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Microsoft To PC and Tablet Makers: You're Not Our Future

snydeq writes "Microsoft's plan to build its own Windows 8 tablets puts longtime allies in peril — and it may be the right thing to do. 'In announcing the Surface tablets, due to be released this fall, Microsoft CEO Steve Ballmer cited Apple's advantage (without mentioning Apple) of integrated software and hardware. "Things work better when hardware and software are considered together," he said. "We control it all, we design it all, and we manufacture it all ourselves." ... Like Apple, Microsoft will hire a few PC makers to do the actual production work. But the need for 20 brands of me-too laptops, tablets, and convertibles is low. Manufacturing sophisticated electronics is a skill requiring manufacturing innovation. But all those branded-but-otherwise-undifferentiated PCs, laptops, tablets, and smartphones just aren't needed in the vision Ballmer sketched out yesterday.'"

39 of 530 comments (clear)

  1. Make sense by Anonymous Coward · · Score: 5, Interesting

    This maybe the smartest move microsoft made in the last 15 years

    1. Re:Make sense by Anonymous Coward · · Score: 5, Insightful

      It certainly seems smarter than trusting their fate to likes of HP and Dell as they continue to ride out the death spiral of slapping their branding on cheap ODM crap.

    2. Re:Make sense by Maury+Markowitz · · Score: 4, Funny

      Yeah, like the Zune.

    3. Re:Make sense by White+Flame · · Score: 4, Insightful

      Microsoft is very close to doing what they're poo-pooing: Releasing a me-too clone with a commodity operating system.

      Sure, they would control the supply chain now, but so what? It's still playing wannabe behind Apple and Android in the tablet market at this point, and seems to be a peer to all the other manufacturers who plop Windows or Android on hardware and try to enter the market. Especially in the Android segment, companies already have full hardware & software control (like Amazon), because of the (mostly) open-source nature of Android.

      So no, MS, you're not special, and you're still playing catch-up.

    4. Re:Make sense by microbread · · Score: 5, Insightful

      As an owner of a Zune HD, I can attest to it being a great product let down by abysmal marketing and poor support from Microsoft. It was the only real competitor to the iPod Touch and one of a very small number of PMPs that has (had?) 64GB flash memory. If they'd released it properly in the EU and actually paid for advertising it might have fared differently.

    5. Re:Make sense by FearTheDonut · · Score: 5, Insightful

      Maybe this goes towards what you mean about advertising, but Microsoft let everyone else control the conversation about Zune.. Letting it be the butt of everyone's jokes.. At it's prime - it had THE BEST online service: curated rotating themed playlists, "School" for people who wanted to learn more about a specific genre, complete with different "guest professors", and a "Smart DJ" system before Apples.. What good is a product, with awesome features, if not a damn person knows about it, or has the completely wrong idea about it?

    6. Re:Make sense by MightyYar · · Score: 5, Insightful

      Well, they also wrote their own obituary with the way they handled the release. The main thing that sticks out is breaking "Plays for Sure", which pretty much told the consumer how much they could trust MS.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    7. Re:Make sense by tbannist · · Score: 4, Insightful

      So you're saying the biggest problem with the Zune is that the company that developed it was bought out by Microsoft? Who then proceeded to run it into the ground? I don't know where I've heard that story before...

      --
      Fanatically anti-fanatical
    8. Re:Make sense by Deorus · · Score: 4, Funny

      Such an extradition would be in violation to the first amendment to the bill of rights, so go kill yourself for posting bullshit.

    9. Re:Make sense by UnknowingFool · · Score: 4, Informative

      Marketing wasn't the only problem. The Zune was the best PMP on the market beating the iPod Classic. The problem was that Apple moved the goal posts and the iPod Touch wasn't a PMP. It was a portable computing device that functioned as a PMP, a PDA, internet browser, email application, gaming device, etc. The Zune was always behind Apple on this. If all you wanted was a PMP, the Zune was your best bet. If you wanted more, the iPod Touch was it. And many people wanted an iPhone without the phone part because of the 3rd party applications.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    10. Re:Make sense by DangerFace · · Score: 4, Interesting

      How do you know they're not planning to really emulate Apple's "success" and move to proprietary hardware/software and tell all of their "partners" to go pound sand? A walled garden would be next.

      They could, but that would be insane. Those "partners" would still be pumping out craploads of hardware and need something that would run on it, finally bringing about the Year of Linux on The Desktop, just as the Mayans predicted. When billion dollar businesses are told to fuck off by their trusted partners they don't just go quietly into the night, they do (possibly spiteful, crazy and dickish) things to try to stay afloat.

