August 20, 2009 1:53 PM PDT

Microsoft's curious lack of ambition in mobile

by Matt Asay
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Microsoft says "There's plenty of innovation in the pipeline" for Windows Mobile. For those of us who haven't considered a Windows-based phone since the iPAQ's decline, the real question is, "If Microsoft has an innovative Windows Mobile experience, why is the company keeping it such a secret?"

Seriously, where has Microsoft been on mobile? It's a market that the best companies in the software industry are targeting, including Google and Apple, but Microsoft seems to be AWOL. CNET's Ina Fried notes some wishful thinking on Microsoft's part to get back in the smartphone game, but I'm not seeing it.

As Mark Sigal highlights, Google is approaching mobile with an open approach; Apple is winning with a closed approach; and Microsoft? Well, Microsoft seems to still think the phone is a PDA, with little innovation (closed or open) that would trouble a consumer to bother buying a Windows-powered mobile device.

Perhaps that is why Microsoft's smartphone market share has now dipped below 10 percent and shows no sign of resurrection.

This isn't about open source versus proprietary software. It's about focus, something that Microsoft seems not to have given mobile in a long, long time. Steve Ballmer was willing to spend roughly $45 billion on Yahoo to compete in search, but has managed only a $500 million acquisition of Danger to compete in mobile.

This despite advertising, computing, and (of course) communications moving to mobile devices. What has Microsoft been thinking? Or not thinking, as the case may be?

Yes, Microsoft is now partnering with Nokia to up its mobile game, but ZDNet's Larry Dignan is spot on calling this a "dog of a deal born from weakness," not strength.

What Microsoft needs is to innovate. Or at least to copy someone else's innovations. But it appears to be doing neither. This is inexcusable for a company with its resources and development talent. Microsoft is a great company, one that occasionally turns an industry on its head, as it has with SharePoint to the stodgy Enterprise Content Management market.

But Windows Mobile? It's lame.

This isn't a demand that Microsoft miraculously achieve mobile perfection. Heck, the iPhone has taught us that, great as it is, "good enough" is more than good enough (e.g., it comes with an underpowered camera...that everyone seems to use).

Microsoft is fond of talking about just how much it spends on research and development. But it's time to stop talking and start shipping. I've heard rumors of an exceptional mobile product on the way from Microsoft, but that's all I ever hear: something "in the cooker" that will "rock the world soon!"

As Morrissey used to croon for The Smiths, "How soon is now?"


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 The_happy_switcher August 20, 2009 2:26 PM PDT
Because they saw what happened with Zune and don't want to get humiliated again.
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by slapppy August 20, 2009 3:49 PM PDT
What do you mean again. They still getting humiliated every quarter by Apple.
by calculatorwatch August 21, 2009 9:07 AM PDT
honestly i think the zune proves the opposite point, sure the original 30gb was a half-assed attempt but when microsoft decided they really wanted to compete they made something just as good or better than the ipod 80 and 120, and the zune hd is definitely gonna be a decent competitor to the ipod touch

whether or not people buy them is a different story, one about the fact that microsoft failed on the first attempt, got into the game too late after apple already dominates the market, and hasn't had any real good advertisements for the zune, plus no one really thinks microsoft can make a good product right now

unfortunately i think they're probably going to wait too long to really try to do well in mobile and they will put out a good product eventually but it will suffer the same fate as the zune
by halfNakedPappy August 21, 2009 10:12 AM PDT
I still can't run a Zune on my Mac. It's not an option. Microsoft's future success is hindered by their desire to make everyone use Windows.
by skatemusiclife64 August 22, 2009 11:09 PM PDT
I don't think the Zune HD will make a dent in iPod sales. Apple kills the MP3 player industry. The Zune HD, even with it's nice hardware, doesn't work with macs, can't join many wifi networks, and most importantly- apps! The iPod Touch and iPhone are so successful because of the app store. Sure Microsoft can make an app store, but they will join Palm, RIM and Nokia. A small, unsuccessful app store.
by CrashPad63 August 20, 2009 2:29 PM PDT
Applerocks, you putz cant tell a winner for the hole in your head.
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by drksilenc August 20, 2009 2:44 PM PDT
crapple this crapple that...
i have a winmo phone. its not for the every day consumer and thats the problem. its for tech geeks that like to control how the phone works. i quit using stock oses on the phone a long time ago and i have a hole lot more functionality than you cute little explosive device
by themrwhite August 20, 2009 4:15 PM PDT
lol, more control, that's laughable.
by The_happy_switcher August 21, 2009 11:00 AM PDT
Yes, Apple does rock. Glad to see you are now coming around. Rock on, dude.
by ReasonableGuy August 20, 2009 2:37 PM PDT
Windows Mobile was developed as a copy-cat of the Palm Pilot.

