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October 15, 2004 4:00 AM PDT

Perspective: Microsoft: The reality behind the image

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Microsoft: The reality behind the image
There's something about the slow-starter strategy that works like an absolute charm for Microsoft. Throughout its history, the company has recovered from mediocre product launches that ultimately morph into smash hits.

By now, Microsoft has it down to an art. Is it method or madness? Probably a little bit of both, but more about that in a moment.

So it is that the newest rendition of Windows Media Center introduced earlier this week received a tentative thumbs-up from the digerati. When you consider the kludgy design of the first release of Media Center, this is no small achievement. It also says something about how this company goes about its job.

Microsoft has carefully cultivated an image of being an outfit that outthinks and outinnovates rivals.
Microsoft has carefully cultivated an image of being an outfit that outthinks and outinnovates rivals. To be sure, the company does employ some of the brightest people in the computer industry. Under the capable direction of Rick Rashid, for example, Microsoft Research only trails IBM when it comes to turning out technology patents.

All that looks great on paper, but does it translate into sterling design and implementation? In truth, the record suggests that the secret behind Microsoft's success owes more to applied perspiration (not to mention an occasional sotto voce whisper of encouragement, Tony Soprano style) than to divine inspiration.

Consider how long it took Microsoft to labor away at building a graphical operating system. When it debuted, Windows 1.0 was arguably no better than the contemporary GEM graphical user interface from Digital Research. Critics rightly dunned it for being a pale imitation of the work generated by Xerox PARC. Windows 2.0, which came out a couple of years later, was equally mediocre. Only with the 1990 arrival of Windows 3.0 did Microsoft figure out the memory management improvements that let users exploit the capabilities of the 286 and 386 microprocessors. (Even then, many folks say Windows wasn't worth spit until version 3.1.)

Windows NT followed a similar script. The product was a memory hog--and this back in 1993, when memory cost a bundle. It took Microsoft another three long years to pretty NT up with a Windows 95-like interface and the sort of beefed-up administration controls that made it popular with the IT community.

And it took Microsoft three long tries to catch up to Netscape in the Web browser business. That's not to mention the bully tactics along the way that ultimately got the company's higher ups into hot water with the Justice Department.

But Microsoft will have to unseat Apple before it can hope to dominate the digital lifestyle.
Years ago, I inadvertently incurred the wrath of Paul Maritz, who then was a big-shot Microsoft muckety-muck. In a column, I suggested that Microsoft did a great job listening to customers and fixing what was missing, not because the company developed "wow" technologies. That argument got under Maritz's skin, and he let me know about it.

But was I that off base?

Maritz's ego was bruised, but I was paying a compliment. Microsoft had perfected a system to incorporate customer feedback and improve upon existing products. That goes a long way toward explaining how Microsoft came to be No. 1 in its field. But that's a lot different than spinning tales of a techno hothouse in the Pacific Northwest that consistently churns out excellent tools.

Xbox was a huge hit for Microsoft from the day it hit the shelves. On the other end of the spectrum, Microsoft Bob was dumber than a sack of hammers and deserved every bit of ridicule hurled its way. I wouldn't get carried away in either case, since Microsoft's performance is usually somewhere between the extremes.

While Media Center remains a work in progress, the company has been working out the kinks. So far, Microsoft has unit sales in excess of a million. The company also claims to have about 100 industry partners around the world, more than double last year's count. But Microsoft will have to unseat Apple Computer before it can hope to dominate the digital lifestyle. And that's an obstacle that I think is just too steep to hurdle. More about that in a future column.

Biography
Charles Cooper is CNET News.com's executive editor of commentary.

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Apple Computer, Media Center PC, Microsoft Windows NT, Microsoft Corp., image

Add a Comment (Log in or register) 21 comments
Being a Monopoloy Doesn't Hurt Either
by pkscout October 15, 2004 4:57 AM PDT
What really helps them is they can afford to ship crappy products to customers because they are a monopoloy (despite the slap on the wrist in terms of punishment, they are a convicted illegal monopoloy). Since there are no real choices for folks using intel hardware, MS can use it's customers as beta testers and take 3 - 5 years to ship anything worth using. Nobody with actual competition could take that long to get new product to market and survive.
Reply to this comment
MS can use it's customers as beta testers
by Ipod Apple May 16, 2007 2:24 PM PDT
http://www.analogstereo.com/mazda_tribute_owners_manual.htm
True, but...
by charlie cooper October 15, 2004 5:18 AM PDT
Being a monopoly obvious doesn't hurt but that only explains part of the story. In the mid-80s, MS was only one of several big software comapnies vying for No. 1. Lotus, Ashton-Tate, Borland and WordPerfect all at one time were hotter -Lotus especially.
Reply to this comment
Ah, yes, but...
by ordaj October 15, 2004 8:10 AM PDT
Microsoft also perfected the vaporware approach. Whatever your commpetition introduces or plans to introduce, and which catches the industry's fancy and has buzz, then Microsoft hass something better and it's *almost* ready, so don't commit yourslef to anything.

