Separation of powers

There is a very interesting development in computing devices, namely the separation of interfaces from the rest of the computer. Cloud services, new devices like netbooks and new peripherals like Google Glass and Pebble smart watches divide the integrated computing devices of yesteryear into distinctly separate interface devices and processing devices.

Desktops, laptops and smartphones are all quite integrated, they are essentially complete computers in different sizes. Now that our computing is increasingly done in the cloud, our gadgets become focused on offering powerful, slick interaction with remotely hosted applications and content.

This trend has several interesting consequences. Interface devices like smart glasses, watches and portable screens can be upgraded separately from the silicon in the datacenter that provides muscle. Rather than shelling out for a Dell XPS or MacBook Pro with all the trimmings, it will soon be possible to buy an interface device like a tablet and use it for quite a while, without foregoing the benefits of regular increases in computing power.

Of course Apple and Samsung want everyone to buy a new flagship phone every year or two, but there has been a noticeable plateau of development in recent handsets. Adding gimmicks is not quite the same as new features, much to the dismay of Samsung's recently departed head of mobile design. It's high time that services and interfaces become the competitive differentiators, not the silicon underneath.

Using the same hardware for a longer time is also a lot more sustainable. Rather than tossing out a plasticy handset full of rare earths every year, having a trusty device to access online services for a couple of years saves tons of resources. Your 'internet device' could get a similar lifecycle to TV's, which have offered access to an ever wider array of services while being upgraded only once or twice per decade in most homes.

Service providers have a huge advantage over handset makers: customer data, workflows and online interaction with colleagues and friends become finely interwoven with the service over time. This builds very strong customer loyalty. I'm utterly useless without my Evernote and IQTELL subscriptions, for example. Also the R&D cycle of web services is a lot friendlier, allowing easy iteration of features and improvements with a constant revenue stream, rather than the billion-dollar gamble of developing a new device. There are good reasons to primarily sell services rather than hardware, and I wonder when the change of emphasis will occur. 

For now the iPhone remains a much more compelling product than iCloud, but only because the app ecosystem runs on the iPhone hardware rather than the iCloud platform. When Microsoft, Apple and Google have finished their current transformations there will be little to distinguish a desktop application from a mobile app from a web service, except the screen you view it on. That is when the time is ripe to complete the separation described here.