It did, eventually, manage to kill the Palm Pilot because of the allegiance of the corporate IT drones to anything Microsoft. (Keeping Microsoft products running created plenty of IT jobs.)

But Windows Mobile is a boring, poor user experience, product. I've never met anyone who was excited by it.

Perhaps Microsoft sees too much competition -- iPhone, Palm Pre, Android -- to want to bother. Maybe the lack of sunshine in Redmond has finally caused such massive depression that no one cares anymore.

Seriously, I don't think that Microsoft will stay out of this market for long. Eventually it will find a way to co-opt what others have done, turn it into a Microsoft product, and reenter the market, all the while proclaiming that it has developed something new, innovative, and revolutionary.
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by dhavleak August 20, 2009 4:40 PM PDT
Well, MS isn't "out of the market" in a literal sense -- there's WM6.5 devices about to be launched any day now, and WM7.0 in the pipeline -- so it doens't lack ambition either. But then, there's no lack of suckage either (and I say this as a WM6.1 user).

Here's what I suspect: MS might actually have realized / taken inventory of all the work they need to do in mobile. From reworking their UI paradigms, to improving how they update phones, to giving carriers less control of the experience, etc. etc. -- and fixing everything is a long-term thing. They probably know that they are going to continue to lose ground while they turn things around.

Here's the other thing nobody seems to realize. The smartphone market hasn't matured yet. Not even close. Smartphones have been around for just about 10 years and have been mainstream since less than 4 years. This sector is going to probably see a couple of *decades* of double digit growth (probably until there are around 2 billion+ smartphones in the world). In addition to that, people will continue to replace phones on an average once every year or every two years (unlike PCs that get replaced at a much lower frequency). Even 2 decades from now when the market (may have) matured and growth slows down to single digits or becomes flat, it'll still be a hugmongous market, and every % point of market share will be worth scrapping over.

The bottom line -- there's no ridiculous hurry to come out with a response, if it isn't the right one. It's worth taking the time to make sure you get it right. I suspect that this is how MS is approaching mobile.

Of course, that's a lot of conjecture. I could be full of horse-manure :)
by TheDiplomat78 August 20, 2009 2:38 PM PDT
Windows Mobile has the best browser on the planet. SKYFIRE! It trumps most apps that iphone and G1 host. Mind you Microsoft doesn't own Skyfire but they are the only platform that runs it.
Reply to this comment
by Random_Walk August 20, 2009 4:16 PM PDT
"Windows Mobile has the best browser on the planet."

...a warmed-over IE6?

Bleah.
by themrwhite August 20, 2009 4:17 PM PDT
To bad NO ONE on the planet has ever heard of it, maybe because it isn't really that great at all. Perhaps.
by August 20, 2009 5:31 PM PDT
While Skyfire is great, it still needs work in the copy/paste arena and if your network carrier isn't all that reliable, it **************************.
by Jive Turkey August 20, 2009 9:23 PM PDT
First of all, Nokia phones can run skyfire. Second of all, it's a POS. NetFront, Iris, and Picsel browser are all better than it.
by TheDiplomat78 September 16, 2009 9:16 AM PDT
themrwhite, just because you never heard of it don't assume that is true for everyone else.

Random_Walk, use your brain and read the rest of the comment.

Jive Turkey, Nokia is engaged in the manufacturing of mobile devices not the OS software. If you are not familiar with the technology then you shouldn't reply.
by homanandrew August 20, 2009 2:42 PM PDT
I don't agree that Microsoft needs to do anything, other than maybe promote better. I support about 25 mobile devices. We started with Blackberry, which was a giant pain in the lowest part of the back, with Desktop Redirector, etc. and the cumbersome, clumsy Blackberry Enterprise Server with ridiculous licensing fees. I had constant complaints from users for any number of problems - synching not working, communications dropped, etc. Blackberry supprt was unhelpful and often rude.

