Microsoft aiming to recover lost ground in mobile
Microsoft has made some stumbles in the mobile world, but a strategy shift made more than a year ago will soon pay dividends, the company's top Windows Mobile executive said in an interview with CNET News.
Andy Lees, the executive brought over from the server unit a year ago, said that Microsoft's efforts to make sure that its mobile software could run on a wide range of phones resulted in an operating system that failed to take advantage of advances in hardware.
Andy Lees
"We aimed to go for a lower common denominator," Lees said. Microsoft was also limited by the origins of Windows Mobile, which was developed to power handheld computers that neither connected to a network nor handled voice.
"We started out when we were in PDAs (personal digital assistants) and then a phone got strapped to the back of the PDA," Lees said. The company also failed to recognize that phones--even those that were used for business--were still as much personal as they were professional.
Meanwhile, Apple and Google have joined the fray with operating systems designed from the ground up to take advantage of the latest in phone technology.
But Lees said that Microsoft embarked on a new strategy some time ago that will come to fruition over the next 18 months. The first steps in that strategy, he said, will be announced at the Mobile World Congress conference that takes place in Barcelona in the middle of next month.
"You are going to see a bunch of announcements at Mobile World Congress but also it is going to be the beginning of a 12-, 18-month period where you are going to see a whole bunch of different stuff," Lees said.
Part of Microsoft's new strategy, Lees said, is not relying on operating system upgrades to improve its products. The new approach, while still making money by selling a mobile operating system, places considerable focus on services that help connect the phone to the PC and Web as well as devices such as the Xbox.
Microsoft has two separate teams at work on the services piece. One is Microsoft's Windows Live group, while the other is a rather secretive group headed by former Mac unit head Roz Ho--a group that also includes the team Microsoft acquired when it bought Danger. Lees declined to say specifically what Ho is up to, however.
But Lees acknowledged the company also needs to improve that core operating system, which is widely seen as lagging that of most of its rivals.
For some time now, Microsoft has been working on a significant overhaul of its operating system, known as Windows Mobile 7. However, that project has hit delays, prompting Microsoft to push forward with an interim update, Windows Mobile 6.5, which the company is widely expected to detail next month. Lees declined to comment specifically on either version of the operating system, but promised the company would have more to say on the OS front in Barcelona.
Lees also promised that Microsoft would start working more closely with hardware makers. He pointed to deals late last year with LG and Samsung.
He noted that the power of the kinds of phones that come out next year will be incredible, well beyond even today's devices. Phones next year will have dual-core processors, super-fast data connections, and graphics power rivaling that of the original Xbox.
"That's a phenomenal thing on a phone," he said. The phones of the future will also have location information beyond just GPS sensors. "It will know where it is pointing, it will know which angle it is being held at."
Web browsing has been another weak spot for Microsoft. The company made up some ground late last year with a pocket browser that essentially crams the desktop Internet Explorer 6 into a Windows Mobile phone. But it lacks the kind of easy zooming and gesture recognition present on the iPhone or in Palm's Pre. Lees promised that Microsoft would surpass those interfaces by the end of the year.
Lees would not confirm details of a rumored rival to Apple's App Store, reportedly known as SkyMarket.
"There is some question whether we can more directly connect the developer and the end user," he said. "We're looking at that."
Apple dismissed the notion that Microsoft and others are catching up to the iPhone, however.
On a conference call with analysts last week, Apple CFO Peter Oppenheimer dismissed the growing competition from rivals saying Apple remained "years ahead" in the phone business.
"Our competitors are scrambling to try and copy our success," he said.
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina. 
..."Do you mind to elaborate on how over 90% of the market share is a failure?"...
The 1st thing -- Microsoft doesn't have 90% market share in the mobile space, so you must be speaking of the desktop space.
The 2nd thing -- Microsoft mostly got their 90% market share through the "IBM compatible" buzzword that haunted the '80s computer revolution as well as abuse its monopoly to make sure the competition was non-existent (even today).
http://www.birdhouse.org/beos/byte/30-bootloader/
I basically compare Microsoft's Windows market share with McDonalds cheeseburger market share. I mean millions (if not billions) of cheeseburger eating consumers hanging out at your local McDonalds can't be wrong now can they?!
