CNNMoney: Microsoft is a dying consumer brand

Apple Online StoreDavid Goldman reports for CNNMoney, “Consumers have turned their backs on Microsoft. A company that once symbolized the future is now living in the past.”

MacDailyNews Take: Microsoft never symbolized the future to anyone who even partially understood what they were witnessing. Microsoft symbolized “oh, look, I can get something that I delude myself is close to a Mac because I’m too cheap and/or ignorant to get the real thing.”

Goldman continues, “Microsoft has been late to the game in crucial modern technologies like mobile, search, media, gaming and tablets. It has even fallen behind in Web browsing, a market it once ruled with an iron fist.”

MacDailyNews Take: Illegally.

Goldman continues, “It’s not like Microsoft didn’t foresee the changes ahead. With a staff of almost 90,000, the company has many of the tech world’s smartest minds on its payroll, and has incubated projects in a wide range of fields that later took off.”

MacDailyNews Take: We, of all people, could run the company better than Ballmer with 1/10th the staff. Imagine what a real CEO could do. (May Ballmer remain Microsoft CEO for as long as it takes!)

Goldman continues, “Experiments like Courier (tablets), HailStorm/Passport (digital identity), and Windows Media Center (content in the cloud) show the company was ahead of the game in many areas — but then it either failed to bring those products to market, or didn’t execute.”

MacDailyNews Take: Courier was total vapor intended to distract from Apple’s real tablet. Obviously, it worked for the easily distracted. That Goldman includes it as an example of being “ahead of the game” is a joke and ought to be embarrassing to him. Ignorance is bliss.

Goldman continues, “‘In this age, the race really is to the swift. You cannot afford to be an hour late or a dollar short,” says Laura DiDio, principal analyst at ITIC. “Now the biggest question is: Can they make it in the 21st century and compete with Google and Apple?’ Some influential analysts think not. Several have downgraded Microsoft’s stock in recent weeks, as PC sales continue to slow and Microsoft struggles with its tablet strategy. The company’s stock is down more than 17% this year.”

“As Apple has proven, success in consumer products can fuel explosive growth. Apple surpassed Microsoft’s market value earlier this year, and is on pace to eclipse the company in sales for 2010,” Goldman reports. “And if Microsoft cedes consumer ground, it risks its enterprise stronghold. Businesses are becoming more willing to allow employees to use their personal devices for work purposes, and a growing number of those gizmos are Macs, iPads, [and] iPhones…”

Full article here.

MacDailyNews Take: It’s telling that even people who are as confused about what Microsoft was/is as Goldman are beginning to see the end. People are finally waking up. The one true innovator will win the war, not the bloated, slow-footed imitator whose only real “win” came when Apple was being run (into the ground) by incompetents.

124 Comments

  1. Further choice quotes from the source article, emphasis = mine:

    “Windows Phone 7 has promise, but Microsoft dug itself an enormous hole with the subpar Windows Mobile platform. With its market share currently sitting below 5%, developers are taking a “wait and see” approach.”

    “Microsoft’s media platform Zune was dead on arrival.

    “Bing is growing, but substantially all of that growth has come at the expense of its business partner, Yahoo — not its archrival Google.

    “Microsoft’s attempts to build a social network through Windows Live have failed to gain traction. It has no real answer to Facebook.

    And there’s more…

  2. “MacDailyNews Take: Microsoft never symbolized the future to anyone”

    But what about The Road Ahead?” ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  3. “MacDailyNews Take: Microsoft never symbolized the future to anyone”

    But what about The Road Ahead?” ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  4. Such an insightful crowd today! @The Other Steve sez: “But what about “The Road Ahead?””

    I bought a $1 copy off the cutout rack at the bookstore. It was actually a profoundly prophetic book. The road ahead for Microsoft has been just like Gate’s book: Full of ideas ripped off from someone else. I can’t recall the book containing a single original thought.

    Meanwhile, the road ahead for the computer community is far more interesting and innovative with Microsoft fading to black.

  5. Such an insightful crowd today! @The Other Steve sez: “But what about “The Road Ahead?””

    I bought a $1 copy off the cutout rack at the bookstore. It was actually a profoundly prophetic book. The road ahead for Microsoft has been just like Gate’s book: Full of ideas ripped off from someone else. I can’t recall the book containing a single original thought.

    Meanwhile, the road ahead for the computer community is far more interesting and innovative with Microsoft fading to black.

