Microsoft's Battle For Software Mindshare
chemicaloli writes to mention a BBC article about Microsoft's battle to convince users they need to buy new software. The article explores the changes to the UI in Microsoft Office 2007. Along with the changes prompted by the adoption of the 'Ribbon', the article also looks at some of the software's new features. From the article: "'One of the biggest challenges... is to fight that perception that old versions of software are good enough,' said Microsoft's Chris Capossela. Office 2007 goes on sale to business on 30 November, the same date new operating system Vista is launched. 'Our business model of course allows you to keep using Office 2003 — the software doesn't really expire,' said Mr Capossela, corporate vice president of the Microsoft Business Division. Many large businesses will have Office 2007 delivered as part of existing IT contracts but small business and individual consumers will need persuading to make the change."
The firm also undertook hundreds of thousands of hours of lab research
I had no idea those little white rats liked using Word. . .
"We are all geniuses when we dream"
- E.M. Cioran
Therein lies Microsoft's problem -- each new iteration of their software all of a sudden must render their older generation software "not good enough", giving the lie to all earlier claims about previous generations of product. This is the classical Microsoft business model. Microsoft is about selling a product, not providing customer satisfaction.
This may be a bigger shift for Microsoft than the internet was, retooling the way they think about business as a service and value-added support company rather than a company trotting out latest and greatest generations of (already quite mature) software (sheeesh, how many more features can you conceive for today's word processors?). And, have you looked at the new interfaces for their "got to have" Office products? Maybe good, maybe not, but who in their right corporate business mind would foist yet another learning curve on their entire company for yet another interface?
Considering Microsoft has never really cared for the rest of the world (in my opinion), their entire corporate mentality must reverse field, not something I'm sure they're even capable of... consider the latest rantings by Ballmer about a peek under the Microsoft covers about why they really forged the Suse/Linux deal. More evidence Microsoft continues to be about controlling, not collaborating. Does Microsoft even have the personnel capable of shifting their mindset? Time will tell.
Microsoft's stranglehold on the economy may be loosening as technology, distribution of technology, and support for technology become more about the people. That (in my opinion) can be only a good thing for the world.
(an interesting aside... my editor spellchecker offered Blamer as an alternative spelling for Ballmer... snicker.)
"Many large businesses will have Office 2007 delivered as part of existing IT contracts but small business and individual consumers will need persuading to make the change."
So, is this an admission by MS that there really is no compelling reason for an upgrade? What I mean is, if someone has to be persuaded to buy it, what is the reason they would need/want it?
Beware of he who would deny you access to information, for in his heart he dreams himself your master.
A business survey a few years ago (3?) showed that over 60% of businesses were still running Win 2K and had NO plans to switch to XP. This is an ongoing problem for M$. More and more businesses are taking the "if it aint broke, don't fix it" approach to software. Cost control is the most important thing and if what they have does what they need they will not spend a nickle for the sake of change. There is no compelling reason to go through the constant upgrade cycle just to help M$ bottom line. This seems to be true for businesses of any size.
Professional Politicians are not the solution, they ARE the problem.
Honestly. there is ZERO reason to upgrade from even Office 2000. Outlook 2000 is 10 times faster than outlook 2003 and god help us on the mess that is outlook 2007.
Every time there is an "upgrade" in the company all of us in IT cringe.... Office incompataibility between versions is legendary (2000-2003 was a nightmare.. some images showing up backwards in documents, scripts not working and the dreaded warning on every launch has served to only numb users to real warning dialogs.)
Honestly, I can do things on windows 2000 and Office 2000 in the corperate environment that you can do on the latest and greates... but with far less expense in both hardware and software. And yes you still can keep it secure, there are apps to do that as well.
Do not look at laser with remaining good eye.
When you need to struggle to convince people that they NEED to buy your new product, and that the old one is not good enough, perhaps the problem is with you. Or perhaps the problem is that your customers know that in 2010 Microsoft will be trashing the software they are talking up now in a pathetic attempt to get you to upgrade again.
You know, there is only so many pointless features you can cram into programs that basically replace a typewriter and calculator (with graph paper) respectively. I know very few people who need more than Office 95 had to offer.
Finkployd
'Our business model of course allows you to keep using Office 2003 - the software doesn't really expire,'
...Yet.
Hardware companies compete with their own products too.
I once worked with a company that was getting increasing competition from their own hardware being sold on eBay.
They started offering discounts for returning the old hardware when upgrading. And then they destroyed the returned items.
