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Microsoft Goes Head-to-Head With IBM

conq writes "BusinessWeek has a piece on Microsoft's latest announcements that it is going after large-business computing, a realm that IBM currently has a stronghold on." From the article: "In both cases, the company has fashioned 'enterprise' versions of the products with additional security and collaboration-enabling features for sale to large businesses. Microsoft has spent $20 billion over the past three years on these upgrades, and Ballmer says it will spend $500 million over the next year marketing them to corporations. 'We're unlocking the next wave of growth for Microsoft,' Ballmer predicted during a press conference after his speech." We've previously discussed Microsoft's plans for IBM.

33 of 274 comments (clear)

  1. But... by Locke2005 · · Score: 5, Funny

    Wouldn't that require an operating system that didn't suck?

    --
    I've abandoned my search for truth; now I'm just looking for some useful delusions.
    1. Re:But... by Pantero+Blanco · · Score: 4, Insightful

      Not exactly. It just requires one that's "good enough for the task", that more technicians have been trained on, and that has enough mindshare for Whoever's In Charge to jump at it.

      Microsoft's strategy has never been to be the best, or even to "not suck". They fight for hearts and minds.

      Remember the line from Pirates of Silicon Valley?
      Jobs: "We have better stuff!"
      Gates: "It doesn't matter."

    2. Re:But... by Tibor+the+Hun · · Score: 4, Funny

      Well, what if they install Windows on a vacuum cleaner, and use that as an enterprise server?

      --
      If you don't know what AltaVista is (was), get off my lawn.
    3. Re:But... by Billly+Gates · · Score: 5, Funny

      BUt would the vacuum cleaner no longer "suck" if it ran windows?

    4. Re:But... by _Sprocket_ · · Score: 4, Informative

      From http://www.imdb.com/title/tt0168122/quotes:

      Steve Jobs: We're better than you are! We have better stuff.
      Bill Gates: You don't get it, Steve. That doesn't matter!

  2. Johnny Come Lately by ackthpt · · Score: 5, Insightful

    Ok, they threw $20 billion at it and will throw another $500 million at it. But what it is is a mature market, wherein customers have grown weary of the old business model of turning over buckets of money for software and support. Many big buyers are moving along on old, unsupported versions of Office, which they are loathe to upgrade for no reason other than to buy a pile of features they're not convinced they need. Usually the push for upgrades comes from some brash executive who thinks by the seat of his/her pants that it's about time they got into the 21st century (whatever the hell that is really supposed to mean) just before they, themselves pack it in and move along to their next rung up the ladder (with a new line for their resumee: Modernized infrastructure)

    While I was a bit of an IBM hater, back in the 80's, for the attitude their sales people conveyed, I do believe IBM is now a far better company, much wiser and behind the winning hand -- Open Source. Their time in the trenches will serve them well as a the cocky crew from Redmond attempt to strut in like they own the house.

    Considering Microsoft's track record, particularly in the press with all the vulnerabilites, I think they've got a tough sell. Some will be low-hanging fruit, easy to pluck, but others will be much harder to reach. It will be interesting to see how much further.

    Personally, I'm already advising our shop to dump Microsoft. We simply can't afford them anymore.

    --

    A feeling of having made the same mistake before: Deja Foobar
  3. Re:I should have gone into advertising... by shmlco · · Score: 4, Insightful

    $20 Billion bozo. With a "B". $20 billion, $500 million.

    --
    Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
  4. Giant Heads by Doc+Ruby · · Score: 4, Insightful

    IBM backed the "Netscape" antitrust case the government won against Microsoft in the 1990s. That decision didn't protect consumers from Microsoft's monopoly abuse so well, but it did protect IBM's Lotus/Notes product line from Outlook/Exchange taking over the Internet. Let's see how well either of them fare, without a Republican government to protect Microsoft and with a real competition between them keeping them too busy to crush the smaller players entering the groupware market, especially on Linux servers. Interoperability is the most likely winner in a multilateral vendor competition.

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    --
    make install -not war

    1. Re:Giant Heads by Doc+Ruby · · Score: 5, Informative

      I watched as all the various plays were taken by the various players through the years. I'm biased because I know how Microsoft buys media and politicians to protect its anticompetitive monopoly. You're the one in fantasyland, who thinks the competitors just didn't compete well enough in the market.

