Acadine Technologies – The Walking Dead Pt II.

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H5OS likely to struggle against tried and tested native.

  • Acadine Technologies, a well-funded Chinese start-up is aiming to breathe new life into the zombie that was once Firefox OS.
  • Acadine Technologies is a Hong Kong based start-up that has received $100m in funding from Tsinghua Unigroup which is directly linked to Beijing based Tsinghua University.
  • Tsinghua Unigroup already owns chipmaker Spreadtrum and RDA Microelectronics and appears intent upon creating an integrated value chain encompassing semiconductors, devices, software and services.
  • Now that Firefox is officially discontinued (see here), Acadine can take on the mantle of leading the development of web software in mobile devices.
  • This is how Acadine and the new incarnation of Firefox OS (called H5OS) intends to get around the problem that there are no Digital Life services available for this OS.
  • By using HTML5 code, H5OS can access the wealth of developers that exist for the web and apply them to mobile, wearables and IoT with minimal effort.
  • The problem with this is that HTML5 on mobile devices does not run as efficiently as native code.
  • This means that a device running HTML5 will have less performance and a shorter battery life than a similar priced device running native code.
  • Back in 2013, when Mozilla launched Firefox OS it made what I called “The Vital Promise” (see here) which consisted of mid-high smartphone performance at mid to high feature phone prices.
  • Mozilla was unable to deliver on this promise which I am certain is the major reason why it failed.
  • If Acadine also wants to succeed it must also live up to this promise despite the fact that it is implicitly backed by the Chinese government.
  • The Chinese ecosystems are all busily engaged in looking for a software platform upon which to base their services as they are unwilling to be dependent on software controlled by Google.
  • This is why some of them are engaged in creating their own versions of Android (JunOS), while others are considering Sailfish, Ubuntu, Cyanogen and so on.
  • Consequently, I think that if Acadine can show that H5OS can at least offer performance at least as good as native, then it has a chance of being selected by one of the Chinese ecosystems.
  • This is easier said than done and every attempt to crack this problem to date has failed.
  • Acadine will need to do something radically different to succeed.
  • Unfortunately, I am not convinced that Acadine is doing something different and suspect that H5OS will remain within the stagger of zombies that continue to exist in open source.

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.