We switched over to Windows Mobile-based devices about 2 years ago. I point them at our Exchange server, and largely never hear from the users again. They can pick from a wide range of devices based on their particular preferences: touchscreen, full qwerty, flip-phone, etc. If we switched to IPhones, they get a choice of exactly 1, which comes with a $20 per user additional charge per user, per month, over what I pay to equip them with a Windows Mobile device. Sure, there aren't as many "apps", but most of what I've seen in the apps is stuff that's not really business related.
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by relseh August 20, 2009 7:59 PM PDT
I couldn't agree more homanandrew - I am forced to maintain BES and its a pile of crap - 99% of my mobile users that have issues with synchronization are Blackberry users. My WinMo users I NEVER hear from - heck I don't even need to hear from them to set up their phones, its intuitive enough for them to do it themselves.

WinMo + Exchange is a great TCO advantage over anything else on the market.
by J.G. August 21, 2009 6:29 AM PDT
Well, there are quite a few people who have dumped their awful 'work' phones for iPhones. Maybe that is why you never hear anything from folks after you force Win-Mo phones on them. Since the iPhone is Microsoft Exchange compatible, it would make more sense to allow them to use the device they prefer at work.
by homanandrew August 21, 2009 11:00 AM PDT
Just the opposite, J.G. We had users try out IPhones and dump them for something with a full-size keyboard.
by dillonhawkins August 20, 2009 2:42 PM PDT
MSFT obviously has it's back to the wall here. They'd better hope those deep pockets can == a fresh product. The Smiths? Very Utah, Matt.
Reply to this comment
by pkrter August 20, 2009 2:45 PM PDT
I love Windows Mobile 6.0 on my T-Mobile Shadow. It doesn't have "all" the bells and whistles that the iPhone has, but what it includes are the main (truly useful) features I would want on any platform. It has Office integration, Media Player, A host of free podcast readers, e-Book readers, games, a web browser, Bluetooth, and Wi-Fi. Even two years ago, when it was new technology, it was half the price of the cheapest iPhone. Perhaps it isn't features that Microsoft needs to add to compete with Apple and Google, rather they need to jack up the price so people perceive that it's a competitive product. I must say, I'm looking forward to Windows Mobile 6.5.
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by Tom98052 August 20, 2009 2:47 PM PDT
As a former Microsoft employee (my company was acquired and unfortunately I had to work for them for a few years), I have seen Microsoft up close and personal. Let me explain clearly why Microsoft has dropped the ball here. It is actually quite simple really. Microsoft is quite incapable of doing anything well nowdays. They are looking for shortcuts - the quick buck - the fast return - and oh lets make the deadline and we'll fix it later (their idea of quality SUCKS). What I saw was when I was there was a bunch of middle managers all trying to look good instead of doing any actual work. The people being rewarded were those that made themselves look good and others look bad. It was a political mess, not a company any engineer or innovator can succeed or lead.
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by Wall_Fly August 20, 2009 2:48 PM PDT
Matt,

You're both right and wrong. I just attended a webinar about two weeks ago where Christopher Grady, the CEO of IceWarp was announcing their latest release of their unified communications server and he said in the Q&A session that the primary reason for including Exchange ActiveSync into their product was because it had become the de facto standard for mobile synchronization, spoke highly of it technically, and said it was the used to synch not only Windows Mobile devices but also the iPhone and Blackberry and other products and services.

I'm not so sure Microsoft isn't winning the bigger was by selling the back end technology to almost everyone you mention in your article.

Jerry D.
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by Random_Walk August 20, 2009 4:18 PM PDT
Err, one bit to correct: Blackberries use BES to sync - RIM makes a bundle in selling licenses for that thing.
by Wall_Fly August 20, 2009 5:59 PM PDT
Random,
Sorry, he specifically mentioned Blackberry EAS support via plugin. I should have mentioned that.
www.icewarp.com/training/Version_10_Overview
G'day,
Jerry
by jamielaing1 August 20, 2009 2:53 PM PDT
I couldn't agree with you more, Microsoft has been laying down on the job regarding mobile devices. There has been one shining star for them in this area though, Microsoft Voice Command. It's such a great application it's really stunning. Using it and a bluetooth stereo headset, I don't need to touch my device for most common tasks, like placing calls or selecting music.

