All Things Digital

The first handset to be powered by Google’s Android OS debuted this morning at a T-Mobile launch event in New York. Manufactured by HTC, the G1 is largely as anticipated. Peter Chou, CEO of HTC describes it as “iconic,” but that’s being a bit generous, I think (“The G1 won’t win any beauty contests with its Apple rival,” writes Walt Mossberg. “It’s stubby and chunky, nearly 30 percent thicker and almost 20 percent heavier than the iPhone.”)

In design, the device seems to borrow quite a bit from T-Mobile’s Sidekick, and its touchscreen GUI owes a thing or two to Apple’s (AAPL) iPhone. Which makes perfect sense, since that’s the device it’s clearly intended to compete with. The G1 will run on both 3G and Wi-Fi and be tethered to the T-Mobile (DT) network. It will come preloaded with a version of Amazon’s MP3 store and Android Market, an application store similar to Apple’s App Store. And it will support and sync with the broad spectrum of Google (GOOG) apps–Google Talk, Google Calendar, etc. Its browser is something the dev team refers to as Chrome-Lite, a mobile version of Google’s new Webkit-based Chrome browser.

Oddly, the G1 has no built-in video player. Odder still, it has just 1GB of memory. T-Mobile has helpfully outfitted it with a 1GB/month bandwidth cap, though.

The G1 supports PDFs and Microsoft Office documents as well. Email will be handled through Gmail; there is no Exchange support, though presumably, engineers developing for Android Market will fill that void in short order.

Oh, the device offers copy-and-paste functionality. Hear that Apple?

It will arrive at market Oct. 22. Price: a highly-subsidized $179.

The HTC Dream, the first handset based on Google’s (GOOG) Android mobile platform, has been given the Federal Communications Commission seal of approval. With that last hurdle cleared, the device is ready for market–though it now looks like it may arrive a bit later than expected. A short-term confidentiality request in the documentation HTC filed with the FCC suggests that the Dream will be released in November, not September.

What can we expect from this first Android device? Sadly, the HTC documentation doesn’t offer much detail. Those who claim to have seen it, however, say it will feature a trackball and a screen smaller than the one on the iPhone. They also believe it will offer access to an upcoming T-Mobile (DT) App Store similar to Apple’s (AAPL) App Store for iPhone/iPod Touch applications. The Dream will support push email, but only via Google’s Gmail service. Finally, it will use Google’s advertising platform to serve up ads based on user interests and location. Which, as far as Google is concerned, is the whole point here. “We can make more in mobile than desktop, eventually,” Google CEO Eric Schmidt said recently. “The reason is because the mobile device is more targeted. Think about it: You carry your phone with you everywhere. It knows all about you. We can use that to do a very, very targeted ad. Over time, Google will make more money from mobile advertising.”

Google’s facing another billion dollar lawsuit–and, whaddaya know, it’s not from Viacom. It’s from LimitNone, a small software developer that claims Google’s (GOOG) Email Uploader tool copies the look, feel, functionality and distribution model of its gMove application.

The gMove app exports email, contacts and calendar information stored in Microsoft (MSFT) Outlook to Google’s online services. LimitNone apparently developed it with Google’s help and the understanding that the company had no intention of offering a competing product. But at some point, Google changed its mind. And it built Google Email Uploader–allegedly using LimitNone’s trade secrets. “Google claims its core philosophy is ‘Don’t be evil’ but, simply put, they invited us to work with them, to trust them–and then stole our technology,” said LimitNone’s CEO, Ray Glassmann.

A harsh accusation. And likely a tough one to prove. LimitNone never bothered to patent gMove. And beyond that, it’s hard to believe Google is so lacking in engineering resources and expertise that it would purloin an email migration tool.

Salesforce.com will be acquired in 2007. We believe the growing importance of online delivery of software and business services will make Salesforce.com (and particularly its AppExchange hub) a very tempting target to both large players (like IBM, SAP, Oracle, Microsoft) still struggling to scale down and move online, and consumer-heavy players (like Google, Yahoo, AOL) trying to ’scale up’ to the business market as a way to further monetize their online presence.”

–IDC Predictions 2007

Salesforce.com CEO Marc Benioff (photo, right) wasn’t kidding when he said in May of 2007, “We’re the Google of business.” The customer-relationship software pioneer this morning announced an alliance with Google (GOOG) that will see it integrating Google’s online services into the Salesforce.com (CRM) platform.

Christened Salesforce for Google Apps, the offering embeds Gmail, Google Calendar, Google Talk and Google Docs directly into Salesforce.com’s core sales force automation, marketing and customer-service applications.

