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How to build an iPad competitor

It’s funny. Or sad. Or predictable. It’s predictably sadly funny that many tech media outlets are saying that Apple’s iPad finally has a bonafide competitor in the Microsoft Surface. Set aside for now that Surface does look genuinely interesting, that the price hasn’t been set, and the thing isn’t even out yet. For a piece of portable networking technology like a smartphone or tablet to be successful on the scale at which Apple operates, you need to have an ecosystem, a network of interacting devices, software, products, and services that work together…hardware + software is not enough. Apple, Google (and partners), Amazon, and possibly Microsoft are the only companies with the expertise and pockets deep enough to build their own ecosystems. Ok, maybe Facebook in a couple years or if Nokia can dig themselves out of their current hole, but that’s really about it.

The current parts of the phone/tablet/media ecosystem are as follows:

1. A piece of hardware at a price that compares favorably to its quality and features. Apple sells premium hardware with great features at a premium-but-still-reasonable price. Google and their partners offer a range of devices at different prices corresponding to different levels of quality and features offered. Amazon offers low-price hardware with a relatively limited but appropriate set of features. Microsoft looks to have a nice piece of hardware with promising features but the price point is pending.

2. An OS that takes proper advantage of the hardware capabilities with features in line with the price of the device. Apple has iOS, with most of its devices running the same version. Google and their partners have many different versions of Android, most of which are not the most recent version. Amazon runs a customized Android OS for the Kindle Fire and a modified version of Linux for the non-Fire Kindles. Microsoft has Windows 8, which will eventually run, in different configurations, on lots of different kinds of hardware, from desktop computers to phones.

3. An app store stocked with the applications that smartphone and tablet owners want to use. Apple has the comprehensive App Store. Google, etc. have Google Play (née Android Market), Amazon’s Appstore for Android, and other stores, on which you can get most of the most popular apps. Amazon has their Appstore for Android for the Kindle Fire. Microsoft has the Windows Phone Marketplace for the Windows Phone with a more limited selection than the other stores…it’s unclear what their plans are for a Windows 8 app store.

4. A media store with books, movies, and TV shows. Apple has the iTunes store (as well as iBooks, Newstand, etc.). Android has Google Play. Amazon has the Kindle store and Amazon Instant Video. Will Microsoft offer a way to purchase media across their Windows 8 platform? Does Windows Media Player do this?

5. A digital media hub for managing media, apps, software updates, etc. This part is a bit more optional than the others since media management is moving to the device and the cloud, but still. Apple has iTunes. Android has a variety of possible desktop managers and management happens on the device or through the cloud? You manage the Kindle stuff through Amazon’s site and on the device. Microsoft will probably go cloud/device-based at this point?

6. An integrated cloud solution for syncing apps, media, and documents across devices. Again, this isn’t crucial but will likely become so over time. Apple has iCloud. Android has Google’s suite of apps (Gmail, calendar, Google docs, Google Drive, etc.). Amazon uses Whispernet and is leveraging AWS in various ways (e.g. Cloud Drive). Will Microsoft leverage SkyDrive for their tablets and phones?

7. Sister devices. Apple has the iPhone, iPad, iPod touches, Apple TV, and their full line of OS X-powered computers. Android runs on phones and tablets, but can also run on an increasing number of other devices (Google TV, etc.). And maybe ChromeOS devices? Amazon doesn’t really have an interacting network of devices. Microsoft will have phones, the Surface, billions of desktop computers running Windows 8, and, dare I even say it, the Xbox.

You don’t need to have every single part of the ecosystem for it to thrive but the more the better. Again, Surface does look genuinely interesting (as do the Windows phones from Nokia), Windows 8 and the Metro interface look promising, and Microsoft has deep pockets but all the pieces aren’t quite there yet for them. Microsoft’s real opportunity here is the Xbox. If they can properly leverage and integrate the Xbox’s growing status as a home media hub (Xbox Live), they can fill in a lot of the holes in their fledgling ecosystem, provide people with compelling devices & media experiences, and give Apple, Google, and Amazon a real run for their (and our) money.