Microsoft plans 'Skymarket' apps store for Windows Mobile 7 in 2009

[AppleInsider]

Following in the footsteps of US mobile provider T-Mobile and Google's own Android smartphone platform, Microsoft is now plotting its own effort to create an online store for mobile software in the model of Apple's iPhone App Store.

The project, tentatively called "Skymarket," was revealed in a job listing Microsoft posted earlier today at computerjobs.com for a Senior Product Manager to oversee a marketplace service for Windows Mobile.

According to the job listing, Microsoft doesn't plan to commercially launch Skymarket until the release of Windows Mobile 7, slated for late 2009. However, the company does hope to find someone who can handle "driving the cross group collaboration for the initial launch of the marketplace offering to the developer community this fall."

'Competitive spirit' required to monetize

The posting also indicates Microsoft hasn't made much progress so far about its conceptual goals for the store. It calls for an applicant who can assume responsibilities for "definition of the product offering, pricing, business model and policies that will make the Windows Mobile marketplace 'the place to be' for developers wishing to distribute and monetize their Windows Mobile applications."

It also demands "responsibility for the business model and key elements that will drive the optimal experience for developers and monetization of the service by Microsoft" and the ability to "define and mange the consumer, developer and mobile operator value proposition and supporting materials for use by PR, MCB's [Microsoft's Mobile Communication Business] developer outreach organization, and other teams across Microsoft."

The listing also cites "working with multiple stakeholders (product team, product planning, developer outreach, business operations, legal and more) in definition on the process, policies and terms of use through which developers and consumers take part in the marketplace," as a key responsibility, along with the ability to "work closely with product planning on prioritization of consumer, developer, and mobile operator scenarios."

The product manager position is also tasked with "management of KPI's [Key Performance Indicators] for the service post launch." KPI is used to define metrics for setting and reaching organizational goals within the world of corporate middle managers and committees. Among other qualifications, the position also requires a "competitive spirit" and "demonstrated success in starting, building and driving new business."

A half decade of Windows Mobile

Microsoft's Windows Mobile was unveiled as a conceptual project in 2000 as a way to move the company's underlying Windows CE operating system from the dying world of handheld PCs and PDAs into the emerging market for smartphones.

The effort followed the promising success of Handspring's 1999 Visor, which licensed the Palm Pilot operating system to deliver a PDA with an expansion slot that allowed the device to be used as a mobile phone with the appropriate Springboard module. The device turned into the Treo, and its success resulted in Handspring merging back into Palm itself and converting Palm from a PDA vendor into a smartphone company.

Microsoft delivered its first WinCE-based support for phones with Pocket PC Phone Edition in 2002, followed by a release the next year branded as Windows Mobile 2003 (WinCE 4.0). In 2005, Microsoft released Windows Mobile 5.0 (WinCE 5.0) and began a partnership with Palm that replaced the Palm OS with Windows Mobile on certain Treo models noted with "w," a move that nearly doubled the market share of Windows Mobile among smartphones at the expense of the Palm OS.

In February 2007, just weeks after the announcement of the iPhone, Microsoft released Windows Mobile 6 (WinCE 5.2). The company has released one update since, branded Windows Mobile 6.1. Despite the expansion of Windows Mobile across Palm's Treo models, Microsoft's share of the worldwide smartphone market has fallen from 23% in Q1 2004, to 18% in Q1 2005, and down to 12% in Q1 2006 where it remained in its Q4 2007 figures according to Canalys.

Microsoft's slide is due in part to the advance of US market leader RIM and its popular BlackBerry, as well as the iPhone. Apple grabbed a 7% share of the worldwide market in Q4 2007, over half that of Microsoft's global Windows Mobile partners put together, although Apple's sales only represented one market, one model, and one mobile provider, after only having been on the market for six months.

The race to sell mobile software

The rapid success of the iPhone and its even faster expansion worldwide with the launch of the iPhone 3G have been matched only by the explosion of interest in Apple's iPhone App Store, which reported 60 million downloads and revenues of $30 million in its first month. T-Mobile announced plans to open its own store for the various different phones on its network, and Google recently announced its own outline for Android Market, intended to distribute software in the model of YouTube.

