Acquiring mobile users is expensive, but here's why they're worth the cost

Even as cost-per-install rates soar, the cost of loyal users is going down. Here's what businesses building mobile apps should know.

Image: iStockphoto/Nongkran_ch

Apple's App Store may have created 1.9 million jobs, but it's unclear how many of those jobs pay a living wage. After all, VisionMobile's survey data has long revealed that most developers live below the app poverty line, making less than $500 per app per month.

There are signs, however, that life is getting better for mobile app developers.

SEE: Mobile device computing policy (Tech Pro Research)

App Annie, for example, is forecasting that the App Store will generate $101 billion by 2020. More importantly, however, the cost for acquiring a loyal app user, and not simply someone who installs an app, is in decline. With roughly 30% of all mobile advertising currently focused on getting people to download apps, everyone benefits if those billions of dollars start to create real brand loyalty, and not simply app churn.

Loyalty comes at a price

The cause for hope comes from recent Fiksu data. Fiksu, which specializes in helping brands build and run app acquisition and re-engagement campaigns, issues a monthly index that tracks the cost of generating app downloads and app loyalty, defined as a user that opens an app three times. Those numbers show though the cost per install (CPI) keeps going up, the cost per loyal user (CPLU) has declined a bit over the past year.

On iOS, CPI rose 12% to $1.64, a 28% increase over January 2015. On Android, CPI went the opposite direction, declining 44% to $1.91 from December 2015 while rising 25% since January 2016:

Now, compare this to the cost of acquiring a loyal user (CPLU), which plunged 34% since last month to $2.78, and experienced a year-over-year decline of 4%:

In short, the cost of corralling new users into your apps keeps going up, but the cost of generating loyal users seemingly paradoxically has been going down.

What gives?

Are we there yet?

The Verge's Casey Newton writes that "the App Store's middle class is small and shrinking. And the easy money is gone," which is correct, but doesn't tell the whole story.

For one thing, more and more companies aren't even trying to sell apps. Either they offer in-app purchases or, if they're a big brand like a hotel chain, they generate revenue through their app. For these companies, it doesn't matter whether the App Store economy is $101 billion or $1.01, because the revenue they generate is facilitated by apps but not counted as part of the "app economy."

Selling apps, in other words, is old school.

This is implied by the Fiksu data. When I asked Fiksu co-founder Micah Adler why CPLU has declined even as CPI has gone up, he made it clear that it has a lot to do with "higher quality" of installs.And yet, big brands still need to find ways to get users to download and engage with their apps, and so should be concerned by CPI inflation. The good news is that mobile marketers appear to be getting better at generating app loyalty, and not merely app installs.

"This is because the average install this year has a higher likelihood of turning into a loyal user, compared to last year," Adler said. "So, even though it is more expensive to get a download, this is more than made up for by the higher quality."

By higher quality Adler really means better use of data, or "the ability to extract the right audiences from that data," as he told me. "By getting the right people to download the app, they are more likely to be long term users of the app."

Spending on engagement

Adler's response is understandably focused on optimization of ad spend, given that's what Fiksu does. But, lost in that analysis are the myriad other things that app developers are doing to foster loyalty in their user base.

While companies have increasingly focused on app engagement for years, it's only been in the last year that mobile marketing automation and related technologies have become more science than art. What used to be "dumb pipes" has become real-time, data-driven orchestration of notifications that nudge a user along a desired purchasing path.

SEE: On the cusp of the next wave of mobile monetization (TechRepublic)

Between optimized app user acquisition campaigns and ongoing improvements in engagement strategies, marketers are finally starting to get real value for their mobile marketing spend. That's good news for the app economy, but it's great news for every business that depends on mobile...which is every business.

