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The Secret Failures of Microsoft | |
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| Time: 01:25 EST/06:25 GMT | News Source: *Linked Within Post* | Posted By: Kenneth van Surksum | ||
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Why Microsoft Can’t Compete With iTunes examined Microsoft’s past success in software development, and demonstrated why its past practices won’t be of any help in expanding into the consumer electronics and digital media download business. While the mainstream media is conspicuously quiet on Microsoft’s track record in consumer electronics, I’m more than willing to share! The Secret Failures of Microsoft | ||
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| #1 By 23275 (68.17.42.38) at 10/11/2006 4:54:39 AM |
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A superb propagandist - the not so subtle mix of a few facts with a lot of invective and a touch of color. Well schooled in the art, but not the science. That's the problem with revisionist history - particularly when the players are still alive. Fact from fiction is too easily revealed - hence why digg isn't digging the spin - too many living respondents.
Until Zune, Microsoft hasn't put a team on the field, much less in the game - it's written software for certain and worked to build outlets for it. Which brings to mind another very important point - Zune is not in a race with iPod - they are as different from one another as Windows is from Apple's OSX and anyone who would dare argue they are fundamentally the same has never seen, much less written a line of code. Zune is not just a new device, it is new in every sense of the word new. Not for what it can do now, but because at is core, it can be changed and not just by Microsoft - and that is why the PC dominates its market and the Zune will dominate its market and certainly why Xbox will dominate in a fused PC/console market boosted by common tools that are so easy to use, they are fun as compared to Sony's. Microsoft has continually empowered its partners - its developers and midget companies like my own - fiercely independent people that code through the night - just because the world is too noisy when the "death orb" burns in the daylight sky. Apple hasn't. It stands at the top of the stairs looking down at its customers while it controls who has access to them. Microsoft doesn't. It brings in the world - literally, and built an ecosystem agnostic to every form of exclusionary thinking that has plagued man since he took his first steps from a pool of primordial ooze. Apple hasn't. It can't even embrace Adobe as an equal and each of them face one another within a painful and destructive hate-hate relationship that will only end when Apple rips Adobe in the back. How is that good for consumers? I believe Apple has no real consumers. I believe it has a walking dead army of sycophantic glad-handers weighted down by way too much emotional carry on, or a market roughly equal to the number of people that need at least two forms of medication just to make it to the toothbrush in the morning. The iPod - people do not see Apple - it's a different brand to them. Disposable, really. Cont... |
| #2 By 23275 (68.17.42.38) at 10/11/2006 4:55:15 AM |
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While Apple has peddled so much bovine scatology at all of us with its "think different" branding statements, it has in reality empowered no one. It preaches to the converted while it sustains a chokehold on what might have been partners in a one-sided fight for the hearts and minds of consumers. It sustains itself on a steady diet of self-image shorts designed to make its narcissistic leadership feel better about their fashion choices.
All things did not derive from and they do not lead to, Apple. In fact, anyone who looks at PC hardware and doesn't see a kitchen appliance first, probably does need an Apple, and a couch and plenty of head candy just to build up the courage to cross the street. Microsoft's failures? Where? It is a company posting billions in profit. MSN is profitable and achieved that according to plan. Xbox is headed for the same - again, according to plan. You can bet there is a plan for Zune, too and it will include perhaps millions of developers and independent content producers. It isn't a Zen, it isn't a Sony, it's Microsoft Zune and like Windows and its ecosystem, Zen will include an army of millions - of partners and developers. Like all else Microsoft, those closest to customers and their unique needs will establish, build and sustain that relationship opposite the Zune. Steve'o had it right all along... "Developers... Developers.... Developers!" And Microsoft is, if nothing else, a group of developers FOR developers. That is why Microsoft dominates and why Apple failed. |
| #3 By 8556 (12.217.111.92) at 10/11/2006 9:38:50 AM |
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While they may not have the approval of all, Apple has exhibited very successful marketing skills with the iPod. lketchum's intellect and coding skills lead him to believe that MS will prevail with a superior product. Zune will begin sell in large quantities when iPod rechargable batteries die and can't easily be replaced. This will piss off many iPod fans unless two or three years of product life is what users want. This simple physical problem may be enough to swing consumers one at a time to Zune, which has a replaceable battery and many features that iPod users will learn to appreciate, but currently don't know about, or don't care about.
