Steve Jobs – Technology Liberation Front https://techliberation.com Keeping politicians' hands off the Net & everything else related to technology Mon, 09 Jan 2017 18:24:19 +0000 en-US hourly 1 6772528 Remember What the Experts Said about the Apple iPhone 10 Years Ago? https://techliberation.com/2017/01/09/remember-what-the-experts-said-about-the-apple-iphone-10-years-ago/ https://techliberation.com/2017/01/09/remember-what-the-experts-said-about-the-apple-iphone-10-years-ago/#comments Mon, 09 Jan 2017 17:15:10 +0000 https://techliberation.com/?p=76106

Today marks the 10th anniversary of the launch of the Apple iPhone. With all the headlines being written today about how the device changed the world forever, it is easy to forget that before its launch, plenty of experts scoffed at the idea that Steve Jobs and Apple had any chance of successfully breaking into the seemingly mature mobile phone market.

After all, those were the days when BlackBerry, Palm, Motorola, and Microsoft were on everyone’s minds. Perhaps, then, it wasn’t so surprising to hear predictions like these leading up to and following the launch of the iPhone:

  • In December 2006, Palm CEO Ed Colligan summarily dismissed the idea that a traditional personal computing company could compete in the smartphone business. “We’ve learned and struggled for a few years here figuring out how to make a decent phone,” he said. “PC guys are not going to just figure this out. They’re not going to just walk in.”
  • In January 2007, Microsoft CEO Steve Ballmer laughed off the prospect of an expensive smartphone without a keyboard having a chance in the marketplace as follows: “Five hundred dollars? Fully subsidized? With a plan? I said that’s the most expensive phone in the world and it doesn’t appeal to business customers because it doesn’t have a keyboard, which makes it not a very good e-mail machine.”
  • In March 2007, computing industry pundit John C. Dvorak argued that “Apple should pull the plug on the iPhone” since “There is no likelihood that Apple can be successful in a business this competitive.” Dvorak believed the mobile handset business was already locked up by the era’s major players. “This is not an emerging business. In fact it’s gone so far that it’s in the process of consolidation with probably two players dominating everything, Nokia Corp. and Motorola Inc.”

A decade after these predictions were made, Motorola, Nokia, Palm, and Blackberry have been decimated by the rise of Apple as well as Google (which actually purchased Motorola in the midst of it all). And Microsoft still struggles with mobile even though they are still a player in the field. Rarely have Joseph Schumpeter’s “perennial gales of creative destruction” blown harder than they have in the mobile sector over this 10 year period.

The lesson here is pretty clear. As Yogi Berra once quipped: “It’s tough to make predictions, especially about the future.” But there’s more to it than just that. These mistaken predictions serve as a classic example of those with a static snapshot mentality disregarding the potential for new entry and technological disruption to shake things up. “In dealing with disruptive technologies leading to new markets,” says Clayton M. Christensen, author of The Innovator’s Dilemma, “researchers and business planners have consistently dismal records.”

This has implications not only for business forecasting but also for public policy, which is notoriously shortsighted when it comes to the potential for new technological innovations to shake up existing markets. Just because you think a particular firm or sector it the proverbial “King of the Hill” one day, it doesn’t mean they will be able to sit on that lofty perch forever. Likewise, policymakers cannot neatly “plan progress” by incessantly intervening in the hope of directing markets and technologies toward some supposedly better end. Picking winners and losers–or even just trying to stimulate more “winners”–will likely end very badly.

In his book,  The Year 2000: A Framework for Speculation on the Next Thirty-three Years, the futurist Herman Kahn wisely noted that:

History is likely to write scenarios that most observers would find implausible not only prospectively but sometimes, even in retrospect. Many sequences of events seem plausible now only because they have actually occurred; a man who knew no history might not believe any. Future events may not be drawn from the restricted list of those we have learned are possible; we should expect to go on being surprised.

But we can only “expect to go on being surprised” by leaving plenty of breathing room for the evolution of markets and technology. While all social and economic experiments are accompanied by a great deal of unpredictability and disruption, history indicates that most of those experiments will result in greater progress and prosperity–just as the iPhone did. But developments such as these are almost impossible to predict or plan beforehand. We have to get the environment for innovation right and then let creative minds work their magic.

 

 

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The Internet’s philosopher-king https://techliberation.com/2012/03/15/the-internets-philosopher-king/ https://techliberation.com/2012/03/15/the-internets-philosopher-king/#respond Thu, 15 Mar 2012 15:38:31 +0000 http://techliberation.com/?p=40341

tumblr_m04g8byWGw1qdu5t4o1_500The cover story of this week’s The New Republic is a review by Evgeny Morozov of Walter Isaacson’s biography of Steve Jobs. In 10,000 words it is more illuminating about what made Steve Jobs tick than Isaacson’s 656 pages of warmed-over anecdotes and Wikipedia glosses. Morozov gets it right when he draws the connection between Bauhaus and Apple–functionalism and simplicity über alles. But he doesn’t seem to like where this takes Apple or Jobs.

He calls Jobs’s adherence to the Bauhaus ideal “a kind of industrial Platonism” in which products have a true form or essence that must be discovered and revealed by a designer. What consumers think they want is irrelevant; they will know what they want when it is presented to them. That’s true as far as it goes, but Morozov is the real Platonist here.

Morozov’s ultimate indictment of Apple is that it refuses to consider the externalities its technologies impose on “society.” One may love one’s Apple products and how they have improved one’s life, but, Morozov says,

We need to identify the other moral instructions that may be embedded in a technology, which it promotes directly or indirectly. And this fuller analysis requires going beyond studying the immediate impact on the user and engaging with the broader–let us call it the “ecological”–impact of a device. (“Ecological” here has no environmental connotations; it simply indicates that a technology may affect not only its producer and its user, but also the values and the habits of the community in which they live.)

What is this negative externality Apple’s technology is inflicting on the value and habits of our communities? It’s that apps will kill the open Internet, except not for the reasons we think. Morozov cites and dismisses Jonathan Zittrain’s “generativity” critique saying that Zittrain is concerned only with the threat to innovation. Morozov, on the other hand, is concerned with loftier “ethical and aesthetic considerations.” Namely, that Apple’s app paradigm “may be destroying the Internet in much the same way that the automobile destroyed the sidewalks and the playgrounds.”

The point is not that we should forever cling to the shape and the format of the Internet as it exists today. It is that we should (to borrow Apple’s favorite phrase) “think different” and pay attention to the aesthetic and civic externalities of the app economy. Our choice is between erecting a virtual Portland or sleepwalking into a virtual Dallas. But Apple under Steve Jobs consistently refused to recognize that there is something valuable to the Web that it may be destroying.

After reading a competing cover story about Portland in another newsweekly, I’m not sure the choice is as clear as Morozov thinks it is. But the message is clear: like Portland’s planners do about a “livable city,” Morozov has a vision of what is the Internet’s pure form, and it’s not one left to messy markets.