Reference & Courtesy: http://www.techrepublic.com/article/acquiring-mobile-users-is-expensive-but-heres-why-theyre-worth-the-cost/

Intuit sells Quicken to private equity firm in management buyout

33-year-old personal finance software will be bolstered by more Mac development, improvements in reliability on Windows, says current Quicken manager

Credit: Intuit

Intuit yesterday said it had sold its Quicken personal finance software unit to H.I.G. Capital, a Miami-based private equity firm.

Financial terms of the deal were not disclosed.

The announcement put an end to a sales process that went public last August, when Intuit told customers it was unloading three parts of its business -- Quicken, QuickBase and Demandforce -- to focus on its most profitable software and services, the QuickBooks small business accounting division and the seasonally-skewed TurboTax tax preparation group. In January, Intuit sold Demandforce to Internet Brands for an undisclosed amount.

Last summer, Intuit's CEO explained that Quicken, which unlike QuickBooksand TurboTax lacked a cloud-based service or subscription offer, was essentially a dead end for the company. "Quicken is a desktop-centric business and it doesn't strengthen the small business or tax ecosystems," said chief executive Brad Smith in a conference call with Wall Street last year. "Our strategy is focused on building ecosystems and platforms in the cloud."

Quicken's contributions to Intuit's bottom line have been minuscule: In the 12 months preceding the August announcement, Quicken, which starts at $35.10 (Amazon price), contributed just $51 million to the firm's total revenue of nearly $4.2 billion, or slightly more than 1%.

But the company pledged to find a buyer who would invest in the 33-year-old Quicken software. That buyer turned out to be H.I.G. Capital, a global private equity firm that manages some $19 billion.

Eric Dunn, the head of Quicken, announced the sale in amessage and video posted to Intuit's website.

"[H.I.G. is] confident, as am I, that Quicken will thrive with increased investment, leading to product improvements and advances that will allow Quicken to continue to serve you well for decades to come," Dunn said.

The sale, said Dunn, will allow Quicken to double the number of engineers working on the Mac version -- which has long lagged behind the Windowsedition in features and functionality -- and devote more resources to improving the program on the dominant platform, Windows.

"We all know that Quicken could use some TLC, some tender loving care, to be as great as it can be. I'm very aware that Quicken isn't perfect," said Dunn. "Quicken [for Windows] could probably use some attention to the fit and finish, the polish, usability, resilience and reliability."

Dunn has his work cut out for him.

In many ways, Quicken is software that users love to hate. With years of data in the company's proprietary format -- and few alternatives -- they not only feel trapped but also regularly rail about the product. Quicken's listing on ConsumerAffairs.com, the consumer advocacy organization's website, makes for dismal reading: The overall satisfaction rating is one star out of a possible five.

"Like many other Quicken users, I ran into problems with Quicken 2016," complained someone identified only as "John" last month on ConsumerAffairs.com. "Quicken has the worst customer service of any major company with which I have had to deal. Their representatives are uninformed and untrained in the most simple issues."

The sale was a management buyout: Dunn confirmed that he was a "significant personal investor in the transaction." How that will work out over the long term was, not surprisingly, unclear.

Typically, a private equity firm that has partly financed a management buyout -- in such deals, managers are required to make personal investments to guarantee that they have a vested interest in success -- wants out after several years to recoup their investment and, assuming the transition has worked, to take a profit. At that point, the firm may be in the hands of management; or the equity firm's stake could be sold to another buyer or investor.

H.I.G Capital has invested in other software or software-based services recently. In January, H.I.G. was among the investors that bankrolled the purchase of Salary.com, a Wellesley, Mass. firm that focuses on employee compensation data, software and services. That was a management buyout as well: Salary.com's founders bought the company from IBM, which had acquired it in 2012 as part of a larger purchase of Kenexa.

The Quicken sale is expected to close by April 30.

Reference & Courtesy: http://www.computerworld.com/article/3041032/desktop-apps/intuit-sells-quicken-to-private-equity-firm-in-management-buyout.html

Ubuntu convergence finally impresses me

Image: Jack Wallen

It's taken me a long time to get on board the Ubuntu convergence train. I've been very pessimistic about the whole platform, based on the terrible state of Ubuntu Phone (as run on the Bq Aquaris handset).

