They could take the path of being a mobile Red Hat (or free software Blackberry, depending on how you see it) and offer a nice corporate system and services.
Managing mobile in the corporate environment is not a very well-solved problem, and free software works well for this - Google and Apple seems to be more interested in the great consumer market, and Cyanogen could leverage this, basing their software on Android and focusing in the corporate details.
This way, they could even let Google Services pass, and keep software free, in a manner similar to Red Hat's.
Could somebody clarify what the actual business plan is here? There is VC investment, so I assume there is at least some idea of how they are going to generate a return? It wasn't very clear from the post and I'm not familiar with cyanogenmod…
"Monetization isn't an immediate concern and our investors and Benchmark and Redpoint feel the same. CyanogenMod has the potential to become an enormous platform play, and to do that, we need to foster and grow the ecosystem. Right now, we just want to build something compelling and grow the user base. Eventually, there are innumerable paths to monetization once we reach economics of scale: licensing our software/services to OEMs, building hardware, creating secure enterprise solutions, etc.
Creating disruption in a multibilion dollar market is enough to make any investor raise their eyebrow."
After a year I won't have to put up with the question of "should I try opening it up to change out the battery?". Plus I can drop 64gb of storage into a 16 gb model, and keep expanding that as memory densities increase.
On the AMA he said that they (and the VCs agree) are concentrating on growth now. It makes sense to me, if the "bigger than Windows Phone" thing is even close to being true that seems like something worthwhile.
the problem i see with that (in my point of view), is how they can distinguish itself enough from android to actually make a stand against it.. being based on android this is a very dificult task.. so this is a dificult bussiness model..
The best thing to happen to them is the acqhire, if a big player buy them and the talent and using this android branch
like the chinese Xiaomi will do..
Have more than one player using their branch is more difficult, and unlikely, but possible..
My point being: people dont change, or buy phones because of small features and details.. it must be enough distinction to make a good point, it must be the whole package..
The mobile os sea its prety red right now, full of big sharks
One thing Google will never do is firmware/bootloader level programming to specific devices, and actually writing the code that lets you update your carrier/manufacturer controlled device to the latest version of Android.
CyanogenMod could effectively help more users get the latest version of Android faster than manufacturers and carriers would, and continually do so with their own software OTA cycles and suddenly have a platform of Android on top of the major devices regardless of manufacturer/carrier.
One rather large way that they can distinguish themselves is version updates. I'm pretty sure that that reason alone is a large factor behind their success (not primary, or even majority, just large).
Many android users have two options: keep using an older version of android or root their phone and pick up a new OS to get the latest and greatest. CM is the best OS for many models and makes of phones.
I also think their current success up to this point indicates the potential in the market. Something has brought in their millions of users. I'm don't think there is a problem of how they can distinguish themselves as much as there is the question of what have they already done to distinguish themselves and will it scale?
Starting with their baseline of better performance and faster updates than most OEM builds, they're building in some very interesting features/services:
- privacy-conscious device location
- cross-platform secure messaging
- multimedia streaming to "anything"
- ...
Assuming they can get official access to Google services, they'll have the whole package (which is unsurprising, they couldn't have gotten to millions of users without it).
Personally I always donate at least $10 for every device I install CM on ... its well worth it in my view. That seems like a decent business plan to me.
Is there a page listing all the features that Cyanogenmod provides over Android?
The page with the section "So what is the difference between Android and CyanogenMod" talks about how Cyanogenmod comes to be created after each Android release but doesn't describe the actual features.
Compared to others, the point of CM is precisely not to add too many features and provide a close to stock experience. It's not that useful if you have a Nexus device, but otherwise you can get (1) an Android version without all the clutter of HTC, Samsung or others (2) a recent Android version even if the device is old and unsupported.
This could be huge. Even if they just take the route of updating the most popular phones to the latest versions of Android, bypassing the slow manufacturer+carrier update cycle, they could easily have a platform if they can get the adoption.
Make an easy "switch to CyanogenMod" installer for the top handsets, and provide your own OTA updates faster than the actual device manufacturer and you could have quite the platform. Plus Google will love you since you're keeping more of their devices up-to-date, essentially fighting the fragmentation problem for them.
Can someone tell me what CyanogenMod does that my Stock 4.2 Android doesn't do? I had a quick look at the site, and the answer at the moment seems to be "Sound, Themes, and Settings" - none of which excite me enough to make it worth flattening my phone and reinstalling everything.
If you have an older phone that the vendor can't be bothered upgrading, if CM supports it then you get to install a supported version of Android with the latest security updates and bug fixes.