Morozov quotes a Newsweek interview with Jobs just a few years after the Web was invented. Jobs sees it as “the ultimate direct-to-customer distribution channel.” He essentially predicts that you’ll be able to buy books online and that the bookstore will know what you like.

That the Web did become a shopping mall fifteen years after Jobs made his remark does not mean that he got the Web right. It means only that a powerful technology company that wants to change the Web as it pleases can currently do so with little or no resistance from anyone. If one day Apple decides to remove a built-in browser from the iPad, as the Web becomes less necessary in an apped world, it will not be because things took on a life of their own, but because Apple refused to investigate what other possible directions—or forms of life—“things” might have taken. For Jobs, with his pre-political mind, there was no other way to think about the Internet than to rely on the tired binary poles of supply and demand.

The notion that Apple turned the web into what it is today singlehandedly is laughable. Apple was moribund until 2000, didn’t introduce the iTunes Store until 2003, and has never had a strong presence on the web. The web has become what it is today because the convenience of getting any book you want, whenever you want it, and cheaply beats little bookstores stocked by proprietor’s whims, however aesthetically pleasing they may be–which they’re often not. And for the record, I hope we can all agree the web is more than a shopping mall.

More to the point, though, Jobs was not as much a Pied Piper as we’d like to think he was. Depite all his marketing moxie, he was constrained by the market. If Jobs ever thought there was a true essence of a computer, it was the Power Mac G4 Cube. As Isaacson says, “it was the pure expression of Jobs’s aesthetic.” And it was a flop. “Jobs later admitted that he had overdesigned and overpriced the Cube, just as he had the NeXT computer.” Remember the NeXT cube? How about the iPod Hi-Fi? The buttonless iPod shuffle? Ping? Those tired poles of supply and demand told Jobs “no” time after time, but we might just as easily dismiss gravity or entropy as tired.

If Apple were to remove the browser from the iPad today, there would be, shall we say, less demand for the tablet. If at some future date there is no more demand for a web browser, and Apple removes it to little fanfare, then what is the harm?

I guess it is some Platonic Internet that we’d lose. A pure internet that we don’t know we want. One that only philosopher-kings can see. One they will discuss at “Berlin-based think tanks” and in the pages of “quarterly magazines,” as Morozov praises Google for sponsoring. And it’s an Internet the philosopher-kings would plan for us the same way Neil Goldschmidt and his friends planned Portland.

No thanks. I prefer a Steve Jobs, pursuing a functionalist ideal with little care for the consequences, yet checked by those tired poles and the “perennial gale of creative destruction” that will someday catch up with Apple.

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Again, It’s Really Hard to Bottle Up Digital Generativity / Openness https://techliberation.com/2011/04/08/again-its-really-hard-to-bottle-up-digital-generativity-openness/ https://techliberation.com/2011/04/08/again-its-really-hard-to-bottle-up-digital-generativity-openness/#comments Fri, 08 Apr 2011 14:29:51 +0000 http://techliberation.com/?p=36174

There’s a nice piece of reporting from Ian Shapira in today’s Washington Post entitled, “Once the Hobby of Tech Geeks, iPhone Jailbreaking Now a Lucrative Industry.” In the article, Shapira documents the rise of independent, unauthorized Apple apps (especially tethering apps) and points out that what was once a small black market has now turned into a booming, maturing business sector in its own right.  In fact, Sharpia notes, there are already “market leaders” in the field:

At the top of the jailbreaking hierarchy sits Jay Freeman, 29, the founder and operator of Cydia, the biggest unofficial iPhone app store, which offers about 700 paid designs and other modifications out of about 30,000 others that are free. Based out of an office near Santa Barbara, Calif., Freeman said Cydia, launched in 2008, now earns about $250,000 after taxes in profit annually. He just hired his first full-time employee from Delicious, the Yahoo-owned bookmarking site, to improve Cydia’s design. “The whole point is to fight against the corporate overlord,” Freeman said. “This is grass-roots movement, and that’s what makes Cydia so interesting. Apple is this ivory tower, a controlled experience, and the thing that really bought people into jailbreaking is that it makes the experience theirs.”

In another sign this black market is now going mainstream, advertisers are apparently flocking to it:

In what might be the ultimate sign that the jailbreak industry is losing its anti-establishment character, Toyota recently offered a free program on Cydia’s store, promoting the company’s Scion sedan. Once installed, the car is displayed on the background of the iPhone home screen, and the iPhone icons are re-fashioned to look like the emblem on the front grill.

Interestingly, however, some people now complain that Cydia is getting too big for its britches and has come to be “as domineering as Apple is in the non-jailbreak world.”  What delicious irony! Yet, I do not for one minute believe that Cydia has any sort of “lock” on the “unlocking” marketplace. This is an insanely dynamic sector that is subject to near-constant fits of disruptive technological change.

Anyway, I feel a bit vindicated when I read articles like Shapira’s since I have spent the last few years pushing back against the theories set forth by various scholars, such as Jonathan Zittrain and Tim Wu, who claim that online openness or “generativity” are dying.  They often cite Apple as the big, bad boogeyman of closed code and claim that Steve Jobs is hellbent on destroying digital generativity and the open Internet as we know it.

Of course, it is certainly true that Jobs and Apple prefer a more “closed” model that grants them more control over their products, such as the iPhone and iPad. And they make some good arguments why a certain amount of control is a good thing. It helps to have a more standardized platform for developers, for example, by avoiding fragmentation. A certain degree of control can also help to crack down on malicious apps in the App Store. And without a certain amount of control it becomes hard to honor warranties when phones or apps break.

Despite those excuses, Apple is still just a bit too domineering for some of us.  I don’t own any of their products.  Never have; never will. If it’s not tinker-friendly right out of the box, it’s just not for me.  I cannot even begin to count how many times I have rooted and installed new ROMs on my Droid OG.  (Thank You CyanogenMod!) And I bricked my last Windows Mobile 6 phone after repeated hacking.

And, yet, Apple is still wildly successful and has millions of extremely happy customers who — for reasons that still boggle my mind — are willing to line up in the wee hours of the cold morning around the block in front Apple Stores to get their hands on the latest goodies the company has to offer.  (Seriously, what is wrong with you people!)

But this gets back to the point I have reiterated in my debates with Zittrain, Wu, and the other “openness evangelicals”: Even if I share their general love of more “open” and “generative” platforms or devices, there’s no reason to be nearly as worried as they are about them “dying.”  And there’s certainly no need for drastic action, especially of a regulatory nature, to work this out.  The market for openness is working marvelously. Innovation continues to unfold rapidly in both directions along the “open” vs. “closed” continuum. Moreover, there certainly isn’t any shortage of digital “generativity” taking place on both open and closed platforms today. Again, even though Jobs and Apple try to control their platform and App Store, some amazingly generative things are happening there every day and consumers absolutely adore their Apple devices.

