Maybe it's got something to do with
rampant
stories about identity theft, or maybe it's a result (or the cause) of the
return of the horror movie to cultural prominence in recent years, or maybe
it's some sort of unfortunate lingering after-effect of the Sept. 11 terrorist
attacks...or maybe we just like to be freaked out. But if any word describes
how we tend to react to things in the United States of late, it's "panic."
Just look at the press this week. No less of an opinion influencer than BusinessWeek
-- perhaps this country's finest weekly news magazine, period (given that The
Economist is British) -- devoted its cover story to the question of whether
Google is too powerful. BW did an excellent job (and, no, we haven't
applied for jobs there -- we just feel this way) of canvassing the general freak-out
about Google that's currently taking place in boardrooms. It's a dread that's
spanning the technology, publishing, advertising and entertainment industries
-- among others.
The fear is that that Google -- with its mysterious algorithms, omnipresent
search engine and hunger to catalog every datum coughed up by humankind -- will
eventually dominate world commerce. It might even pose a threat to America's
national defense. Already, apparently, Google
has an "image problem" that's hindering its ability to cut deals
and perhaps encouraging huge lawsuits.
We say "already" because Google isn't even quite a decade old. It
took IBM decades to become the technology industry's most feared (and often
hated) entity; it took Microsoft years. But now, in the age of panic, lots of
observers are worried that Google is an unstoppable monster that must be curbed
before it eats the whole economy. Why, just this week, we learned that Google
has started talking about buying
online ad broker DoubleClick, a company that seemed last week to be almost
promised to Microsoft as a key part of Redmond's quixotic effort to catch
Google in the search game.
Now Microsoft, still
the devil in many observers' eyes, is in the unfamiliar position of being
the
world's only potential savior from some other rampant corporate entity.
By buying DoubleClick and Yahoo! (as we say
hello to that old rumor again), Microsoft might be able to at least put
a dent in Google's Internet hegemony. But if the acquisition doesn't happen,
Redmond will doom us mere mortals forever to live in Google's world of unrelenting
efficiency and accessibility of information. The horror.
All of this, of course, is ridiculous. First of all, many of us (as BW
points out) don't want to be saved from Google and the services it provides.
Those services have generally made us more productive and enhanced our computing
experiences and lives. But it's also ridiculous because Microsoft isn't a search
company (outside of enterprise search, maybe, which is a bit of a different
game) and because Google is bound to miss something (we don't know what yet,
but something).
Apple missed licensing its operating system. IBM missed client-server computing.
Microsoft missed the Internet, tried to make up for it by crushing Netscape,
and then got blindsided by Google and search. As Google grows -- and its employee
count is currently about 12,000 -- and becomes more influential, its leaders
will have to focus more on the company's stock price and corporate standing
than on innovation and market trends. And somebody will sneak up behind it,
develop some sort of new model and hit Google where it hurts. In other words,
innovation and the free market will take care of themselves -- and of us. No
need to panic.
How worried are you about Google taking over the world? What do you think of
Microsoft's efforts to catch Google? We've had some great comments on this already.
Friday is going to be reader e-mail day at RCPU, so hit me this week with your
thoughts at [email protected].
Posted by Lee Pender on April 03, 20071 comments
There's more talk from the Free Software Foundation this week about how it
plans to do everything it can to
undermine
the Microsoft-Novell SuSE Linux agreement. The FSF is worried that letting
the deal slip by will represent tacit acknowledgment that Microsoft actually
owns some Linux intellectual property and patents (something Steve Ballmer has,
uh,
mentioned in the
past). The Novell deal, after all, included a pretty well-known patent-protection
clause.
There's a big problem with what the FSF is doing here. Linux-Windows interoperability
is a good thing for partners and users. It strikes us as odd that the very people
who constantly clamor for Microsoft to be more open to other vendors and systems
and less proprietary are now trying to squash one of Redmond's biggest interoperability
initiatives ever. If they're so confident that Linux doesn't infringe on Microsoft's
patents, why don't they just let this deal go ahead? Is Red Hat just angry that
it missed an opportunity that Novell took (to
Red Hat's peril thus far)?