Apple executives have stated that the goal of the Apps Store was to add value to the iPhone rather than bring in big profits. Google's plans describe a similar intent to foster interest in Android development; it has not yet released any details on how it might being handling paid transactions.

A Microsoft-run mobile software store designed to "monetize" mobile software for the company would compete against the company's existing partners, including Handango, a site Microsoft currently recommends to interested developers. Handango takes a cut from between 40% and 70% of mobile developer's revenues.

Microsoft has already established a store for selling games called the Xbox Live Marketplace, as well as a separate store for music called the Zune Marketplace. Microsoft also acquired a mobile software subscription service in its purchase of Danger, the maker of the TMobile Sidekick.

The company's inability to make any money in its consumer-oriented products division has caused some of the company's investors to demand that Microsoft spin off its Windows Mobile business along with the Xbox and Zune and focus on PC operating systems and software.

[ View this article at AppleInsider.com ]

[solipsism]

1) I thought MS would be the last to adopt a centralized mobile App Store store model. Are we to expect that others will announce their plans this week as well.

2) MS should have at least announced it as the next version update, not wait until version 7. Then again, the next WinMo updates are so few and far between that late 2009 is early for MS.

[gmon750]

Originally Posted by solipsism

1) I thought MS would be the last to adopt a centralized mobile App Store store model. Are we to expect that others will announce their plans this week as well.

2) MS should have at least announced it as the next version update, not wait until version 7. Then again, the next WinMo updates are so few and far between that late 2009 is early for MS.

The one thing Microsoft does very well is to always be the last one to arrive in the game. That just goes to show how their business model is more reactive than proactive. One can never count them out of the running as I'm sure they will somehow leverage their dominance in Windows to force it on everyone's desktop.

Monkey-boy Ballmer must be readying his chair-throwing-catapult for the unfortunate soul that takes the job opening and tries to play catch-up to an established market made by Apple and soon Google.

I won't hold my breath.

[bloggerblog]

MS trying to fit in with the cool kids again... Skymarket!!!
Just call it CyberMarket and slap Rick Astly's face for an app.

That's one old dog who can't seem to learn any new tricks.

[whatisgoingon]

they would have folded up shop long ago, because they wouldn't know what to do next.

[8CoreWhore]

"SkyMarket"???

[TimmyDax]

"define and mange the consumer" - I'm pretty sure that means eat in french. Surely Ballmer's job, no?

[wheelhot]

Lol, monetize the appstore market. 40 and 70% developer revenue? No way I will ever develop (if I choose to start developing applications) on such platform.

SkyMarket? That reminds me of MobileMe because of the sky icon...

[theGAR]

Me too, me too-oo !!

[Buck]

They'll have a hard time explaining the name to customers. They are familiar with 'Windows' and 'Mobile', so how are they going to push that name? Nobody's going to remember that.

[Galley]

It's the Sky Mall catalogue, on your phone!

[.:R2theT]

Is is just me or does EVERYTHING that MS is doing seem to be grasping at straws?

I know people will say that MS is huge and has the money but it sure seems like they are a day late and a dollar short on most of its new initiatives. They can have made a cent on the Zune yet. I seem to remember seeing that their game console is just about to turn a profit. Doubtful they can pull off the Skymarket, it will just be another Apple knock-off.

They will probably promise developers 90% of the revenue just to encourage interest.

[urbansprawl]

First off, just another case of "Redmond, start your copiers".

Handango's ridiculous fees are what makes the iPhone app store so sweet for developers. They get 70% of their app's retail tag, and they don't have to box it, distribute it, handle credit cards or anything. No doubt Microsoft will try to copy this too, but really, will they build an API worth programming on their platform?

[PeterR]

Hmm. MS has made money on the Xbox. The Xbox has done as well as any console, except the cheap, popular, and profitable Wii. A cynical person like myself might suggest that the Xbox is in the same division as WinCE and Zune nobody can see how much money the iPhone competitors are losing.

Edit:

Also consider, it's a lot easier to use the inbuilt internet search on a mobile phone. Whoever wins the mobile market will be able to pick where mobile search goes. Google will fight hard, and be willing to drop a lot of money on making Android better, so that MS can't drive mobile traffic to live.com. MS won't be able to charge anything for WinCE, because Google will push free Android onto any carrier that wants it.

