Comments on: Are app stores just another type of walled garden? http://andrewgrill.com/blog/index.php/2009/02/are-app-stores-just-walled-gardens/ about all things social & mobile Thu, 18 Mar 2010 17:23:02 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: @FredMartinent http://andrewgrill.com/blog/index.php/2009/02/are-app-stores-just-walled-gardens/comment-page-1/#comment-1174 @FredMartinent Mon, 02 Mar 2009 21:42:38 +0000 http://www.andrewgrill.com/blog/?p=1839#comment-1174 We have seen with iPhone App Store the “Golden Age” of App Stores: - a single eco-system - an integrated customer experience (from discovery to installation) because of the vertical integration of the approach: as Enrique Ortiz says “downloaded apps work”, without security warning, neither during installation, nor at run-time - the marketing power of Apple (their brand and also their investment in the eco-system: it is the first time I see ads on TV to promote mobile applications) We need more app stores to extend the concept to the vast majority of non-Apple handsets, but it will inevitably lead to fragmentation, and even when Apple introduce new models, they will start experiencing compatibility issues. However, the most important with this “App Store” phenomenon is the fact that end-users are ready to pay for mobile applications and services. We need to go beyond the current “app store” concept where only the one-off purchase of an application is possible: - allow micro-payment within applications - allow subscription business model (on a daily, weekly, or monthly basis) - extend the concept to “mobile web” services (without local application) - … In this context, today announcement of Zuora providing “Billing as a Service” for Facebook apps is very interesting: http://blog.zuora.com/zblog/2009/03/monetize-facebook-apps-with-z-commerce-for-facebook-subscribe-dont-advertise.html When it comes to billing, mobile operators have obviously a key role to play, but they need to cooperate to offer to developers a common billing gateway (developers can’t afford to integrate with billing gateways of each operator). We have seen with iPhone App Store the “Golden Age” of App Stores:
- a single eco-system
- an integrated customer experience (from discovery to installation) because of the vertical integration of the approach: as Enrique Ortiz says “downloaded apps work”, without security warning, neither during installation, nor at run-time
- the marketing power of Apple (their brand and also their investment in the eco-system: it is the first time I see ads on TV to promote mobile applications)

We need more app stores to extend the concept to the vast majority of non-Apple handsets, but it will inevitably lead to fragmentation, and even when Apple introduce new models, they will start experiencing compatibility issues.

However, the most important with this “App Store” phenomenon is the fact that end-users are ready to pay for mobile applications and services. We need to go beyond the current “app store” concept where only the one-off purchase of an application is possible:
- allow micro-payment within applications
- allow subscription business model (on a daily, weekly, or monthly basis)
- extend the concept to “mobile web” services (without local application)
- …

In this context, today announcement of Zuora providing “Billing as a Service” for Facebook apps is very interesting:
http://blog.zuora.com/zblog/2009/03/monetize-facebook-apps-with-z-commerce-for-facebook-subscribe-dont-advertise.html

When it comes to billing, mobile operators have obviously a key role to play, but they need to cooperate to offer to developers a common billing gateway (developers can’t afford to integrate with billing gateways of each operator).

]]> By: Golden Swamp » Carnival of the Mobilists #163 http://andrewgrill.com/blog/index.php/2009/02/are-app-stores-just-walled-gardens/comment-page-1/#comment-1173 Golden Swamp » Carnival of the Mobilists #163 Mon, 02 Mar 2009 15:47:47 +0000 http://www.andrewgrill.com/blog/?p=1839#comment-1173 [...] Web, and gives us some more skinny on the Opera Mini. Next are two critical looks at app stores. Andrew Grill at London Calling asks if app stores may be walled gardens, “another closed ecosystem that stifles development [...] [...] Web, and gives us some more skinny on the Opera Mini. Next are two critical looks at app stores. Andrew Grill at London Calling asks if app stores may be walled gardens, “another closed ecosystem that stifles development [...]

]]> By: Peter Williams http://andrewgrill.com/blog/index.php/2009/02/are-app-stores-just-walled-gardens/comment-page-1/#comment-1172 Peter Williams Mon, 02 Mar 2009 04:42:18 +0000 http://www.andrewgrill.com/blog/?p=1839#comment-1172 Clayton Christensen explained why big successful companies cannot give up practices that are profitable today, even if they won't be profitable in the future. Many executives of big successful companies have read his book then watched their companies kept behaving the same way, so this is a powerful effect. I took a shot at summarizing this yesterday: http://peterwilliams97.blogspot.com/2009/03/failure-of-newspapers-online-arthur.html Therefore, to answer your question "Haven’t we as an industry learnt anything from the failed attempts at “operator decks” and walled gardens from earlier this decade?". If Christensen is any guide, then the "collective intelligence of an industry" implied in your question works very differently to the way you seem to expect it to. Learning always involves pain to incumbents. Clayton Christensen explained why big successful companies cannot give up practices that are profitable today, even if they won’t be profitable in the future. Many executives of big successful companies have read his book then watched their companies kept behaving the same way, so this is a powerful effect.

I took a shot at summarizing this yesterday: http://peterwilliams97.blogspot.com/2009/03/failure-of-newspapers-online-arthur.html

Therefore, to answer your question “Haven’t we as an industry learnt anything from the failed attempts at “operator decks” and walled gardens from earlier this decade?”.

If Christensen is any guide, then the “collective intelligence of an industry” implied in your question works very differently to the way you seem to expect it to. Learning always involves pain to incumbents.

]]> By: About Mobility » Blog Archive » App Stores - from exciting to boring (in just one week) http://andrewgrill.com/blog/index.php/2009/02/are-app-stores-just-walled-gardens/comment-page-1/#comment-1171 About Mobility » Blog Archive » App Stores - from exciting to boring (in just one week) Mon, 02 Mar 2009 03:31:05 +0000 http://www.andrewgrill.com/blog/?p=1839#comment-1171 [...] hosting an application in its store.” Again, all this very operator-centric. And with this, app stores will become the new walled-garden, as Andrew Gill [...] [...] hosting an application in its store.” Again, all this very operator-centric. And with this, app stores will become the new walled-garden, as Andrew Gill [...]

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