2007/07/30 Microsoft FUD Watch!


Well here is something that it seems to go on and on. Slashdot’s story of Microsoft FUD Watch:

rs232 writes “Not a week goes by when Microsoft doesn’t manufacture a little fear, uncertainty and doubt about something. Yesterday’s financial analyst conference was full of it … Our approach is simple: We look at who said what and why it’s FUD. Lots of companies engage in FUD, and we only single out Microsoft because we’re Microsoft Watch”

 Here is the Story on eweek Microsoft Watch:

 

Microsoft FUD Watch, 6-27-07

 

 Not a week goes by when Microsoft doesn’t manufacture a little fear, uncertainty and doubt about something. Yesterday’s financial analyst conference was full of it.

FUD Watch will be an ongoing addition to our blogging, this time delivered in simple post format. Some future FUD Watch updates could come in podcast or slide show format.

Our approach is simple: We look at who said what and why it’s FUD. Lots of companies engage in FUD, and we only single out Microsoft because we’re Microsoft Watch.

Ray Ozzie, chief software architect

What he said:

“We are the only company in the industry that has the breadth of reach from consumer to enterprises to understand and deliver and to take full advantage of the services opportunity in all of these markets. I believe we’re the only company with the platform DNA that’s necessarily to viably deliver this highly leveragable platform approach to services. And we’re certainly one of the few companies that has the financial capacity to capitalize on this sea change, this services transformation.”

Why is it FUD?
Ozzie spoke about Microsoft’s services strategy at last year’s financial analysts conference, too. Talk, talk, talk. Promises, promises. Microsoft hasn’t yet delivered one piece of its so-called services strategy. The boasting, coupled with yesterday’s presentation on the services framework, is a good way of making Microsoft out to be doing much more than it really is; right now that’s not much, because nothing new is on the market. Meanwhile, Google continues to make huge advertising and search gains. Microsoft is notorious for talking about what it’s going to do some day. Hey, what about today?

Robbie Bach, president, Entertainment & Devices division

What he said:

“What we find in the phone market is that people do want choice, because they use their phone for different things. Some people want an entertainment phone. Some people want a text-messaging e-mail phone. Some people want a phone where it’s easy to dial. People want different sets of capabilities, and a bunch of people want a full QWERTY keyboard. And so we have to be able to provide the operating system to the operators and to the handset manufacturers that delivers that diversity.”

Why is it FUD?
“Choice” is a code word for “choice, as long as it’s on a Microsoft platform.” When iPod sales started to skyrocket, Microsoft responded with a FUD campaign about choice—how many different devices and music services used Windows Media technologies. Microsoft clearly is cueing up for a choice FUD campaign against the iPhone. Regarding the iPhone, Microsoft delivers a two-FUD punch about choice and cost, dismissing, as CEO Steve Ballmer has done, the iPhone because of its $500 or $600 price.

Number of choices isn’t the same as what you choose. Remember those old Starkist commercials with Charlie the Tuna, where he had good taste but that didn’t mean he would taste good? Choices aren’t necessarily the same as choice. Tens of millions of people chose the iPod. In mobiles, the majority already has made its choice: Symbian OS-based cell phones. That said, lots of U.S. folks have chosen the iPhone—270,000 units in the first two days of sales.

Jeff Raikes, president, Business division

What he said:

“Historically, our [Enterprise Agreement] renewal rates have been about 2/3 to 3/4. And I know many of you wonder, well, with customers already licensed for the 2007 Office system, were they going to renew their Enterprise Agreement? We were very, very excited to see that because of the strength of our road map, the future that they see in what we’re investing in the Office system, the rate was greater than 90 percent in this last quarter.”

Why is it FUD?
Analysts from Forrester and Gartner have Microsoft customer data indicating sluggish Software Assurance renewals. Microsoft hasn’t publicly commented on SA renewals. The very positive Enterprise Agreement data is a misdirection. It draws attention to an exciting trend that suggests volume licensing contract renewals are rosy. But strong EA renewals don’t necessarily mean a similar trend for Software Assurance. Can you say non sequitur?

Kevin Turner, chief operating officer

What he said:

“By our math we eclipse the entire install base of Apple in the first five weeks that this product shipped. And that’s something again—this ecosystem that I just talked about—we’re not building an ecosystem that handles four, five, six devices and five or six printers. The opportunity is 2.1 million devices and thousands and thousands of printers. And that’s the importance of getting this product to mass and scale, which we believe is a huge competitive advantage for us.”

Why is it FUD?
Apple announced record earnings the day before Turner made this statement. The company shipped a record number of Macs with year-over-year unit growth of 20 percent and 42 percent, respectively, for desktops and notebooks. Microsoft’s estimate for second-calendar-quarter PC shipment growth, which is in line with those analyst projections, was between 11 and 13 percent; Mac shipments far exceed market growth.

Microsoft appears concerned about Apple, which brand is resurgent and which has made huge strides in some areas of entertainment and communications; however, Mac OS poses no immediate threat to Windows.

As for Turner’s ding: Wal-Mart typically takes in as much money in the first quarter as Target makes in one year. Is that a reason to pick one store over the other?

Thats what we should all be doing: Watching Microsoft!

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