| From: Eric L | 7/9/2015 11:43:25 AM | | | | | | Microsoft's Vision or lack of same ...
"Microsoft's vision is to be on every screen you use. But sometimes, that vision cracks a little."
... or a lot.
>> Microsoft is having an identity crisis
Seth Fiegerman
Mashable
July 9 2015
mashable.com
Microsoft's vision is to be on every screen you use. But sometimes, that vision cracks a little.
On Wednesday, Microsoft announced taking a staggering $7.6 billion writedown for Nokia's handset business, which it officially acquired just more than a year earlier for $9.5 billion with the goal of supercharging its position in the competitive smartphone market.
Microsoft won't kill off its flagship Windows phones, but it is slashing a big part of its commitment — cutting much of the staff that produced these devices and changing its strategy to focus on apps and the Windows platform rather than hardware.
The move is a familiar one for Microsoft. Build or buy your way into a promising market. Then retreat or re-tool as it becomes painfully apparent that it's just not working out. Microsoft killed the Zune that failed to rival the iPod. It took a $900 million charge related to the Surface RT tablet that was designed to compete with the iPad. And it bet big on smartphones only to walk back its investment as it remained far behind Apple and Google.
Under the leadership of Microsoft's ebullient former CEO Steve Ballmer, the company often acted like the friend arriving at a party late only to find the other guests had already moved to a new location.
The history of sudden pivots has created the impression that Microsoft is having an identity crisis.
Insiders rush to defend the company's strategy of quick changes. The staff cuts and massive writedowns are framed as marking an end to that era of excess rather than the continuation of old missteps. It comes amid a broader strategy shift under Satya Nadella, who took over as CEO early last year after the Nokia deal had been agreed upon, to trim the fat from a technology company infamous for trying to do everything and too few of those things well.
"They are still rebuilding their identity," says Frank Gillett, an analyst with Forrester Research. At one time, he says, Microsoft was closely identified with office productivity tools for desktop; now it wants to increasingly be known for its cloud services as well — while spending billions to buy the game Minecraft and acquiring a suite of smartphone applications. "They are working to articulate what that value proposition is to the individual and the business."
The newly defined mission, repeated in interviews and written statements by Nadella, is to "reinvent productivity." But Microsoft has yet to fully translate that vague mission of the average consumer. Indeed, even analysts and some former employees we spoke with admitted to some murkiness about the company's grand vision and identity.
Says Gillett: "They don't have nearly the strength with the individual today that Google and Apple do."
In search of relevance — and profitability — in the post-PC era
Microsoft may have a method to its madness: It was always trying to catch up. Now it's trying to cleanup and present a more coherent business.
"Under Nadella, they are fine-tuning a strategy to only focus on things that they know will be profitable," says Tim Bajarin, an analyst with Creative Strategies. That boils down to three key areas: Office 365, its cloud platform Azure and Windows 10. Other sections like Bing, said to finally be nearing profitability after six years, are shedding load to ensure they stay profitable.
Chasing profitability, while a sound pitch to investors, is hardly a motivating or defining vision for customers.
To win over new users and stay relevant, Microsoft is resorting to its old trick of acquiring its way to stronger footing, albeit this time with smaller deals. In recent months, it has effectively bought its way onto the homescreens of iPhone and Android users by acquiring popular applications like Acompli, Wunderlist and Sunrise.
Microsoft wants to be where the people are and it seems to have recognized the people are not usually on Microsoft phones. Hence making its iconic suite of Office applications available on competitors' operating systems.
Some might call it savvy; others might call it an act of desperation. Microsoft is intent on placing trapdoors in other mobile operating system so that users fall into its ecosystem almost without knowing it: through Sunrise, through Acompli, through older acquisitions like Skype, and the rest. # # #
- Eric L. - |
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| To: Eric L who wrote (134) | 7/10/2015 4:16:49 PM | | From: Jurgis Bekepuris | | | | | What went wrong? Nadella was not a mobile device CEO, he pretty much gave up on that part of the company from the outset. Nokia-Microsoft mobile devices needed a different Microsoft leadership in order to succeed. |
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| To: Eric L who wrote (134) | 7/10/2015 5:49:38 PM | | From: zax | | | | Hey Eric,
Microsoft Winding Down Windows Phone ... "Winding Down Windows Phone" doesn't seem like appropriate language.
Nadella stated, "I am committed to our first-party devices including phones,"
They certainly are paring back manufacturing and are indicating they no longer wish to be in a position of competing handset for handset against Chinese handset manufacturers in the low end in hundreds of markets. But I believe your language implies something other than what anyone has stated.
Patrick Moorhead, principal analyst at Moor Insights & Strategy, thinks Microsoft will continue with phones for now in a bid to build out its hardware/software ecosystem. "Microsoft will have something very similar to where the Surface line is now," he said. "The idea will be to create inspiring hardware that motivates their ecosystem. They'll go after the 'halo' effect."
Jack Gold, principal analyst at J. Gold Associates, sees it the same way. "The issue for me was always, if Microsoft owns Nokia, why would others want to make Windows phones? You're basically telling your OEMs, 'Compete directly with us,'" Gold said.
Regards,
-- Zax |
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| To: Jurgis Bekepuris who wrote (138) | 7/13/2015 1:14:23 PM | | From: Eric L | | | | Windows on Mobile Devices ...
<< What went wrong? Nadella was not a mobile device CEO, he pretty much gave up on that part of the company from the outset. >>
There is no question about that. He's not a 'devices and services' guy but a software (as a service) guy whether in the cloud or on a device.
He kept Elop and Harlow hidden from public view and perhaps internal function. I suspect evolution of devices (particularly smartphones/phablets) was not supported well and was a low prioity.
<< Nokia-Microsoft mobile devices needed a different Microsoft leadership in order to succeed. >>
At the CEO level to be sure. I think Elop/Harlow were rhe right division leaders, but also that Nadella viewed Elop as a threat and by extension Harlow as well.
Devices have never been Microsoft's forte and Nadella may have repositioned Microsoft onto a sensible track, but we'll have to wait and see.
Cheers,
- Eric L. - |
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| To: zax who wrote (139) | 7/15/2015 10:05:46 AM | | From: Eric L | | | | Paul Thurrott on the future of Windows Phone ...
"Let's be clear, Windows Phone is a failure. ... There's no future for Windows Phone." - Paul Thurott, July 9, 2015 -
... from last week's What The Tech Episode 266:
youtube.com (Video)
There is of course no more 'Windows Phone.' We are back to 'Windows Mobile' (specifically Windows 10 Mobile) and we'll evidently see 4 to 6 new 1st party Microsoft (Lumia?) Mobile devices released at an event on September 24th where the company will launch Windows 10 Mobile officially.
Paul's take on the future of the platform is discussed for 15 minutes starting at 25:16 of the webcast linked above. His lates comments are in the article below:
>> On Eve of RTM, Terry Myerson Speaks About Windows 10, Windows Phones and More
Paul Thurrot
July 14, 2015
thurrott.com
Microsoft’s Terry Myerson spoke at the Worldwide Partner Conference keynote yesterday, and as you might expect, his presentation focused largely on Windows 10. But as a Windows phone fan, I was most interested in what he said—or didn’t say—about this beleaguered platform.
So let’s address the elephant in the room first.
It’s pretty clear that my take on Microsoft’s smart phone moves has been perceived by many as being negative or at least overly-fatalistic. I don’t see it this way, obviously. In fact, I think the warning signs have been there for Windows phones for years. But I do spend an inordinate amount of time parsing what Microsoft says, and regardless of your take on my Windows phone opinions, you may find this mini-assessment of Mr. Myerson’s phone comments of interest. This is especially true as some see Myerson’s comments yesterday to be some kind of indication that Microsoft has recommitted itself to smart phones.