When you want to paint a success as a failure, redefine success, amirite?
Because Windows Mobile does not have 90% market share?
3rd - There was no competition for MS in the 90s. Apple was useless and was stomped by Windows 95 while Jobs was away.
Microsoft's (or should I say Bill Gates') stated dream was to put a computer in every home. I'd say with 90% market share, his success is pretty hard to deny.
On topic: I hope Windows Mobile puts up a nice fight. The iPhone has a strong start; Palm's WebOS has a ton of hype; Android had a "meh" start, but has exciting possibilities in its wake, and RIM is off being RIM. The smartphone space is about to get really exciting.
1. Fact - it doesn't matter what the reason is, Jobs was asleep, Larry couldn't execute, etc. Bottom line is MS has 90% of the desktop. Period
2. MS won the Office war. See above if you need more clarification i.e. MS' competitors all failed to execute.
3. Windows Server went from <$1B in revenue 10 years ago to over $14B today. This during the Linux boom.
It is true Winodws Mobile hasn't done well. Oh well, 1 out of 4 isn't bad - and there's still time.
Step 2) turn off all confirmation messages & popups.
Step 3) mimic every feature of the iPhone, Blackberry and Android.
and they MIGHT have a shot.
Do they never learn!!!
I am very happy with iPhone 3G, for the first time that I leaved the old PDA ( in 2002) to WM Smartphone I have a system stable, fast, fluid, with lots of free applications and is greatly friendly user. I do not have to lost time improving or twiking my iPhone 3G. It just works for me, for my business or for my personal use. With the advantage that I can use Internet in an easy way on a mobile device for the first time.
I believe that Microsoft have it all, and almost lost it all. Now they have to try to catch Apple or Google Android, I do not know for Palm, must see the product in my hands, for at least a month, to have an opinion.
So truly I will not buy another Windows Mobile product, and like me, are thousands who are jumping out M$, maybe not as fast as everybody liked because we face a world financial crisis and people worldwide try not to spend so much money in gadgets. This works as an advantage for M$ in the end.
Is my believe is that Microsoft needs to change 180 degrees is way of thinking, Microsoft products and their ideas are out of date. I personally does not believe much... Waiting to see!
MS had YEARS of head start on Apple and Apple still crushed them in phone/OS design. Sad really.
And while I used to be a huge Internet Explorer cheerleader (didn't feel like using a 'me too!' browsers), I gotta admit that after I tried Chrome, I never looked back. I tried the IE8 beta.. puke. What a pile after you've gotten used to Chrome. And with IE8 you can drag tabs off the main window onto the desktop or other windows? *** not? That's such a cool feature of Chrome...
Cody
I have used them all (including Safari and Opera) and none is a winner. Each has it's place. IE is the most compatible due to I think most sites made sure it would run properly under it.
The excuse of 'waaah! WM/WinCE was based on a desktop OS! waaah! we wuz crippled! no fair!' ...doesn't fly, especially in light of the fact that the iPhone's OS is based on ...OSX. A desktop OS. Then there's also the fact that no one forced MSFT to do it in the first place. Their own greed got them there. I can call it greed because that greed over-rode any intelligent design decisions.
Microsoft had nearly a decade of time in which they could've taken the #1 slot. They failed. Their only hope is to do something radical, and even then it'll likely come out as a 'me too!' product.
I'm not saying it'll be impossible for them to make a comeback, but I will say that the odds are very, very long against them.
/P
I got my first WM PDA in 2001, it was made by HP and had a 133Mhz processor. It's a shame that the core of WM has not changed since then. Only a few minor upgrades and additions since then and worse performance on newer devices.
Pocket IE just plain was terrible. Setting up my email was a chore. Battery life on the devcies was worse than the iPhone.
Since getting my iPhone I have not even thought about WM. It will take something maybe as power as my xbox 360 to get me to think about going back.
