“Who in his right mind would step into the ring against the iPod? Apple Computer’s sleek music-player, and its iTunes software and online store, dominate the digital-music industry as comprehensively as Microsoft’s Windows operating system dominates desktop computing. But just as Apple has tried for years to loosen Microsoft’s grip on computing, so Microsoft now hopes to loosen Apple’s hold on digital music. On November 14th, the software giant will launch Zune, a music-player that looks and works very much like an iPod,” The Economist reports.
The Economist reports, “Zune is unlikely ‘to make any dent at all in Apple’s market share,’ says Tim Bajarin of Creative Strategies, a consultancy in Silicon Valley. But Microsoft probably has no choice but to try, he adds. During its first 25 years, he says, Microsoft succeeded above all by bringing computer technology to businesses; to succeed in its next 25 years, it must turn its attention to consumer gadgets, for that is where the innovation and growth will be. But the formula with which Microsoft achieved its dominance in the first round appears not to be working in the second. So Zune is based on a very different business model-evidence that Microsoft is changing.”
“The Zune device does not work with other online stores, even those of Microsoft’s partners; and Zune Marketplace does not offer songs for non-Zune devices. Zune, in other words, is a proprietary bundle of hardware, software and service-exactly like Apple’s iPod-iTunes combination,” The Economist reports. “For Microsoft this amounts to an about-face shocking enough that Robbie Bach, the executive who runs the company’s entertainment division and who devised the strategy, goes out of his way to play down its importance.”
The Economist reports, “Microsoft has ditched the idea of providing enabling software to other firms in favour of Apple’s approach of doing everything itself. Its first move in this direction came with its Xbox games consoles, in which hardware, software and an online service are tightly coupled. (The Xbox division also reports to Mr Bach.) Zune is much more controversial, however, because Microsoft’s pre-existing hardware and service partners are left high and dry. ‘I’ve never seen a business so blatantly screw its business partners,’ says Peter Sealey, a professor at Berkeley’s Haas School of Business.”
Full article here.
Related articles:
Analyst: Zune could lead to ‘civil war’ between Microsoft and Windows Media partners – September 29, 2006
In wake of Zune announcement, should ex-Microsoft ‘partners’ join iPod ecosystem? – July 27, 2006
Analyst: Microsoft partners zune to be the biggest losers – July 25, 2006
In wake of Zune, Microsoft ‘partners’ consider abandoning PlaysForSure – July 25, 2006
>’I’ve never seen a business so blatantly screw its business partners,’ says Peter Sealey, a professor at Berkeley’s Haas School of Business.”<<
Apparently he doesn’t follow MSFT’s partnering schemes. MSFT has a long history of screwing “partners”
‘I’ve never seen a business so blatantly screw its business partners,’ says Peter Sealey, a professor at Berkeley’s Haas School of Business.”
EXACTLY.
‘I’ve never seen a business so blatantly screw its business partners,’ says Peter Sealey, a professor at Berkeley’s Haas School of Business.”
Then he must not have been observing Microsoft for very long. This is their historic behavior in a nutshell, going back decades.
Another analyst that doesn’t know what he’s talking about. How do people like this get hired, anyway?
MS is a big ol’ brontosaur with bad hips and trick knees.
Apple is a velociraptor, nipping at it’s heels
‘I’ve never seen a business so blatantly screw its business partners,’ says Peter Sealey, a professor at Berkeley’s Haas School of Business.”
I couldn’t resist following the first three posts.
“For Microsoft this amounts to an about-face shocking enough that Robbie Bach, the executive who runs the company’s entertainment division and who devised the strategy, goes out of his way to play down its importance.”
Boy, that’s a tough job, huh? Look at what Apple did, and then copy it. Wait, that’s what all of Microsoft’s executives do.
During its first 25 years, he says, Microsoft succeeded above all by bringing computer technology to businesses…
The only reason Microsoft succeeded is because of John Scully’s treachery against Steve Jobs, Apple lost it’s visionary and innovator for awhile.
Microsoft certainly didn’t win the OS wars based upon quality and service, more like downright treachery.
I’m willing to bet Bill Gates bought John Scully, lock stock and barrel.
Steve Jobs had a temper back then, Gates used it.
‘I’ve never seen a business so blatantly screw its business partners,’ says Peter Sealey, a professor at Berkeley’s Haas School of Business.”
LOLOLOL
Everyone in the real IT world knows that Microsoft is the leader in terms of innovation and implementation, regardless of what new market it deems to enter. Microsoft’s former partners may cry foul over previous partnerships, but the real truth is these third-party vendors were abhorrently unsuccessful in advancing the PlaysForSure concept, a brilliant strategy by Microsoft that was unfortunately hampered by inept partners either unable or incapable of following Microsoft’s precise specifications. Microsoft in no way should be held responsible for the failures of these third parties.
