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Ready for Vista Final? (Code-named Windows 7)

For two days in a row TechMeme was overflowing with Microsoft news coming out of PDC: Azure, Windows 7, Web Office (whatever the MS name will be).   But on the very day that supposedly all belonged to Microsoft there was a stream of seemingly unrelated items on TechMeme all pointing in the same direction, none too good for Microsoft.

Joe Wilcox @ Microsoft Watch declared that Windows Vista No Longer Matters :

Contrary to ridiculous assertions recently made by Microsoft CEO Steve Ballmer, Windows Vista is a flop. If businesses aren’t buying Vista, after waiting six (now seven) years, it’s no success. Yet, during the last day of the Gartner 2008 expo 10 days ago, Steve asserted that Vista “has been extremely successful.”

Success in terms of revenue does not mean actual product acceptance.  The fact is, most of the Vista revenue comes from consumers, not the corporate Market.  Consumers don’t intentionally buy Vista, they buy computers: good luck trying to buy a system without Vista on it – unless it’s a Mac or the refreshingly new category of Netbooks.  And if you cough up the extra $50-$99 most OEM’s charge you to “downgrade” to XP, it is still booked as a Vista sale!  Like I’ve said before, don’t be blinded by Vista sales numbers.  No wonder MS omitted the Vista licence count during last week’s earnings announcement.

PDC has shown that Microsoft is now eager to forget about Vista, a bad dream, fully focusing on Windows 7.   They must have realized that no multi-million-dollar marketing campaign can fix Vista’s badly tarnished reputation.

Where public opinion is more divided is whether this was just a perception issue, or actual product problems.  Count me in the latter camp – no Mojave Experiment can convince me otherwise.  The problem with Vista has never been appearance, or features as originally designed: it’s the zillions of inconsistencies, little things that fail every day turning us Vista-users into Vista-sufferers.

The stream of messages coming out of PDC appear to confirm this: it’s clear that Windows 7 does not mean major architectural, infrastructural changes – that’s what Vista did.  Win7 is all about the user experience – in other words, putting the finishing touches on Vista.  I said over a year ago: we don’t need another desktop OS.  But I guess I am OK with Windows 7, provided Microsoft:

  • Releases it as  Vista Final (meaning it works)
  • Provides it as a free update to Vista
  • Attaches  a letter of apology to all Vista victims (yeah, fat chances…)

Whether it’s Vista or Windows 7, almost doesn’t matter – it will likely be the last major desktop OS MS releases, and as such it represents the end of an era.  Obviously Microsoft themselves recognizes it (finally!), this years PDC is all about moving to the Cloud, be it the Azure initiative, or the announcement of moving Office to the Web.  (To be precise it’s the announcement of a future product announcement).

This trend will only be accelerated by the shift in what devices we use for our (cloud-based) computing needs.  Time to Leave the Laptop Behind – says The Wall Street Journal, joined by Coding Horror’s Jeff Atwood who declares: The Web Browser is the New LaptopEvery day another Netbook is announced, at lower and lower prices, and they change how we access information forever.  I’ll be devoting the next post to this subject, in the meantime leaving you with another post from Henry Blodget:  Microsoft Windows: The Beginning of the End.

(Originally posted @ CloudAve)

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Oh, That Bloated Presentation – The Web is Greener

We can argue all we want about  the benefits of SaaS, discuss hypothetical use cases at length, but the best showcases are served up by real life, often unexpectedly.

A startup CEO friend asked me to take a look at his PowerPoint deck before he would send it to a VC.  (Incidentally, I don’t believe presentations should be sent in advance of a meeting:  if your deck has enough content to convey the message standalone, than it’s not a  presentation… but let’s put that aside for now.)   I agreed to help, and he fired off an email with the PPT attachment.

Too bad I could not open it.  I have MS Office 2003 on my Windows computer – that’s the last version I purchased, since moving to the Cloud, and I won’t buy an Office package ever again – and he has Office 2008 on his shiny Macbook Air.  (Standard issue for hot startup CEO’s in San Francisco?). Yes, I know there’s a converter thingie I can download from MS, but apparently I haven’t done it on this particular computer, so my friend quickly saved it for me in the older format.