At least they have someone to copy from (Apple) in their quest for a usable mobile OS. And again, history repeats itself.
I downloaded the Windows Mobile SDK to take a look at the latest version through the software emulator. And, I couldn't believe how archaic it looks. Not only that, tasks that should be simple, like connecting to the Internet, require so much user-intervention and settings selection. Windows Mobile simply exposes too much of the implementation detail and places unnecessary burdens on the user for them to figure out the correct settings and such, instead of abstracting all that logic away and moving it into software to have the system figure things out on its own (I'm talking about Internet/WiFi connectivity, ActiveSync, and memory and application management functions here).
The last time I looked at programming for Windows Mobile, the SDK didn't support simple things like displaying PNGs with transparency (alpha) and displaying anti-aliased text. You couldn't write code to play back music and video that was guaranteed to work on all phones because their SDK doesn't support it natively -- it requires that you embed the Windows Media Player within your app, but that is not guaranteed to be on all phones. Heck, you couldn't even count on a proper XML parser library being present on all phones. And forget about doing any fancy animation that could make use of graphics hardware acceleration. Most phones didn't have that either.
It was like they were still building Windows Mobile for 1999 instead of 2009. Really... what has the Microsoft mobile group been doing for the past 10 years?
IMHO - no phone, including the iPhone is anywhere close to ideal right now. I'm currently using a BB Curve and although it has some great features it also has a bunch of stupid design issues.
I'm thinking of trying out the new Palm when it comes out. As for the iPhone, it is a great phone - for my wife. I just don't see it being enough of a business tool for me although I do know a lot of people that use one for work.
I loved your comment. You eloquently verbalized many of my own thoughts. I've endorsed Windows Mobile since about 2000, and a year ago I as IT director of my company switched all company phones from BlackBerry to Windows Mobile. As you mention in your own post, everyone pretty much has hated these phones, especially the Sales department. Worst of all, the longer iPhone has been around, the worse the Windows Mobile phones have looked. Whereas everyone thought they seemed cool in November of 2007, the iPhone has come to dominate the industry, and Windows Mobile looks and feels like digital crap now.
As for me, I relied on Windows Mobile for a long time personally and professionally. Now it has made me look bad, and I hate using it on my own phone. My next phone will be an iPhone, and that's probably what I'll switch everyone in our company too as well, even despite its lack of certain features and perfect Microsoft Exchange support.
Thanks again for the great post!
P.S. The other day, I took so many stupid Windows Mobile support requests I was ready to slit my wrists. One user even emailed me something to the effect of, "Do you think it will fix my problem if I throw it at the wall?" That's how Windows Mobile makes people feel. Learn the lesson, Microsoft.
S*&t happens that's why I've had 10.
Btw, I didn't say "Wonderful". I like WM and think it does a lot of things really well but it also has a few issues like really slow boot time.
"I downloaded the Windows Mobile SDK to take a look at the latest version through the software emulator. And, I couldn't believe how archaic it looks. Not only that, tasks that should be simple, like connecting to the Internet, require so much user-intervention and settings selection. Windows Mobile simply exposes too much of the implementation detail and places unnecessary burdens on the user for them to figure out the correct settings and such, instead of abstracting all that logic away and moving it into software to have the system figure things out on its own (I'm talking about Internet/WiFi connectivity, ActiveSync, and memory and application management functions here)."
It is absolutely ridiculous.
Microsoft doesn't realize that the enemy of high tech is complexity. Their solution to any technological/design hurdle is to add more complexity when what is called for is to make things simpler.
Love for complexity is in their DNA. That's because their engineers and product planners think that all people are geeks like them who enjoy putzing and tinkering around their keyboards all day, who woulg gladly hunt through seven different menu options, down five menu layers to zero in on the needed functionality. --There's nothing like the challenge of figuring out a complex beast of an OS!
They got away with this for a long time because they had the OS monopoly that they used to bludgeon their competitors to death. And corporate America was perfectly willing to staff IT departments that performed the support function that would not have been required if MS built a better, less complex product in the first place.
