Tag: windows

  • Windows Phone 8 launch

    Windows Phone 8 launch

    This week’s launch of Window 8 Phone is part of Microsoft’s strategy to remain relevant in a world where personal computers and laptops are being left behind by smartphones and tablet computers.

    In many ways, the tablet and mobile market is an opportunity lost by Microsoft – for a decade the market had been desperate for decent tablet computers and smartphones. The Windows tablet and PDA product in the early 2000s ran on was expensive, heavy and clunky hardware that discouraged even the most determined user.

    The failure of Microsoft and their partners cost the company dearly when the iPhone and then the iPad stole the market from them. Today Apple’s iPad owns the tablet computer market while the iPhone on its own makes more money than all of Microsoft’s products put together.

    Microsoft’s response to this threat to their core business has been slow and wasn’t helped by the company Windows Vista disaster, a mis-step that broke the PC upgrade cycle.

    Fortunately Windows 7 put Microsoft’s core business back on an even keel as they contemplated their customers’ move away from the personal computer.

    The strategy now for Microsoft with Windows 8 is the “run anywhere” philosophy where a document created on your tablet computer can be accessed just as easily on your PC or on a smartphone. This relies on a cloud computing service and the same operating system running on all devices – interestingly this “hybrid cloud” idea underpins Apple’s iCloud as well.

    Being able to run documents across all Windows devices was a key part of Microsoft’s launch today with a demonstration of how Office 2013 files can be accessed.

    To get the full features of Windows Phone though you’ll have to be running Windows 8 AND Microsoft 2013 on your tablet and personal computer.

    Vendor lock-in isn’t surprising as this strategy lies at the heart of Microsoft’s business model – the problem is the market is moving away from the Windows platform and many of the devices, and people, Windows Phone users will be communicating with are using Android or Apple systems so many of the gee-whiz functions are lost.

    One of the functions displayed is Rooms, which allows like minded people to share various features. As the Microsoft media release says;

    Sometimes you want to share and chat with one group, not your entire social network. Rooms allow you to create private groups of people who have Windows Phone 8 — like your family members best friends or fantasy football league — and easily connect with just them. Chat, share calendars, shopping lists or photos in an ongoing conversation where only those invited can join in. You can share some aspects of Rooms with friends and family on other smartphones as well.

    The problem is that when your family members, best friends or fantasy football league competitors aren’t using Windows 8, the Rooms function becomes little more than a glorified shared calendar – Dropbox and Google Docs provide more features.

    For the family user Windows Phone 8 does have unique feature in allowing a children friendly profile called Kids Corner, where parents can quarantine the little ones from the main address books and features while allowing only certain apps to run. Unfortunately there’s only one Kids Corner so the little darlings will have to fight it out over the Angry Birds account.

    That Angry Birds app is the harbinger of where Microsoft’s multiple screen strategy will either succeed or die in the ditch as it will be the available applications which will determine whether customers will buy the device over the iPhone or Android competitors.

    Looking at the Samsung, HTC and Nokia phones that will be released running Windows Phone next month, all seem to be decent pieces of hardware although the Nokia 920 seems to be a hefty unit compared to the competition. Overall though all three phones seem to be decent competitors with their own strengths compared to the Android and Apple opposition.

    The success of Windows Phone will define Microsoft’s place in the post-PC world, now its up to the company and its partners to sell them.

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  • Can Microsoft beat the PC marketplace’s structural decline?

    Can Microsoft beat the PC marketplace’s structural decline?

    In New York on Thursday Microsoft will have a marathon launch of their Windows 8 system and the futures of many of their hardware partners lie on the success of the new system.

    For Microsoft, Windows 8 could be the last throw of the dice for the desktop operating system that has sustained the company for thirty years.

    The figures aren’t good for Windows as Microsoft’s 2012 profit and loss shows, here are the figures broken out by operating unit segment from the company’s annual report.

    Year Ended June 30, 2012 2011 2010
    Revenue  bn $  bn $  bn $
    Windows & Windows Live Division 18,818 18,787 18,789
    Operating Income (Loss)
    Windows & Windows Live Division 11,908 11,971 12,193

    The core Windows & Windows Live Division has stagnant revenues and a slowly declining profit margin. We’ll leave the huge losses in the online division for a future post.

    Since the days of the first MS-DOS deal with IBM, Microsoft’s core business has been the licensing of operating systems to PC manufacturers and now that model is in trouble.

