tag:blogger.com,1999:blog-726517614184169426.post2631462145362687086..comments2023-08-23T04:15:41.751-05:00Comments on The Jaded Consumer: Ballmer as inverse barometer for the new Apple?Jaded Consumerhttp://www.blogger.com/profile/04631410690179296528noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-726517614184169426.post-80156921135974056452009-09-30T10:38:23.720-05:002009-09-30T10:38:23.720-05:00Microsoft has tried to tie some of these together ...Microsoft has tried to tie some of these together using a similar online marketplace that uses the same not-really-currency points system, in the apparent hope that the shopping community will see value in spending spare "points" (they are sold in bundles designed to make it impossible to not have spare change) on some other Microsoft-vended service or license. Like a carnival that sells tickets at 7 per $10 and sells all products in increments of 5 tickets, Microsoft apparently hopes both to baffle people's math and persuade them to buy just a few more points. Microsoft's points pricing is so odd, though, that it takes more than $50 to make sure you won't have spare change.<br /><br />Microsoft will continue to enjoy outstanding, high-margin software business from its installed base as those customers buy new hardware and make incremental expansions. Many of those customers have substantial investments in Microsoft-product-driven solutions, a fact Microsoft exploits and drives into the future with its consulting division's work to solve all problems with Microsoft products. In most businesses, the consulting income would be the gravy (e.g., at HP it's higher-margin than the hardware), but at Microsoft the services cost Microsoft so much to deliver that it actually drags margins down. However, it's both profitable and a strategic move to ensure future enterprise business. Shelling out for all that custom work buys a lot of lock-in.<br /><br />However, Microsoft's days of being guaranteed to surprise onlookers with unexpectedly high profits may be behind it. I just don't see much innovation there, and the business of milking an installed base works against serious revolution.Jaded Consumerhttps://www.blogger.com/profile/04631410690179296528noreply@blogger.comtag:blogger.com,1999:blog-726517614184169426.post-6969623623684945122009-09-27T00:34:17.241-05:002009-09-27T00:34:17.241-05:00Terrific Article!!
I used to love MSFT and its pr...Terrific Article!!<br /><br />I used to love MSFT and its products, but lately they make me cringe. I mean how terrible is Ballmer??? Why is he still running the company??? It seems to me, he just doesn't get it.<br /><br />There is a huge shift to the mobile platform and MSFT has already lost. Windows Mobile sucks so bad, and I don't think it will be able to catch up to iPhone OS, Android, and WebOS. <br /><br />The new Zune may be really cool and an enormous improvement, but it's a little way way too late. And X-Box does well, but really, how big is that market? I know it's large but competition is intense and iPhone gaming is now encroaching, as will other mobile platforms. <br /><br />How does MSFT tie-in X-Box, Zune, Mobile, Office, Online, and Desktop OS? So that each leverages the power of the others, creating synergies that result in a halo effect. Seems to me, each MSFT prd/svc group all head in separate directions that convolute the entire brand and overall solution. <br /><br />I don't know, just my observations. But anyway, terrific post!Turley Mullerhttps://www.blogger.com/profile/01407515956935491747noreply@blogger.com