.7 percent to 44.6 percent over the same period--a 10 percent drop.

Read more of "Windows Mobile loses nearly a third of market share" at ZDNet UK.

Ever wander into one of those Verizon or AT&T stores, attempt to have a conversation with one of the smartly dressed salespeople, and whisper to yourself, "What kind of emotionally awkward humans end up working in a place like this?"

Well, I have good news for you.

Ricky Gervais, who made David Brent perhaps the most painfully sympathetic character in modern television in the original BBC version of "The Office," has been asking himself the very same question. "Phone Shop" a new British sitcom, enjoys Gervais as its script editor (he reportedly took one look at the idea and volunteered his involvement). The pilot airs Friday evening on Channel 4.

"Phone Shop" will explore the life of salespeople in a soul-sucking mall cell phone shop.

(Credit: Channel 4)

Unlike "The Office," which gained existential pleasure from the old-world business of paper manufacture, "Phone Shop" is set in a mall cell phone store.

The pilot episode follows the troubles experienced by trainee salesman Christopher, who has to sell a cell phone by 6 p.m. as part of his one-day trial.

Clearly this series will reside in the emotional halfway house that has just two difficult residents--comedy and tragedy. And one wonders just what impression will be left by the arduous task of pushing yet more portable technology on a populace that bristles with sensory overload.

I am deeply concerned that the cell phone business will not come out so beautifully in "Phone Shop."

You see, The Independent quoted Angela Jain, head of the E4 Channel, which has bought the series. And beneath her words I sense a little cackling: "Everyone's got a mobile phone and has had some encounter in a phone shop. It's also about those difficult dead-end jobs that everyone has at least once in their lives."

So the Droid and the iPhone are being pushed by people in dead-end jobs? What has become of our brave new, smartphoned world?

AT&T wants to set the record straight about its 3G wireless coverage.

The company has placed a statement on its Web site defending itself against critical advertisements Verizon Wireless has been running that highlight areas of the country where AT&T lacks 3G coverage.

"We typically don't respond to competitors' advertising," AT&T said in its statement. "However, some recent ads from Verizon are so blatantly false and misleading that we want to set the record straight about AT&T's wireless-data coverage."

Verizon's initial advertisement, which began airing on TV a couple of weeks ago, mocks Apple's "there's an app for that" slogan. Instead, Verizon's advertisement says "there's a map for that."

The ad campaign shows two maps with red-and-white splotches. The white area indicates no 3G coverage, and the red indicates areas where 3G service is available. In the ad, Verizon shows an AT&T map that has lots of white spaces, whereas the Verizon map is almost covered in red.

AT&T has filed a lawsuit claiming that the ad is misleading because it implies that AT&T customers can't use their phones in areas where the carrier does not offer 3G wireless coverage.

Verizon has modified its ad slightly to indicate that the map applies only to 3G coverage and not regular 2.5G service, which is adequate for making voice calls and connecting to the wireless Internet at slower speeds.

But AT&T is still not happy with the adjustment, and the company wants Verizon to stop running the ads or to alter them further.

What's more, AT&T has added a complaint about a newer Verizon commercial, which characterizes the iPhone as a new arrival to the Isles of Misfit Toys, to the lawsuit. The Isles of Misfit Toys refers to an island where broken toys and misfits would go in the popular Rudolph the Red Nosed Reindeer Christmas special.

In the ad, a toy elephant asks the iPhone what it's doing with the misfits, since it has so many cool apps. The iPhone doesn't really answer, instead flashing the AT&T map, which indicates the spotty 3G coverage. All the toys seem to understand.

AT&T hasn't launched ads of its own to combat the Verizon commercials. But the company's statement on its Web site is its attempt to refute many of Verizon's claims. For example, AT&T points out that its data coverage reaches 303 million people, or 97 percent of the U.S. population, using a mix of wireless technologies. Of course, AT&T admits that not all of these customers are able to access the faster 3G network; only 75 percent of the U.S. population can get access to AT&T's 3G wireless network.

AT&T also emphasizes in its statement that it has twice as many smartphone customers as Verizon. And it says it offers the most popular smarpthone in the industry, the Apple iPhone. AT&T says it offers more mobile applications than its competitors. And finally, it points out that it has the fastest 3G wireless network in the nation, a claim some customers who use the service may question.

There's no question that Verizon's ads are hard-hitting. But it's difficult to say whether they have affected consumers' purchase decisions. Anecdotally, it looks like the ads might have helped Verizon win a few customers. One Motorola Droid customer I interviewed at a Verizon store in New York this week said he decided not to buy the iPhone because of the Verizon ads he saw on TV.

"I was considering the iPhone," said Henry Goodison, of the Bronx borough. "But I saw a commercial about AT&T's 3G coverage. It said, 'Here is AT&T's 3G coverage, and here is ours.' And I thought it would be better to have Verizon, if I travel to another state, where AT&T doesn't have 3G coverage."

