Microsoft must embrace 'grim option' of Windows cannibaliz

Computerworld - Microsoft must be ready to accept, as has Apple, that it's better to cannibalize one's own sales than to let others do it, a research analyst said today.
"This is going to be a tough shift for Microsoft, to ask them to now accept that the world is a very different place than it used to be," said Al Gillen of research firm IDC.

And those decisions may include a big and bitter pill for a company that, for better or worse, is identified by "Windows" as much as by its "Microsoft" nameplate.
To pull off the switcheroo from software to "devices and services," Microsoft may have to abandon the high margins of the former for the lower margins of devices.

Ballmer has never breathed such blasphemy. But he'd better, Gillen contended, even though it would be painful.
"On devices like tablets and phones, the operating system is a differentiator," said Gillen. "But customers have zero visibility as to the OS [on a device]." While people may recognize "iPhone" or "Galaxy," and refer to the devices by those names, most would be hard-pressed to name "iOS" or "Android" as the operating system.
"That'll be tough," Gillen said of Microsoft walking away from "Windows" as a self-expression of the company to focus on devices and services. "It's built so much brand equity around Windows."
Yet that's the path Microsoft should walk. "Microsoft will be a lot healthier and prepared to create and compete in new markets, rather than just defend its legacy markets, when the brand 'Microsoft' becomes more important [and] prominent at Redmond than the brand 'Windows,'" Gillen said.

Microsoft must embrace 'grim option' of Windows cannibalization - Computerworld

 

[phillipduran]

Sounds like "Windows" is becoming the red headed stepchild at Microsoft. Things change. Apple started as Apple Computer and when it was obvious to them that iTunes, iPods and other devices were going to drive the company on, they dropped Computer and became Apple Inc. Markets and products change. Change with them.

I don't see why cannibalization should be viewed as blasphemy. Just calling it blasphemy is legacy thinking.

 

[markweatherill]

Tomtom used to sell navigation software for use on PDAs.
Now it sells devices that run its navigation software.

What will people do when the next version of Android comes out? Upgrade the OS on their devices, or buy new devices..?

 

[labeeman]

[h=1]The long-range path to Microsoft's success: Kill the Windows brand[/h]

Windows may be the software that helped gain Microsoft gain worldwide dominance, but if the company wants to thrive in the future, the Windows brand may need to die. Microsoft would still build Windows operating systems, but would emphasize the Microsoft brand instead, and cut prices drastically for Windows licenses. So conclude several analysts, and they may well be right.

The long-range path to Microsoft's success: Kill the Windows brand | Computerworld Blogs

M$ needs to cut the price of the OS to compete with Google the OEMs cannot compete with an OS that is near free and does what the customer is looking for. Most customers do not need a full OS to do what they need on the net only content creators need a full OS and they are in the minority.

 

[jimbo45]

The long-range path to Microsoft's success: Kill the Windows brand

Windows may be the software that helped gain Microsoft gain worldwide dominance, but if the company wants to thrive in the future, the Windows brand may need to die. Microsoft would still build Windows operating systems, but would emphasize the Microsoft brand instead, and cut prices drastically for Windows licenses. So conclude several analysts, and they may well be right.

The long-range path to Microsoft's success: Kill the Windows brand | Computerworld Blogs

M$ needs to cut the price of the OS to compete with Google the OEMs cannot compete with an OS that is near free and does what the customer is looking for. Most customers do not need a full OS to do what they need on the net only content creators need a full OS and they are in the minority.

Hi there
Actually in ALL the issues that are perceived as problems with W8 / W8.1 the COST of it is rarely mentioned -- it really isn't the COST of Windows - most people get it with their PC anyway -- but the usefulness of the product is what matters - and there does seem to be evidence that a lot are NOT finding Windows 8 fit for purpose.

If it were about cost then why does FREE Linux with all sorts of FREE often quite decent applications (Libre Office for instance would suffice for a lot of people instead of Ms Office) still only capture a TINY segment of the market.

Cheers

jimbo

 

[labeeman]

On the mobile side Linux is eating M$ lunch and maybe there supper. The only way to not buy Windows is to put your kit together your self on the desktop side.

 

[jimbo45]

On the mobile side Linux is eating M$ lunch and maybe there supper. The only way to not buy Windows is to put your kit together your self on the desktop side.

Hi there

Windows was never about MOBILE apps anyway so that's not really an answer to my point about why hasn't Linux been embraced more on the Desktop -- it doesn't matter what your computer comes pre-installed with -- you can always install something else --as is adequately shown by the number of people removing W8 and installing W7 on their computers.

(And Mobile devices tend to use restricted (and restrictive) versions of Linux such as Android or Apple's Os which is also Linux based).

@Markweatherill I've had both an HTC and Samsung phone and had no trouble automatically upgrading Android - I don't think the Android update issue is a serious problem either -- apart from some of those rubbish apps on the google play store which fail after an OS upgrade -- that's the problem with Phone apps there's absolutely no QC on 99.9999% of Android apps. Windows phones might redress this balance a bit. Iphones I've always regarded as far too expensive and I just dislike Apple's policy of making everything possible proprietary -- even their USB connectors used to be special. !!!