I reviewed and commented on it, and as an aside noted that the fonts and the text alignment were way off on a page.  He did not see the text problem on the version I sent back.  Then came a second round of conversions and emails.  It became apparent that no matter what we do we always end up seeing different layouts – so much for the MS to MS conversion – so we just focused on content, and I sent back the revised version.  It took a while… hm, no wonder, the PPT deck that started it’s life as a 2MB file first became 5, then 7, finally 9 Megabytes.  Wow!

What an inefficient process!  Emailing multiple bloated copies of the same file, never seeing the identical version, leaving quite some footprint behind, when we could have started with an online presentation, collaboratively work on the one and only copy online, see the same and not clutter several computers with the garbage files.

I will come back to this in a minute, but here’s another benefit my CEO friend missed out on: providing the latest and greatest information.  The VC Partner he was talking to was about to to go on vacation, and she was planning to review the presentation in the next 2 weeks – who knows when.  This startup was at the time in advanced discussion with major prospects, and signing any of those deals would materially change the presentation.  Had my friend sent just a URL to the online presentation, he could have safely update it any time, and be assured that whenever the VC reviews it, she will always have the latest and greatest information.  Does this scenario ( sans the VC) sound familiar?  How many times have you hit “send” only to wish you could retract the email and replace the attachment with the correct version?  

Back to the storage footprint issue. On my count, just between my friend and myself, we generated and stored nine copies of this presentation, the last one being 9MB, up from 2.  It’s probably fair to assume a similar rate of multiplication in the process the original deck was created, between the CEO and his team.  Next he sends it to the VC, who will likely share it with several Associates in the firm, and in case there’s more interest, with other partners.  Of course my friend will send the same presentation to a few other VC firms as well, so it’s not beyond reasonable to think that there are at least a hundred copies floating around, occupying a Gigabyte of storage or more.  Oh, and I did not even consider the footprint of this presentation at ISP’s and all hops it goes through.  Not that I ever bought into IDC’s Storage Paradox, but this is clearly a very wasteful process.

All of that could be replaced with one central copy on the Web, represented by a URL. 

Oh, and the irony of all this: my friend is CEO of a GreenTech startup. smile_wink

(Cross-posted from CloudAve.  Follow our CloudAve Feed for more)

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Wallop – Walflop

Two years ago I called it Walflop.  Finally, Microsoft spin-off  Wallop entered the deadpool, reports TechCrunch.

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SaaS and the Commoditization of the Software Market

Office 2007 Reaches a New Low – reports Joe Wilcox @eWeek.  He means low prices:  while Office Standard is still above $300, the Home and Student Edition can be purchased for as little as $89.99.

He then speculates on the reasons for this “Crazy Eddie”  pricing, with percentage of likelihood:

  • It’s end of the back-to-school buying season, when Microsoft and retailers often discount consumer Office (50 percent).
  • Microsoft is seeding the consumer market with the Home and Student Trojan horse for supporting Web services such as Office Live Workspace (25 percent).
  • The low pricing is way of psychologically preparing the consumer market for $69.95 Office Equipt, which packs 12-month subscription versions of Office 2007 Home and Student Edition, Windows Live OneCare, Mail, Messenger and Photo Gallery. (20 percent).
  • Microsoft is shoring up marketshare as proactive response to freebees like Google Docs. (5 percent).”

I strongly believe in the last one, which is way underrated at 5%.  With freely available OpenOffice, Google Docs and the Zoho Suite, people have little reason left to purchasing Microsoft Office.  I’ve said this before, while discussing the perfectly rightful clampdown on piracy:

The danger for Microsoft is not the direct financial impact of these users turning away from their product, since the never paid in the first place. It’s losing their grip; the behavioral, cultural change, the very fact that millions of people – students, freelancers, moonlighters, small business workers,  unemployed – realize that they no longer need a Microsoft product to work with MS file formats.  Microsoft shows these non-customer users the door, and they won’t come back – not even tomorrow when they are IT consultants, corporate managers, executives.  That’s Microsoft’s real loss.

But this post is about commoditization, and there’s more to it than putting price-pressure on Microsoft. Yes, SaaS disrupts the traditional software market, but there’s another equally important trend happening: some of the early pioneers who evangelized SaaS but retained a 1.0 business model are being squeezed by more nimble competitors. 