Anyway, I discussed all these issues in much greater detail in my chapter on “The Case for Internet Optimism, Part 2 Saving the Net From Its Supporters,” which was included in the book, The Next Digital Decade: Essays on the Future of the Internet (2011). Simply stated, things are getting more open all the time and there’s just no putting the generativity genie back in the bottle.  Here’s a short section that appears on page 149 of the book related to the issues discussed here:

______________________

Things Are Getting More Open All the Time Anyway

Most corporate attempts to bottle up information or close off their platforms end badly.  The walled gardens of the past failed miserably.  In critiquing Zittrain’s book, Ann Bartow has noted that “if Zittrain is correct that CompuServe and America Online (AOL) exemplify the evils of tethering, it’s pretty clear the market punished those entities pretty harshly without Internet governance-style interventions.”[1] Indeed, let’s not forget that AOL was the big, bad corporate boogeyman of Lessig’s Code and yet, just a decade later, it has been relegated to an also-ran in the Internet ecosystem.

There are few reasons to believe that today’s efforts to build such walled gardens would end much differently.  Indeed, increasingly when companies or coders erect walls of any sort, holes form quickly. For example, it usually doesn’t take long for a determined group of hackers to find ways around copy/security protections and “root” or “jailbreak” phones and other devices.[2] Once hacked, users are usually then able to configure their devices or applications however they wish, effectively thumbing their noses at the developers.   This process tends to unfold in a matter of just days, even hours, after the release of a new device or operating system.

Number of Days Before New Devices Were “Rooted” or “Jailbroken” [3]

original iPhone 10 days
original iPod Touch 35 days
iPhone 3G 8 days
iPhone 3GS 1 day
iPhone 4 38 days
iPad 1 day
T-Mobile G1 (first Android phone) 13 days
Palm Pre 8 days

Of course, not every user will make the effort—or take the risk[4]—to hack their devices in this fashion, even once instructions are widely  available for doing so.  Nonetheless, even if copyright law might sometimes seek to restrict it, the hacking option still exists for those who wish to exercise it.  Moreover, because many manufacturers know their devices are likely to be hacked, they are increasingly willing to make them more “open” right out of the gates or offer more functionality/flexibility to make users happy


[1] Bartow, supra note 17 at 1088, www.michiganlawreview.org/assets/pdfs/108/6/bartow.pdf

[2] “In living proof that as long as there’s a thriving geek fan culture for a device, it will never be long for the new version to be jailbroken: behold iOS 4.1. Most people are perfectly willing to let their devices do the talking for them, accept what’s given, and just run sanctioned software. But there are those intrepid few—who actually make up a fairly notable portion of the market—who want more out of their devices and find ways around the handicaps built into them by the manufacturers.” Kit Dotson, New iOS for Apple TV Firmware Released, Promptly Decrypted, SiliconAngle, Sept. 28, 2010, http://siliconangle.com/blog/2010/09/28/new-ios-for-apple-tv-firmware-released-promptly-decrypted

[3] Original research conducted by author and Adam Marcus based on news reports.

[4] Rooting or jailbreaking a smartphone creates the risk of “bricking” the device—rendering it completely inoperable (and thus no more useful than a brick). Additionally, hacking devices in this fashion typically voids any manufacturer warranty.

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On Facebook “Normalizing Relations” with Washington https://techliberation.com/2011/03/29/on-facebook-normalizing-relations-with-washington/ https://techliberation.com/2011/03/29/on-facebook-normalizing-relations-with-washington/#comments Tue, 29 Mar 2011 05:15:56 +0000 http://techliberation.com/?p=36004

The New York Times reports that, “Facebook is hoping to do something better and faster than any other technology start-up-turned-Internet superpower. Befriend Washington. Facebook has layered its executive, legal, policy and communications ranks with high-powered politicos from both parties, beefing up its firepower for future battles in Washington and beyond.”  The article goes on to cite a variety of recent hires by Facebook, its new DC office, and its increased political giving.

This isn’t at all surprising and, in one sense, it’s almost impossible to argue with the logic of Facebook deciding to beef up its lobbying presence inside the Beltway. In fact, later in the Times story we hear the same two traditional arguments trotted out for why Facebook must do so: (1) Because everyone’s doing it! and (2) You don’t want be Microsoft, do you?   But I’m not so sure whether “normalizing relations” with Washington is such a good idea for Facebook or other major tech companies, and I’m certainly not persuaded by the logic of those two common refrains regarding why every tech company must rush to Washington.

In an essay I penned for the Cato Institute last November entitled The Sad State of Cyber-Politics,” I reiterated arguments made a decade earlier by two brilliant men: Cypress Semiconductor CEO T. J. Rodgers and the late great Milton Friedman. Rodgers penned a prescient manifesto for Cato in 2000 with the provocative title: “Why Silicon Valley Should Not Normalize Relations with Washington, D.C.” in which he argued that, “The political scene in Washington is antithetical to the core values that drive our success in the international marketplace and risks converting entrepreneurs into statist businessmen.” A year earlier, Friedman penned another Cato essay called “The Business Community’s Suicidal Impulse” in which he lamented the persistent propensity of companies to persecute one’s competitors using regulation or the threat thereof. What both men stressed was that coming to Washington has a tendency to change a company’s focus and disposition, and not for the better — if you believe in real capitalism, that is, and not the abominable crony capitalism fostered by Washington.

But few in the high-tech world have listened to this logic, especially when the whole rest of the world was falling all over themselves to open a Washington, DC office first in an effort to cover their butts from regulatory encroachments and then later to figure out how the wield the hammer of Big Government to their corporate advantage. I documented numerous examples of the latter in my Cato essay.

I’m not saying that the folks at Facebook are going to be looking to screw over their competitors right away. In fact, I can’t currently think of any examples of how they might.  The company is still firmly in that “cover your butt” period that is common when a hot new digital innovator first comes to DC.  And I certainly can’t blame them for wanting to push back against many misguided forms of Internet regulation, such as free speech controls or heavy-handed privacy regulation.  But I fear there will come a day when they fall in line with many other high-tech companies and trade associations and seek to turn the regulatory state to their advantage.  Only time will tell. And I certainly hope I am wrong.

Regardless, as the folks at Facebook and other high-tech firms ponder their future inside the Beltway, let me ask them to return to the two premises for “normalizing relations” that I cited above and explain why they are not exactly true:

Premise #1: Everyone’s doing it!  Most are, but not all. How active are Apple and Sony to name just two companies without a major DC presence?  Most days of the week, Steve Jobs seems to be giving DC a big middle finger. I’m the last guy in the world you’ll ever hear giving Apple much credit since I hate their products, but Jobs is about the closest thing you’ll find to an Ayn Rand character in Silicon Valley these days.  He seems to do exactly what he wants to build innovative products for consumers and, in the process, ignore all his critics, especially those in Washington. Of course, not everybody can be Steve Jobs in this regard, but I can’t help but wonder: Why don’t more of them try? What if high-tech entrepreneurs just told Washington to buzz off?

Premise #2: You don’t want be Microsoft, do you? The Times article says, “legal analysts say Facebook is hoping to avoid mistakes made by predecessors like Microsoft. And they say the company is becoming politically savvy earlier in its life than Google, whose connections were firmly established once Eric E. Schmidt, the chief executive, advised the Obama presidential campaign and the administration.”