At least the EULA does not allow you to pass the license to another licensee once you upgrade - that would be a Microsoft nightmare. Each new version would overflow the market with very cheap licenses for the previous one.
Office 97 - The last M$ Office you needed to buy. I've been running my copy for 10 years and it still does everything I need.
From a sales standpoint, Microsoft is pretty smart with Office. They always make sure it's 100% backwards compitable, but add enough changes to the .doc and .xls format to ensure that a document from the new version cannot always be opened in a prior version. At the companies I've worked for, this has typically been the driving force of upgrading.
... after a while there's real benefit in upgrading vs. replying to hundreds of messages with "Can you please save this in an earlier version of Word, I haven't upgraded yet". As long as Microsoft can give away or sell enough O2007 copies to large corporate accounts, there will be a trickle down effect to the rest of corporate America.
There's nothing more annoying than receiving an e-mail with a Word 2003 document and not being able to open it in Word 2000
Huh? Don't mind me, I'm just the new guy.
I imagine that they would like it if Office did expire--they could really suck money out of their customers if the software expired through DRM-style technology.
42
Your "business model" is a hold-over from the stone age, and does not have the authority to "allow" or "disallow" me to do anything. Any company/industry that forgets that deserves the fate they get from it.
I am not your blowing wind, I am the lightning.
"'One of the biggest challenges... is to fight that perception that old versions of software are good enough,' said Microsoft's Chris Capossela. Office 2007 goes on sale to business on 30 November, the same date new operating system Vista is
This from the company which probably wrote the book on deploying software when it's 'good enough'.
If the old software isn't good enough now, was it good enough when I bought it? Furthermore, is the new software good enough? And by what date will it no longer be good enough? I don't think any business has needs that change so much that they need a new set of office apps after a few years. In fact, if they are doing things well, why change anything at all? The only reason you "need" to stay current is because Microsoft discontinues support on the older software. If NT support continuted, for example, I am certain that various companies would have been relieved to leave older production systems as is.
stuff |
Well, since I'm a forward-looking person, I think that Office 2007 is already not good enough for me, so I'm going to wait until Office 2011 comes out.
I have blogged about this: I would be a much happier (occasional) customer of Microsoft's if they would support one version of Windows and Office at a reasonable yearly subscription price.
This would remove the drive for forced upgrades through new features that I don't care about. I would consider $40/year for Windows and $100/year for office to be reasonable. Buying a new computer would get you a 1 year subscription.
Unfortunately, Microsoft's business model requires constant growth (I was once a house guest for a weekend in a friend's home when another house guest was a Microsoft exec and his family. He said that Microsoft had to "grow a new Disney" in size every year for their business model to work). I don't think that $40/year from every legal Windows user would satisfy Microsoft's appetite.
On the other hand, look at Apple: I occasionally use OS X (Linux is my main development and writing platform) and I don't mind paying for a $130 OS X upgrade every 18 months or so - one reason is that OS X upgrades actually run faster -- great for older Macs.
Microsoft needs to get off of the forced upgrade path.
Today I happened to overhear a salesman going through his bit to a customer "and you'll want to include Office, which you can et a version of for $250." It too bad that customers are still under that impression. Open Office needs to get the kind of marketing push that Firefox has had. It's good enough for most people. If the people actually knew they could get a free office package they way more would opt for it. Instead, you have the salespeople padding their margins selling overpriced office software year-after-year.
A Multiplayer Strategy Game for Mac OS X, Windows, and Linux
I see that lots of people comment the current office versions are good enough - indeed they are to the casual user who sparingly uses them. However to the power users and developer community, they've been pretty lousy till now. Server-side document generation has been pathetic; weird and expensive COM-based controls, archaic limitations, and lousy templating support.
The ribbon UI may have its uses; but I guess its just a gimmick. The real value for this release is in the server-side development, XML stuff that's gone in. And this is pretty tough to market. Still, people will buy it, since the default format's changed; and the upgrade treadmill cant be avoided.
OpenOffice and its cousins missed the bus; the minimum they needed to do was atleast match MS Office's UI performance. Sadly, even MSO2K3 spanks OO. When the competition figures out how to make a snappy, feature-rich, stable product, they'll trouble MS.
Some of our external partners will get the new MS Office as part of their service contracts, and our administrative office will buy it because it makes the PHB's feel at the technological frontier. Both of these will start sending us documents that cannot be read with our old MS Office, and we will be forced to upgrade.
