Lessons from Microsoft

By Fran Foo
18 November 2003 02:00 PM
Tags: google, newsbot, european union, microsoft, rival, notebook, ali, online music
COMMENTARY-- Microsoft has dipped its fingers into more pies.

On Monday, it launched beta versions of MSN Newsbot, a news service for select countries in Europe which can be accessed at http://uk.newsbot.msn.com.

Like Google News, Newsbot is an automated news service (read no human editors) which culls the leading headlines using computer algorithms. Unlike its rival, Newsbot's drabby hues are distinctly insipid at the moment.

Although it insisted -- in public -- there were no plans to dabble in digital music, Microsoft changed its tune by branching into music downloads. In a duel with Apple iTunes and RealNetworks' Rhapsody service, Microsoft's online music store will launch next year.

Microsoft's bid to further dominate every inch of the consumer's digital psyche is no secret but this got me thinking about the enterprise arena. The company already makes PC peripherals so will we see Microsoft-branded servers, computers, and notebooks some time down the road?

Imraan Ali, an IDC analyst who tracks the Asia-Pacific hardware market, said it would take a significant investment on behalf of Microsoft to branch into this segment but he didn't rule out the idea entirely.

"Microsoft's core competency is the software that drives personal computers and to start making its own notebooks and desktops may be viable in the short term but in the long run, they may find that they have shot themselves in the foot," Ali said.

And if it does happen, Microsoft goes from being a partner to a competitor. "Many vendors will look at differentiating their notebooks and desktops with rival operating systems as they obviously want to sell the most products, and thus have no reason to show any loyalty to Microsoft," he added.

The software behemoth has demonstrated that partners can become rivals in the blink of an eye. In September, it announced links with Napster to be featured in the Windows XP Media Center Edition 2004 operating system. With its own music foray, where would this leave the online music retailer? Although Napster is not as important a partner as Dell, what does this say about Microsoft's principles?

While Microsoft's consumer overtures may not have a direct impact on enterprise IT users, the inconsistency of its product roadmap(s) provides a good lesson for technology managers planning next year's budget -- expect the unexpected. Curveballs can come in myriad shapes and the flavour of the month seems to discontinuing support services.

Before making a software/hardware selection, IT managers have to look beyond what fits the budget. There's no shortage of choices in the market, and in light of the series of consolidations taking place, it's more critical than ever to know where your vendor and product/platform is headed. Otherwise, you will definitely get your fingers burnt.

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