Have you or your clients had any problems with Azure consumption overages?
It turns out that Microsoft is counting on customers to end up paying more for Azure than they may have planned to.
During Microsoft's last earnings call in January, CTO Amy Hood highlighted Azure consumption overages as a source of growth for the company.
"As a reminder, strong performance in larger, long-term Azure contracts, Azure consumption overages, and pay-as-you-go contracts will drive bookings growth and in-period revenue but will have a limited impact on unearned revenue," Hood said during the call.
There wasn't a direct dollar figure attached, and Hood's comment downplays the total a bit. But when you're a $110 billion revenue company, any amount of money that's worth bringing up in a half-hour call with investors qualifies as a significant sum.
We'd like to hear your stories about Azure consumption overages. How did the overage happen in your or your customer's case? How much did it cost? How did you address the problem and have you been able to contain it since? Drop us a note at email@example.com.
Posted by Scott Bekker on April 11, 2019 at 10:56 AM0 comments
Many organizations are under some risky misconceptions when it comes to the compliance and security of their Office 365 environments.
That's the upshot of a new 37-page report by CollabTalk LLC and the Marriott School of Business at Brigham Young University titled "Organizational Security & Compliance Practices in Office 365." The report, released last week, was commissioned by Spanning Cloud Apps, RecordPoint, tyGraph, Rencore and Microsoft. (RCPmag.com sister site Redmondmag.com is an in-kind sponsor of the research.) It's based on surveys of more than 270 IT professionals, executives and managers across 19 industries, and includes commentary from several Microsoft Most Valuable Professionals (MVPs) and experts.
In short, the report found that those who believe Microsoft is doing a good job with security and compliance may not be taking the baseline steps required to ensure their environments are safe and in compliance -- in other words, they may not be doing the basic things that Microsoft's tools rely on to help ensure protection. And those who don't believe Microsoft protections are enough tended not to be aware of all the steps Microsoft takes on their behalf.
Specifically, the report said that:
- Of those that thought Microsoft security was sufficient, 80% of respondents have either not run security and compliance checks, or do not know if they have.
- Of those who did not think the current security protection offered by Microsoft was sufficient, 57% of respondents were not aware of Microsoft's security division.
- Of those who did not think the current security protection offered by Microsoft was sufficient, 71% of respondents were not aware of Microsoft's overall security and compliance strategy.
One of the MVP commenters, Matthew McDermott, lays responsibility for this gap squarely on the organizations, which are themselves struggling to keep abreast of the many administrative tools, settings and options within Office 365 components and dealing with hybrid environments that involve many more platforms than just Office 365.
"The gap presented in this research is not from a lack of features, vision or direction from Microsoft; the gap comes from within organizations," said McDermott, Spanning's principal technical marketing engineer and the Conference Chair for Office & SharePoint Live!, an event run by RCPmag.com's parent company, in a statement about the report. "Companies must invest in personnel and tools to ensure compliance and secure systems. It's not enough, with today's threat landscape, to be reactive. You need to be proactive in your approach to keeping your assets and customer data safe and secure."
Another of the MVPs, Erica Toelle, product evangelist at RecordPoint, portrayed the gap as a painful step in a journey toward a better overall situation on security and compliance. "Before the cloud, people managed security and compliance all on their own. Outsourcing this to Microsoft is a good idea. Microsoft has more budget to hire the industry-leaders, so they are more secure. People don't perceive this because their understanding is immature. They don't know how much Microsoft is protecting them or not. They also don't really have complete control over the situation," Toelle stated in the report's conclusion.
Recommendations in the report include approaching security and compliance more holistically, identifying feature gaps and creating an operational strategy for addressing them, conducting inventory audits, creating training plans, developing governance and change management programs and committees, and setting up pilot programs to understand the latest features and capabilities of Office 365.
The report is available from the Spanning Web site here.
Posted by Scott Bekker on April 01, 2019 at 10:55 AM0 comments
Microsoft on Thursday released previews for two new cloud-based security services in advance of the RSA Conference 2019 next week.
Microsoft Azure Sentinel is a native security information and event management (SIEM) tool that runs in Microsoft's public cloud. Microsoft Threat Experts is a new "managed threat hunting service" within Windows Defender Advanced Threat Protection (ATP).
