Will Microsoft, Apple go after Amazon next?

With the launch of Kindle Fire and its own Android variant and browser, Amazon can no longer pretend to be a simple retailer, which is uninvolved in the politics of software platforms. This is likely to bring it into conflict with Apple and Microsoft as they pursue their patent-driven agendas against Android, and the first signs of action from the latter giant were seen in a licensing deal with Quanta Computer, the ODM (original design manufacturer) for the Kindle Fire (and RIM PlayBook).

Focal Points:

• The licensing arrangement covers tablets, smartphones and other devices running Android, and also Google’s other Linux platform, Chrome OS (which has been added into recent Microsoft patent claims, most of which revolve around IPR in the core Linux technology). The official statement is vague - Quanta is paying Microsoft an undisclosed amount to cover unspecified patents.
• But the deal shows how Microsoft is increasing its influence over the Android ecosystem. Many observers have been expecting Microsoft to chase Amazon, given the likely success of Kindle Fire, which runs a heavily customized version of Android, and the Quanta agreement may be a first step. Microsoft and Amazon signed a licensing deal a year ago, which covered some Linux patents, but was not specific to Android.
• According to a ZDnet analysis, it is unlikely that a Quanta agreement would automatically protect its customers, for which it designs and manufactures devices to the OEM’s commission. Microsoft told the online newspaper: “Quanta is one of two major ODMs for which we’ve entered an Android Patent Agreement. Because we offer patent licenses to OEMs and ODMs, we put in place provisions that make sure we are not paid twice for the same device. Having said that, for the Android agreements we offer ODMs, we seek agreements that provide coverage for as broad a set of the ODM’s offerings as possible. We cannot specify particular terms for any of the ODM agreements.”
• Kindle Fire itself starts to ship in the US on November 15, and as well as Silk, it will come with a significant expansion of several technologies already tested on the Kindle ereaders and Amazon’s Appstore for standard Android. These include a new developer program, and a beefed-up version of its WhisperSync cloud synchronization system, which will rival Apple’s new iCloud mechanisms.
• Amazon says it is currently testing all applications in its Amazon Appstore for Android to guarantee that each delivers a quality user experience on the Kindle Fire, despite its heavily customized version of the Google OS. According to the Amazon Appstore Developer Portal, all programs, which will be available for download to the Fire must be optimized for non-Google Mobile Services Android 2.3.4 and a 7-inch screen with a resolution of 1024 x 600. If an app requires access to Google Mobile Services, Amazon recommends that developers either remove those features or "modify them to degrade gracefully when invoked (e.g. with an error message) As Google's in-app purchase mechanisms rely on Google Mobile Services, the option will not be available for Fire apps, and Amazon says it is working on its own solution.

Editor’s Note: While it may seem that Kindle is an excellent low-cost alternative in that it parallels the content (books, music, videos, etc) distribution capabilities of the iPad, it is not as powerful and therefore is still limited. Not to say that all consumers need all of the capabilities of the iPad, but you get what you pay for.