But then, I happened to watch a video, by the wonderful people of XDADEVELOPERS, from Mobile World Congress, in which John Lee (of Canonical) demonstrates convergence with Ubuntu Phone running on an older Nexus 4 handset.

This video came just a week or so after Canonical made the first official announcement of a Ubuntu tablet to be released. This table will be manufactured by Bq and will be a part of the same Aquaris line as is their Ubuntu phone. The specs for the tablet aren't too shabby:

• Display: 10.1-inch IPS touch display (1920×1200 pixel resolution at 240 ppi)
• CPU: 64-bit MediaTek MT8163A 1.5GHz quad-core processor
• RAM: 2GB of RAM
• STORAGE: 16GB (micro SD memory card is included, adding storage expansion of up to 64GB)

All of this is fine and good...but up until now everything I have seen from Bq has been less than impressive

Let me explain.However, after digging around a bit (and watching the above video from WMC), I realize that all the criticism tossed at Ubuntu Phone has been premature.

First and foremost, we get what convergence is. You use a single device for all your needs:

• You carry your phone with you all day
• You work on your phone
• You plug your phone into a monitor and switch it to desktop mode
• You work at your desk with your phone
• You unplug your phone, switch it to phone mode
• You go home
• You plug your phone into your monitor at home and switch it to desktop mode
• You play on your phone at home
• Wash, rinse, repeat

For some of us, this doesn't make sense. Why? Because we're of an older mindset that precludes us from making a smartphone or tablet our only device. I do things that require some serious power (rendering videos and audio). But the truth of the matter is, a large percentage of people (especially of the millennial generation) have forsaken the tried and true form factor for their mobile devices. So when you consider this, convergence makes perfect sense. And, after watching the Canonical demo, the light goes off over my head and I can finally shout, "Ah ha!"

But what about...

The first question that comes to mind, when you consider this relative newcomer to the mobile space, is that of apps. As it stands, there are very few apps available for the Ubuntu Phone platform. To settle that issue, there is one thing you must consider:

Ubuntu Phone is still very much in development.

In fact, I would go so far as to say Canonical was quite premature in the releasing of devices. You see, this whole schmear isn't going to spread properly until Unity 8/Mir is released. At that point, everything changes. Once the Ubuntu desktop is in conjunction with the phone/tablet space, everything will be running the same platform, the same code. That is when things get interesting. When we finally see phone/tablet/desktop running the same release of Ubuntu, we'll see convergence finally work as it should. Why? Because all those apps we depend upon (LibreOffice, Audacity, Gimp, etc) will run on the convergent platform.

It should be noted, however, that the Bq Aquaris M10 will ship with LibreOffice, Mozilla Firefox, The GIMP and Gedit pre-installed. That's right, full-blown legacy apps running on the mobile platform. The current release date of the M10 is set for March, 2016.

Premature release of the platform

Lots of work still must be undertaken before this will come to fruition. That is why I believe Canonical was premature in releasing any devices. So far everyone has been less than kind to the Ubuntu Phone platform. What we really didn't understand (even though it was staring us in the eyes) was that we were seeing software very much in beta...maybe even alpha. It's a very rare occasion that a piece of beta software is ready for release. That was the disconnect. Ubuntu Phone has not (and is still not) ready for release.

The good news is that Unity 8/Mir are just around the corner. Canonical has given us every indication that Ubuntu 16.10 will ship with the new platform. I will, however, offer up this piece of advice. When Ubuntu 16.10 does ship (October, 2016), make sure Ubuntu Phone is ready to deliver on the promise of convergence...completely. If Canonical can pull off the full blown convergent experience (as in all legacy apps run on the platform), then they will have a major victory on their hands (as well as a platform ready for public consumption).

