Will Microsoft Corp (MSFT) become more like Apple Computer Inc. (AAPL) as time goes by? Microsoft for long has copied the UI look & feel of Apple's OS but now it seems to be learning new lessons from its fast footed competitor -- device driven markets.
Consumers today are favoring small dedicated devices for Games, Communication, Computing, Music, Imaging etc. The PC has a part in this new digital life-style yet the growth is clearly in devices.
As Microsoft's desktop software and OS model is facing slowing growth and challenges from Open Source, and Ad Revenue Model companies like Google and Yahoo!; Microsoft is increasingly looking for new growth opportunities. As noted by Knowledge @ Wharton devices seem to be just that:
The history of the computer industry is littered with the remains of companies that tried to integrate hardware, software and services, but lost out to more focused competitors...But with newer, specialized platforms like mobile devices and home media centers, there may be more benefits to integration.
What could emerge is a new Microsoft geared more toward services and integrating various devices littering the digital living room, including PCs, game machines, digital set-top boxes, digital cameras and music players. In this vision, Microsoft's software and Internet services become the glue connecting a host of devices. "Everything today directly or indirectly now also connects to Internet-based services," said Ray Ozzie, Microsoft's chief software architect, at the company's July 27 financial analyst meeting.
...Given Microsoft's recent activities, it seems clear that the company is anticipating a time when Windows yields to...the "webtop".
...integration becomes more important since software that can't connect with other devices can become irrelevant. That means that Microsoft has to become more of a "glue" company focusing on middleware, or software that is used to connect disparate applications.
Indeed, at the analyst meeting, Ozzie emphasized Microsoft's role in connecting and integrating multiple devices...Instead of trying to put the PC operating system everywhere, the new challenge becomes synchronizing everything.
...The problem...is that it's hard to be seen as a glue company when you're seen as a Windows company. Microsoft can't just jam Windows into everything as the glue. It has to be nimble and have a different approach
....however...the ability to connect various platforms may be within Microsoft's reach. "Microsoft knows a thing or two about integrating platforms. Even though it only controlled the operating system, it was able to dictate the structure of the PC ecosystem for years. Making devices and services work together is an immense challenge, which no one, even Apple, has fully solved. Microsoft at least has the benefit of many years of working to make an astounding array of hardware and software co-exist with Windows."