It also means you can install a close to stock version of Android without all the vendor additions. In the early days of Android, HTC Sense & Samsung's equivalent were probably necessary since the stock Android experience was pretty poor. Nowadays these vendor UI layers are relatively pointless: mostly they just make vendor updates to phones more expensive to implement and therefore less likely to occur. Vendors still like them because they believe they give them a way to differentiate their phones from everybody else's, but the vast majority of users simply don't care.
If you have a recent phone, or a Google phone that gets timely updates, then you probably don't care that much about CM. If you can afford to buy a new phone every year then you probably don't care very much about CM. That still leaves a big chunk of the population who can benefit from CM: an 8 million strong installed base is pretty impressive for an Android distribution that usually requires you to void the warranty on your phone.
I've been running Cyanogenmod (CM) on my NinjaTel phone (a HTC One V) for a year now and it's been an interesting experience that has led me to think a lot more about the nature of a smartphone operating system and how the current offerings are positioned - e.g. the completely closed, manufacturer-controlled iOS versus the open (in theory but, in reality, controlled by the mobile network operators) Android.
The path by which a new version of Android currently makes its way onto the average user's phone is tortuous. First, Google release the new version of Android, then the chipmakers have to support it, then the phone manufacturers have to create a new release which must be tested by the mobile network operators (MNOs) before they will release it to their users.
The fact that Apple owns makes both the hardware and software (and refused to let the MNOs customise iOS[1]) has allowed them to streamline the process so that, when they release a new version of iOS, it has already been tested with their partner MNOs networks and can be delivered direct to their customers' devices (and note that Apple regards iPhone owners as /Apple's/ customers, not the MNOs').
I guess that, without first mover advantage and with multiple, competing hardware manufacturers, Google was unable to strike the same sort of deal that Apple did. Fortunately, Google have finally recognised that this puts Android at a disadvantage and have started shifting functionality into apps that can be upgraded via the Play store[2].)
In any case, the general public have slowly come to realise that (a) the phone and the network are not inextricably tied, and (b) the functionality of a phone (i.e. the apps it can run) is not dictated by the phone's OS.
Logically, the next step is to recognise that phone device and operating system are not inextricably linked - i.e. when you buy an Android device, you can replace the pre-installed OS with something else. However, that's quite a big step for the general public to take. The average consumer still regards consumer electronics products as a single package. It would need to become exceedingly easy and very clearly advantageous for them to consider replacing their stock OS. Just think about how many average consumers who buy laptops replace the default install of Windows with Linux.
That's not to say that it will never happen, just that it's not going to happen overnight and CM have a lot of work to do to build a viable and sustainable business around supplying their version of Android direct to retail consumers.
In the meantime, one customer segment that Cyanogenmod should definitely be looking at are large corporates, who want to be able to customise the phones they give their employees (e.g. to tie into internal mail systems, employee directories, route calls via the company's internal network, etc.). BlackBerry has been a leader in this space but uncertainty over the company's future means that some clients are potentially open to approached from an alternative supplier [3], particularly one that is not inextricably linked to a particular manufacturer or network.
They could also attract the interest of mobile virtual network operators. Personally, I think it's just a matter of time before we see an MVNO that abstracts voice calls towards a least cost routing model that takes advantage of data connectivity to make VoIP calls (instead of traditional phone calls) when it's cheaper to do so. CM would be well-positioned to provide the OS for this type of service (although, if Microsoft had any common sense, they'd already be doing this now with Skype).
In the meantime, it will be interesting to see how Google (and, indeed, the manufacturers) react to Cyanogenmod's incorporation. Specifically, I'll be interested to see whether Google strike the same sort of deal with Cyanogenmod that they have with Mozilla (i.e. search royalties)
Footnotes:
[1: Apple (specifically Jobs himself) were only able to refuse to allow the MNOs (and specifically AT&T) to customise iOS because the iPhone was such a ground-breaking product. RIM, for example, also made both the hardware and software for the Blackberry but were forced to allow the MNOs to customise the OS.]
> Personally, I think it's just a matter of time before we see an MVNO that abstracts voice calls towards a least cost routing model that takes advantage of data connectivity to make VoIP calls (instead of traditional phone calls) when it's cheaper to do so. CM would be well-positioned to provide the OS for this type of service (although, if Microsoft had any common sense, they'd already be doing this now with Skype).
Managing mobile in the corporate environment is not a very well-solved problem, and free software works well for this - Google and Apple seems to be more interested in the great consumer market, and Cyanogen could leverage this, basing their software on Android and focusing in the corporate details.
This way, they could even let Google Services pass, and keep software free, in a manner similar to Red Hat's.