I hope this happens. Canonical and the Ubuntu Phone developers have been working tirelessly on this project and it needs (nay, deserves) a win of this magnitude.

Do you think Canonical's take on convergence will succeed? If not, why?

Reference & Courtesy: http://www.techrepublic.com/article/ubuntu-convergence-finally-impresses-me/

Are Your Kids The Latest Target Of Hackers?

The short answer is yes. V-Tech and Hello Kitty join the depressingly long list of companies to have been hacked in 2015. This time, however, the data taken were overwhelmingly about children – their usernames, passwords, addresses, birthdays, photos, and other personal information.

At first glance, you may be wondering why hackers would bother, but there are three major reasons for targeting toy companies. First, they are an easy target. V-tech representatives admit that the company’s security was subpar. Second, children tend to reuse passwords just like adults do, so getting a password for one site may unlock most, if not all the sites that child uses, and of course, some sites require payment for various features to be unlocked, or are purchasing portals, so the child’s information may inadvertently expose a parent’s credit or debit card information.

Third, and perhaps most chillingly, it could well be about the long game. A hacker need only wait until the child is old enough to get a credit card and then steal his or her identity. It’s not like it costs anything to store the data and wait, and given how easy it was to breach V-Tech and Hello Kitty’s security, that’s as good as being handed free money.

There are two tragedies rolled into one here. The first and most obvious is that not even our kids are safe from hackers, and nothing seems sacred to them. The second is that the breach could have been avoided. It’s not like V-Tech or Hello Kitty didn’t have ample warning or ample opportunity to protect themselves against such things. Online tech portals have been screaming from the rooftops all year about the dangers, and outlining the steps companies need to take if they want to be secure. V-Tech and Hello Kitty simply opted to do nothing with the information. That makes it somewhat difficult to feel sorry for them. They got lucky for a while, skating by with minimal security. Looks like their luck ran out. How’s security at your company? If you are unsure, a network audit is probably your best first course of action.

IT Growth Outlook is Bright

With spending on hardware and software reaching record amounts, new research shows the IT industry's growth outlook has reached its highest level in five years.

Fueling the growth, according to the CDW IT Monitor, is the anticipated record-high demand for hardware and software investments. The data shows 80 percent of IT decision-makers are planning hardware spending, up 4 percentage points from October. Small businesses and local and state governments are expected to see the most significant increases.

Additionally, 82 percent of IT decision makers are anticipating making software purchases, up 7 percentage points.

Neal Campbell, senior vice president and chief marketing officer for CDW, said the data indicates that the IT spending outlook, first established in 2007, has reached a significant milestone.

"More IT decision-makers are feeling optimistic about the prospects of their IT budgets increasing, and they are anticipating significant IT investments in the next six months, especially on the hardware and software fronts," Campbell said. "We believe that organizations will continue to look at technology investments as ways to boost efficiencies, increase productivity and gain new competitive advantages in 2012."

Optimism regarding increased IT spending is the strongest among IT decision-makers in the health care, manufacturing and IT industries, according to the research.

The retail industry also continues to increase its investment optimism. IT leaders anticipate hardware and software purchases to increase by 3 and 9 percentage points, respectively, from October.

The CDW IT Monitor is based on surveys of more than 1,000 IT decision-makers representing all sizes of companies and multiple industries, across three levels of government.

Reference & Courtesy: http://www.ittechnewsdaily.com/251-growth-2012.html

Wipe your Deleted Data Away: Using cipher.exe

Administrators can use Cipher.exe to encrypt and decrypt data on drives that use the NTFS file system and to view the encryption status of files and folders from a command prompt. An updated version of the Cipher tool has been released for Windows 2000, and is included with Windows XP. The updated version adds another security option. This new option is the ability to overwrite data that you have deleted so that it cannot be recovered and accessed.