      Novell's NetWare was the #1 and #3 "PC Network OS", in two different versions, when Microsoft's late-1990s NT onslaught targeted it. IT media routinely compared the marketshare of either one or the other Novell versions to the combined marketshare of all Microsoft OS products, including DOS. Just one example of how IT buyers were sold lies to make the monopoly look like the only choice. While NetWare was a superior product, even more interoperable among MS OS products than the MS products were with each other.

      Earlier, IBM's OS/2 suffered even more serious dirty tricks, bound by their "partnership" with MS in OS/2. No one serious believed that Windows was superior technology to OS/2.

      Netscape was defeated by Microsoft's monopoly abuse, just as proven in the monopoly case against Microsoft. A travesty of a defense that should have seen Gates and his lying execs do jailtime for perjury, evidence tampering, and contempt of court. But despite being declared an abusive monopoly, in violation of their bundling consent agreement with the court, Microsoft has continued to bundle products with its monopoly package anticompetitively. They still get in some trouble, even today, for such practices. But once Bush took over the White House and Justice Department from Clinton, his Republican government let go of the solution to that problem. A clear case of political favoritism. No wonder, because the Republican Party is the Monopoly Party.

      All of these facts are clear history. It is you who is denying them with your false revisions and fantasy world. And it is you, a consumer in the market, who is hurt by them. Unless you're a Microsoft employee or shareholder, in which case you're shortsighted in addition to amnesiac.

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      --
      make install -not war

    2. Re:Giant Heads by qkslvrwolf · · Score: 4, Insightful

      Even though it never gets discussed, their bundling isn't really what makes them anti competitive. Its an annoyance, but one that is easily overcome. (How many clicks does it take to install software? 3?) The real problem is the windows tax. Windows is automatically loaded on every computer that you buy, even if you get linux put on it. And you pay for it, even if your computer ships with linux, unless you're lucky enough to buy a computer from a OEM that doesn't even sell windows at all. If they sell windows, you pay for windows. That is how windows won, and that is why they're anti-competitve to this day. I mean, wrong is it that even if you buy anohter OS, you still pay for windows?

      --
      Or have you only comfort...that stealthy thing that enters the house and guest then becomes host, then master - KG
  5. Not Quite Yet by eno2001 · · Score: 5, Interesting

    This won't work until Microsoft has completely changed Windows to be Unix-like. They are working on it. With each release, they learn their lessons and add backwards implementations of Unix innovations. As long as they continue down that path, they might someday be able to take over the big iron market. But they're not quite there yet.

    --
    -"...bad old ideas look confusingly fresh when they are packaged as technology" - Jaron Lanier (Digital Maoism on Edge.o
    1. Re:Not Quite Yet by Frumious+Wombat · · Score: 5, Insightful

      Not to pick, but being Unix-centric is not necessary. IBM's biggest systems run variations of the (old,proven,legacy,venerable) Z/OS http://www-03.ibm.com/servers/eserver/zseries/zos/ , and their iSeries (formerly AS/400) run i5/OS, http://www-03.ibm.com/servers/eserver/iseries/soft ware/os/i5os.html/ the successor to OS/400, neither of which is remotely unix-ish. I'll admit that they can run Unix, that the RS/6000s under AIX or Linux/PPC are unicies, or that at least virtual machines running under the primary OS can run Unix, but Unix-compatibility per-se isn't what Microsoft needs to compete against IBM.

      What they need to compete is the high level of handholding, the extensive uptimes, and the absolute reliability and throughput of those IBM OSes. Microsoft will probably make inroads into the small-business market, and the edges of the corporation, but it's going to take more than just new software to displace IBM from the truly big-iron apps. Personally, I think that Sun, HP, and RedHat should be more concerned, as this will threaten the midrange server market.

      --
      the more accurate the calculations became, the more the concepts tended to vanish into thin air. R. S. Mulliken
  6. They tried this a few years ago with Unisys? by xxxJonBoyxxx · · Score: 5, Interesting

    I thought they tried this a few years ago with Unisys. Long story short, it was supposed to be a 32-processor version of Windows on Unisys iron. AFAIK it went nowhere. (This was about the time that Unisys was pitching connecting web servers running on mainframes to the Internet.)

  7. Re:I should have gone into advertising... by ShaniaTwain · · Score: 4, Funny

    ..er, no - thats Billion! (with a B)

    But yes, with your keen eye to detail you should have gone into advertising. Not so much an emphasis on things like 'facts' in that industry.

  8. GWB should hire Microsoft ... by dc29A · · Score: 5, Funny

    They have an iPod killer.
    They have a Google killer.
    They have a Java killer.
    They have an IBM killer.