[NOFEER]

they waited for version 7 because it won't be compatible with earlier version all previous software won't work either.....just like zune

[wheelhot]

Minimum System Requirements for Skymarket (Assuming it will be released by Windows 7), Windows Vista and Windows 7, XP is no more supported

[mcarling]

Microsoft should give up on software and focus on what they do well: hardware.

[IQatEdo]

Originally Posted by theGAR

Me too, me too-oo !!

Very good!

[nvidia2008]

If you're a fan of a certain TV Comedy...
"Hey Earl, they've got this market, and it's in the sky...!"

[nvidia2008]

Or to which I say to Microshaft....

[Enigmafan420]

When was the LAST TIME M$ had an ORIGINAL idea?

Their "me too"ism may have worked in the late 80s and early-mid 90s, but at this point it is just so blatant and boring...

IF they want to get back on top, they need to INNOVATE not IMITATE.

[Enigmafan420]

Originally Posted by mcarling

Microsoft should give up on software and focus on what they do well: hardware.

That's funny-I don't care who you are

[JeffDM]

Originally Posted by solipsism

1) I thought MS would be the last to adopt a centralized mobile App Store store model. Are we to expect that others will announce their plans this week as well.

2) MS should have at least announced it as the next version update, not wait until version 7. Then again, the next WinMo updates are so few and far between that late 2009 is early for MS.

Isn't MS effectively the last to adopt a centralized app store? Qualcomm, Apple, Android have one, at least, Android's is proposed, but the platform hasn't been available to consumers yet. I wonder if Symbian has an app store. PalmOS probably isn't relevant anymore, whether or not it has one is a pointless exercise.

Originally Posted by Galley

It's the Sky Mall catalogue, on your phone!

That name was exactly what I was thinking.

Originally Posted by PeterR

Hmm. MS has made money on the Xbox. The Xbox has done as well as any console, except the cheap, popular, and profitable Wii. A cynical person like myself might suggest that the Xbox is in the same division as WinCE and Zune nobody can see how much money the iPhone competitors are losing.

Is the Xbox finally making them money? Have they made back their initial investment yet? That said, as you suggest, MS already does have marketplaces, it's no stretch to expand them to cover more devices.

[PG4G]

Apple's market strategy for stores, I believe, is simple and reliable. iTunes for digital downloads. Apple Store for physical purchases.

How about these 30 store policies from everyone else, esp Microsoft.

Sadly, however, Apple took the cake on an early, simple, wireless and useful download and installation setup for a store.

Any following will be branded what everything else that follows apple is branded cheap and second hand.

Too bad people couldn't see that in the early 90's or Mac may be by far the dominant brand.

[bloggerblog]

Originally Posted by JeffDM

Is the Xbox finally making them money? Have they made back their initial investment yet? That said, as you suggest, MS already does have marketplaces, it's no stretch to expand them to cover more devices.

I'm sure you realize that MS does not make money from the XBox hardware instead they make money from Games, the same way HP makes no money money from selling printers but from ink and toner. All console manufacturers are aware of Atari's mistake when Activision kicked their butt.

[brlawyer]

Originally Posted by Enigmafan420

IF they want to get back on top, they need to INNOVATE not IMITATE.

Well, the last time they did that was probably when Bill Gates and his lawyers "innovated" in the legal interpretation of the System license agreement with Apple, when MS blatantly copied its features to create Windows 1.0...huh, no, not really...

[JeffDM]

Originally Posted by bloggerblog

I'm sure you realize that MS does not make money from the XBox hardware instead they make money from Games, the same way HP makes no money money from selling printers but from ink and toner. All console manufacturers are aware of Atari's mistake when Activision kicked their butt.

Yes, but both revenue streams show up on the same balance sheet. Sales of games just weren't making up for the losses on the hardware. Then there's the cost of developing the entire platform.

[SpamSandwich]

Innovation is similar to imitation, in that it is the 'improvement' of something that already exists.

Invention is creating something new.

[anantksundaram]

Originally Posted by SpamSandwich

Innovation is similar to imitation, in that it is the 'improvement' of something that already exists....

True enough, but the key word there is "improvement."

