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A recent report from ABI Research highlights the rise of mobile Linux, estimating that 23 percent of the world’s smartphones will have a Linux operating system by 2013. It appears that much of that growth will come at the expense of Nokia’s Symbian, and that LiMo and Android will be the main beneficiaries. What the report doesn’t note is that last year ABI predicted that 31 percent of smartphones will have Linux by 2012.

Either there’s something to explain the change in numbers, or we should perhaps take our analyst reports with a grain of salt. However, Linux is undoubtedly moving fast: 15 handsets were launched earlier this year with LiMo, and after several demos and prototypes, anticipation for the Android is running high. But the jury is still out on which framework will win out with carriers and application developers.

LiMo has the backing of NEC, Motorola and Samsung as well as SK Telecom and Verizon. Android, through the Open Handset Alliance, has T-Mobile, NTT DoCoMo, China Telecom, Telefonica, Google and several others. The stated goal behind both efforts is to eliminate some of the costs associated with developing mobile applications for multiple operating systems by using open source. It’s a laudable goal, but the fight between the two for market share demonstrates how hard it will be to lower costs, as developers will still have to build for multiple platforms.

photo courtesy of the LiMo Foundation and NTT DoCoMo

Motorola said today it’s exploring strategic options that include selling its handset business. The news comes on the heels of the company announcing a terrible fourth quarter, thanks to continued weakness in the handset business.

Any buyer should look carefully at Motorola’s handset business. By putting it up for sale, Motorola is admitting that the handset division is operationally weak, and to some extent, beyond redemption.

The overreliance on RAZR, and later its inability to get out of the rut of producing phones that never became “hits,” proves that the bureaucratic poundage was weighing the company down. Even if it was operationally sound, the company would need some vision to get back on track and fight it out with the likes of Nokia, Samsung, LG and newcomers likes Apple.

It is a hard fall for a once-proud company, which along with Nokia and Ericsson made up the triumvirate that controlled the wireless business with an iron fist. In order to understand how badly Motorola has stumbled, compare its daily sales of roughly 454,000 with Nokia’s daily sales of 1.3 million.

Recently, companies like Alcatel and Siemens have sold off their handset businesses to Asian handset makers. Those deals didn’t work out too well for the buyers, though. Buyers beware.

Motorola Chief Technology Officer Padmasree Warrior traded Chicago for the San Francisco Bay Area. She has joined Cisco Systems (CSCO) as chief technology officer, San Jose based company announced today. She didn’t waste much time and has started blogging on her new Cisco blog.

Okay it is full of PR sanitized corporate speak, but having read her writings in the past I think this should be a good one to watch. I think the world of her abilities and Cisco picked up a great executive to add to their team. This move also explains why Motorola took down her blog. I am going to chat with her later today and update the post.

“For next few weeks I want to listen to what everyone at Cisco has to tell me and learn,” said Padmasree Warrior, just an hour after it was announced that she was joining Cisco Systems as the Chief Technology Officer. I got a chance to speak with her as she rushed between meetings. She declined to comment on the specifics of her switch from Motorola to Cisco.

“I have admired Cisco because of their technology leadership and their business model innovations and innovations from a larger perspective,” she said. In her mind Cisco’s apporach to global opportunities along with macro-shifts in the over communications and computing industries make her job most exciting.

Though she spent recent years at a mobile-focussed company, Warrior said that her 23-years-in-technology have given her the grounding she needs to adjust to an all-IP future. “For the longest time, communication technologies have been vertical,” she said. Video meant cable, voice meant telephone, and data translated into Ethernet. “It is all horizontal - now network is the platform,” she said.

I asked her if we are in a brave new world of COMMputing, where the lines of computing and communications have blurred to such a degree that you can’t tell the difference. Google and Amazon Web Services are perfectly good examples of this commputing movement.  She agreed and promised to share more of her thoughts at a later stage - after she has settled down in the Bay Area and spent time in Cisco trenches.

Originally posted at 1.41 pm

T-Mobile launched the new Sidekick Slide earlier this month amid much fanfare, only to discover some major design flaws that got the device to reset itself. That really charged up the customers.

The Motorola-made device from Danger Inc. was quickly pulled from the market. T-Mobile today announced that Motorola (MOT) has identified the problem as an “issue relating to the battery contacts.Motorola also has identified and tested a solution which it will implement for existing devices, and incorporate into newly manufactured ones.”Meanwhile, if you bought the admittedly handsome device, then T-Mobile is giving you three options: Exchange it for Sidekick LX (for no extra charge), return it and use the money towards any other phone, or just wait for the fix from Motorola.

