Category Archives: Mobile technology

GTDC EMEA Summit – Positive at the midpoint of the year

At the recent GTDC EMEA Summit, the CONTEXT data and team were in evidence as the preliminary results of its annual 2017 ChannelWatch survey were unveiled in a dedicated workshop, and the GTDC Rising Star awards were selected using the CONTEXT data.

There was a real buzz this year with over 175 attendees, a record number of vendors, and senior executives from across the industry. The location was excellent with top class hospitality in the Kempinski Hotel in Vienna.

The conference opened with an upbeat introductory speech from Tim Curran, the CEO of the GTDC. Europe is on the move, growing faster than the US, and with excellent results in Q1 2017. Curran also took the occasion to remind members of the services provided by the GTDC.

We were then treated to a fascinating glimpse into the future by “futurist and humanist” Gerd Leonhard. Bringing together a myriad of ideas about the current technology explosion, he closed off his speech with a slide which really sums up the challenge ahead. Humans can only advance at a linear pace, whereas technology capabilities are advancing exponentially. We need to deal with this so that we don’t become “useless humans” and we must channel the new technology to the benefit of all mankind.

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From GTDC Keynote Presentation by Gerd Leonhard, 13/6/2017 ©

The final session of the morning, before breaking off into workshops and 1-to-1 meetings, was a Distribution panel, hosted by Peter Ward. On the panel were Graeme Watt, formerly CEO of Avnet Europe, now SVP Value at Tech Data; Jeremy Butt, Executive VP of Westcon EMEA; Ilona Weiss, CEO of ABC Data; Eric Nowak, President of Arrow ECS EMEA; Svens Dinsdorfs, CEO of Elko; and Anton Herbst, Head of Strategy at Tarsus.

The discussions were broad-ranging around the future of Distribution, the impact of recent consolidations, and there was a plea from Graeme Watt for vendors to think solutions not products, in order to get the right results for customers. An interesting debate took place about the importance of recruiting and retaining the best talent in the tech industry, a challenging area. One of the panellists said that often when people have been trained up in a specialist area, they are subsequently targeted for recruitment by resellers or vendors. This is definitely the stuff of future discussions for this audience to grapple with and find solutions.

In the CONTEXT workshop the preliminary results of the ChannelWatch survey for 6 out of 17 countries – UK, France, Germany, Spain, Italy and Poland – were presented. A number of questions were asked by attendees at the GTDC conference who were curious to know more. As Andy Dow, Group Marketing Director of Tech Data UK said, “The more deeply you dive, the more you understand that you need to dive even deeper.”

In this year’s ChannelWatch survey we had an overwhelming response of nearly 7,000 resellers, supported by our distributor partners who shared the survey with their reseller clients. The respondents were mainly owners, CEO’s and senior management, covered a broad spectrum of resellers, VAR’s, etailers and retailers, as well as small, medium and large sized companies.

Overall resellers in these countries are confident about 2016 and optimistic about 2017. This has been confirmed by a stellar opening to 2017 with 5% growth in Q1 panel revenues in these countries compared to last year, ranging from 13% growth in Spain to 1% in the UK. The outlying country for optimism is Spain (71% think that 2017 will be better than 2016) and the country with the highest number of doubters is the UK where 20% see 2017 as being worse than 2016.

The preliminary ChannelWatch data supports the encouraging opening talk by Tim Curran, and we look forward to a positive second half of the year.

The full results of the ChannelWatch survey will be made available in the coming weeks.

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by AS

 

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Filed under Enterprise IT, Home automation, IT Distribution, IT Pricing, Market Analysis, Mobile technology, PCs

Apple’s Public Secret: Macs and PC Gaming

For those financial analysts who took the time to comb through Apple’s fiscal fourth quarter results last year, it was noted that despite overall declines, Apple Services – the division which includes Apple Music, Apple Pay, and the App Store – posted very healthy growth of 24% up to $6.3 billion. If this growth continues the Services division is on track to become a Fortune 100 company in its own right later this year. A decent proportion of that revenue will come from mobile games. It’s fair to say that mobile gaming has a far wider market reach than console or PC, partly due to cost and accessibility; the success of apps like Angry Birds and Pokémon GO are a testament to its appeal. Indeed, mobile gaming is generally seen as socially more acceptable than PC or console gaming, which still has a reputation (at least in many European countries) as being the preserve of the youth and hobbyists where a much larger financial commitment is required.