Same procedure as last upgrade. Same procedure as every upgrade.
We end up paying Microsoft not for new features we don't need, but for being allowed to cooperate with our partners.
This is why I believe the government needs to standardize on an open format for exchanging documents internally between branches and externally with private citizens and organizations. This is not a problem that can be solved by local decision makers. The locally optimal solution is always to go for a format that can read what the external partners, and this vicious cycle can only be broken by finding a different global optimal point.
(My math/cs background tells me that a local optimum is not necessary a global optimum, which is the provable wrong leap-of-faith that the dogmatic anti-regulation people have made).
I do some consulting/pc maintenance for a small company that still runs their machines on Win95 and uses Office95 for their work, and the combo still runs fine. The majority of their "business" apps are web based, and Firefox runs fine on it, and as far as anyone is concerned, as long as the document comes off the printer correctly, no one cares what program created it.
It's interesting to go there; it's like time has stood still since 1995 and you realize that "good enough" can go back pretty darn far.
Microsoft: "One of the biggest challenges... is to fight that perception that old versions of software are good enough"
Behold, the difference between open and closed source software.
From http://www.linuxhq.com/kernel/
Version 2.6 * Current: 2.6.18, 20-Sep-2006
Version 2.4 * Current: 2.4.33, 11-Aug-2006
Version 2.2 * Current: 2.2.26, 25-Feb-2004
Version 2.0 * Current: 2.0.40, 08-Feb-2004
So, 2.6 and 2.4 are actively maintained, with 2.2 released in '99 with updates to '04, and 2.0 being updated for over 8 years, since 1996. And I'll wager that there's been no more updates since then for those two kernels simply because it *is* good enough.
Need I also mention the little bit of text that is present in almost *any* F/OSS software update that pretty much says "Hey, if you're current version's working fine for you, that's great. Don't think we're forcing this on you."
You are in a twisty maze of processor lines, all alike.
There is a lot of hype here.
That's not possible. It's been well documented by slashbots that you are forced to upgrade Office and Windows with each version that is released. You are clearly a liar because slashbots are well known for their journalistic integrity and would never make up stories about Microsoft on the spot or talk about things they know nothing about.
Also, if you're dealing with a lot of users across a slow connection (ie 200 users who access their e-mail on the Exchange server across a T1), you get some bandwidth savings using cached mode.
With Outlook 2000/XP and Exchange 2000, you keep a constant RPC connection open (for mail notification and transfer) and you transfer mail at full size.
With Outlook 2003 (using cached mode) and Exchange 2000, you contact the server once every 45-90 seconds (rand) and check for new messages. Messages transfer in a burst, but at full size.
With Outlook 2003 and Exchange 2003, you get same as above, but the messages are actually compressed before the burst.
Yes, you get a 30-60 second delay that you didn't have with Outlook 2000/XP, but the bandwidth savings help quite a bit. Especially when the people in that building are using other applications across that link too (Web, constant telnet, Terminal Services).
This just goes to show what I've suspected for a while... there is a problem with the software industry in general. The goals of a software company ultimately have a contradiction with the goals of software itself: The software company must fight its own products.
This is one of the reasons that, although I am a programmer by nature and by trade, I have a really hard time with the idea of starting up some kind of software company. I'd rather other people take those risks and hire me. As I see it, there are two problems with starting a software company:
1) Your product is inherently easily copied, giving it low value no matter how good it is. In fact, the more popular it is, the more likely it will be pirated, thus the better it is the LESS value it potentially has. This is definitely counter-intuitive.
2) Once you create a product that does what it needs to do and is easy to use, what then? Software eventually always reaches a plateau, and it becomes a question of "now what?" At this point software companies start to add "features" that bloat the software bundle and aren't wanted by customers, in the hopes that they've at least acquired a dedicated customer base that will buy the new version simply because it is "the newest version".
No, as I see it, it's better to do software in your spare time, and release it for free. Not because I'm some kind of altruist, but just because I see it as being a much more viable way to focus on the "product" rather than the "profits".
To clarify -- I'm certainly not any kind of anti-profit advocate. I'm a capitalist. I just don't see software and other information-based services as fitting into a capitalist model very well. As soon as you are a software company, you must focus on getting customers to upgrade, rather than on making sure they have a good experience with your product. Any industry in which it's in a company's interests to make sure its own customers are having a bad experience is in contradiction with itself, as far as I can see. I think the same thing goes for anti-virus products -- it's in their interests to make sure there are viruses around. They have built up their flagship products on the existance of something evil. There is simply something wrong with that.
