Wednesday 25 June 2008

AI 9: AI will determine the future of mobile phones as closed systems become the new modus operandi for web business


All the major Cloud Players like Google, Microsoft, Yahoo and Apple are bringing AI to the mobile. It is clear that AI will govern human interaction and orchestration of services. This interaction will be primarily through a combination of voice and touch.

The importance of the mobile cannot be underestimated as it is a physical gatekeeper to Cloud Services, which are closed systems. So anyone that provides a seamless service from the device to the application service creates a competitive barrier to entry.

What is a closed system?

Web 2.0 was the end of the internet era of open systems whereby the content and click-throughs can be accessed by third parties, in particular search engines like Google. There is growing concern from web 2.0 authors that their content can be copied and used without permission. This is all about to change.


Web 3.0 and beyond are closed systems that cannot be accessed by third parties, in particular search engines like Google, aggregators of content and aggregators of click-through intel like ComScore. There have already been a lot of examples of closed systems from the past such as an online banking application. Another example is avatar-based social networks such as Second Life. Google Search cannot access the inside of these applications. ComScore share price is now in decline for this reason especially as Google itself is adopting Web 3.0 closed systems thus starving ComScore from gathering intel.

There is no doubt that Apple with their iPhone and its recent 3G capabilities demonstrates the sheer power of an integrated and seamless closed system service. Their closed service stops Google Search from seeing inside it. Apple have designed not only search but also many other ways for customers to find what they way such as via catalogues, notifications, personalised prompts, popularity lists and much more to help its customers. With the launch of the iPod as part of this closed system Apple set the new benchmark for extending the closed system to the external device.

It is no wonder Google are becoming more concerned with Apple than Microsoft. The Google Android, though in some difficulties, is crucial for Google to develop a closed system that is attractive for 3rd party developers and providers(refer to blog reference AI 3).

Extended closed systems that include devices threaten Google’s core business of search-based advertising.

The future of the web is AI (refer to blog reference AI 1). AI is a closed system and signals the end of the old fashioned models of open content and click-throughs.