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Leaked Memo Gives Microsoft New Direction?
daria42 writes "An e-mail memo sent from Microsoft chairman Bill Gates to top execs at Microsoft has been leaked, revealing the executive wants his company to hurriedly change its focus and start to tap online advertising and services as new revenue sources. In the e-mail, Gates cites another, earlier memo, sent from MS exec Ray Ozzie, in which Ozzie also warns MS of the importance of focusing on the online medium. 'It's clear that if we fail to do so, our business as we know it is at risk,' Ozzie wrote. 'We must respond quickly and decisively. We should've been leaders with all our web properties in harnessing the potential of Ajax, following our pioneering work in OWA (Outlook Web Access),' he continued. 'We knew search would be important, but through Google's focus they've gained a tremendously strong position.'"
Well I was about to say "you dumb /. zealot, there's more to Microsoft than marketing, they make some software too"....
On second thoughts, based on their recent TV marketing campaign (the one where they show a bunch of children with aspirations including for things like music creation that Microsoft doesn't have any software offering for) which basically has no point whatsoever apart from an opportunity to say "Hi we're Microsoft, don't forget about us" and display a Microsoft logo I'm thinking you might be onto something. Go team!
29 mpg. YMMV.
That's a great strategy for a 100-million dollar company. Problem is, Microsoft is too HUGE to work with such simplifying strategies. Their business model relies on completely dominating ALL aspects of business desktop computing because that's where the biggest bang-for-the-buck is and they can still make billions there. Yeah, they may still be a lumbering monster making foolish mistakes, but they're going to continue to make billions because they are THE lumbering monster. This memo simply tells the lumbering monster to take the next left at the fork in the road instead of the next right. Nothing will change except what area of computing gets stomped next.
TDz.
Joy. Their "pioneering work" with outlook web access used to get me woken up in the middle of the night at least once a week to play with registry settings when the OWA server forgot how to talk to the mail servers.
Hopefully their foray into online advertising will be just as successful.
Those who can't do, teach. Those who can't teach either, do tech support.
When Microsoft decides to kick ass in an area, here's what they do, in a nutshell (according to Charles Ferguson):
In all of Microsoft's successful battles, it has used the same strategies. It undercuts its competitors in pricing, unifies previously separate markets, provides open but proprietary APIs, and bundles new functions into platforms it already dominates. Once it has acquired control over an industry standard, it invades neighboring markets.
http://www.thebricktestament.com/the_law/when_to_
Before they think about playing with ajax they may wish to fix the slow ass script interpreter in IE. Of course they are threatened as these new rich web applications neutralize the platform. This time however there is a new kid (firefox) in town that is gonna be hard to kill off like they did with netscape.
Got Code?
If you have seen QooxDoo then you probably thought the same thing I did when you saw it: "Microsoft should be freaking out about this!" Later when I learned that AJAX comes from discarded Microsoft Technology I realized that Microsoft had pulled a Xerox. Just as Xerox threw away the chance to be the leader of Desktop Software and gave away the GUI and Mouse... Microsoft handed Google a lead. The problem is, this is Microsoft not Xerox we're talking about. Will Google keep that lead?
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I guess when you are worth $40 billion you can tell Bill how to run his business.
Yes, because no rich people are stupid.
Bill knows this and knows what sells
No, he doesn't. That's exactly the point of all of this. If he knew what sells, he wouldn't have been blindsided by the success of Google's business model, and start yet another round of frantic catch-up to superior emergent technology from another company. He didn't know what Apple knew when he ripped off their graphical interface, he didn't know what Novell knew when he foisted AD snake oil in the face of Novell's (real) directory, and he doesn't know what the Linux community knows about the importance of a development and user community. He's hoping to get this with a marketing campaign with catch words like "passion" and hiring a few key open source people specifically to work on a Microsoft version of a Linux user community. Do you see a pattern here?
If he comes up with another couple of billion at the end of the day, it will be because he successfully stole other people's ideas, cheated, or broke the law - the same way he got the first 40.
Seriously folks, how is Google competitively threatening Microsoft?
How many people here have written checks to Google that they would have otherwise written to Microsoft?
Put another way, in what product categories could you purchase a Google offering instead of a Microsoft offering? Google doesn't offer an operating system product and doesn't offer an office productivity suite.
Recently, I purchased an Apple PowerBook instead of a Wintel laptop. And recently I purchased an Apple iPod instead of a Microsoft-backed MP3 player. Then and now, Google did not offer any competitive products in either of those categories. In other words, Apple was a competitor to Microsoft for my money, but Google was not.
While it may be true that Google is the most sophisticated billboard company on the planet, selling advertising has never been one of Microsoft's core lines of business. So, even if Google had 100% of the Internet billboard revenues and Microsoft had 0%, how would Google be threatening Microsoft?
There are those who believe that Google will someday undermine Microsoft's operating system and office productivity suite lines of business by offering subscription-based versions of each or even free versions of each. Well, how many people here want to pay subscription fees for software that is currently available in product form? Not many, I'd bet. Especially if using that subscription software also required storing your sensitive data on Google's servers. And as far as free software goes, Linux and OpenOffice are available for free now, yet at least within the U.S. neither is threatening Windows and MS Office today.
And regarding all of this talk about AJAX-based offerings, let's get real folks. Who here would really like to trade in their desktop apps for AJAX-based apps?
In my opinion, Microsoft has a locked in customer base and currently has Google trapped in a browser. As things stand now, Google is not a genuine competitive threat to Microsoft. The only way that Google will be able to become a genuine competitive threat is if Microsoft makes a serious mistake by heading down its proposed path of competing with Google on Google's browser-based terms.