  6. Now I know this is a Mac website, but I want to assume even-keeled, unbiased POV will exist here and there; so I will touch upon a few points.

    – “oh, look, I can get something that I delude myself is close to a Mac because I’m too cheap and/or ignorant to get the real thing.”

    Would that include those who have solid PCs that offer much more power than a Mac, but still less the price? And who really experience no problems on PCs? For instance, I purchased my HP Elite almost 6 months ago for under $1000 after taxes & shipping: Core i7, 8GB RAM, 1GB graphics card. At the same time, a Mac Pro starting at $2500 had a quad-core Xeon (solid no doubt, but no hyperthreading & older gen to the i7), and 3GB RAM. 3GB. At $2500. And don’t tell me about system stability. It’s been several months. No crash. Not one. Similar to the 5-year old PC it replaced that NEVER crashed once. And as some have stated, some people simply need basic email & Internet machines, with the occasional Word or PowerPoint document.

    And what about applications not available for the Mac? Is the 3ds Max user stupid for not buying a Mac? You know, seeing as it’s not available for a Mac? And yes, you can run it on a Windows partition on a Mac, but then you’d have to purchase a copy of Windows now, wouldn’t you? Don’t forget, most computer decisions are made by the applications people run. And where available across platforms, businesses will look at cost. How many companies do you really think can afford thousands of Mac client machines?

    – And let’s not forget, Apple’s presence has been mostly in the home consumer market. They are nearly non-existent in enterprise computing, where Microsoft remains huge. iPhones and iPads have a niche in the enterprise, no doubt, but only as extensions of the proper client machine. No office user replaces his office computer with and iPad.

    Apple and Microsoft do have their place in computing; Microsoft does have a lot to do, especially in mobile computing. But not all computing is mobile computing. Mobile computing is mostly content consumption; the content creation itself is usually on desktops, workstations, and laptops. This will not change, seeing as mobile computing, by definition, will mean relatively smaller screens and lesser power (no matter how powerful and energy-efficient processors become, you can always fit much more into larger machines).

    And as successful as Apple is in mobile, they are not necessarily unstoppable; they did once dominate desktop computing, you know.

  7. Now I know this is a Mac website, but I want to assume even-keeled, unbiased POV will exist here and there; so I will touch upon a few points.

    – “oh, look, I can get something that I delude myself is close to a Mac because I’m too cheap and/or ignorant to get the real thing.”

    Would that include those who have solid PCs that offer much more power than a Mac, but still less the price? And who really experience no problems on PCs? For instance, I purchased my HP Elite almost 6 months ago for under $1000 after taxes & shipping: Core i7, 8GB RAM, 1GB graphics card. At the same time, a Mac Pro starting at $2500 had a quad-core Xeon (solid no doubt, but no hyperthreading & older gen to the i7), and 3GB RAM. 3GB. At $2500. And don’t tell me about system stability. It’s been several months. No crash. Not one. Similar to the 5-year old PC it replaced that NEVER crashed once. And as some have stated, some people simply need basic email & Internet machines, with the occasional Word or PowerPoint document.

    And what about applications not available for the Mac? Is the 3ds Max user stupid for not buying a Mac? You know, seeing as it’s not available for a Mac? And yes, you can run it on a Windows partition on a Mac, but then you’d have to purchase a copy of Windows now, wouldn’t you? Don’t forget, most computer decisions are made by the applications people run. And where available across platforms, businesses will look at cost. How many companies do you really think can afford thousands of Mac client machines?

    – And let’s not forget, Apple’s presence has been mostly in the home consumer market. They are nearly non-existent in enterprise computing, where Microsoft remains huge. iPhones and iPads have a niche in the enterprise, no doubt, but only as extensions of the proper client machine. No office user replaces his office computer with and iPad.

    Apple and Microsoft do have their place in computing; Microsoft does have a lot to do, especially in mobile computing. But not all computing is mobile computing. Mobile computing is mostly content consumption; the content creation itself is usually on desktops, workstations, and laptops. This will not change, seeing as mobile computing, by definition, will mean relatively smaller screens and lesser power (no matter how powerful and energy-efficient processors become, you can always fit much more into larger machines).

    And as successful as Apple is in mobile, they are not necessarily unstoppable; they did once dominate desktop computing, you know.