    Microsoft has a killer for everything!

    Dubya should hire Microsoft to develop a terrorist killer! War on Terror would be victorious!

    1. Re:GWB should hire Microsoft ... by moochfish · · Score: 3, Funny

      Their OS is even a computer killer!

  9. Hmmm by Otter · · Score: 3, Insightful
    But IBM, with a $90 billion-a-year business of selling technology to businesses, doesn't intimidate easily. Ken Bisconti, vice-president for IBM Lotus Workplace products, calls Ballmer's speech a "thinly-veiled promotion" for the upcoming Windows and Office launches.

    Any sympathy I might have had towards IBM in this confrontation vanished upon reaching the word "Lotus". Save me, Microsoft!!!

  10. Microsoft's Result by SEWilco · · Score: 5, Funny
    "Big Blue Screen of Death"

    Please wait for your airline reservation while critical update download completes.

  11. With Windows? by Zo0ok · · Score: 3, Insightful

    For servers, Windows is a poor system (it is for desktops too, but that is another thing). Most server application / services install themselves everywhere in the system and updates things in the OS/Windows folder (this is particularly true for Microsofts own products). For this reason, if you want stable operations you put just one, or a few server products on each server. Combining development/test/production on the same machine is impossible. This is partly a Windows problem - partly a problem about how applications are built for Windows - both things are equally bad. Who wants to VMWare everything just to not have thousands of servers more or less doing nothing but hosting an OS and a single service?

  12. Innovation by metamatic · · Score: 4, Funny
    The new features that Ballmer showed off during his speech seemed useful. He showed how, using Microsoft's integrated applications, people can draw capabilities from a number of applications without even paying attention to which one they're using at any given time. That means you could, for example, get a PowerPoint attachment in an e-mail and edit it right in Outlook.

    Oooh, they implemented OLE in Outlook! How 1995 of them.

    --
    GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
    1. Re:Innovation by Hiro+Antagonist · · Score: 4, Insightful

      To be honest, I can't be the only person who thinks that this sort of functionality is useless and distracting.

      When I want to work with some file that I nominally deal with using a given application, I want to work in the familiar interface of that application. I don't want to screw around with some embedded-editing crap, especially when I need to have the full application installed anyway.

      Likewise, being able to 'edit' files in an email is a horrible misfeature, because it encourages very lazy thinking about where data is stored. Where's the lastest copy of my presentation -- in an email? Is it the copy in my home directory? What about the copy on my keychain drive?

      And, of course, none of this will be 'industry standard', so it will follow Microsoft's usual practice of nearly mandating an all-Microsoft shop...

      --

      --
      I Hit the Karma Cap, and All I Got Was This Lousy .sig.
  13. Unlikely by The+Infidel · · Score: 4, Informative

    From personal experience working with a large data warehousing company, the anti-M$ 'attitude' is the norm. As my boss once put it:
    If it's development, we run Solaris, if it's serving, we run Linux, if it's graphics, we run Mac, and if its the sales guy's laptop, we run Windows."
    These old-school guys love their unix. I cant see this happening any time soon.

  14. Interesting contrast ... by LaughingCoder · · Score: 4, Insightful

    From the article: Microsoft argues that by integrating those user-oriented software packages thoroughly with back-end programs for data storage, communications, and business-process management, it puts companies' ordinary employees, rather than the geeks, at the center of the computing world. "Our innovations facilitate the power of people" in businesses, he said.

    It's true that MS is taking a completely different approach from IBM. MS espouses off-the-shelf software products (theirs of course) glued together by the customer's own employees. IBM espouses an army of consultants armed with a collection of applications and CDs packed full of open source, writing your company's custom business software.

    Now which approach do you think will win? What does history tell us? Personally, I think things in computerdom always trend towards off-the-shelf standardization. the reasons for this are obvious. There is someone to call when there's a problem. The cost typically drops as volumes are high. And the learning curve is lower because people already are familiar with the building blocks. I can't think of any examples where customization is a longterm solution to a problem. This is why I think MS has a good chance of success here.

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    The more you regulate a company, the worse its products become.
  15. The Akira model by HTH+NE1 · · Score: 3, Funny

    'We're unlocking the next wave of growth for Microsoft,' Ballmer predicted during a press conference after his speech.

    Microsoft getting bigger? I only have one word for that:

    Tetsuooooooooo!

    --
    Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
  16. Re:I should have gone into advertising... by gEvil+(beta) · · Score: 3, Funny

    $20 Billion bozo.