Hey, we realize that Microsoft is probably in this Linux business for a lot
of reasons, not many of them related to the pure-hearted goal of helping users.
Antitrust issues are likely part of Redmond's agenda (as
they always seem to be), and Ballmer might really be thinking that he can
best crush Linux from the inside by partnering with a Linux distributor, which
is why Novell had better be
careful in how it handles this relationship. So, we understand why the FSF
folks might approach this deal with some caution.
On the other hand, interoperability with Windows gives Linux -- still kind
of a mess of an operating system with its lack of standards -- credibility,
and it's good for customers and partners. Isn't that supposed to be the bottom
line, after all? Plus, it's not as though Novell is the only Linux distributor
out there. The OS will live on even if Novell doesn't -- and we're not anywhere
near that stage. The FSF seems to be operating primarily out of fear and dogma
here, and those are rarely good foundations for business decisions. It seems
as though the open source folks are open to everybody but Microsoft. It sort
of lends a bit of irony to the term "open source."
What do you think of the Free Software Foundation's attempts to submarine the
Microsoft-Novell deal? Let me know at [email protected].
Posted by Lee Pender on March 28, 20070 comments
The next step in the evolution of Microsoft's Dynamic Systems Initiative (DSI)
-- not to be confused with Dynamics products -- will be here next week. April
1 is the release date for the
System
Center Operations Manager 2007, part of DSI. The new management software
is the next version of what's now called Microsoft Operations Manager (MOM)
2005.
Microsoft officials are trumpeting SCOM -- um, we mean "Operations Manager,"
but more on that later -- as the first real breakthrough for DSI, its broad
systems-management program. Operations Manager is the first product to carry
the "System Center" brand, Microsoft says. It's a key piece of the
overall strategy Redmond envisions for helping IT people better manage their
environments and provide services to users. Operations Manager does that via
enhanced IT event and performance monitoring. It represents a big leap from
MOM because of its ability to monitor an entire system and not just individual
components.
The new release "moves from being an individual server-management tool
to being a solution that can manage end-to-end IT services," according
to Eric Berg, director of Microsoft System Center. "It gives you one holistic
view into that end-to-end service."
Operations Manager also introduces role-based user access, client (as well
as server) monitoring and audit collection services that allow companies to
collect security log data from servers -- a capability that's especially important
for companies wrangling with compliance issues, Berg said.
Just one thing, though. The secure, homey feel of the name MOM will be gone,
and, whatever you do, don't call the new product "SCOM." Microsoft's
not wild about that for reasons that are pretty obvious. The official Redmond
nomenclature, short version, is "Operations Manager."
Even just calling it "OM" is a little risky, as that name is already
the domain of famous French soccer club Olympique
de Marseille. We do not suggest that you try to sell anything with
the name "OM" in Paris. Actually, we're kind of hoping that "OpMan"
will catch on.
Also today, Microsoft announced a partnership with EMC aimed at boosting OpMan's
capabilities. (Here's
an article that flagrantly uses "SCOM.") Redmond also talked about
standardizing the Service Modeling Language as part of a broader effort to create
heterogeneous systems management.
What opportunities do you see for systems management? Tell me at [email protected].
Posted by Lee Pender on March 28, 20070 comments
Government agencies have
put
the kibosh on it, and even Steve Ballmer tried to get investors to
calm
down about it. Just today, a product manager from one of Microsoft's bigger
ISV security partners (OK, it was Symantec) told us that most companies won't
even seriously start looking at switching to it until the third or fourth quarter
of this year (and that actually sounded a little optimistic compared with other
projections we've heard).
But Microsoft wants you to know that everything is fine, just fine, with Vista.
It's great, actually. In fact, it's selling at double
the pace at which XP sold when it first came out! Of course, the
PC market is a lot bigger than it was when XP came out, and all of those
free Vista upgrades that folks got when they bought XP over the holidays last
year figure
into Microsoft's numbers. Still, why dwell on such tiny details? Hooray
for Vista!