I’ve never really bought into this argument. I think it’s pretty far-fetched to claim, as so many people in this field do, that if Microsoft would have just had a small army of lobbyists here on the ground back in the early 1990s that none of their antitrust problems would have popped up. And regarding Google coming to Washington in the hope of winning friends, well, how’s that working out for them?!  As I noted in my Cato essay:

Everybody — and I do mean everybody — wants Google dead, right now. Google currently serves as the Great Satan in this drama — taking over the role Microsoft filled a decade ago — as just about everyone views it with a combination of envy and enmity.

Indeed, no one could be happier about Facebook coming to town at this moment than Google!  They get to hand the “Great Satan” baton off to Facebook and wish them the best!  Of course, Google’s problems with Washington aren’t done by a long-shot, but I’m quite sure they’re relieved to see Facebook getting grilled more at hearings and events around town these days.

Anyway, in all seriousness, I’ll say the same thing to the fine folks in the Facebook DC office — several of whom I know well — that I’ve said to countless other tech companies here in the Beltway through the years: Stay true to the same principles that made your company so great to begin with.  It wasn’t Washington that built Facebook, or Google, or Microsoft, or any other high-tech innovators; it was entrepreneurial capitalism that did.  Free minds and free markets made the high-tech sector what it is today, not handouts and special favors from Washington. Stick to real capitalism; avoid the crony variety.

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Thoughts on Tim Wu’s Master Switch, Part 2 (On “Cycles” & “Market Failure”) https://techliberation.com/2010/10/26/thoughts-on-tim-wu%e2%80%99s-master-switch-part-2-on-%e2%80%9ccycles%e2%80%9d-%e2%80%9cmarket-failure%e2%80%9d/ https://techliberation.com/2010/10/26/thoughts-on-tim-wu%e2%80%99s-master-switch-part-2-on-%e2%80%9ccycles%e2%80%9d-%e2%80%9cmarket-failure%e2%80%9d/#comments Tue, 26 Oct 2010 17:37:35 +0000 http://techliberation.com/?p=32659

Tim Wu was kind enough to comment on my general overview and critique of his new book, The Master Switch: The Rise and Fall of Information Empires.  That essay will be the first of many I plan to pen about Wu’s important book.  I appreciate Prof. Wu being willing to engage me in a debate over some of these issues since I’m sure he has better things to do with his time. Some of the points he raised in his comment will be addressed in subsequent posts.

In this post, I want to respond briefly to his assertion that I was “missing the point of the book” which is “to describe the world we live in.” He says that his book, “suggests that we tend to go through open and closed cycles in the Information Industries, and that, roughly, both have their strengths and weaknesses, and both become popular at different times for various reasons.”  But he fears there are “greater risks in the closed periods.”

Contrary to what he suggests, I certainly understand that’s the point of his book, it’s just that I don’t fully agree with his analysis or conclusions. Let me be clear about a crucial point, however: I accept that almost every industry goes through “cycles” of some sort and that, typically, after a “Wild West” period of greater “openness” and more atomistic competition, some degree of “consolidation” or more “closed” (or proprietary) models often sets in.  (A somewhat different and far more descriptive interpretation of such cycles can be found in Deborah Spar’s 2001 book, Ruling the Waves: Cycles of Discovery, Chaos, and Wealth from Compass to the Internet. She outlines a more refined 4-part cycle of: Innovation, Commercialization, Creative Anarchy, and Rules.)

My primary beef with Prof. Wu is that, contrary to his assertion yesterday in commenting on my post, his book seems to regard the progression of “the Cycle” as mostly linear and one-directional: straight down toward a perfectly closed, corporate-controlled, anti-consumer Hell.  By my reading of his book – much like Lessig and Zittrain’s work – Wu is painting an overly pessimistic portrait of technologies being subjected to the “perfect control” of largely unfettered markets.

I believe history – especially recent history — teaches us something very different.  While information technology markets certainly go through cycles, they tend to oscillate between open and closed more fluidly than Wu suggests – and that dynamic is accelerating today.  Moreover, during periods which Wu regards as more “closed,” things aren’t always as closed as he suggests.  Or, more importantly, the “closed” models typically spawn more innovation than Wu and others bother acknowledging. It’s during what some regard as a market’s darkest hour when some of the most exciting forms of disruptive technologies and innovation are developing.  Finally, to the extent some markets are completely locked-down for a time, it’s more often than not due to public policies that facilitate that lockdown or the “closing” of systems.

I spent a great deal of time making these points in the second essay I submitted to the recent Concurring Opinions symposium about Jonathan Zittrain’s The Future of the Internet. In my essay, “On Defining Generativity, Openness, and Code Failure,” I argued that what separates our worldviews primarily comes down to the more static (or “stasis”) mindset that Lessig, Zittrain, and Wu adopt in their work.  They take static snapshots of markets at what seems to be their darkest hour and then suggest there’s little chance of escaping that Hell.

Of course, how one defines Hell is important. What Wu does in his book, following the lead set by Lessig and Zittrain, is to “define-down” market failure.  If you regard proprietary business models, property rights, or the success of a small handful of companies as the enemy of “openness” and innovation, then it’s easy to see why you might buy into the notion that market failure is ubiquitous and that “steps must be taken” to correct it.   If, on the other hand, you understand that markets are in a constant state of flux, and that those other variables listed above are not necessarily at odds with openness and innovation, then, like me, you’re more cautious about calling in the Code Cops to steer markets and outcomes in other directions.

But the really important point here is that markets evolve. Moreover, that evolution takes place at a much faster clip in the digital arena than it does in other markets. Innovators don’t sit still. People innovate around “failure.” Indeed, “market failure” is really just the glass-is-half-empty view of a golden opportunity for innovation. Markets evolve. New ideas, innovations, and companies are born.  And things generally change for the better—and do so rapidly.

Consider my two favorite case studies from recent times: the AOL-Time Warner merger and the supposed Microsoft monopoly.

The AOL Case Study

When Lessig penned Code a decade ago, it was AOL that was set to become the corporate enslaver of cyberspace. For a time, it was easy to see why Lessig and others might have been worried.  25 million subscribers were willing to pay $20 per month to get a guided tour of AOL’s walled garden version of the Internet.  Then AOL and Time Warner announced a historic mega-merger that had some predicting the rise of “new totalitarianisms” and corporate “Big Brother.”

But the deal quickly went off the rails. By April 2002, just two years after the deal was struck, AOL-Time Warner had already reported a staggering $54 billion loss. By January 2003, losses had grown to $99 billion. By September 2003, Time Warner decided to drop AOL from its name altogether and the deal continued to slowly unravel from there.  In a 2006 interview with the Wall Street Journal, Time Warner President Jeffrey Bewkes famously declared the death of “synergy” and went so far as to call synergy “bullsh*t”!  In early 2008, Time Warner decided to shed AOL’s dial-up service and then to spin off AOL entirely.  Looking back at the deal, Fortune magazine senior editor at large Allan Sloan called it the “turkey of the decade.” The formal divorce between the two firms took place in 2008. Further deconsolidation followed for Time Warner, which spun off its cable TV unit and various other properties.

(The hysteria about AOL’s looming monopolization of instant messaging—and with it, the rest of the web—seems particularly silly: Today, anyone can download a free chat client like Digsby or Adium to manage multiple IM services from AOL, Yahoo!, Google, Facebook and just about anyone else, all within a single interface, essentially making it irrelevant which chat service your friends use.)

In the larger scheme of things, AOL’s story has already become an afterthought in our chaotic cyber-history. But we shouldn’t let those old critics forget about their lugubrious lamentations.  To recap: the big, bad corporate villain of Lessig’s Code attempted to construct the largest walled garden ever, and partner with a titan of the media sector in doing so—and this dastardly plot failed miserably.

To Wu’s credit, he acknowledges that AOL-Time Warner was “a surprising wreck” and that “AOL was [a] dinosaur limping into the new age” before the mass Internet. (p. 262-3) [Of course, there’s no mention in the book of the dire prognostications some of his academic compatriots made a decade ago about AOL or its deal with Time Warner.]  Surprisingly, however, Wu suggests that what ultimately undermined the deal was Net neutrality! He argues that, in order for the merger to achieve the perfect Hell of a giant corporate walled garden, AOL Time Warner would have needed to “subdue Google, Yahoo! and their many cousins. In short, to be viable, the firm would have needed to overturn the net neutrality principles at the core of the Internet’s design.” (p. 267)

Now, isn’t that interesting since, quite obviously, there have been no Net neutrality laws on the books despite the fact that critics like Wu have been hollering for their supposed need!  In a similar vein, Wu recently told Forbes magazine “If there were no net neutrality, Skype would have already been suppressed.”  Again, there is no formal Net neutrality law in place today, so what Wu is essentially saying is that market norms, not regulatory edicts, ensured that new applications came online and that market power was checked.

Even more interesting is the fact that Wu continues on to essentially make the libertarian case against formal Net neutrality regulation when he argues:

The only entity that has so far really succeeded in such a mission [of overturning the net neutrality principles at the core of the Internet’s design] is the government of mainland China, as we saw in 2010, when it drove an exasperated Google out of its sovereign territory by demanding extensive control over what Google let users find.  Indeed, the feat requires such power and resources as belong uniquely to the state: access to the very choke points of a nation’s communications infrastructure, its Master Switch. AOL Time Warner, however vast, did not have police power—it could not imprison Google’s executives for failing to block Wikipedia or Disney content. (p. 267)

Exactly right; it really does come down to that profound difference between who has coercive police power (the State) and who does not (corporations).  It’s not just a difference of degree but a difference of kind.   So, welcome to libertarian movement, Tim Wu!  I plan on citing that block quote in every paper I write from now on regarding why we don’t need preemptive Net neutrality regulation!

The Microsoft Case Study

I want to also briefly mention the Microsoft case study since it is quite instructive in this regard.

It’s suddenly quite easy to forget just how much hand-wringing took place in the late 1990s and early 2000s over Microsoft’s dominance of the web browser market.  Dour predictions of perpetual Internet Explorer lock-in followed.  For a short time, there was some truth to this.  But, yet again, innovators weren’t just sitting still; exciting things were happening.  In particular, the seeds were being planted for the rise of Firefox and Chrome as robust challengers to IE’s dominance—not to mention mobile browsers.

Of course, it’s true that roughly half of all websurfers still use a version of IE today.  But IE’s share of the market is falling rapidly as viable, impressive alternatives now exist and innovation among these competitors is more vibrant than ever.  That’s all that counts. The world changed, and for the better, despite all the doomsday predictions we heard less than a decade ago about Microsoft’s potential dominance of cyberspace.  Moreover, all the innovation taking place at the browser layer today certainly undercuts the gloomy “death of the Net” or “death of openness” thesis set forth by Zittrain and Wu.

Indeed, as Tim O’Reilly argues, this case study illustrates the power of markets to evolve and “route around” market failure or excessively closed systems even during what appears to be a certain sector’s darkest hour:

Just as Microsoft appeared to have everything locked down in the PC industry, the open Internet restarted the game, away from what everyone thought was the main action. I guarantee that if anyone gets a lock on the mobile Internet, the same thing will happen. We’ll be surprised by the innovation that starts happening somewhere else, out on the free edges. And that free edge will eventually become the new center, because open is where innovation happens. […] it’s far too early to call the open web dead, just because some big media companies are excited about the app ecosystem. I predict that those same big media companies are going to get their clocks cleaned by small innovators, just as they did on the web.

Lessons Learned – Or Ignored?

From these case studies, one would hope that the Openness Evangelicals would have gained a newfound appreciation for the evolutionary and dynamic nature of markets and come to understand that, especially in markets built upon information and digital code, the pace and nature of change is unrelenting and utterly unpredictable.  Indeed, contra Lessig’s lament in Code that “Left to itself, cyberspace will become a perfect tool of control,” cyberspace has proven far more difficult to “control” or regulate than any of us ever imagined.  The volume and pace of technological innovation we have witnessed in information sectors over the past decade has been nothing short of stunning.

Critics like Zittrain and Wu, however, wants to keep beating the cyber-sourpuss drum.  So, the face of corporate evil has to change. Today, Steve Jobs has become the supposed apotheosis of all this closed-system evil instead of AOL.  Jobs serves as a prime villain in the books of Zittrain and Wu and in many of the essays they and other Openness Evangelicals pen. But their enemies list is growing longer.  Today, according to the narratives in Zittrain and Wu’s books, it’s not just one of two corporate titans we need to worry about, but just about every major player in the high-tech ecosystem—telcos, cable companies, wireless operators, entertainment providers, Facebook, and others.

Even Google — Silicon Valley’s supposed savior of Internet openness — is not spared their scorn.  “Google is the Internet’s switch,” Wu argues. “In fact, it’s the world’s most popular Internet switch, and as such, it might even be described as the current custodian of the Master Switch.” More ominously, he warns, “it is the switch that transformed mere communications into networking—that ultimately decides who reached what or whom.” (p. 280)

It seems, then, that the face of “closed” evil is constantly morphing.  But shouldn’t that tell us something about how dynamic these markets are?!  I look forward to reading the next edition of Tim’s book to see who the new villains are and whether he’s drawn any lessons from the constantly changing cast of characters.

Conclusion

In sum, history counsels patience and humility instead of Chicken Little-ism and incessant calls for preemptive regulation to serve some amorphous, politically-defined “public interest.”  More generally, history counsels what we might call “technological agnosticism.” In particular, we should avoid declaring “openness” – especially of the mandated variety — a sacrosanct principle and making everything else subservient to it without regard to cost or consumer desires.  As Wired’s Chris Anderson notes, “there are many Web triumphalists who still believe that there is only One True Way, and will fight to the death to preserve the open, searchable common platform that the Web represented for most of its first two decades (before Apple and Facebook, to name two, decided that there were Other Ways).”  The better position is one based on a general agnosticism regarding the nature of technological platforms and change.  In this view, the spontaneous evolution of markets has value in its own right, and continued experimentation with new models—be they “open” or “closed,” “generative” or “tethered”—should be permitted.