The mobile OS however is completely lame compared to the iPhone. You can run multiple applications simultaneously, but it's clunky to use and hasn't really changed since the late 1990's. Get with it Microsoft, you've been chanting about mobile devices for ages and you've made dot.net development for mobile absurdly easy. Time to put some glitz into the OS and bring this sector of your business back online.
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by rimesparse August 20, 2009 2:53 PM PDT
Though it's the song's title, Morrissey never crooned those words. The closest he gets is, "When you say it's gonna happen now, well when exactly do you mean?"
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by bonesbautista August 20, 2009 4:41 PM PDT
You so beat me to that one!
by monkeyfun14 August 20, 2009 3:20 PM PDT
Although I will give you that WinMo has remained stagnant for a bit the thing your forgetting though is just because a product goes stagnant for a bit doesn't mean it can't be turned around.

Look at the Palm Pre and WebOS for example.
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by DRTigerlilly September 11, 2009 6:47 AM PDT
that isn't "turning around" that's building a whole new product from the ground up....which MS refuses to do...they just keep adding on top of this archaic boggy OS...making it moreso
by antimicro August 20, 2009 3:47 PM PDT
Microsoft does not listen to customers, particularly every day consumers. IT people love them because they grew up with Microsoft and love all of the flexibility and have therefore been very pro-MS. The trouble is that it won't work with normal consumers. Apple, for example, knows its customer. Customers want something that is easy to use, is reliable, innovative and well designed.

None of these words apply to Microsoft. They have made lots of money on subpar products. A phone is the ultimate consumer device which means that they would actually have to talk to real people who don't want the device to crash. Their way of creating quality has been to ship garbage and wait for other people to find the flaws in their products. Now it is catching up with them. In the future, mobile devices will be used more than computers. IT people will have to get over themselves and quit trying to jam a lousy Microsoft products down to workers, so that they can remain all powerful and all knowing.

Microsoft is the GM of the computer world. Big, duimb, slow, and with products that no one cares about or needs anymore.
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by slapppy August 20, 2009 3:51 PM PDT
Whenever Microsoft uses the word innovate, you can see MS workers fighting back laughter from fear of getting fired!
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by themrwhite August 20, 2009 4:23 PM PDT
And this couldn't be a more truer statement. MS innovation means waiting for another company to come up with the idea.
by Obbiequiet August 20, 2009 4:27 PM PDT
All this hate on Microsoft, if you don't like Microsoft then don't use any of their products, nobody is forcing you to buy them.

Same with Apple haters.

Microsoft will come back guns blazing though.
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by cvaldes1831 August 20, 2009 5:44 PM PDT
When? As a MSFT shareholder, I'd like to know.

MSFT has roughly tracked the S&P 500 over the past five years.

They sure make nice keyboards though.
by Marauder62 August 20, 2009 9:11 PM PDT
Well, I'm not gonna say the Microsoft is finished in the mobile market. By the way, I don't have a MS Mobile based phone. I have an iPhone at the moment, but I'm most likely moving back to a Blackberry this fall.

I'm going to keep an eye on Microsoft because they have been suprising this year. First off, Bing. By any objective standard Bing has been successful for Microsoft. It's caused Google to take notice and actually change. Second is the upcoming new Zune. Lots of independent reviews out there regarding it, nearly all of it very positive. Third, Windows 7. Windows XP didn't even get this much positive buzz. I've been using it and the buzz is well deserved.

What's different? Bill Gates has left the building. No way things stayed the same once he left. It's not possible. I think with Bill out of the way things are loosening up. Pure speculation on my part.
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by CDubber August 20, 2009 9:37 PM PDT
Microsoft is impotent without someone else to copy. Why did WinMo stagnate? Because it was the only game in town. Then Apple shows up with iPhone and Microsoft has an "Oh, crap." moment. Then Google and Palm join the party. Microsoft? Still figuring out how to best copy the iPhone.

A bajillion dollars and not a single original idea. Sad.

