The SEA change: Microsoft "Live" is Microsoft the follower and this time around that strategy won't work...here's why

By Tom Foremski - November 1, 2005

By Tom Foremski for Silicon Valley Watcher.com

Google-Gates.jpgThe announcement of Microsoft Live seems a couple of years late. Of course, Microsoft has done well over the years by following others that pioneered markets and then cleaning up because of its scale. But following a company like Google won't work for Microsoft this time, because by the time MSFT figures things out the market has moved on.

I spoke with one of MSFT's lead engineers recently and he was telling me about the fantastic search technology that they have in the labs. That it is better than GOOG's. But the conversation has moved on: it's about Search-Enabled Applications now, it really is a SEA change (and the apps are AJAX).

Rebranding some MSN stuff and adding layers of subscription based services is not going to get MSFT very far.

MSFT can live off the fat of its enterprise market but that won't last forever. And it cannot compete against GOOG's low operational costs--GOOG is much more New Rules Enterprise than MSFT. And it will be MSFT's legacy culture and thinking that will sink the company.

BTW, GOOG does not see itself as a MSFT competitor. The fact that it added a few programmers to help out OpenOffice is not significant.

The New Rules business mantra is: just focus on making sure you execute in your own business--the competition will take care of itself.

GOOG just needs to make sure it is always a step ahead of MSFT (and anybody else)--MSFT will take care of itself. Its legacy burdens will see to that.imho.

Cnet's story on Microsoft Live launch:
Gates: We're entering "live era" of software

Related:

The Google Zeitgeist and the walking dead...

The new Dotcoms will eat lunch this time around. Some of the rules of the new rules enterprise


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November 1, 2005 | Permalink | Comment | Category: New Rules | Subscribe to SVW

Comments (3)

Ahsan:

Flickr, meebo.com and RememberTheMilk will destroy Microsoft. You heard it here first.

To pick up our debate where it left off a month or so ago, I can understand why you or I (read: tech-savvy folks) will be left in a tizzy with the rise of Ajax and all these cool mash-ups. But C-level executives don't particularly care about new and snazzy if it isn't useful. GOOG is an advertising channel and MSFT is an enterprise play. Who says that the two can't exists side-by-side, particularly if GOOG doesn't see itself as an MSFT competitor for the OS, Office, IE, etc.? Let's remember that Microsoft is far more entrenched in the software world than Google is in the search world.

The enterprise world still moves slower than the Valler, as SalesForce.com's relatively modest sub numbers would indicate. My two cents.


My gut reaction is that Gates committed some sort of suicide here. Is he effectively announcing the fracturing of MSFT apps etc development into the social and the business in some sort of belief the two are completely unrelated?

If I as a consumer find I can easily do more things in a web only environment, then I will quickly demand the same for my business. I won't tolerate a clunky Office-based apps set. This has profound implications for business and the technology it uses.


Tom Foremski:

I agree, the enterprise world moves exceedingly slowly, which means the live "Office" apps won't be used by enterprises, much.
Which leaves the consumer market, which is in the lap of GOOG and GOOG offers free apps, no subscription based services. You need subscription based services if you cannot monetize through the ad model.

Microsoft's advertising server probably is the more interesting aspect of the "Live" event...


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