OK, enough of the snarky comments. The fact is that most of us will run Vista
eventually.
It's debatable whether Vista will be the last great operating system from Microsoft
before everything moves to some sort of Google-ish Web-based service (or to
Microsoft's combined software-service model). However, the strong likelihood
remains that Vista will be the default OS for many, probably most, of the world's
computer users by the time the next version of Windows comes out. Mac OS is
as great as ever (although maybe not as great as advertised -- see the next
entry), but it's not a serious threat to Windows' market share, especially in
the enterprise. And Linux, while gaining momentum, is still a splintered OS
that won't benefit from the continued lack of organization (and now, thanks
to the Microsoft-Novell deal, infighting) inside the open source community.
So, Vista it is -- or will be.
For now, though, Vista has to be a disappointment. Given how long it took to
release and how much of a financial boost Microsoft needs from it right now,
Vista just isn't building the momentum or gaining the kind of market traction
that Redmond would like to see. Maybe the main problem with Vista is that XP
is actually too good -- or at least too mature and familiar. Those stringent
Vista hardware requirements don't help, either. And despite the half-a-billion
dollars Microsoft is spending to promote Vista, the new OS hasn't exactly captured
the public's imagination.
A Gateway official in the Cnet story linked above talks about how he's seen
a "pretty good reaction" to the release of Vista. That seems to be
a common response to the new OS. In terms of functionality, sales and interest
from consumers and companies, it's -- you know -- pretty good. Not great, not
bad, just OK. You can almost hear shoulders shrugging with apathy as people
make these statements. Vista isn't a disaster, but it's not exactly generating
the "wow" Microsoft hoped to see.
Have you upgraded to Vista? What's your attitude toward the new OS now that
it's been out for a little while? Tell me at [email protected].
Posted by Lee Pender on March 27, 20073 comments
In
Pirates of Silicon Valley,
a movie to which we just love to refer, there's a scene at the end in which
Anthony Michael Hall's Bill Gates peers from a video screen over Noah Wyle's
Steve Jobs at a press conference as Gates announces the investment by Microsoft
that basically saves Apple.
In the background, onlookers and Mac fanatics boo and hiss at Gates' overwhelming
mug. The Big Brother connotation is not exactly subtle, but what do you want
from a made-for-TV movie? (By the way, if Pirates had been a theater
release and not a made-for-TV flick, "I got the loot, Steve!" would
have been one of the great cinematic catchphrases of the late 1990s. Alas.)
And so we jump forward a decade or so to this
year's edition of BrainShare, Novell's annual user conference. Except, instead
of Bill Gates -- or even Anthony Michael Hall -- it's Microsoft's Craig Mundie
who's playing the role of big brother. OK, sure, the situation is different
here. Microsoft's not saving Novell, and Mundie isn't exactly a lightning rod
on the level of Bill Gates or Steve Ballmer. But in terms of clashes of cultures
and an (at least partially) angry user base (including the ubiquitous "Microsoft-as-the-devil"
reference), there's
some drama playing out in Salt Lake City.
Just don't tell Novell CEO Ron Hovsepian that. He's busy
telling everybody that the deal is just great for both parties. It sounds
as though he'll have to do a little more convincing before he wins over his
company's hardcore followers, though. But with new enterprise customers picking
up on the deal and Microsoft pumping money into Novell and SUSE Linux, Hovsepian
might not care all that much about the ranting of a few dogmatic Penguinites
-- nor should he.
And speaking of Linux, after readers told us a few weeks ago to "Fear
the Penguin!" blogger John Obeto II, managing partner and chief technology
officer of Logikworx, responded
with a hearty rebuttal. We'd like to thank John for his faithful readership
and for taking the time to go into such detail in discussing a humble RCPU entry.
Redmond magazine, our sister publication aimed at IT folks, also got
some talk stirred up with its March
cover story on Microsoft opening the door to open source.
We always enjoy your comments on open source, Linux, Novell, Microsoft or just
about anything else you want to talk about. Send them to [email protected].
