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Has Microsoft Turned Into The New IBM?

Surfing the web today, I came across a very interesting interview on SeattlePi with Don Dodge, who was Microsoft’s Director of Business Development for the Emerging Business Team until getting laid off last month. During the interview, he revealed his opinions on Microsoft, their current situation and where they’re heading. He also revealed that he thinks “Microsoft is a lot like IBM was in 1985”, going on to say that “after 20 years they are losing the innovation edge.” This got me thinking; has Microsoft lost the ability to innovate after being the most dominative force in computing since the late 1980’s? And if so, why?

I think a key to the solution is the sheer amount of things Microsoft does. When you think of the number of markets Microsoft compete in, you can understand that it’s extremely difficult, maybe impossible, to dominate every market. Not only do Microsoft develop and maintain the Windows OS, they also compete in the market for smart phones with Windows Mobile; the gaming market with the Xbox 360 and internet search with Bing.

Microsoft only dominate one of these markets with Windows – even with competition from Mac OS X and Linux, 88.5% of the world’s population uses Windows on their PC’s, which is beyond monopolisation… Despite this, 62.2% of computer users are using Windows XP, which completely supports Dodge’s accusations that Microsoft aren’t innovating as much as they were before. Rightly or wrongly, Vista was never a favourite of consumers as it had a lot of bad press on and off the web. In my opinion, Windows 7 is a solid operating system, and when I’m using Windows, I use Windows 7.

When comparing the progress of Windows to its nearest competitor, how has it advanced since Windows XP was released in 2001? When Windows XP was introduced to the world, Apple had just released Mac OS X 10.1, and compared to Microsoft’s monopoly, Apple wasn’t in a good position with many criticising 10.1 for its bad performance. The next time we saw a consumer OS from Microsoft, however, was in January 2007, and the results weren’t worth the 6 year wait for many…

In the same time, Apple had released Mac OS X 10.2, 10.3 and 10.4, with Leopard coming 6 months later. So what were Microsoft doing in those 6 years? To the average user, there wasn’t much reason to upgrade from XP to Vista, because people were all too familiar with XP – why switch to have software incompatibilities and an unfamiliar interface?

On the mobile front, having used all three main players in the smartphone market right now (Windows Mobile 6.5, iPhone OS and Android), I’d only consider using iPhone OS or Android. Microsoft’s got a lot of catching up to do, and has fallen behind Apple and Google in terms of innovation and ease of use.

Navigating around a Windows Mobile device often feels far too long winded, with menus and menus of choices it’s simply not as user friendly as the iPhone or Android, even with HTC’s custom interface. Add this to the numerous delays of Windows Mobile 7, there’s no way I’d buy a Windows smartphone right now.

Having gone from the innovator to the company playing catch up with every other major player, Microsoft needs a new direction to wow people again. They’re very much in the gaming market with the Xbox 360, and hopefully we’ll see some pushes towards a better search with Bing in 2010 – how about a consumer friendly surface-like device? Competition for Apple’s tablet anyone? Let us know in the comments!


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6 Responses to “Has Microsoft Turned Into The New IBM?”

  1. Jack
    Comments: 1
    11:08 pm 30th December, 2009

    I agree with the general jist of this. Although i know f*ck all about computer stuff, I can say Microsoft don’t do anything to WOW me personally, and I was impressed by a slinky toy !!!! Xbox 360 may have more consoles sold atm, but sony’s ps3 is fastly catching up and nintendo’s Wii is way ahead of both, so I don’t think they’re as strong as theyd like to be there ! In terms of Windows, it seems to me to be a case of consistency rather than taking risks.

  2. mbaDad
    Comments: 1
    12:06 am 31st December, 2009

    They lost their edge a long time ago. What is really surprising is that people are just noticing. But they are big enough it will take many years to displace them, and they have a chance to turn it around. To do so they have to start concentrating on being great again, not making the most money. Would probably require Ballmer leaving, and a tech person taking over.

  3. John Thompson
    Comments: 67
    12:57 am 31st December, 2009

    I agree mbaDad, Ballmer always has been and always will be a business man, not a tech guy – it’s integral to a company such as Microsoft to have someone leading the way that can input more than a business plan.

  4. jbelkin
    Comments: 1
    4:21 am 31st December, 2009

    Yes, but it’s probably worse, I beieve the 1990’s were to Gm what the 1950’s were to GM and the slope downward is simply accelerating.

  5. lrd
    Comments: 1
    5:11 pm 31st December, 2009

    The words “innovation” and Microsoft are two words that shouldn’t be used in the same sentence.

    For some 20 plus years Microsoft copied Apple’s every move in the OS; then Netscape Navigator with IE; then they jumped on Sony’s PSP with the XBOX; then Palm’s PDA & phone, then iPODs with the Zune…. and the list goes on and on.

    Need I say more???

  6. Rob
    Comments: 59
    12:14 pm 3rd January, 2010

    Personally, i think that if they are going to continue copying from OS X, then they need to design their own hardware too. One of their biggest problems when creating windows is that there are so many differently specced PC’s around performance will always differ. Where as Apple make their own machines and design them to specifically run their OS. If microsoft made their own range of PC’s perhaps it would improve things. They would have to include some new features though of their own, not just copy the multitouch and aluminium body etc.

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