PC Makers Offering Vista-XP Downgrades

Oh, we try hard, so hard, not to pile on with this Vista stuff. It's just that every time we think it's getting old to talk about what a, uh, "mitigated success" (yes, we're being kind) Vista has been, something else comes out that demonstrates that this operating system is about as popular as New Coke was once upon a time. (By the way, thank you, Internet and Wikipedia, for providing us with more information than we ever thought existed on New Coke. What was life like before the Internet? We don't remember...and we don't care.)

Anyway, it wasn't enough, apparently, for Dell to start selling PCs with XP (rather than Vista) pre-loaded. Now Dell, HP and Lenovo are all offering downgrades to XP for customers who buy machines with Vista pre-installed.

The linked article says that most of the downgrades are primarily for business customers rather than the retail set; the anecdotal evidence we've heard suggests that neither category of customer is happy with Vista, but the critical point here seems to be that Vista has drawn reactions not so much of apathy but almost of disgust and contempt. It's one thing for businesses to ignore a major Windows upgrade; it's another for them to actively dislike it.

Of course, we still maintain that we'll all be running Vista eventually, but with Office under attack from multiple sources, open source getting lots of press and the European Union putting the hammer down on the company, it sure would be nice for Microsoft if it could point to Vista as a bright spot in its current cloudy skies. Alas, that's not really possible.

Any leftover thoughts on Vista? It always seems to be a popular topic. Send your musings my way at [email protected].

Posted by Lee Pender on 09/25/2007 at 1:21 PM4 comments


Ballmer 'Underpaid' in 2007

Steve Ballmer pulled in about $1.3 million in fiscal 2007, a pittance according to Microsoft.

And, really, it doesn't seem like that much money for a guy who heads a company that made more than $50 billion in the same fiscal year. Our favorite part of this story, though, comes from the second linked article (the one from Australian IT):

"Unlike some companies that spend millions on executive perks, Microsoft gave Ballmer a modest $US6750 to his retirement plan and about $US3000 worth of life insurance and athletic club memberships."

Athletic club memberships. Yeah. We're just going to let that one sit out there.

Posted by Lee Pender on 09/25/2007 at 1:21 PM0 comments


Best Buy and Ingram Micro Ink Pact

We just love using "ink" as a verb. Ingram will boldly go wherever the Geek Squad can't get the job done.

Posted by Lee Pender on 09/25/2007 at 1:21 PM1 comments


Microsoft Loses China Chief to the NBA

Does this seem like a fair trade for Yao Ming? Probably not, if you're a Microsoft executive.

Posted by Lee Pender on 09/21/2007 at 1:21 PM0 comments


Symantec CEO Speaks Out on Microsoft

In case you missed it, here's what Symantec CEO John Thompson had to say about Microsoft Forefront in the September issue of RCP:

"When the hype settles down, people have to settle into the pragmatic reality, which is that [Microsoft's] product sucks."

Well, then! If you'd like to read the rest of what Thompson had to say, check out Redmond magazine's Q&A with him.

As for security, reader Kevin writes to say that he's all for Microsoft taking care of its own software:

"I have always thought that the security of Windows should squarely sit on Microsoft's shoulders. All the third-party vendors providing 'security' for Windows by selling software and updates to install on the host machine are more like piranhas than heroes. Here is my thought process on this:

"One, Microsoft owns the design of the operating system. For good or bad, they OWN it. Two, third-party 'security' vendors do not go after the perpetrators directly and they offer no monies in earnest to apprehend them, but instead just sell software to thwart an 'attack.' Three, stupid users being lulled into thinking it is safe to download and run any software found on the Internet.

"For point 1, Microsoft should be held financially accountable for providing the fertile ground for such attacks to the operating system. They should be held accountable for each attack as should the hardware vendors. Yes, I am including the hardware vendors since there is no native protection from buffer overflows that the general population has available to them. If the hardware were to separate the buffer space from the executable space, it would go a long way to keeping such attacks from happening.

"OK, point 2 is totally self-serving on the 'security' vendors' part; if they actually cared about their customers and were successful in shutting down the criminals, their whole reason for being is wiped out. So, they talk up the issues and provide a fence but no strike force to stop it from happening in the first place.

