Miniature internet?

The next internet age will be characterised by mobile internet device (MID) innovation:

• Chip wars.  California-based Nvidia recently announced the release of Tegra processors, which it terms 'computers on a chip'.  Tegra includes all the hardware traditionally found on the motherboard, including the central processing unit (CPU) and graphics, on a single silicon chip.  It has launched three versions of Tegra aimed at different markets, though all are designed for use in MIDs, with screen size of four to twelve inches in diameter, and either a touch screen or keyboard.  Tegra is a direct challenge to Intel's dominance of the processor market, and will compete more directly with the latter's Atom, which is aimed at the same market, but comes with separate CPU and graphics chips.
• Operating systems.  Google continues to reveal more features of its Android mobile internet operating system, which is Linux-based and open source.  Android will have sophisticated graphics capabilities, as well as internet access that has features reminiscent of Apple's Safari browser, including a magnifying glass feature.  It will also integrate smoothly with Google's cloud internet services.  This means it will offer handset manufacturers the ability to launch devices designed to rival Apple's iPhone.  Microsoft also hopes to be at the forefront of next generation internet operating systems, with its 'Windows 7' system, which is due for release late next year.  While Microsoft are being cautious in the information they will provide about this system, they have made clear that it will be designed to allow internet access that does not require a keyboard and mouse, such as touch screen or voice-control.
• Devices.  The smartphone market continues to grow, though until now there has been relatively clear delineation between devices aimed at business and leisure users.  While Apple and Blackberry-manufacturer Research in Motion (RIM) are likely to remain strong, the next generation iPhone, which will be 3G-enabled, will include more business features, such as support for Microsoft-based corporate e-mail applications. Blackberries will target leisure users with more sophisticated media and download services.

Outlook

The move towards a more mobile-based 'cloud' experience is already apparent.  Within this, flexibility is likely to help ensure success, with open source operating systems and processors that are compatible with a range of operating systems.  This means that Android is likely to be a hit, and may allow major mobile phone manufacturers successfully to take on the iPhone and the Blackberry. 

This could help Intel gain an edge in the increasingly competitive processor market.  While Nvidia's very small, yet powerful, Tegra is attractive, it is compatible only with the Windows Mobile software. Coupled with concerns relating to the company's small size, with only around 5,000 employees and limited resources, there is little hope of Nvidia becoming the giant killer of the processing market.