Microsoft under constant pressure. New commercial here, focuses on nostalgia, the Microsoft of old. Will marketing like this work?

Microsoft are under pressure. Basically they found themselves the leaders, in the wrong market - PC's - and having a dominant position didn't help as PC sales tumbled. So they've tried to re-invent themselves without a product innovator (a Gates or a Jobs) at the helm and rather have the most peculiar salesman, Crazy Steve Ballmer, instead.

Search him on this blog and you'll see the videos and you'll see what I mean. Enough said.

Their foray into Windows 8 recently doesn't seem exactly to have set the world on fire and their 'Surface Tablet' has contributed to strong revenue in the last quarter to December no doubt. But what of the future and where they're going?

They plead for their relevance today by promoting their past. In other words, use nostalgia.

"We're the brand that's always been here", "We're the brand of establishment, of trust", Remember us? That kinda' thing and in that way, hope to jolt happy memories from former Microsoft users (which we all were) into thinking, you know what...they were there at the start for me. Aaaahh. 

But it will work too. The commercial is nice and clean with viral potential as we all do a "do ya remember that!" and pass it onto our friends.

It's very brand rather than substance and targets children of the 90's. The endline, "you grew up...so did we" is a direct plea.

The final copyline "Reconnect with the new Internet Explorer" establishes trust around a thing we all knew - IE.

What it will do is to help 'trial' and get people to take another fond look at Microsoft but that has to be followed by substance - by relevant, useful product. And that's the problem. 

Advertising can get people to try a product again, but only once. The worry is, that it's exactly because Microsoft has nothing to say, that they chose this route. When you've nothing say, talk about past glories.

And they'll be found out.

Microsoft's Windows 8. Not delivering? Key moment in the life of a one-time giant.

The critical launch of Windows 8 for Microsoft didn't deliver the key bounce it expected, or so it would seem. Reports on Mashable indicate sales are actually down - 21% against 2011 numbers, since the October launch. Whilst it doesn't include sales of their new Surface Tablet and of course, holiday sales are ahead of them, it's still not a good sign. Especially since it's more than three years since the launch of Windows 7.

The advent of Windows 8 was expected to lift the market and Microsoft are really needing that bounce. Although during the week, Microsoft have blogged that they sold 40 million Windows 8 licences, this raised eyebrows on the retail reality ground and without detail of those sales, it's not clear what it means. Some of these will have been sold to hardware partners initially rather than sold on to users; some of them sold into Microsoft's own stores; some have been sold at a low price initially, so what will happen when the price goes up; and so on.

Microsoft CEO Steve Ballmer (pictured) has said that their new Surface tablet sales have been "modest".

The PC market is of course, pretty dire at the moment anyway and one only has to look at HP awful numbers to see that, never mind Dell's continuing struggle too. The real growth here is in other multi devices (which Windows 8 does straddle to a point) and notably in business, a key Microsoft territory, where Executives now operate 2+ devices.

The PC issue explains why Microsoft isn't the power it once was. It had/has a monopoly practically, but in the wrong things.

Fundamentally too, having rumoured to have spent 1.5 billion usd on the Windows 8 launch, it hasn't had cut-through. Most of us are simply not aware of it unlike Microsoft launches of the past. So Marketing hasn't delivered I think.

The next few weeks will give a clearer picture but the retail buzz is not good and in that I'd trust. It is a critical juncture for the company, so we'll see.

In a lot of ways, make or break.

Microsoft Windows 8 President departs with "immediate effect". 10 bilion usd wiped off Microsoft's market cap. Another fine mess.

 

 
Microsoft is in the news again.

Following the "launch" of Windows 8, President of 'Windows', Steven Sinofsky resigned on Monday. He was the man who launched Windows 8.

The resignation came all of a sudden and his emailed letter said that he was leaving to "seek new opportunities" and no mention of love and support from Steve Balmer CEO. Clearly too, he didn't think that Windows 8 was one "new opportunity".

His email is at the end of this blog courtesy of Mashable. Although he goes on to explain that his resignation is nothing to do with anything at Microsoft, it's bizarre timing after 23 years with the company, having just launched their "make or break" Surface Tablet and Windows 8. In particular, it's with "immediate effect" and I'm in the business long enough to know that he knew the damage that would do to his beloved Microsoft. No one leaves like that and remains friends.

So there's more to this than meets the eye.

And the markets have given their view, wiping 10 billion usd off Microsoft's market cap. It's fair to say too, that one man's resignation shouldn't cost 10 billion and it wouldn't, unless the market view it as a deeper issue. Which in my view, clearly they do.

