Bruce thinks he knows the reason why
server sales are slumping:
I'll tell you what the issue is: Companies are FINALLY realizing you don't have to buy new servers again and again and again, and are also starting to reuse licenses. Wait until people start seriously buying machines made with AMD chips where you can get better performance just by swapping CPU chips. Then there won't be a need to buy a new machine for some time.
-Bruce
And, because we haven't had one in a while, here's another Vista rant:
My beef is with Microsoft's take on faxing. With DOS 5 and 6, every fax modem came bundled with fax software. For Win 3.1, Microsoft provided a fax application with Windows. For Win 95, 98, ME, NT 3.5, NT 4, 2000 and XP -- Microsoft included a fax app with even the lowliest version of each of these.
Now, with Vista Home Premium, the fax app is GONE. Want it back? Shell out for Vista Ultimate or Vista Business. I protest! What will be the fax story for Windows 7? A fax app with even the lowliest version once again? Or no fax app at any price?
-Fred
Tell us what you think! Leave a comment below or send an e-mail to [email protected].
Posted by Doug Barney on March 04, 20090 comments
I'm always excited when a Windows guru builds a new product. What's a Windows guru? It's just an idea of mine where I chose 12 technical leaders from Microsoft third parties and tried to figure out
what made them tick.
One guru is Troy Werelius, CEO of Lucid8. Troy's latest baby is Recovery Advantage. When e-mail crashes, it usually falls to IT to make it all right. With Recovery Advantage, end users themselves can recover lost or accidently deleted mail and related attachments. That way IT can spend more time on strategic work rather than on recovering a deleted e-mail with a Pam Anderson attachment!
Posted by Doug Barney on March 04, 20090 comments
Vista wasn't a resounding success, so many turned to SP1 for help. But SP1 wasn't a resounding success either, as we
reported in a cover story.
Now there are two possible solutions. One is Windows 7, which you all seem to like very much. There's also Vista SP2, which is now what Microsoft is calling a release candidate and I just call a late beta. This is a big baby, coming in at a hefty 300MB. Let's hope the download works better than SP1.
My dad is a Vista user (it came with his new laptop, so he didn't exactly volunteer). Vista SP1 decided to download itself and before he knew it, the laptop was more messed up than Lindsay Lohan at an all-night Hollywood party. We'll be anxious to see how much good SP2 actually does.
Have you downloaded the SP2 late beta? If so, how's it going? Send your reports to [email protected].
Posted by Doug Barney on March 02, 20090 comments
Excel is apparently
vulnerable to remote code execution attacks, and Microsoft is trying to figure out why and how to fix it.
Symantec found the bug and came up the clever name: Trojan.Mdropper.AC. The attack works through a malicious spreadsheet that's masked by a legit file when the user opens it. Microsoft is working on a patch and points out the attacks have been limited so far.
Posted by Doug Barney on March 02, 20090 comments
I've tracked the Windows 7 beta and the IE 8 beta. Windows 7 has testers excited and anxious for the OS to ship. IE 8 has hosed more systems than the Boston Fire Department.
Microsoft, as I understand it, hasn't had a lot of Windows complaints but has heard a few howls about IE 8, which comes with the new OS. Microsoft blames browser add-ins and has updated the beta to fix it.
Posted by Doug Barney on March 02, 20090 comments
Readers share more of their predictions for how Microsoft -- and the tech sector in general -- will make it out of the economic downturn:
Microsoft will need to do some product innovation of its own in order to survive this time around. I don't think it'll be able to steal another "Windows" from Xerox.
-Anonymous
For Microsoft, the future is clear. Windows 7 will replace XP Pro as the flagship Microsoft operating system. It is that good. Even so, its sales will fall short of desired market penetration. Microsoft's true hope for the future lies with a touch-based user interface for its Windows Mobile software and a new physical format that will replace smartphones and netbooks.
My prediction? Look for the next tech-business move to come from the past. Anyone remember Apple's Newton? That physical format, in landscape mode, supportd a virtual qwerty keyboard for speedy, touch-typing text input. In addition, it provided all the functionality of a Kindle, cell phone and workstation. Bonus: The larger, high-resolution screen means on-screen text can be larger (maybe I could even read it without my reading glasses), images display at the size of printed photos, and videos can be viewed without extreme eye strain. For end users, this is the ideal format size for tablet PC applications for hospitals, field inspectors, insurance adjusters and law enforcement officers. For Microsoft, the mini-pad format gives much-needed screen space for Windows Mobile. For Apple, it is the next logical evolution for the iPhone. Plus, Apple gets some vindication for part of its Newton product. The physical format was simply ahead of its time.
Speaking of being ahead of it's time, Trekkers will be quick to point out that this physical format, was predicted in the original "Star Trek" series.
-Dave
The problem is deeper than you imagine. You say Microsoft will be fine, but I don't believe anyone will be fine in the foreseeable future. Most people, especially in business and politics, don't seem to get how deep and painful this one will be.
What Microsoft will do is the same thing other tech companies will do: survive. It will eventually come back to one degree or another, but the old days are gone for good. Fine? I don't think so.
