Didn't Exist in 2000

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• YouTube was gobbled up by Google
• Skype now a part of Microsoft
• Facebook one of the gang of four FANG stocks
• No one seems to want to buy Twitter

Microsoft & Dell?

Microsoft buying a chunk of Dell would be smart (for Microsoft)
Excerpt:

The move would make strategic sense for Microsoft. The software giant invested heavily in Windows 8, but PC and tablet sales are lackluster so far -- particularly in the low end of the laptop market, which goes head-to-head with the blockbuster iPad.

With Dell directly under its influence, Microsoft could pressure the PC maker to produce Windows 8 devices that more closely align with its vision.

"I think Microsoft has identified this is an issue and is trying to have more say in its destiny," said Al Hilwa, an analyst at IDC. "It's clear that Microsoft wants to be more aggressive in controlling and directing the hardware ecosystem for PCs."

Microsoft's strategy is evident in the Surface, the first PC of its own design. But having a say in Dell's affairs could also give Microsoft the ability to head off its rivals.

Microsoft May Back Dell Buyout

The effort to take Dell private has gained a prominent, if unusual, backer: Microsoft. The software giant is in talks to help finance a takeover bid for Dell that would exceed $20 billion, a person briefed on the matter said on Tuesday.

Microsoft is expected to contribute up to several billion dollars. An investment by Microsoft — if it comes to pass — could be enough to push a leveraged buyout of the struggling computer maker over the goal line. Silver Lake, the private equity firm spearheading the takeover talks, has been seeking a deep-pocketed investor to join the effort. And Microsoft, which has not yet made a commitment, has more than $66 billion in cash on hand.

... So why not just buy all of Dell, as Google did with Motorola? That's too big a risk, analysts say. "Microsoft shouldn't be perceived as favoring one hardware maker over another," said Ronald Gruia, principal consultant at Frost & Sullivan. "That's the last thing Microsoft needs." Taking a stake could be enough to help mold Microsoft's vision for Windows. For Dell, though, having to serve Microsoft as its overlord might not play out so well.

Comment: Not convinced this is a good move for Microsoft

The Future is Apple

Windows Users Jumping Ship to Apple: Survey

Excerpt:

Anti-virus company Avast conducted a survey of Windows-based PC users the day before Windows 8 was released. The results were devastating for Microsoft (MSFT) and non-Apple PC makers. They were excellent, meanwhile, for Apple (AAPL). ...

• The survey covered 135,000 Windows users split across three versions of the operating system: Windows 7, Windows Vista, and Windows XP.
• Only a very small percentage of users--9%--said they were going to accelerate a purchase of a new computer because of Windows 8.
• Overall, 16% of those surveyed said they planned to buy a new computer 
• Of these folks, a staggering 42% said they plan to buy an Apple product--either a Mac or an iPad.
• Most of the Apple buyers (30% of the total buyers) planned to buy an iPad, suggesting that some of these planned purchases are motivated by the desire to buy a tablet. (Maybe Microsoft can save some of these with strong sales of the Surface.)
• The rest of the switchers, 12%, planned to buy a Mac.

Comment: My company will be skipping Windows 8. Image source.

"A billion transistors per human"

IBM Tops Microsoft in Value for First Time Since 1996

Excerpt:

“Computing is now found in things that no one thinks of as ‘computers’,” said Palmisano at a trade show keynote in February. “Today, there are nearly a billion transistors per human, and each one costs one ten-millionth of a cent. Yes, some of these transistors are going into servers, PCs, smart phones, MP3 players and tablets. But an increasing number of them are going into appliances and automobiles, power grids, roadways, railways and waterways.”

Comment: The headline wasn't of that much interest to me but the quote above

"Gmail Man" - Microsoft Slams Google in Parody Video

Microsoft Slams Google in Parody Video

Excerpt:

"Gmail Man" follows a personified Google bot poking through private emails to find semi-relevant keywords for banner ads. As email users are horrified by his actions, he shrugs them off with a hearty laugh and complete indifference.