Cheers
jimbo

 

[labeeman]

On the mobile side Linux is eating M$ lunch and maybe there supper. The only way to not buy Windows is to put your kit together your self on the desktop side.

Hi there

Windows was never about MOBILE apps anyway so that's not really an answer to my point about why hasn't Linux been embraced more on the Desktop -- it doesn't matter what your computer comes pre-installed with -- you can always install something else --as is adequately shown by the number of people removing W8 and installing W7 on their computers.

(And Mobile devices tend to use restricted (and restrictive) versions of Linux such as Android or Apple's Os which is also Linux based).

@Markweatherill I've had both an HTC and Samsung phone and had no trouble automatically upgrading Android - I don't think the Android update issue is a serious problem either -- apart from some of those rubbish apps on the google play store which fail after an OS upgrade -- that's the problem with Phone apps there's absolutely no QC on 99.9999% of Android apps. Windows phones might redress this balance a bit. Iphones I've always regarded as far too expensive and I just dislike Apple's policy of making everything possible proprietary -- even their USB connectors were special. !!!


Cheers
jimbo

To install Linux is not for the average user most do not know what a partition is, replacing Windows is much easier for the user.

 

[HippsieGypsie]

Sounds like "Windows" is becoming the red headed stepchild at Microsoft. Things change. Apple started as Apple Computer and when it was obvious to them that iTunes, iPods and other devices were going to drive the company on, they dropped Computer and became Apple Inc. Markets and products change. Change with them.
I don't see why cannibalization should be viewed as blasphemy. Just calling it blasphemy is legacy thinking.

You couldn't be more correct with what you wrote. :thumb: This is the reason for Microsoft "Reimagined" as a corporation.

I can imagine a conversation between Gates and his old buddy Paul Allen a few years or so ago :

"Paul, our old desktop PC market is flat lining. I think our OS sales on them will eventually dwindle and we just put out our best one ever! I don't think we'll be able to survive!"

"Yea, Bill, I see that! 7 is your best OS. What are you going to do?"

"I don't know. Any suggestions?"

Well, Bill, looks like the Steves are selling a lot of that iMe mobile stuff. They're making a killing! And have you seen the prices of that stuff?!! Those Google boys have gotten into it too. Perhaps you ought to get into that market."

"How do I do that, Paul?"

Well, Bill, I think you're going to have to write a mobile OS that's touch-centric for mobile devices."

"I tried that with the Windows Phone. It doesn't seem to be a big hit like the iPhone or Android! The mobile carriers seem to push those devices more."

"Well, Bill. Your Windows Phone is good, but it's lacking apps. Here's what you do. You're going to have to act something like a Chameleon and mimic your competition, but do one better. Use your Windows Phone as an advantage. Write a mobile OS to work along with it. That way users will become familiar no matter what device they're using. Open a store and start pushing apps. You may even want to get into the hardware business with a device. You were successful with the Xbox."

"Wow, Paul! That's a tall order. We're going to have to invest millions in that!"

Well, Bill, you're going to have to change to survive."

Ok, Paul. I'll present all this to the board to see what they think."

A few months ago:

"Well, Paul. The board thought it was a great idea! We did all you suggested. As you can see we got 8 out and improving it with 8.1, but some of the techies on WindowsEight Forums are complaining about it! They don't like it on their desktop PCs!"

Aw, Bill. Don't worry about those techies. They're but a minority. They're smart enough to make it look and act like 7 or they may stick with 7. Some may even go to a different OS. You may lose some. Remember, 7 Is your ace in the hole while you make the change. Businesses will most likely change to that anyway. Not to worry. It'll take time, but once the masses find out you wrote an OS to work across all devices along with the Windows Phone and they become familiar with it you'll have it made in the shade. That's one better than your competition is doing!"

 

[lehnerus2000]

You forgot to add, "... and they all lived happily ever after."

 

[HippsieGypsie]

You forgot to add, "... and they all lived happily ever after."

Lol! I guess I did.

 

[CountMike]

Portable devices will have to get much more powerful, versatile and imaginative to replace desktop any time soon. I can't see desktops disappearing any time soon. There were same talks about mainframes when PC showed up but there has never been more of them than now and are getting more and more powerful every day.

 

[HippsieGypsie]

The battery is the barrier for better development of mobile devices. Perhaps they'll make greater strides with this: Electric double-layer capacitor - Wikipedia, the free encyclopedia

No, desktop PCs will never disappear, but the point being is that market has flat lined and the mobile market is on a great rise. The introduction of the cell phone and laptops changed it all. So far as a phone, I started with a bag phone myself. Then a brick. Then a Nextel Direct Connect. Then a razor flip. Then finally a smartphone. Now we have all sorts of devices.

MS needed to do something. Albeit perhaps greatly late to the game, but they needed to do something. 8 and the Surfaces are their answer. A rather ingenious idea IMO. A touch-centric OS to run across multiple types of devices (including the desktop PC) in conjunction with the WF8. Although a bigger learning curve, it will eventually become familiar to the masses no matter which device is used. That's the goal here. No one else is trying to accomplish this. I think in the end it will pay off greatly for MS.