If MS lowered Zune's price to make it more attractive to new users this will accelerate a paradigm shift. For now iPod IS portable music as strongly as the Walkman WAS portable music in days past, in spite of the presence of superior competing products. This post was edited by bobsireno on Wednesday, October 11, 2006 at 09:42. |
| #4 By 13030 (198.22.121.110) at 10/11/2006 11:20:03 AM |
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#1: Microsoft has continually empowered its partners - its developers and midget companies...
This is MS's greatest strength. It's what made them an exceptional software company. #2: While Apple has peddled so much bovine scatology at all of us with its "think different" branding statements, it has in reality empowered no one. It preaches to the converted while it sustains a chokehold on what might have been partners in a one-sided fight for the hearts and minds of consumers. It sustains itself on a steady diet of self-image shorts designed to make its narcissistic leadership feel better about their fashion choices. No anger here. How are you able to see through this propaganda while so many iPod buyers can't? Are you the next digital messiah? #2: You can bet there is a plan for Zune. lol. Of course there is, it's the same one they used for Xbox. Search and replace ftw! #2: Microsoft's failures? Where? It is a company posting billions in profit. MSN is profitable and achieved that according to plan. Xbox is headed for the same - again, according to plan. Your view of success and the stock market's view of success are not fully aligned. Other than a very recent small increase in share price, it's been stagnant for several years. Now prior to that... wow! (I miss the excitement of the late 80s to mid 90s MS. I truly believe they were in their prime during those years.) While lketchum and I both appreciate the way MS has empowered us to do our work, I think we differ in our willingness to question our "master". |
| #5 By 23275 (68.17.42.38) at 10/11/2006 11:53:27 AM |
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#4, I can't and don't claim to.
I simply used the exact same style as the author of the arcticle - to prove a point - that it could be done. BUT with a difference. I used one fact that is difficult for anyone to refute, namely that Microsoft builds relationships with its partners and independent developers that it values and empowers equally. That behavior is what makes Microsoft so different and so successful - it grows markets by growing others. I sought to use the exact same style, while at the same time relying upon not just facts, or statistics, but truths. That was a choice and designed to deliver a much larger message - one I have shared here many times - that truth is an irresistable force, like water, it will always find a way. By posting this way, I wanted to redirect some of the invective back at what is so often an irrational Apple camp of followers that appear to have needs that extend well beyond technology and computing science. That larger message continues to be, "Drive your own car." The same message applies to all of us - regardless of platform choices. Somewhere out here is a guy, or gal that has within them the potential to unseat [if that is their goal], the largest of our industry's leaders - the message for them, or for Apple's camp, or any camp is the same - do that by building something that empowers others - a platform as diverse and poweful as Microsoft's. It doesn't matter one whit what anyone does so long as what they do focuses on their competition - what it does, did, or will do - they will always come in at best, second. |
| #6 By 7754 (216.160.8.41) at 10/11/2006 12:10:49 PM |
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Well... this skewed view of the "facts" becomes more clear when you notice the number of Yay! Apple articles on the site. I had to laugh at the graphic, though... if Ballmer could throw a chair like that with one arm, he's the man!
nor has its executives proven any business acumen in delivering what consumers want in hardware or creative entertainment I think how things are shaping up in the PS3 vs. Xbox 360 grudge match are looking quite in Microsoft's favor at this point. Maybe not a profit at this point, but they're in this for the long haul. When it comes to the Zune, however... based on what I've seen so far, I'm not optimistic of Microsoft's chances. Like lketchum suggests, though, we haven't seen it all, yet... and perhaps like the Xbox, it won't be until the 2nd generation where it really picks up steam. Don't expect Apple to stand still... although I'm curious if they'll fall under the "not invented here" curse. Apple fanatics will be giddy either way--giddy if they copy the Zune's features as a "take that, Microsoft," and giddy if they don't. No matter what, as long as Apple says X, X is perfect and pure and good to them (unless they know no outsiders are listening!). |
| #7 By 3653 (68.52.143.149) at 10/11/2006 12:15:29 PM |
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ch - "Other than a very recent small increase in share price, it's been stagnant for several years."