    11. Re:Make sense by timeOday · · Score: 4, Interesting

      Microsoft has had a great run for a long time. Comparing Microsoft vs Apple market cap for the last 20 years or so, it's very premature to call Apple the winner. Cellphones just don't entrench like enterprise software infrastructure. Apple's profits could nosedive completely with the release of one breakthrough competing product, whereas Windows cannot be displaced so easily.

    12. Re:Make sense by DarwinSurvivor · · Score: 4, Informative

      when Apple releases a product, it's fully baked and ready to go.

      As long as you hold it right

    13. Re:Make sense by lightknight · · Score: 5, Insightful

      Oh, please. I have a new laptop, and despite the SSD and extra memory I shoved into it, it still can't hold a candle to my desktop.

      The people crying that the end of the desktop is nigh are those people who never needed a desktop to begin with, and would be happy with an iPhone for all their 'computing' needs.

      --
      I am John Hurt.
  2. Good news by Anonymous Coward · · Score: 5, Interesting

    That's good news for the customers, because in order to penetrate the market Microsoft will throw shitloads of money at the development of their new hardware toys and essentially give them away underpriced and possibly at a loss.

    All we need to find out is a way to hack them and install Linux on them, and there it is, your super-cheap Linux tablet. :-)

    1. Re:Good news by queazocotal · · Score: 5, Insightful

      If this occurs, then Microsoft has every reason to properly secure the bootloader, so that running other OSs is absolutely impossible.
      The golden dream for Microsoft in this is that there are two companies making and selling hardware - Apple and Microsoft.
      Two, to avoid anti-trust concerns.

      To make a secure device, you need perhaps $1 or $2 extra in hardware, and $100K or so spent on getting it audited by someone with a cryptographic clue.
      Microsoft has this money, and the incentive to spend this money.
      Your average tabletmaker doesn't care that much.

    2. Re:Good news by Joce640k · · Score: 4, Insightful

      No device can ever be "secure", and running your own code can never be "absolutely impossible" so long as it is in the hands of consumers...

      It can easily be secure enough to require a hardware modification to get another OS to run on it. For the mass market that's probably secure enough.

      The intersection between people who want to use Linux and the people who'll buy a Microsoft tablet to do it on instead of an Android tablet which doesn't require any soldering is small enough for it not to be a problem. Besides, Microsoft already made money on the tablet even if you do use it for Linux so it's still a profit for them.

      --
      No sig today...
    3. Re:Good news by DaveGod · · Score: 4, Insightful

      That's good news for the customers,

      Er, go have a look how much an office PC costs then go look how much a Mac is.

      And that's despite Apple using mainly off the shelf components and thus benefiting from the highly competitive hardware market that exists for Windows PCs.

      If MS goes closes the hardware it's pretty much game over for anyone who doesn't get a contract with MS or Apple, and the competitive hardware market disappears.

      It's unclear whether this would be a net win or lose for MS. On the one hand the hardware industry becomes generally less competitive, but on the other hand the relative scale economics of MS becomes much more substantial. They get to realise their advantage over competitors. One thing's for sure though, the consumer is going to lose. Badly.

      There's already a duopoly on the software, which while significant is still just a fraction of the overall cost of a PC, of which the remainder of the cost is the highly competitive hardware. Now we'd have a duopoly over the entire PC.

  3. year of the? by samjam · · Score: 4, Interesting

    So now all the PC manufacturers need a non-MS alternative... this could be the year... sounds good for EFI being able to boot linux after all!

    1. Re:year of the? by w.hamra1987 · · Score: 5, Interesting

      year of the demise of the desktop...

      --
      my sig pwns your sig
    2. Re:year of the? by MrMickS · · Score: 5, Insightful

      year of the demise of the desktop...

      Absolutely. We have moved into the age of the appliance. For the majority of people this is a good thing. They don't understand, and have no interest in understanding, the complexity of general purpose computers. They want access to the internet, an ability to manipulate digital media, and something to load useful apps and games onto. They want something that is protected from being rooted by malicious hackers. They want to be able to trust their device to not transfer all of their account details to someone able to install a keylogger or similar.

      --
      You may think me a tired, old, cynic. I'd have to disagree about the tired bit.
    3. Re:year of the? by epyT-R · · Score: 4, Interesting

      We're moving from a culture that encourages individual learning/mastery/understanding of the things used in life, to one of apathetic dependence on convenient 'service'. This is intellectually stunting, which causes all kinds of other problems.

    4. Re:year of the? by Goaway · · Score: 4, Informative

      The Raspberry Pi is a desktop machine. It costs $35.

