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Vodafone's web services chief quits

Pieter Knook's departure highlights problems in the carrier's 360 platform strategy

By CAROLINE GABRIEL

Published: 28 September, 2010

READ MORE: People/Management | Vodafone Group

Less than three years ago, Vodafone signalled a complete shake-up of its mobile web strategy when it hired Microsoft's mobile chief, Pieter Knook, to run its new internet services division, an appointment that led to the creation of its ambitious 360 cloud/web platform. But Knook has quit amid reports that 360 is not delivering on its promises.

Nokia, which recently hired one of Knook's successors, Stephen Elop, from Microsoft, could take note. The software giant understands all kinds of cultures, but the mobile consumer is not one of them. However, despite criticisms of 360, Vodafone says it will continue to develop the system, and suggests that Knook's departure is, instead, related to its recent streamlining of management layers. "With the recent changes in Vodafone Group's organization structure and the creation of the Group Commercial function, we can confirm that Pieter has decided to leave the business," the official statement said.

The Financial Times said Knook's decision came after "important aspects of the operation were scrapped", though it was not clear whether this referred to current or future projects that may have been cancelled.

When Knook joined in February 2008, he had a heavy remit - to keep Vodafone dominant in branding and customer control, in the consumer web services sector, fending off both over-the-top players and Nokia. As director of internet services, Knook was responsible for delivering revenue growth around internet, content and advertising with a focus on differentiating Vodafone's offerings by creating distinctive content for mobiles, as part of the carrier's Mobile Plus strategy. His target when he signed up was to earn the cellco an additional 10% of group revenue, or about £3bn ($5.89bn), from new services - broadband, mobile advertising/web and fixed/mobile convergence - by 2010. Vodafone does not break out the figures for these activities but the flagship of the web strategy, 360, has certainly not delivered those kind of figures.

Industry watchers were quick to blame 360 for Knook's departure. Bengt Nordstrom, CEO of consultancy Northstream, said: "Vodafone 360 is almost a case study of what most major operators are doing wrong. Rather than cooperating with their peers around the world to create a common platform for social media and other services, individual operators instead continue to follow a sub-scale, proprietary approach."

Earlier this year, Vodafone ended sales of its 360-branded handsets, which were designed to integrate the LiMO-based software experience and the hardware. It decided, instead, to offer 360 on multiple devices and operating systems. The cellco has recently been leaning more towards cooperative approaches with other cellcos, such as Wholesale Applications Community (WAC).

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