Posted by Lee Pender on March 21, 20070 comments
Philippe Gaillard (who, it randomly turns out, was a neighbor and rugby opponent
during your editor's days living in Paris) gets it. The president of Neocase,
an ISV that provides support applications and integrates its wares with Dynamics
CRM, explains very succinctly why Dynamics ERP and CRM are getting attention
from so many companies:
"They look [at Dynamics] because they're sick of paying millions of dollars."
Et voila! There are a lot of reasons why companies of all sizes are looking
at Dynamics, but none is more compelling than the potential for getting serious
functionality without paying the exorbitant prices often associated with enterprise
software. Combine that with Microsoft's integration message, and what could
go wrong for partners selling Microsoft's applications?
Channel congestion, that's what. Yes, apparently some partners feel as though
the Dynamics channel is too crowded -- and this at a time when Microsoft officials
say that partner recruiting is going "very well." More partners competing
for gigs can mean tighter margins, dangerous implementations and maybe even
more sales for SAP and Oracle -- especially when those companies approach with
their direct sales forces customers befuddled by a flotilla of Microsoft VARs.
Jeff Sampson, founder and CEO of Kineticsware,
was one of the architects of Microsoft's industry builder initiative. He's seen
what can happen when Dynamics partners fight for a place at a customer's table.
"We would very frequently get involved in customer situations where you
had sometimes eight VARs," Sampson says. "You're a buyer -- you have
Oracle, SAP and eight Dynamics VARs, with three of them pitching one product,
two pitching another and so on. The customers says, 'Microsoft, can you tell
me which one to work with?' and Microsoft says, 'No.'"
Microsoft has to say no. That much is obvious. But what can Microsoft do about
channel congestion? Stop recruiting new Dynamics VARs, some partners say. But
a more likely scenario is for Microsoft to choose the partners it invites to
bids at a customer's request more carefully.
"Why should you invite smaller partners to global accounts?" asks
Aliona Geckler, vice president of global marketing for Columbus IT http://www.columbusIT.com
, who calls the problem of competition within the channel "huge."
"If the customer asks Microsoft, [Microsoft] shouldn't go with more than
one partner, more than two partners. It should be very clear by industry and
by size."
Those are all valid points, but there's nothing wrong with a little competition,
right? Well, no. And channel crowding is, unfortunately, one of the disadvantages
of the indirect sales model. To some extent, that's just the way it goes. At
the same time, Microsoft should be careful not to submarine its strong Dynamics
offering by overwhelming potential customers. Maybe carefully choosing partners
to respond to customer requests is a good strategy -- not that Microsoft isn't
trying to do that already, and not that that's easy to do for a vendor that's
supposed to stay partner-neutral.
Perhaps, though, the best idea is for partners to police themselves. That's
the message that Mark Jensen, general manager, Microsoft Dynamics market development,
wants partners to get.
"Do some soul searching to find out who you really are," Jensen says.
"Are you really a VAR, are you really a full-service implementation partner,
are you really an ISV? We see too many examples where partner organizations
might be struggling because they're trying to be what they're not. Find out
who you really are and then don't fight it."
In other words (our words), don't jump into a job that you know you really
can't do and ruin it for everybody. That's easier said than done, but it would
be a shame to see a potentially massively successful concept like Dynamics struggle
due to Microsoft's greatest asset -- its partners -- spending too much time
and money fighting with each other when it's not really necessary to do so.
Posted by Lee Pender on March 16, 20070 comments
Forget the news, even though there's a lot of it. Two shocking revelations
emerged from Microsoft's Convergence show in America's most beautiful city today.
First, and perhaps most disturbing, is that one of the editors of this newsletter
(as in one of the guys who reads it and tries to put my ramblings into some
sense of order) owns a Zune, aka "the uncool iPod." Bought it himself.
And likes it. And sort of resents RCPU's incessant pounding of it in recent
months. Who knew?