"Point 3, yes, there are a lot of stupid users and mostly in the consumer space. The always-on, bare Internet connections are the most vulnerable to attack. Too many times, I have seen a machine happily infecting others even when the 'security' software was installed. Again, Microsoft has cultivated a population that knows nothing about a computer and what it can do but seems to be able to 'use' it. It would be like telling a teenager a story of how to drive and then giving them a key to an automatic car. Now, if the car were manual transmission, they would more likely know more about how to drive it than an automatic. That same teenager would then go out in the wild and more than likely cause accidents. Basically, the computer is too easy to use for the available built-in controls and security measures. So, users go out and purchase the security software and think they are safe. They never even bother to learn what the security software does or what to do when it detects something.

"Well, I could go on and on but you get the point."

We do, Kevin...and it's an interesting perspective, one that makes us think but that we also can't say we've heard that many times. Thanks for sharing it.

Posted by Lee Pender on 09/21/2007 at 1:21 PM0 comments


Week in Review: Rough Times in Redmond

Oof. It's never easy staying on top -- not even for Microsoft, which has dominated the software industry for so long that it's hard to remember when IBM was the "evil empire" of technology.

It was bad enough that last week, Google and Capgemeni got together to try to rope and tie Microsoft's cash cow, Office. Now, though, Google appears to be going after Outlook, too, and it's not the only competitor trying to carve out a bigger slice of the e-mail pie. Nor is Google the only Microsoft rival to take a fresh run at Office, now that IBM has a free suite of its own.

But, hey, that's competition, and if it leads to innovation (and, in turn, increased investment in new and improved technologies), it'll be a good thing in the long run for partners, users and the industry as a whole. Google's Capgemini link seems to be by far the biggest threat to Office in particular and to Microsoft in general, but the main theme here is that Microsoft is going to need to adapt in order to keep Office dominant -- come up with a true SaaS version of the suite or at least a lighter, (much) cheaper alternative to the current monster. The proverbial ball is in Redmond's posh, well-manicured court. We await Steve Ballmer's -- or perhaps Ray Ozzie's -- forehand.

Then there was the real blow of the week, Microsoft's loss in its appeal of ridiculous antitrust fines imposed by the European Union. It wasn't exactly unexpected, and it's not as though Microsoft can't afford to pay for what the EU and a European court determined to be its anti-competitive sins.

But it does complicate matters for Microsoft, its partners and even its users, given that Microsoft's effort to sell multiple versions of Windows with various products (such as Windows Media Player) cut out of certain versions wasn't enough to placate the EU hunger for eating successful American companies alive. What now? Well, perhaps another appeal from Redmond -- or perhaps a big check sent from Seattle to Brussels and another 15 versions of Windows launched in the EU. We'll see.

All of this bad news, of course, has the press (generally an anti-Microsoft lot, honestly, which doesn't do much for impressions of objectivity) absolutely drooling and gleefully throwing together "this is the death of Microsoft" articles. Of course, Microsoft lives, and it's got more money than ever before. And it won't go away, just as IBM didn't go away after falling off its industry perch in the 1980s. But the question now is whether Microsoft can continue to be the software industry heavyweight or whether it'll slip into being just another big player. Everybody's asking that question, so we know that we're stating the obvious here. But still, it's a question worth asking.

We're not going to make any predictions on that front, except to say that standing pat (which Microsoft doesn't appear to be doing) is the worst thing Redmond can do. What we wonder is whether Microsoft is going in the right directions: With huge investments in search, advertising, video game consoles, portable music players and other non-core efforts, will Redmond be able to circle back around and defend its home turf of Office (still the company's big revenue generator) and Windows and keep the revenues pouring into its channel? Stay tuned.

Have any thoughts on anything that happened this week? Or last? Or might happen next week? Send them to me at [email protected].

Posted by Lee Pender on 09/21/2007 at 1:21 PM1 comments


Everybody's Got Mail

An e-mail platform, that is. Yahoo got deeper into the e-mail game this week with its purchase of Zimbra. And we're still waiting to see what else Google has in the works.

Posted by Lee Pender on 09/20/2007 at 1:21 PM0 comments


Hello, PerformancePoint; Goodbye, ProClarity

As expected, Microsoft has launched Office PerformancePoint Server. It's also killing the ProClarity brand name in the process.