He did not do that.
Myerson did utter a version of the word “phone” 25 times during his bit at the WPC keynote. He repeatedly mentioned phone as a component of the Windows 10 device lineup—”the Internet of Things, on phones, tablets, PCs, Surface Hub and HoloLens,” for example—and there was a major Windows phone demonstration during his speech. These collectively indicate to me that Microsoft is trying to at least soften the blow of last week’s bad news.
My big takeaway, however, is that Myerson simply corroborated my belief that Microsoft’s short-term goal with Windows phone is to find some niche in which this platform can provide a unique and valuable differentiator for the short term: Continuum, a way to turn your phone into a PC. There was a lengthy Continuum demo that should excite the fans of this platform.
What Myerson didn’t do was say anything new about flagships. “Last week, we announced the focusing of our Lumia lineup,” he said. “But let me be clear, soon you will see premium new Lumias designed for Windows 10.” This was met by applause, even though we already knew this. And he was the only Microsoft executive to even utter the word “Lumia” during the entire WPC keynote on Monday. Several mentioned Surface, by comparison.
Long story short, I don’t feel WPC did a thing to change the picture I’ve presented about the future of Windows phones. We’re going to get at least two new flagship devices this year, Microsoft will make fewer and better-targeted handsets, and the firm has no intention of growing this business.
Again. We already knew all that. ... <snip rest> # # #
- Eric L. - |
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| To: Eric L who wrote (142) | 7/15/2015 10:20:59 AM | | From: zax | | | | Eric, these statements don't jive with Nadella's.
Nadella: Microsoft isn't killing Windows Phone and will go it alone if it has to
Windows Phone has a role to play as the mobile branch of the Windows 10 ecosystem, so it's here to stay.
pcworld.com
Windows Phone isn’t going away.
You might think it was doomed, following Microsoft’s reorganization of its phone business just days ago, especially after Microsoft wrote down the value of the business. Microsoft CEO Satya Nadella put those fears to rest, however, in an interview with ZDNet’s Mary Jo Foley.
Nadella has emphasized, time and again, that his goal is for Microsoft to establish new product categories that partners can build upon. In the phone business, however, partners haven’t followed Microsoft’s lead.
Nadella seems to be fine with that. “If there are a lot of OEMs, we’ll have one strategy. If there are no OEMs, we’ll have one strategy,” Nadella said of Windows Phone's future. Microsoft seems content to go it alone, or if a hardware partner like HTC or Samsung commits to the platform, that’s fine too.
</snip> Read the rest here: pcworld.com
More:
Microsoft may have just shut down most of its handset manufacturing business — but Windows Phone is far from dead, according to CEO Satya Nadella.
mashable.com
There are many more references to this. Microsoft even made this a lead story on Bing. In fact, new flagship phones to be released later this year, after Windows 10. |
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| To: Eric L who wrote (142) | 7/15/2015 11:05:57 AM | | From: Eric L | | | | John C. Dvorak on the future of Windowa Phone ...
>> Windows Phone Has a Future (Maybe)
All it takes for some success is for Microsoft to do one little, itsy-bitsy thing: talk about the stupid Windows Phone.
John C. Dvorak
PCMag,com
July 15, 2015
pcmag.com
There have been many articles lately bemoaning the flop known as Windows Phone. But I've been keeping up with the latest builds, either by visiting a Microsoft Store or borrowing a friend's device, and Windows Phone is not half bad anymore.
In fact, it's as competitive as anything out there, and Cortana seems better than Siri.
What's bad is the half-hearted sales and marketing efforts. If the Windows phone is dead, it is because Microsoft has sunk billions into the technology but virtually nothing into actually selling the device.
I've observed this lackluster effort over the past few years. It's also reflected in the media. Take, for example this Computerworld piece titled "Microsoft gives Windows phones one last shot. "The negative headline makes the whole phone strategy sound like a hopeless rescue mission.