    Is that the sequel to Million Dollar Baby?

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    This guy's the limit!
  17. Re:I should have gone into advertising... by HTTP+Error+403+403.9 · · Score: 3, Insightful
    Okay folks, lighten up... I think he's got it.
    In the world of advertising, you gotta repeat the message over and over before it sinks in.

    --
    I'm not a Troll, it's reverse psychology.
  18. Microsoft still doesn't get it by jocknerd · · Score: 3, Funny

    They are going after IBM yet their real competition is Google in web services, Linux on servers, and Apple on the desktop and multimedia.

    Could this just be a $500M ploy to make people think they aren't paying attention?

  19. Blah blah blah, heard it all before by Anonymous Coward · · Score: 5, Funny

    I remember these guys. Wasn't it them who said they were going to build a desktop operating system to beat OS/2? Then they were going to build a word processor to beat Word Perfect, then a spreadsheet to knock Lotus 123 off its perch, then they were going to build a database that was cheaper and easier to maintain than Oracle. At one point they even said they getting into games machines.

  20. Not the same game: Will MS play by the new rules? by gone.fishing · · Score: 4, Insightful

    Businesses are like people. Each one is unique and different, each one has specific needs, has specific goals, and the route through life is a little bit different for each one. On one hand, it makes sense for Microsoft to go after the big money that exists in the enterprise market; there is a lot of money to be made there. On the other hand when you go to an enterprise and offer them something, they won't usually take it straight off of the rack, they will want it tailored to meet their specific needs. Companies like IBM and Oracle seem to understand this far better than I expect a company like Microsoft will.

    I'm not saying that I am against Microsoft entering the market, competition is usually good. What I am saying is that I think Microsoft will have to learn a lesson or two in order to actually compete. They won't be able to get away with delivering a product out of the box and then providing only a minimal level of support for it. Microsoft will have to play ball like the other big boys and learn to accept some of their rules. I expect that there will be some resistance to this from their end but, they will end up between a rock and a hardplace on the this because their enterprise level customers will simply demand it or look elsewhere.

  21. Not gonna work by drgould · · Score: 3, Insightful

    Microsoft is a software company. IBM is a hardware/service company that happens to sell some software.

    Microsoft thinks they understand the "business enterprise" computer market, but it's just the bottom, low-end stuff compared to IBM.

    And don't even bother comparing Microsoft customer "service" to IBM customer service, there's just no comparison.

  22. What should be the biggest story on Microsoft by Glowing+Fish · · Score: 4, Insightful

    The biggest story on Microsoft is how they have lost the server market.
    Microsoft has had, for over ten years, a monopoly on the desktop. A generation has grown up thinking that Microsoft is synonymous with computing. Microsoft also has billions and billions of dollars to spend on research and advertising. With all of its name recognition and money, Microsoft has not been able to build a serious name for itself in the server market.

    This is the type of statement that will generate a lot of comments on both sides: Unix people who say that any version of Windows couldn't be considered seriously at all for a server, and Windows people who will point out XP and Windows Server are now stable and secure enough for mainstream usage.

    But the fact still remains, that if you check out netcraft, Microsoft products seem to place a far third behind commercial Unixes and Linux. For a company with Microsoft's name recognition and research resources to not be a dominant player in the server market after 30 years of business and over ten years of market dominance is a staggering fact in itself.

    --
    Hopefully I didn't put any [] around my words.
  23. Never get involved in a land war in Asia by Cobralisk · · Score: 3, Funny

    But only slightly less well known, is never go head to head with IBM.

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    Waiting for ad.doubleclick.net...
  24. In related news ... by constantnormal · · Score: 3, Funny

    ... a tearful Sam Palmisano announced that IBM was immediately directing its vast army of Indian developers to begin rewriting zOS as a .Net client.

    "When I woke up this morning and saw my kid's pony's severed head in bed next to me, I just knew it was Balmer. When I went down for breakfast and found all my coffee dumped on the floor, I knew he meant business."

    At least he didn't threaten with chairs and profanity.

    Seriously, after IBM exited the desktop PC hardware business, any usefulness they had to Microsoft vanished, and they became just another competitor -- one with considerable corporate influence and a bigger source of Java legitimacy in the corporate world than Sun (who is on a short leash to Microsoft in any event), AND the biggest legitimizer of Linux for corporate use around.

    The miracle is that Balmer wasn't throwing chairs and spewing profanities during the interview.