As both PC and consumer electronics companies continue to build Wi-Fi support into their products, the cost of the hardware will continue to fall and the demand for secure implementations will increase. March 1, 2004 Every January, the consumer electronics (CE) industry holds its annual exposition (called CES) in Las Vegas. While the annual computer exposition (COMDEX) has dwindled to nothing over the last 10 years, CES has become one of the largest shows in the world. The message from this year’s CES is clear: Personal computer (PC) technology is solidly entering the CE space, and connecting the new devices will be a big business opportunity for industry partners over the next five years. We’ll look at both the long-term prospects for partners investing in the consumer electronics space and the near-term opportunity for getting in on the ground floor. The Consumer Electronics Invasion
One of the key messages from this year’s CES is that, like mainframes and PBXs before them, high-end consumer electronics are next. Companies like Microsoft, Intel, AMD, ATI, and other PC stalwarts are focused on making their solutions the centerpiece of their customers’ CE strategy. Their message: You can create smaller, faster, and cheaper devices to get into the CE space by using our technologies and industry standards and standard components rather than proprietary interfaces. |  
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Have some feedback on this column? Email Tim with your comments, questions, and suggestions. He wants to hear from you! Short for wireless fidelity and is meant to be used generically when referring to any type of 802.11 network, whether 802.11b, 802.11a, dual-band, etc. The term is promulgated by the Wi-Fi Alliance. A user with a Wi-Fi Certified product can use any brand of access point with any other brand of client hardware that also is certified. In theory, any Wi-Fi product using the same radio frequency will work with any other, even if not Wi-Fi Certified. (webopedia.com) |
| Article continued... With the help of their partners (Dell, Gateway, HP, and cable and satellite companies), the PC companies are going head-to-head against established CE vendors such as Thompson, LG, Panasonic, Pioneer, and Sony. Intel is even getting into the television space by promising a chip set that implements its LCoS imaging engine and will allow its partners to create an inexpensive display with LCD-like resolution by mid-2005! But why are the PC companies so interested? While the sales of entertainment software delivered on PCs and microprocessor-based game consoles (like Microsoft® Xbox®) are booming, movie theater revenue went down for the first time in the last 10 years. Microsoft will use three key delivery platforms for media–Windows CE in the set-top box, the Xbox entertainment console, and Windows XP (Media Center Edition 2004 and Windows XP Embedded). And think about the number of CE devices in your home (televisions, stereo receivers, digital video recorders, etc.) versus the number of PCs. Imagine the integration possibilities as new versions of these devices begin using these versions of the Windows® operating system as their brains and existing computer connectivity standards allow them to communicate. Look Ahead to the Next Opportunities
While most of the opportunities for partners in the CE space will have to wait for the new devices and standards to become prevalent, one of the key components of the PC/CE convergence is in place and due for a break-out year—wireless networking. From walking the halls of CES, it’s clear that the first implementations of streaming media and ubiquitous Internet access will be based on the 802.11b/g standards. But the real market isn’t the individuals using Wi-Fi to connect; it’s the systems they’re connecting to—both in and out of the home. As consumers have become more network savvy, they’re demanding services from two key providers. The good news is that most of the plumbing required to support these connections is already built into both the Windows XP desktop and Windows Server 2003.
First, consumers want to be able to connect their PCs and other devices to Wi-Fi networks at home and on the road. The demand for these “hotspots” is rapidly increasing. Market research company In/Stat MDR estimates that over 90% of all new laptops in 2005 will ship with Wi-Fi built in. And with national chains like McDonald’s and Schlotzsky’s Deli following the lead of Starbucks by installing hotspots, there will be ample opportunity to help local and regional companies install the infrastructure to help them compete with the national players. Technology partners who can help companies set up their own hotspots will find plenty of customers willing to engage them. The good news is that most partners already have the expertise in wiring, physical and logical network security, and using inexpensive 802.11b/g routers and access points. And by investing in (or developing) billing software for hotspots and using Microsoft Windows Server™ 2003 for hotspot application servers, partners can move quickly to capitalize on these opportunities. The second key provider for most consumers is the company for which they work. Quickly coming to an end are the days of IT staffs being able to claim that the “security risk is too high” to allow remote network connectivity from home or the road using these hotspots. Companies need technology partners to help them develop more secure, robust, and easily maintainable remote connectivity strategies that will allow their employees and contractors to connect from home, a coffee shop, a hotel, a short-term business office, or an airport waiting area. And the good news is that most of the plumbing required to support these connections is already built into both the Windows XP desktop and Windows Server 2003. As both the PC and the CE companies continue to build Wi-Fi support into their technologies, the cost of the hardware will continue to fall and the demand for more secure implementations will increase. And this is only the first example of how PC/CE convergence will drive down costs and increase demand for IT consulting services. Technology partners should keep an eye on convergence with the CE space to find the next “next big thing.” Tim Landgrave is president of eAdvantage, Inc., a Microsoft .NET architecture, design, development, and training company. In “Staying Ahead of the Curve,” Tim tracks the latest business opportunities for new and existing Microsoft products. Ad Agency | Background | Frames Page Wise-Old-Blogger.com
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