When you delete files or folders, the data is not initially removed from the hard disk. Instead, the space on the disk that was occupied by the deleted data is "deallocated." After it is deallocated, the space is available for use when new data is written to the disk. Until the space is overwritten, it is possible to recover the deleted data by using a low-level disk editor or data-recovery software.

If you create files in plain text and then encrypt them, Encrypting File System (EFS) makes a backup copy of the file so that, if an error occurs during the encryption process, the data is not lost. After the encryption is complete, the backup copy is deleted. As with other deleted files, the data is not completely removed until it has been overwritten. The new version of the Cipher utility is designed to prevent unauthorized recovery of such data.

Most Windows 2000 and XP Professional users are aware of the ability to encrypt data at the file level, using the Encrypting File System (EFS). It’s easy to do through the graphical interface—as easy as checking a checkbox on the Advanced File Attributes property sheet. However, many IT pros aren’t aware that encryption can also be performed at the command line.

The cipher.exe utility is included with Microsoft’s most recent NT-based operating systems. It allows you to do the same tasks—encrypt and decrypt—that you can do through the GUI, but also allows you to do much more—all through the command line. Administrators and power users can take advantage of the cipher tool’s power to gather encryption information and more quickly perform encryption tasks.

This Daily Drill Down will introduce you to the cipher tool and walk you through the steps of using its various switches.

Why a command line encryption tool?
What’s the need for a command line encryption tool if it’s so easy to encrypt and decrypt files using the GUI (other than the fact that some of us just like the character-based interface)? While encryption and decryption are easy attributes to set through a file or folder’s property sheet, there are other encryption-related tasks that are difficult (or impossible) to accomplish through the GUI.

For example, what if a user wants to create a new file encryption key? You might think you could generate a new key pair by requesting a new EFS certificate. You would do this by invoking the Certificate Request Wizard via the Certificates MMC (if you’re in an Active Directory domain) or via the certification authority’s Web page. But the problem with this method is that the file encryption key that is generated by EFS is wrapped with the user’s public key during the encryption process. As a workaround, the cipher tool allows you to create a new encryption key by typing cipher /k.

What if you want to encrypt files that are already encrypted? There’s no way to do that through the graphical interface; you must first decrypt the file before you’re allowed to change its attribute back to encrypted. With the cipher tool, you can force encryption on all files and folders, including those that are already encrypted.

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Tip
The original version of cipher.exe that was released with Windows 2000 does not include the data overwrite function. This was added in a version of the cipher tool that Microsoft released in June 2001 (and included in Windows 2000 SP3). The drive-wiping function is included in the cipher tool that comes with Windows XP.

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The cipher.exe command is an external command that is available in the below Microsoft operating systems.

Windows 2000
Windows XP
Windows Vista
Windows 7

Syntax

Displays or alters the encryption of directories [files] on NTFS partitions.

CIPHER [/E | /D] [/S:dir] [/A] [/I] [/F] [/Q] [/H] [/K] [pathname [...]]

CIPHER /W:directory

CIPHER /X[:efsfile] [filename]

/E	Encrypts the specified directories. Directories will be marked so that files added afterward will be encrypted.
/D	Decrypts the specified directories. Directories will be marked so that files added afterward will not be encrypted.
/S	Performs the specified operation on directories in the given directory and all subdirectories.
/A	Operation for files as well as directories. The encrypted file could become decrypted when it is modified if the parent directory is not encrypted. It is recommended that you encrypt the file and the parent directory.
/I	Continues performing the specified operation even after errors have occurred. By default, CIPHER stops when an error is encountered.
/F	Forces the encryption operation on all specified objects, even those that are already encrypted. Already-encrypted objects are skipped by default.
/Q	Reports only the most essential information.
/H	Displays files with the hidden or system attributes. These files are omitted by default.
/K	Create new file encryption key for the user running CIPHER. If this option is chosen, all the other options will be ignored.
/W	Removes data from available unused disk space on the entire volume. If this option is chosen, all other options are ignored. The directory specified can be anywhere in a local volume. If it is a mount point or points to a directory in another volume, the data on that volume will be removed.
/X	Backup EFS certificate and keys into file filename. If efsfile is provided, the current user's certificate(s) used to encrypt the file will be backed up. Otherwise, the user's current EFS certificate and keys will be backed up.
dir	A directory path.
pathname	Specifies a pattern, file or directory.
efsfile	An encrypted file path.

