Like Wil E. Coyote, Microsoft just keeps running into the rock instead of passing through the painted tunnel like the Road Runner. Maybe that's not a good analgy. Let's try another. Microsoft is like a deaf, shouting Grandpa. He keeps making all sorts of noise, but no one's paying any attention. Grandpa Microsoft keeps shouting about 97% desktop penetration and being tethered to the desktop/laptop. But increasingly, Microsoft seems more and more irrelevant and will lose market share, rather than gaining it.
I remember when any desktop or software release from Microsoft was greated with great fanfare. Microsoft eventized their releases - Windows! Internet Explorer! The world eagerly awaited all the new features and upgrades that the software would bring. Which huge rock band's clasic song would serve as the theme for the launch commercials? The Rolling Stones "Start Me Up"?, Madonna?, The Eagles? Now, Microsoft is verging on the edge of irrelevancy. Most consumers now view Microsoft as a necessary evil. They're not, but Microsoft now has been out maneuvered in the very business they created.
The ease and use of Microsoft software allowed the laptop and desktop to become ubiquitous in every American (and often times worldwide) household. The hardware mattered, but it was the software that Microsoft created allowed for mass penetration for consumers. And it wasn't just consumers, Microsoft was the software of business that allowed for businesses to become much more productive. And that's were Microsoft got lost. They are staying in the business of writing software for business, but have not yet realized that people are using their computers for personal use more than for business. Of course, we still do large amounts of work on our computer, but we personalize our work experience for ourselves. We IM, answer personal emails, go shopping, Google, Facebook, watch short form video, all while answering emails, opening, reading & printing spreadsheet or powerpoints, editing documents, but there is probably a 60/40 intertwined spilt between work and personal use. Most of it simultaneous. And consumers have become much more accustomed to working through their personal lives.
Apple has all the flash and sex appeal of niche product. Apple tried to go mainstream and failed, but when they focused on their niche market, they exploded. Apple Stores are the new Starbucks of the 21st century. Apple's products are hip, cool, popular, easy to use, and very high end. Apple needs a new IPhone like product every 5 years or so. But Apple's not a threat to Microsoft, Google is.
Google's focus started with the consumer. How do we advertise to them while they're searching? Google's clean ease of use has become a lifestyle all it's own. And best of all, it's all free, which totally blows up Microsoft's profit model. Microsoft doesn't have the advertising revenue to make up for the license fees they charge for their software. And Microsoft faces an inherit financial modeling problem - how do you fight free? Google is the only company taking on Microsoft and is increasingly out Googleing Microsoft. This week, Google demoed a new software offering called Wave. Wave starts a thread that intertwines IM, email, photo viewing, social networking, and blogging. This is the new Holy Grail of software. How do you get consumers do all of the functions they love - IM, emailing, etc. all without switching to each program and doing all of these things in separate programs? Wave might not be it, but it's definitely a step in the right direction. The convergence of IM, email, photo viewing and blogging is where consumers are headed.
What did Microsoft release this week? Bing - yet another new search engine. YAWN! There has to be a compelling reason to switch my search engine from Google. And Bing isn't it. Granted it looks like it will have some bells and whistles, but Google can quickly adapt it's search algoithms if it needs to and POOF - problem solved, Microsoft's back to irrelevancy. Plus Microsoft is spending $100 million to advertise Bing. What a waste of money! Microsoft made a huge blunder in not buying Yahoo. Google classically played Yahoo & Microsoft off of each other. Microsoft just used Steve Ballmer's "We're Microsoft, we don't need anyone." (but they do need Yahoo to even begin to compete with Google in search). Combined that with Yahoo as the "wounded eagle," where Google threw cash at them and promised protection. Google gave Yahoo a false sense of security and played up Microsoft's ego. Google poisoned the merger and waved bye bye to any competition. Microsoft was so stupid. Steve Ballmer should be fired for f-ing that up.
Microsoft remains a player in the market they created, but they desperately need to do something to get back to focusing on the consumers. Even IE 8, which is good, is still not as good as Google's Chrome browser. I would like to see Microsoft succeed. Google is currently going through it's own corporate growing up phase, where it's no longer this rich upstart teenager of a company and is maturing into a full blown adult computer company. Google needs to continue to innovate even as it matures, but Microsoft needs to drink from the fountain of youth and age down or risk becoming a relic of the 21st century that never made it to the 22nd century.
How far the mighty have fallen.
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