Ann Johnson, corporate vice president for Cybersecurity Solutions at Microsoft, touted Azure Sentinel as "the first cloud-native SIEM within a major cloud platform" during a media briefing on Wednesday.
Johnson said Sentinel was built from scratch with the help of industry partners as a modern security tool to collect, parse and present security data from users, devices, applications and infrastructure, both on-premises and in the cloud. Like many of Microsoft's current initiatives, key selling points are the flexible and scalable nature of having the solution running in the cloud and the ability to leverage Microsoft's artificial intelligence (AI) infrastructure and expertise.
At the same time, Microsoft also championed the tool's potential to cut both administrative burdens of on-premises SIEM approaches and the time wasted on inconsequential SIEM alerts.
"I don't need to have people maintaining infrastructure, patching, dealing with upgrades, things like that. I've just got my people focused on finding threats," said Eric Doerr, general manager of the Microsoft Security Response Center (MSRC), in a video about the MSRC's dogfooding of Azure Sentinel.
Johnson put the alerts in the context of the IT security skills gap. "The cybersecurity landscape is at a point where the attackers do have an advantage due to a lack of skilled cyberdefenders. With an estimated shortfall of over 3 million security professionals by 2021, there simply are not enough defenders to keep pace with the growing profit opportunity that cybercrime offers," she said. "Existing defenders are overwhelmed by threats and alerts. They often spend their days chasing down false alarms instead of doing what they do best, investigating and solving complex cases."
Microsoft contends that its machine learning (ML) algorithms and knowledge from handling trillions of signals each day inform the Sentinel tool.
Pricing has not been set for Azure Sentinel. The preview is free and licensed Office 365 customers will be able to import data into the tool for free as an ongoing feature once the service is generally available.
The other preview, Threat Experts, is a high-end service for security operations centers. The intent is again to use Microsoft's expertise, AI/ML resources and massive global signals collection to provide context around security alerts that could help organizations find, prioritize and respond to security problems. The service consists of attack notifications that are supposed to be tailored to an organization's needs and the availability of Microsoft experts who can be engaged on demand.
"Not every organization has access to the level of human expertise they need. Microsoft is now offering our security experts as an extension of our customers teams," Johnson said. "Experts provide the insights our customers need to get additional clarification on alerts, including root cause or scope of an incident, suspicious machine behavior and next steps if faced with an advanced attacker. They can also help determine risk and protection regarding threat actors campaigns or emerging attacker techniques."
Although the new Threat Experts service is also in preview, customers will already need to have Windows Defender ATP to access it. The Windows Defender ATP platform is a toolbox of prevention, detection, investigation and response tools for enterprises. Threat Experts joins elements like attack surface reduction, endpoint detection and response, automated investigation and remediation, Secure Score and advanced hunting tools. Windows Defender ATP is available only in Microsoft's most expensive licensing packages, such as Windows 10 Enterprise E5 and Microsoft 365 E5.
Posted by Scott Bekker on February 28, 2019 at 11:56 AM0 comments
A report this week from subscription technology site The Information suggests that Microsoft and VMware are drafting a deal that would make it much easier for enterprise customers to move VMware workloads to the Azure public cloud.
The historical rivals are jointly working on the integration and could be within weeks of an announcement, according to article author Kevin McLaughlin, who attributed the information to "a person with direct knowledge of the project and six others who have been briefed on it."
The arrangement reportedly involves VMware's server virtualization software. Neither Microsoft nor VMware are commenting. If true, it represents another example of Microsoft setting aside long-running competitive fights -- in this case, between VMware hypervisor technology and Microsoft's own Hyper-V offerings -- in favor of attracting increased workloads to the Azure public cloud and positioning Microsoft better for the more strategic fight with its larger public cloud rival, Amazon Web Services (AWS).
VMware already has a similar arrangement with AWS.
"While it is already possible to move computing jobs running on VMware inside private data centers to Azure, it requires extensive technical work. The new software Microsoft and VMware are developing aims to significantly speed up this process, making it cheaper for them to accomplish," the article by Kevin McLaughlin stated.
The deal follows a controversial move by Microsoft in November 2017 to build software on its own to allow VMware computing jobs to run on Azure, a move that VMware challenged at the time.
One interesting personnel detail in the article that supports the idea that the companies are working together is the presence of Ray Blanchard, identified as the former VMware executive in charge of the partnership with AWS. Blanchard joined Microsoft a year ago.
