I recently read a collection of articles on Wired about Microsoft’s recent activities and strategies that got me to think about how each of its departments are linked to each other, both internally and externally. Here are some of them:
- http://www.wired.com/wiredenterprise/2011/10/microsoft-and-hadoop/
- http://www.wired.com/gadgetlab/2011/06/microsoft-kinect-hackers/
- http://www.wired.com/gadgetlab/2012/02/how-windows-apps-will-run-on-arm-tablets/
There are many more on the site worth reading, if you can dig them out.
Before I dive into Microsoft, let's take a look at what Apple has done over the last five years. They have seamlessly integrated all of their platforms into one cohesive unit, and their sales numbers reflect this. As more people bought iPods, they started buying Macbooks, then came the iPhone, iPad, and TV, all of which gel very well together. That is, you play along with Apple's rules. However, once you try to go beyond Apple's scope, it becomes extremely difficult. Hence my frustration with Apple, and my infatuation with Microsoft.
Enter Microsoft who, unlike Apple, allows the user to explore well beyond the confines of many of its platforms. Allow me to explain. When Microsoft first launched Kinect, there was a massive, almost cult-like, dissecting of the capabilities of its hardware and software. At first, Microsoft was against this, and began arming itself for litigation. However, after seeing what the community has come up with, they have embraced the idea of what is now known as the "Kinect Effect," and have even put together a software development kit (SDK) for amateur and professional software developers to create home-brew and third-party add-ons for the technology. For more on this and its many uses outside of the living room, see the following links:
(kinecthacks is what started it all)
Like Microsoft, Apple had a similar experience with its iOS, most notably the idea of jail-breaking iPods, iPhones, and the like. While there were some issues regarding the enabling of software piracy, the pros were very much obvious: the community had developed tons of great new features that greatly expanded the capabilities of an otherwise very inhibited device.
This is known as open-sourcing, and has earned itself a major role in the software community that cannot and should not be ignored. It is important to understand that this is very different from developing an app for the iPhone, which restricts the developer to only Apple-approved methods (such is my experience with their SDK).
Now back to Microsoft's business strategy. In order to catch up with Apple, it needs to fight back for ubiquity in the market, which it has done very well in the consumer entertainment sector. Since its release, XBox has evolved from a gaming console to a household multimedia hub, having secured valuable partnerships with Verizon, Comcast, Netflix, and more. Later this year, Microsoft will launch Windows 8, which is already available as a pre-beta for testing and development purposes. I have used this early version of Windows 8 and, I have to say, it is unlike anything I have used before and, far more importantly, critics and experts in the field agree. The Metro UI, which was first seen on Windows Phone 7 and now also on XBox, is coming to Windows 8 PC, alongside the traditional taskbar, Start Menu, and icon layout. This will also be featured on the upcoming Win8 Tablets as well, also due to launch this fall. It gets better: Microsoft has engineered each of its platforms such that they may be so easily integrated to create one, streamlined Windows experience between the phone, the tablet, the living room, and the PC.
Why is this important? Well, for starters, it is this same product strategy that not only saved Apple from the brink of failure (thank you, iPod), but brought it to where it is today. Then you have to consider where Microsoft has always been the software of choice: the corporate world. This includes everything from its Office Suite to Windows Server, which is also getting the Windows 8 overhaul treatment. The key difference is that Microsoft is far more receptive to open-source development than Apple is, as I mentioned earlier. Considering the explosive nature of the software industry as of late, open-sourcing represents more forward thinking than any other aspect of the industry. The reason for this is that it allows the consumer at large to direct the innovative trend of the industry and, consequently, affects the products that companies such as Microsoft put out. The next two years will be very interesting for Microsoft and, on a grander scale, the tech sector as a whole.
From an investment standpoint, if you have yet to add Microsoft to you portfolio, it’s not too late. On another note, I would love to hear what you all think about this theory, considering that it’s a pretty bold claim to take a stand against Apple.
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