    For instance Dell had an 8% drop in revenue resulting in a worrying 22% drop in operating profit, their PC dominated consumer division suffered a fat 22% drop in sales and recorded a miniscule .5% profit margin. Similarly Asus had 25% drop in sales to record a 2011 loss.

    The pain being suffered by PC manufacturers’ sales and margins will almost certainly be shared by Microsoft as companies like Dell, HP and Asus simply can’t afford to pay the licensing fees which have sustained the Redmond business model for so long.

    Microsoft and their partners hope – or pray – that the PC decline is a temporary hiccup in computer sales similar to the traditional lull seen before the release of a new system.

    History’s not on their side with research company Asymco expecting sales of tablet computers to overtake PCs sometime in late 2013.

    This is not a cyclical trend – the PC industry is in structural decline; the traditional Windows upgrade cycle is dead and Google are running interference with their Chromebook networked laptops.

    Moving onto tablets and smartphones in this light makes sense for Microsoft and given the PC manufacturers have failed dismally to deliver decent tablet computers or phones over the last 15 years so it’s understandable the software giant wanted to develop their own hardware or team up with a struggling company like Nokia.

    The declining margins in personal computers means we’re seeing the end of the Windows desktop ecosystem. With the rise of the web and cloud computing the type of operating system we use is like arguing between Toyota and BMW drivers; one might be more prestigious but both will get you where you want to go.

    For Microsoft the challenge is to replace those Windows licensing rivers of gold with similar revenue streams through their phone and tablet products but with Apple and Google already dominating those fields, is it too late for the company that dominated personal computing? The next six months will tell us.

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  • The risks of tablet pricing

    The risks of tablet pricing

    We often forget that tablet computers weren’t invented by Steve Jobs. For a decade before Microsoft and their partners like Toshiba or Dell had been selling ‘slate-like’ devices.

    The market wanted tablet computers, particularly business users in sectors like logistics and health care, but the Windows products on offer were heavy, clunky and expensive.

    It took the iPad to deliver what the market wanted —  a lightweight, easy to use and reasonably priced tablet computer. This was the reason Apple were so successful.

    With Asus’ pricing announcement of their new range of Windows 8 tablets it appears the mistakes made by the PC industry with tablet computers ten years ago are going to be repeated.

    The fundamental thing that will kill Windows tablets is cost and these tablets are too expensive compared to the Apple and Android competitors.

    While having Windows compatibility and the opportunity to save to USB drives or corporate networks is handy in a tablet, there seems to be little reason for customers not to buy a mid-priced laptop.

    It appears though these price points are part of Microsoft’s strategy. Steve Ballmer hinted at this in his Seattle Times interview last weekend.

    Q: The iPad has the largest share of the tablet market, but its soft spot, it seems to me, is the price.With the Surface, are you planning to compete with the iPad on price or on features?

    A: We haven’t announced pricing. I think we have a very competitive product from the features perspective. …

    I think most people would tell you that the iPad is not a superexpensive device. … (When) people offer cheaper, they do less. They look less good, they’re chintzier, they’re cheaper.

    If you say to somebody, would you use one of the 7-inch tablets, would somebody ever use a Kindle (Kindle Fire, $199) to do their homework? The answer is no; you never would. It’s just not a good enough product. It doesn’t mean you might not read a book on it….

    If you look at the bulk of the PC market, it would run between, say, probably $300 to about $700 or $800. That’s the sweet spot.

    The problem is the tablet computer market isn’t the PC market and those price points have changed.

    What’s more, the features that attract users to tablet devices or smartphones are different to that of PCs.

    Basically PCs, tablets and smartphones are different products.

    Applying PC pricing structures, or marketing models, to the tablet market is a risky strategy.

    Steve Jobs didn’t do this and Apple succeeded with the iPhone and iPad without damaging their Mac sales, whether Microsoft can pull of a similar achievement with the opposite strategy remains to be seen.

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  • Hands on with Microsoft Office 365 and a Windows 8 tablet

    Hands on with Microsoft Office 365 and a Windows 8 tablet

    One of the key planks of Microsoft meeting the challenge presented by online services like Google Docs is their cloud based Office365.

    The success of Office365 is important as Microsoft Office makes up a large chunk of the 24 billion dollars in sales, and $15 billion dollar profit, the company books from its Business Division.