Posted by Scott Bekker on February 27, 2019 at 9:12 AM0 comments
One of the most dynamic International Association of Microsoft Channel Partners (IAMCP) chapters in the United States will hold a party this fall to celebrate its tenth anniversary.
The SoCal IAMCP chapter will hold a tenth anniversary party in Irvine, Calif., on Oct. 24, a Thursday. Formed 10 years ago this July with Justin Slagle as its original president, the Southern California chapter had strong engagement and support from Microsoft from the beginning.
As a senior partner development manager at Microsoft, Slagle is helping organize the 10-year celebration with a heavy hitting cast of Microsoft speakers. In fact, the SoCal IAMCP is billing the event as a way for members and guests to get some of the benefits of Microsoft Inspire without the $2,000 price tag of the annual worldwide partner conference in Las Vegas.
Guest speakers will include Microsoft Channel Chief Gavriella Schuster; Brent Combest, a U.S. general manager for Microsoft; Beth Cavanaugh, Microsoft's national partner sales director; SoCal IAMCP's current president, Eddie Bader; and some of the chapter's past presidents, a list that includes Slagle, Ro Kolakowski, David Gersten, Dave Seibert and Eric Klauss.
The event will run most of the day with invite-only sessions from 10 a.m.-2 p.m., keynote sessions from 2 p.m.-5 p.m. and a party from 5 p.m.-8 p.m.
Tickets start at $249, and registration fees will go toward buying a car to be raffled off at the party. Details are available at https://iamcpparty.com/.
Posted by Scott Bekker on February 19, 2019 at 12:05 PM0 comments
This week brought the next logical step in the evolution of the Azure Stack with the unveiling of a ruggedized version from Dell EMC.
From the beginning, Microsoft's vision for the Azure Stack involved situations where you're getting your hands dirty.
The Azure Stack is supposed to bring much of the power of Azure cloud computing out to the edge, where users can run full artificial intelligence (AI) or other processing-intensive workloads without waiting to connect to the cloud.
Use cases cited by Microsoft CEO Satya Nadella in 2018 included early adopter Chevron deploying Azure Stack on oil rigs, for example. A demo video last year featured Scott Montgomery, a senior industry solutions manager at Microsoft, driving around in a one-ton Chevrolet Suburban decorated with the Microsoft logo and loaded with an Azure Stack in the cargo area. The point was to highlight disaster relief scenarios, remote power line inspections with a drone and other scenarios.
Yet the first implementations of Azure Stack, which is sold as a complete hardware and software solution by a handful of OEM partners, were primarily designed for the standard datacenter, which is an exceptionally clean room in most cases. That was a good place to start as many of the less photogenic implementations of Azure Stack call for data processing at a branch office or a remote facility that doesn't require the server kit to be mobile once it's installed.
Later this quarter, Dell EMC will ship a ruggedized version dubbed the Dell EMC Tactical Microsoft Azure Stack.
"Tactical Azure Stack is the first and only ruggedized Azure Stack product available for tactical edge deployments," wrote Paul Galjan, senior director of Microsoft Hybrid Cloud at Dell EMC, in a blog post announcing the system.
The Azure Stack is a two-person lift at 380 pounds. That weight is light enough to qualify the system as fully mobile or highly portable given that it can be moved by two people. It's also a reasonable weight considering the 41.5" high and 25.6" deep box includes all the servers, storage and networking gear needed to run the Azure software. There's an option to use additional "core" transit cases to go up to the full node limits of Azure Stack.
"The Tactical Microsoft Azure Stack unlocks a wide variety of use cases for government, military, energy and mining applications," Galjan said. "It can also be ideal in forward deployments and mobile environments in marine, aerospace and other conditions that require MIL-STD 810G compliance."
Also this week, Microsoft, which integrated the Azure Stack with the Azure Government cloud last year, unveiled new Azure Data Box products for Azure Government. The on-premises appliances include the Azure Data Box Edge, available now in preview; the Azure Data Box Gateway and Azure Data Box, both available in March; and the Azure Data Box Heavy, set for availability in the middle of the year.
Posted by Scott Bekker on February 06, 2019 at 11:56 AM0 comments
Microsoft is connecting its most significant-breadth partner business model with a strategic technology initiative in a way that could unlock truly scalable partner-to-partner (P2P) business interaction within its giant partner ecosystem for the first time.
