August 15, 2009 12:30 AM PDT

Microsoft's technology strategy needs a refresh

by Matt Asay
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As news broke this week that Microsoft and Nokia would be partnering to (brace yourself!) port Office to Nokia phones, followed by the equally momentous (or not) news that (sit down for this one!) Microsoft will replace Entourage with Outlook for Mac OS X, I couldn't help but agree with Larry Dignan's assessment of the Nokia deal:

Simply put, Nokia and Microsoft are the equivalent of two St. Bernards that are forced to run in 90 degree heat and high humidity. They're big. They're winded. And they could knock you over--if they could only catch you.

I happen to compete with Microsoft in one area that it is growing from strength to strength (SharePoint), but for everyone else, Microsoft is becoming a footnote in the history of computing.

Sure, it's still big. Yes, it still competes vigorously. But with the odd exception (Bing, perhaps), Microsoft just doesn't seem to have the energy to compete anymore. One indication of this is that most of the dirt that Roy Schestowitz digs up on Microsoft is from old court records. It's as if Microsoft struggles even to be nasty anymore.

So Microsoft dresses up tired press releases like the Outlook on Mac announcement "like they've been working in the lab for some time now and have had some technological breakthrough that allows them to bring Outlook to Max OS X," as ZDNet's Sam Diaz puts it. The breakthrough would be putting Outlook in the cloud, Google Apps-style. It would be creating products that wow in the same way that Apple's do.

But Microsoft doesn't wow in its traditional businesses. Surface, yes. Project Natal, yes. But there doesn't seem to be much creative gas left in the enterprise computing tank.

And perhaps that's the point. How much innovation can there be, really, in Office? Or the Windows operating system? These are old paradigms that don't need window dressing: they need the window shattered and shifted to completely new methodologies of computing, similar to what Google (Web) and Apple (entertainment) are doing.

The desktop is a tired metaphor. This is why Google's Chrome OS, while not necessarily manna from heaven, is a welcome change, and just the sort of thing that Microsoft should be investing in, but is structurally, financially incapable of promoting in the same way and to the same degree that Google does. Because Microsoft dies if it innovates its way out of its Office and Windows businesses too quickly.

Google may be resorting to some of Microsoft's most frustrating practices, using its strong products to prop up weak siblings, but at least those siblings promise a different mode of computing.

Apple offers a premium "desktop" experience that makes old feel new. Google replaces the "desktop" with the Web. Open source commoditizes and then innovates enterprise IT, as Accenture's Alex Wied recently wrote. What does this leave Microsoft?

It leaves Microsoft desperately needing to refresh its approach to the market. Immediately. It can live off its billions for a long, long time, but it risks becoming like CA: ever-present but not very relevant.


Follow me on Twitter @mjasay.

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can follow Matt on Twitter @mjasay.
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by forever4now August 15, 2009 1:35 AM PDT
Microsoft still invests heavily in technology that is intended to lock users into the Microsoft ecosystem (e.g. .Net, Silverlight, Direct3D, Office/Outlook, ...). Consumers & businesses are beginning to realize that they ultimately lose, when the support these products & practices (innovation is slow; prices & operational costs are high; device/OS flexibility is lost).

I'm sure Microsoft's competitors are happy to see Microsoft continue to waste their time & resources on these subversive lock-in tactics, since the writing is clearly on the wall that open standards & powerful web apps are the way forward for the computer industry. Wasted diversions at Microsoft create opportunities for other companies to get their products established within the new cloud paradigm.
Reply to this comment
by TechG2009 August 15, 2009 2:09 PM PDT
Please mention one other company that is successful and is not locking users in its ecosystem. Apple, Google have a balance between locking users in their ecosystem and supporting open systems, Microsoft is not any different. What you are advocating looks good on the paper but I am sorry so say, is just a pipe dream.
by t8 August 15, 2009 8:22 PM PDT
@ TechG2009

Oh that is a shame. It is a dream.

OK, lets all stick with Windows and viruses. The game is over guys.
The cloud is really cloud 9. A dream.

Pity about that. I was getting real excited about Chrome and the Cloud.
by Hugh_Isaacs_II August 15, 2009 10:37 PM PDT
Well when you think about it Silverlight is somewhat of an exception to this rule, being able to run on Mac, Linux and the web.

It's funny though, all of the products you listed rely on .NET (Direct3D, Silverlight, Office, Outlook), I've said it to people before Microsofts #1 product is .NET, it's what they've relied on for ages. It fuels most of their products, it's why Windows switched from DOS to the NT kernel, it's why a lot of game developers favor Windows and the XBox 360, etc...