Despite the importance of gaming to the mobile platform, and increasingly to the stagnating PC market, Apple has resisted overtly marketing towards gamers, instead leaving that up to individual app studios. This is understandable for a brand which positions itself as luxury/lifestyle, the technical equivalent to a designer fashion label, allowing for Apple products to perpetually command high ASPs. Just as the iPhone/iPad is now the gaming platform of choice for many consumers, Macs can be considered a PC gaming alternative. According to the latest survey from Valve’s Steam cloud gaming platform – the most important global online shop for PC games – Mac OSX now makes up 3% of all users, with 50% of those users being Macbook Pro owners. Back in 2015 Valve stated that Steam had over 125 million players, meaning that even two years ago there were 3.75m Mac OS gamers on their platform alone. Looking further into Steam’s data, the top selling games for Mac OSX include all of the world’s biggest eSports titles such as Dota 2 and Counter-Strike: Global Offensive.

A common question repeatedly asked by channel and vendor partners is why CONTEXT includes Macs as part of the PC gaming market. The simple answer is that when the PC market is segmented according to what is gaming capable based upon system specs, Macs are part of the gaming market. At the low-end of the market, Apple has a healthy share thanks to the high number of iMacs utilising the AMD Radeon R9 M390 and similar GPUs. This configuration will not allow for full GFX settings on many AAA game titles, however it will still run popular games with acceptable framerates. Thanks to Apple’s announcement in early June that high-end VR-ready GPUs would soon be available either as a tethered add-on or as a standard system spec, Macs will be better equipped to compete in the enthusiast-end of the PC gaming market. In the case of the Thunderbolt 3 external GPU, this allows for a VR-ready upgrade at $599. This might seem steep given that AMD’s Radeon RX 580 retails for $300, however $599 is still cheaper than buying a new VR-ready notebook, and the dev kit also comes with a $100 discount on the HTC Vive.

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In the fashion world, high-end products are sometimes adopted by a non-target market – the story of Burberry’s clothing in the UK is a good example – and PCs have a history of being co-opted for purposes beyond the vendor intention. In the end, consumers will always have the final say on how they want to use a technology; as the Apple Services financials show, a vendor may wish to keep their success a public secret.

by JW

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Filed under gaming, Mobile technology, PCs

SH&BA – Convergence of the transformation of our digital lifestyle

The SH&BA – Smart Home and Builders’ Association – Retailer & Manufacturer Panel met this past week in London. The attendees were truly a reflection of the convergence of the devices and technology in our homes and lifestyle. Participants represented a variety of industries and sectors including: manufacturing, vendors, retailers, associations, government agencies as well as academia and industry experts. What does such a diverse group of attendees gather to discuss?

Panorama

Smart Home – The hub of a digital lifestyle
IoT (internet of Things) devices have been in existence for a couple of decades. They enable connecting a variety of devices to the internet to send and receive data. That capability is not very exciting for most customers. But the ability to use IoT to monitor household utility connections to save money becomes a much more compelling reason for consumers to consider a “smart” home.

Many of the examples discussed in the SH&BA forum were about the increasing ease of use for consumers, and the value the smart devices play in making life convenient. Steve Moore from Dixons Carphone illustrated how their Honey Bee becomes a hub to connect many devices in the home. And even more importantly, it becomes the homeowners’ support centre where they can get answers to questions about devices they own. Steve Moore perhaps best summarised the key to Smart Home expansion by saying that we are at the stage where our “Goal is to take the friction out of life”.