"Today, we're excited to announce that by connecting our marketplace to our cloud solution provider companies, through our channel, we're enabling ISVs that publish their solutions to our marketplace to have unfettered access to our entire ecosystem directly," said Gavriella Schuster, corporate vice president of Microsoft One Commercial Partner (OCP), during a media briefing on Tuesday.
Cloud solution provider, or CSP, is Microsoft's most important broad-based partnering program. Under the program, partners sell mostly Office 365, but also other Software as a Service (SaaS), Azure cloud and other products as part of their own service bundles, giving them better control over margins and the ability to put their own vertical or specialized service wrappers around Microsoft offerings.
The marketplaces involved in the announcement are AppSource and the Azure Marketplace, two Microsoft marketplaces that currently include more than 8,000 solutions from more than 4,000 ISVs and other partners.
In the past, CSPs could search through AppSource or the Azure Marketplace for complementary solutions, but the process was manual and then would require reaching out to an ISV to figure out how to enter a reselling relationship.
When the feature that Schuster announced is implemented in March, an ISV entering an application into AppSource or the Azure Marketplace will, with one click, be able to enable all CSPs in the Microsoft ecosystem to resell the product, according to Microsoft. The marketplaces also allow repeatable service packages from solution providers, not just applications by ISVs. Those solutions will also work with the new P2P system.
"One click will give a partner's solution exposure through tens of thousands of Microsoft cloud partner resellers and about 17 million partner sellers who work for them. Plus, their solution will be searchable by more than 75 million customers and thousands of Microsoft sellers," Schuster said. "By transacting through our Cloud Solution Provider channel, partners will be able to take their managed service offerings and package them with other first- and third-party solutions in the marketplace to create specialized offerings for their customer."
The ability for partners to open their solutions to CSPs is only one element of the near-term changes coming to the marketplace. Other elements include simplifying the experience, improving the search experience for both partners and users so that natural-language queries are more likely to return relevant results, and a private marketplace option for enterprises. Schuster said those enterprise-ready private marketplaces will also make it possible for partners to customize terms for any specific customer.
Additionally, Microsoft will be engaging in a parallel push to develop the Dynamics 365 and Power platform ISV ecosystems. "We recognize that technology is only part of what makes ISVs successful, it is important that the business side is equally as robust," said Steven Guggenheimer, corporate vice president for ISV & AI engagement at Microsoft, in a blog post Tuesday. "Being able to publish once to merchandize across storefronts to all Microsoft's customers, sellers and partners will open new growth opportunities to most ISVs."
In an interview Tuesday, Schuster said Microsoft has been working for the last 18 months to create a core commerce back-end that will support multiple storefronts, such as Azure Marketplace and AppSource.
"What the single store does is it enables our partners to have the one place they come in, get their applications certified, get it into the marketplace, and then we will promote it through multiple storefronts, whether that's our own or even syndicated through other partnerships that we have. It's about helping our partners with solutions and services get their solutions more discoverable," she said.
Schuster said the P2P work builds on what Microsoft started internally with the OCP Catalog, which was an initiative for Microsoft's internal field sellers to find relevant partner solutions that they could take to customers. "We refined how do you search and how do you label and how do you put metadata across those solutions, and then that's what we're using as our best practice into the marketplace," she said.
The other real value, after broad market exposure, comes in automating the process of provisioning and invoicing for ISVs and other solution partners.
Schuster, who has been talking about creating back-end engines for P2P connections at a strategic level for several years, calls the marketplace-to-CSP connection a game-changer. "This is a massive investment for the company that underpins our whole partner strategy," she said.
Microsoft has over-promised before on marketplace initiatives, but this move represents a different type of effort. It creates a back-end infrastructure to support P2P connections on top of a Microsoft infrastructure. If the implementation is strong (a big "if" at this stage), Microsoft wins when its services sell as part of a bundle; ISVs win as their solutions get wider attention from other partners, customers and Microsoft sellers; and CSPs win by being able to expand their service packages with much less friction.
Posted by Scott Bekker on February 05, 2019 at 1:11 PM0 comments
Parts of the Microsoft Dynamics business are tilting overwhelmingly online.
Microsoft Chief Financial Officer Amy Hood discussed
the company's progress with its business applications suite during a call with financial analysts on Wednesday. Overall the Dynamics business grew 17% in Microsoft's fiscal second quarter, which ran from Oct. 1, 2018 through Dec. 31, 2018.