If everyone was still friends and part of the team, this departure would have been handled differently. Steven would have flagged his leaving some months back, a party would have been held to allow himself and CEO Balmer shake hands, staff would have been told in person rather than by mail and nothing would be with "immediate effect".

I have to say too, from a marketing perspective, the launch of Windows 8 passed without notice. Reportedly spending over 1.5 billion usd on the launch, it barely made or makes, the news. Are you familiar with the excitement of it all? thought so.

Microsoft will continue to be in trouble and the once glorious monopoly, is dying a thousand cuts. Somebody needs to do something.

 

With the general availability of Windows 8/RT and Surface, I have decided it is time for me to take a step back from my responsibilities at Microsoft. I’ve always advocated using the break between product cycles as an opportunity to reflect and to look ahead, and that applies to me too.After more than 23 years working on a wide range of Microsoft products, I have decided to leave the company to seek new opportunities that build on these experiences. My passion for building products is as strong as ever and I look forward focusing my energy and creativity along similar lines.The Windows team, in partnerships across all of Microsoft and our industry, just completed products and services introducing a new era of Windows computing. It is an incredible experience to be part of a generational change in a unique product like Windows, one accomplished with an undeniable elegance. Building on Windows, Surface excels in design and utility for a new era of PCs. With the Store, Internet Explorer, Outlook.com, SkyDrive and more, each of which lead the way, this experience is connected to amazing cloud services.It is inspiring to think of these efforts making their way into the hands of Microsoft’s next billion customers. We can reflect on this project as a remarkable achievement for each of us and for the team. Our work is not done, such is the world of technology, and so much more is in store for customers.
It is impossible to count the blessings I have received over my years at Microsoft. I am humbled by the professionalism and generosity of everyone I have had the good fortune to work with at this awesome company. I am beyond grateful.
I have always promised myself when the right time came for me to change course, I would be brief, unlike one of my infamous short blog posts, and strive to be less memorable than the products and teams with which I have been proudly and humbly associated. The brevity of this announcement is simply a feature.Some might notice a bit of chatter speculating about this decision or timing. I can assure you that none could be true as this was a personal and private choice that in no way reflects any speculation or theories one might read—about me, opportunity, the company or its leadership.As I’ve always believed in making space for new leaders as quickly as possible, this announcement is effective immediately and I will assist however needed with the transition.
I am super excited for what the future holds for the team and Microsoft.
With my deepest appreciation,

Microsoft launch Windows 8 and SurfaceTablet this week. This is make or break time for the once glorious empire.

 
There's very little excitement ahead of Microsoft's launch Thursday of Windows 8 (that's the start screen above, courtesy of Mashable) and their first venture into hardware - The Surface Tablet.

And there was a time when the world would have started queueing by now. 

It's the biggest, most crucial, launch in Microsoft's history of both its controversial Surface Tablet and Windows 8, its new software optimised for touchscreen. Skype (owned by Microsoft) wil be deeply embedded into Windows 8 by the way.

Of course it needed to be done in that Microsoft had to update their software away from the old PC's into tablets, smartphones and new devices. Windows still is the preferred Operating System on over 95% of PC's....the problem is, PC's are not the preferred devices any more. Microsoft have a monopoly....but on the wrong thing.

Microsoft revenue fell 22% in the last quarter, as PC sales took a dive.

It's rumoured that the global cost of launches is 1.5 billion usd with Steve Ballmer CEO, saying that it's going to be "bigger than Windows 95". Well not yet it ain't. 

With Windows 95, The Rolling Stones told us to 'start me up' with this it's more like, "cry me a river". If Ballmer is betting the farm on this, then already it's looking over.

According to Salesforce CEO, Marc Benioff, he believes the operating system upgrade is “irrelevant.” While previous Windows releases inspired corporate PC upgrade cycles, “you’re not going to hear about the Windows 8 upgrade cycle. I think it’s the end of Windows"

The end of Windows?

Largely this launch, is to bring the operating system into the touchscreen space - although one wonders how many businesses for example, will be prepared to replace their monitors for the benefit of touchscreen? 

Networkworld called it a "non-event for business" and went on to pretty much slate the software. According to Networkworld - Windows 8 is going to get hammered in the next few weeks as consumers try out the new operating system for the first time. Their reactions will likely differ little from those of reviewers who found much to complain about. The bottom line is that Windows 8 – particularly on a tablet – does not behave much like any previous Windows PC operating system.