Microsoft has been on the fast track to irrelevance for a long time. They just haven't realized it yet.
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by reluxx August 20, 2009 9:50 PM PDT
I totally agree - Windows Mobile is lame.. I wrote somthing similiar here: http://www.phixation.com/2009/04/27/the-state-of-mobile-devices/
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by frozenjello August 20, 2009 10:02 PM PDT
The author really hit the nail on the head with this story. In 2004 I was wanting to replace my plain-old cell phone, and being a longtime Windows user, I thought that one of the Microsoft Pocket PC smartphones might be a good idea. I tried out a few, but the whole "stylus on a resistive touch screen" user experience was underwhelming. I decided to wait a few years until the Windows Mobile OS improved. Then the iPhone unveiling in January 2007 made my jaw drop. I got in line the first day of release and bought my first Apple product EVER. It's been 2.5 years since the unveiling, and Windows Mobile OS still doesn't have a slick UI? Un-freakin-believable.
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by relseh August 20, 2009 10:40 PM PDT
"I tried out a few, but the whole "stylus on a resistive touch screen" user experience was underwhelming" you're seriously blaming a design flaw of a hardware manufacturer of a phone on Microsoft? Sweet lord...yes...THATS Microsoft's fault.

That would be like blaming your car manufacturer because the idiot that built your house didn't build a garage wide enough to fit it in.
by frozenjello August 21, 2009 8:35 PM PDT
@relseh
Yes, it is most definitely Microsoft's fault. Windows Mobile has a hardware limitation where it can only use resistive touch screens. We will have to wait until version 7 comes out late next year until Windows Mobile can use the much more responsive capacitive touch screens found on modern smartphones (iPhone, Palm Pre, Blackberry Storm, T-Mobile G1). As for the stylus issue, all their on-screen buttons and drop down menus were tiny. Definitely not finger friendly. Nowadays, some third party companies, like HTC, design their own software interface on top of Windows Mobile to give an acceptable touch experience.
by artistjoh August 20, 2009 11:38 PM PDT
I'll leave the WinMo to others but pull Matt Asay on his cflip rejection of the iPhone camera as mediocre and the only reason people use it because it is good enough and always on you. Huh? if that were the case then the world would be awash in photographs taken on 3 to 8 MP camera phones from other manufacturers which it is clearly not (well, not like iPhone photos and videos have captured attention anyway).

iPhone photographers have instead discovered that the quality of a camera is not measured by its megapixels so much as the creativity and qulity of its software and while the basic camera shipped in the iPhone has basic features apps in the App Store provide a legion of great features that make the iPhone camera truly outstanding.

As just one example Panorama is as the name suggests an app for taking panoramas. It actually has a wider range of panoramic functions than in any prosumer digital I have ever owned with high MP counts. The stitching software is better than anything Sony Cybershot has ever come up with and panoramas can be made from landscape orientation or portrait orientation and in portrait the resulting image is around 5MP in size. This app probably does such a good job on panoramic photography because it is entirely dedicated to that function while the panoramic function on a 10 or 12 MP prosumer digital camera is in a menu with numerous other functions and each individual function is competing with other functions in the menu and the more complex each becomes the more difficult the menu and ease of use becomes while in a dedicated app more functions for the individual function can be built in while its own menu system remains simple.

Same applies to using black and white and numerous other features, and the beauty of the App Store is that you get as many or as few of the camera features as you want. Over all the use of apps makes the iPhone camera the best small digital I have ever owned despite the low MP count.

Another thing that should be mentioned is the spot focus and exposure adjustment that occurs in the iPhone camera just by touching the place you want to focus on or adjust exposure levels for. It is brilliant in use. It is also unique to the iPhone (until camera equipped iPods come out I suppose) but is a big contributor to the popularity of the iPone camera for users. The iPhone recently overtook Canon as the most used camera by uploaders of photos on Flickr.

Nokia is the worlds largest manufacturer of camera phones. Nokia advertises their 5MP and Ziess lens and flash in their high end models and the rest are still "good enough". There have to be an awful lot of Nokia camera phones in pockets and purses everywhere and yet they don't beat the iPhone in Flickr uploads. Why do you think that is? Think maybe it is about the quality of the software?

If Microsoft understood that simple fact they wouldn't be in the difficult position they are in now. Unfortunately for them by not controlling the hardware their software goes into it is hard for them to optimize the software to get the most out of the hardware. Apple doesn't have that problem.
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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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