The real momentum is happening on the online side. Dynamics 365, a comprehensive cloud version of Dynamics that was launched in late 2016, saw revenue growth of 51% -- triple the rate of the Dynamics business overall.
Hood provided one stunning stat within that Dynamics 365 product set. "This quarter, more than nine out of every 10 new Dynamics CRM customers chose our cloud offering," Hood said.
Microsoft's CRM product has long been the cloudiest of the business applications. Dynamics CRM Online was one of Microsoft's first and most successful software as a service (SaaS) offerings. Within the business applications segment, customers have been much more open to putting their customer relationship management solutions in the cloud than they have been with business critical enterprise resource planning (ERP) applications.
Yet ratios like those that Microsoft is seeing with CRM carry an inexorable momentum. With more than 90% of new customers choosing the online version, Microsoft will need to dedicate more and more of its development and support resources to the cloud version. That provides another argument for partners with customers wanting to stay on-prem that it will only be harder and harder to get new features and timely support.
Posted by Scott Bekker on January 31, 2019 at 11:58 AM0 comments
Investors weren't thrilled with Microsoft's second quarter financial results, but several partner observers mostly shrugged off the negative parts and applauded Microsoft's performance in strategic areas.
"An initial look at the numbers indicates the [failure to meet analyst expectations] was a miss on the personal computing side, though growth still looks to be strong in the productivity cloud and infrastructure cloud offerings," said Mark Sami, vice president of Microsoft and Cloud Solutions at SPR, a Chicago-based Microsoft managed partner specializing in digital transformation projects.
Of the market reaction that pushed MSFT down by 3% in after-hours trading and continued to trade lower on Thursday, Sami said, "This seems to be an overreaction, as the miss on the desktop side is minimal and many Microsoft users will have to upgrade their Windows 7 environments that will be out of support after this year. This is going to drive a lot of revenue to this sector of the business as well as potentially boost the productivity cloud numbers because of the new way licenses are packaged."
Microsoft on Wednesday reported revenue for the quarter ended Dec. 31 was $32.47 billion, a gain of 12% over the year-ago-period, and below analyst expectations of $32.51 billion. Diluted earnings per share were slightly higher than what Wall Street expected, coming in at $1.10 non-GAAP against predictions of $1.09.
Surprisingly strong quarterly performances by Apple and Facebook seems to have made Microsoft look worse to the market by comparison.
Among Microsoft's three overarching business segments, growth was strongest in Intelligent Cloud, followed by Productivity and Business Processes with More Personal Computing bringing up the rear. Intelligent Cloud revenues rose 20% in the quarter to $9.4 billion. Productivity and Business Processes was up 13% to $10.1 billion, and More Personal Computing delivered single digit growth of 7% to $13 billion.
In a statement, Chief Financial Officer Amy Hood drew attention to revenue growth in Microsoft's commercial cloud category, which crosses boundaries between the business segments. "Our solid execution delivered another strong quarter, with commercial cloud revenue growing 48% year-over-year to $9.0 billion," Hood said.
In a quarter when some infrastructure players like Intel have struggled, Microsoft's best data point came in its Azure line of cloud infrastructure products. The Azure business, which competes against market leader Amazon Web Services and other players including Google Cloud Platform, increased in the quarter by 76%. The growth percentage is sequentially flat for Microsoft, but the high-double-digit result still demonstrates strong momentum.
The numbers also suggest that the massive acquisition of LinkedIn is going well. Revenues for LinkedIn are up 29%, and sessions growth for the work-based social media platform is up by 30%.
A new batch of Surface hardware devices unveiled last October provided a bounce in Surface revenues for the quarter of 39%. Those devices that were all shipping for the holidays included the Surface Pro 6, Surface Laptop 2, Surface Studio 2 and Surface Headphones.
Other highlights included 24% growth in server products, a category that includes and was mostly driven by the Azure performance; and 13% growth in Windows commercial products and cloud services.
The biggest headwind by far in the quarterly results related to desktop Windows, once the crown jewel of the company and now something of a drag as the company transitions to cloud. Windows OEM revenues dropped 5% in Microsoft's second quarter compared to the same October to December period in 2017. Also weak was Office Consumer products and cloud services, which grew, but only by 1%.