Comment: I'm not bothered by Gmail ads ... don't think I've every clicked on one!

Micro "Soft-in-the-Middle"

What Microsoft Needs? Years of Big, Money-Losing Bets, Consultant Says

Excerpt:

Microsoft, he says is basically the beneficiary of a once-a-century, one-time windfall for "having figured out a market 30 years ago." Kay adds that their future, a slow decline of their main franchise, is actually quite visible. Ouch. Clearly not the kind of talk that inspires men to great things, but nonetheless, a seemingly fair take on a behemoth that has been trading consistently within a few bucks of $25 a share since the collapse of the tech bubble in 2001.

Comment: X-Box and Kinect strong. Online business losing big. Next Windows (Windows 8) will run on ARM. I've heard many good things about Windows 7 (fast bootup time).

Why I like Microsoft (as an investment)

Companies Cling to Cash

Excerpt:

Much of the cash accumulating in corporate coffers belongs to technology companies, which typically don't need to tie up nearly as much money in plants, real estate, equipment and inventory as do manufacturers and retailers.

Tech companies in the Standard & Poor's 500-stock index now hold some $352 billion in cash and short-term investments, according to Standard & Poor's index analyst Howard Silverblatt.

Among the top holders are Microsoft Corp., with $43.25 billion in cash and short-term investments; Cisco Systems Inc. with $38.9 billion; and Google Inc. with $33.4 billion.

Comment: MSFT. I view Microsoft as like a utility company. Corporate american (and probably the world) will keep buying Office, Windows 7, etc. Frankly Microsoft has failed to make much of a dent in the music player segment (Zune), and their phones have been largely a bust (but Windows 7 phone may do well). XBox 360 is widely popular. The PE ratio is low and it pays dividends. I like this stock. One can have 100 shares for a mere $ 2700 and it will return better than a CD.

Microsoft's Kin debacle

Microsoft Calling. Anyone There?

Excerpt:

Microsoft’s engineers and executives spent two years creating a new line of smartphones with playful names that sounded like creatures straight out of “The Cat in the Hat” — Kin One and Kin Two. Stylish designs, an emphasis on flashy social-networking features and an all-out marketing blitz were meant to prove that Microsoft could build the right product at the right time for the finickiest customers — gossiping youngsters with gadget skills.

But last week, less than two months after the Kins arrived in stores, Microsoft said it would kill the products.

...

In 2008, Microsoft acquired a start-up, Danger, that had built popular mobile phone software, hoping that technology would revitalize its waning phone software business. But Microsoft stumbled as it took longer than expected to create a new product with the technology. In April, Microsoft finally introduced the fruits of this labor when it unveiled the Kin phones.

In contrast, Google, a chief Microsoft rival, also bought a mobile technology start-up — Android. Both Android and Danger were co-founded by Andy Rubin, who joined Google.

Google has since turned the Android software into the foundation of a fast-growing mobile phone empire with carriers all over the world releasing products that use the technology.

Microsoft, however, has reassigned the Kin development team and put them to work on Windows Phone 7, yet another mobile phone platform, expected later this year.

Comment: I don't think the Smartphone market will support 4 platforms: IPhone, Palm, Android, Windows

Speaking of Microsoft, what happened to those guys?

It’s Apple vs. Google in the battle over the future of computing

Excerpt:

... the most advanced smart phone on the market is arguably not the new iPhone 4 but rather an Android device called the EVO 4G, made by HTC, a Taiwanese company. That phone has front and rear cameras, and shoots hi-def video, just like the new iPhone 4. But the EVO has a bigger display, its camera shoots in higher resolution, and it can turn itself into a mobile Wi-Fi hotspot, something the iPhone 4 can’t do.

Geeks can, and do, argue over the merits of these phones. But the fact that the two are close enough to be compared side by side is what should have Apple worried. And these are early days. My sense is that over the next 12 to 18 months, Android will surge past Apple the way Microsoft Windows surged past Apple in the 1990s.

Comment: I'm not fan of the way Apple locks the customer in to buying apps from them.

