Thursday, December 11, 2008

The Innovator's Dilemma: Could Microsoft's Windows Be Disrupted?

More than a decade after IBM’s OS/2 lost the corporate desktop wars to Windows, Big Blue is back. And this time, IBM is armed with Canonical’s Ubuntu Linux and a $49 per-user price point. A new, virtualized Ubuntu-driven solution initially targets IBM’s financial services and government customers. Here are the details:

According to a press release, IBM, Virtual Bridges and Canonical have released “a Linux-desktop solution designed to drive significant savings compared with Microsoft-desktop software by amplifying Lotus collaboration software and Ubuntu to a larger user base through virtualization.” Translation: IBM is DECLARING WAR on "Windows AND Microsoft Office". And this time, Big Blue should be taken seriously. [1]

According to the IBM release:
“This solution runs open standards-based email, word processing, spreadsheets, unified communication, social networking and other software to any laptop, browser, or mobile device from a virtual desktop login on a Linux-based server configuration.
A virtual desktop looks like a traditional desktop but is not limited to a single physical computer. Instead, many virtual Linux desktops are hosted on a server. [2]

NO..., this won’t kill Microsoft. But the IBM move with an assist from Canonical and Virtual Bridges is a big-time attack on Windows and Office. It could inspire more vendors and customers to breakaway from Microsoft.
If Windows ends up being less important over time as applications become more OS agnostic where will Microsoft make its money? If Microsoft will be able to take its awesome reservoir of talent and free that talent from the constraints of its business model, then perhaps it can be the next example of a company that turned the forces of disruption to its advantage.[3]

So what do you think about the future of Windows and Microsoft Office? Will disruption play out in a way that "FAVORS" or "KILLS" the incumbent market leader?

References:
[1]
http://en.wikipedia.org/wiki/IBM
http://www.canonical.com/
http://vbridges.com/content/
[2]
http://www.workswithu.com/2008/12/04/ibm-canonical-declair-ubuntu-war-against-windows-office/
[3]
http://news.bbc.co.uk/2/hi/technology/7540282.stm

11 comments:

anuar said...

Microsoft Chief Executive Steve Ballmer had some noteworthy things to say about the future of Microsoft Office during his appearance at the company's business-intelligence industry conference in Seattle this morning. Responding to questions submitted by the audience, he said people should think about three main areas when considering the future of Microsoft Office when it comes to business-intelligence and information-technology infrastructure:

1) "Office does need to migrate to the world of software plus service. That doesn't mean Office needs to be completely rewritten as an AJAX app," he said, referring to the underlying technology commonly used for Web-based programs. He called that view "the misshapen thoughts of some pundits." He didn't elaborate on how Office might make the migration to work more in conjunction with online services.

2) User interface: "From an end-user perspective, we did a lot with the ribbon in this version of Office," Ballmer said. "You can expect to see us continue to both add new functionality, potentially new modules, and continue to work to make the core user interface even more approachable."

3) "Office as a participant in line-of-business processes." He cited areas including business intelligence, work flow, document management, and integration with line-of business applications. He also cited the need for integration with more server and business functionality.

During his main address, Ballmer outlined Microsoft's work on business intelligence technology in a variety of areas. "We're really trying to democratize the whole category," he said, describing the company's efforts to make key data more accessible to business decision makers.

Source From:(http://blog.seattlepi.nwsource.com/microsoft/archives/115236.asp)

Ayesha said...

I would say if there is a disruption played out,it may KILL the market leader because today,there are many competitors that would want to get into this business.

Interestingly, as part of its trustworthy computing drive, Microsoft recently acquired a Romanian anti-virus company. Microsoft says the acquisition is meant to boost the security of its software, while some critics say that the move could spell danger for other anti-virus companies, such as Norton, since Microsoft may be tempted to install its own anti-virus program in future versions of its software.

The next few years will be crucial in determining Microsoft's future. The company is now working on Longhorn, which will replace its flagship Windows operating system. The product is likely to hit the market towards the end of 2006. By that time, Linux will have stabilized as a player, moving away from its current growth rates of over 50 percent.

More important for Microsoft, the case with the EU will have been settled, leaving the company free to focus on the global marketplace.
Two years is a lifetime in the world of information technology.

By 2006, Microsoft's SPOT watches and Internet-wired microwave ovens may be commonplace. Or they may have been abandoned to the trash heap of bad ideas.

http://www.ameinfo.com/33384.html

However, only TIME tells whether Microsoft's Windows would be the largest software company or not after two years time.

Ma'ruf a.k.a Murphy said...

Thanks Ayesha for your wise comment!!!

Brad said...

Bro, as we all know, any company has to follow the environmental contingency factors to survive, briefly its better to say change or die. I’m not talking just about the Microsoft. Any company or service sector in order to survive, requires the wise improvement on its operations and monitor its market share among the people and gather the feed backs from market and change based on the requirements of the market. What may happen in this case is introduce of the nanotechnology and its implementation through the IT industry. Not just Microsoft but all over the IT service sectors need the great research and employee training to involve their operation with the new generation of the nanotechnology system. Perhaps the enhance of products in the aspect of size, quality of service, speed and capability to match with the existed resources must be prioritized among the executives and IT managers as the whole to offer the higher utilized service to the people and be all the time the dominance of the market.

