Microsoft Misspells New Code Name

So Microsoft will, after all, launch a beta program for its new Web analytics tool, code-named "Gatineau."

Now, we're sure that there must be a mistake in here somewhere. Surely Microsoft wouldn't use some town in Quebec as a code name. Oh, no. We suspect that Redmond meant to call its forthcoming heavy hitter "Gastineau," after Mark Gastineau of 1980s "New York Sack Exchange" fame. Some temp or public relations person must have dropped the "s" at some point. And -- you guessed it -- we fully expect the next version to be called "Klecko." When does football season start again?

Posted by Lee Pender on July 26, 20070 comments


Time for Google To Lawyer Up?

There's nothing we love here at RCPU more than speculation, and the latest round involves talk that Google is about to hit the same antitrust wall that Microsoft ran into in the '90s. Meanwhile, Microsoft and Yahoo (oh, and Ask.com) are on an Internet privacy kick.

Posted by Lee Pender on July 25, 20070 comments


Redmond To Show Off Hosting Wares

This week marks the HostingCon 2007 conference in Chicago, which, aside from serving as a forum for Microsoft to show off its application-hosting technologies, also sounds like something you might do if you invited a convicted felon over for dinner. (Get it? "Con," like convict? Never mind.)

Posted by Lee Pender on July 25, 20070 comments


Microsoft and Feds Bust Chinese Pirates

Just when Bill Gates starts talking up piracy in China as a Microsoft sales tool, Microsoft goes and helps the FBI bust a bunch of software pirates in China. Go figure.

Posted by Lee Pender on July 25, 20070 comments


Microsoft Rolls Out the Benefits Wheel

We've said many times here at RCPU that Microsoft, in general, is very good to its partners, and we still believe that it is true. The only problem, as most partners probably know by now, is that sometimes the Microsoft Partner Program can offer -- as the old saying goes -- too much of a good thing. And sometimes that good thing -- maybe the one good thing a partner really needs -- is a bit hard to find.

Roll in the Microsoft Partner Program "benefits wheel." Oh, it's officially called the Partner Benefits Framework in classic stodgy Microsoft fashion, but the round shape of the diagram used to clarify how partners can access the benefits they need just lends itself to the "wheel" moniker. Besides, we can envision thousands of clever little "wheel" quips spinning out of this. Well, hundreds, anyway. Or maybe tens.

Anyway, in the magazine's August issue, Redmond Channel Partner Executive Editor Anne Stuart takes the benefits wheel for a test drive, looking at how the partner program and its new general manager, Julie Bennani (who, rumor has it, actually reads this newsletter) are trying to clarify which benefits are available to partners and how partners can access them.

Anne also talks to Robert Deshaies, vice president of Microsoft's U.S. Partner Group, about a slew of new benefits Redmond plans to offer partners in Microsoft's current fiscal year, which began at the beginning of this month.

As wheels go, the benefits wheel ranks pretty high on our list -- well above "Wheel of Fortune" and probably somewhere between "Wheel in the Sky" by Journey and a big wheel of cheese. In fact, you could say that we never tire of looking at it. And if you're a partner, you should really get around to checking out this wheel and what it can do for you.

Which are the most important benefits for you in the Microsoft Partner Program? Tell met at [email protected].

Posted by Lee Pender on July 25, 20070 comments


Microsoft Earnings: Redmond Pays the Cost of Cool

Commenting on earnings only a few hours after they come out (we're writing this on Thursday afternoon, FYI) is a bit like reading the CliffsNotes for a great novel and then doing a book report. Earnings reports from big companies like Microsoft are absolute monsters (seriously, check this thing out), and they're full of subtle nuances that press releases and a few wire-service stories can't fully capture.

But for our purposes today, the CliffsNotes of Microsoft's earnings announcement will be just fine. And the major character in this story is the forlorn Xbox, the infamous video game console that Redmond now has to fix…to the tune of more than a billion dollars. Microsoft actually ended up doing fine -- although not spectacularly well -- in its fourth fiscal quarter despite the problems with the Xbox.

And its year-end numbers -- remember, Microsoft's fiscal year runs from July through June, not that you didn't know that -- were fairly staggering: For the first time, Redmond earned more than $50 billion in a single fiscal year. So those Xbox repairs cost about one-fiftieth of the company's annual haul. Just to put things in perspective.

Quarterly numbers seemed to be about what Wall Street expected, so it's hard to say how this earnings report will affect Microsoft's stock price, which, despite about a 6 percent rise this fiscal year, still trailed Oracle, Google, Apple and the S&P 500 in terms of performance. The fourth quarter's final tally could have been better, of course. For instance, the Xbox repairs showed up as a one-time expense, but it fairly shaved the company's earnings-per-share figure.

The Xbox debacle is all part of Microsoft's ongoing -- and, thus far, mostly unsuccessful -- attempt to be cool. The console hasn't yet made any money and has now surely cost more than Redmond ever expected. Losses for the company's Entertainment and Devices division were up 183 percent in 2007 compared with 2006. Microsoft's Online Services Business division -- think MSN and almost anything called "Live" -- saw losses expand, too.

But that's the bad news, and, as you might expect, there's lots of good news. Vista seems to be bumping along, sales-wise, mainly because -- as we see it -- people who buy new computers get it by default, not because anybody seems to particularly like Vista. Still, while it might be a critical failure and a dud in the enterprise channel thus far, it's raking in dollars for Redmond. And Dynamics, Microsoft's enterprise software offering, showed up as a 24 percent increase in customer billings in the company's fourth fiscal quarter.