you must've missed out on the 11%* one-time dividend on 11/15/2004. That money flowed to shareholders at a nice dividend tax rate too. EDIT * $3.08 dividend at a closing price of $27.97. Take $3.08/$27.97 = 11% This post was edited by mooresa56 on Wednesday, October 11, 2006 at 12:17. |
| #8 By 8556 (12.217.111.92) at 10/11/2006 12:15:34 PM |
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lketchum: You are correct in that MS has always been great to work with. This point is, however, related to the channel and to partners. MS retail products have been a bit more spotty in their sucesses. Their success with Office was directly related to the original suites' price being at or below Word Perfect's price. Office took over. . The original Xbox was a non-starter compared to the PS2. With the early release of the Xbox 360 they showed that they were alert in the retail gaming arena. Zune, however, has a long way to go to break the hold of the masses that have iPods in the area of portable music players. Creative's player is prettty awesome also. With portable music players becoming commodities price (first) and features (second) will sway new buyers to pick up a Zune. Don't expect Zune to take off when its price is the same as an iPod with similar hardware features. Buzz may help Zune take off fast at some point. A significantly lower price will insure it happens.
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| #9 By 3653 (68.52.143.149) at 10/11/2006 12:20:53 PM |
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great comments to the whole group. Nice and intelligent.
bobsireno. Yes, zune has a long way to go. But I really don't see the journey as being any harder than it APPEARED to be for xbox back in 2001. Sony (and Nintendo, to some degree) had the market WRAPPED UP. But diligent and relentless progress, smart maneuvers (early x360 launch as you noted, along with nicely timed price cuts and bundles) and strong branding led to today's clearly-shifted market leadership ordering. |
| #10 By 8556 (12.217.111.92) at 10/11/2006 12:23:59 PM |
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mooresa56: Today MS stock is at a P/E ratio of 23, which I think is a bit high. Its price/cash flow is about $20, where the stock is at $27.
This is way off topic, but still fun. |
| #11 By 13030 (198.22.121.110) at 10/11/2006 12:24:27 PM |
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#7: you must've missed out on the 11%* one-time dividend on 11/15/2004.
I didn't miss it. I guess I just have higher standards than you. |
| #12 By 7754 (216.160.8.41) at 10/11/2006 12:24:35 PM |
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"Drive your own car."
Just like everyone else that drives their "own car." ;) And then, ridicule and look down your nose at everyone that doesn't, ridicule their cars, ridicule the mechanics that work on them and suggest they're the reason why such cars still exist, ridicule all the manufacturers that support the car industry, etc. etc. You are the enlightened one. Make sure everyone knows it. I believe it has a walking dead army of sycophantic glad-handers weighted down by way too much emotional carry on, or a market roughly equal to the number of people that need at least two forms of medication just to make it to the toothbrush in the morning. Wow... I wasn't going to go that far.... :P But definitely there are some emotional (and perhaps ego or inferiority-complex issues) for some people in that crowd, though. I think many people would like Apple more if it weren't for them, sadly. |
| #13 By 23275 (68.17.42.38) at 10/11/2006 12:32:19 PM |
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No anger here. How are you able to see through this propaganda while so many iPod buyers can't? Are you the next digital messiah?
Good question. The iPod is above all else, simple to use. Playsforsure, despite being really good, requires that people "think" and make decisions. A large part of the market does not want to - and I have personally made the mistake millions times by assuming that people do and that they want to think about "everything." Well, they don't and that is just as it should be. Some of us think too much, because learning all the time is fun and we're not afraid to be wrong most of the time. That sort of thing results in light bulbs, air planes and little companies that allow people to work, live and breathe more freely than if they were working at an IBM, or dare I say, a Microsoft. While lketchum and I both appreciate the way MS has empowered us to do our work, I think we differ in our willingness to question our "master". I'll have to think on this one. For many, it is about seeing what is good and ignoring what is irrelevant. I see the empowerment and obviate what I do not like with our own work - so what comes out the other end is a solution that addresses what our customers need. Not what Microsoft, or any other party might do. Emulation. I could not fund any form of empowerment close to what Microsoft did and does to this day. However, I could empower our people - let them loose to learn, experiment and develop their own ideas and strengths - then marry them up with customer needs. This I could and did do. When I first conceived of my company, most laughed dead in my face at projections, business plans and marketing strategy. I had to fund it myself - from my basement with more broken bits than one could easily count. By empowering young men, hungry to "get their hands on a server" who were still in college, I was able to build a unit of independent people driven by a desire to be their best. By insulating them from initial failures we built trust and loyalty. By sharing in the up-side we built lasting bonds within a lifestyle company that while small, had a huge common heart. By doing any work like it was our only work, we built success and insulation from changes in the market. As we grew, we built with our own, often inept hands, not one but two carrier class centers from what others described as rubble. By sharing what we built with many small businesses, we grew still more, by growing them with technologies that continually get better. We emulated what we saw work, and ignored as much ground clutter as possible. You asked, CH, and that is my answer. Zune will succeed and win. It will win partly because it will not require people to think too much about things they do not want to. That's one side of it. On the other it will succeed because people, like those that come here, will add a lot of value to it and they'll make some success for themselves in the process. |
| #14 By 3653 (68.52.143.149) at 10/11/2006 12:32:36 PM |
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ch - yeah, cause there's so many tech companies that SURVIVED the dot-com bust and managed to spit out that kind of cash to investors in the proceeding years.