Updated post press conference, read My Take #2: Google (GOOG) has just announced its much talked about Google mobile phone platform, Android, and has announced a large list of partners who are working with the company. The company said it’s worked with T-Mobile, HTC, Qualcomm (QCOM), Motorola (MOT) and others on the development of Android through the Open Handset Alliance, a multinational alliance of technology and mobile industry leaders.

Andy Rubin, who spearheaded the project, writes on the Google blog:

It’s important to recognize that the Open Handset Alliance and Android have the potential to be major changes from the status quo — one which will take patience and much investment by the various players before you’ll see the first benefits. But we feel the potential gains for mobile customers around the world are worth the effort.

The first handsets are likely to be available in the second half of 2008, the company said. Other partners in the alliance include Sprint Nextel (S), Telecom Italia, NTT DoCoMo, Broadcom (BRCM), and a slew of other technology companies.

What is Android? A fully integrated mobile “software stack” that consists of an operating system, middleware, user-friendly interface and applications. It will be made available under one of the most progressive, developer-friendly open-source licenses, which gives mobile operators and device manufacturers significant freedom and flexibility to design products. Next week, the Alliance will release an early access software development kit to provide developers with the tools necessary to create innovative and compelling applications for the platform.

Who is missing? Quite a few large carriers, including Vodafone (VOD), Orange, SK Telecom, AT&T (T) and Verizon (VZ). Nokia (NOK), Samsung, LG and Sony Ericsson are among the handset makers not part of this alliance.

My Take: This is one massive PR move, with nothing to show for it right now, and it seems like there are other unknown reasons (Facebook ad platform launch perhaps) for the motivation here. No phones till second half of 2008 — in our ADD culture that is a lifetime. The partners — with the exception of HTC and T-Mobile — are companies who are, in cricketing parlance, on the backfoot. Motorola, for instance is not exactly a bastion of handset excellence. Sprint — we know how well they are doing.

MyTake #2: Following the press call, I actually have more questions than answers. They completely dodged my question about how does it reconcile with other mobile linux efforts which are backed by none other than partners like Motorola. Andy Rubin replied that all the software is available for the developers in a week, which is non-answer if there is any. Funny - no phones till second half of 2008 and they want developers to shift their attention from iPhone, Symbian, other Mobile Linux and Microsoft Windows Mobile. Even more convinced that this is a PR move. Not clear how this helps Google from a fiscal sense and its business implications for the company. Oh well, time to hound their press department.

What Others Say:

Chetan Sharma of Chetan Sharma Consulting: Google definitely assembled an impressive list of partners for this initiative. On a fundamental level, it still remains to be seen if this move is going to be transform the industry. Of course, everyone wants to be seen supporting openness, proof will be in the implementation and the business models that support this vision, otherwise this is just yet another initiative.

The initiative does help lower the cost of the handset due to cheap licenses for the stack and if this proves successful, some device manufacturers might give up their own efforts to minimize cost and focus more on hardware features that integrate well with Android. This is more an answer to Microsoft than to the carrier fragmentation Google has talked about. Is this going to be a successful Trojan horse strategy for Google remains to be seen.

Forrester Research wireless analyst Charles Golvin: The impact is broad across all players in the mobile environment, driving innovative developers to craft new applications that leverage both the mobile networks and the Internet, and helping to change the way consumers behave when on the go. Google is far from the only beneficiary, as competitors like Yahoo (YHOO) and even Microsoft (MSFT) stand to benefit should they embrace this approach; the impact will build slowly over time as initially the devices using this platform will form a very small percentage of the market.

By M.R. Rangaswami, publisher of SandHill.com and co-founder of Sand Hill Group

They say that youth is fleeting. In the enterprise software industry, the youth are fleeing.

One need only look at the hairlines of today’s software leaders. The current wunderkinds are not looking to create the next wave of corporate computing applications, but are instead gravitating toward emerging fields, such as web 2.0, biotech, and anything “green.”

Bill Gates was 19 when he founded Microsoft (MSFT). Steve Jobs started Apple (AAPL) at 21. Even Marc Benioff was in his 30s when he founded Salesforce.com (CRM) — and at 42, he remains one of the industry’s youngsters.

Software companies need to do more to attract the next generation of business leaders who will drive the evolution of the industry for decades to come.

Software’s Aging Leaders

Here’s what opened my eyes. I looked around at the attendees of our Enterprise 2007 conference this summer and was pleased to see many of the enterprise software industry’s leaders represented, including CEOs, VCs, professionals and analysts.

But then I did a double take: The average age of this elite group (including yours truly)? 50 years old!

Steve Ballmer, Larry Ellison, Henning Kagerman, Dave Duffield…all of them are solidly in middle age. A tremendous brain trust to be sure, but who is going to take the reins and lead the industry into the next era?

The next eye-opener? In a survey given out at the conference, these highly-successful industry leaders were asked whether they would advise their college-aged kids to start a career in the software business. More than half said they would, but nearly a third said they wouldn’t!