Hunter Willis, a product marketing manager at AvePoint, a major SharePoint partner based in Jersey City, N.J., was encouraged by Microsoft's progress in the quarter.
"It's no surprise that Microsoft had another successful quarter after grabbing roughly 15 percent of the cloud market last quarter from IBM, Google and Alibaba. Last year alone, Microsoft made 15 acquisitions – headlined by its purchase of open-source software platform GitHub – which helped the company continue to expand into new growth areas. I expect to see Microsoft's intelligent cloud continue to dominate the market, especially given that its balance of IaaS, PaaS, CRM and Office 365 services have created the complete cloud story for its customers, enabling Microsoft and its cloud business to continue to grow at such a rapid rate," Willis said in an email.
Sharing the view that Microsoft's quarterly results look especially strong on the cloud side is Ryan Duguid, chief evangelist at Nintex, a process management and automation specialist and close Microsoft partner.
"Microsoft has certainly enjoyed an impressive run over the last 5+ years, but to be honest, I think they're only just getting warmed up," Duguid said in an email statement. "Having successfully transitioned away from a dependency on Windows and a perpetual license model across all core franchises, Microsoft has now positioned itself as the dominant player in the cloud, both in terms of core compute power with Azure as well as application delivery through Office 365."
Posted by Scott Bekker on January 31, 2019 at 12:07 PM0 comments
Microsoft's co-sell program that incentivizes the Microsoft field to sell partner solutions is on pace to exceed last year's total by a wide margin.
Microsoft CEO Satya Nadella provided an update on the program during an earnings call with investors.
"The co-sell program we introduced 18 months ago has already generated $8 billion in contracted partner revenue," Nadella said Wednesday. Nadella offered the statistic as part of a broader comment about the way Microsoft is partnering with companies across the industry to build their digital capabilities, and how that effort creates new opportunities for both customers and the partner ecosystem.
The co-sell program is designed to motivate Microsoft field sellers to push partner solutions by setting aside Microsoft funding to pay those Microsoft sellers 10% of the total value of the partner solution. Microsoft channel chief Gavriella Schuster said at the Microsoft Inspire show at the start of the company's fiscal year in July that the co-sell funding was intended to run through June 2019.
The $8 billion milestone that Nadella touted is a significant increase from the last time Microsoft talked about the program in July 2018. At that time, Schuster said the program had landed $5 billion in partner sales.
Nadella's updated figures suggest that Microsoft's field sold an additional $3 billion from July to December of 2018. Given that Microsoft had clocked $1 billion in sales when it was a pilot program prior to its public launch in July 2017, the co-sell effort is well on its way to surpassing the full fiscal year total of $4 billion from 2018.
With the all-out effort that the Microsoft field usually engages in during Microsoft's fourth quarter (April-June), expect the company to have some interesting co-sell figures to report at Inspire this July.
Posted by Scott Bekker on January 31, 2019 at 11:58 AM0 comments
The International Association of Microsoft Channel Partners (IAMCP) on Wednesday identified its worldwide leadership team for 2019.
The IAMCP exists to foster business networking opportunities for Microsoft partners and boasts more than 100 chapters in 47 countries. The 2019 Board of Directors consists of 10 officers drawn from IAMCP's three regions -- Europe, Middle East and Africa (EMEA), Asia/Pacific (APAC) and Canada, Latin America and the United States (Americas).
Leading the organization is Sergio Baptista of EMEA as president, a role that rotates among the IAMCP's three regions. Elected vice president is Prashanth Subramanian of APAC.
Serving in other designated board roles are Secretary Sarika Malhotra, APAC; Treasurer Tom Major, Americas; and past president Jon Sastre, Americas.
Members at large include Andrea Pescino, EMEA, Bo Bauhn, EMEA, Neeraj Gargi, APAC, David Gersten, Americas, and John Zarei, Americas.
Retiring from the board are Jeff Goldstein, Ro Kolakowski, Javier Abreu O´Neill, Jacobo Senior, Ricardo Escorihuela, Corinne Sharp and Gail Mercer-MacKay.
The new board represents a streamlining from the 2018 board. That board voted in December to reorganize itself from five regions to the current three. The 2018 board had 16 members and four advisory board members.