Days after my post on SaaS and the Shifting Software Business Model I received an email from Salesforce.com, announcing new, promotional pricing for Salesforce Group Edition.  The promo was supposed to end July 31st, but I suspected this would become a permanent price cut.  Why?  Group Edition is where Salesforce.com feels intense price pressure – see the comparative matrix here.  Today I checked again, and what a surprise (not really) –  the promo deadline is now gone, Salesforce.com silently turned the promotion into a permanent price-cut

No wonder there wasn’t much fanfare: price cuts are a red flag for the Street.  Commoditization can be a death-spiral to businesses – except for the few that drive it. But it is beneficial to customers, and in the end, that’s what matters.

(Disclaimer: I am an advisor to Zoho, the company with a mission of Deflating IT).

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The Shortest Windows 7 Wish-list

Ed Bott compiled a detailed wish-list for Windows 7. Mine is shorter:

  • Call it  Vista Final (meaning it works)
  • Provide it  free of charge to all Vista victims
  • Attach a letter of apology from Microsoft
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Blinded by Vista Sales Numbers

This is one of those rare occasions when I can pull up an old post, dust it off,  and voila! – I’m done.  Yes, I am lazy – but hey, I can’t help, this is one of those “I’ve told you” moments.   Here’s what I wrote last year:

Time for a reality check. Product quality, customer satisfaction and market success have very little to do with each other when you have a monopoly.

The Vista problems are real, they are not fantasies created by bloggers. But how exactly are consumers supposed to revolt? They still need computers, and despite Apple’s respectable growth, they still represent a fraction of the consumer PC market. Try to buy a PC today, it’s hard to NOT end up with Vista (even I got one)

Customer demand for Vista? No, it’s customer demand for computers, in a market with no choice. I’m not “making this up”, Donna. It’s all in Microsoft’s 10-Q:

…Client revenue growth correlates with the growth of purchases of PCs from OEMs that pre-install versions of Windows operating systems because the OEM channel accounts for approximately 80% of total Client revenue. The differences between unit growth rates and revenue growth rates from year to year are affected by changes in the mix of OEM Windows operating systems licensed with premium edition operating systems as a percentage of total …

The increased “demand” for premium versions comes from another well-documented fact, i.e. Microsoft’s new segmentation, castrating Vista Home Basic and essentially making Home Premium the equivalent of XP Home – a hidden price increase, by any measure.

A true measure of “demand” for Vista would be corporate licenses and retail sales, and both are behind. But not for long: eventually, after the release of SP1 corporate IT will give in, too – who wants to be “left behind”, after all.

Today InfoWorld burst the Vista Sales Bubble (if you ask me, there never has been a bubble, but that’s another matter):  35 percent of mainly enterprise-class users “downgrade” their Vista systems to XP.

The numbers speak for themselves, let me just add this: next time you look at Vista Sales figures, remember: these customers did not have the choice to buy XP directly, they had to get Vista on their systems, then “downgrade” (upgrade, if you ask me) to XP.    But by then their transaction is booked as a Vista purchase!

Vista sales figures are inflated, these transactions were not real purchases, just ransom paid to the monopolist for the privilege to use the OS that actually works- XP.

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Live Mesh: Open, But Still Barely Live. Who Has Time For This?

A few months ago I detailed the obstacle course Microsoft put me on, trying to get to Windows Live Mesh, and somewhat sarcastically labeled it Windows Barely Live Mesh.  Fast forward 3 months, and today Mesh is open – but still Barely Live.

But first things first: I wanted to read on the specs before installing.  You can click on the maze of mostly useless help text, but can’t find out such basics as:

  • is sync strictly via the server or peer-to-peer, a’la FolderShare ( a product Microsoft absorbed)
  • are the files stored up @ the 5G free storage encrypted?
  • etc…

The last one (encryption) is pretty important and for many users / businesses a potential dealbreaker.  Since it’s no-where mentioned, I assume MS does not offer encryption.  In comparison, Syncplicity, a sync-backup-and-more  service launched by former Microsofties offers encryption, and just as importantly the explain what happens to your data before you take the plunge – see my review here.

Oh, well, so the only way to find out is jump in… so I decided to install and test.   No more hoops, simply sign in with my Live Id (formerly Passport) account, and voila! – here’s the download.

2 minutes later:

The “Get more help” takes me back to the already seen generic FAQ.

Normally this would be the time to search the MS knowledge base, or better yet, Google, but this thingie is so new, it’s probably not yet documented.   Who has time for this?  I’m out of here, be back to check on Live (?) Mesh in another few months.

And Dear Microsoft, this one was just a quickie, but you still owe me for last time, se here’s my virtual invoice:

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OMG the First Good Windows Product Soon Dead

WindowsNow reports that Windows 3.11 has officially reached its end-of-life. Wow!  Obviously obsolete as a standalone product, it is still being sold in embedded systems – until November 1st, 2008. Who would have thought?

I actually liked that OS… in fact I also liked DOS 3.1 – even though I had the PC-DOS version on my system, cause where I worked back then, people believed they would soon squash this nasty little company putting out the MS-DOS version. smile_yawn

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MS Money: Old Financial Data May Not Be Accessible on Vista

You’d think at least Microsoft’s own products are compatible with Vista.  Well, sort of.  MS Money users who converted from Quicken may be out of luck.

I have a lot of financial data in Microsoft Money and prior to that in Quicken files. Both  applications used to recommend you keep the data files small by archiving earlier years. With today’s faster computers archiving is no longer an issue, but if you’re  a long-time user like I am, you probably have a few old archive files.

Every time you “upgrade” Money (hardly any new value, but if you use online services, MS forces you to upgrade every 2-3 years) your current data file is upgraded to the new formats, too. But what happens to the archive files?

I decided to convert all my older Quicken files to Money, just in case… after all, Money supports Quicken conversion.  Or not: crash.  Crash again.. and again.  I tried several data files, even rebooted the system, to no avail: Money consistently crashed at all conversion attempts.

This is where Vista’s Problem Reports and Solutions comes handy, and yes, a few days later it shows “solution found”. Hm… if they found it, they certainly are not sharing it.  Here’s the user-friendly stuff I found:

<?xml version=”1.0″ encoding=”UTF-16″?>
<DATABASE>
<EXE NAME=”MSMoney.EXE” FILTER=”GRABMI_FILTER_PRIVACY”>
<MATCHING_FILE NAME=”adapt.dll” SIZE=”109360″ CHECKSUM=”0x24BD92C0″ BIN_FILE_VERSION=”16.0.0.1303″ BIN_PRODUCT_VERSION=”16.0.0.1303″ PRODUCT_VERSION=”16.00.1303″ FILE_DESCRIPTION=”MSN Money Adaptation DLL” COMPANY_NAME=”Microsoft(R) Corporation” PRODUCT_NAME=”Microsoft(R) Money” FILE_VERSION=”16.00.1303″ ORIGINAL_FILENAME=”adapt.dll” INTERNAL_NAME=”adaptation” LEGAL_COPYRIGHT=”Copyright © Microsoft Corp. ” VERDATEHI=”0x0″ VERDATELO=”0x0″ VERFILEOS=”0x4″ VERFILETYPE=”0x2″ MODULE_TYPE=”WIN32″ PE_CHECKSUM=”0x25BFE” LINKER_VERSION=”0x60000″ UPTO_BIN_FILE_VERSION=”16.0.0.1303″ UPTO_BIN_PRODUCT_VERSION=”16.0.0.1303″ LINK_DATE=”01/04/2007 07:49:53″ UPTO_LINK_DATE=”01/04/2007 07:49:53″ EXPORT_NAME=”Adapt.DLL” VER_LANGUAGE=”English (United States) [0x409]” />
<MATCHING_FILE NAME=”adaptres.dll” SIZE=”13104″ CHECKSUM=”0xA99DDA54″ BIN_FILE_VERSION=”16.0.0.1303″ BIN_PRODUCT_VERSION=”16.0.0.1303″ PRODUCT_VERSION=”16.00.1303″ FILE_DESCRIPTION=”MSN Money Adaptation DLL” COMPANY_NAME=”Microsoft(R) Corporation” PRODUCT_NAME=”Microsoft(R) Money” FILE_VERSION=”16.00.1303″ ORIGINAL_FILENAME=”adapt.dll” INTERNAL_NAME=”adaptation” LEGAL_COPYRIGHT=”Copyright © Microsoft Corp. ” VERDATEHI=”0x0″ VERDATELO=”0x0″ VERFILEOS=”0x4″ VERFILETYPE=”0x2″ MODULE_TYPE=”WIN32″ PE_CHECKSUM=”0x4855″ LINKER_VERSION=”0x60000″ UPTO_BIN_FILE_VERSION=”16.0.0.1303″ UPTO_BIN_PRODUCT_VERSION=”16.0.0.1303″ LINK_DATE=”01/04/2007 07:00:04″ UPTO_LINK_DATE=”01/04/2007 07:00:04″ VER_LANGUAGE=”English (United States) [0x409]” />

This looks like the problem report sent to Microsoft, not the solution.  There’s one hint though: the filename is AppCompat.txt.  Perhaps it’s a Vista compatibility issue?   Luckily I still have an XP laptop around, the data files are there thanks to Foldershare sync (more on synchronization in the next post), all I have to do is install MS Money on the XP machine and try conversion there.

Voila!  Half an hour later I have the Quicken files converted to Money on the XP computer.  Money’s import/conversion routine is incompatible with Vista!   The whole exercise, including search on the Money Group took me about 2 hours, so dear Microsoft, here’s my invoice for lost productivity:

Oh, wait, we’re in the US, perhaps I should have presented a properly Americanized version. smile_wink

My poor experience was with MS Money 2007, but with Money Plus, the 2008 version of the product line Microsoft shows true ignorance to users’ legacy data needs.  Money Plus comes in four editions: Essentials, Deluxe, Premium, and Home & Business.

Microsoft offers a nice comparison chart, which neglects to mention a small detail, available only at the footnotes:

* Important note – Microsoft Money Essentials will not be able to open previous Money or Quicken files. If you are upgrading from a previous version of Money or Quicken, Money Plus Deluxe may be the right solution for you.

Not opening Quicken … well, it’s their decision. But not opening data from their very own previous releases? And this is hidden in the small print?

I rest my case.

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Microsoft, the Walking Dead

Over a year ago Paul Graham caused quite some uproar calling  Microsoft Dead.   Unlike in the 90’s, none of his startup Founders fear (or even respect) Microsoft.  They have their eyes on Google and other startups – so Microsoft must be dead.  Cash-rich, wildly successful – just not a future force to reckon with.

Today I read evidence that Paul Graham is right.  Todd Bishop produced a Bill Gates email from 2003, in which the Microsoft CEO complains about his own systems usability (or lack of).

—- Original Message —-

From: Bill Gates
Sent: Wednesday, January 15, 2003 10:05 AM
To: Jim Allchin
Cc: Chris Jones (WINDOWS); Bharat Shah (NT); Joe Peterson; Will Poole; Brian Valentine; Anoop Gupta (RESEARCH)
Subject: Windows Usability Systematic degradation flame

I am quite disappointed at how Windows Usability has been going backwards and the program management groups don’t drive usability issues.

Let me give you my experience from yesterday.

I decided to download (Moviemaker) and buy the Digital Plus pack … so I went to Microsoft.com.

This site is so slow it is unusable.

Someone decided to trash the one part of Windows that was usable? The file system is no longer usable. The registry is not usable. This program listing was one sane place but now it is all crapped up.

So after more than an hour of craziness and making my programs list garbage and being scared and seeing that Microsoft.com is a terrible website I haven’t run Moviemaker and I haven’t got the plus package.

The lack of attention to usability represented by these experiences blows my mind. I thought we had reached a low with Windows Network places or the messages I get when I try to use 802.11

I tried to selectively quote from this email, but it’s impossible. This email is a goldmine, you have to read it in its entirety.

It sounds like John Doe Windows User spilling out all his frustration with a useless, unfriendly system.  Or like me, ranting about Vista.   Which brings me to my point: although we’re blinded by the sales success, a result of monopoly, nothing changes the fact that Vista is widely considered a fiasco.   If this is the best the world’s richest company could come up with 5 years after the CEO’s angry rant – well, that speaks for itself.  Microsoft is dead. Rich, powerful, but without a future.  A Walking Dead.

(And now you can call me crazy.)

Update (6/25):  Jeff Nolan feels sorry for Citizen Bill: Of course he’s right about the usability… too bad he can’t switch to a Mac.

Phil Wainewright is wondering whether Gates is “a secret cloud convert, or have I been drinking too much of my own Kool-Aid again?”

Michael Krigsman points to this PDF which shows some of the follow-up email correspondence – you’d think after the CEO /Chairman rants so explicitely, they rush to find a solution. Instead, what we find is fingerpointing, politics, total corporate inertia.  That’s what kills (formerly great) organizations.

Update (10/7/2010) – Good read @ Computerworld:  Microsoft’s coming heart-attack moment