After a string of weak quarters, mobile phone maker HTC is eyeing more of the same for the current quarter but is hoping for better results next year.

The Taiwan-based company expects sales for the fourth quarter to drop to between 40 billion and 42 billion Taiwan dollars (between $1.23 billion and $1.3 billion), around 15 percent lower than in last year's fourth quarter.

Competition from other smartphones, especially the iPhone 3GS released this summer, has tempered demand for HTC's products, which include the Hero, Droid Eris, Tilt 2, MyTouch 3G, Snap, and Ozone.

HTC's (from left) Hero, Droid Eris, Tilt 2, and Pure.

(Credit: HTC)

Prices on smartphones have also dropped this year and are likely to continue to fall, putting further pressure on HTC, which trails the market in fourth place behind Nokia, Apple, and Research In Motion.

The company's third quarter continued its down streak, with full results reported earlier this week. For the quarter the ended September 30, HTC watched its sales drop 10 percent to 34.01 billion Taiwan dollars from last year's third quarter. Earnings fell 18.5 percent to 5.7 billion Taiwan dollars.

In a conference call this week, HTC outlined its current business and forecast for the near term. The U.S. market for HTC 's Android smartphones has enjoyed strong growth, the company said, but European sales remain sluggish due to a lack of brand awareness.

Market researcher IDC recently reported that HTC sold 2.4 million smartphones in the third quarter, a gain of 14.7 percent over last year's third quarter. But Android sales for that quarter were lower than expected, mostly due to tougher competition from other manufacturers and are likely to stay down in the fourth quarter.

The company has been striving to increase consumer awareness of its brand in both the U.S. and Europe, a goal it plans to push further next year by boosting its marketing budget.

For the holiday-shopping season, HTC will be trying to grab more shelf space and sales for its new Android Hero smartphone, released last month. Beyond that, the company is looking for strong sales volume from its overall line of Android smartphones, including the G1, Magic, Tattoo, and the new Droid Eris.

Despite its new focus on Google's Android operating system, HTC said that its Windows Mobile phones remain vital products. The company still ships more Windows Mobile smartphones than any other manufacturer and is looking to enhance their performance and touch capabilities in the near term. Hitting U.S. shores next year will be the new HD2 Windows Mobile smartphone, which has already had positive reviews.

Three views of the Dell Mini 3

(Credit: Dell)

Dell said Friday that it's ready to enter the smartphone business with the Android-based Mini 3.

Long rumored to have a smartphone in the works, Dell said that the first two carriers to sell the Mini 3 will be China Mobile and Brazil's Claro.

In China, the Mini 3 will use OPhone, China Mobile's customized version of Google's Android operating system. "We are excited for Dell to be among the first manufacturers to introduce new technology based on the OPhone platform," an unnamed China Mobile representative said in Dell's press release.

Dell would not offer any specifics about the software on the Brazilian phone, saying simply that "the initial Mini 3 smartphones are designed around the Android platform."

The company also did not provide technical specifications or pricing information for the phone, saying those would be revealed when the devices arrive in stores--probably late November for China Mobile and by year's end for Claro. It also did not say when the phone would arrive in the U.S. or other markets.

Dell did confirm that the Mini 3 has a 3.5-inch high-definition touch screen, a detail that Michael Tatelman, a Dell sales and marketing executive, had earlier told the Associated Press. The Mini 3 sold in China won't have Wi-Fi at the start, but Tatelman said that would come later.

Similarly, Apple's iPhone late last month made its official debut in China sans Wi-Fi.

China Mobile has more than 500 million customers, and Claro serves more than 42 million people in Brazil as part of the America Movil network, Dell said.

Dell did tout its "existing agreements with other leading global telecom providers," including Vodafone in Europe; AT&T and Verizon in the U.S.; M1 and Starhub in Singapore; and Maxis in Malaysia.

The Texas-based PC maker also played up the Internet connectivity angle of small mobile gadgetry.

"Our entry into the smartphone category is a logical extension of Dell's consumer product evolution over the past two years," Ron Garriques, president of the Dell Global Consumer Group, said in a statement. "We are developing smaller and smarter mobile products that enable our customers to take their Internet experience out of the home and do the things they want to do whenever and wherever they want."

But does the world need a smartphone from Dell? The device will have plenty of company: Android phones have begun arriving on the market in larger numbers in recent months.

Most notably, U.S. carrier Verizon Wireless last week began selling the much-hyped Droid, made by Motorola, and the more modest Droid Eris, made by HTC.

Updated at 5:31 a.m. PDT with more details and background information, and again at 8:08 a.m. PDT with clarification on the use of China Mobile's OPhone and confirmation of the screen size..