Microsoft was probably glad to see 2010 in the rearview mirror. Apple and Google grabbed most of the headlines, and almost everything Microsoft attempted sort of died on the vine. Its announced attempt at introducing an electronic tablet to compete with Apple’s iPad never appeared. Its KIN social networking phones died a quick death as well.
Meanwhile, Apple iPad and Google’s entry into “cloud” technology with the Chrome OS stole a lot of the headlines and most of the sales last year.
In fact, the only thing that seemed to work for Microsoft in the last 12 months or so is Windows 7, which was actually released in 2009.
Its success must be giving Microsoft some relief; Windows 7 has generated nearly $13 billion in sales so far. However, industry experts say it isn’t going to last. What’s more, one commentator has gone so far as to suggest that maybe Microsoft should think about simply dropping the price on Windows 7, or even start offering it for free.
Sounds crazy, right? Well, hang on a minute. Currently, Microsoft retails Windows 7 for about $300. Preinstalled versions are sold to computer companies for up to $100 per unit.
It’s good money if you can make it, but indications are that Microsoft may not be making that kind of money for long.
Google recently began offering its Chrome operating system free to OEMs. With more people jumping to Smartphones for their business procedures, having computers that can connect with phones is a big must-have. Installing the free Chrome OS means computer manufacturers can charge less for Chrome-based computers than they can for Windows-based computers.
Google is doing this because it understands that the money isn’t in operating systems anymore. Instead, it’s in the services that the operating system offers while serving as a gateway. These include search services, geo-location, advertising and social media.
So it stand to reason that within these new parameters, Microsoft will not be able to get away much longer with offering Windows for $300 and up. If the company wants to stay competitive, it needs to play with the same rules as the competition. It needs to offer reasonable alternatives to the products offered by everyone else.
That, however has never been one of Microsoft’s strong suits. But it’s a struggle that Microsoft must overcome if it doesn’t want to be seen as an also-ran in the near future.
Growing up in DR Congo we used to have a rose apple tree in our yard
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