If You Can't Beat Em, Join Em!
Recently Microsoft has had a lot of trouble with multiple companies competing with them. Google, Apple, the list goes on. The reason why this is espessially problematic for Microsoft is because Microsoft defines has traditional defined the market itself with it's power and domination. This is precisely the reason why the govornment ruled against them in that trade monopoly suite years ago. Microsofts grip is slipping and they can no longer base their business on their own domination.
Following this logic Microsoft has two options.
1) An uphill battle to make perfect, competitive products, that lead to sales and regaining their status as the dominant player in the market...
OR
2) Join the competing companies by opening up the market to include these competing companies.
Microsoft did try the first recently against many competitors such as google and apple, and in many dimensions failed -- for example the iPod & iTunes, web search, and web based email (gmail vs. hotmail). Microsofts last hope to revive the market is with Vista and Microsoft Office 2007. As far as vista is concerned, Microsoft fumbled the ball with delays, and will probably not be able to use Vista as their revival tool as it will probably not provide the competative edge over Mac OS X. Microsoft Office 2007 while initially for Windows only, will eventually be for Mac OS X, and this is the only place regardless, where I see Microsoft may succeed.
Combining this will new releases of products for Apple & Macs (example: here), it seems Microsoft might be trying to salvage their business by turning it into a more universal software and hardware company. By universal I don't mean domination, I mean products for the entire market as oppoed to products just for their own defined market, because the truth is, the market is outgrowing Microsoft.
So to sum up this thread, instread of playing catch up to try to restore it's market dominance, we may be seeing a new Microsoft... one that caters to the new market to generate sales. Yes this might even out the market and decrease Windows marketshare, but this way Microsoft is still selling its products to the entire market.
Following this logic Microsoft has two options.
1) An uphill battle to make perfect, competitive products, that lead to sales and regaining their status as the dominant player in the market...
OR
2) Join the competing companies by opening up the market to include these competing companies.
Microsoft did try the first recently against many competitors such as google and apple, and in many dimensions failed -- for example the iPod & iTunes, web search, and web based email (gmail vs. hotmail). Microsofts last hope to revive the market is with Vista and Microsoft Office 2007. As far as vista is concerned, Microsoft fumbled the ball with delays, and will probably not be able to use Vista as their revival tool as it will probably not provide the competative edge over Mac OS X. Microsoft Office 2007 while initially for Windows only, will eventually be for Mac OS X, and this is the only place regardless, where I see Microsoft may succeed.
Combining this will new releases of products for Apple & Macs (example: here), it seems Microsoft might be trying to salvage their business by turning it into a more universal software and hardware company. By universal I don't mean domination, I mean products for the entire market as oppoed to products just for their own defined market, because the truth is, the market is outgrowing Microsoft.
So to sum up this thread, instread of playing catch up to try to restore it's market dominance, we may be seeing a new Microsoft... one that caters to the new market to generate sales. Yes this might even out the market and decrease Windows marketshare, but this way Microsoft is still selling its products to the entire market.
Comments
Originally posted by icfireball
What I'm suggesting is that M$ is loosing marketshare and dominance, and it seems that with that they are expanding their market to be less exclusive.
Microsoft has always been "less exclusive", after all they have been on the Mac platform since the late 80s havent they?
MS is out for the money, and will try every way possible to get money, and developing for Mac helps them in anti-trust cases when they do appear. I don't see that trend changing. At the same time they need to grow their buisness, and being the de-facto leader in OS's the only way to move is down in market share, basically they have seen as much market share growth in the OS buisness as they are going to see.
Sure the market may expand, but their market share will be continually challenged, and given some governments "challenge", or distaste to the MS monopoly (China comes to mind) thier growth potential could be deminishing. As a result of all this they are trying to fond new areas of growth and revenue, after all they are a publically traded company and need to show their stock holders a gowth in buisness over time. Thus the incursions into e-mail services, search, music, etc. Add into that the fact that the biggest potential growth areas for computer companies in the near future is probably in high-speed connection to the internet and online (multi-media) content delivery and you can see why Microsoft is making the moves that it is today.
They may be late to the game in some areas, but they have proven in the past that the best and first does not always win out over the richest, look at Windows, browsers, Xbox, and I'm sure parts of the market as well, just as Sony found out that the best and richest does not always win out over the least expensive (Beta vs VHS).
Originally posted by backtomac
I started a thread to discuss the future of MS but it died a quiet death. IMO, Balmer will be gone in one year and MS will be broken up.
I doubt that, the only way MS will be broken up is if the government does it and then, like it was to AT&T, it will probably benefit MS in the long-run.
Originally posted by backtomac
I started a thread to discuss the future of MS but it died a quiet death. IMO, Balmer will be gone in one year and MS will be broken up.
Bill Gates has way to much money for that to happen.
What has to be scary for ISV competing against MS is the amount of integration they are building into their apps. Office 2007 further extends this with the integration of Groove's collaboration features couple with Sharepoint. MS is well poised to keep any lead they have.
Sure they won't win every battle but I doubt they lose the battles they really want to win. Too many resources to much inertia.
Originally posted by icfireball
Bill Gates has way to much money for that to happen.