Now that real competition is showing up, MS's weakness is coming to the fore. Despite their pro-complexity DNA though, things can be fixed if they have a CEO who realizes the problem and points MS in the right direction.
Ballmer doesn't seem to be the guy though. From what I read, when Gates was running the show, Ballmer was this really sharp numbers guy who could rifle through a stack of production and sales reports to discover trends and patterns that we mortals would never have seen. -- In short, the guy also loves playing in the mud puddle of complexity! MS is doomed.
[Or so says the guy who is NOT running a billion dollar tech company. :-)]
Is WIndows 7 better are system resources, is it still a system hog, does it need a brand new computer to run ? and 2-4 gig of ram ?
Translation: Program Managers and Product Managers at Microsoft were given iPhones a few months ago (probably around October or November) and were asked to deconstruct the architecture and write specs for a new Windows Mobile feature set that probably won't be fully delivered until 2011. But you can be sure they will be announcing vaporware features at every chance they get until they ship.
Microsoft was able to catch up to Palm years ago because Palm never really moved forward with the software on their products. This time, they are up against a company that doesn't rest on its laurels. Microsoft is going to have a hard time competing here.
Microsoft has never learned the advice given to hockey great Wayne Gretzky by his coach: "skate to where the puck is going, not to where it's been." Microsoft always seems like it's trying to deliver the products of yesterday tomorrow. But perhaps it's because that forward-thinking skill is simply not within the company's DNA. Microsoft typically hires people who are extremely good at analyzing what has been done. Visionaries (and the creative and forward thinking skills that they possess) are considered much too random to fit into the Microsoft culture. If you've ever worked (or do work) at Microsoft, you know it's true. One of the worst insults you can give someone within Microsoft is to label their thinking as "random," when ironically, random, out-of-the-box thinking is a requirement for innovation. That really says it all. If you're a betting person, never bet on anything innovative coming out of Microsoft. More times than not, they'll disappoint you.
Bottom line... Microsoft will deliver an updated Windows Mobile OS in the 2010-2011 timeframe that will match what Apple delivered with its iPhone in 2007. There's not much to get excited about here.
"Don't worry about how great [insert product name here] is compared to what we offer today. Just wait (aka don't you dare buy [competing product] today) until tomorrow and we'll have something even better!"
And, of course, business goes ahead waits for the "tomorrow" that never comes. Competition starves to death. MS "wins."
What needs to be cut?
1) Remember the infomercials about a decade ago, "Browse the web from your TV, right on your couch! With Web TV you can". When Microsoft acquired the Web TV IP, they rebranded it MSN TV.
Ten years later, with the rise of Netbooks, and nearly all consumers having on-the-fly access to content and info they are close to, why then is MSN TV still being offered by Microsoft? Cut MSN TV.
2) UMPC, Origami, Tablet PC- Bill Gates very much wanted touch capability to be today's modern marvel. Unfortunately, these acronym laden devices never really caught on. Instead, we have Netbooks, and cheap notebooks. While we can admire Microsoft being a persistent company, it is time for the axe to fall on Origami.
3) Why cut areas when you can easily change them to create long-term income? Microsoft Works, and Office Home and Student Edition are two prime examples. Most value computers include Microsoft Works for a nominal fee. Microsoft a while ago noted that it was in the process of addressing an ad-based Works; If Microsoft could speed up the development for this product, they could easily turn a meager $20~ profit into a perennial. The same can be said with Office Student Edition. In some countries and markets, Microsoft has had critical acclaim and outstanding success with "timed" Office keys. These keys expire after a set amount of time. This is an excellent method to keep users locked-in to a recurring payment, instead of a deflated price on one of the most widely used suites on Earth (Seriously- Office may not be as glamorous as an Apple product, but it is a defining piece of software, charge more for it- even for students.) Offering a hybrid or subscription based Office will help to grow those two areas, while avoiding major cuts.