The partnership is quite an endorsement of business-workspace applications delivered from the cloud. It’s also an aggressive move against Microsoft’s (MSFT) Dynamics Live CRM, Redmond’s customer relationship management software, which is integrated with its Office suite.

Together Google and Salesforce.com are clearly seeking to challenge Microsoft’s multibillion-dollar Office franchise. As Marc Benioff, CEO of Salesforce.com, told the New York Times, “The enemy of my enemy is my friend, so that makes Google my best friend.” And perhaps even a potential acquirer.

We don’t think it’s a competitor to Microsoft Office. It’s casual and sharing, and a better fit to how people use the Web.”

–Google CEO Eric Schmidt on Google Docs and Spreadsheets, April 2007

We are not in this to get Microsoft. We are in this to offer more compelling choices for consumers and businesses.”

–Dave Girouard, general manager of Google’s business software division, April 2007

Soldiering on in its quest not to compete with Microsoft’s (MSFT) core office-productivity software business, Google (GOOG) last night added another component to its Web-based productivity suite–Google Sites. Created from JotSpot, the hosted wiki platform Google acquired back in 2006, Sites is essentially a lightweight version of Microsoft’s business-collaboration program SharePoint. It offers organizations a means of instantly creating a wiki-style group workspace, in which employees can collaborate.

It’s another powerful addition to the Google Apps suite, which already includes Gmail, Google Calendar, Talk, Docs and Spreadsheets and Page Creator. And it’s free. And if you think of “free” as a euphemism for “not robust enough for enterprise use,” you best think again. At least that’s what Google says, anyway. “The so-called lightweight cloud application isn’t for the non-power user,” Matt Glotzbach, product management director for Google Enterprise, told News.com’s Dan Farber. “It’s actually for the power user. Today’s power users aren’t writing macros. They are ‘power collaborators,’ grabbing content from six different places in the cloud and putting [it] on a site and sharing it.”

What was that Schmidt said about casual users again?

Yahoo finally beat Google to something. It brought its email client out of beta before Gmail.

This morning Yahoo officially relaunched Yahoo Mail, ending a two-year public test of the Web-based email service that began in September 2005. Its overhaul completed, Yahoo Mail is no longer just a Webmail client, it’s a “social communication” tool. “Our goal is to make (Yahoo) Mail a more social experience,” John Kremer, vice president of Yahoo Mail, told Reuters. “We really look at ourselves as sitting on top of the largest dormant social network out there.”

To that end, Yahoo Mail now boasts SMS (short message service) support, offering its users the ability to send text messages to cellphones. It’s the first free Web-based email service to offer that feature, and it’s almost certainly starting a trend by doing so. Notes Paul Ruppert, founder of mobile-market consultancy Global Point View, SMS usage is exploding: “The future of mobile messaging with over 3 trillion text messages annually would logically seem well secured,” he wrote in a post to Mobile Messaging 2.0. “A well of demand currently from 2.1 billlion users globally is not going to dry up over night. Plus, all the trends are upward. There is revenue and SMS usage growth in even the most mature country markets such as the U.K. Message-dense nations with high percentages of young populations, mostly in Asia, continue to come online to mobile. Even in markets like the U.S., which lagged in embracing the ease and power of texting and seemingly preferred email and instant messaging, text messaging has become an intimate aspect of daily lives, especially for those 15 to 25.”

Theme 2: Store 100% of User Data
With infinite storage, we can house all user files, including: emails, Web history, pictures, bookmarks, etc., and make it accessible from anywhere (any device, any platform, etc). … As we move toward the ‘Store 100%’ reality, the online copy of your data will become your Golden Copy and your local-machine copy serves more like a cache. An important implication of this theme is that we can make your online copy more secure than it would be on your own machine. Another important implication of this theme is that storing 100% of a user’s data makes each piece of data more valuable because it can be accessed across applications.

–Excerpt from Google’s 2006 analyst day presentation

Apparently, Google’s “Store 100%” reality will come at a price. Yesterday, the company announced the beginnings of a shared online storage service–and a pricing schedule to go with it. “In a few hours we’ll be rolling out extra storage that you can purchase to use across several Google products (today, Picasa Web Albums and Gmail; soon, other applications like Google Docs & Spreadsheets),” Google engineer Ryan Aquino wrote in a post to the company’s blog. “… When you reach the limit of free storage (i.e., 1GB for Picasa Web Albums, 2.8GB for Gmail), consider this your overflow solution. Plans start at $20/year for 6GB (yes, $5 cheaper than before), with larger plans ranging up to 250GB.”

