Monthly News International
Perspective - Microsoft
Experton Group believes Microsoft Corp. is a mature software company that is having difficulty repositioning itself for the future. The primary leg of its business model is built upon the PC as a core platform and that client device base is eroding with the advent of smartphones and tablets. The company's business model is also under attack by Linux, open source, search and cloud providers and has been slow to develop solutions that will put it back in a leadership role. Microsoft is hoping its unified communications offerings, Windows 8 release and tie up with Nokia Corp. will help it regain momentum in key markets. Experton Group expects Microsoft to remain one of the dominant forces in the market but foresees it failing to recapture its glorious past. IT executives should understand its roadmaps and strategies as well as those of its competitors, determine what may be applicable to their current and target environments, and work with Microsoft as a strategic partner, where appropriate.
Business Imperatives
- Microsoft's main markets – 70 percent of its revenues – are structured around Windows and its servers and tools. The Windows base itself is struggling to hold ground whereas its newer tools are gaining traction within the enterprise. But the smartphones and tablets may eat away at this core and cause problems for the company over the next two to five years. IT executives should determine how Microsoft's products, roadmaps and strategies will play with their current and target environments and structure deals with the vendor that do not result in purchase or usage over commitments.
- Microsoft has jumped on the cloud bandwagon and is working out its strategy as it goes along. Bing and the Online Services Division lose more than they bring in. Windows Azure and Office 365 are now top priorities and key to overall corporate success. Experton Group questions if Microsoft can transition to the cloud successfully. The verdict is out. IT executives using Microsoft products should include Microsoft cloud solutions when considering cloud alternatives.
- Microsoft's business and entertainment divisions are growing very nicely. While the Xbox is a top entertainment system, many companies and other vendors are finding alternate uses for the Kinect device, as it is proving to be a disruptive technology. However, the business software solutions are targeted to the small and mid-tier businesses, which is the same target market for many of the software as a service (SaaS) offerings. Microsoft will have to deal with this transformative shift as well. IT executives need to determine the pros and cons of each alternative, and determine what architectures best meet their current and future requirements.
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