4) Windows Home Server- the little engine that could. The average household has two computers in their home; Add in to that figure the connected devices (Cellular phones, PDA's, Game Consoles, etc.) and you can understand the need for a home server. Microsoft's XBOX 360 already demonstrates a small sampling of what people from home want. Streaming of media and online content, access to devices that aren't running Windows Mobile, ease of use, and extending the access to partners.
While now may not be the best time to pitch an added appliance in the home, home servers- or similar devices, will gain in popularity sooner rather than later.
Windows Home Server is being pitched as a central hard-drive, back-up terminal, and a way to organize "home media". Microsoft could stop production and promotion of Windows Home Server for now, and push it again when Windows 7 launches. Introduce new ways to connect (Netflix, Blockbuster streaming; Ability to push data to phones and handheld devices; Integration with Windows Live Skydrive and Search- even cache search results on the server for parental control and oversight). These ideas for WHS are just the tip of the ice-berg. If given enough room to grow, and given the right pitch to consumers, Windows Home Server could be a hit.
(SEE PART TWO)
5) Zune. Love it or hate it, many people cant stop talking about it once you bring it up. Is it a drag on earnings? No one but the entertainment division head really knows. But for the lackluster sales Zune has been yielding for Microsoft, it is time to cut the cord. Focus energies on a better alternative to wage war on iPod. Microsoft's "Either with me or against me" mentality has shunned many once long-time partners, especially with the launch of Zune, Microsoft effectively burned bridges for partner support of Janus encrypted WMA media.
How "DO" you kill the leader of music hardware? Join with them. Stop pushing WMA songs, offer MP3 instead, gain the image of a "consumer advocate" company and tout the song integration with iPod. Microsoft cannot "kill" the iPod, rather it is best to ride the wave of success that Apple is paying for.
Tout exclusive content, iPod to WMP functionality and you'll be able to disarm part of the iTunes Store equation. You already have a partnership with Universal Media, one of the largest media conglomerates, use that to your advantage Ballmer. In forcing your way into the iPod/iTunes camp directly, you'll be much more able to wage war- and stop the stagnant drain that is Zune.
6) Online is this decades' battleground. Google has put it's flag on the search mountain, Yahoo! has laid claim to mail and display ads. Microsoft, with Live is doing a "well enough" job at trying to connect the desktop with the web. Windows 7, and it's application-less nature will drive traffic to Windows Live for applications such as photo editing and messenger products. This will be a great time to drive Windows Live and search. Cut back your aggressive spending in search and promotions- you CAN NOT buy loyalty. This is a waste of money and has been a void for your online spending. While you have lost market share year-over-year, Google is growing. Perfect your product. Google is not paying people to search, nor is it bribing people. Google built it's reputation on openness, and reliability.
Continually challenge them with a product worthy of the Microsoft logo, instead of some pathetic "Me too!" effort. We expect better from the software king. Spend less, innovate more, and dare I say it- take cues from Yahoo! and Google. Live is going to be great, and potentially will pave the way for exponential profit- if well managed.
While many of my ideas are future-forward, they also help Microsoft to make cuts sensibly, while preserving areas that have the potential to yield great profits down the road. Much like Ballmer noted, this is an industry "reset". You don't get many of them, but when you do- you are given the chance to change your business to better adapt to trends and needs of those that you serve.
- by iBuzz January 26, 2009 1:42 PM PST
- Advice to Microsoft: get out of the mobile phone OS business. It's a dead business for you. The market leaders (Apple and RIM) use proprietary OSes which they will never buy from you. And for those handset makers and carriers who want to take on Apple and RIM, Android is a better and cheaper choice. There is simply no value in what you can provide here.
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Showing 1 of 2 pages (54 Comments)What you should be focusing on is Office Mobile. Make Office run on all mobile devices... iPhones, Blackberries, Android, Palm Pre. Enable people to take their Office data and contacts mobile. If you nailed this, you'd have a much bigger market to sell into. Your current strategy of trying to leverage Office on mobile in order to sell more Windows Mobile OS licenses is completely backwards and will limit your profits. The real money is with Office on all mobile devices. This is what you should be selling.