    5. Re:year of the? by XxtraLarGe · · Score: 4, Informative

      We're moving from a culture that encourages individual learning/mastery/understanding of the things used in life, to one of apathetic dependence on convenient 'service'. This is intellectually stunting, which causes all kinds of other problems.

      And yet, there's this.

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    6. Re:year of the? by DogDude · · Score: 5, Insightful

      No, what you're describing is necessary in a more complex society. Do YOU understand how to fix your car? Or, are you like most people, in that you turn the key, and hope it starts?

      --
      I don't respond to AC's.
  4. Commodity hardware isn't going anywhere by Anonymous Coward · · Score: 5, Interesting

    All of the recent commentary about MS rupturing their alliance with OEMs is overblown. Microsoft is stuck with OEMs because they don't have the resources to supply an entire computer market with their own hardware. OEMs are stuck with Microsoft because Apple won't license OS X and most consumers won't want linux for the foreseeable future.

    MS will make a flagship tablet, which will showcase Windows 8 in the way that they want to show it (without manufacturer bloatware etc). The OEMs will rush in and undercut MS with a range of comparable but slightly cheaper options, and life will go on.

    1. Re:Commodity hardware isn't going anywhere by Tridus · · Score: 5, Informative

      If the stories about WinRT costing $90 per copy for OEMs are true, they're not going to be undercutting anything unless Microsoft charges a ton for Surface. You can't make a cheap tablet when the OS costs that much.

      --
      -- "So they told me that using the download page to download something was not something they anticipated." - Bill Gates
    2. Re:Commodity hardware isn't going anywhere by bmo · · Score: 5, Insightful

      Microsoft is stuck with OEMs because they don't have the resources to supply an entire computer market with their own hardware.

      This is categorically false.

      You have no idea how big the electronics contract manufacturers are or what they are.

      They are the people who actually manufacture the devices for the OEMs. Microsoft can surely hire Foxconn or Flextronics to build their tablets. iPads and Surface tablets coming off parallel assembly lines in the same building at Foxconn. Don't think it can't or won't happen.

      --
      BMO

  5. Fondleslabs... by Virtucon · · Score: 4, Interesting

    To be honest, I have 4 tablets in my house. One I use constantly for travel and three others for the wife/kids. Do they use them? sometimes but for me I have a Laptop, a Desktop and other systems to use. The tablet form factor is nice and it does provide a needed distraction from the obnoxious guy sitting behind me in 10A on the flights. I've also seen people now diligently taking their tablets everywhere, as if they're so much jewelry. Today I went to lunch and next to where I was, there was a young couple. Both with tablets, both watching stuff, exchanging e-mail and not really talking to each other. So why go to lunch together if you're not going to be part of the actual experience. Yes, it could be laptops, eepcs etc. but it's simply amazing the tools we now have that actually discourage face to face communications. Oh yeah, I can Skype too but that's beside the point.

    Microsoft for jumping into this with a "Me Too" approach seems to be too little, too late. Much like their phones. Maybe they'll sell a few but right now I think the market is saturated by Apple and all of the Android based models out there. This move will also alienate them from a lot of their tried-and-true supporters, the Toshibas, the HPs and the ASUSs for example.

    Well, let's wait and see in two years to see if it makes sense or if Ballmer will do his Monkey Boy Dance again!

    --
    Harrison's Postulate - "For every action there is an equal and opposite criticism"
  6. More of a warning message, I think... by Aryeh+Goretsky · · Score: 4, Insightful

    Hello,

    I do not see this so much as an ultimatum by Microsoft to its partners as a warning.

    Microsoft has invested a great deal of R&D into making Windows fast and reliable, only to find those efforts wasted by computer manufacturers who load up trial or otherwise limited versions of third-party programs which slow down the boot process and system performance overall, use up memory and disk space and introduce incompatibilities with other operating system components and third-party software, all in the pursuit of pumping up profits by turning the computer that you buy from them into a billboard, with those programs being the advertisements. Software companies have to pay for pre-loading the trial version onto a computer, and also have to pay a commission when a license is sold from that preloaded version.

    The fact that whole taxonomies of software have been created (bloatware, crapware, shovelware to name a few), and that an ecosystem of programs like CCleaner (formerly Crap Cleaner) and PC Decrapifier (formerly Dell Decrapifier) have sprung up to solve the problem indicates how badly Microsoft's partners have abused their position.