I think what we need is an open source alternative to .NET

I'd suggest the Android Dalvik VM but a lot of people would argue against me for that (could just make a VM that's compatible with Dalvik bytecode), and as a Silverlight competitor someone could just port Dalvik to Googles Native Client.
by Random_Walk August 16, 2009 7:29 AM PDT
"It's funny though, all of the products you listed rely on .NET (Direct3D, Silverlight, Office, Outlook),"

SharePoint and (now) Exchange does too (at least on the back-end).

"I think what we need is an open source alternative to .NET "

Look up Mono - it's a direct (but lagging) port of it.

Now, if you mean a universal language? Heh... That's what Java's been doing all this time (and explains why it is more widely used).
by sanjayb August 19, 2009 2:22 PM PDT
"I think what we need is an open source alternative to .NET "

Ever heard of Java and J2EE? That is open sourced. .NET was a rip off of J2EE.
by obvio-capitao August 15, 2009 3:49 AM PDT
Computer manufacturers are starting to use Linux to get better prices from Microsoft.

If Microsoft keeps the $100 price tag, they will start to ship netbooks and laptop with Linux. They don't have to sell many units -- the possibility of loosing 10% of market share to Linux scares the hell off Microsoft.

If Microsoft slashes their prices by, they will be able to keep their monopoly. But that would mean loosing their huge profits -- and investors won't like that.

So my guess is that Microsoft will keep their prices high and manufacturers will continue pushing Linux.

We won't see Linux surpassing Microsoft anytime soon, but it will definitely get a significant market share.
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by lkrupp August 15, 2009 2:00 PM PDT
Yeah, I can just see Joe Sixpack and Ma and Pa Kettle booting into Linux. Yeah, right.
by TechG2009 August 15, 2009 2:12 PM PDT
Linux is NOT free and is not providing better value overall(support, useablity, features, etcetc). If industry would have believed what you said, they would have changed to Linux but how long has Linux been around?
by Random_Walk August 15, 2009 5:59 PM PDT
"Linux is NOT free"

http://www.linux.org , or http://www.ubuntu.org, or http://www.fedoraproject.org - download it at your convenience for $0.00.
by t8 August 15, 2009 8:26 PM PDT
@ lkrupp coment:
"Yeah, I can just see Joe Sixpack and Ma and Pa Kettle booting into Linux. Yeah, right."

Actually I can see Linux booting a browser (like Chrome) and using Web Apps really taking off because of its ease of use, cheaper price, and because we are all use to the Web.

Windows will seem difficult in comparison to a browser and web apps. Guess what the underlying OS for the browser is? It begins with L.
by tm_anon August 15, 2009 10:07 PM PDT
@lkrupp

Strange that one of my neighbors, a 50+ year old retiree, was having trouble with Windows XP due to maintenance, viruses, malware, Windows Update forcing her into IE8 and general lack of knowledge in how to work her machine past a certain point.
I went in and fixed her machine, made the maintenance easy to do, replaced her AV, replaced IE with FF, replaced Adobe Reader with Foxit. In general, I rebuilt everything from the ground up for her machine.

Then I booted her second computer into Linux Mint, I happened to bring the CD with me for her to try. She loved it, it's easy to use, easy to set up, easy to install apps, easy to search for apps.

Pretty sure if Joe Sixpack and Ma and Pa Kettle were booting into Linux, they'd be in much better shape. When they'd bring in their machine because of a problem, you'd at least know it was something fairly major.

@TechG2009

Please tell me, how is Linux NOT free?

It's more usable for every person I've gotten to try it, has more features (don't believe me? Randolm_Walk gave you a list of webpages you can take a look at for features), has great support (need some one on one help? Canonical does paid support. Plus you'll never have to pay for the OS or other apps).

Industry is stuck in a Windows world but that's changing.
by knowles2 August 17, 2009 4:37 PM PDT
I understand why Linux would not be free in the commercial sector, yes the software free but retraining of stuff an buying compatible software for linux is bound to cost. Also there can be a lack of support for linux.
by Twitter-DavidGaleUK August 15, 2009 3:50 AM PDT
Microsoft continues to consume itself from the inside out. Product teams that are focussed on their own short-term targets openly compete against other internal product teams. The cost? It destroys Microsoft's credibility to deploy its potentially excellent product stack in anything like a strategic way.

