Microsoft: Windows 7 will trump Chrome OS, Apple
Although the conventional wisdom is that the rise of the Netbook is hurting the Windows business, a Microsoft executive said Tuesday that lower-cost laptops can actually be a good thing.
Speaking at an investor conference, general manager Charles Songhurst said that overall, most people buying Netbooks are either multiple PC owners in developed markets or first-time PC buyers in emerging markets.
"From what we see they are incremental," Songhurst said. "They are new scenarios."
Even if that is true, the fact is that Netbooks have been growing in numbers, while traditional PCs have slumped--a shift that has undeniably hurt the average amount of money Microsoft is getting for each copy of Windows.
One of the opportunities, Songhurst said, is if Microsoft can gain additional revenue on high-end PCs, noting that Microsoft has tended to get about $50 in Windows revenue for the standard $1,000 PC. (Microsoft tends not to talk about how much it charges PC makers for Windows, so it was interesting to hear him mention that figure a couple of times during his chat, which was available as a Webcast.)
Songhurst
(Credit: Microsoft)Asked about Google's forthcoming Chrome OS, Songhurst said that while it could be a threat if it is demonstrably better, just being cheaper won't offer much of a threat, saying the quality of Windows 7 will help the company fend off new competition. Microsoft plans to launch Windows 7 on October 22, while Google's Chrome OS is not expected until next year.
As for whether Apple might gain ground inside corporations, Songhurst said that Apple isn't winning over the key executives that make technology purchases, such as chief information officers.
"If they are not compelling to the CIO, they are not going to make inroads in the enterprise," he said.
On the Bing front, Songhurst acknowledged that even if Bing is getting good results in the U.S., the company faces an even larger hurdle in the global market, where Google has nearly 70 percent share. Songhurst said that although Bing's engine is available globally, it has yet to put the same kind of marketing dollars overseas as it has in the U.S.
"That marketing push makes a (big) difference," Songhurst said.
One of the other things Microsoft has done is sign deals with companies such as Hewlett-Packard and Lenovo to make Bing the default search engine on new PCs. Asked if Microsoft is eying more such pacts, Songhurst said yes.
"Always we'll do distribution deals for Bing," Songhurst said. "We're quite active in getting out and competing for those."
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. 






- by dbloyd September 15, 2009 10:41 AM PDT
- Windows 7 will trump every other OS in gaming.<br /><br />Windows 7 is really good for gaming. Chrome will be good for the home user and Snow Leopard in business.
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- by shycelticwitch September 15, 2009 11:41 AM PDT
- You are correct in your statements. Windows has always been good for gaming. But not much else, in my world. Functionality wins over form, but OS X has both. Never tried Chrome so I won't comment on it. But I have tried almost all versions of Windows, and until someone can explain to me why this operating system insists on treating it's user like an idiot, I'll use it only when necessary.<br /><br />That being said... from what I have seen of Windows 7, it truly may be their best attempt yet at emulating the OS X environment and it's simple "it just works" platform. I am going to give it a try (after I give them a few months to exterminate the bugs that are in all new software) on the 2 PC systems I have at my business. I'll let you know what I think of it then.
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- by JoeF2 September 15, 2009 12:03 PM PDT
- And that's why MS will miss out on the netbook market.<br />Win 7 may be good for gaming, but not for running on a netbook. Netbooks are not for gaming.<br />If you want to do games, get a high-end, tricked out machine. Put WIn7 on there if you like. But don't expect to carry that machine around on your trips.
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- by Jeremy Chappell September 15, 2009 1:03 PM PDT
- As long as Microsoft can stop itself from shooting itself in the foot with the Xbox 360, if they put too many exclusives on that then they will dull their advantage for Windows 7. Trouble is, I wonder if they're not a bit too fixated on Sony and Nintendo.
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- by knowles2 September 15, 2009 1:11 PM PDT
- Because 90% of users of computers are idiots, first thing Microsoft learnt. An Apple design philosophy is the sames. Users are idiots keep things simple. Probably one why Linux never taken off.
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