-Anonymous
After a judge ruled against giving the Vista Capable lawsuit against Microsoft class-action status, one reader wrote that it wouldn't have helped the plaintiffs much, anyway. Based on some personal experience, James agrees:
I have to agree with reader Earl about the class-action suit being a benefit only to the lawyers (of course, it probably wouldn't hurt Microsoft that much).
I bought a couple of iPods a few generations ago and got a postcard in the mail the other day. Somebody sued Apple because these particular iPods didn't have some kind of protection on them which allowed them to be scratched very easily. So if I fill out some form on a Web site, I can get either $15 or $25 back, depending on how badly they're scratched. OK, I guess I can fill out this form. Then the postcard went on to say that the total judgment is for $22 million. The lawyers get like $4 million for winning the suit and $200,000 to cover expenses. So who really wins on this one?
-James
Meanwhile, Sharon doesn't think the suit against Microsoft over Vista-to-XP downgrade fees holds much water:
I don't understand why someone would think that you should be able to get past versions of an OS after buying the new version. I realize that for some products, Microsoft allows corporate clients with broad licensing agreements to downgrade for the same price. Never for an end user, though. Should I be able to buy a 2009 car and, when I decide I don't like one of the features, take it back to the dealer and tell them I want an '08?
Applying this to software: Have you ever heard of any software downgrade that didn't require you to buy the older version? The latest version of Photoshop is more complicated than the version I learned. Should I get an older one for free if I bought the new one?
-Sharon
And Ben offers his answer to a reader's question last week about why the EU doesn't pursue Apple over bundling Safari the same way it does Microsoft over IE:
The reason for this is quite simple. The problem is not just that the browser is shipped with the operating system, but that Internet Explorer is integrated into the operating system itself, giving it an unfair competitive advantage over other browsers. When working on Windows, you can pretty much ignore whether you are in Internet Explorer or Windows Explorer.
Safari does not function as the file system browser or integrate with Mac OS in the same way IE does with Windows. I think there is often confusion with the use of the word "bundled" in this situation, because it could be interpreted in different ways.
-Ben
Join the fray! Leave a comment below or send an e-mail to [email protected].
Posted by Doug Barney on March 02, 20090 comments
Microsoft recently showed off what could be the world's most secure browser. Unfortunately, it's not IE 8 -- or any rev of IE, for that matter.
The browser is Gazelle, a prototype from Microsoft Research that includes its own browser operating system designed to ward off memory attacks.
Unfortunately, many of these research projects are more show than go. Take Singularity, a desktop OS architected for speed, compatibility and security.
Meanwhile, for the foreseeable future Microsoft's commercial products will use the Vista kernel.
Posted by Doug Barney on February 27, 20090 comments
You've got to love when monopolies fight. In one corner, you have Microsoft holding on to its IE monopoly by the skin of its well-maintained teeth. In the other, you have Google steadily building control of search -- with the rest of the Internet seemingly to come.
You'd think Google would have enough pride to stay out the European Union's prolonged fight against IE. But no. Google claims there's nearly zero competition in the browser space (maybe because Chrome has a share smaller than Moxie has in soda sales).
Posted by Doug Barney on February 27, 20090 comments
Recently, Steve Ballmer made the stunning disclosure that Microsoft's server business is
seriously challenged. And this is a business that had been on an upward trajectory that would make Alain Robert proud. (Look it up -- that's what MSN Live Search is for!)
Ballmer has reason to worry. It's hard to sell server software when no one is buying servers. Analyst firm IDC says the market dipped 3 percent in 2008 compared to 2007, mostly during in the fourth quarter when the market completely tanked. IDC doesn't expect a recovery until late this year or early next. That's if we're lucky, I say.
Are you buying as many servers as you used to? And if so, are you looking at energy efficiency and virtualization? Spending plans welcome at [email protected].
Posted by Doug Barney on February 27, 20090 comments
Readers give their predictions for how Microsoft will fare in this economic climate...and what the company can do to actually change things for the better:
Of course, Microsoft will be fine. Most of Microsoft's customers have enterprise license agreements so the income stream, though smaller, will remain intact. Being a software company, Microsoft won't be saddled with unused production capacity or unneeded staff or office space.
MS OEMs will be the ones to suffer and the smaller ones are likely to go belly-up.
-Marc
Given Microsoft's cash and the simple inertia of its customer base,
Microsoft will make it through this downturn. And expectations for it
will be lower because of the economy. The real question is after.
Microsoft has strong and potentially strong products, but the key
revolves around whether Ballmer can lead with vision as Gates did.
And after the recession, expectations for things like Azure will be
much higher.
Personally, I don't believe Ballmer is the right leader and MS will
have to find a real Gates successor. Otherwise, while MS will retain
large market share, it won't be as dominant as it is today (which might
not be a bad thing). In essence, Microsoft will make it through, but
it will shrink.