Ceasar said...

The Microsoft-powered mobile phone is already out in the market. The telephone, called Smartphone, has all the trappings of the latest models: a high-resolution color screen that allows you to play games, check e-mail and images and also browse the Web. But those are now run-of-the-mill features. So what's special about Microsoft's newest gadget?

Smartphone comes loaded with Microsoft's Windows software, something that almost every potential mobile phone user is familiar with. Microsoft is betting that since people use Windows in their offices and homes, having the same software loaded on their mobile will attract buyers to go for Smartphones rather than the current 3G-capable phones that come with software that may not be compatible with Windows. The Smartphone has all the usual Microsoft products: Outlook Express, Internet Explorer, MSN Messenger and Windows Media Player.

Microsoft has already tied up with a number of handset manufacturers, including Samsung and Motorola, to roll out the Smartphone. However, Microsoft has run into opposition from market leader Nokia, which has chosen to use the C++ based Symbian Operating System for its own mobiles.

Several players - including Sony Ericsson, Samsung, Panasonic and Motorola - have also agreed to sell phones with Symbian software. As Nokia has over a third of the global mobile telephone market, it can definitely offer a serious challenge to Microsoft in the dominance of the mobile phone software market. DoCoMo, the main trend setter, has also shut out Microsoft in favour of Symbian OS and Linux.

The next few years will be crucial in determining Microsoft's future. The company is now working on Longhorn, which will replace its flagship Windows operating system. The product is likely to hit the market towards the end of 2006. By that time, Linux will have stabilized as a player, moving away from its current growth rates of over 50 percent.

More important for Microsoft, the case with the EU will have been settled, leaving the company free to focus on the global marketplace.
Two years is a lifetime in the world of information technology.

By 2006, Microsoft's SPOT watches and Internet-wired microwave ovens may be commonplace. Or they may have been abandoned to the trash heap of bad ideas. Will the world's largest software company, and the world's richest man, still be on top two years from now? Only time will tell.

http://www.ameinfo.com/33384.html

Anonymous said...

As a market leader, microsoft would constantly be challenged. Well, the war wages on. Microsoft has allied with their old friend Intel to make Network Computers. This follows Sun, Oracle, and Netscape's bid to do the same.Microsoft apart from developing fantastic softwares, has aggressive and efficient market strategies.Microsoft goes one way, then when somebody else decides to go another way, they go too. Perhaps Microsoft trusts the ideas of others more? But their embrace and extend policy covers this. No matter which way the industry leads, Microsoft is there shortly, taking in more money.No matter what its competitors develope,Microsoft has so much versatility that would enable her remain number one.And plus, microsoft is planning to migrate away fro the windows system and adopt the midori system,which is already sending waves across the info-tech world. Ibm and co can try to challenge, but beating them is something i don't see happening anytime soon.

Anonymous said...

Murphy, I think Microsoft will have a good comeback to IBM and Linux...They may probably introduce new software to challenge the challengers...I believe in Microsoft, it provides the best computer softwares!!!

eason said...

In my opinion, everything in this world could be disrupted. The important question is will disruption play out in a way that favors or kills the incumbent market leader?
The forces of disruption are at work in every industry. It can happen more quickly in some industries than others, but the potential is omnipresent. And as Clayton Christensen pointed out in his seminal book The Innovators' Dilemma, market leadership isn't just an insufficient buffer against disruption, in some cases it is the root cause of failure.

nella said...

Well considerations are versatile in nature in terms of competition or in terms of market share of microsoft or any organization.after reading your article, its true that innovation is challenging each and every competitors irrespective with own strengths and oppertunities of facing competitor face to face.its difficult to say that microsoft's windows will be disrupted in a sense that microsoft is also considered as the giant company where innovations are going on day and night.most probably microsoft is also watching what others doing and it will be the opportunity to perform better than what others do in that time when they both lanuch their innovation.so lets watch...who will win?.....well done.

Ameet said...

I am totally agree with the comments of Nimesh and Brad. As we all know Microsoft is one of the largest computer company and have a good reputation in the market. To survive in the market for any company is need to upgrade their products and Microsoft is doing this. IBM is a good competitor for Microsoft company but my believe Microsoft wont let go down their business.

Ee Lynn said...

Although my ignorance on this delicate topic is considered high but being a part of the mass crowd I would say the popularity of Microsoft Corporation is predominant and so is the usage compared to that of IBM. A market leader as strong as Microsoft must have the master plan to sustain its position in the market for years to come. However IBM is indeed one of the strongest competitors of Microsoft and Microsoft takes note of that. Yet I still do believe that IBM will need all hands on deck to topple Microsoft down. With the tagline "Microsoft: Software for the people-ready business" (http://www.marketingshift.com/2006/3/microsoft-vs-ibm.cfm) To my belief this time it is going to be a story revised of Microsoft's glory like back a decade ago.