Used without parameters, CIPHER displays the encryption state of the current directory and any files it contains. You may use multiple directory names and wildcards. You must put spaces between multiple parameters.

To overwrite deleted data on a volume by using Cipher.exe, use the /w switch with the cipher command. Use the following steps:

1. Quit all programs.
2. Click Start, click Run, type cmd, and then press ENTER.
3. Type cipher /w:driveletter:\foldername, and then press ENTER. Specify the drive and the folder that identifies the volume that contains the deleted data that you want to overwrite. Data that is not allocated to files or folders will be overwritten. This permanently removes the data. This can take a long time if you are overwriting a large space.

   The /w switch is used to overwrite data in unallocated space on the disk.

   Note With mount points in Windows 2000, you can mount a volume on any empty folder on an NTFS volume. When you do this, the mounted volume does not have a drive letter of its own. The only way to address that volume is by using the path where you created the mount point. Therefore, the /w switch requests a path of a folder, and from that, it determines the associated volume to wipe. Because of the way the file system works, the whole volume must be wiped. A file can be written anywhere on the volume at any time. A folder does not address a specific physical location on disk but is a logical container for file entries in the volume's table of contents (MFT or FAT). To make sure that there is no leftover data in unallocated space, all unallocated space on the volume must be wiped.

For more details, look into following links:

http://www.microsoft.com/resources/documentation/windows/xp/all/proddocs/en-us/cipher.mspx?mfr=true

http://support.microsoft.com/kb/315672

http://www.computerhope.com/cipher.htm

http://www.techrepublic.com/article/use-cipherexe-for-command-line-encryption/5030732

http://www.windowsecurity.com/articles/using-cipherexe.html

Top IT skills wanted for 2012

Takeaway: A new Computerworld survey indicates the nine IT skills that will be in demand in 2012.

Nearly 29 percent of the 353 IT executives who were polled in Computerworld’s annual Forecast survey said they plan to increase IT staffing through next summer. (That’s up from 23% in the 2010 survey and 20% in the 2009 survey.)

Here are the skills that the IT executives say they will be hiring for:

1. Programming and Application Development–61% plan to hire for this skill in the next 12 months, up from 44% in the 2010 survey. This covers the gamut from website development to upgrading internal systems and meeting the needs of mobile users.
2. Project Management (but with a twist)– The twist is that they’re not going to just be looking for people who can oversee and monitor projects. They also want people who can identify users’ needs and translate them for the IT staffers-the increasingly popular business analysts.
3. Help Desk/Technical Support–Mobile operating systems have added a new dimension to help desk and tech support.
4. Networking-This demand is being fueled partially by virtualization and cloud computing projects. The survey also revealed that execs will be looking for people with VMware and Citrix experience.
5. Business Intelligence-Computerworld interprets this uptick to a focus shift in many companies,  from cost savings to investing in technology. That will be nice if it pans out that way.
6. Data Center-Virtualization and the Cloud could also be behind the increased need for IT professionals with backgrounds in data center operations and systems integration.
7. Web 2.0-Tech skills centered around social media will be in demand, with .Net, AJAX and PHP as key back-end skills, with HTML, XML, CSS, Flash and Javascript, among others, on the front end.
8. Security-Although down from 32 percent in the 2010 survey, security stays a top concern of IT executives.
9. Telecommunications-The survey indicates a demand for people with IP telephony skills, and for those familiar with Cisco IPCC call center systems.

Article from:

http://www.techrepublic.com/blog/