The launch is a pivotal moment for Microsoft but here's what Computerworld said; The Windows 8 launch will be a rocky one, leading to an "ugly" 2013 for Microsoft, warns a report from Forrester. And Microsoft's overall share of the PC-and-devices market, currently at 30%, will remain static at least until 2016, the report adds.

Curry's and PC World retailers, have said they'll open their doors in London at midnight this Friday October 26 for the launch in an attempt to generate "Applesque" interest.

And on the Focus website; Most businesses will most likely wait a while before adopting Microsoft Corp.'s new Windows operating system, scheduled for launch this month, the founder of Taiwanese computer maker Acer Inc. said Tuesday."For such a big event, it will be examined and discussed by people. It will not happen in just one month or one quarter," Stan Shih said when asked about the business sector's adoption of Windows 8, at the opening of a consumer centre in Taipei.

Here's what Channel Register are saying; There’s much to be excited about. Yet, not many in the channel are excited. In fact, the Microsoft ecosystem – component makers, PC manufacturers, distributors and resellers – is bracing for a lull rather than a surge in Windows-related sales.  

A lull? 

I think what you're seeing now is the death crunch. This is make or break time for Microsoft, once the greatest company in the world. Either Windows 8 and The Surface will take off or it won't. 

One or the other.

But this time, if it fails, it fails forever.

And that could be the end of Windows.

The end of Microsoft.

You're watching a bit of history.

Microsoft launches Office 2013 and announces it's first EVER loss. 492 million us dollar loss. CEO Steve Ballmer hangs on.

Microsoft really warrants a blog of its own, given that it's in the news so often now. And none of it good.


On Friday it has reported its first loss, ever. 
492 million usd of a loss versus a 5.87 billion profit a year ago.


Hot on the heels of the controversial acquisition of Yammer in June by Steve Ballmer which left everyone scratching their heads. 1.2 billion? You're kidding? http://streamabout.blogspot.ie/2012/06/microsoft-acquires-yammer-for-12.html


Then the controversy about Steve Ballmer work practices in a Vanity Fair article which caused rumours before it was published http://streamabout.blogspot.ie/2012/07/vanity-fair-august-article-to-add-to.html


And worse problems once it was http://streamabout.blogspot.ie/2012/07/vanity-fairs-expose-of-microsoft-and.html


And the NBC divorce last week http://streamabout.blogspot.ie/2012/07/microsoft-and-nbc-divorce-from-msnbc-it.html


All of this in less than 4 weeks and yet, CEO Steve Ballmer hangs on in there. Now comes the loss. 


Critically it's a watershed, because it's the first ever - but in reality, it's a loss because of an adjustment on the ridiculous 2007, 6.2 billion usd investment in an online business, aquantive, or so Microsoft would argue. However, if you make an awful investment of 6.2 billion usd, you have to adjust for it. In making the acquisition you took the risk that it would put profits at risk.


So there's no escaping it and the headlines will be Microsofts first loss.


Windows sales too in those figures, on further analysis, weakened with a 13% drop in Q4 ending in June although an accountancy policy change has also made the drop look worse. Even allowing for that adjustment, its sales are down.


Hopes more and more being pinned on the October release of Windows 8. Although everyone is forecasting a decline and a weakening in computer sales despite the fact that insiders are saying, it's a good version. With no one to buy, it won't matter in some ways.


This week Steve Ballmer also launched the latest version of Office (called 'Office 2013' surprisingly) which runs on around 90% of business pcs with a new focus on touchscreen and social interaction contributing more than half of microsoft's profits (or losses). So it's important and it was well received. 


The range of applications - Outlook, Excel, Word, PPT and one Note have been updated and integrated through the Skydrive (Microsofts cloud service) for instant updating. Skype is fully integrated too.


Definitely, the widely held view that this was a good launch and a step up. Weakening computer sales though, is outside of Microsoft's control and the deluge of bad publicity is gaining momentum. 


In particular, a loss, is a turning point for this money making machine. It's hard to think of anything else that could put more pressure on CEO Steve Ballmer. 


I'm actually amazed he's still standing this weekend and clearly, has a lot of friends from within, notably Gates who appointed him in the first place and at the time, surprisingly.


Microsoft is now a company in decline and as Steve Jobs said, it will remain so with Ballmer at the helm. It was the great Internet company, the great software company, the great browser supplier and great at a lot of things.


Apple's iphone does more business than the whole of Microsoft now.
It ain't what it was, anymore.


Hard to imagine that investors aren't beginning to think, it's time to get out.
Very few will be piling in.