Maybe we shouldn’t be calling it “Smart”
Rick Hartwig from the IET (Institute of Engineering and Technology) made the interesting point that we shouldn’t be using the term “Smart” home. Smart implies futuristic … a long way off. Mr. Hartwig argued that in many ways aspects of the digital “smart” home are already here. Most customers who are online already have at least one device beyond a PC connected to an internet. In the near future, energy and power consumption will be prime drivers for the home owner to adopt “smart” connected technology which adapts its settings to hours of the day in order to save energy.

The Power of Voice is rapidly accelerating adoption
One of the most exciting buzz factors in the smart home arena is the power of voice control. Initially propelled by Amazon Echo, Google Home, Apple and Microsoft are all rushing ahead with voice control speakers which become more humanised “hubs” for a variety of smart devices throughout the home.

Keynote speaker Theunis Scheepers brought some cutting edge examples from the evolution of the Amazon Alexa ecosystem. The speaker is the “human portal”, but the real genius is the Alexa cloud platform. The Alexa cloud is essentially an API system that enables partners to connect their devices to Alexa for voice control. In reality the Echo device is an array microphone and speaker – the “smart” is in the cloud that enables the customer to interact in a very natural way of using their voice to direct their digital lifestyle.

Theunis Scheepers

The Future of Smart Home
Adam Simon, from CONTEXT and Chair of the SH&BA Association, updated the group on the latest CONTEXT Smart Home Survey. The trends are clear, and consistently upward.   More consumers are aware of “smart home” and more plan to purchase a device for their home, but the patterns vary significantly by country.

From a consumer perspective, smart home adoption is still a “mid-term” play with purchases planned on 3 to 5 year horizon.   The exception is in the builder market where whole house adoption is accelerating because it is “built in” as the backbone of the home and constitutes a relatively small part of the overall home market.

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If there was one clear consensus and predictor for Smart Home it is that the power of voice will rapidly accelerate adoption. Amazon reported that Echo is now selling at 9X the holiday rate, and the Echo Dot is being bundled as a 6 pack so consumers can cover every room of their house. With the speaker hub and API cloud system we have now reached a stage similar to that of the smartphone with apps that make a connected life possible and convenient.

The next Retailer & Manufacturer Panel will be on 14th November, 2017.

For more information about SH&BA or if you are interested to attend the SH&BA panel please email marketing@shaba.eu

Guest blog by Chris Petersen, IMS

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Filed under Connectivity, Home automation, Mobile technology, Retail, Smart Home, Smart Technology

TCG Retail Summit – Top Themes for Future Retail Success

Guest blog by Chris Petersen, IMS

The TCG Summit represents a very unique gathering of top European Executives from across Europe. This year’s TCG summit, which was held at the end of March in Berlin, was particularly noteworthy in terms of the dominant recurring themes for future retail success, not only for technology, but all categories of retail. Even though the audience was primarily technology retailer and vendor leaders, innovations highlighted were less about the application of technology in the retail store, and much more about adapting to the most disruptive force in retail today – the omnichannel consumer.

Omnichannel is the New Normal
The underlying theme present in most of the presentations and panel discussions was omnichannel.   The TCG Summit in fact kicked off with Christophe Biget’s presentation focused on “innovation throughout the customer’s journey”.   From “walking in the customers shoes” to “customer centricity”, thought leaders were squarely focused on today’s consumer as a driving force of change in today’s retail.

If anyone had any doubts about omnichannel, it was key topic in almost every presentation and follow up panel discussion. The consensus in many discussions seemed to be that retailing is now moving beyond “omnichannel”.

“Experience is your product”
A top theme of both the presentations and panel discussions was focus on the customer experience as a key differentiator.   Jeffrey Sears from the Modernist group perhaps captured it best with his concept that “your [retailer] experience is your product”.   For traditional bricks and mortar retailers, the DNA now required is creating exceptional store experience as the new differentiator producing disruptive results. Despite all of the disruption from omnichannel, no one was predicting the demise of the retail store anytime soon. Many of the discussion panelists called out the need for new levels of partnership between vendors and retailers to “bring products to life”, particularly in stores.