  8. Innovation?? Microsoft…. Sorry they have NEVER EVER been that. As a copy product company. They are A+. They have copy or bough they way this far. And people are seeing the Emperor has no cloths on now. You can only generate Smoke and Mirrors so long before people realize there is nothing there.

    The main difference between Microsoft and Apple is organization. MS is the typical fiefdom, too many people etc company. You can see it in ideas that would be great but either sabotaged or not stopped in the design process when its obvious it wont work!

    Microsoft is like the part from that stupid Chita Chita Bang Bang movie. Where the king captures Pots’s Father and demands he makes a auto for him that has these wonderful features. The other capture scientist start hanging thing off of a Bulgarian car during the musical number and it explodes at the end of the song. The actor playing the king kind of looks like Balmer.

  9. Innovation?? Microsoft…. Sorry they have NEVER EVER been that. As a copy product company. They are A+. They have copy or bough they way this far. And people are seeing the Emperor has no cloths on now. You can only generate Smoke and Mirrors so long before people realize there is nothing there.

    The main difference between Microsoft and Apple is organization. MS is the typical fiefdom, too many people etc company. You can see it in ideas that would be great but either sabotaged or not stopped in the design process when its obvious it wont work!

    Microsoft is like the part from that stupid Chita Chita Bang Bang movie. Where the king captures Pots’s Father and demands he makes a auto for him that has these wonderful features. The other capture scientist start hanging thing off of a Bulgarian car during the musical number and it explodes at the end of the song. The actor playing the king kind of looks like Balmer.

  10. This is a very good article that highlights the growing trend that there is a tectonic shift going on in the market. It also reflects Microsoft’s primary drive to bring shareholder value by monopolizing markets using the strategy that made it successful.

    However, that strategy is not translating to future success. Here is what I would if I were running Microsoft:

    1. Sell off units that really aren’t core to the company success and aren’t profitable.
    2. Unify technologies as a go-forward direction rather than allow business units to compete against each other.
    3. Reduce the number of developers and have the teams work on different products so that there is more of a seamless experience between products.
    4. Instead of trying to corner markets by buying everyone up, corner markets by competing openly for business which forces innovation and creativity. Buy only companies that provide a unique strategic value.
    5. Stop suing everyone and everybody because they don’t have all their licensing in order. That does not bode well for long term support.
    6. Forget about taking on Google and Apple. Rather, find a way to leverage them and ride the wave together. You can build loyalty and customer stickiness with your core products if you put in features that get people to consume services that you’re not good at.

    I’m willing to bet that if Microsoft sold off most of their divisions and kept Office and Azure, Windows, Exchange, and SQL Server, they would be even more profitable and would have billions more in the bank from selling off the money-losing software divisions.

    Then they could be even more focused on introducing the next generation of Windows (without a registry) that would also enable the next generation of hardware.

  11. This is a very good article that highlights the growing trend that there is a tectonic shift going on in the market. It also reflects Microsoft’s primary drive to bring shareholder value by monopolizing markets using the strategy that made it successful.

    However, that strategy is not translating to future success. Here is what I would if I were running Microsoft:

    1. Sell off units that really aren’t core to the company success and aren’t profitable.
    2. Unify technologies as a go-forward direction rather than allow business units to compete against each other.
    3. Reduce the number of developers and have the teams work on different products so that there is more of a seamless experience between products.
    4. Instead of trying to corner markets by buying everyone up, corner markets by competing openly for business which forces innovation and creativity. Buy only companies that provide a unique strategic value.
    5. Stop suing everyone and everybody because they don’t have all their licensing in order. That does not bode well for long term support.
    6. Forget about taking on Google and Apple. Rather, find a way to leverage them and ride the wave together. You can build loyalty and customer stickiness with your core products if you put in features that get people to consume services that you’re not good at.

    I’m willing to bet that if Microsoft sold off most of their divisions and kept Office and Azure, Windows, Exchange, and SQL Server, they would be even more profitable and would have billions more in the bank from selling off the money-losing software divisions.

    Then they could be even more focused on introducing the next generation of Windows (without a registry) that would also enable the next generation of hardware.

  12. “Microsoft is a dying consumer brand”

    Horsefeathers!
    MS is a dyeing company,the article yet another “prop up MS” piece. The lack of shame among the “tech press” is appalling.

