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Because the profitability of cloud services tends to be much lower than the profitability of selling or licensing hardware components and software programs, it is viewed as a potential threat to the businesses of many traditional computing companies.
In terms of lingering uncertainty, the fact that Nokia didn't buy Pelican outright could simply be due to the smaller company's business model, which is more about making software for a plenoptic camera rather than building or licensing hardware.
In my last post I claimed that the video game industry is the fastest growing industry on the planet and the world's newest mass medium routinely accessed by 72percentt of U.S. households, is representing a powerful economic sector involving capital, licensing, hardware, software, production, production tools, distribution and publishing -- and an ever-expanding universe of end users.
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"For many firms good at low-cost electronics, the barrier to entry was simply too high," says Tony Milbourn of TTPCom, a British firm that designs and licenses hardware and software components for mobile phones.But the situation has changed in the last couple of years.
Companies like Microsoft, HP and Cisco rely on strong, deep and constant relationships with corporations and governments around the world to sell them software licenses, hardware products and services.
Because Nintendo has long tried to control everything about their part of the gaming ecosphere, from developer licensing to hardware sales.
The problem comes down to the cost of licensing, new hardware and the IT staff to manage it all.
In a failed attempt to gain market share, the company began licensing the hardware and OS to third parties, creating a line of PowerPC-based models that were cheaper and, in a way, better than the machines Apple was producing.
"Then, we should have licensed our hardware and software to anyone that wanted them," he says.
Philippe Kahn's company FullPower Technologies licenses MotionX hardware and software to many motion-sensing providers, including Jawbone and, perhaps, Apple.
In fact, T-Mobile licensed the hardware design from the BlackBerry's maker, though it substituted its own software.
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