-Bob
Let's face it. No one is better than Microsoft at creating demand before there is any supply! If Microsoft was truly worried about the economic future of this great country, it would invest some of its huge cash reserves back into the creative workers that are actually U.S. citizens. Maybe Microsoft could create a new division of programers that do nothing but reduce the amount of code to help software run more efficiently. Or how about a group dedicated to searching for and filling the security gaps that seem to be everywhere in Microsoft products?
Of all the companies in the U.S., Microsoft would be able to have a positive effect on the economy. And if it expanded, other companies would surely follow. Just like they always do!
-Steve
The ghost of the "Vista Capable" sticker reared its head again this week, as a judge ruled against giving class-action status to those filing suit against Microsoft. Doug disagreed with the ruling. Here's what you think:
I agree with you on some points you make. However, even the slightest research by any consumer would have indicated that you should work with the "recommendations," not "minimum requirements" for Vista (or any other software, for that matter). I do feel Microsoft oversold Vista's ability to work with older hardware, but I have to say the primary onus should be on consumers to do their due diligence to figure things out before making significant purchases. If everyone believed what vendors of any industry said without skepticism, just think where we'd all be. Can you break athletic records because Nike says you can "just do it"? There needs to be some responsibility on the consumer, not just Microsoft.
The "capable" statements were technically accurate; the minimum requirements could install and run the software. Using words like "capable" should clearly be understood by the consumer that, yeah, it can run it on that old stuff, but you should really look to newer stuff to get the best experience. And that is the case. I don't think the judge was mistaken. It was a (I hope) fairly limited number of consumers who were affected and who should have thought a little more about their purchase.
-Brian
You noted, "The PCs in question had the 'Capable' logo, but barely supported the OS and only ran the lowest-end versions." Think back to all the Mailbag letters protesting the recent announcement of Windows 7 versions. There are simply too many versions of Vista. A generic sticker stating a machine is capable doesn't give enough information. Then you need to get into compatibility charts. With a reasonable number of versions (no more than two), issues such as this would be less prevalent.
-Anonymous
I agree that Vista Capable is horrendous, as is paying extra to downgrade. But a class-action suit would only hurt Microsoft to the benefit of the class-action lawyers. The people who are actually harmed only recover pennies, possibly dollars, in class-action suits. The lawyers make millions on these cases and they tie up the courts for years.
A better solution would be to boycott companies that sold Vista Capable computers. After all, they were the ones who assembled these horrible machines.
-Earl
Meanwhile, Steve gives his take on the other Vista-related suit against Microsoft, this one over XP downgrade fees:
Are you supporting Alvarado's case against Microsoft? Shouldn't it be Lenovo versus Microsoft? Per the Register article you reference, a Microsoft representative said, "Microsoft does not charge or receive any additional royalty if a customer exercises those rights. Some customers may choose or need to obtain media or installation services from third parties to install the downgrade version."
Personally, my experience with HP Business PCs through its B2B channel is that it provides both Vista and XP media; usually x86 and x64 are included for both OSes. And it ships with XP installed. So whether Dell, Lenovo or whoever wants to charge a premium and toss it back on Microsoft's shoulders as Microsoft's fault or include a few extra disks that will cost the OEM very little to produce -- it sounds like it is a case that should be targeted toward the OEM, not Microsoft.
-Steve
Ever wonder why the European Union hasn't given Apple the same treatment as it's been giving Microsoft? You're not alone:
And why is it that the EU doesn't do anything about Apple bundling Safari with the OS X operating systems? Double standard?
-Anonymous
Tell us what you think! Leave a comment below or send an e-mail to [email protected].
Posted by Doug Barney on February 27, 20090 comments
Last year,
Red Hat bought Qumranet, a virtualization outfit that owned the KVM hypervisor and a selection of desktop/thin client tools, for around about $100 million.
Now Red Hat is laying out its enterprise strategy in the form of a new line of Qumranet-based products, such as an updated server hypervisor, management tools (which is where the real action and money are) and desktop virtualization wares.
Red Hat, in my estimation, is going after the void it believes is left as Citrix puts muscle behind Hyper-V. That commitment leads some to assume that Citrix really doesn't care about its own hypervisor, Xen. But Citrix does care -- to an extent. It's happy to push Xen into open source-centric shops, and more than happy to sell Hyper-V right alongside Microsoft.
Incidentally, at first I thought "Qumranet" was just another meaningless high-tech company name, but I discovered that the Dead Sea scrolls were found in the Qumran Caves. Cool.
Posted by Doug Barney on February 25, 20090 comments
Steve Ballmer is warning Wall Street that our miserable economy can and probably will impact Microsoft. The biggest threats? The PC market is down and Microsoft still struggles with search. Server software, which had been booming, may soon be bombing as IT holds off on upgrades.
Ballmer believes that the money that has left the economy won't simply come back during a recovery, but that we will "reset" at a lower level. For Microsoft, that means future profits may not be as big as we're all used to.
My guess? Microsoft may actually see a quarter or three of actual losses. However, it's still sitting on some $20 billion in cash and the strongest overall product portfolio the market has ever seen. Microsoft will be just fine. Agree, disagree? Send your economic projections to [email protected].
Posted by Doug Barney on February 25, 20091 comments