higher standard? you mean like RedHat? A survivor with no gain since the dot-com bust. No 11% dividend either. Maybe you are referring to Sun? Which has lost ~50% of its value since the big bust. More loss, depending on when you consider the bubble to have burst. Maybe Novell, which has approximately 0% gain since the bust. Maybe IBM, which is DOWN about 25% in the same time frame as you consider MSFT to be "stagnant". Shall I continue? |
| #15 By 23275 (68.17.42.38) at 10/11/2006 12:51:21 PM |
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#14, Yeah, no kidding - it was rough sailing - we called them, "The years of retribution" and
everyone out here suffered years of devaluations because the button down crowd of all too young and eager MBA's bought into one irrational plan after another. I bet many people here that rode that out, cringe at the thought of seeing it happen again... |
| #16 By 13030 (198.22.121.110) at 10/11/2006 12:58:54 PM |
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#14: Shall I continue?
The new definition of success--not failing! lol |
| #17 By 23275 (68.17.42.38) at 10/11/2006 1:14:54 PM |
| #16, During the years of retribution, sadly, that is exactly how many of us defined success - we lived to fight another day without losing our passion for why we were doing it in the first place. No small feat, given how eager people were to balme anyone with a keyboard in front of them. So one has to tip a hat to Apple, Sun, and anyone else who stuck it out. |
| #18 By 7754 (216.160.8.41) at 10/11/2006 3:17:56 PM |
| lketchum--sorry, didn't mean to imply I was talking about you in #12 (as I re-read what I wrote). That's just my experience of dealing with the stereotypical Apple fan. Sometimes I kind of wonder if there would be serious Windows fans (beyond admiration and using as a tool) if it weren't for obnoxious Apple fanatics. |
| #19 By 23275 (68.17.42.38) at 10/11/2006 3:40:28 PM |
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#18, No worries - I knew what you meant.
You are exactly right about it. It's silly - and it is so common these days in so many areas. It's like, "hammer" "piano" "kiddie pool" - see, I can do it, too - meaning, make noise and little sense. That was the point of the nature of my post in response to the article. I wanted to elevate the discourse back up out of that at the same time, but one has to eventually respond - I mean, one may walk away, once, twice, three times - even 10, but after the 11th time, it's sometimes necessary to end it and swing back - flatten an idiot and try and salvage something decent from it. The question is, "why?" why do people do this? I'd like to see them expend their energy building something that speaks for them. We've tried to use many examples here - small as they are, they might work to elevate the exchange of ideas around the topics posted here. The people smart enough and devoted enough to work in this industry at any level deserve at least that - especially from companies like Apple. I mean they really need to merge with Sun, already - just get on with it and move on down the JBOSS road and use OSX as a client - make a fight of it - eat some red meat and hang the trans-fatty acids. But noooo... they seem to be content to keep on keep'in on with the dribble. If I could do one thing at, or for Apple, it would be to make them turn outward - away from their base and have them look at the rest of us - convince me why I should develop for that platform - convince me that the 98% of us that do not use a MAC matter as much or more than the 2% that always will. I'd open the iPod so wide and I'd lay off trying to trademark the word, "pod" - I'd Zune the crud out of it and by action, invite the planet to find relevance in the Apple brand. Instead, I'll be reduced to finding their ads interesting, entertaining and a complete joke and monumental waste of time. If I could say anything to their base, I'd tell them that it is perfectly okay to be wrong 99% of the time - the rest of us sure are comfortable with it - so long as we don't like it and work to do better the next time. |
| #20 By 3653 (68.52.143.149) at 10/12/2006 1:27:52 AM |
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"the rest of us sure are comfortable with it - so long as we don't like it and work to do better the next time. "
here here! |
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