Why Microsoft Can't Compete With iTunes

A reader submitted "Why Microsoft Can't Compete With iTunes which is an interesting op-ed piece about the differences between the two companies, but also the intersection with a different type of business like that of television. I've read some of the same arguements before, but this piece ties it up nicely together."

Comments

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[Kadin2048]

The U.S. DOJ settlement against Microsoft did very little. I would argue it basically did nothing of any relevance, certainly nothing that fundamentally changed Microsoft's business practices. If anything, it probably emboldened them, since the end of the settlement made it harder for a new one to be brought against them in the future -- it demonstrated that the U.S. government didn't have the political cojones to actually do anything meaningful.

Here's the DOJ's lame info site on the settlement:
http://www.usdoj.gov/atr/cases/ms-settle.htm

Why corporations CHOOSE microsoft

[klubar]

I read your article about the "Microsoft fallacy", but you seem to have totally ignored the corporate market. If a Fortune 500 company really wanted to buy machines without Windows licenses they could easily cut a deal with Dell. Dell already sells machines without OS's (see the workstation/server pages) and can special price & configure machines--in fact, they'll even preload any OS/software you want on a machine (minimum quantities apply). However, big corporations really want Windows--it's easily remotely administered, works well with other applications (especially Exchange) and there is a large ecosystem to support it. From secretary training (how to log in, use word) all the way up to advance internals experts. From a corporate point of view, Windows just works.

Because the big corporation use Windows, all of the smaller firms that buy or sell to the big corporations frequently need to use windows. Sure I could deliver a presentation myself using keynote, but the first time I send it to a corporate client will be the last time with that client. Same thing with sending a document in a "weird" apple font (sure they can open it, but it will look strange--the question will come back "can't you just put it on a PC?".)

The iSeries (iTunes, iMove, iGarageBand) is essentially meaningless in the corporate environment. Apple has pretty much given up any hope of getting more than a pip of share in companies with more than 500 employees. The same thing is somewhat (although not completely) true in the educational market.

The training cost of a new hire who doesn't know how to use Windows/Office is higher than one who does--two identically candidate--one who is ready to go and the other who "gee I've only used a Mac, but boy can I operate GarageBand" which would you hire?

Apple are cool, shiny objects--just keep them at home.