Monthly Archives: February 2013

The Internet of me and my things

Let’s say this key ring is yours and you’ve lost it.

If somebody scans the QR code with their smartphone, they will see a message from you. The message can say whatever you want (such as, “Help! I’ve misplaced these, please call or text me at this number”), and you can update it any time, because the information is in your personal cloud.

You can host your personal cloud yourself, or you can have it hosted elsewhere, such as at SquareTag, the brand name on the tag you see here. SquareTag is a service of Kynetx, the company behind the personal cloud concept. (Disclosure: I’m an advisor to Kynetx.) But you can use anybody’s. SquareTag is not a silo, and Kynetx is not out to trap anybody. Quite the opposite, in fact. Kynetx is out to give you tools to connect to your world of people and things.

Phil Windley is the co-founder of Kynetx and father of the personal cloud concept. In Personal clouds as general purpose computers, Phil says personal clouds are “the successor to the personal computer,” adding, ”In the personal-cloud-as-personal-computer model, owners of a cloud control it in the same way they control their computer. They decide what apps to install, what services to engage, and how and where the data is stored.”

Most of the clouds we hear about today are the big centralized kind managed by companies such as Apple, Google and Amazon. Some of these industrial clouds are pure utilities, doing storage and compute work. That’s the case with, say,  Amazon and Rackspace. Nothing wrong with these, just as there is nothing wrong with electrical systems or storage facilities. Other clouds, however, are out to control you and your life — for both your good and theirs. Apple’s iCloud is one example. You can get it only from Apple, and it is not substitutable (as would be, say, a storage facility). In spite of the fact that Apple makes PCs and other personal devices, the company and its iCloud come from an old-school mainframe assumption: that one central server (or service) should contain and control what is done by many different clients. The technical term for this architecture is client-server. The vernacular term is calf-cow. You’re the calf. Apple is the cow. In the calf-cow system, you are always dependent, never fully independent.

With personal clouds you are independent. Your personal cloud is yours alone, to keep track of any thing, person or event in your life — and to manage your interactions with them. Such as, IF my keys are scanned, THEN display this message.

In an interview five years ago with Phil WindleyCraig Burton called every person an “enterprise of one.” In the past several years Phil and other developers (especially his colleagues at Kynetx) have been working on ways not only to make every person into that “enterprise of one” with connections to keep track of and control every thing of theirs as well. They are doing this through a general purpose platform called a personal cloud. You should have one, and so should the things you care about.

The design of the Internet in the first place is one of a boundless variety of end-points, with no central control of what those ends can do. Each is simply an address. Any end can connect with any other end. We have a similar system in the world called conversation. Anybody can talk with anybody else, or shake hands. They can also engage in business, and form relationships that last for moments or years. With personal clouds, things as well as people are brought into the Internet’s conversational and relational end-to-end system.

Take for example your car. Let’s say you put a SquareTag on the dashboard, next to the vehicle ID number. You can set up your car’s personal cloud so that all somebody scanning it sees is that it’s your car (or whatever you choose for it to say). But you can also scan the tag every time you have the car serviced, be taken to the car’s personal cloud, and enter whatever you like about the service event, or click on a private link that takes you (alone) back through your notes on the car’s service history. You can also set it up so the service station or dealer can connect their service records to yours, so when you look in your car’s personal cloud, you can also see those other service records. All you need for doing that are logical connections between the car’s tag cloud and the clouds of the other places where data is kept. With a squaretag, it isn’t necessary for any of your things to be “smart.” Instead the smarts are located in those things’ personal clouds.

There is no limit to what we can do with personal clouds because all of them are by nature independent, just as atoms are independent. And, just as certain kinds of atoms bond well with other kinds of atoms to form molecules, certain kinds of personal clouds (such as those of things we possess) will bond well with other kinds of personal clouds (such as human beings with possessions).

Likewise each of our personal clouds can, by mutual agreement, be social in the true and literal sense of the word — just as we are in the physical world. We won’t need to be social only inside corporate systems like Twitter’s and Facebook’s. There will still be administrative identities in the world (such as the ones on our drivers licenses and in employers’ HR systems), but among our sovereign selves we can choose to identify ourselves any way we wish. (Which others can, of course, accept or not.)

While personal clouds today are programmed with an open source language (KRL, for Kinetic Rules Language), and executed on an open source rules engine, what makes them interoperable are a new open standard: the evented API. Open standards are what allow closed (or open) things to connect and do things with each other. For example, it doesn’t matter whether you are reading this on a Linux, Mac, Windows, iOS or Android device. Open standards make it possible for all those things to communicate with each other.

We are at the earliest stage of where personal clouds will eventually go. What we can say with confidence, however, is that they will some day be the way each of us controls our lives, our personal data, our possessions, and our relationships with each other and our things.

We are born as sovereign beings, yet live in a networked world. The Internet as it was designed in the first place respected that. For most of the last two decades, however, we forgot that and built industrial-age systems that subordinated individual sovereignty and autonomy to the conveniences of large companies and governments. We built systems for capturing and controlling people and their things. There was lots of good stuff that could be done with these systems, but they were done at the expense of liberty and freedom for individuals and their possessions. Personal clouds not only promise that liberty and freedom, but provide the means for accomplishing it.

