October 26, 2011

While Apple consumers find themselves with innumerable applications at their fingertips on a myriad of mobile devices, Microsoft has lost industry ground in the tablet and touch screen markets. Windows 8 hopes to lure application developers, aiming to offer consumers as great a variety as is currently offered on their competitors’ platforms (Reuters).

The new operating system seeks not only to enter the tablet and smart phone scenes, but to address the criticisms of its users by restoring some greatly missed features which disappeared with former versions such as Windows XP. Among the most popularly requested returns is the “ribbon” which was no longer used in Explorer starting with Vista, and which in 8 is currently set to include tabs named Home, Share, View, and Manage. The “up” function which allowed users to navigate one tier upward in the folder scheme is also meant to be re-added.

Additionally, the long standing partnership of the Windows PC equipped with Intel processors sees itself in danger with the coming of Windows 8; the development stage operating system aims to also function with ARM architecture, which is a low-power processor type found in most modern mobile devices ranging from PDAs, MP3 players, tablets, handheld games and smart phones (Washington Post).

While making this version of Windows more flexible for different devices was a major scope, other changes to frustrating aspects of operating systems were addressed also, including faster boot speeds and navigation.

The Windows 8 user interface is set to be based on a grouping of tiles, larger than icons and with the idea that each would include more personalization and information about the application within the greater allotment of space. The tiles would take the place of the familiar Start Menu and introduce a new ability for apps to share screen space.

While the interface is being touted as designed foremost for touch navigation, Julie Larson-Green, the Corporate Vice-President of Windows Experience, states in her article on the Microsoft News site that it will be equally powerful and simple for traditional mouse and keyboard users.

Many interested websites and computer news publications agree that while the software giant is typically secretive of its release dates, a common interpretation of comments by Microsoft’s VP for Strategic and Emerging Business Development Dani Lewin seem to indicate that the current projected release date for the new OS would be the fall of 2012.

Whether Windows 8 takes the market by storm and paves the road for Microsoft to be a real competitor on the mobile and low-power device software scene remains to be determined, but one thing is certain: as the world of personal computing changes forms, it is imperative for this industry leader to adapt, innovate and expand, and Windows 8 seeks to accomplish just that.

September 14, 2011

After many rumors and presumably long negotiations, Microsoft has purchased Skype for the unimaginable price of $8.5 billion—it’s biggest deal ever. My question: was this a smart move? I’m trying to figure out what it is about Skype that makes them worth this much. I must be missing something here.

Maybe Microsoft knows something that I don’t know; clearly they do. What I know about Skype is that they are a cool VoIP service that is not yet profitable. Nothing about that seems $8.5 billion worthy. I’m going to have to imagine that there is some master plan behind this that is larger than any of us common-folk know.

What we know is limited to the news that Skype will be integrated into most Microsoft devices including Xbox and Kinect, Xbox Live, Lync, Outlook, and the Windows Phone, Microsoft will also support and develop Skype on non-Microsoft platforms. I’m no business mogul but I don’t see how any of this will compensate for the amount paid for the service.

Perhaps $8.5 billion is nothing to Microsoft. I imagine that Microsoft CEO Steve Ballmer and his colleague, Charles Songhurst spearheaded this deal with a plan in mind that would make this venture worthwhile. Surely these people didn’t get to the positions they are in today as a result of poor planning.

From a spectating standpoint, I’m puzzled, to say the least. Yes, Skype had operating profits of $264 million and revenues totaling $850 million last year. The company also lost $6.9 million overall and carries a debt of $686 million. To pay $8.5 million for this is starting to seem even more ridiculous.

Microsoft is justifying the purchase saying that part of Skype’s appeal is in the user base of 663 million. 145 million of these users are monthly, 170 million are regular users and 8.8 million of these regular users are paying customers. Majority of Skype users, however, use Skype’s calling service for free. This is essentially what is making it difficult for the company to make money.

There seems to be one set of winners here and it doesn’t appear to be Microsoft. Skype investors, a group that includes Silver Lake, Andreessen Horowitz, Index Ventures and the Canada Pension Plan (CPP) Investment Board have definitely come out on top. Purchase a company for $2.75 billion in September 2009–sell in May 2011 for $8.5 million while experiencing a debt of $686 million; yep, I’d definitely say they won with this one.

Microsoft, I don’t want to speak too soon and say that you jumped in too deep but I think the proof is in the numbers. Unless you have a few major tricks up your sleeve, you may have just lost and lost big. Only time will tell…keep your fingers crossed.

May 10, 2011

Zune launched in November 2006 with great hopes of competing with (an ultimately beating out) Apple’s iPod. Sales from the Zune proved to be average, at best, but never came even remotely close to being a sufficient iPod competitor. Zune was separated into software and hardware divisions back in 2009 in an attempt better target the platform but this was obviously to no avail.

As reported today, Microsoft plans to discontinue the Zune video and music player but Zune software will remain available on the Windows platform as desktop software and it will be featured into the Windows Phone 7 and will focus heavily on smartphones. The production of the Zune has now ceased and when the last Zune is off the shelf the Zune device will be gone forever.

Microsoft has been pretty mum about the extinction of the Zune but those of us who have seen products come and go before know what’s what. According to an email from Caitlin McCabe, a Microsoft spokeswoman “We’re absolutely committed to providing the best movies, music, and TV show experiences through Zune on Xbox, the PC, Windows Phone 7 and Zune devices. We’ll share more information about the evolution of the Zune entertainment service and Zune hardware as future plans develop.” Yea, yea, tell me anything.

I’ve personally seen one Zune in my entire life and when I saw it it initially received the alien treatment. What is this little ditty? I wondered with intrigue. Looks something like an iPod (yet larger), acts something like an iPod (minus the touch screen…at least on the earlier version), seems much like an iPod (with an off-brand edge) but this here is no iPod. Apparently my sentiments regarding the Zune were shared by most as it seems no one really grabbed hold to the concept of the un-iPod device.

The truth of the matter is the Zune wasn’t that horrid of a device. In fact, it had a few capabilities that the iPod lacked such as radio reception and the ability to play high definition video to televisions. So, what was it about the Zune that just couldn’t catch on, you wonder? My guess is that nothing about it screamed “you can’t live without me.” Outside of minor details the Zune showed no proof of being better than the iPod, it had a Windows-only requirement and it wasn’t offered at a noticeably cheaper price. If I have the choice between a Mercedes and a Honda equipped with most of the same features and ultimately priced the same I’m going to go for the Mercedes but that’s just me. Apparently, it’s you too.

Well, that’s it. R.I.P Microsoft Zune—Gone and Forgotten.

April 19, 2011