Posted by Scott Bekker on January 17, 2019 at 9:15 AM0 comments
The December 2018 market share numbers are in from Net Applications and they reveal a major milestone for the IT industry. Windows 10 has a larger market share than any other desktop operating system version, including the previous king of all desktop OS versions, Windows 7. It's a narrow but solid lead, with Windows 10 at 39.22% and Windows 7 at 36.9%. It brings Windows 10 on top for both of the most frequently cited platform trackers (Windows 10 took the lead with Statcounter in January 2018). Windows 10's now undisputed lead in both major trackers tells us several things about the state of IT infrastructure.
First, it tells us that Microsoft still has enough weight in the industry to dictate an operating system shift. That seems like a fairly obvious point, but Microsoft did ask a lot with Windows 10, especially with the new and confusing update model. Things Microsoft had going for it included the inertia of an industry accustomed to moving to the next Windows OS every few years and that limited-time free upgrade offer. Even with those advantages, success wasn't a foregone conclusion. Uptake of Windows 10 has been slower and at a smaller scale than Microsoft had publicly hoped for. Three-and-a-half years after launching, Windows 10 is on about 700 million machines. That falls short of the 1 billion systems Microsoft had predicted Windows 10 would power in slightly less time, but it's still impressive. What's also impressive is that Microsoft managed that progress at the same time that it has been distancing itself from its long-held identity as a Windows company. Of course, there's also the stick. Windows 7 hits the end of extended support one year from now. Look for Windows 10's share to ratchet up steadily as companies and consumers race to meet the support deadline, or at least convert as shortly after it passes as they can.
Getting Windows 10 to the top spot underscores something else -- Microsoft continues to dominate an important piece of technology real estate. The PC is certainly not the prize that it was 10 years ago. Credit for that goes to the smartphone, the mobile app ecosystem, constantly improving wireless data coverage and speeds and cloud-based applications, among other things. Yet the PC is still the platform where most day-to-day productive work gets done. The smartphone eats into it, the tablet takes a piece, but for the most part the form factors are finding their niches and the PC fills a critical one. Tasks at which the PC remains the ideal platform include working with words, numbers or code on a big screen with a full-size keyboard, multitasking, copying and pasting across applications and storing files for offline access. Desktops and laptops are still a massive market, remember that 700 million figure above? Predictions that Linux would take off on the PC remain largely unfulfilled. Mac continues to gain a few percentage points here and there, but there's been nothing like a large drop off in Windows usage.
What may be most important about this latest desktop share milestone, though, is that it could be the last shift of this type. Windows operating system migrations have been a staple project in the IT industry for decades -- Windows 95 to Windows 98, Windows 98 to Windows 2000, Windows 98 to Windows XP and on and on and on. The project has come up like clockwork every three or four years. Windows 10 was famously called "the last version of Windows" by Microsoft developer evangelist Jerry Nixon. A better way to think of it may be as the "forever version of Windows." The idea with Windows 10 is it is constantly updated, so versions go out of support every 18 months, but keeping current with the updates will push those support dates back indefinitely. Migrations for the most part will be due to hardware refresh cycles, not Microsoft support deadlines.
Admittedly, it's more complicated than that with the Long Term Servicing Channel and Software Assurance timelines and other licensing and support wrinkles. There will be kinks that arise with the updates and the rings where application compatibility will be an issue, but they'll largely be one-off situations. A relic, thankfully, is the industry-wide, all-hands-on-deck situations of the old Windows update cycle with ISVs and OEMs all creating new versions of their PCs, applications and drivers, and partners and IT departments testing them all out at once and trying to get them fixed in the first service pack. Another upside could be a more secure Internet, where aging security flaws can't continuously be exploited because connected consumer machines are automatically updated for free, reducing everyone's risk.
For the 39.22% or so of users at home and in organizations who have migrated to the forever OS, congratulations. All of that migration drama is behind you. If you're in the process of a migration project or planning one, take heart -- this should be the last of its kind.
A lot of challenging IT projects remain. The forced update from one soon-to-be-unsupported OS to the next one with its own ticking support clock won't be one of them. Instead, partners and IT departments can focus on higher value efforts like server migrations to the cloud, digital transformation projects and creating great business applications.
The end of the great Windows migration is in sight. In the wake of that mainstay IT project is a more stable, more secure PC with a smaller, but still important, role.
Posted by Scott Bekker on January 07, 2019 at 9:50 AM0 comments