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The Resurgence Of Microsoft

By Alex Wilhelm on August 14, 2009

It has been such a whirlwind year in the world of technology, that it is easy to watch the individual happenings and miss the trend. I take it that you have not noticed, but Microsoft is ascendant once again. Not just in one area, Microsoft is punching all comers directly in the nose. I doubt that any single issue I am going to raise in this post is going to be new, but I ask you too look at them all as a unit and see if you come to the same conclusion as myself.

Broadly, Microsoft has been assaulting all three of its major rivals: Google, Yahoo, and Apple all at the same time. Sure, they have billions, but the audacity of a all-fronts push makes the risk-taker in myself smile. We’ll have to go through a variety of current and recent Microsoft moves. I could  not cover them all in a single post, so I cherry-picked based upon my favorites.

Move: Bing Attacked: Google, Yahoo, IAC, et al.

With the launch of Bing, and the recent deal with Yahoo Microsoft has put its foot right back into the search ring. No, this is not an evolutionary change meant to stem market share losses, but a frontal assault designed to change the search landscape for the next ten years. Bing is not only a great search engine, but when combined with the extant Yahoo market share Bing (its architecture) is by far the second place search engine. With that volume of searches, and billions to back it up, MSFT just told Google the back the heck up.

Bold words from a company that has been the third place also ran in search for so long, I actually had forgotten that MSN search had ever existed. Google is sitting up and taking notice as well, as referenced with Caffeine and its other updates in the last week.

Moral: Microsoft wants a big part of the search pie. If Bing continues to innovate and improve, we could see Google face its first competition induced declines in search, ever, really.

Move: Windows 7 Attacked: Linux, Apple OSX, Google Chrome OS.

The problem with attacking Windows 7 is that is damn good. Now the Mac fans, and the Linux Fans will surely say that OSX and Linux are superior, and they might be. Windows 7 is a problem for them because it closes the gaps (if you see them) between Windows and the others, or puts Windows back on top as the best OS. Either way, it removes much of the impetus that people had to jump ship. Mircosoft does not have to be the best operating system to maintain its market share, it merely has to ensure that the annoyance of switching negates the benefits of moving over. At a very minimum Windows 7 will do that. I personally think that it will do more, but that is opinion.

Chrome OS is going to be under assault (if it ever launches) by Windows 7, given its prowess at working with netbooks. Win7 runs like a dream on a modern netbook, and that negates much of the supposed benefit of a net based, lightweight OS such as Chrome OS.

Moral: Win7 is a great damn product that will rebuild the Microsoft reputation and put a damper on converts to other camps, limiting its competitors to build market share.

Zune HD

Apple makes bundles of money on the iPod line, from iTunes, and probably even some money on the App store. The last is doubtful as it take a pile of bananas to feed the monkeys behind the random app approval process. But it is still one of the three legs of Apple: iPod + iTunes, Mac, and iPhone. More simply, MSFT is trying to saw off the iPod leg.

The Zune HD, whatever MG Siegler ejaculates (love ya MG) is going to be the best selling Zune yet. I wrote a piece recently covering its upcoming launch, so to avoid repetition I will just link to it. The iPod line now has real competition.

Moral: Apple has three main revenue streams, MSFT wants to end them all. The iPod line is under direct fire.

Office 2010

Google Docs and OpenOffice have been making inroads against Office in the last year, not even mentioning the great work being done by ZoHo. Office 2010 is a continuation on the great work done by Office 2007. If you were thinking about dodging the 2007 upgrade to give Microsoft more time to iron it out, it is time to push the install button. Also, Outlook will be coming to the Mac in 2010. Microsoft is guarding this cash cow carefully. All comers are about to get another large mouthful of Office quickly.

Sharepoint

I covered this recently, and will again share the repetition.

All in all, Microsoft is out on the offensive on all fronts. I decree this year and the next to be the years that Microsoft fully came to terms with its growing, and well heeled competition. MSFT is not taking any of this sitting down, and the court is now in session.

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Comments

  1. IGotsSharesinMSFT

    True, true, but a bit Microsoft triumphalist. They will not win everywhere but as you say, its a big all fronts attack that is impressive in its own right. And you didn’t mention the X-Box :) …possibly the one resurgent they will do best from. It’s likley to be a good time to own MSFT shares whatever happens.

    Wii’s are great (I have one). But the software and cost advantage the X-Box is gaining over the PS3 is becoming more and more noticeable. I think if I was going to buy a traditional gaming box it would be MSFT’s now. (I’m not going to because I have a PC already and favour RTS games anyway).

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