Importantly, one need not believe that the markets are “perfectly competitive” to accept that they are “competitive enough” compared to the alternatives—especially those re-shaped by the sort of regulation Wu and others advocate.  “Market failures” or “code failures” are ultimately better addressed by voluntary, spontaneous, bottom-up, marketplace responses than by coerced, top-down, governmental solutions.  Moreover, the decisive advantage of the market-driven, evolutionary approach lies in the rapidity and nimbleness of those responses compared to regulatory alternatives.

Thus, in closing, Tim Wu’s assertion yesterday that I was “missing the point of the book… [which is] to describe the world we live in,” is based on his belief that he has accurately described our world, its history, and the forces that move it.  As I’ve suggested here, there’s a very different way of looking at things.  In my opinion, Wu’s Master Switch is just too hung up on the static snapshot mindset and a bit too obsessed with the supposed One True Way of doing things.


[ Note: In the next installment, I will address Wu’s mistaken claim that purely free markets have guided America’s communications and media sectors over the past century and his assertion that “the purely economic laissez-faire approach… is no longer feasible.”]

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Are Digital Generativity and Openness Overrated? https://techliberation.com/2010/02/23/are-digital-generativity-and-openness-overrated/ https://techliberation.com/2010/02/23/are-digital-generativity-and-openness-overrated/#comments Wed, 24 Feb 2010 03:34:42 +0000 http://techliberation.com/?p=26473

So, do I need to remind everyone of my ongoing rants about Jonathan Zittrain’s misguided theory about the death of digital generativity because of the supposed rise of “sterile, tethered” devices? I hope not, because even I am getting sick of hearing myself talk about it. But here again anyway is the obligatory listing of all my tirades: 1, 2, 3, 4, 5, 6, 7, 8 + video and my 2-part debate with Lessig and him last year.

You will recall that the central villain in Zittrain’s drama The Future of the Internet and How to Stop It is big bad Steve Jobs and his wicked little iPhone. And then, more recently, Jonathan has fretted over those supposed fiends at Facebook. Zittrain’s worries that “we can get locked into these platforms” and that “markets [will] coalesce [around] these tamer gated communities,” making it easier for both corporations and governments to control us.  More generally, Zittrain just doesn’t seem to like that some people don’t always opt for the same wide open general purpose PC experience that he exalts as the ideal. As I noted in my original review of his book, Jonathan doesn’t seem to appreciate that it may be perfectly rational for some people to seek stability and security in digital devices and their networking experiences—even if they find those solutions in the form of “tethered appliances” or “sterile” networks, to use his parlance.

Every once and awhile I find a sharp piece by someone out there who is willing to admit that they see nothing wrong with such “closed” platforms or devices, or they even argue that those approaches can be superior to the more “open” devices and platforms out there. That’s the case with this Harry McCracken rant over at Technologizer today with the entertaining title, “The Verizon Droid is a Loaf of Day-Old Bread.” McCracken goes really hard on the Droid — which hurts because I own one! — and I’m not sure I entirely agree with his complaint about it, but what’s striking is how it represents the antithesis of Zittrainianism: 

Yesterday, Google announced Google Earth for Android. It looks neat–and it requires Android 2.1, so it won’t run on the less-than-four-months-old Droid. That’ll get fixed when Verizon rolls out an update for the Droid, which may happen soon. But it points out frustrating, potentially crippling issues with Android: The platform is splintering, and it’s changing so rapidly that the majority of Android handsets feel stale. Even the Droid–I’m not sure if it’s a coincidence that Amazon is selling it for fifty bucks, or one-quarter of Verizon’s original after-rebate price. Over at InfoWorld, Galen Gruman has a good post with more evidence of Android’s fractured nature. There are multiple, incompatible versions of the OS out there, and I don’t know of any good reason to think the situation’s going to get better rather than worse. Google surely isn’t setting a good example by releasing an Android version of Google Earth which won’t run on most Android phones.

But wait… doesn’t Android represent an example of near Nirvana in terms of Zittrainian generativity? Isn’t this the model we should all be hungry to have dominate all devices? McCracken sure doesn’t think so. He’s all aboard the Steve Jobs “Screw Openness” Express:

Do I need to recap the situation with Apple’s iPhone OS? It gets only one major upgrade a year, instantly available to all owners of existing devices, and all software works on any iPhone OS gizmo that has the proper hardware. Android will never be like that, of course: It’s an open-source product that runs on an array of gadgets with varying hardware specs and capabilities. But how big a bummer is it going to be if it takes a nerdish interest in version numbers to determine if a given app works on your phone? Isn’t it a problem if the hot Android phone of the 2009 holiday season feels stale by February, even if the situation is somewhat temporary? In short, wouldn’t it be healthy for Android if it evolved a little more slowly, and everyone responsible for its fate agreed that compatibility is a key goal?

Now isn’t that interesting! Here, in essence, we have an argument that generativity and openness are bad for us.  McCracken is praising Apple’s “you’ll get your OS upgrades when we let you” model versus the wild west approach of rolling upgrades for Android devices. Are you OK with that? Personally, I’m not. But more on that in a moment.

Part of what McCracken is actually getting at here is something I talked about in an old essay here wondering what constitutes “Too Much Platform Competition.” That is, how many platforms or operating systems are too many? Do we really need dozens of video game consoles? I don’t know about you, but I personally wouldn’t want to buy more than the 3 consoles I have already spent way too much money on. And game developers absolutely hate having to code for multiple platforms. The same is now true for mobile application developers. They are not particularly fond of the sudden proliferation of mobile operating systems and apps stores using competing standards. It’s just more development expense from their perspective.

What the iPhone brings, by contrast, is stability, security, and certainty.  People value that even if Zittrain fears it.

But now for the not so dirty little secret I have whispered here before — I hate Apple for all this!!  I am more of Zittrainian than Zittrain!  Jonathan actually carries an iPhone around in his pocket when I wouldn’t consider owning one in a million years.  I want to hack away at my stuff and tweak it to my heart’s content. And when McCracken talks about that “nerdish interest in version numbers to determine if a given app works on your phone,” well, that’s me, baby!  I am the kind of uber-dork that sits around constantly hitting the refresh button on the Droid’s “About Phone” menu to see if new OS upgrades are ready to roll.  (Yes, sad, I know. Do you believe someone actually married a dork like me?) And as far as security and stability go… well I say screw that. I have bricked several phones trying to hack away at them. It doesn’t help that I almost never know what I am doing, but I do have an healthy spirit of digital adventurism!

Anyway, here’s the really important point: We can have the best of both worlds — a world full of plenty of “tethered” appliances and semi-walled gardens, but also plenty of generativity and openness at the same time. And we can have plenty of hybrid solutions, too.  On the “generative-vs.-sterile appliance” spectrum, the range of devices and platforms just continues to grow and grow in both directions.

Moreover, these “open” vs. “closed” notions are always hopelessly over-simplified in digital technology policy debates. It’s rare to find any device or platform that is perfectly open or closed. Indeed, the very notion that Apple is a “closed’ platform is somewhat misleading. As I mentioned just last night, Apple’s App Store alone has over 100,000 apps in 20 different categories (available in 77 countries) to choose from. So, even though Steve Jobs & Co. keep a tight grip on operating system upgrades and Apps Store policies, the reality is that there’s a whole lot of generativity taking place on top of that OS and within that app store. It’s somewhat reminiscent of what happened when supposedly Big Bad Bill Gates pissed off the whole world in the 90s by building a code empire around a proprietary operating system that he tightly controlled:  Countless exciting innovations developed for that platform even if Bill & Microsoft didn’t hand over the keys to OS to the rest of the world so they could tinker away with it.

Again, I am not saying that generativity and openness are overrated; only that they other side of the story rarely gets told.  And the ideal world, of course, is one in which we have options on both sides of the “open” vs. “closed” spectrum from which to choose. Luckily, that is increasingly the world we live in today.

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Google v. Microsoft v. Apple v. Facebook: Nothing Obama Can’t Sort Out Over a Beer https://techliberation.com/2009/08/04/google-v-microsoft-v-apple-v-facebook-nothing-obama-cant-sort-out-over-a-beer/ https://techliberation.com/2009/08/04/google-v-microsoft-v-apple-v-facebook-nothing-obama-cant-sort-out-over-a-beer/#comments Tue, 04 Aug 2009 21:47:37 +0000 http://techliberation.com/?p=19935

Maybe Obama should invite Google CEO Eric Schmidt and Microsoft CEO Steve Ballmer over to the White House for a beer to settle the two companies’ differences!

http://www.youtube.com/v/Q0umKaGxkkE While he’s at it, Obama might want to invite Apple CEO Steve Jobs, too, since the common cause Apple and Google once made against Microsoft now seems to be giving way to increased rivalry between the two titans of Internet cool. Or how about Facebook CEO Mark Zuckerberg, given Facebook’s growing challenge to Google? Yahoo!’s Carol Bartz seems to get along much better with everyone than the boys in the group, so she’d probably help Obama keep things under control. The Internet industry’s war-of-all-against-all is reminiscent of Tom Lehrer‘s classic 1960s satire “National Brotherhood Week”:

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The Great ‘Open v. Closed’ Debate Continues: Google Phone v. Apple iPhone https://techliberation.com/2008/09/28/the-great-open-v-closed-debate-continues-google-phone-v-apple-iphone/ https://techliberation.com/2008/09/28/the-great-open-v-closed-debate-continues-google-phone-v-apple-iphone/#comments Sun, 28 Sep 2008 16:38:33 +0000 http://techliberation.com/?p=12981

“Hasn’t Steve Jobs learned anything in the last 30 years?” asks Farhad Manjoo of Slate in an interesting piece about “The Cell Phone Wars” currently raging between Apple’s iPhone and the Google’s new G1, Android-based phone. Manjoo wonders if whether Steve Jobs remembers what happen the last time he closed up a platform: “because Apple closed its platform, it was IBM, Dell, HP, and especially Microsoft that reaped the benefits of Apple’s innovations.” Thus, if Jobs didn’t learn his lesson, will he now with the iPhone? Manjoo continues:

Well, maybe he has—and maybe he’s betting that these days, “openness” is overrated. For one thing, an open platform is much more technically complex than a closed one. Your Windows computer crashes more often than your Mac computer because—among many other reasons—Windows has to accommodate a wider variety of hardware. Dell’s machines use different hard drives and graphics cards and memory chips than Gateway’s, and they’re both different from Lenovo’s. The Mac OS, meanwhile, has to work on just a small range of Apple’s rigorously tested internal components—which is part of the reason it can run so smoothly. And why is your PC glutted with viruses and spyware? The same openness that makes a platform attractive to legitimate developers makes it a target for illegitimate ones.

I discussed these issues in greater detail in my essay on”Apple, Openness, and the Zittrain Thesis” and in a follow-up essay about how the Apple iPhone 2.0 was cracked in mere hours. My point in these and other essays is that the whole “open vs. closed” dichotomy is greatly overplayed. Each has its benefits and drawbacks, but there is no reason we need to make a false choice between the two for the sake of “the future of the Net” or anything like that.

In fact, the hybrid world we live in — full of a wide variety of open and proprietary platforms, networks, and solutions — presents us with the best of all worlds. As I argued in my original review of Jonathan Zittrain’s book, “Hybrid solutions often make a great deal of sense. They offer creative opportunities within certain confines in an attempt to balance openness and stability.”  It’s a sign of great progress that we now have different open vs. closed models that appeal to different types of users.  It’s a false choice to imagine that we need to choose between these various models.

Which raises a second point I always stress: There are an infinite number of points along the “open vs. closed” spectrum.  In reality, there are very few products that are perfectly “open” or “closed” out there. These are terms of art, not science.  The iPhone is becoming more “open” with each passing day.  Granted, it’s not as open as the Windows Mobile and certainly not as open as Android, but many people feel those platforms aren’t perfectly open either, or have that they have their own sets of problems.  Bottom line is, you can shop around and find the phone (and level of “openness”) that is right for you. No one is forcing you to buy an iPhone.

Third, efforts to tightly bottle up any technology or business model these days are usually doomed to fail. It’s not just the iPhone that is cracked in mere hours these days; seemingly every new gadget and service has a small army of hackers waiting to pounce when the product doesn’t do everything that consumers want it to. It’s getting harder and harder for product developers to “cripple” or limit functionality out of the gate.  They either offer it immediately or someone else we make sure it is offered for them.

Fourth and final point: The proper policy position with regards to the “open vs. closed” debate should be one of techno-agnosticism.  Lawmakers and courts should not be tilting the balance in one direction or the other.  Let the great experiment (and debate) continue.

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Enough anti-iPhone rants… just get another phone! https://techliberation.com/2008/08/11/enough-anti-iphone-rants-just-get-another-phone/ https://techliberation.com/2008/08/11/enough-anti-iphone-rants-just-get-another-phone/#comments Tue, 12 Aug 2008 01:10:12 +0000 http://techliberation.com/?p=11878

iPhone 1984 Channeling Jonathan Zittrain, Alex Curtis of Public Knowledge continues his incessant ranting against Apple and the iPhone for supposedly not being open enough and, therefore, somehow harming consumers and 3rd party developers. In his essay today about the supposed evils of the iPhone App Store, he accuses Apple of an “1984 kind of total control.”

Hmmm, let’s see… Apple creates a great new product that is so insanely sexy and innovative that even Apple-haters like me are forced to admit that it is the most brilliant tech gadget of the decade. Millions of people have flocked to Apple stores, stood in lines so long that you’d think they were giving away free pot and floor bongs inside, and then voluntarily handed over seemingly all their disposable monthly income to get their hands on one of these things.