What makes you think he won't be in favor of a split? Maybe he takes control of a company that has the apps. Is the xbox part of the company that near and dear to his heart that he couldn't part with it? Time will tell. Another year of stock stagnation and investors will be anxious for change.
OneCare is a $50 per year service provided by Microsoft which includes Anti-Virus, Spyware, and firewall protection (in addition to backup utilities).
All I can think of is EXTORTION. It reminds me of the Sopranos; pay your protection to the same guys that will steal from you if you don't; they're stealing either way.
MS makes a buggy, flaw-ridden, unsecure OS and then has the balls to ask their customers to pay an additional subscription fee to use software to cover the flaws THEY created.
Sickening.
I hope the consumers are smart enough not to reward MS for this.
Originally posted by backtomac
I started a thread to discuss the future of MS but it died a quiet death. IMO, Balmer will be gone in one year and MS will be broken up.
Ballmer gone: likely. Broken up: not likely.
Originally posted by Sport73
The latest Microsoft offering: ONECARE, reinvigorates the ANGER I have toward the company. I love the XBox 360, and I think the games division is filled with people who actually care about making a better product; the rest of the company, however, lies somewhere between unscrupulous and evil.
OneCare is a $50 per year service provided by Microsoft which includes Anti-Virus, Spyware, and firewall protection (in addition to backup utilities).
All I can think of is EXTORTION. It reminds me of the Sopranos; pay your protection to the same guys that will steal from you if you don't; they're stealing either way.
MS makes a buggy, flaw-ridden, unsecure OS and then has the balls to ask their customers to pay an additional subscription fee to use software to cover the flaws THEY created.
Sickening.
I hope the consumers are smart enough not to reward MS for this.
I thought you might like this bit of news. Vista ultimate (rumored) to hit the shelves for the low, low price of $450 USD. Makes me want to go out and buy two.
Link http://arstechnica.com/journals/micr...2006/5/31/4164
Originally posted by Sport73
The latest Microsoft offering: ONECARE, reinvigorates the ANGER I have toward the company. I love the XBox 360, and I think the games division is filled with people who actually care about making a better product; the rest of the company, however, lies somewhere between unscrupulous and evil.
OneCare is a $50 per year service provided by Microsoft which includes Anti-Virus, Spyware, and firewall protection (in addition to backup utilities).
All I can think of is EXTORTION. It reminds me of the Sopranos; pay your protection to the same guys that will steal from you if you don't; they're stealing either way.
MS makes a buggy, flaw-ridden, unsecure OS and then has the balls to ask their customers to pay an additional subscription fee to use software to cover the flaws THEY created.
Sickening.
I hope the consumers are smart enough not to reward MS for this.
I second that last sentiment. It's too bad more people don't know that Bill wants a subscription model for everything. Your mob illustration sums it up nicely.
"In order to continue using your computer just pay us the low, low price of just 9.99 [cyo currency] per month!"
Originally posted by backtomac
I started a thread to discuss the future of MS but it died a quiet death. IMO, Balmer will be gone in one year and MS will be broken up.
MS will follow in the footsteps of IBM. They will go to the edge of extinction and then re-invent themselves. That's assuming that Mr. Gates and Mr. Balmer leave. If Gates and Balmer don't leave, MS will follow in the steps of the dinosaurs.
Originally posted by ZachPruckowski
As long as Microsoft stays over 80 or 85 percent market share, it's going to have the monopoly advantage. It doesn't matter if Vista is good, because everything runs on Microsoft right now. We can count the number of OS X exclusive programs on one hand, and the majority of Linux exclusive programs are clones or ripoffs of Windows programs. Microsoft has thousands of unique programs, and not just games. Until OS X or Linux has enough marketshare that developers don't discount them, Microsoft will continue to make money by the truckload.
You seem to forget the stranglehold IBM had over the computing industry until the early 80's. No tech monopoly is more than two failed major product launches from being reduced to just another bit player. MS had best mind it's business or they will largely give up their installed base advantage over the next 5 years.
I really did post mine before reading the previous ^^^ post, beat to the historical punch again!
Originally posted by Hiro
You seem to forget the stranglehold IBM had over the computing industry until the early 80's. No tech monopoly is more than two failed major product launches from being reduced to just another bit player. MS had best mind it's business or they will largely give up their installed base advantage over the next 5 years.
I really did post mine before reading the previous ^^^ post, beat to the historical punch again!
History doesn't apply so much here, since there has never been a company much like MS. In order to follow in IBMs footsteps, there would have to be a competitor offering a product that to the consumer is indistinguishable from MS Windows and runs windows software, or software indistinguishable from windows software. We will certainly see what happens, but I don't think two failed product launches are going to make everyone by macs -- let's face it, Linux doesn't cut it in the consumer segment. I don't care what you say about Suse this or that, it's simply not an elegant workspace, even when compared to Windows. The only thing that would kill MS is if the market changes while they're not watching. There are several ways this could manifest itself, but its hard to believe that MS won't at least be partly concerned.
Originally posted by ZachPruckowski
... is the day we know MS is dead.
The day we know MS is dead is when businesses stop buying Windows solutions. It doesn't matter if Dell sells Linux when nobody buys Linux powered Dells. Nobody cares about Dell -- if Dell stops doing a good job selling Windows computers then people will just go and buy HP windows computers, which is actually what's happening.