In this regard, no one has learned anything.
Chicken and egg...soft of
by sunergeos October 15, 2004 9:30 AM PDT
You named companies that produced applications, but they did not produce an OS like Microsoft. Let's not forget that OEMs had to pay the "OS tax" whether they shipped a PC with Windows or not. That is what gave MS its early dominance.

After the OS dominated the PC it was simply a matter of tweaking the OS internals to make the competition appear to be less effective. Remember those court cases? It didn't mattter who won in the courts by then. The damage was already done. I know of IT managers making decisions to only buy MS products because they believe that MS will cripple competing products, so why go through the hassle. Just buy MS products and somehow make it work.

I've been involved in several JAD projects with MS and I never had the impression that they listened to customers. It's their way and that's final. If not, you may find your product not on the golden master OS distribution CDs because your software didn't pass the MS logo program - even though you had been working with MS software engineers for months on the project. Funny how that works.
Being an monopolist helps...
by October 15, 2004 11:08 AM PDT
Well, having an monopoly helps in that it gives Microsoft time to work out the bugs in these products, something that newcomers and those without a big vault of money have at their disposal.

Microsoft has the luxury of hitting singles, the other folks have to hit home runs. This goes for the folks at WordPerfect, Lotus, etc. Each of those companies only had one product to claim to fame, and even then those superstars didn't give them enough padding to be able to expand successfully from the one-hit wonders. And when Microsoft hit right at their strength, they could not win.
Those were applications not OSes
by technewsjunkie October 18, 2004 6:29 PM PDT
n/t
Re: Monopoly advantage
by October 19, 2004 12:00 PM PDT
While 'tis true that Microsoft did not have a monopoly in many of the market segments while still shipping mediocre products, the fact is that they astutely leveraged market domination (or monopoly) in one segment to dominate another,
both up and across the software stack.
Media Center PCs don't decode digital cable or satellite
by ces1965 October 15, 2004 10:53 AM PDT
This is the biggest problem. You have to keep the sat or cable box, which then decompresses the signal, sends it over to the Media Center PC and then in recompresses the signal for recording. The Media Center PC controls the cable or sat box with a stupid IR dongle. And if you want to record two shows at once, or watch one show and record another, you have to have two (2) cable or sat boxes (increasing cost and complexity even more).

A DirecTV with built-in TIVO is WAY better and costs WAY less. They can even now record HDTV (Media center PC can only record over the air HDTV, which means NBC, ABC, CBS).

The cable and sat companies, so far, have refused to work with Microsoft and why should they? Why should they hand Microsoft the keys to a perpetual monopoly in the living room? They saw how IBM handed Microsoft a monopoly in the office. They don't appear to be that dumb.
Reply to this comment
That's not an insurmountable problem, nor is it an OS problem
by kribor October 15, 2004 1:46 PM PDT
The ability to decode satTV or CATV has nothing to do with the OS (My GOD! I'm actually defending Microsoft, quick someone get some soap so I can wash this taste out!!). If a media PC comes with a graphics card that has an onboard TV tuner, or the PC has a separate TV tuner card, then you can hook your set top box to the PC. No too big a deal, unless you are trying to minimize the number of appliances in the living room. There are much more significant issues on the applications side. If anyone thinks someone is going to fire up Word from the Barcalounger, they should be checked for cerebrus abscentus syndrome. Some core functions may translate over to living room PCs, but the user interfaces & associated paradigms will have to change pretty drastically...
View all 2 replies
Microsoft - Paul Mauritz
by hdimalanta October 15, 2004 2:34 PM PDT
Paul Mauritz does not understand Sales/Marketing 101. As Japan listened to its customers needs and wants, they provided solutions. While, USA gurus Pushed Technology into its customers before the listened...

You were right on track. Microsoft now, is slow at the beginning because they are now listening to the Initial offerings and then respond to the customers needs and requirements.

The only way that Microsoft is to gain ground or surpass Apple is to the old addage - If you can't beat them, Buy them... However, that would entail a Monopoly and the people would have Microsoft's hid on a silver platter.
Reply to this comment
customers needs and requirements
by Ipod Apple May 16, 2007 3:01 PM PDT
http://www.analogstereo.com/mercury_mountaineer_owners_manual.htm
Strategy & Insight, October 15, 2004 - by Charles Cooper
by fredschernig October 15, 2004 2:50 PM PDT
Greetings, Charles!
You mention a number of ways in which Mircrosoft arrived at its current postion of prominence.