    Ms is not wearing any clothing and the press rabbles on about how they forgot to wear shoes, yeah but how about the rest of it you are clearly avoiding,

    And the nonsense about MS having once been an “innovator”, is laughable at best. It is interesting he picked courier as an example of MS innovation. Very deja vu for those old enough to remember the knowledge navigator.

    Organizations rot from the inside out, typically by the time it become noticeable on the outside, the fall is inevitable.

  13. “Microsoft is a dying consumer brand”

    Horsefeathers!
    MS is a dyeing company,the article yet another “prop up MS” piece. The lack of shame among the “tech press” is appalling.

    Ms is not wearing any clothing and the press rabbles on about how they forgot to wear shoes, yeah but how about the rest of it you are clearly avoiding,

    And the nonsense about MS having once been an “innovator”, is laughable at best. It is interesting he picked courier as an example of MS innovation. Very deja vu for those old enough to remember the knowledge navigator.

    Organizations rot from the inside out, typically by the time it become noticeable on the outside, the fall is inevitable.

  14. In 5-years Microsoft will be competing with Oracle and IBM for a small slice of the server market. Vista, Windows 7 and anything else built on that kernel will suck!

    If you are okay with daily crashes, severe system updates and spam, stay with Microsoft. If you want something that simply works, then fork over the extra cash for Apple. Nothing has changed, ladies and gentlemen, in this world you get exactly what you pay for.

    I got my iPad when it first came out. I have a 15-inch Macbook Pro that’s only a year old and I haven’t touched it since I got my iPad. I have a Core Duo back up tower with a 24″ monitor that’s running the only MS OS i will ever run…and that’s Windows XP.

    I will never purchase or run another Windows operating system, when I retire my Windows back-up system for a Mac back-up system. I’m tired of viruses (had to reinstall my Windows Machine 3-times in the last two-years). I’m tired of expensive anti-virus software and never ending updates.

    Microsoft is like 4-Track audio cassettes, CDs, Cassette tapes, VCRs, Buggy Whips, Horse-less Carriages, Mimeographs, Typewriters, Milli-Vanilli, Keypunch Machines, Manual Cash Registers, Newspapers, Human Bank Tellers…and soon to be Cable Companies…they’re all unnecessary, outdated and antiquated. Good luck Microsoft. Thanks for all the memories off lost hours, aggravation, stress and wasted life.

  15. In 5-years Microsoft will be competing with Oracle and IBM for a small slice of the server market. Vista, Windows 7 and anything else built on that kernel will suck!

    If you are okay with daily crashes, severe system updates and spam, stay with Microsoft. If you want something that simply works, then fork over the extra cash for Apple. Nothing has changed, ladies and gentlemen, in this world you get exactly what you pay for.

    I got my iPad when it first came out. I have a 15-inch Macbook Pro that’s only a year old and I haven’t touched it since I got my iPad. I have a Core Duo back up tower with a 24″ monitor that’s running the only MS OS i will ever run…and that’s Windows XP.

    I will never purchase or run another Windows operating system, when I retire my Windows back-up system for a Mac back-up system. I’m tired of viruses (had to reinstall my Windows Machine 3-times in the last two-years). I’m tired of expensive anti-virus software and never ending updates.

    Microsoft is like 4-Track audio cassettes, CDs, Cassette tapes, VCRs, Buggy Whips, Horse-less Carriages, Mimeographs, Typewriters, Milli-Vanilli, Keypunch Machines, Manual Cash Registers, Newspapers, Human Bank Tellers…and soon to be Cable Companies…they’re all unnecessary, outdated and antiquated. Good luck Microsoft. Thanks for all the memories off lost hours, aggravation, stress and wasted life.

  16. Welcome to the 21st century, Jim. You just realized that M$ can’t cut it? They’ve never been ahead of the curve. Back in the days when MS-DOS was in IBM 8080 machines with monochrome text, no sound, no color, and no graphics it was already behind 6502 and 6510 Commodore, Apple, Atari, etc. which already had color and sound, as well as graphics. Adopting M$ products has ALWAYS been a step backwards.

  17. Welcome to the 21st century, Jim. You just realized that M$ can’t cut it? They’ve never been ahead of the curve. Back in the days when MS-DOS was in IBM 8080 machines with monochrome text, no sound, no color, and no graphics it was already behind 6502 and 6510 Commodore, Apple, Atari, etc. which already had color and sound, as well as graphics. Adopting M$ products has ALWAYS been a step backwards.

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