It seems to me that one way to analyze where Microsoft is today is by looking at where it isn’t. Microsoft has a bunch of “enemies,” if you will. The 3 major competitors (apart from itself) that first come to mind are Apple, Google and Oracle. From my perspective, it seems that all these companies managed to fulfill a want in the eye of the consumer, and masked it as a need by comparing it to the inefficiencies of Microsoft. Apple offers design innovation and user-friendly technology. During it’s rebirth, it positioned itself as the computer for the digital artist, making itself the go to system for people in advertising, sales, marketing, film, television, art, music etc. With the right, cutting edge, hip and loyal clientele, the image of the company changed. Mac, the iPod and the iPhone are revolutionary not only for the technology they offer and how they serve as a highway of information (because, at the end of the day, that’s what they really are), but also because they allow the consumer to assume an image by simply owning the product. Similarly, Google has positioned itself as this hip, young, encyclopedic appendix that somehow provides products to its users way before we even realized we wanted them. I use google for everything from email, maps, photos (ha, yes, you can’t see my photos on facebook but you can see them on Picasa…why I seem to trust them more is a mystery), rss reader, work groups, and calendar. When google comes up with their 4Square, I will likely actually try it out as well (I switched from AIM to Gchat seamlessly so the argument that people don’t like switching programs is still yet to conclude in my mind). And, finally, Oracle seems to be the way of the future. I don’t know enough about Oracle and the products but I do know that they are a force with which to be reckoned both in software and in their vision for information storage and, maybe more importantly, information sharing and distribution. With regards to Oracle, cloudware appears to be the thing on which to focus (of course, don’t stare too long…haha, get it? Clouds? Sun? Don’t stare? Not funny? OK…). Clearly a useful tool for businesses, if marketed correctly, cloudware will be what allows us to maximize our autonomy and mobility, reducing friction and increasing efficiency. The key here is how it helps laymen like me (and not just big companies). Like Apple and Google, Oracle will have to make this useful for the people in order to make it succeed and, thus far, it looks to be going in that direction.
Of course, this isn’t about the above 3 competitors. But what do they tell us about why can’t Microsoft keep up? Or, are they keeping up and I’m the idiot who just can’t tell? It’s hard to say from my perspective. It seems to me that Microsoft just isn’t as interesting any more. The value they bring to the market is the same as the value they brought before. Unfortunately, other companies have managed to bring more new value in the last few years, pushing Microsoft from the helm of innovation into a world of predictability. There are the key products upon which we still rely (and will continue to rely for a few more years) but the new products and services they offer are never eye-catching (I’ve never once stopped to look at Bing). I wanted to say that Microsoft lacks interesting innovation, but then I saw this TED talk (because I love all the TED talks) and it has definitely shown me that Microsoft is actually very innovative and just really bad at letting people know:
Blaise Aguera y Arcas demos augmented-reality maps | Video on TED.com
Their inability to communicate their interesting and innovative strides in technology, coupled with the security issues encountered by users has led to a loss of trust in the consumer and, therefore, a shift in loyalty from good ol’ Microsoft to any of the above competitors.
Another interesting project Microsoft is taking on is palm reading. I read in Wired Magazine that Microsoft is shifting into the world of predicting the future by monitoring the actions and habits of individuals. Thus far, this doesn’t seem all that unusual (google and amazon are only two examples that successfully target their market by doing the same thing). Instead of using the information to further sales, however, they will use it to predict the future. Exactly what they plan on doing with the predictions seems a bit unclear. Although, the benefit of such information and statistics is, obviously, extremely useful and a very powerful source to control. It will be interesting to see exactly where this new business approach will lead and what it will do to the Microsoft business model. I have a feeling that Microsoft will stick around, just not as we know it today.
So, Wot’s…uh the deal, Microsoft? Pink Floyd asked this pertinent and ever relevant question on their Obscured by Clouds album in 1972 which I, in turn, would like to pose to Gates. There’s a lot of pressure if you’re the “man on the outside looking in” trying to “turn my land into gold” as you are “growing old,” and you “try to keep up with the turning of the wheel. Mile after mile, stone after stone…you’re on your own.” And can Microsoft maintain their position on the outside? Or do they fall in and become the “man on the inside looking out” shouting “what’s the news and where you been?” since “there’s no wind left in [their] soul and [they’ve] grown old?” Well, I’m pretty sure that the song is not about Microsoft. In my opinion, they were their own competitors and isolated themselves in a way in which now it seems the albatross may be on its way and they are doomed to drown their dinosaur ship. There are lifeboats on board, however. So which one will they take? And will it save them? It’ll be interesting to watch….
Loved the Pink Floyd bit!
ReplyDeleteFits perfectly :)