Microsoft is entering forbidden terrain


Microsofts is entering forbidden terrain 

Microsoft is currently surprising friend and foe by producing their own hardware in the form an expensive laptop. The firm is more flexible than everyone expected.

Windows, Office and Outlook, those are the products that we know Microsoft of. These are all software products, but since Microsoft is now manufacturing its own, super fast laptop, the whole business model changes.

Microsoft is from now on a hardware manufacturer with its own game consoles (XBOX), phones, tablets and smart watches. Two weeks ago, a laptop got introduced into the wide array of products that Microsoft produces.

Nobody could’ve seen it coming since the innovational focus was no longer on Microsoft. Microsoft was considered a big and inert company with no ability to innovate in a disruptive way, and therefore, it could develop the Surface Book without the hassle of prying eyes of competitors. Microsoft was considers inert because the corporate software they are developing is considered dull and in the technological revolution that we currently live in, giant players like Apple and Google dominate the market.

However, the Microsoft Surface is not completely new. It got introduced back in 2012 as a substitute for tablets and laptops, since it amalgamated both products’ characteristic into one, ersome tablet with a keyboard that just didn’t work properly. However, it gained some popularity in the corporate sector because of the mobility of the machine.

RevenueiPadPro

The Microsoft Surface can cumbbe called some sort of niche, but in 2012, it gained a revenue of roughly 2 billion dollars. This is a revenue that has not been completely unnoticed; Apple is now entering this niche with the iPad pro which has a significantly larger screen, a stylus and an optional keyboard, which is integrated in a cover. When Apple is imitating you, it is a good sign.

Microsoft is now extending its Surface-line with a ‘tabtop’ that is able to lie on your lap, just like a laptop does. However, it remains an amalgamation of a keyboard and a tablet, since both are disconnectable.

Competition
The Sufrace Book is entering the market with a very high price. This is an indicator that Microsoft is trying to distinguish itself by delivering high quality products like, for example, Apple. It therefore competes with the MacBook Pro, but also with some cheaper competitors like Lenovo, Acer, Surface-Book-Impressions-2HP and Dell. These companies will not be happy that their biggest softwarepartner is now a competitor in the computer hardware side of business.

The traditional divisions between hardware developers, software developers and online services are now diminishing and Microsoft is now increasing its stakes in premium gadgets. Windows is thereby an aid and not a goal in itself. The operating system is now deployed in order to lure users in towards Microsoft’s (online) services, like OneDrive, Office 365 etcetera.

Strategy
This is from now on the financial substantiation that CEO Satya Nadella is implementing rapidly. However, this did not come without any sacrifice; Microsoft had to layoff over 17000 of its employees in order to habilitate this strategic change.

The overall strategy is to escape the dull image that Microsoft has by showing the world that it is still able to innovate. Therefore, Microsoft’s structure will consist of three pillars from now on: 1) Windows and Hardware (XBOX, Surface, Phones etc.) will be now one entirety under the name: ‘Personal Computing’ 2) ‘Intelligent Cloud’ and 3) ‘Productivity and Business’ (Office and other corporate software).

An overall shift within Microsoft as you can see, but will this be the shift that will enable Microsoft to compete with its biggest rival Apple?

References:

http://www.smh.com.au/it-pro/business-it/microsoft-becomes-friend-and-foe-to-pc-partners-20121017-27q9q.html

Hijink, M. (2015), Microsoft’s Buigzame Karakter, NRC Next

Advertisements

Tags: , , ,

One response to “Microsoft is entering forbidden terrain”

  1. 437320mg says :

    Interesting post you have written. Especially when you write: ‘These companies will not be happy that their biggest software partner is now a competitor in the computer hardware side of business’. I am curious to see how this move will work out for Microsoft and its partners. Microsoft’s partners may see this as a threat to their own organization. Companies like HP or Dell, which have always chosen to make laptops with a Windows operating system, suddenly will get competition from their own supplier. I wonder whether the shift of Microsoft to produce hardware as well will take companies like Dell out of business, make them choose another operating system supplier or whether it will just be another competitor?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: