Editor’s Note: Welcome to our weekly Reader Forum section. In an attempt to broaden our interaction with our readers we have created this forum for those with something meaningful to say to the wireless industry. We want to keep this as open as possible, but maintain some editorial control so as to keep it free of commercials or attacks. Please send along submissions for this section to our editors at: dmeyer@rcrwireless.com.
HTML5 is a language for structuring and presenting content for the Web, a core technology of the Internet. It is the fifth revision of the HTML standard and as of September 2011, is still under development. Its core aims have been to improve the language with support for the latest multimedia while keeping it easily readable by humans and consistently understood by computers and devices. You may ask, what the big deal, why should I care in wireless telecoms? The short answer is that HTML5 will be the technology that will create a multibillion dollar value chain disruption for app developers, enterprises, for Apple, for Google and for wireless operators – does that make it interesting enough?
Let me explain; consumers today are largely using a native app-based model where apps are downloaded largely from the two dominant storefronts, and the app resides on the device. There are a few apps that reside on the Web, but historically their performance has been subpar due to either wireless broadband speeds or lack of functionality due to HTML access to phone features. Two significant milestones will be game changers for Web-based apps, namely high-speed broadband wireless (4G and beyond) and HTML5.
You should be asking the question about now, “Well if I don’t have to download apps, and they will work through my browser, am I no longer limited to any store, OS or device requirement?” Correct, and this is where Apple’s solid ecosystem differentiator starts to weaken. A big benefit for developers to pay Apple 30% of their revenue for apps downloaded was the ability to work seamlessly and be easily searchable. But with HTML5 apps, Google (or other) search engines can locate them and provide a payment platform, user feedback and rating scoring. If required, HTML5 apps can be sold directly through Apple’s App Store or Android Marketplace after being placed in a simple “native” app shell such as Nimblekit. There is a very strong incentive for app developers to embrace HTML5 as they would not need to develop and test apps for different OS’s and devices – a single HTML5 developed app would work on any smartphone. HTML5 standard development currently supports about 95% of the functionality possible compared to native apps, and the gap is quickly closing for areas such as touch interfaces, audio, graphics, camera, Bluetooth, etc.
For operators and infrastructure OEMs, HTML5 will create far more “chatter” on wireless networks and this will impact network accessibility and capacity. Steps need to be taken with infrastructure vendors to ensure that HTML5 revenue and non-revenue generating traffic can be easily categorized, prioritized, dimensioned and quality of service rules applied. More intelligent OSS platforms will need to be developed to be able to interrogate services offered and apply QoS and billing rules and allocate resources in real time. Operators have an opportunity to leverage their core subscriber base and wireless asset to position themselves as the core partner with developers and create a direct revenue share model.
For device OEMs, HTML5 provides a lifeline for innovation and differentiation in terms of being able to make choices for developing their own mobile operating systems without the fear of not being able to have enough content or developer attention. There also exists the opportunity to license an open Android OS and create differentiators around HTML5 App development and integration with their hardware. There is potential to reduce hardware costs and improve profitability by eliminating unnecessary processing power required only for native apps and in turn improve battery life. The more involved device OEM’s are with HTML5 standard development, the better control and independence they will have over building their own differentiated product and content offerings.
For enterprises seeking mobile presence, app development costs will reduce tremendously and concerns over supported devices for business HTML5 Apps will be eliminated. HTML5 is the technology that could catapult enterprises truly embracing mobility for business process improvement. For the billion dollar app development community and the jobs it creates, there will be an impact of HTML5.
In summary, there are a lot of benefits for HTML5, but it would be premature to say that the battle is won, given one of the most powerful and innovative companies, Apple, stands to lose the most from HTML5 app advancements. I have no doubt that plans are already in place to ensure the Apple ecosystem and value it generates are kept intact, but looking at trends in computing where the “brains” are moving to the cloud, it makes sense for HTML5 Apps for mobility. Hindsight will be 20/20, but the strategies created today around HTML5 could redefine the value chain in the mobile ecosystem.
