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