Worse still, we found that trying to engage in a strategic partnership with them on a new IT security concept was like jumping into bed withthe CIA. Not pleasant. www.tadag.com
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by monkeyfun14 August 15, 2009 7:16 AM PDT
The problem here is people have this extremely high confidence that Google's Chrome OS is going to make everyone hop ship. The problem is sure everything being on the web looks good on paper but that doesn't mean it necessarily works due to hardware and bandwidth restrictions.

The reason why OSX and Windows are attractive is because they are easy to use and allow YOU to control what happens. It's easier to troubleshoot a problem on your own machine then it is to sit and wait while your cloud provider tries to troubleshoot their own.

Also I think it's a bit early to be predicting the death of Microsoft it would be understandable if they were pulling in maybe a few hundred million but this company is still a leader in pulling in profit and considering they have woken up look at Windows 7, Office, Bing, etc all getting rave reviews the change you are looking for is already here.

Their is also the idea of not giving Microsoft credit where it is due. I understand OSX is a great OS but you seem to completely ignore what Windows 7 has brought to the table in terms of fun and ease of use.
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by monkeyfun14 August 15, 2009 8:58 AM PDT
Note i'm defending the desktop in general.

On both OSX and Windows.
by superswiss August 15, 2009 9:26 AM PDT
What I would add to this, is the web is great and all, but so far one still needs a Desktop to get to the web in the first place. Until we actually can see and touch Chrome OS, the jury is out. There are a lot of applications that work well on the web, but there are also lots of applications that don't. OSX and Windows do it all. You can work in the cloud, but you can also run desktop applications. These things seem to have a way to come around. Just look at Google Native Client. All of a sudden, native code running on the client is in again.
by Random_Walk August 15, 2009 9:40 AM PDT
re: Windows 7: The reason it brought "fun and ease of use" to the table is because they mimicked OSX (and similar WindowMaker concepts from Linux) by doing so. Seriously - the Windows 7 taskbar only lacks dynamic resizing, unboxed icons, and dropping the start menu... then it'd be a Dock that got the top taskbar welded into it.
by monkeyfun14 August 15, 2009 10:23 AM PDT
@Random_Walk

Maybe but it takes the docks shortcomings and improves on them quite a bit.
by monkeyfun14 August 15, 2009 10:25 AM PDT
One of the main issues i've always had with the dock is the lack of intuitiveness when trying to open more then one instance of a program.
by SlimGem August 15, 2009 2:44 PM PDT
Other than the dock issue, I have to agree with 'monkeyfun'. I hate myself.
by Random_Walk August 15, 2009 6:07 PM PDT
"One of the main issues i've always had with the dock is the lack of intuitiveness when trying to open more then one instance of a program."

Some programs, sure - though Firefox and the like have that built-in (e.g. "File -> New Window"). Others (e.g. Finder), you simply right-click, and there's "New finder window".

OTOH, you have to remember - you don't find it intuitive because you likely have learned to use a computer with Windows (like most folks), and are imprinted with that as your paradigm.

Any OS that you're not familiar with will take a bit of time to get used to... no matter which one you started on first.
by tm_anon August 15, 2009 10:16 PM PDT
@monkeyfun14

For the moment, you have to take MS Office out of the line-up. Unless I've missed the news, it's still banned from being sold due to patent infringement.

Otherwise, I'd like to see a hybrid approach between web and desktop apps. Desktop apps would need to use a standard form of document type (i.e. .odf). It would also need to be treated in a very uniform way. If the standard needs to be rewritten to force everyone to make it readable by everyone else then so be it (might be necessary due to MS' horrible treatment of the standard).

I'd like to be able to save my documents on more than just a single machine while still being able to save my documents on my machine. Perhaps treat documents like XMarks treats bookmarks. When you change them on your client machine, the cloud server wants to update their own version to match.
by kojacked August 16, 2009 11:38 AM PDT
"For the moment, you have to take MS Office out of the line-up. Unless I've missed the news, it's still banned from being sold due to patent infringement."

You tool; it's just Word and they have 60 days before it's banned which Microsoft won't let stand regardless if they win on appeal or have to pay. It's comments like this (and Matt's entire biased article) that make the Microsoft haters sounds like idiots.

Sure Linux, the cloud, and open source have a lot of potential but they are not even close to dominant yet. Apple is winning more people over to their closed system than any player in any market in the open source world.