Viruses and Smartphones

Viruses planted in Windows phone games

Excerpt:

Hackers have planted viruses in video games for smart phones running on Microsoft Corp's Windows operating system, according to a security firm specializing in mobile devices.

The games — 3D Anti-Terrorist and PDA Poker Art — are available on sites that provide legitimate software for mobile devices, according to John Hering, chief executive officer of the San Francisco-based security firm Lookout.

The games are bundled with malicious software that automatically dials premium-rate telephone services in Somalia, Italy and other countries, sometimes ringing up hundreds of dollars in charges in a single month.

The services are run by the programmers who built the tainted software, Hering said on Friday.

Victims generally do not realize they have been infected until they get their phone bills and see hundreds of dollars of unexpected charges for those premium-rate services, he said.

Hackers are increasingly targeting smartphone users as sales of the sophisticated mobile devices have soared with the success of Apple's iPhone and Google's Android operating system.

Microsoft said it was aware of the problem and investigating it.

"As always, Microsoft continues to encourage customers to follow all of the steps of the 'Protect Your Computer' guidance of enabling a firewall, applying all software updates and installing anti-virus and anti-spyware software," said a spokesman.

Comment: Also found this:

Malware found on HTC Android phone from Vodafone

Microsoft joins Apple on video standards

Microsoft echoes Apple: 'future of the Web is HTML5'

Excerpt:

Dean Hachamovitch, Microsoft’s General Manager of Internet Explorer, cut to the chase rather quickly, by stating “the future of the Web is HTML5.” He also said that Microsoft has been “deeply engaged” in the HTML5 process with the W3C, the standards body that drafts the specifications for how HTML5 should work. The company’s Internet Explorer 9, now in beta for Windows users, features HTML5 support. Hachamovitch says that while the W3C does not specify a video format for video embedded in HTML5 sites, Microsoft has joined Apple in supporting H.264, and H.264 alone.

In a potential move to soften the blow to an already upset Adobe, Hachamovitch does end his piece with an acknowledgement that “despite [some] issues, Flash remains an important part of delivering a good consumer experience on today’s web.”

Of course, with the rise of the portable devices that don’t support Flash—and especially the popularity of the iPhone and iPad—major publishers and content providers have quickly accelerated the adoption of HTML5 and H.264 to provide Flash-less video delivery. Or, in other words, while Flash may be the Web technology of today, don't think it will necessarily by the Web technology of tomorrow.

Comment: H.264

An insider's view of Microsoft

Microsoft’s Creative Destruction

Excerpt:

... Microsoft, America’s most famous and prosperous technology company, no longer brings us the future, whether it’s tablet computers like the iPad, e-books like Amazon’s Kindle, smartphones like the BlackBerry and iPhone, search engines like Google, digital music systems like iPod and iTunes or popular Web services like Facebook and Twitter.

...

Microsoft, America’s most famous and prosperous technology company, no longer brings us the future, whether it’s tablet computers like the iPad, e-books like Amazon’s Kindle, smartphones like the BlackBerry and iPhone, search engines like Google, digital music systems like iPod and iTunes or popular Web services like Facebook and Twitter.

Microsoft’s huge profits — $6.7 billion for the past quarter — come almost entirely from Windows and Office programs first developed decades ago. Like G.M. with its trucks and S.U.V.’s, Microsoft can’t count on these venerable products to sustain it forever. Perhaps worst of all, Microsoft is no longer considered the cool or cutting-edge place to work. There has been a steady exit of its best and brightest.

Comment: From the NYTimes. Written by a former Microsoft VP. Worthwhile read about management, innovation and progress.

EU to Microsoft: Separate Browser from OS

Microsoft Ordered to Delete Browser

Excerpt:

The European Union said Friday that Microsoft’s practice of selling the Internet Explorer browser together with its Windows operating system violated the union’s antitrust rules.

It ordered the software giant to untie the browser from its operating system in the 27-nation union, enabling makers of rival browsers to compete fairly.