[MacTel]

I would bet that the developers are driving these guys to intro the app stores. They are turning to MS, Google, and the rest and saying,"Hey, why haven't you done this obvious thing?"

Why do they need to wait until Windows Mobile 7.0? They need an excuse to whip something together. Good luck MS!

[razorpit]

I wish Microsoft good luck. Competition is a good thing and it will keep Apple on its toes. A big win for users of both WinCE (love that abbreviation) and the iPhone operating system.

[solipsism]

Originally Posted by JeffDM

Isn't MS effectively the last to adopt a centralized app store? Qualcomm, Apple, Android have one, at least, Android's is proposed, but the platform hasn't been available to consumers yet. I wonder if Symbian has an app store. PalmOS probably isn't relevant anymore, whether or not it has one is a pointless exercise.

Nokia has to completely revamp theirs so I'm not including theirs, and I don't thin RiM has one setup yet.

[probably]

Is this article implying that they've named it but haven't done any of the planning?

[digitalclips]

Originally Posted by whatisgoingon

they would have folded up shop long ago, because they wouldn't know what to do next.

Yep they'd be at MSDOS v2576.12 by now.

[Mr Underhill]

jeez is this story a wind up? God I'd be embarrassed if I worked for M$ right now.

Skymarket!! He he he nice one AI

How about pie-in-the-sky-market

[monosound]

Skymarket?

HAHAHAHAHAHAHAHAHAHAHAHA

I hope this is a bad joke for MS sake...

[flemsha]

Developers developers developers!

When Apple did it it was cool. When google did it it was competition. Now it is just copying.

Microsoft are becoming like the kid who never quite got it.. and sadly still doesn't.

[JeffDM]

Originally Posted by flemsha

Developers developers developers!

When Apple did it it was cool. When google did it it was competition. Now it is just copying.

Microsoft are becoming like the kid who never quite got it.. and sadly still doesn't.

Uh, okaaay. If MS never did it at all, would you then conclude that they're just out of touch? It seems like you would.

[iMat]

1. Too many different phones will run Win with too many different capabilities, which makes it hard to develop something for them. (Application so-and-so will run on your mobile, but you will not be able to do "this" and "this").
2. I am not a programmer, but I have heard that, if they want to be successful, they really need to look at their development tools and improve them dramatically. Not just pretty names...
3. A side note: people are so used to not purchasing software on their Windows PCs (at least in Europe the phenomenon is blatant) that they will have a hard time convincing people to do it.
4. It is still unclear how this WinMobile with Skymarket will integrate with the Zune strategy. iPhone platform has still the advantage (compared to all other platforms) that there is a strong iTunes integration. People can purchase music as well as apps. Will windows allow to purchase music or video besides apps or just apps? If music can be purchased: doesn't this take away Zune sales?


Microsoft seems to have two concurrent strategies in two overlapping markets: "do it all on your own" in the digital player market with the Zune and "take everyone on board" with the smartphone market.

Problem is that these two markets started merging with the iPhone and the trend will only get stronger. How will Microsoft, Android, Symbian respond to that trend? Interesting question.

Let's wait and see how Microsoft plans to solve that very important strategic issue in the future. I would discontinue the Zune alltogether and integrate the music business in the new WinMob platform. I would also create a very strong and clearly defined set of minimum requirements. Maybe in three "device types": no touchscreen, touchscreen... Something like that.

If Microsoft doesn't do these things then the whole idea is destined to be a failure (my opinion). The limits of the "software only" strategy that Microsoft so successfully pushed in the PC market are becoming evident. No other player is developing software only (RIM, Nokia, Apple they all do more than just software).

My strategy idea?
Leave the whole idea of an OS aside and create Office and other similar software for ALL available platforms, becoming the "de facto" standard for sharing documents. Create a strong "MobileMe" (LiveMesh) style repository and sync platform for ALL OSs and become the "de facto" standard for sharing...

But that is something a stubborn company like Microsoft will never do.


There, however, could be the key for success.
That is my opinion as a simple user without any particular knowledge of programming (but some knowledge on strategic thinking (another domain, not IT)).

Microsoft: do yourself a favour and think outside the box.

[drmoto]

Am I the only one who misread this as "Skynet"?