In the piece, which emphasizes the failure of the Nokia acquisition and the $7.6 billion dollar write-off, there is this commentary, which struck a nerve: "Microsoft's smartphones will follow the trailblazing of the more successful Surface tablet line, which after two years with little return hit its stride in 2014 with the debut of the Surface Pro 3."
More successful? Hit its stride? That got my attention. Why would the Surface Pro be any more successful than Windows Phone? The phone is the basis for the whole Metro OS, from Windows 8 to the present. The focus for the latest version of Window is almost entirely the phone, yet it almost universally declared a pre-destined flop.
It looks more and more to me like the Windows Vista of smartphones: misunderstood and poorly marketed.
There was a Vista TV ad that came along after Vista failed to catch fire in the marketplace called The Mojave Experiment. A bunch of people were taken to a faux focus group and shown the OS of the future. The features were emphasized, the ease of use promoted. The pretty appearance was factored in. Everyone in the focus group said the future looked rosy and they would definitely buy this futuristic OS. Then it was revealed to be Vista. Everyone gasped.
The ad told me one thing: Microsoft botched the Vista marketing. The company realized that this ad was not showing the marketing in a good light. It was quickly taken out of circulation.
So what is the difference between the Surface and the Phone? Advertising.
When Windows Phone first came out, there were a few ads that were humorous but actually showed the phone in a bad light by emphasizing that other phones currently had people's attention, while the Microsoft phone was "efficient." The subtext was that the phone was boring.
Meanwhile, the folks who advertise the Surface were showing off its unique features in a jazzy eye-catching manner. Can you name one unique feature ever presented regarding the Windows phone? Nope. In fact, Microsoft seems to have killed advertising for the phone while staying the course with the Surface tablet/laptop.
There has been almost no effort to make this phone a success.
Windows Phone is never included in the discussion about phones. Listen to podcasts, read blogs. Who uses any Windows Phone as a point of comparison? It never happens. It's as if the Windows Phone does not exist.
I, for example, have never received a press release or a briefing or even a note announcing a new feature for the device. I've been in the scene writing about this stuff for 30 years. I don't solicit press material, but it is very noticeable when there is none whatsoever. They are not even trying or care to do much of anything. I've never seen anything like it. No ads, no promotions, no nothing. And yet Redmond wonders why there is no traction.
It's obvious. Someone threw in the towel after the first round
When someone suggests the company is being smart by cutting its losses and folding its tent I ask, "when did the company ever try to market the phone in the first place?" There has never been any effort except for the early ads and they were counter-productive. When the entire enterprise boils down to a $7.6 billion write-off, you have to wonder what it's doing.
There is upside potential, Microsoft. Just do something! # # #
- Eric L. - |
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| To: zax who wrote (143) | 7/15/2015 12:46:29 PM | | From: Eric L | | | | The Windows Phone (Windows 10 Mobile) Future (continued)
<< Eric, these statements don't jive with Nadella's. >>
They don't jibe with them either (vbg) but although I've been trying to figure out what Microsoft has been trying to do with 'devices and services' and how effectively they have done (or not done) so since Microsoft acquired Nokia's 'devices and services business' I don't see much of a future for Microsoft designed and manufactured mobile devices running on ARM architected silicon and Intel doesn't yet have a near term viable alternative and keeps pushing the latest Atom chips out.
The Mark Hachman article for PC World you linked states "You might think it was doomed, following Microsoft’s reorganization of its phone business just days ago, especially after Microsoft wrote down the value of the business. Microsoft CEO Satya Nadella put those fears to rest, however, in an interview with ZDNet’s Mary Jo Foley. Microsoft CEO Satya Nadella put those fears to rest, however, in an interview with ZDNet’s Mary Jo Foley."
They didn't put my fears for what is currently branded as 'Lumia' to rest even though some 4 to 6 Lumia devices will be released in a few months and hopefully will ship shortly afterwards to select network operators in select countries.
What Satya said to Mary Jo is in the article in the next post.
Cheers,
- Eric L. - |
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