    Coupled to this threat is also the move from personal computers to smartphones and tablet devices which Microsoft hope to meet with their Window 8 operating system, Surface tablet computer and Windows Phone.

    As part of the Australian TechEd 2012 Conference, Microsoft gave a hands on preview of the Office 365 running on a Windows 8 tablet which was a good opportunity to see how both software packages worked.

    Office 365

    Office365 is very similar in layout and function to Office 2010 – if you’re using earlier versions of Office, particularly Office 2003, then you may find the ribbon bar and changed menus hard to navigate at first.

    Integration with Microsoft’s Skydrive is good and seamless. A nice feature in this is how a user can setup multiple Skydrive accounts as separate drives. How well this works while on the road will have to be tested away from a controlled environment like the one at the TechEd meeting rooms.

    The touch screen functions are fairly hard to get used to and they don’t work particularly well with fat fingers which Microsoft attempts to overcome with providing a stylus.

    Another complexity is that the menus and touch screen functions aren’t consistent across applications. The handy ‘pinch’ gesture to zoom on Windows 8 doesn’t work on the Office applications on the tablet which is a shame and is also a bit irritating for power users.

    Office365 adds a range of other features like web publishing, video editing and IT management tools but the hands on demo didn’t give enough time to properly evaluate these aspects.

    Window 8

    The first thing that jumps out with Windows 8 is the basic interface isn’t intuitive. The tile based system is difficult to use if you’re used to a keyboard and mouse or mobile systems like Apple iOS and Android.

    Another worry is the Windows 8 interface – or “Metro” as it was known – uses different applications to the desktop version. The problem with this was illustrated when trying to run a video on the device as the Internet Explorer in the Windows 8 interface was a different version to that on the desktop so videos would run in one mode, but not on the other.

    This confusion between software versions is a recipe for user confusion, lost data and possibly even a security weakness. It’s surprising that having effectively two operating systems running on the device was considered to be a good idea.

    Looking under the hood at the Control Panel, the Windows NT heritage of Window 8 becomes apparent. Anybody used to tinkering with the settings on Windows XP, Vista or 7 systems will have no trouble finding their way around the new version.

    Overall the performance of Windows 8 was impressive. It’s quite fast and responsive and this is something that Microsoft’s demonstrators are proud of.

    Tablet blues

    The surprising thing was the Windows 8 system was running on a Samsung tablet with still no ship date for the Windows hardware.

    The Windows 8 about screen on a Samsung Tablet

    With Christmas approaching, Microsoft are running out of time to compete in the tablet market and it seriously raises questions on whether the Surface tablets were prematurely announced.

    The experience with Office365 on the Windows Tablet was satisfactory although the demonstration showed there’s some barriers to adopting tablets as the main work computers.

    Office 365 shows the strengths Microsoft have in the market, if Microsoft can get their tablet strategy right then they have a good product to compete with Apple’s iOS and Google’s Android.

    Time will tell if they or their hardware partners can get products that customers want onto the market.

    Paul travelled to TechEd and stayed at the Gold Coast as a guest of Microsoft Australia.

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  • I’m not paid to have doubts

    I’m not paid to have doubts

    The Seattle Times has an interesting interview with Microsoft CEO Steve Ballmer this weekend where he discusses what has been one of the biggest years ever for his company.

    Midway through the Seattle Times story there’s a telling exchange.

    Q: What is Microsoft’s plan if Windows 8 doesn’t take off?

    A: You know, Windows 8 is going to do great.

    Q: No doubt at all?

    A: I’m not paid to have doubts. (Laughs.) I don’t have any. It’s a fantastic product. …

    There is no plan B – Windows Phone is running late and their hardware partner Nokia is looking more foolish every day. Last week not only did they flub the launch of their latest phone, but they also managed to alienate the world’s tech media at the event.

    It’s nice not to have doubts, but from outside the comfortable corporate headquarters Microsoft looks like they are struggling in this space.

    Steve Ballmer might be more credible if he did admit to doubts and at least hint there is a plan B in their smartphone strategy.

    Companies need leaders with doubts – doubts about their strategy, about their managers, about the economy and – most importantly – about their own infallibility.

    One of the worst aspects of 1980s management ideology was the myth of the CEO superstar. Too many good businesses have been destroyed, and too much damage done to the global economy, by senior executives who have believed in their own infallibility.

    Some doubts might help a business, particularly when that company is struggling with some serious threats.

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