Windows 8 Arrives, Research in Motion Falters

Microsoft Corp. showed off the flashy, multi-capable Windows 8 operating system at its Build conference this week. Elsewhere, Research in Motion, Ltd. posted disappointing sales and earnings as its performance and strategy continue to lack focus and compelling product.

Focal Points:

• Microsoft showcased the next version of its Windows operating system, Windows 8, at the company’s Build conference this week. Windows 8 is designed to run on numerous device configurations including desktops, notebooks, tablets, and perhaps even smartphones. Featuring two disparate interfaces, known as Metro-style and traditional desktop, Microsoft is aiming to capitalize on its ecosystem strength by making the offering a platform that can be used in whatever form factor(s) users desire. Touch-enabled Metro features high degrees of personalization and live tiles coupled with large graphics, as first seen in the Windows Phone 7 platform. Users can switch back and forth between that and the more traditional desktop user interface (UI), which has full backward compatibility with applications developed for Microsoft's previous desktop operating systems.  Windows 8 is available now via free download in developer version format, which is a pre-beta release aimed at getting developers accustomed to the new interfaces and programming methodologies. The download is not limited to developers, however, and anyone with enough disk space can install 32-bit, 64-bit, or 64-bit with developer tools versions of the software.
• Microsoft is taking cues from Apple Inc.'s iOS platform with its Windows 8 Metro UI by delivering a touch-enabled interface designed for slick, relatively lightweight applications. Also similar to iOS, Windows 8's Metro version of Internet Explorer 10 will lack support for Adobe Systems Inc.'s Flash and all other plugins. (The version of Internet Explorer 10 for the desktop interface will continue to support plugins.) Numerous reasons assumedly exist for this chosen route, including the need to preserve tablet battery life, privacy, security, and reliability. HTML 5 has become a Web standard supported by an increasing number of sites due to Apple's similar stance on Flash, quickly negating the need for Flash for video. The company's integration of desktop/notebook and tablet interface is radically different from Apple's approach, and Microsoft's strategy for Windows update delivery is a looming question. While desktop OSes have a several-year shelf life and include several major updates, tablet OSes tend to be updated annually as evidenced by Apple and Google Inc.
• RIM's financial performance continues its downwards slide as the company missed its guidance for the third consecutive quarter. Revenue estimates of $4.47 billion came in at $4.17 billion while net income fell to $329 million compared with the $797 billion RIM achieved in the same quarter last year. The PlayBook tablet has been extremely slow to sell as the company shipped on about 200,000 compared with the estimated 490,000 units. Only one Playbook is sold for approximately every 46 iPads moved. Smartphone sales were also down, with RIM shipping 10.6 million versus the estimated 11.9 million for the quarter. On the positive side, RIM will issue a software update enabling the Playbook to deliver calendar, contact, and e-mail without the need for a dedicated BlackBerry and a facility to allow the tablet to run Android applications will arrive shortly. Lastly, customers in Canada and Latin America endured a BlackBerry Messenger (BBM) outage on Friday.

Experton Group believes the Windows 8 developer preview offers enterprises a real look into the future of Microsoft's operating system strategy. The company is trying to maintain its relevance in the so-called "post-PC" era by extending its Windows ecosystem to every available screen using a singular interface that is attractive, easy-to-use, and compliant with the latest Web standards. While the new Metro UI is powerful and attractive, its use everywhere and across many device types that will be forced to offer different computing experiences could be confusing and frustrating for consumers. Using the Metro UI on a desktop or notebook should be pleasing – even without the use of a touch interface –however; the limited functionality will cause users to need to go back to desktop mode for the use of regular Windows applications and a fully-functioning Web browser. Tablet implementations will also vary and cause confusion.

ARM-based processors will offer less-costly tablets that are lighter weight and more attractive, but will lack the ability to run desktop applications. Those users requiring a more desktop functionality on a tablet will look to those based on x86 architectures from American Micro Devices, Inc. (AMD) or Intel Corp. , which will likely be more costly and bulky. IT executives should stay the course with Windows 7 migrations and most will avoid Windows 8 on the desktop. Windows 8 tablets may prove powerful and compelling, but IT executives are cautioned to wait until initial bugs, practical uses, and compelling business requirements prove themselves worked out.

Though it seems nothing can slow RIM’s descent, the company does have some good news in the form of improved offerings based on the QNX operating system (like the PlayBook). On the down side, RIM’s stock has lost almost 60 percent of its value since the beginning of the year and the company is having difficulty selling devices to consumers even with aggressive pricing. It is too late for the company to return to its former glory atop the smartphone heap and the company’s hybrid strategy with support for Android applications and legacy, tightly-controlled network infrastructure lack the compelling ecosystem of old. IT executives invested in BlackBerry infrastructure will continue to find the security merits advantageous until competitors can catch up but should expect to migrate away from BlackBerry Enterprise Server (BES) over the next three-to-five years.