You missed one KEY one! I believe a very big factor was the strongest, most generous technical support for IT-departments / Service Groups that are using / servicing Microsoft products!!!

IT-Managers and -Technicians learned very early, that contrary to many other software suppliers, Mircorsoft would never leave them "flopping in the wind" if they ever got into problems with MS products --- regardless who was at fault on the problem. This built up a loyalty that you cannot "buy" by any other action, not low prices, not additional software-features!!! MS was providing unshakeable "JOB SECURITY" for every "professional" selecting, buying, installing, servicing MS products! What else do IT-professionals require to make confident selections of MS-products / MS-related careers --- even if the MS-software is a cycle or two "behind"?!? How else do you make IT-departments and Technicians look knowledgeable and skillfull in the eyes of Corporate management and professionals and customers?!?!
MS is doing this very well, just as IBM had done this very well in the past with "Big Irons"!
FRED
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Microsoft Listens to Customers....NOT!!!
by landlines October 18, 2004 11:08 PM PDT
Our experience with Microsoft is that they are really annoyed when a customer calls for help or with a suggestion: they can't wait to get you off their phone.

Their "marketing" consists of clogging up all the distribution channels with arrangements which freeze competition out.

Innovation??? Microsoft has both feet on the brakes. They view any new idea as a threat which must be eliminated, and they've demonstrated a willingness to bury, buy and close down, or steal and pigeonhole key employees of any true innovator.
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Appalling article Charles!
by wickedbob October 19, 2004 1:46 AM PDT
Come on Charles... this piece of trashy writing really reflects a lull in your otherwise adequate journalistic career.
Please, for the sake of all of us, get back to writing something that is solid and has substance.
Reply to this comment
adequate journalistic career
by Ipod Apple May 16, 2007 3:01 PM PDT
http://www.analogstereo.com/mercury_monterey_owners_manual.htm
Microsoft: innovator or thief?
by January 9, 2005 6:07 PM PST
While I agree with Mr. Coopers conclusion that Microsoft faces
an insurmountable hurdle to unseat Apple Computer before it
can hope to dominate the digital lifestyle. I would like to
provide another perspective about Microsoft's path to its current
state.

Having been a Globalview user on the Xerox PARC Star System
since 1980, as well as a Unix, Windows 3.1, NT, XP at work and
Apple OS 7,8,9 and X user at home, I can assure you that the
words Microsoft and innovation are for the most part mutually
exclusive terms. Let us go back to where "Windows" came from
- theft of the GUI implementation pioneered by Xerox PARC and
Apple! While Microsoft has dominated the market since then
with their shady business practices, the current Windows XP Pro
OS still lags the now defunct Globalview environment in terms of
user friendliness. Unfortunately, Globalview was ahead, too far
ahead, of its' time and a side business that was not aligned with
Xerox mainline business. Apple on the other hand learned from
Globalview and built upon those principles and the result is a
beautiful, intuitive and user friendly OS that is also more secure
right out of the box.

When it comes to innovation in Microsoft products, one only
needs to look to the competition. Apple's introductions this
year are Microsofts "innovations" next year. Case in point - the
Microsoft "Digital Lifestyle" - clearly a response to Apples iLife
suite with the exception of a couple of features - the ability to
freeze Powerpoint and crash the OS as Bill Gates demonstrated
in his keynote speech at the 1/6/05 International
Consumer Electronics Show. While I am sure that Apple was
watching, I am confident that Apple will pass on implementing
these "features".

With this recent bug riddled demonstration and the recent YEARS
of viruses, worms, and security holes in the Microsoft products,
and no solution in sight until Longhorn in 2007, we users have
to ask ourselves; what are the army of people at Microsoft
doing? How is it that much smaller companies like Apple, Sun
and the open source Linux group can seem to implement
products that work as one would expect and securely too. Are
the problems in Windows so fundamental or huge that it could
possibly take the army of developers at Microsoft 3-4 years to
patch holes? Well, we consumers do have an option. We can go
with products that do not require hours of maintenance weekly
to keep them running smoothly. We can and are switching in
droves to OS's that are more stable, interoperable and secure;
Mac OS and Linux. Take a look and see for yourself.

Apple OS X: http://www.apple.com/switch/
Linux OS: http://www.linux.org/
Reply to this comment
more secure right out of the box
by Ipod Apple May 16, 2007 3:04 PM PDT
http://www.analogstereo.com/nakamichi/nakamichi_rx505_service_manual.htm
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