Indeed, smart home products were frequently mentioned as the “poster child” for requiring hands on customer experience in store.   Smart home products are the growth category of the future that technology retailers are poised to lose … IF retailers don’t deliver an exceptional experience that connects products to the consumer’s life style.

Engagement – Yes we can!
The other underlying theme for future retail success is that retailers must develop internal DNA focused on customer engagement.   In the product centric past, it was enough to build stores, run ads and wait for consumers to come shop.   In today’s omnichannel world, consumers are very proactive and in control of their journey.   To be successful, retailers must focus on innovative ways to move from a passive display to proactive ways to engage customers where they are and how they want to purchase.

Perhaps the highlight presentation of the TCG 2017 Summit was from Nilesh Khalkho, CEO of Sharaf DG. Khalkho provided an amazing visual journey of Sharaf DG’s mantra of “Growing through Differentiation” in an omnichannel environment.   This journey included numerous examples of how retailers, especially technology retailers, will survive and prosper by truly differentiating on customer experience, engagement, and service.   The Sharaf DG story was a highlight that became a “Yes we Can!” rallying cry for what is possible in transforming technology retailing.

The Bottom Line – Results still Count
It is one thing for an executive team to say they are transforming to omnichannel, it is quite another to be able to execute omni-presence, experience and service 24/7/365.   There were a number of speakers and commentaries on the tremendous investments required to be able to create the experience and engagement demanded by today’s consumers.ETCG-Flashback-2017-43-2

As Adam Simon from CONTEXT highlighted, investors in tech retail are still looking for a return on their investment.   But achieving that return will require more than fiscal, operational expertise.   The successes, and the future of technology retail will require innovation on how to leverage talent in new ways that generate connected, customer relationships based upon a differentiated customer experience.

The bottom line for the future retail success – future success will not depend upon the sales transactions made today, but rather upon the customer relationships earned through engagement and services that will generate customer lifetime value.

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Filed under Connectivity, Home automation, IoT, Market Analysis, Mobile technology, Retail, Retail in CONTEXT, Smart Technology

Peddle Faster to Fly Your Unicorn: Could VSports Cause Unintentional Fitness?

In three decades of video gaming there have been some very odd on-screen instructions. The Grand Theft Auto series introduced a controversial healing mechanic, and in PS3’s 2010 title Heavy Rain players were encouraged to “press x to Jason [sic]”, however being instructed to pedal in order to start your unicorn must now be a close contender. It’s also fair to say that very few eSports or sit-down video games will draw much more than nervous perspiration, or perhaps the dreaded Nintendo Thumb some of us used to suffer when attempting to finish seemingly impossible titles like Battletoads (which if played with two players was actually impossible). The Nintendo Wii was the first mass-market gaming platform to show the potential for video games to help users truly exercise, and the motion controllers and uses beyond sedentary gaming were a major selling-point over seemingly superior competing products. The majority of users eventually grew to see the Wii Fit as a novelty workout video with interaction, and slowly consoles were retired in garages, ignored and eventually abandoned like so many gym memberships. Few of those Wii Fit owners have looked back since.blog1

As the VR industry has grown over the last two years a new form of exercise has emerged – Vsports. In this instance, the user is immersed in a 360 degree 3D world, transforming a session on an exercise machine into a totally different experience. Often complaints of reluctant joggers is that running through the streets of Balham is hardly exciting, and thudding on a treadmill whilst watching Simon Cowell’s latest autotuned starlet in the gym is drastically worse. What about running along the banks of the River Tiber whilst chasing rogue legionnaires, or indeed, flying a pedal-powered unicorn? The latter has been made possible by VirZOOM, a company so sure of its product that they are targeting their marketing directly at lapsed gym bunnies. My own aversion to jogging is the lack of competition and the abstract nature of lonely cardio exercise, however a gameplay element and opponents, both virtual and real, will push me the extra mile. Interestingly, in a 2016 CONTEXT survey of EU consumers, sport was the gaming category which excited them the most for VR, with 1 in 5 respondents expressing an interest; this could now mean sport in a very physically-active sense.