OK, so how is this like 1984 again? Is evil Steve Jobs forcing the masses to buy this product? Of course not. So it strikes me that we can easily dispense with analogies to a book about coercive, totalitarian government control like 1984.

And if all this anti-iPhone ranting is just about the degree of control that Steve Jobs and Apple exercise over product add-ons then hey, I’ve got an easy answer for you: go get a different phone! My current phone — and I tend to cycle through phones pretty quickly in the search of increasing functionality and 3rd party app-friendliness — is the wonderful HTC Touch. Specifically, I have the newer model that Verizon is offering with the oh-so-clunky moniker XV6900. (The Verizon branding / marketing department isn’t going to win any awards with robotic phone names like that!) Anyway, despite the silly name, this phone is a masterpiece. It has more functions than I know what to do with. 6900 And did you say you want 3rd party apps? Well, head over to Handango and check out the HTC Touch store there. I hope you have some time on your hands because you’ll be sorting through 5,100+ software apps available there for the device. But that just scratches the surface. There are so many other apps and freeware I have pulled off the Net for this phone that I can’t even begin to count them all. Hell, spend a couple of hours over on the Howard Forums trying to sort through all the stuff that you can do with this phone and your head will start to spin. It’s insane. And, as I’ve found out with this phone and my previous and equally app-friendly HTC XV6700, it’s also an easy way to quickly eat up all your storage and slow your memory down to a crawl.

The bottom line is, Apple offers people a choice. Yes, there is a little more hand-holding in their world than I can stand. I wrote about that in my original review of Zittrain’s book; a book that makes Apple out to be some sort of evil anti-consumer nemesis because their products aren’t perfectly open to tinkering. But that’s not what everyone is looking for in a phone. Many people just want stability, sexiness, and a somewhat smart device with a degree of tinkerability. Thus, Apple creates some trade-offs for its consumers, but it’s a deal most of them will gladly take.

Again, if Curtis doesn’t like the sound of that deal, then he should just go get a different device. There are millions of people who would happily buy his old iPhone, or take his place in line the next time Jobs rolls out another upgraded iPhone at an even lower price.

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Apple, openness, and the Zittrain thesis https://techliberation.com/2008/03/30/apple-openness-and-the-zittrain-thesis/ https://techliberation.com/2008/03/30/apple-openness-and-the-zittrain-thesis/#comments Sun, 30 Mar 2008 21:40:30 +0000 http://techliberation.com/2008/03/30/apple-openness-and-the-zittrain-thesis/

[Note: You might want to first read my review of Jonathan Zittrain’s book to give this essay some context.]

Jonathan Zittrain must have been smiling as he read Leander Kahney’s excellent Wired cover story this month, “How Apple Got Everything Right By Doing Everything Wrong.” In a sense, the article vindicates Zittrain’s thesis in The Future of the Internet–And How to Stop It. Apple Jobs soviet art style Again, in his provocative book, Zittrain argues that, for a variety of reasons, the glorious days of the generative, open Internet and general-purpose PCs are supposedly giving way to closed networks and a world of what he contemptuously calls “sterile, tethered devices.” And Apple products such as the iPhone, the iPod, and iTunes serve as prime examples of the troubling world that await us. And Kahney’s article confirms that Apple is every bit as closed and insular as Zittrain suggests. Kahney nicely contrasts Apple with Google, a company that “embraces openness,” trusts “the wisdom of crowds,” and has its famous “Don’t be evil” philosophy:

It’s ironic, then, that one of the Valley’s most successful companies ignored all of these tenets. Google and Apple may have a friendly relationship — Google CEO Eric Schmidt sits on Apple’s board, after all — but by Google’s definition, Apple is irredeemably evil, behaving more like an old-fashioned industrial titan than a different-thinking business of the future. Apple operates with a level of secrecy that makes Thomas Pynchon look like Paris Hilton. It locks consumers into a proprietary ecosystem. And as for treating employees like gods? Yeah, Apple doesn’t do that either.

On the other hand, Kahney’s article serves as vindication of my response to Zittrain’s book since the article illustrates how, despite breaking all the typical rules of Silicon Valley, the company is more successful than ever and has legions of happy customers. Again, in my review of his book, I argued that there is no reason that we can’t have the best of both worlds. Much of the time, “open” systems produce the best results. Other times, more closed, proprietary models give rise to great products. Today’s digital marketplace is full of wonderful devices and services of both flavors. Apple’s success proves that point, as Kahney’s Wired article shows:

by deliberately flouting the Google mantra, Apple has thrived. When Jobs retook the helm in 1997, the company was struggling to survive. Today it has a market cap of $105 billion, placing it ahead of Dell and behind Intel. Its iPod commands 70 percent of the MP3 player market. Four billion songs have been purchased from iTunes. The iPhone is reshaping the entire wireless industry. Even the underdog Mac operating system has begun to nibble into Windows’ once-unassailable dominance; last year, its share of the US market topped 6 percent, more than double its portion in 2003. It’s hard to see how any of this would have happened had Jobs hewed to the standard touchy-feely philosophies of Silicon Valley. Apple creates must-have products the old-fashioned way: by locking the doors and sweating and bleeding until something emerges perfectly formed. It’s hard to see the Mac OS and the iPhone coming out of the same design-by-committee process that produced Microsoft Vista or Dell’s Pocket DJ music player. Likewise, had Apple opened its iTunes-iPod juggernaut to outside developers, the company would have risked turning its uniquely integrated service into a hodgepodge of independent applications — kind of like the rest of the Internet, come to think of it.

Importantly, it’s not just that Apple has thrived, it’s that consumers have loved their products to the point that there is a sort of “cult of Apple” out there. I should make clear that I am no Apple fanboy. As my TLF colleagues Tim Lee and Jerry Brito can attest, I am constantly making fun of them for their love of Apple products. I am willing to deal with the warts associated with the PC environment because I love the more open-ended nature of it. That being said, there are times when I have to swallow my pride and admit to Tim and Jerry that, in many ways, their Apple products are superior to my PC and Windows-based toys. It’s impossible to spend a few minutes with the iPhone or the latest iPods and Macs and not fall in love with those devices and their interfaces. They are truly spectacular. Thus, as Kahney’s article makes clear, whether you love him or hate him, you have to admit that Jobs is on to something:

No other company has proven as adept at giving customers what they want before they know they want it. Undoubtedly, this is due to Jobs’ unique creative vision. But it’s also a function of his management practices. By exerting unrelenting control over his employees, his image, and even his customers, Jobs exerts unrelenting control over his products and how they’re used. And in a consumer-focused tech industry, the products are what matter.

Indeed they are. And even though Zittrain labels Apple’s products “sterile and tethered,” there is no doubt that the company’s approach has produced some wonderful results. Personally, they are not for me since I prefer all those “general purpose” devices that Zittrain lionizes. But, again, we can have both. Let Steve Jobs be a control freak and keep those walls around Apple’s digital garden high and tight if he wants. There are plenty of other wide open gardens for the rest of us to play in.

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