Second, I was apparently the first (and perhaps only) registrant to float a
line from the Anchorman
movie at the San Diego Convention Center registration booth. It went over like
a lead balloon. Anchorman quotes used to be universal currency in any
discussion of San Diego. However, that was par for the course. I also asked
an attendant here where Jack Murphy Stadium was, and he said, "What? Jack
Murphy?" I explained that I was talking about the place where the Chargers
play, and his eyes lit up. "Oh, Qualcomm!" he exclaimed. Um, yes...Qualcomm.
Well, it used to be Jack Murphy Stadium. Apparently, I'm spending too much time
writing newsletters.
But enough of those digressions. There was a lot of serious business to talk
about at Convergence. RCP's excellent wrap-up of it all is here.
A few key themes have emerged. We'll be writing about them all week (remember,
there are four RCPUs a week now), expanding on things as we get feedback from
partners, analysts and Microsoft folks. First, though, a few tidbits about the
show, just to give you an idea of what it's like to be here.
The affable Doug Burgum, senior vice president of the Microsoft Business Solutions
Group, threw out some interesting numbers. There are 8,700 attendees at this
year's Dynamics-oriented get-together, up considerably from the 47 who showed
up for the first edition of Convergence 11 years ago. We seem to remember Microsoft
saying that there were 6,000 attendees last year in Dallas (although that's
not fact-checked), so interest in Dynamics appears to be increasing. Either
that, or every partner, IT pro and reporter in the Northeast and Midwest couldn't
resist four days in sunny San Diego. There are no fewer than 1,000 Microsoft
people here this week, meaning one Microsoftian for every 8.7 attendees. It's
a high-touch show.
Newswise, the big announcement was the introduction of Dynamics Client for
Office and SharePoint. The app integrates Dynamics with the familiar Office
interface and the useful SharePoint server in very much the same way that Duet
ties the Office front end to an SAP back end. Dynamics Client delivers on the
desktop integration promise that could be Microsoft's ace in the hole over competitors
like Oracle and SAP. Those guys don't have 90-plus percent market share in the
productivity-suite game and have a much harder time giving users the information
and capabilities they need in an interface with which they are comfortable.
But with Dynamics Client comes a mandate for Dynamics partners -- get up to
speed on SharePoint and develop a competency around it. Dynamics is blending
in the Microsoft stack just the way Redmond wants it to, and just being a "Dynamics
Partner" ultimately won't be enough to guarantee success.
Also new from Microsoft and getting tongues wagging is Sure Step, an implementation
methodology intended to make it easier to get Dynamics up and running. Microsoft
looks at Sure Step as a universal, ever-evolving aid for partners of all sizes
-- and it will be, although it's clearly aimed at smaller shops that don't have
well-developed methodologies of their own.
It wasn't just the announcements that had people talking today, though. Apparently
the Dynamics channel is not immune to the old problem of overcrowding. Put simply,
Microsoft is recruiting Dynamics partners at a time when some partners would
rather see fewer players in the field. Margins are getting tight, and some partners
are calling for Microsoft to rein in companies that bid for implementations
that they don't really have the expertise to pull off.
We'll explore all of those issues in greater detail and with input from Microsoft,
partners and others as the week goes on. Your week's newsletters will look like
this:
- Wednesday: Getting ready for Dynamics Client for Office and SharePoint
and the evolving Microsoft integration story.
- Thursday: Sure Step, implementation methodologies and the roles of
the little guys and the Global Systems Integrators.
- Friday: Channel crowding and a quick look ahead to Convergence 2008.
If you have any thoughts on any of these topics, send them to me at [email protected].
Posted by Lee Pender on March 13, 20070 comments
Here are a couple of pieces of good news: Microsoft has two new wrinkles in
its already excellent Partner Program, one an enhancement and one a brand-new
initiative.
For starters, Microsoft now includes hardware in version 3.0 of its popular
Buy Local Program, which helps system builders find customers
in their hometowns. Previous versions of the program offered customers free
software and Web services but stopped short of offering hardware.
The second program boost is the Influencer Revenue Program, through which partners that
sell to small- and medium-sized businesses but funnel their sales through Large
Account Resellers will get credit for their work. This new program will be a
boost for partners that sometimes have trouble catching Redmond's attention.
Posted by Lee Pender on March 09, 20070 comments