UsableMarkets

Google’s hiring of Hal Varian this summer perhaps makes even more sense now in light of today’s news about Google’s new mobile platform (and associated standards), called the Open Handset Alliance (or by the awful nickname, Android).

For those of you who need a refresher, Hal Varian wrote the book Information Rules, in which he describes, in great detail, how to wage a standards war.

I’m certainly not an economist, but a quick, back of the envelope breakdown of what’s happening in the mobile space (based on Varian’s analysis – page 204 – of network strategies) looks like this:

In one corner you have Google, and all their partners, pursuing a strategy which relies on openness and shared technologies. Varian dubs this strategy: Open Migration.

In another corner you have Apple (and, oh yeah, ATT), which creates wonderful products that don’t tend to play well with others. I’m not an expert on the iPhone, but it appears that Apple is in total control of the mobile OS. This is a Performance Play, and bets that consumers want a superior product, and are willing to pay for it.

In the third corner you have Verizon, not partnering with either Google or Apple. It’s not clear to me what their strategy is, but they obviously don’t see it’s to their advantage to link up with either Apple or Google. Based on Varian, though, they look closest to a Controlled Migration strategy.

And don’t ask me who’s in the fourth corner.

The Google-inator will now take your phone call

As always, thanks for listening.
~alex