“Microsoft’s tying of Internet Explorer to the Windows operating system harms competition between Web browsers, undermines product innovation and ultimately reduces consumer choice,” the E.U. said in a statement.

Comment: Makes SENSE! The browser is an application, not an essential OS component.

The "Big Switch" to "Cloud Computing"

Facing Free Software, Microsoft Looks to Yahoo

Excerpt:

Now comes a new rallying cry: software wants to be free. Or, as the tech insiders say, it wants to be “zero dollar.”

A growing number of consumers are paying just that — nothing. This is the Internet’s latest phase: people using freely distributed applications, from e-mail and word processing programs to spreadsheets, games and financial management tools. They run on distant, massive and shared data centers, and users of the services pay with their attention to ads, not cash.

While such services have been emerging for years, their rapid adoption has been an important but largely overlooked driver of the $44.6 billion hostile bid that Microsoft made to take over Yahoo this week.

That proposed deal would give Microsoft access to Yahoo’s vast news, information, search and advertising network — and the ability to compete more squarely with Google.

But a merger would also allow Microsoft to adapt its empire to compete in a world of low-cost Internet-centered software.

Yahoo’s huge user base could provide the audience and the infrastructure for Microsoft to change how it distributes its products and charges for them.


Comment: I doubt that corporate american will adopt "cloud computing" in my career life. Every workstation at ________ (where I work) has Office Professional. For my personal life, I am aiming for "cloud computing". Although just this week I upgraded Kathee and my MacBooks to Office 2008.

Yawn! It's so "not-Google"!

What would a combined Microsoft - Yahoo look like?

Comment: Fast blogging here ... read the article. See earlier post: How to ruin Yahoo . Remember how Hotmail and Yahoo mail were so "hot". Well now there not! Gmail! Google Apps! Google calendaring! Google email hosting! Google mapping!

Other busts: Sears & K-Mart / A.T.&T bought NCR systems

Cutting off Microsoft's air supply

Microsoft and Google Duke It Out For the Future

Excerpt:

Google President Eric Schmidt thinks that 90 percent of computing will eventually reside in the Web-based 'cloud.' Microsoft faces a business quandary as it tries to link the Web to its existing desktop business — 'software plus Internet services,' in its formulation. 'Microsoft will embrace the Web while striving to maintain the revenue and profits from its desktop software businesses, the corporate gold mine, a smart strategy for now that may not be sustainable,' according to the article. Google faces competition from Microsoft and from other Web-based productivity software being offered by startups, and it is 'unclear at this point whether Google will be able to capitalize on the trends that it's accelerating.' David B. Yoffie, a professor at the Harvard Business School, says the Google model is to try to change all the rules. If Google succeeds, 'a lot of the value that Microsoft provides today is potentially obsolete.' Microsoft used to call this 'cutting off their air supply."

Comment: I've heard but cannot confirm that Intuit will soon offer an Internet based personal financial manager - think Quicken on the Internet. For light computing, Google apps provides a Word-type application and an Internet-only spreadsheet. All this is "the cloud" of computing's future.

The full NYTimes article:

Google Gets Ready to Rumble With Microsoft


Excerpt:

Still, Google Apps aren’t anything other than a natural step in Google’s march to deliver more computing capability to users over the Internet, Mr. Schmidt says.

“For most people,” he says, “computers are complex and unreliable,” given to crashing and afflicted with viruses. If Google can deliver computing services over the Web, then “it will be a real improvement in people’s lives,” he says.

To explain, Mr. Schmidt steps up to a white board. He draws a rectangle and rattles off a list of things that can be done in the Web-based cloud, and he notes that this list is expanding as Internet connection speeds become faster and Internet software improves. In a sliver of the rectangle, about 10 percent, he marks off what can’t be done in the cloud, like high-end graphics processing. So, in Google’s thinking, will 90 percent of computing eventually reside in the cloud?

“In our view, yes,” Mr. Schmidt says. “It’s a 90-10 thing.” Inside the cloud resides “almost everything you do in a company, almost everything a knowledge worker does.”