Huh. What happened to “never delete another email”?

Odd that Google would charge such prices when Yahoo Mail offers unlimited storage for free, Flickr.com for $20. But it is another way of diversifying its revenue beyond advertising. And, more important, another small step toward the “Store 100%” reality the company envisions.

“You’re an idiot if you use T-Mobile HotSpot.” That’s what Robert Graham, the CEO of Errata Security, had to say last Thursday about checking email from public wireless hotspots.

And he knows of what he speaks. Earlier in the day, Graham hijacked a Gmail session in front of a packed audience at the Black Hat security convention in Las Vegas. Using a pair of programs called Hamster and Ferret, which sniff the data transferred between a wireless router and a computer, Graham grabbed an unencrypted cookie used in a recent Black Hat Wi-Fi session and used it to hijack an attendee’s Gmail account. “I see 10 people’s cookies on my screen, I just need to click on the guy’s IP address and I’m in,” Graham said. “Once you get someone’s Google account, you’d be surprised at the stuff you’d find. … If I sniff your Gmail connection and get all your cookies and attach them to my Gmail, I now become you, I clone you. Web 2.0 is now fundamentally broken.”

With .Mac’s mediocrity so impressively well realized, it was only a matter of time before Apple wised up and improved the archaic online services suite.

And some observers are wondering if it already has. Perhaps in partnership with Google. Over at Wired, Fred Vogelstein suggests Apple may use its Worldwide Developers Conference next week to announce a major upgrade to .Mac, one based on Google Web apps like Gmail and Google Calendar, Docs and Spreadsheets. “Hints from Eric Schmidt, Google’s CEO and Apple board member and from Apple boss Steve Jobs point squarely in that direction,” Vogelstein explains. “Schmidt said in April in an interview with me that he envisioned just such a relationship eventually. ‘We’re a perfect back end to the problems that they’re trying to solve,’ Schmidt told me. ‘They have very good judgment on user interface and people. But they don’t have this supercomputer [that Google has], which is the data centers. What they have is a manufacturing business that’s doing quite well.’ “

And there have been other hints as well. In fact, at D5 last week, Apple CEO Steve Jobs spent a bit of time discussing Apple’s effort to port Google Maps to the iPhone and talking up the marriage of Apple’s interface and usability savvy with Google’s back-end chops.

I’ll give you a concrete example. I love Google Maps, use it on my computer, you know, in a browser. But when we were doing the iPhone, we thought, wouldn’t it be great to have maps on the iPhone? And so we called up Google and they’d done a few client apps in Java on some phones and they had an API that we worked with them a little on. And we ended up writing a client app for those APIs. They would provide the back-end service. And the app we were able to write, since we’re pretty reasonable at writing apps, blows away any Google Maps client. Just blows it away. Same set of data coming off the server, but the experience you have using it is unbelievable. It’s way better than the computer. And just in a completely different league than what they’d put on phones before.

“And, you know, that client is the result of a lot of technology on the client, that client application. So when we show it to them, they’re just blown away by how good it is. And you can’t do that stuff in a browser.

“So people are figuring out how to do more in a browser, how to get a persistent state of things when you’re disconnected from a browser, how do you actually run apps locally using, you know, apps written in those technologies so they can be pretty transparent, whether you’re connected or not.

“But it’s happening fairly slowly and there’s still a lot you can do with a rich client environment. At the same time, the hardware is progressing to where you can run a rich client environment on lower and lower cost devices, on lower and lower power devices. And so there’s some pretty cool things you can do with clients.”

Almost makes you think this partnership Vogelstein’s predicting is a done deal, doesn’t it?

It was not the market-defining partnership many expected, but Google and Salesforce.com did announce an alliance yesterday. The first fruit of their collaboration: “Salesforce Group Edition featuring Google AdWords,” a joint service through which Salesforce.com will resell Google’s online-advertising tools to businesses.

During a press conference yesterday, Salesforce.com CEO Marc Benioff (pictured below) described Salesforce Group Edition Featuring Google AdWords as a complete click-to-sale service, noting that businesses who use it will be able to generate sales leads through AdWords and then track those leads in the Salesforce application. “We have a dream to create millions of AdWords users,” said Benioff.

An interesting partnership, but not the one industry observers had predicted. Certainly, it came as a disappointment to those who’d expected the integration of other Google services like Gmail and Google Spreadsheets into Salesforce.com–although that may come in time. “This is a big product for us,” Benioff said. “We’re very fortunate to have a strong relationship with Google. The enemy of my enemy is my friend, and Google is my best friend.” At least until it becomes an enemiend, anyway …