This is why I tend to trust open-source products. I know that they have no reason to exist except to "get the job done", and therefore they do what they are meant to, and nothing else.
1. Cached Exchange Mode. All versions of outlook without this are absolute unusable garbage. This feature was what allowed me to stop using PINE+IMAP at work.
:)
2. RPC over HTTPS. This is _huge_ for mobile workers.
I happen to really like Outlook 2007. I've not noticed any speed problems with it. They've done a good job since OL2k of removing possible high-latency calls on UI threads, making the client much more interactive in a variety of situations. In 2000 Outloook+Exchange were unusable. I remember the exchange team having an "SP1 ship party" and thinking I'd run over there and choke all of them, perhaps screaming "get back in your f@#$king offices and fix this bullshit until i can read email as quickly and easily as me and _50000_ other students could using pine+sendmail on a 2 proc dec alpha"
Outlook and Exchange have gotten _much_ better since then. I can use them without wanting to kill people, which has left me free to be angry about other Microsoft intolerables, like DRM, windows stealing focus, and long path name support
My opinions are my own, and do not necessarily represent those of my employer.
I used to believe this too.
I believed that all you had to do was give people the chance to learn the basics of what they were doing with a PC, the basics of what is actually happening when they open a file or copy a file, or start a program, and some magic light would go on in their heads and they'd "get it."
Then I started working in desktop support.
This was back in 1990. There was no web and no email at work (except for a few executives who used Procomm to connect at 33.6 kbps to the corporate mail server). Most companies had adopted PCs for use, but many, like mine, were still integrating them into their daily business tasks. We were experimenting with this newfangled thing called "desktop publishing," and the accounting department was debating the relative merits of Excel for Windows 3.1 vs. Lotus 123 for DOS. Some holdouts insisted on using Quattro Pro.
I was young and idealistic. I thought that the only problem most people had was lack of familiarity with these new, powerful tools. I thought a little education would fix it.
Boy was I wrong.
I gave seminars, I took time to explain what was happening every time I fixed a problem for someone. I wrote simple memos with pictures -- "How to Format A Floppy Disk" was one of my masterworks, as was "There are two kinds of hard disks -- those that have failed and those that will fail. So make backups!". For five years, I tried, and I believed I could make a difference.
I gave up and switched jobs. But I learned something from the experience.
I learned that the problem is twofold: 1.) the vast majority of the population doesn't care how a computer works and 2.) the vast majority also lacks the mentality required to understand what's happening inside a computer. I'm not saying these are unintelligent people; I'm saying there's a certain mindset that you need to understand what's happening in your computer, and you either have it or you don't. Just like some people really get off on balancing a ledger, or closing a sale. I've worked with janitors who went from not knowing how to turn the machine on to writing Macromedia Director presentations in less than a year, and I've worked with lawyers who were baffled at the complexities of saving a file to a floppy (and who never seemed to quite get the hang of it).
Call me cynical, but my conclusion is that's the way it is, and that's the way it always will be, regardless of how much education people receive.
Except interoperate with Office <insert newer version here>.
Slashdot is kind of like Playboy; we aren't here to read the articles.
While I find your article very insightful, and well worth the +5 it has earned (and I've saved it because I like your arguments), you miss a point. You don't discuss an analysis of needs verses true cost of the upgrade.
The only reason I moved from MSO97 to MSO2000 is that I needed to make that move to do VB6 software development for customers. I've stayed with MSO2000 since because it offers everything I need.
Why pay for features I don't need; need to learn the ins and outs of the new system; my time to upgrade; plus dealing with a whole new round of bugs and issues. That's a high price to me, and only benefits MS.
You discuss not upgrading when there is no apparent cost and compelling advantages. For many of us, neither of those conditions are true if we already own MSO97 or later.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
Uh...isn't the point to moving to XML that it be interoperable...easier to get access to the data and do good things? Standard text file and all that?
Oh, wait...MS-Standard Text File...
It's a simple matter of complex programming.
I wish to complain about backward incompatible format changes. I had one of our junior associates send me an .xlsx (Office 2007 Excel) file as an experiment. My machine with Office 2003 couldn't read it even after I downloaded the compatibility pack.
I think we need a little more of "Good Enough" in the world so we can "just get some work done". I'm looking forward to the non-sales atmosphere of Linux.
My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine