Microsoft chairman and chief software architect Bill Gates in San Francisco “quiet” to give us a surprise, Microsoft rolled out Windows Live and Office Live. This means that Microsoft two star product Windows and Office tap into online service market, this is five years Microsoft Internet strategy of the biggest change.
Microsoft online services into are due to Google and yahoo competitor pressure forced to reform, thus self subversion? Back to the existing or Windows and Office product differentiation, to satisfy the consumer of differentiated demand, and thereby more grow your own power?
Deal with Google and yahoo and other rivals
It is reported, Windows Live through www.live.com website to users will provide free E-mail, web logs, instant messaging services, and Office Live will include MSN instant messaging, email, and other functions.
To this, actually, some people think that Google and other competitor behavior prompted the Microsoft take this strategy shift.
Indeed, in the online advertising market rapid development today, as the operating system Microsoft dominates but not from the rapid development of the market for the interests of the how much, on the contrary, it is Google and yahoo rivals such as thanks to the rapid development of online advertising market, and the constant development and expansion.
And in such as Google rival expands the development at the same time, Google and other companies based on the Internet started to launch a series of such as Google Earth, Gmail, Google Talk of free service, as well as Writely. Com text editing service, Numsum. Com form editing service, Flickr. Com pictures management service, the differentiation from Microsoft Windows and Office users buy, and damages the main profit source Microsoft. Most important, Google the number one enemy of Microsoft are growing in Numbers, the most likely come out with new operating system against Microsoft’s Windows operating system, thus become the era of network new operating system overlords.
So all of Microsoft’s business model has had a huge impact. Like Salesforce. Com chief executive Marc Benioff said: “Google, yahoo and Salesforce has to Microsoft launched a fierce attack, Microsoft have to remake himself, or have no other choice. And competitors, Microsoft in the development and launch of new service on speed has fallen.” So this time Microsoft Windows Live and initiative launched Office Live, provide free Windows and Office basic function service,
On one hand, can be a very good deal with Google and yahoo competitor the pressure of competition, after all of Microsoft’s Windows and Office to the basic function of your competitors provide the services,
On the other hand, can expand Microsoft’s advertising revenue, as Microsoft chief technical long Ray-o ’shea (Ray Ozzie) said: “” seamless” is the key to Microsoft Live strategy. With software that is “the concept of” service promotion, we have the opportunity to promote the company through the network advertising revenue growth. The Internet is a platform, our goal is to provide our customers a whole service platform.”
Product differentiation
According to Microsoft rolled out Windows Live and Office Live plan shows, Microsoft will put the MSN departments for what we are familiar with many of the products to integration, called Windows Live into the new brand. The move will integrate when Microsoft actually information service, instead of the new email service Hotmail, network security, material (data) storage and other functions, and the function in all can get online.
Microsoft will launch three levels of service, the first is the advertising support of free services; The second is to provide more features low subscription fee; The third is the price is higher, and includes all of the senior service function.
It shows that Microsoft’s Windows Live and Office Live, not completely free service, just free services to provide the necessary service, this part of the losses will be the advertising to make up. And more functions will pay.
This means that Microsoft has not completely change the Windows and Office software by selling to the profit business model, just the through the launched by advertising in support of the free version to crack down on competitors, and senior version is still want to charge.
In general is that to the existing Windows and Office product differentiation, to satisfy the consumer of differentiated demand. The advertising support of free version won’t replace the existing Microsoft Windows and Office products, but its complement it.
This is Microsoft’s incompetent, although launch Windows Live and Office Live may also influence Microsoft Windows and Office products sales, its Live. Com with Microsoft MSN portal may differentiation advertising revenues. But if allow competitors to grow stronger, the Microsoft more risk,
So their Windows Live launch and Office Live can curb competition develop and grow, and can also provide more services through the advanced version of Microsoft Windows and Office to sustain the development of the empire.
To know that Microsoft is always with strong finishes, not to know this time with the new Internet age, whether Microsoft can create splendid future.