What we do with personal clouds is up to each of us — and to the countless new businesses that will show up to help out. When they do, you can bet a whole new boom of possibilities will show up too. The difference with this boom, however, is that each of us will be in charge of ourselves and what’s ours. That’s new. And it will never get old.

 

Wallets are personal

wallet-smallA lot of big companies are eager to get their hands in your pockets — literally. They want your mobile phone to work as a digital wallet, and they want the digital wallet app you use to be theirs.

Naturally, this looks like it should be a big business — and to some degree it is already. But it also hasn’t met promotional expectations. This became clear a few days ago, when comScore released Digital Wallet Road Map 2013, a $4995 report on the digital wallet business. In a press release highlighting the report’s findings, Andrea Jacobs, comScore Payments Practice Leader, said ”Digital wallets represent an innovative technology that has not yet reached critical mass among consumers due to a variety of factors, including low awareness and a muddied understanding of their benefits.” Here’s how the release unpacks that:

The current digital wallet landscape remains fragmented among providers because of low consumer adoption outside of PayPal, with only 12 percent of consumers claiming to have used a digital wallet other than PayPal. However, study results indicated that the digital wallet market opportunity could eventually reach 1 in 2 consumers as consumers become more aware of the offerings and educated on their benefits.

Consumer Awareness and Usage of Digital Wallet Offerings
November 2012
Source: comScore Digital Wallet Road Map 2013
Digital Wallet Percentage of Total Respondents Aware of Digital Wallet Percentage of Total Respondents Who Used the Digital Wallet
PayPal 72% 48%
Google Wallet 41% 8%
MasterCard PayPass Wallet 13% 3%
Square Wallet 8% 2%
V.me by Visa 8% 2%
ISIS 6% 1%
Lemon Wallet 5% 1%
LevelUp 5% 2%

One clear barrier to use of digital wallets is that the concept is often difficult to convey and prone to misinterpretation. Even after being asked to review the websites of particular digital wallets, respondents across all wallet brands still scored an average of just 45 percent in terms of demonstrated level of understanding.

Here’s the problem: wallets are personal. Even if you have a wallet with a brand name on it (say, Gucci or Fossil), it isn’t their wallet. It’s yours. What you keep in it, and how you use it, are none of their business. In fact, those companies would never think of making it their business, because all they’re providing you is a place to put your credit cards, your cash, or whatever other flat things you feel like carrying around in your pocket or purse.

So far, all the digital wallets out there are not yours. They belong to some company. You merely use the app. The wallet is their business, not yours. In this respect they aren’t much different than credit cards or various loyalty cards, which are things you put in your wallet; not the wallet itself. The wallet itself should be agnostic, if not oblivious, to what you put in there. It should be like a toolbox, where you can store lots of different tools, made by lots of different companies, made for serving different purposes.

All the digital wallet companies in comScore’s chart have isolated, proprietary and silo’d ways of providing payment benefits to users. Imagine buying a tool box from Sears that could only hold its own brand of tools, which would only work with devices from companies that were partners of Sears. That’s what we have with digital wallets so far. It’s the same problem we had with online systems (AOL, Compuserve, Prodigy, etc.) before the Internet came along. They were closed silos.

The Net works because it is a general purpose system. It isn’t run by any one company. Likewise, PCs are also general purpose systems. The company making them doesn’t insist that it only works with certain other partner companies. In that respect it’s open, just like the wallet in your pocket or purse. Smartphones, on the other hand, are general purpose to a more limited degree. Apple tells you what apps can and can’t run on your phone. Google makes sure some of  its own apps (such as its wallet) run only on Android phones — or run better on Android than on Apple’s or other companies’ phones (as it did for years with Google maps for Apple).

I suggest that the digital wallet might be best thought of as something that’s part a general-purpose thing called the personal cloud.

Your personal cloud is your personal space, which you run for yourself in the networked world. In it you define the ways that your personal data interacts with the world of things, and of services from companies and other entities. That may sound complicated, but it’s actually no different than the personal space you call your house, your car, and your body. In fact, you can think of a personal cloud as something akin to all three, but in the networked world rather than in the physical one. For more on this read Phil Windley, starting here; and follow what Kuppinger-Cole says about Life Management Platforms (which I recently visited here).

So, to sum up, the main thing wrong with digital wallets today isn’t what they do. It’s that they are called “wallets.” Instead they should be called what they really are, which is payment services. (Yes, they do more, but the main thing they do is facilitate transactions.)

The notion that something so personal as a wallet should be provided for you, as a service, by a company, is typical of the calf-cow thinking that has dominated computing for the duration. There is nothing wrong with this, if it’s still 1995. But it’s now 2013, and it’s time we moved on. And, to do that, I’d like to see real digital wallets — personal ones — come up as a feature of personal clouds. So, let the conversation begin. Then the development.

Bonus link: Google’s Wallet and VRM.