So the story of Microsoft's earnings has a happy -- if not massively, spectacularly happy -- ending, despite a few plot twists. Which leads us to wonder (again), actually -- why does Microsoft try so hard to be cool? How much more money will it cost Redmond before the company either turns its fortunes around with Xbox and search or just stops pumping so much into both efforts? In Microsoft's case, we suppose, money is no object.

What's your take on Microsoft's earnings? Are you pleased with the direction in which the company is moving? Talk to me at [email protected].

Incidentally, there were lots of earnings reports this week, including numbers from Intel and Google, the latter of which missed Wall Street's expectations and took a bit of a hit.

Oh, and while we're adding footnotes, guess what's back? The Microsoft-to-buy-Yahoo rumor!

We'll get back to running the loads and loads of reader e-mails next week, so keep them pouring in to [email protected], and thanks to all of you who have taken time to write.

Posted by Lee Pender on July 20, 20070 comments


Gates: Chinese Pirates Are Great for Microsoft

Interesting little story here in The Times of London, old chap, about how Microsoft actually figured out how to profit from piracy in China. Leave it to Bill Gates and friends to turn a sow's ear into yet another expensive silk purse.

Posted by Lee Pender on July 20, 20070 comments


Dell Goes the MSP Route

Michael Dell has come swooping in to try to clean up his mess of a company, and part of his plan includes the purchase of a managed services provider called SilverBack.

Posted by Lee Pender on July 20, 20071 comments


Vista SP1: Your Guess Is as Good as Theirs

Mary Jo Foley tries to slice and dice through the confusion of exactly when the first Vista service pack is going to appear, but even she is having trouble with her Microsoft Ginsu knife blade.

Incidentally, in the interest of balance, we've found a couple of fans of Vista. (See, we couldn't lay off the reader e-mails after all.) Paul writes:

"I believe Vista has a lot offer to offer to users of all levels. The pervasive search throughout is hands-down my favorite feature. It is very well integrated, fast and accurate. Sure, you can have this experience today with Windows XP through Windows Desktop Search or Google Desktop, but with Vista it is baked right in. A big thumbs-up to Microsoft on this point. Vista does offer a lot more usability improvements in the overall shell experience, too. I find that most people struggle with Vista simply because it appears to be different from the XP experience. If you look closely, however, the shell changes are more evolutionary than revolutionary.

"I would be interested to see your magazine and editorials highlight the positive changes and how they can impact users of all levels. It is clear that the sales numbers aren't matching expectations at present, but enough of the negativity, please -- let's start focusing on the positive and the 'road ahead.'"

But, Paul...the negativity's so much more fun! All kidding aside, we don't actually want Vista to fail. So, in the interest of focusing on the positive, we'll not run the negative Vista e-mails we got this week (even though they do outnumber the positive ones these days). In fact, here's another e-mail from a Vista fan, Eddy, who -- and this is the first time we've heard this -- doesn't like Office 2007:

"Every workstation on our network is running Vista. We have no problems or compatibility issues with it and love it. Now, Office 2007 is another matter. Whoever made the decision to remove the traditional navigation menus and switched to the new format should be shot on sight. Office 2007 has a huge learning curve that was not necessary."

Shot on sight. Eddy doesn't mess around when it comes to productivity suites.

Have anything to add on Vista or Office 2007? Add it at [email protected].

Posted by Lee Pender on July 20, 20071 comments


Partners Win Redmond's Praise

Squarely in the "in-case-you-missed-it" category, here's a story on last week's Partner of the Year awards doled out at the Microsoft Worldwide Partner Conference in Denver.

Out of curiosity, what do these awards mean to you? If you're a partner, do you actively try to win them or partner with companies that have won them? And if you're in IT (and we know you're out there reading), are you more likely to partner with a company that has won an award? Let me know at [email protected].

Posted by Lee Pender on July 19, 20070 comments


More Eurotroubles on the Way for Microsoft

Well, here we go again. The European Union, not content to have already hammered Microsoft with all sorts of fines and other hassles (which Redmond has appealed, of course), wants more. This time, "people" (we just love Bloomberg's headline on this one) say that the EU is going to look into Microsoft's dominance in the word-processing and spreadsheet games. And if "people" say it, it must be true...right?

The EU's main beef seems to be with interoperability with productivity suites that compete with Office -- specifically, for instance, whether Microsoft is making it too hard for developers of, say, StarOffice to let their product handle Word documents and Excel spreadsheets.

Microsoft counters with its Office Open XML format, which was cruising through various certification organizations on its way to becoming a standard (having already been accepted by at least one) -- until this week, when things hit a bit of a snag. Regardless, Microsoft says that OOXML and its thousands of pages of documentation make it possible (if not necessarily easy, we'd hasten to add) for developers of rival systems to create interoperability with Office formats.

We're all for interoperability here at RCPU, and we're all for anything that makes it easier. But we're not for excessive government intervention into anybody's business or products -- and we're not for measures that weaken intellectual property. So let's see what rivals have to say about Word and Excel and how legitimate their claims seem (although we suspect there will be nothing new under the Eurosun). Our guess is that this whole episode amounts to more Microsoft-baiting from the EU and Redmond's rivals...and more multi-figure paychecks for corporate lawyers.

Posted by Lee Pender on July 19, 20070 comments


Some Paradigms Never Shift

Those of you who remember the gilded age of the late 1990s (and before) will simply love an article that's been circulating on the 21 biggest tech flops.

Our favorite tech flop (which did make the article) is speech recognition software, if only because your editor got a bit of a scoop at Comdex some years back by reporting that Microsoft wouldn't be including speech recognition in whatever the next version of Windows was at the time. Hey, it might seem ridiculous now, but it was pretty darn exciting at the time.

What's your favorite tech flop? Drop me a line at [email protected].

Posted by Lee Pender on July 19, 20070 comments