    In the case of the whole OEM software preload business, I think Microsoft has largely been the victim. They put strict branding requirements into Windows 95 for the desktop because they wanted end users to have the best experience possible. Manufacturers saw it as a way to make more money ("sell advertising space") and that's what pretty much started the initial antitrust investigation into Microsoft by the US DoJ. Yes, Microsoft has done plenty of horrible things, but they've also paid the price for those past misdeeds, not just in terms of fines, but in the distraction of having to deal with lawyers instead of being able to focus on delivering products and competing with companies like Apple.

    Microsoft's partners cannot have ignored what Microsoft is doing with Windows Phone, Windows RT, the Microsoft Store, the Signature PC program and so forth. The writing has pretty much been on the wall for a while; this is just the latest paragraph: We have worked very hard to provide you with the tools to provide customers with a great Windows experience. If you do not choose to execute on that, we will.

    As usual and for the record, all of this is my own opinion and commentary derived by observation and other public sources and neither reflects the opinions of Microsoft or my employer (who actually competes with them), although they'd both be fools to disagree with me. :)

    Regards,

    Aryeh Goretsky

    --
    Dexter is a good dog.
  7. Re:Not a threat, a counter offer by Bert64 · · Score: 4, Insightful

    Or it could have the opposite effect...
    If the windows tablet bombs, then that will drive OEMs away faster than ever.
    If it succeeds, then it will be a competitor to the OEMs which may also discourage them, especially since MS will have an inherent advantage due to being able to get the software for free whereas other OEMs will have to negotiate a price, giving them thinner margins on otherwise comparable devices.

    --
    http://spamdecoy.net - free throwaway anonymous email - avoid spam!
  8. Re:Damn right, on some of it... by AliasMarlowe · · Score: 5, Funny

    7% of android devices are running ICS 7 months after it was released, compared to Apples 80%.

    Can you substantiate your claim that 80% of Apple's devices are running ICS? I thought it would take a lot longer than 7 months for that to happen...

    --
    Those who can make you believe absurdities can make you commit atrocities. - Voltaire
  9. Re:Facts on the ground. by DrXym · · Score: 4, Insightful

    It's getting that way already. Nokia is burning through money and isn't enjoying the sales to assure its own survival. Supposedly the Lumia 800 & 900 didn't sell very well at all and new cut price phones like the 610 (which runs a gimped Windows Phone 7) will sell even worse. If they had a tablet planned they can kiss goodbye to strong sales now they're competing with their own new best friend with deeper pockets. Analysts are already bandying words about like "death watch". I can't see them lasting another year in this state. Someone has to buy them out.

  10. Re:What do they have to bring to the table? by epyT-R · · Score: 4, Insightful

    yay I can't wait to store my data on some remote server that could disappear any time. people like you are the reason society is more and more ignorant of consequences. who cares as long as the method is a tiny bit more convenient right the fuck now, right?

    1. bw isn't free, esp on cell networks.
    2. the internet will never offer the speed and capacity of local storage
    3. monthly fees for storage
    4. government surveillance/censorship
    5. connectivity dependence and 'cost stacks'.. instead of buying a storage device once, the user has to pay for storage and connectivity, usually with monthly charges or else access is lost/the data's gone for good.

  11. Re:And, best of all... by Goaway · · Score: 4, Interesting

    Slashdot links are rel="nofollow", which means Google doesn't count them. So no.

  12. Manufacturers' end-of-the-world scenario. by goodmanj · · Score: 5, Insightful

    Dear hardware manufacturers: You are now utterly dependent on your biggest competitor to supply you with the software you need to run your product. If MS thinks you have a better product at a better price than theirs? Oops, sorry, our Windows OEM licensing system is having technical difficulties. Oh, wait, it's working again, but we had to double the price. You can only build what Microsoft allows you to build.

    Unless you want to become a de facto division of Microsoft, you have only two choices: write your own operating system, or use one that's free.

  13. Re: The OS Warz have begun! by ag.restringere · · Score: 5, Interesting

    Dell Launches Laptops Pre-Loaded with Ubuntu Linux in 850 Stores Across India: http://www.h-online.com/open/news/item/Dell-to-bring-Ubuntu-laptops-to-850-retail-stores-in-India-1620657.html This was announced on the SAME day that Microsoft announced the Surface RT and Surface Pro. It seems that the OEM industry is secretly betting that Linux Desktop will overtake Windows in the huge Asian market. This is interesting considering that Valve is releasing Steam for Linux and that EA and other game companies are interested as well. They are predicting that Linux will be a big win and replacement for Windows in the long term. earlier... Dell Launches Laptops Pre-Loaded with Ubuntu Linux in China: http://www.h-online.com/open/news/item/Canonical-Dell-bring-Ubuntu-laptops-to-220-Chinese-retail-stores-1368347.html The OEM's are the BIGGEST CLOWNS for not jumping on Linux earlier to counter the Microsoft threat to their eco-system.

  14. The first step in a death spiral... by rgbatduke · · Score: 4, Insightful

    ...right down to the bottom of the sea.

    Let's count the problems with this model. Suppose I'm a maker of tablets or laptops or PCs. So far I've put Windows on them to market them because frankly, I have little choice -- it's that or Linux and besides, in order to remain price competitive I have to get the price breaks that come from Microsoft for using Windows exclusively as a pre-installed OS. However, I have taken comfort in the fact that all of the other manufacturers are in the same boat -- we all have the same product, within hardware choices and tweaks, we all run the same OS preinstalled for pretty much the same price, that OS breaks on our hardware about the same fraction of time and we get enough help fixing it that we can usually release a semi-stable product and not piss off our consumer base.

    But now Microsoft is going to play! It will design its own hardware, and will apply its own team of umpty-gazillion semi-unemployed programmers to ensure that its OS works perfectly on that hardware, both optimized and with absolutely functional device drivers. OTOH, Microsoft will have absolutely no incentive to help out third party hardware manufacturers like me. Indeed, they will have a disincentive! If my hardware has a constant list of creeping minor problems, then Microsoft's huge team of sales reps will be able to convince many buyers that my hardware just isn't reliable, where theirs is!

    It's not like we haven't seen this before, after all. It is precisely how Microsoft became the monopoly that they are today -- Microsoft branded software always worked when a new version of its OS was released, where non-Microsoft software was usually subtly broken for six months afterwards. This problem was so prevalent and reproducible that the term "FUD" was coined to describe the predictable response of the Microsoft reps in that six month window, while they gradually took over the world from the likes of Lotus, Corel, Borland, all of whom owned a serious piece of the PC software business before Microsoft decided it wanted it all, not just the OS and maybe a reference compiler or two.

    So now Microsoft has decided to go one step further and become Apple, even though they at one point took Apple to within coup-de-grace range of bankruptcy and refrained from wiping it out entirely only because they were already in trouble with anti-trust suits and needed a viable competitor to convince the courts that they didn't, actually, need to be broken up. Apple, of course, has succeeded largely recently because they have a certain amount of genuine innovation (on top of a fair bit of righteous anti-innovation, adopting Unix as their basic OS and "inheriting" an enormous base of free/open source software that nevertheless becomes part of their overall offering). So Microsoft is thus committed to out-Jobbing the now deceased Steve Jobs, in spite of the fact that as a corporation it has stolen -- well, "hijacked" is a better term -- almost all of its best ideas using the dual weapon of cloning by the world's largest closed shop of programmers who control both software and OS, and FUD. Worked great with corporations and corporate tools, but how will it play with consumers? How will it play with the vast ocean of hardware makers?

    The latter is fairly predictable. The minute Microsoft becomes Apple, and adopts hardware that it either makes itself or outsources from just one specific manufacturer, the incentives that have long given them dominance on the desktop disappear. True, they are already getting hammered by e.g. Android and can read the writing on this particular wall, but it may well be that their only alternative at this point is one form or another of elegant suicide. When all of the hardware manufacturers realize that they are competing with Microsoft as well as Apple, with very likely no room left in between, what alternatives do they have for survival? Anti-trust suits, sure. And support for any viable alte

    --
    Even when the experts all agree, they may well be mistaken. --- Bertrand Russell.
    1. Re:The first step in a death spiral... by RazorSharp · · Score: 4, Interesting

      It's really too bad that Google Chrome (the OS) had to have this radical dependence on remote storage, because I image hardware manufacturers like HP and Dell would really buy into it now that they're competing with Microsoft on the hardware front and that means they're going to have to support Android. If they're going to support Linux they might as well go all in.

      Really, companies like Canonical should be setting up meetings with hardware manufacturers pronto. Imagine "Ubuntu Dell Edition" -- a version that includes drivers that will support all Dell hardware configurations from 2012+ (but leaves out the unnecessary ones). Ubuntu HP Edition, etc. The biggest problem with Linux is the same problem Windows has - it has to support so much freaking hardware that support becomes a nightmare. The advantage Windows has is that most of this is setup for the user when they purchase the computer. All these hardware manufacturers will probably now realize that their dependence on Microsoft these past couple decades has put them in an extremely vulnerable position. They should have realized it when the XBox came out.

      --
      "From the depths of my skeptical and rationalist soul, I ask the Lord to protect me from California touchie-feeliedom."