Sounds like sour grapes coming from Matt who's product is getting it's ass kicked by Sharepoint.
by tm_anon August 16, 2009 6:41 PM PDT
@kojacked

Wow, calling me a tool, that really hurt. Especially since I made a valid point and you had no rational argument against it.

MS Office, without Word, doesn't exist. They can't sell it. Every article I've read about the ban has spoken of it as if it is immediate and I'll trust the guys getting paid to report tech news over yours since they can be sued and you can't.


By the way, it's MS making patent infringement claims all over the place and then getting sued for patent infringement, making proprietary tech and then claiming it to be a standard, paying people to comment in their favor on tech sites and having a buffoon as a CEO that make MS supporters look like idiots.

Notice I said 'look like idiots'. That doesn't mean I'm calling anyone an idiot, except perhaps those who insist on calling others names like yourself.
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by cvaldes1831 August 15, 2009 9:15 AM PDT
Apple's focus isn't really the desktop these days. They've already moved on to where the war will be fought over the next ten years: handheld devices.
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by UrbanBard August 15, 2009 5:59 PM PDT
We'll have to see what happens after Snow Leopard is released and 64 bit applications start appearing in droves for the Macs. Apple has an ideal marketplace to move its applications into the mainstream: the iTunes App store. The App market has been moribund, but that is ready to change. Apple merely needs more data centers before it can start selling Third Party Mac Apps. More may be happening under the surface than you know.
by hafenbrack August 15, 2009 9:06 PM PDT
WIndows has a 64 bit OS for several years now, with almost all new systems shipping with 64 but Vista home premium, and that will continue - accelerate with W 7. SOME applications have been coded in 64 bit, but it takes a significant amount of time to "switch' applications from 32 to 64, since most companies are working on 2 or more versions ahead when they release one. Just because Macs will have a 64-bit OS won't have the impact. Once the majority of the corporate world switching, which is starting to take place, THEN you'll a dramatic increase in pure 64-bit applications. The home, Mac market, will really only be a blip on the radar for the software companies, since the corporate world is 90% Windows based.
by Random_Walk August 16, 2009 7:42 AM PDT
"WIndows has a 64 bit OS for several years now"

Linux has had the capability since the first 64-bit capable processors came out (w/ the x86_IA64 and x86_64 kernels in 2000-2001?). In fact, the early Itaniums and AMD 64-bit chips could only run one OS to use the chip fully until Microsoft caught up a few years later on the server side (starting with Win2k3, I believe), then later on still with the desktop side (starting with XP 64-bit, which came out IIRC in 2005-6?).

OSX has always used 64-bit components throughout its lifetime (which is why it benchmarked faster on average :) ). The diff in OSX is, Snow Leopard represents the first pure 64-bit OSX version. Apple took a gradual approach, which allows existing OSX apps to take advantage of 64-bit tech without having to be 64-bit in nature (though most of the biggies pretty much are these days, IIRC).

Microsoft should have marketed/priced their 64-bit systems more aggressively themselves, IMHO. I've lost count of folks I know who have a Core2/Quad2/etc, but didn't think they could run a 64-bit OS. Why? Because the OEMs pre-loaded a 32-bit version of Windows on the thing... most likely because the OEMs didn't feel like paying the higher price for the 64-bit licenses. In fact, the OEMs never really coughed up 64-bit as an option for consumer use...
by kojacked August 16, 2009 11:55 AM PDT
"In fact, the OEMs never really coughed up 64-bit as an option for consumer use... "

Have you been to Best Buy in the the past year or two? I don't think so. It's more common now a days for systems to ship with 32-bit only in cases that the hardware doesn't support 64-bit (drivers) or on systems that expand more than 4 GB of memory. BTW, it doesn't cost any more for 64-bit Windows over 32-bit. Thanks for the FUD you troll.

32-bit Vista: http://store.microsoft.com/microsoft/Windows-Vista-Business-with-SP1-32-bit-Upgrade/product/82A7DC44
64-bit Vista: http://store.microsoft.com/microsoft/Windows-Vista-Business-with-SP1-64-bit-Upgrade/product/5570E363

Both $195...

2005-6 for XP 64-bit? LOL! Try 2002-2003 you tool:
Windows XP 64-Bit Edition for Itanium systems, Version 2002 ? Based on Windows XP codebase, which was released in 2001.
Windows XP 64-Bit Edition, Version 2003 ? Based on Windows Server 2003 codebase, which added support for the Itanium 2 processor, was released on March 28, 2003.

From Wikipedia: http://en.wikipedia.org/wiki/Windows_XP_editions#Windows_XP_Professional_x64_Edition
by Random_Walk August 16, 2009 3:52 PM PDT
"It's more common now a days for systems to ship with 32-bit only in cases that the hardware doesn't support 64-bit (drivers) or on systems that expand more than 4 GB of memory."

Recently, they have (though even on systems with more than 3.5GB, you would, until recently see 32-bit + PAE Windows boxes in abundance.

". BTW, it doesn't cost any more for 64-bit Windows over 32-bit. Thanks for the FUD you troll. "

Can you show me where I even bothered to compare prices between the two - at all?

Oh, you suddenly can't?

Literacy... you should try it sometime, especially before launching baseless slander from something I hadn't even written.

"Windows XP 64-Bit Edition for Itanium systems, Version 2002"

You may want to hit up that literacy thing again... the following come from your own cite:

" It {Windows XP Professional 64-bit Edition} was released on April 25, 2005."

This was the exact desktop version I was talking about... not "workstation" or some such semantic crap, but the consumer-side desktop OS.

So who was the "tool" again, kid? Oh, that's right - you. ;)
by a3th3r August 17, 2009 7:40 AM PDT
Not really taken sides here but, to answer your first question "Can you show me where I even bothered to compare prices between the two - at all?," you stated "Because the OEMs pre-loaded a 32-bit version of Windows on the thing... most likely because the OEMs didn't feel like paying the higher price for the 64-bit licenses." in your first post.

Second, to quote the same source you partially quoted "Two versions of Windows XP 64-Bit Edition were released:

Windows XP 64-Bit Edition for Itanium systems, Version 2002 ? Based on Windows XP codebase, which was released in 2001.[citation needed]
Windows XP 64-Bit Edition, Version 2003 ? Based on Windows Server 2003 codebase, which added support for the Itanium 2 processor, was released on March 28, 2003.[21] "

You were reading in the section labeled "Windows XP Professional x64 Edition." The above quote is from the section "Windows XP 64-Bit Edition" directly above it.
by kojacked August 17, 2009 12:27 PM PDT
Thanks a3th3r. Its seems as though RW only believes in semantics that favor his perspective rather than the reality that is.
by davidwb August 15, 2009 9:29 AM PDT
Back before the Bush administration patted Microsoft on the butt instead of slapping it with a substantial punishments, one of the possibilities being discussed was breaking the company into different segments. It is ironic to think that almost 10 years later Microsoft may have been better off with that punishment instead of the minor one the Bush administration settled for. Had Microsoft been dismembered, the applications division might have been hungry and forced to actually innovate. The OS division might have avoided Vista. Instead we are watching a mighty giant fall apart piece by piece.
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by BrandonTV August 15, 2009 9:35 AM PDT
You gotta love the amount of Apple fanboys who comment here. Microsoft isn't "locking" anyone into stuff. People just prefer to use what they know works. There are alternatives to Office, Outlook, and all that stuff. And people know it. Most people just dislike change(not the monetary change). So please, fanboys, stay out of serious conversations.
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by tm_anon August 15, 2009 10:22 PM PDT
You gotta love people who don't read the comment and won't even login with a name.
by Random_Walk August 16, 2009 7:53 AM PDT
"Microsoft isn't "locking" anyone into stuff"

Yes, they do, but so do most vendors... You can't run OSX apps on Windows either, after all. HEre's what you missed:

The file format specifications and API's for MS Office products are not fully published (at least not enough to make a workable file reader/writer).

Exchange is the only mail server that stores its email in a locked-down and incompatible database/format (as opposed to simple ASCII formats, like every other mail server on the planet uses), and does not use an open standard for its primary groupware component (MAPI is only partially published, and is proprietary).

I could go on, but these will suffice, I believe.
by stickfu August 16, 2009 12:42 PM PDT
@kojacked

read that, good article, I agree with many points it presents, xorg does need an overhaul, I will admit I`ve had a distro or 2 that xorg was just clunky and could never get the same res (sometimes colour depth would suffer a bit too, had problems resolving it) as i would in Windows or OSX, then again nothing`s perfect, what do you think?
by Mr. Dee August 15, 2009 9:43 AM PDT
Matt, all you do is a good job at typing complete crap. You defend Apple that uses the same paradigm as Microsoft and your beloved Redhat Linux that you attack, yet Apple can't budge past 1% market share world wide. Google is still stuck with a 1 trick pony. Microsoft has numerous innovative technologies that benefit everyone. Windows, Office, Windows Live, Windows Mobile, SQL Server, Exchange, SharePoint, ZUNE HD, Surface, Media Center and so many others too many to mention. What is Apple known for? A gimmicky OS and a cellular phone. Microsoft Office happens to be the most popular productivity suite on the Mac and Mac users are always asking for what Windows has 'Outlook' and SharePoint integration.

It seems you write this nonsense for nonsense sake and keep backing yourself into a corner. If you criticize Microsoft, you end up criticizing the same things you love Google, Apple and Redhat, because they are in some way or another in Microsoft's core markets. Why do you think Eric schmidt had to come off Apples board of directors? Because he is an employee at a Company who happens to create an operating system that Steve Jobs admits competes against his along with a web browser and smart phone operating system.

Matt, you need to stop criticizing Microsoft and take a look at Google, because it seems to me the one trick pony Company that is aiming to be like its idol 'Microsoft'!
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by Random_Walk August 15, 2009 9:47 AM PDT
Wow - put down the koolaid already.
by Mr. Dee August 15, 2009 11:41 AM PDT
Put down? I just mixed a jug of Shackleberry Fin and emptied the packet too.
by Mr. Dee August 15, 2009 11:44 AM PDT
Put down? I just mixed a jug of Shackleberry Fin and emptied the packet too. oh and I had forgotten XBOX and Tablet PC and IPTV.
by stickfu August 15, 2009 12:51 PM PDT
Wow now that`s cut `n paste Da Co$ta at it`s finest!
by pentest August 15, 2009 1:31 PM PDT
Trying to get a free desktop Andre? What happened to the laptop?
by stickfu August 15, 2009 2:11 PM PDT
BTW love reading your twitter page, always good for a laugh, Oh and Matt watch out! Andre`s gunning for ya!..

http://twitter.com/adacosta

scroll down for more hilarity, he`s even trying to score a free iphone from somewhere Ha!
by monkeyfun14 August 15, 2009 2:38 PM PDT
@stickfu

Is that how you get your kicks harassing people you don't know on a comment board?

Please find a new hobby sir.
by stickfu August 15, 2009 2:50 PM PDT
@monkey

Just exposing FUD young sir, interesting you don`t find hypocrisy in his posts, you`re not shilling too are ya?
by monkeyfun14 August 15, 2009 3:25 PM PDT
@stickfu

His posts may seem over the top at times but no reason to harass him or accuse him of things which may not be true.
by stickfu August 15, 2009 3:29 PM PDT
How`s this, do your own research, ask the tough questions, that`s all I ask
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by Random_Walk August 15, 2009 9:43 AM PDT
re: "Google may be resorting to some of Microsoft's most frustrating practices, using its strong products to prop up weak siblings, but at least those siblings promise a different mode of computing."

To be fair, Bill Gates had a huge flurry of this in the early 2000's and before - tablet evangelism, ".Net", BOB (yeah, I know, but it counts), things like that.

I agree that the desktop in general has (insofar as Microsoft is concerned) run out of steam, though they have been pimping a new version of the touch-screen eye-candy (you know, like the iPhone only bigger) of late...
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by smrterthnu August 15, 2009 9:59 AM PDT
Everyone is way to quick to judge Microsoft or call it the end of Microsoft. Sure, they're having an off year (so far) and because of this we're calling it over? They have a lot of new products coming out later this year and early next year. Zune HD, Windows 7, Office 2010 w/cloud, Natal, a better Xbox live environment with Zune marketplace integration. And speaking of Zune marketplace, when (not if) the integration between PC, Xbox, WinMo and Zune is complete, it could be a game changer. They could also allow other vendors to use the service (Palm).

There are also non standard products that have gained huge market presence that we typically don't hear about. For example, Microsoft's VoIP solutions are running a close hand to Cisco and Avaya. They are quickly gaining market share and have some innovative components.

And don't think they're going to sit idly and watch the handheld market go FULLY to Blackberry, Apple and Android. They have winmo7 which nobody's really seen. If that OS fails, which I agree it easily could. Expect them to use some of those billions to buy a RIM or PALM.
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by jgrab1 August 15, 2009 5:33 PM PDT
smrterthnu (ha!) said:

Everyone is way to quick to judge Microsoft or call it the end of Microsoft. Sure, they're having an off year (so far) and because of this we're calling it over?

No, that's not why we're calling it over. I was saying all of this three years ago at least, when MS was in "good" shape. Superficially, maybe the numbers look good, the way car stats looked good for Detroit in, say, 1971. But the writing is definitely on the wall. And MS is behaving the same as Detroit did...
by ppgreat August 15, 2009 10:39 AM PDT
At Microsoft, maintaining the monopoly is Job 1.
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by sodablue August 15, 2009 10:57 AM PDT
This is nonsensical.

time to put away the kool-aid.
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by Splashes August 15, 2009 10:59 AM PDT
I think Matt's point is that Microsoft is afraid to innovate when the innovation may threaten a significant revenue stream. And I don't think that point is arguable -- the two areas where they have innovated least are Windows and Office, their cash cows.

Here's an essay that includes some relevant explanations: http://www.roughlydrafted.com/2009/08/15/why-cant-microsoft-develop-software-for-zune-hd/

The last two paragraphs:
"Death kills everything that does not regerminate with a fresh mix of DNA and rise from its former ashes to try new things. In the mid 90s, Apple had to die to live again. And today, Microsoft is a large cancerous parasite being leached to death by a series of attacks launched by quicker and more innovative rivals.

Today?s Microsoft will die, just like the old IBM monopoly and the British Empire and the Caesars and the dinosaurs. The only question is, will Microsoft reinvent itself and live on in a new form, or sink into history as one of the most troublesome diseases to ever hold back the progress of our society?s technological advancement?"
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by monkeyfun14 August 15, 2009 11:25 AM PDT
But the problem is people don't truly understand what innovate means. That's the main issue with fanboyism because the definition of innovation changes depending on the company who made the product.

For example to an Apple or Linux fanboy it wouldn't matter what Microsoft does it would never be considered innovation and vice versa.

Then there is the fact of the term innovation being totally misdefined altogether.

Alot of people think Innovation means to create a whole new product which is not the case that would be invention.

Innovation is taking a previous idea and putting your own spin on it. Which is exactly what Microsoft has been doing all along. Recreating things the way they feel are best.

Prime examples of this confusion are with the Zune HD they make a truly intuitive touch screen device change up the gui make it fun to use but instead of it being referred to innovation as it is. It is referred to as copying which it is not.
by amlex614 August 15, 2009 12:31 PM PDT
@monkeyfun14

You are spot on with the definition of innovation - for those that are confused you might consider reading "The Art of Innovation" by Tom Kelley and Jonathan Littman. Innovation can be as simple as using an existing product in a manner that it wasn't designed for ...
by Mr. Dee August 15, 2009 5:53 PM PDT
Innovation is best described as a breakthrough. Its something you end up using and say, 'how did I ever do without this?' Microsoft has done this over and over again with Windows, commoditizing computing, making it affordable for everyone, bringing information to everyone, building a rich ecosystem that even the Linux weirdos benefit from.
by tm_anon August 15, 2009 11:43 PM PDT
@monkeyfun14

I've yet to see MS take an idea and put their own spin on it. I've seen and used the Zune, I've also seen and used an iPod, they're virtually the same device except one has an app store, integrates with cross platform (almost fully) software, created the market (PMPs were an afterthought until the iPod) and has helped to bring about a global shift in what computing can be (iPhone wouldn't exist without the iPod, Smartphones wouldn't be a big thing without the iPhone).

It's a good device but not good enough. They're still copying rather than leading with it.

In order to be innovative, you've got to be inventive. Innovation means inventing some new way of looking at/using something. Innovation could also mean adding to an already existing device in a way that surprises.

Apple took the idea of a media player and surprised us all with just how good it could be. They took the lead.

What MS needs to do is go beyond the media player. Maybe, instead of making yet another PMP, MS could make a personal streaming player. Create a device that allows you to control the media from your home machine without being home. Allow it to play through your device with a small amount of storage for buffering purposes, maybe for those moments you don't have a good connection.

Then they can make the device smaller than anything on the market, just large enough to use 3G as mobile broadband and have some speakers and screen.

That's innovation, it's the same idea turned on its side. Rather than store it, stream it.
by Twitter-DavidGaleUK August 15, 2009 11:48 AM PDT
Oh, please! Come on, guys! We can do better than this. Enterprise IT is not about the desktop, the browser, a handheld device, this app or that app. It's about how the product stack integrates. If Microsoft could stop fighting their internal battles, forget about positioning themselves ready for split up and sell off, and actually focus on partnering with people who understand how to integrate their product stack better than they do, they would wipe the floor with the opposition.

The opposition better hope that Microsoft stays myopic, greedy and insular for as long as they want to be in business.
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by Rich__B August 15, 2009 1:04 PM PDT
Innovating does not mean (i) copying or (2) merely adding some obvious feature to someone else's product or service concept. It is similar to inventing, but innovation also connotes that the invention is successfully applied to a product or a service. Many inventions have technological merit but never make it to the marketplace. Success in the marketplace can result from innovation, from predatory market practices, and/or from good marketing.

It seems to me that adding HD to an hand held video player is a pretty obvious thing to do and therefore would be called evolution as opposed to innovation.
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by monkeyfun14 August 15, 2009 2:04 PM PDT
Just because something is obvious doesn't make it any less innovative. If it was obvious then one would think it would of been done years ago. No?
by stickfu August 15, 2009 2:35 PM PDT
The HD monicker is also misleading, most people will think it`s capable of displaying HD video on it`s screen.
by hafenbrack August 15, 2009 9:16 PM PDT
@stickfu:
I would disagree anyone expecting HD on a 3.5" screen is delirious. Actually the ratio of resolution on the Zune HS as compared say to my 52" HD tv, the amount of pixels per square inch is better on the Zune, but it stores and can play HD movies on my HD tv as well as HD Radio. That spells HD to me.
by Mr. Dee August 15, 2009 10:34 PM PDT
If he can't afford it, he tries to disparage it, its that simple.

stickfu + needs to get a job = make a money + buy what you want = stop moping and ranting over stuff you don't have
by stickfu August 16, 2009 3:49 AM PDT
Tsk tsk Andre, I was under the impression you were grooming yourself (or maybe M$ is) to be a journalist of reputable standing?, what will your readers think (what will M$ think?!, no more goodies!!) sinking to such a low, attacking posters who ask valid questions regarding your sincerity. I`m sure you realize the cat`s out the bag, no more fooling anyone with your "trusted" reviews and slanted vitriolic posting, maybe this is a good thing, perhaps now you can try the non biased route? a little less payola.. a lot more ethics? who know`s you may even grab a whole new set of readers?

No need to thank me, I consider it a public service
by Mr. Dee August 16, 2009 7:12 AM PDT
Your conspiracy theories are so lame they are starting make you sound schizophrenic. The fact that the majority of technology journalist reviews conclude that Windows 7 is an exceptional release, you don't have read my opinion to believe it or not. So what are you gonna start doing? Say that Michael J. Miller, Ed Bott, Thom Holwerda, Paul Thurrott, Emil Protalinski, Mary Jo Foley, Preston Galla, me and every other sensible journalist here on CNET except for Matt are all shills because they approve of and recommend Windows 7?

Sorry, but I refuse to believe users will believe a no name, nobody like you over those journalist.
by peterpulmonary August 15, 2009 1:48 PM PDT
"Google replaces the "desktop" with the Web. Open source commoditizes and then innovates enterprise IT"

come on, Mr. Asay, chrome has 2% market share!
how is it possible for you to get paid for writing this nonsense?!
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by TechG2009 August 15, 2009 2:16 PM PDT
I would like to ask Mr Asay if his own company is following the advice he is giving. They are providing one of the oldest technologoes (CMS) in form of one of the oldest deliver mechanism (on-premise). So i am confused why someone who is this hypocrate, been given an opportunity to write about something that is not even relevant to his experience. If his company was buidling a large scale cloud CMS and shown innovation, his argument would have come through as more credible.
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by sting7k August 15, 2009 6:13 PM PDT
I love how we don't even know exactly what Chrome OS is going to be like and yet it's already destroying the desktop, notably Windows.

Enterprises like what they have. Office is a powerful tool and works. What will an enterprise do if a line gets damaged and they can't get on the net for a day or something else happens? How will they access their cloud software?
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by Jeff Putz August 15, 2009 8:40 PM PDT
Every article you write seems to be oblivious to what Microsoft does in the development space. No one has as mature and robust a platform (including the tools) than MS's stack.
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by iBuzz August 16, 2009 12:09 PM PDT
Not in the mobile space. Microsoft's development tools and libraries are a joke compared to what Apple has delivered with Xcode, Cocoa Touch, UIKit framework, and the excellent profiling tools.
by turtlejamm August 15, 2009 9:13 PM PDT
...I guess it all depends on what your definition of mature lol
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About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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