Microsoft has every right to advance its business model, and because of the lack of support in regards to PlaysForSure that it received from these partnerships, it evolved its strategy to be less dependent on outside variables. Microsoft should be commended for this new approach, and not reviled as so many on this site have a propensity to do.
©
“I’ve never seen a business so blatantly screw its business partners,’ says Peter Sealey, a professor at Berkeley’s Haas School of Business.”
I want in on the action too.
M$ succeeding for the next 25 years? I doubt they’ll be around that long. It’s basically “game over” for them.
Microsoft could not “copy” Apple anymore than Inspector Clouseau could be James Bond.
“‘I’ve never seen any other business so blatantly screw its business partners,’ says Peter Sealey, a professor at Berkeley’s Haas School of Business.”
T,FTFY
@ Rabid Dog: John Sculley probably saved Apple at the time. It was Steve Jobs who was running the company into the ground back then, and the Apple Board rightfully stripped him of his power. Jobs v2.0 learned quite a few lessons from that experience and is an entirely different kind of executive today.
“The Zune device does not work with other online stores, even those of Microsoft’s partners; and Zune Marketplace does not offer songs for non-Zune devices. Zune, in other words, is a proprietary bundle of hardware, software and service-exactly like Apple’s iPod-iTunes combination,” The Economist reports.
Does anyone know if the Zune works with Mac or Linux?
It isn’t “exactly like Apple’s iPod-iTunes combination” if it is tied to only one OS.
I notice there isn’t much Zune news on here today…
~M
Your point “…PlaysForSure concept, a brilliant strategy by Microsoft that was unfortunately hampered by inept partners either unable or incapable of following Microsoft’s precise specifications.”
This is was not a brilliant strategy, rather, it was their PC model tried again in a consumer market who does not accept 5-7 years of working out the compatibility bugs and market consolidation (AKA the once emerging PC HW/OS vendor model).
Your point that this new approach is great undermines what you just said about PFS.
Either one model is brilliant and the other is not, but both are not fantastic, as PFS failed, miserably.
The xBox and Zune models are locked-in, completely vertical solutions, and consumers are voting that so long as it “just works” and is easy to use and delivers what they want, they will buy it.
Zune is the right model, it is just five years behind the curve, and pulled off only half-right. Unless Microsoft truly builds their own hardware, and takes the time and effort to invest in miniature solutions like Apple has in the iPod, it will be relagated to a marginal player.
After all, Microsoft has been able to hold onto the mass PC market for 5+years, even though Apple has had a better OS and amazingly developed hardware solutions.
Now, even if Redmond produces something even slightly better (they are not even close yet), will it even matter?
As Redmond appologists loved to once say “Whatever the Mac does, it is irrelevant to the marketplace.” The same will be said with Zune.
Wiht Steve Jobs at the helm, Microsoft can only hope to come close, and never top, the overall iPod experience. This leaves it no play to gather any iPod/iTunes market share.
Up next: Cell phones and the living-room.
Mozfan,
YOU SAID IT! It’s not “exactly” like Apple’s solution, at all. iTunes is the DRM music store compatible with Mac. Period.
I found a way to sneak a Zune out of the store today. I removed it from the package and quickly shoved it up my ass. Store security had no idea that a Zune was up my ass. It was hard to walk, because the Zune is so heavy, but I quickly made my way out of the store and “passed” the Zune in the parking lot. WOO HOO!!! FREE ZUNE!!!
One more time for the cheap seats in the back…
“I’ve never seen a business so blatantly screw its business partners,’ says Peter Sealey, a professor at Berkeley’s Haas School of Business.”
> Everyone in the real IT world knows that Microsoft is the leader in terms of innovation and implementation…
What?!? I am in the real IT world (have been for many years) and this statement is so “out there” I don’t even know where to start refuting it. Most everyone in the real IT world hates Microsoft and painfully uses their products.
Except Zune is PC only and iTunes is not. Therefore the Zune is a totally propriatary and iTunes is not. Zune is so locked up it’s worthless compared to an iPod and iTunes which is the most tolerant DRM out there today.
Microsoft has no concept of how to run a business like Apple and never will. They also don’t have the one advantage Apple has. Apple does the hardware and the software and they engineer it for each other so it just works. Micrsoft on the other hand tries to put a square peg in a round hole. A total disaster to say the least. It won’t work for Microsoft especially if they have big mouth leading the way.
“I’ve never seen a business so blatantly screw its business partners,’ says Peter Sealey, a professor at Berkeley’s Haas School of Business.”
Was he talking about Steve cancelling the Mac Clone licenses?
“Except Zune is PC only and iTunes is not. “
The Zune runs on a Mac through Boot Camp or Parallels. Within a few years that will be the only way to get ANY software for the Mac not made by Apple.
For the new guys here, Sputnik is our resident troll who tries very hard to be witty in supporting MS. Read everything he writes with dripping sarcasm, and try to respond with more wittiness. No need to get worked up or upset.