“Anyone with any computer experience knows this OS is a dud, a red herring in drag. Microsoft however seems to be betting that their clients will not look too closely”
Sigmund Freud and the sinking of the Titanic
Although Microsoft makes lots of money in a lot of different ways, their core business is built upon its ability to license the Windows OS, everything stems from that. Without that solid base stability its structure will begin to collapse. The same fact holds true for Microsoft’s newly designated nemesis, Google, whose existence is built on its search engine business. Below I layout what I see as Microsoft’s survival strategy .
Surprisingly this is not the first time Microsoft was caught asleep at the wheel. In an earlier decade they were caught off guard by the Internet, they survived that crisis by putting their nose to the grindstone and some say by employing the use of “questionable” tactics.
Can they do it again?
This time around there is no John Scully around to bribe.
It seems that after Steve Ballmer’s now famous dissing of Apple’s new “overpriced keyboard less” smart phone and their joint venture with Nokia, Microsoft came to see the light.
Sigmund would have a field day studying the psychology of the salesmen and its need to subconsciously create crisis for the motivation needed to do battle.
Sadly that’s another topic for another post.
When it rains it pours:
Unfortunate timing puts Microsoft in an extremely vulnerable position.The PC enterprise business,delayed by the recession is just now getting around to replacing its aging fleet of Windows XP & 7 desktops. This time around the playing field has shifted. The rapid emergence of Apple and even Google as a threat to their core business has created a crisis within Microsoft.
For the very first time in the history of Microsoft they do not have a viable operating system to sell to their clients. Another fact we already know is that at least half of those trucks will be replaced by tablets.
All dressed up and waiting for the puck.
Microsoft to their credit working under pressure has moved on several fronts in their defense. In the hope that if everything goes their way, they will be at the goal waiting for the puck.
They have come up with a three prong strategy they hope will keep their enterprise business intact while they spoon feed them their new Windows 8 operating system.At the same time they hope to replace their aging desktop trucks with their own tablet instead of the iPad.
(1)Provide an operating system that today’s business owners will see as safe way to upgrade, keeping their legacy software and dipping their toe in a new modern OS. To this end the are releasing Windows/ Metro
(2)They have made bold and smart moves into the mobile business by partnering with Nokia and going with an Apple like walled garden. Taking this OS vertical to provide consumers with content, games and music.
(3) Attack Google’s flank by buying into search via Bing while forming a strong alliance with Facebook to deny Google advertisers, forcing Google to take its eye off of its core business while it spreads into unknown territory
Timing is everything
With its competitors having two-year led Microsoft needs time to get up to speed. Who knows, if the recession continues, things might just work out for the boys from Redmond.
One thing for sure, it is Microsoft’s most critical year since the beginning of their business.
Will they be able to pull it off. Let’s watch, this could be the fight of the decade.
A red herring in drag
Anyone with any computer experience knows this OS is a dud. Microsoft however seems to be betting that their clients will not look too closely. I for one believe Microsoft has made a critical mistake and under estimated their base who I believe are more sophisticated regarding technology and will be looking for a more elegant solution.
Google is being attacked by both sides, Eric Schmidt should have thought things through before messing with Jobs. He would have kept a strategic friend in Apple, instead they now are waging war on two fronts. I believe eventually Google will buckle and retreat from Android , ceding the battle field back to the old warriors Apple & Microsoft.
Apple stands on top of the hill , rightfully earned.
This post contains thoughts culled from two earlier ones and represents only a small part of the larger story regarding Microsoft’s Grand Strategy to remain relevant. Read on for a bigger picture.
Microsoft & HP to build the Next PC, One hundred years since the sinking of the Titanic , Future Headline , Read it Now
Microsoft takes the fight to Google in “Requiem for a Heavyweight” at a phone store near you