Wednesday, September 4, 2013

My 2¢ on the Microsoft-Nokia deal.

After reading Om Malik’s “Why I think the $7.2 Billion Microsoft-Nokia deal is a terrible idea” I started thinking about the way times are changing and questioning Microsoft’s scrambling around. I have read they are trying toMicrosoft logo 002 go the Apple way with controlling the devices. I also read that Google is eating into their markets. Time changes everything – as Apple can attest to. Microsoft needs to re-invent itself and not in the Apple mold or as Google.

For the most part I have to agree with Om Malik and his focus on this rather interesting direction at Microsoft however my thoughts go along a somewhat different line.

I like to look at Microsoft as three independent forces trying to operate inline with each other; Enterprise, Windows OS, and the Office software business. So much so inline with the other internal forces that it limits each groups own innovation.

Enterprise has it's own nightmare. At one time it was controlled completely by corporate inside IT people, today that may not always be the case. Microsoft’s Enterprise division (group) needs it's own direction without influence from other internal sources. The Enterprise side needs to be flexible and open to all the devices currently being relied upon my the organizational worker – or ‘consumer’. As I see it the Enterprise is becoming less of a dictatorial environment and more democratic. BYOD is becoming (has become in some cases) the standard. They will be connecting that Apple, Google, Amazon, device to the internal network. Forcing Enterprise to work with Windows or Microsoft Office could create a bind in the long run.

As for the Window OS division they have their challenges. Chrome is gaining OS share over Apple and could over take Microsoft Windows in the open market (I said could). The Windows OS (and I like 8.1) is still not as quick or as open to accepting outside app’s as it should be. Again that is if it wants to stay number one or become iOS whose market is still on the small side but totally independent. Based on what is happening to the Enterprise area, iOS and Chrome could very well be a contender for space, and perhaps already are. 

The one big 'potential' money end for Microsoft is the Office software. Microsoft needs to acknowledge the advances of Google and Apple (and perhaps Amazon) in the tablet and phone markets and provide 'real time' app's for these devices, something other than connection to SkyDrive. It will hurt their large dollar revenue numbers in the short run however other cost savings will also go along and profit could, in the long run, still be there.

I priced out a laptop computer this week for someone and in the process discovered that to go from 8GB of RAM memory to 16GB was only $80. Two years ago that was $300. Perhaps Microsoft won’t be able to sell that Office package in the future for $400 – who will use it?

Question: Should Microsoft become the Microsoft Group? Operating 3 independent Public companies?

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