Posted by Lee Pender on 09/20/2007 at 1:21 PM0 comments


Study: Corporate Vista Uptake Slow

We were all prepared with a joke along the lines of, "And in other news, the earth continues to rotate on its axis..." but there's no use piling on. Here's the study.

Posted by Lee Pender on 09/20/2007 at 1:21 PM0 comments


Salesforce.com Ups the Ante

In old-school video games -- and, we gather, in most new ones -- there are levels of play. You get past one, and your reward is a whole 'nother one, as we'd say back in Texas, that's even more difficult to conquer. There's not much time for celebration moving up the ladder of success. Well, that's what business is like these days for Salesforce.com, in case you were wondering just where this was going. (We're not gamers here at RCPU, but your editor did spend a few months working for a company that makes video games.)

Salesforce.com, of course, has been highly successful and a darling of the trade press. As a vendor of hosted customer relationship management applications, Salesforce.com has conquered the first few levels of the software (or "no software," in Salesforce.com's case) industry. Great. Now, things get harder.

They get harder because, as we've known for a while, the big players in the software industry -- namely Microsoft -- are waking up to software as a service and prepping hosted offerings that will compete with Salesforce.com's impressive CRM wares. And we all know what usually happens in this case. The innovator, or the metaphorical rabbit in the market race, either gets consumed (bought) or chewed up and spit out (kicked to the curb, Netscape-style) by bigger competitors.

Salesforce.com's CEO Marc Benioff knows all this and, at this point at least, he doesn't seem to be aiming for the Holy Grail of acquisition and the good life as a wealthy pseudo-exec. No, admirably, he seems to want more -- to keep conquering the levels of the game until Salesforce.com becomes more than just a hit upstart.

At his company's show this week, Benioff positioned Salesforce.com not just as a niche hosted-CRM competitor but as a company offering a whole development platform -- boldly named Force.com -- for hosted applications. As far as we (or anybody else) can tell, nobody has tried the development-platform-for-hosted-apps approach before. And consider Benioff's quote in the BusinessWeek article linked here:

"We're a platform company, not just an applications company. We have a vision for the future of an industry."

Those don't sound like the words of a guy who's ready to sell out or quit on his vision. That's good -- because too many innovators now want nothing but the big payout that acquisition by a mega-company brings. And while we have nothing at all against the normal course of industry consolidation, we do understand that acquisition can (although it doesn't always) stunt or even snuff out innovation within companies doing some really interesting stuff. Just look what Salesforce.com's success has brought forth -- a hosted CRM application from Microsoft that, if they know how to handle it, could be a boon for partners. It often takes a mouse to make the elephant jump, and the quickened pace of innovation that results is good for partners, users and the industry as a whole.

Now, whether Benioff and his charges can conquer the next level of the game -- the one in which Microsoft and SAP enter the picture (the "Bosses" of the level, perhaps) -- is another issue altogether. But we're glad to see that he's still playing, and we'll be looking over his shoulder as Salesforce.com takes on all comers.

What's your take on the impact of SaaS? Are your clients showing interest in hosted applications? Let me know at [email protected].

Posted by Lee Pender on 09/19/2007 at 1:21 PM0 comments


Office Under Attack! Again!

Old hands are gunning for Microsoft Office. Lately, we've heard of Google's productivity-suite tag team with Capgemini targeting Microsoft Office. There's also a newly released Google PowerPoint competitor. Now, IBM has come lumbering back into the suite game with a free offering based on some old Lotus stuff.

We're looking at IBM's underwhelming offering as another also-ran (although you never know), but it does raise the question -- addressed by ZDNet's amazing three-headed blog -- as to whether there's anybody out there who's not trying to dethrone these kind of the suites.

And speaking of Office, the third service pack for Office 2003 is out now.

Posted by Lee Pender on 09/19/2007 at 1:21 PM0 comments


Microsoft, Novell Continue To Cozy Up

Cuddly, cuddly! What a week for former Microsoft rivals to nuzzle up to Redmond. Still-new friend Novell is teaming with Microsoft to open an interoperability lab in Cambridge, Mass. (perhaps America's smartest city), and there are new customers for the infamous Microsoft-Novell Linux deal, too.

Posted by Lee Pender on 09/13/2007 at 1:21 PM0 comments


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