For those of us in the ICT industry who have been lucky enough to try VSports at events such as CES, general consensus is that this could be a big category for VR, both at home and in larger installations. As an analyst, I am frequently asked where the opportunities for VR lie for the channel, and VSports offer both a B2B and consumer market. Health technology is persistently strong in terms of sales, and the industry is accustomed to disruptive technology and wearables. Moreover, gyms have long been a customer of AV installers and resellers: almost all gyms contain dozens of TVs and LFDs. The sanitary aspect of VR headsets has not been missed by start-ups, with companies such as VR Cover popping up to sell washable VR peripherals.

Perhaps the most interesting example of the convergence of games, VR, and VSports is the phenomenon of accidental exercise. My own serendipitous encounter with VSport was whilst playing Knockout League on the Oculus Rift/Touch recently. After over an hour of shadow boxing I removed my headset to discover the sort of sweat I’d expect after a 5km run. I’m not the only industry professional to accidentally work out during a normal gaming session: Job Stauffer, Telltale’s head of creative communications recently announced that he’d lost over 50lb playing a VR game, in this case Sandboxing. For those of you in the channel who have routes to the healthcare verticals and are also lucky enough to be distributors or resellers of one of the high-end VR HMDs, my advice is to start some serious conversations about the new categories of VR Fitness Devices and Accessories.

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by JW

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Filed under Connectivity, gaming, Mobile technology, virtual reality

CeBIT 2017 Points the Way to VR and Smart Device Growth

With 200,000 participants flocking to Hanover this year, the week-long CeBIT show can be an intimidating prospect. Over 3,000 exhibitors set up shop at the world’s biggest technology expo. And while this is not a show for big name product launches, it still provides a very useful snapshot of what’s hot in the tech industry from one year to the next.

This year, as we predicted, there was plenty of buzz around smart devices, the Internet of Things and Virtual Reality (VR)/ Augmented Reality (AR). These, after all, will be the technologies that in years to come delight consumers and power the next generation of European businesses.

VR/AR catches the eye
CeBIT 2017 had a bigger focus on VR/AR than ever before, highlighting the growing maturity of this burgeoning technology. If you were in any doubt of the scale of interest in this space, half of Hall 17 – one of the show’s aircraft hangar-sized expo spaces – was devoted entirely to firms exhibiting VR-related tech. As we predicted at the end of 2016, gaming will continue to drive forward interest in VR on the consumer side. But, as evidenced by its exposure at the business-centric CeBIT show, more and more companies are exploring corporate applications.

Examples included the “Virtofy” VR presentation system, which offers companies an opportunity to demo products and showcase projects to prospective clients/customers. Another interesting use case developed by engineers at the Zwickau University of Applied Sciences incorporates integrated data goggles into the helmets worn by steel workers – designed to flash up safety warnings and the like.

In Hall 2 Intel, in cooperation with Microsoft, presented the dataflow the companies expect in the near future. Based on the BMW i8, Intel presented with the Microsoft AR Hololens how cameras and sensors scan the environment of a future car in order to drive autonomously. Intel predicts that approximately 4000 GB of data will be tracked, processed and uploaded from cars in the future, which creates brand new business scenarios in this market.

IoT everywhere
As we mentioned in December, the Smart Home market is really heating up, with Apple, Google, Amazon, Samsung and Microsoft set to battle it out for hearts and minds in 2017 and beyond. True to form, the Internet of Things formed a major part of CeBIT 2017, with over 270 exhibitors from 29 countries participating. The IoT also had its own spin-off summit at the conference – a first for the organisers and again illustrative of the growing interest in smart products.

The IoT, of course, extends far beyond the smart home. In fact, attendees were treated to demos of everything from smart shirts and dog collars from Telefonica Deutschland, to Toshiba’s industrial applications for the energy sector.

Drones are taking off
The smart device revolution also increasingly extends up into the sky. As evidenced by the buzz at CeBIT, drones are fast carving out an IoT niche of their own. A large outdoor area sponsored by Intel drew many of the crowds, with much attention drawn to the bright orange H520 hexacopter from Chinese firm Yuneec. When combined with an on-board camera and Intel RealSense tech, it’s able to detect movements and distances like the human eye – enabling it to avoid obstacles in flight.

The Drone Park even drew the interest of German Chancellor Angela Merkel and Japanese Prime Minister Shinzo Abe.

by AD

 

 

 

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Filed under Connectivity, gaming, Home automation, IoT, Mobile technology, Retail, Smart Home, Smart Technology, virtual reality, Wearables

How PC Gaming Is Driving AI, Cars, and the UK Treasury’s Technology Policy

At CES 2017 back in January, Jen-Hsun Huang, CEO of Nvidia announced that “GPU-powered deep learning is driving the ability for computers to perceive the world… But one day, AI researchers met the GPU and the big bang of AI occurred.” Up until more recently, when most ICT analysts thought of Nvidia, the first thing to come to mind would have been gaming, and for a good reason. The core of Nvidia’s business is still PC Gaming where they continue to dominate the GFX hardware market. Jen-Hsun went on to explain that the “GPU had the benefit of being fuelled by the largest entertainment industry in the world, video games.” Indeed, PC gaming is one of the most processing-intensive activities a PC can be asked to perform, and that industry has gone from strength to strength over the past few years. Jen-Hsun was right to tout the success of PC gaming: CONTEXT’s data shows that sales of high-end VR-ready PCs shot up 1057% in terms of revenue y/y for the top 6 EU economies in Q4 2016, and figures from the Entertainment Retailers Association put gaming as contributing more to the UK economy in 2016 than either music or video sales at £2.96bn.

Several thousand miles away from Sin City, the importance of AI and driverless cars was being carefully noted by strategists and civil servants in Whitehall, culminating in the most recent budget announcement. The British government has promised £270m in funding for disruptive technologies such as driverless cars, AI, and robotics. Given the current hard-Brexit policies being pursued by Teresa May’s administration they are wise to support such green shoots; CONTEXT’s figures for professional GPUs back both this decision and Jen-Hsun’s assertion. Screen Shot 2017-03-16 at 13.21.25Sales of professional GPUs in the UK reversed a previous decline in Q3 2016, with Nvidia’s own Quadro series of GFX cards enjoying +25% y/y growth in revenue. More and more GPUs are being purchased to power deep learning and AI for large datacentres, rather than in their more traditional roles for 3D modelling and computer aided design.

It’s not uncommon for devices to be developed with one purpose in mind then being very successfully appropriated for another. Even Atari’s failed Jaguar gaming console ended up being cannibalised and used in dental equipment. The GPU is also the critical lynchpin of another emerging technology: Virtual Reality. In one profound statement, Jen-Hsun declared that “…all gaming was Virtual Reality,” and in many cases this rings true where a player inhabits a virtual world. It might not seem immediately obvious, but components built for PC gaming now power both AI and VR. As a result Nvidia’s share price has soared in recent months, finishing 2016 +224% up from the previous year, and promising to continue to rise as their partnerships and new ventures bear fruit, with professional visualization growing +11%, datacentre at +144% and automotive up +52% for Q4 2016.

This success eventually caused Nvidia’s shares to drop in February when the Q4 results were released as investors weighed up the risks of long-term returns (as driverless cars are still many years away from being commonplace), versus selling stock at an apex. To some extent, the UK government is taking a gamble on driverless cars becoming the norm, and this might reflect the modest £270 sum compared with much higher investment promised by other governments. Academic commentators have also welcomed this news due to the environmental benefits promised by AI-driven vehicles. The immediate future of AI and its importance to the UK economy is very encouraging, but much like Brexit, the longer-term outlook is beyond the most complex algorithm to accurately portend.

by JW

 

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Filed under Big data, Connectivity, gaming, IoT, Mobile technology, Smart Technology