The APEX conference and exhibition in Long Beach this year really looked like the industry turnaround it was projected to be. More new technology, more new IFEC ideas, more players and yet if IFExpress was to use one word to describe it, it would be “Crossroads”. Why? The opposite pull of installed aircraft entertainment systems versus that of passenger carry-on devices like smartphones, iPads, tablets and electronic readers of all description – B.Y.O.D. (Bring You Own Device). The airlines are at a real decision point. Do we install seatback/overhead IFE or do we cater to the “always connected” generation? To point out the obvious trend, one study claims some 31% of US commercial aircraft are already Wi-Fi equipped while our own analysis put the worldwide market at approximately 10% of the commercial fleet outfitted. Whatever the actual trend is, there is no denying that more passengers are carrying devices that inform, entertain, update, and instruct than ever before. Thus the conundrum – do we serve full screen, first-run video to passengers, or do we change the business models and deliver content to their personal devices, or do we do both?

While you ponder the above question here are just a few of the first day session topics that might be of interest. IFExpress will report on show highlights in the next few issues but because the topics and speakers were spot on, we wanted to give an ‘atta-boy’ to APEX. While we did not attend all the sessions, what we heard was reason enough to join – and by the way, members can find all the presentations on the APEX website. To quote APEX from the show guide: “Join APEX on a learning journey where experts from Intel, Phillips, CISCO, Ericsson and Google will discuss Ecosystems and what they mean to your network.”

Intel – “On the Road Strategy” – Ulmont Smith, VP. Heading for 14 nm integrated circuit technology (22 nm today), Mr. Smith noted that over 100 million 22nm transistors can fit on the head of a pin and that today’s 22nm CPU’s can run 4000 times faster, consume 5000 times less energy and the cost has dropped 50,000 times. What this means is value to the technologies they support, one of which is connected automobiles. He noted their global GENIVI Alliance goal to establish a global LINUX-based OS platform for automotive vehicle infotainment. He also opened the door for BYOD (Bring Your Own Device) as a driving force in our industry. Further, the Intel Insider architecture is coming online for end-to-end hardware protection for movie and TV content.

Phillips – “Overall Ecosystem Consumer Perception” – Michael Held, design Manager. Ecosystems like Apple and Nike provide a natural connection between “varieties of content to a variety of receivers” – in their words “One Platform to seamlessly manage, aggregate, create & edit, subscribe and publish.” Michael went on to define why Ecosystems work and how they can add value in businesses. Using a product example, he showed the success of Apple Ecosystem impacts on sales. More importantly, his lessons learned could benefit almost any endeavor – focus on the passenger, in a networked world distributed decision making rarely works, platform evolution and continuous improvements are expected today (change), collaboration has never been more important, there are no standalone products anymore – only experiences, people don’t buy systems!

CISCO – “B.Y.O.D. – Potential in Aviation” – Ted Nugent & Leszek Izdebski – Cisco Systems. Focusing on the open Cabin Network and closed Cabin Staff Network CISCO focused on the passenger access requirements including authentication, auditing, disclaimers, and monitoring. Importantly the speakers noted the requirement for no reconfiguration, plug & play, easy administration… and free (or cost effective). The architecture was identified along with security (keeping good guys in and the bad guys out). From a data perspective, the shift to streaming video is driven by consumer behavior with the new tablets and phones being part of the incentive. A very interesting connection to loyalty programs was introduced and this is perhaps the first time we see that frequent flier miles used as payment for entertainment. Another new word heard is UltraViolet usage model. Described as a new way to collect and enjoy movies and TV show in the cloud. It is the next-gen of a standardized media product… an Ecosystem to watch. Further, to meet passenger future expectations, there will be a change in the technical solution for delivery of IFE, and a concurrent change in the business model.

Ericsson – Geoff Hollingworth – Business Innovation. One of the best quotes found at the show was discovered on Mr. Hollingworth’s slides; “When one person is connected their life changes. When everything is connected our world changes.” He describes the new telecom cycle (their Ecosystem of the connected world) and described the interplay between a 10X increase in devices and the resultant 10X growth in supporting industries. The key concept is managing the change. He noted Maersk Shipping uses connected technology to save millions of dollars in fuel. If you are a competitor to Maersk, your company has to find a way to save that kind of money and thus your company will change as well. The message – change begets change. The message? One airline that uses connectivity to change for the better will assuredly drive change for another(s).

Editor’s Note: Peter Lemme’s (AirCloud CTO) presentation on “Wireless Streaming Video Technology to Your Own Device” is a tour de force for the subject and we strongly recommend reading it. We also note that there might be a technology or two we saw at the show that will add to his list of ‘usual suspects’.

We have a new feature for you – we call it IFEC Buzz. During APEX, we took pictures of a few industry notables and will give them a chance in future issues for their 5 minutes (or less) of fame. Our editor requested one succinct sentence about the industry from many show goers and will publish it under their photo and Trish – Editor of IFExpress – launches the feature this week. Stay Tuned on this one!

Additionally, you can view our show photo coverage on Flickr.

And last but not least, don’t forget AIX North America in Seattle this week! It runs through Thursday 9/27 at the Seattle Convention Center!!