Microsoft’s recently launched OneApp software has the developing world talking. The application ‘smartens’ standard, basic phones — technically known as ‘feature’ phones — by allowing users one-stop access to applications like Windows Live Messenger, Twitter, and Facebook. Given that billions of people in the developing world do not own computers or smart phones, the feature phone is their only computing device. By allowing feature phones to tap into apps, Microsoft is bringing both convenience and access to the developing world. The addition of applications to phones is stale news for smart phone users. Yet, for those with cheap, crummy phones, OneApp has exciting disruptive potential.
For a number of reasons, OneApp is quite special. The product is as easily downloadable as a ringtone, which drastically reduces unnecessary installation time while enabling processing within meager memory capacity. Unlike apps on ‘smart phones’ like the iPhone that are accessed through app stores, OneApp software is offered through network operators who pre-determine the bundled set of offered apps. Such a configuration allows operators to centrally store and update the apps, increasing convenience for users. Under such an arrangement, users would have no concern for the local storage of their apps and would not have to comb through a store in search for an appropriate app. Also conveniently included is cloud service, a feature that improves overall performance and assists by offloading processing and storage to the Internet.
Equally intriguing is OneApp’s potential to “trickle-up.” Traditionally, sophisticated products are created in rich countries and later de-featured and repackaged for the emerging markets. Recently, a few products have reversed this process. One example is GE’s $2,500 echocardiograph machine. Initially designed for Indian and Chinese doctors who typically travel long distances to see their remote patients, the device is now making inroads in developed countries due to its effectiveness, compact size, energy efficiency and very low retail price. With similarly profound market potential, OneApp could be a major coup for Microsoft.
Although Microsoft eventually intends to unveil OneApp to the rest of the developing world, the application is currently only available in South Africa. Microsoft offers OneApp through a partnership with Blue Label Telecoms, a “mobile wallet” offerings company that is already revolutionizing the South African payments space. In a country where carrying cash is very dangerous because of high crime rates, mobile wallet allows customers to access and transfer money using their handsets. With this application, and the help of BLT, Microsoft has taken a step towards turning every phone in the developing world into a sophisticated, cost effective and user friendly device.
Microsoft’s OneApp software is highly attractive to markets in the developing world by virtue of being simple, convenient, affordable and accessible. By sacrificing raw performance in order to give customers something that is more accessible and more affordable, OneApp holds true disruptive potential. Of course, the ultimate success of the product depends on Microsoft’s execution, and competitor’s reactions. But for now, courtesy of OneApp, that $20 phone just got a lot smarter.
