Microsoft's Mistake?

I worked in Irish Advertising in an Agency that at one time, was highly regarded. McConnells.


There wasn't a presentation or meeting you went to, without that commercial being played to make a point about brands and marketing (just an aside, did you recognise the voice over? A young Richard Dreyfuss). Looking at numbers last week for Microsoft, it became all the more clearer what it meant. And here's why.


When you grew up in this digital age, like I did, there's no doubt that Microsoft was the star. Gates & Allen stood out as pioneers with a seemingly endless amount of technical products and ideas.


People queued overnight to be first in line for a Windows launch in the Harry Potter way they do today. It was the cool brand.


Microsoft started in 1975 (talk about being way before your time) and it had 1m usd in revenue in that year situated in Albuquerque of all places. It was Allen's idea to call it Microsoft by combining Microcomputer and Software.


That's Paul Allen bottom right and Gates bottom left in a staff pic from 78.

It wasn't until 1985 when it was asked to write an operating system for IBM, that things really started to take off. In working with IBM they also continued their own business and to the amazement of the world, Windows 1.0 was launched that year. 


Over time, by owning the operating system, the launch of Windows 95 gave them their first big entry onto the web through bundling their web browser Internet Explorer free, with the operating system. And so became the "browser wars" and the rest, as they say, is history. Ultimately gaining the accolade of 'The Evil Empire'.


Of course, an extraordinary company built by terrific people.


5 years ago, Microsoft reported profits of 6.5 billion usd.
This year they've just reported profits of 6.4 billion usd in the same quarter.


So they're still making money - but making less - although it's still a stunning amount of money.


At the same time 5 years ago, Apple reported profits of 1 billion usd.
This year, Apple reported 13 billion in profit comparably.


What is clear is that Apple has practically wiped out Microsoft as a consumer technology brand with Microsoft now having to focus on its buiness division to bring in the revenue. It has also been played out of the mobile space, where it once controlled 35% of the market.


Apples iphone business alone is bigger than all of Microsofts businesses, combined.


So ask yourself why?
What has caused this change?

It's simple and obvious but so well forgotten - Apple put the consumer first. By identifying the consumer need they then built the technology to satisfy that need.


Not the other way round.
And then be clear about what you stand for and understand your core values.
This video is inspiring and full of lessons for marketeers.

The commercial at the top of this blog is the one which Jobs just referred to in this video. Think different (1997 Chiat Day).


So the story here is clear. 


You think like a consumer.
You think of consumer needs and you fulfil them. 
You do so in a clear easy-to-understand way and you are 100% clear on your proposition. 


Then the marketing job becomes easy.


It's why Apple has wiped the eye of Microsoft.
It's why the next Gates, Allen, Woz, Jobs will do the same.


Building software, hardware, Apps, Blogs, Social sites and all, will only achieve success, if they're meaningfully providing a solution to a real consumer need (which Pinterest is a clear example of how to do that).


We can all learn from Microsoft and Apple.
They got it first.
Think Different but think Customer. First.