So where are all the Gates and Jobs of today? Many young entrepreneurs continue to receive venture backing for software companies –- in fact, software regained its title as the leading venture investment category during the second quarter. Notably, however, nearly as many are receiving backing to go into biotech or greentech or other emerging fields.

And within the software space, young business leaders are choosing web 2.0, open source, SaaS or consumer applications over traditional business apps. These are all attractive fields, to be sure, but the enterprise software elephant in the corner is a $600 billion industry waiting to be fed.

The new guard of software leaders operates differently than the old guard, usually with far less capital. And they are tuned into the online culture like no 50-year-old can be: they’ve grown up with it, and as such will be able to bring the consumer online experience to the corporation with ease.

Before I get too much hate mail about age discrimination, and in light Google’s recent legal troubles, I want to be clear that I’m not advocating hiring younger people over older people. I’m talking about the need for people with new skills and new ideas who are young enough (in years) to ride out the next 10 or 20 years of industry fluctuations.

The fact is that unless the software industry receives an influx of new talent, it will be difficult for the 50-year-olds to keep their companies’ relevant in the next era.

How to Rejuvenate the Industry

It is time for enterprise software companies and their investors to take steps to make the industry a more welcoming and attractive place for young workers. Here are some of my thoughts on how to attract the next generation of leaders:

• Make Room at the Top – It may be time for many longtime software company leaders to simply step aside. The same goes for members of the board. If Bill Gates can do it, anybody can.

By making a gradual transition (such as the one taking place at Microsoft) and tapping the right successors, software companies can receive the benefits of a fresh strategic perspective and a new outlook.

• Mentor Young Executives — Much of the brain trust of the enterprise software industry is rapidly approaching retirement. The only way to recapture this collective knowledge is to impart it to the next generation of executives.

While it is nice to think that today’s young execs can learn by watching, the pace of today’s business environment may make it difficult. Companies seeking to preserve this insight should consider a mentoring initiative – either formal or informal – to impart to its younger execs.

• Re-establish Entry-Level Positions — As the software industry evolved over the past 10 years, a wide variety of entry-level jobs in both business and engineering disappeared. Some jobs were outsourced, some were offshored, and some simply dried up during the economic downturn, never to be re-established.

There is no way that today’s software vendors will be able to promote from within and tap into next-generation thinking if they do not slot a significant number of entry-level jobs for new workers. These positions should be on both the technical and business side.

• Step Up Marketing to Universities — There is a perception among college graduates that all technology jobs are moving overseas. Anyone who has recently tried to find an engineer in the San Francisco Bay Area knows that nothing could be further from the truth.

The job market for software developers is almost as tight as it was during the dot-com boom. Engineering graduates will have their pick of companies, and industries, to choose from.

The software industry associations and the major companies themselves must raise their profiles in graduates’ minds. Efforts such as job fairs and promotions at universities can help achieve this.

• Develop Cross-Industry Recruiting Tactics — Recruiters are famous for tapping consumer packaged goods leaders to run tech companies – and for convincing former tech execs to run “green” or biotech companies. It is time for the software industry to expand its recruiting pool.

As other industries work to recruit the up-and-coming leaders that the software industry used to attract, the software industry needs to fight back. TCS is trying to overcome some of the talent crunch in India by recruiting talented non-engineers from other scientific fields for training as developers or other much-needed staff. The ramp-up is longer, but the results so far have been positive.

• Make the Industry a More Attractive Place to Work — In many ways, the software industry has always been one of the best fields to work in. Today it’s even better.

The business environment is fast-paced and rapidly evolving. There is the opportunity for international travel, rapid advancement, telecommuting and financial rewards. The faster the industry can get the word out about these benefits, the better.

• Set Up Internal, Innovation-Driven “Startups” — For many established vendors, incorporating the energetic and fast-paced climate of a startup is difficult to maintain as a company grows to have hundreds and then thousands of employees.

Many vendors, such as Motorola (MOT), have created internal innovation centers to foster the growth of new ideas, products and businesses. The atmosphere is more likely to attract a new generation of leaders.

I believe the software industry can do more to prevent the “youth” drain that I see happening today. What do you think? Is the software industry “older” than any other fast-growth industry? Is the entire concept of enterprise software fading away? Can vendors do anything more to attract new college grads? I welcome your feedback.

Motorola (MOT), once the dominant player in the world of mobility, has been going through a rough patch. No longer the leader in handsets, nor a prominent player in the global infrastructure sweepstakes, Motorola has become a middle-of-the-road player in the business it practically invented.

The Schaumberg, Ill.-based company is, however, betting big on WiMAX and the IP-based wireless broadband business to revive its fortunes. Motorola recently showed off its technical mettle at WiMAX World, held in its backyard of Chicago.

Motorola demoed a mobile WiMAX network capable of delivering broadband speeds that could handle multimedia traffic with relative ease. The demo network is a microcosm of Xohm, Sprint’s 4G wireless broadband network.

“This live demonstration provided just a glimpse of what WiMAX technology can deliver,” said Barry West, Sprint Nextel (S) CTO and president of its Xohm business unit. “We are on schedule to begin Xohm pre-commercial service in Chicago by the end of 2007, with commercial service planned in that and other markets beginning April 2008.”

I recently caught up with Motorola’s chief technology officer, Padamsree Warrior, to discuss WiMAX and its impact on broadband in general — and Motorola in particular.

Om: It seems Motorola is betting very big on WiMAX and feeling pretty bullish about the technology?

Padamsree Warrior: WiMAX is no longer a big bet; it is a big business. We have 40 trials in progress. The reason we’re excited about WiMAX is because I think it is a disruptor. Never before has there been a wireless technology that has been deployed globally at the same time, be it developed or emerging economies. It is very affordable and as a result, you can now connect rural areas and metro areas. Furthermore, it is complimentary with existing technologies.

Om: Why do you see it as a disruptor?

PW: We think it is the next big step in wireless broadband, mostly because it is more data-focused and is a flat, IP-based technology. Cellular technologies were designed to offer voice services, and had data overlays. That is why 3G — despite all the progress — is still pretty inefficient when it comes to data.

WiMAX, on the other hand, has a pretty flat, IP-based architecture. The base stations don’t have to be huge, which means the real estate needed to house those base stations are quite modest. That is why they are called zero-footprint base stations. At the same time, Intel (INTC) is driving the chips’ costs lower. There are spectral efficiencies that allow you to drive more capacity. That lowers the cost on both the op-ex and cap-ex side.

Om: So from that standpoint, it makes sense for the emerging economies where WiMAX completely bypasses the need for copper-based infrastructure?

PW: Exactly. For instance in Pakistan, Wateen, one of the private telecom companies, set up a WiMAX network across the country in less than a year and is offering wireless broadband in nine cities. There are countries that are at a 2G level right now, and the operators there who haven’t invested in 3G spectrum are simply leap-frogging to WiMAX.

Om: But what about the developed world? Countries where people spend big dollars on wireless services, say, the U.S., or countries in Europe?

PW: If you look at Sprint [see video at the end of the post], I think what they are doing is something radical. Sprint is talking about unfettered access to their network. That is pretty disruptive. Similarly in the Netherlands, one of the highest broadband-penetration countries, people are looking for more connectivity on the go. There is a company called WorldMAX that is going to offer a wholesale service, and I think interesting business models are going to come out of it. Because of the cost structure, it isn’t difficult to imagine devices like digital cameras being connected to WiMAX networks in the future.

Om: Can you give us some insight into the kind of devices that are going to be connected to the WiMAX network? Do you think the handsets of today will just have WiMAX radios built into them, and we can seamlessly roam between 2G, 3G and WiMAX networks?

PW: We will have our mobile Internet device by the end of 2008, and it will have multimode capabilities and will roam between GSM or CDMA networks. I think initially it will be single-mode devices, and eventually become part of the multimode devices, including mobile phones. But I think the real role is using that bandwidth for Internet browsing and other such activities.

Sun Microsystems is changing its ticker symbol from SUNW to JAVA in order to better reflect the company’s role in new network infrastructure, and maybe — just maybe — to give its shares some added juice. (CEO Jonathan Schwartz gives his reasons on his blog.) Here’s 10 companies that we think could use an extreme ticker makeover.

1. Apple (AAPL) to (JOBS) in homage to their feared and revered leader, Steve Jobs.

2. Sprint Nextel (FON) (S) to (XHM) since they are betting the farm on their WiMAX networks.

3. Qualcomm (QCOM) to (MMOB) since almost everyone is suing them, just like the mob back in the 1980s.

4. AT&T (T) to (IFON) because we all know what is juicing their market share and revenues.

5. Yahoo (YHOO) to (NOGO), which is short for Not Google. You could also take it literally.

6. News Corp (NWS) to (TOM) — after all, who doesn’t want to be MySpace Tom’s friend?

7. Motorola (MOT) to (RZR), because they’re hoping for lightning to strike twice.

8. Vonage (VON) to (GON). Yup, the VoIP service providers are falling like flies.

9. Microsoft (MSFT) to (LIVE) on Nasdaq and (WIN) on NYSE. It’s in keeping with their brilliant branding strateg(ies).

10. Viacom (VIA) to (SUX). No commentary needed.

GigaTeam had a fun time brainstorming these, but we’d love your suggestions. Help us out in the comments.