10.25.2012

Microsoft: Revitalized?


Microsoft Innovation

Microsoft has surprisingly been very low-key in recent quarters. Still signs are looking promising as they slowly plod into new territory.

First, is hardware capability. Yes, Microsoft has had Xbox for quite a while, but let’s not forget that this was their first and very successful entrance to hardware. They took down an incumbent in Sony and played toe-to-toe with them (if not surpassing them). Not only that, they have invested in very promising gesture sensing technology (Kinect), something that may find itself in new capabilities with their computer software. We are also seeing an entrance to mobile and tablets, so this is promising for Microsoft.

Second, is reconfiguring its UI systems. This means the gestures, touch, and the mouse have the ability to be translated to their software. Do not forget Windows is still the most popular OS in the market and Microsoft has the ability to drive new innovations in UI. We are already seeing this in the Surface, but it will be interesting how this plays with other manufacturers.

Rebranding

You can see a change in the image of Microsoft. Right now, they are the standard bearer for OS software and playing it safe with their launches of Windows, but they’ve taken this opportunity to shift its image through multiple launches in Windows 8, Exchange Email System, Mobile OS, and Tablet OS.

Bing has been aggressively comparing itself to Google in web and TV commercials. Whether this switches people’s preference on search, it’s a healthy competitive stance. Google enjoys the #1 spot in internet search, Bing has the ability to steal market share, meaning it only has growth to look forward to. That cannot be said about Google, where their strategy is maintenance.

A big opportunity for Microsoft is in their hardware gaming division, namely Xbox. Where Apple has successfully integrated its divisions with one another (iPad, iPod, iMac, and iTunes work together), Microsoft has an opportunity to link their OS to Xbox. What does this mean? Well, imagine the Xbox community be able to connect with PC and mobile gamers. Or even sharing capabilities with other devices: accessing media and social networking.

High Risk / High Reward

Microsoft’s rebranding and increase in innovation has a high risk factor. First, they are playing catch up with a growing market. Second, radical changes can turn away loyal customers and developers due to its unfamiliarity. Still, there is a large market to win back and capture as they make these changes. Adoption is the key to these risks and Microsoft is in position to literally force adoption. They enjoy being one of only three OS in the market and being the one that’s already in most new PC’s. If the reception of Windows 8 is successful, it opens the adoption to the mobile and tablet market, since they are similar. This momentum can then be rolled out into their Xbox system.

Still, what do you think? I’m optimistic, in what I see because the opportunities are there in plain view, but there are many obstacles in the way.

Thoughts & Opinions: Apple Event on October 23


Apple's Computer Line Direction


Times are changing and so is Apple's line of computers. They have begun to phase out technologies and capabilities that people have grown accustomed to. Most notable are disc drives, optical drives, and customizable capability.

Starting with the storage drives: Flash Hard Drive & Optical Drive. Starting with Flash, there are definite advantages in reading and writing capabilities using a flash only system. The major drawback is the expensive dollar per GB of storage ratio. This is forcing the consumer to trade-off storage for performance. I agree this is the future, but notably in the notebook line-up, this is now becoming Apple's preferred, and more expensive, choice.

For many, the next progressive step for an optical drive is blu-ray, though Apple has done away from this. Still there are substitutes to this media being a flash thumb drive and portable external hard drive, both of which are more portable and flexible. As with large storage hard drives, people love extra space for music, pictures, and movies. Still, we are seeing the storage of these media on other channels, such as the cloud and streaming websites. Even then, for additional storage external hard drives help better organize and back-up. Is having Blu-ray or a DVD optical drive nice to have? Yes, but it is not necessary moving forward.

Lastly, modification has phased out of Apple. Many computer owners are part of the generation of PC customization. If they need more space, add a new hard drive. If you need more speed, add memory or a new chipset. Or if you want to be on the cutting edge, replace components to be “up-to-date”. Depending on the person, this customization is meant to be economical, practical way of keeping 'up-to-date', or ego-satisfying for 'latest-greatest'.

Where most PC manufacturers want to give you what seems endless customization, Apple is driving a specific road to what they seem is the best and most practical (not to mention most profitable).

iPad (The Refresh)

This one stings. I just helped buy an iPad for my brother, Tim, and now there’s a newer and faster iPad out in less than a year. Oh well, that’s technology. One should not feel entitled to have the latest and greatest for too long. That said, I’m not sold on the iPad refresh, but I understand why they did it.

First, they sync’d their release schedule. So expectations of releases are less erratic, even though this one came out of nowhere. Second, the wires are all uniform. The lightning connector is now implemented on all their iDevices. Love it or hate it, that forces consumer adoption. This also means businesses have to switch their accessories to be compatible with this connector, which again being uniform makes it easier, but still a pain.

Okay, so I’m not sold on the iPad because I saw the iPad mini. The build is very different and I look forward to the next iPad iteration, which will be thinner, lighter, and possibly even 16:9, something that is shared by its iPhone counterpart.

My only concern is… what’s next? There’s only so much you can improve in form and performance.

iPad mini

The price point for this stands out the most: $329. Yes, this is less expensive than the iPad, but significantly more expensive than the competition. So it makes me curious to who this caters to. As it stands, it’s the most expensive small form factor tablet, but it doesn’t exactly blow away competition.

Capbility-wise, the iPad trumps the competition. The iPad mini falls behind the original by two generations in performance and screen. Yes, it is still capable, but it doesn’t enjoy a sizable lead to its competitors that the iPad does. So charging $329 becomes a problem to consumers on a spec sheet comparison.

Still, from a historical point of view, the iPad mini “should” enjoy a successful entry into the smaller sized tablet market. Even with a higher price, there are inherent advantages Apple has over competition, namely the App Store, iTunes media, developer support, and build quality. Does it justify the price? I'm pretty sure Apple can make its claims and others can make theirs, but it is what it is.

Do other tablets justify worthy competition? Yes. They will sell the point of being a better performing tablet, number-wise. But it will lack developer support and historical success. On top of that, build quality has always been an aesthetic advantage for Apple as they pair performance and form better than anyone in the business. At the end, competitors will be selling what may be the “next-best” thing, not the current “best” thing.

But who knows. It’s evident that Apple did not want to enter the small form factor tablet initially, but competitors grew that untapped market. So the decision to make an iPad mini is more reactionary, as opposed to being proactive. Is this a sign of the times of Apple innovation?