Showing posts with label microsoft. Show all posts
Showing posts with label microsoft. Show all posts

Monday, January 14, 2008

Windows Vista: A reflection on software economics, part II


So it is obvious that my father will continue to use Windows Vista for several years. For people whose use of computer mostly involves document editing, email checking and occasional multimedia enjoyment, the insecurity of an "unproven" Operating System is enormous. The irony is that Linux is, in fact, already quite ready for this kind of usage. It might even not be so difficult to switch. Actually, Ubuntu Linux is even easier to install than Windows Vista is, and is even better in multiple usability areas.

But user perception of computer complexity is inherited from the first operating system they learn from. If Windows XP is already full of potential virus infection, then Linux should also have its share of problems. My father has been a businessman for whole his life, therefore I guess that his logic represent the logic of most business aware consumers. Hence, I don't really see year 2008 as a year of Linux Desktop. It's never about technology. It's about how human nature react to the unknown.

But this is not a blog post about Linux adoption. What aroused me to write this exploratory piece of thought is the fact that even my father, a typical end user of computer, would perceive Linux desktop as comparable or even superior to Windows. Now, this is not another X VS Y post. It's about the underling economy that produced products like Windows Vista and Linux Ubuntu.

I guess that even Microsoft itself can barely keep track of how much resources it has invested in its flagship operating system. Software is a very strange commodity: you can invest billions lines of code in return for nothing really valuable or usable. I remember an episode from 1st season of "The Apprentice", and it was about Mr. Trump wanting to establish a bottle water distribution business, the "Trump Ice". If you are rich enough and influential enough, you can probably establish any commodity business overnight and turn it into a moderate and sometimes even successful money machine.

But the rule for software business is completely different. People would expect the company that produced Windows 95, 98, 2000 and XP to produce a much more advanced product. Because software is not water. Water always tastes the same, but people need to drink water everyday. Operating System, on the other hand, needs to change, like Obama says. Without real incentive, there won't be enough upgrade, and without upgrade, Operating System business is not profitable. In essence, software business is really about sustainable innovation. Of course, you can always run a software company like it's some kind of commodity distribution company, using traditional business leverage and influence to sell your stuff. But it's not gonna work in long term.

Sunday, January 13, 2008

Windows Vista: A reflection on software economics, part I

Recently I have bought and installed one of beautiful Asus mini PC  for my father:
While the PC is actually very well designed, light and silent, the Operating System it pre-installs destroyed what little fun I had. Yes, it pre-installs Windows Vista Home Premium Edition. The Vista user interface look pretty, but the actual usability lags behind even my Ubuntu Linux Laptop.

Take printer support for example. Using my Ubuntu Laptop, I could just plug-in the USB port of our Epson Stylus printer and print documents pretty easily, but the same didn't happen on Windows Vista. I had to figure out different version of vendor supported driver before Vista stopped complaining. Also, Wi-fi wasn't working at all. For unknown reason, Vista just won't accept any Vendor supplied device driver... well, even Windows 98 was better than that.

So, in order to bring some Linux sense into my father's head, I tried to persuade him to install Ubuntu Linux. I showed him everything fancy and fun that I could show using Compiz Fusion, and he was indeed amazed. Then my father asked: if Linux is so good, then why no one is actually using it?

Because people are afraid of change, pa. He nod, and told me that he, too, is afraid of change.


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Thursday, November 01, 2007

Will fast-paced and relatively-efficient companies take over old corporate types?

If your dear readers have not yet read about it, you might want to do it now.

Apple, Google vs. Big Wireless

With Google and Apple both bidding for a wireless spectrum, strategies of those two companies are getting always clearer. One rule to make big bucks strategically: commoditize others in your value chain. This has never changed in the history of business evolution; what's different each time is approach.

Years ago, while Microsoft was climbing toward peak of its power, I thought that perhaps Microsoft had enough power to change the industry. It indeed had all capital and execution power to outplay all major vendor of IT value chain "one by one", but its tremendous success attracted too much fear. Microsoft wisely chose to stand aside and just happily be a very profitable software vendor; I can almost hear a sigh of relief from those worried industry giant. But now we have Google and Apple, companies ready to disrupt the industry again, and this time they won't settle easily.

Usually, by mature market we mean those market that are commoditized by fierce competition. In a sentence, more features are shipped with lowered price. The industry that Google and Apple are attempting to enter is, however, a mature market that doesn't show any of above mentioned signs. If Darwin was right, then what will happen next is pretty obvious. Either old corporate types would evolve to catch up, or face the fate of extinction.

One month ago, someone who worked in one big IB in Wall Street for 7 years told me: Google is just a company that does only web pages, nothing special about that. Hmm. I guess his opinion does not represent Wall Street, for Google stock price is well over 600+ now. And Apple worth more than IBM. Many would call Google and Apple as arrogant companies, but arrogance paired with capability is called pride; true arrogance is accompanied by ignorance. It would seem that ignorance is more a matter of heart instead of level of education.

Then what's next? I think the industry of air conditioner might be next mark. I have a friend who works at a very big Japanese company that produces air conditioner. If you spread their cost structure carefully, you will find out that 20-30% of revenue for each air conditioner sold goes to personal rebates, rebates that would end up in personal coffer of high executives in corruption speaking. Such situation just reflects a lack of fierce competition. We have wait until then for cheap and high quality air conditioners and refrigerators.


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