20
Jan

Positioning Windows 8 versus Windows 10

2-Color-Design-Hi-Res-100px-widthOn January 20, 2015, the GeekWire website published an article written by Todd Bishop and Blair Hanley Frank, which discusses Microsoft’s Windows 10 operating system and a public event (the actual debut of the consumer version of this O/S), which is scheduled to be held on January 21, 2015. The title of the article is Does the world still need Windows? What’s at stake for Microsoft in the Windows 10 consumer preview (http://www NULL.geekwire NULL.com/2015/world-still-need-windows-whats-stake-microsoft-windows-10-consumer-preview/). Bishop and Frank summarize in this article some statistics coming out of NetApplications, which depict an enterprise computing world largely dominated by Microsoft’s Windows 7 operating system (56% market share vs 14% market share for a combination of Windows 8 and Windows 8.1 desktops).

The statistics are included to buttress a portrayal of some of the challenges in front of this new operating system, as Microsoft prepares for its event. The article argues Microsoft faces an imperative, which it must successfully address, via the January 21st event, to ” . . . assure [the public] that Windows 10 won’t cause them to punch their PC. Windows 8’s dual interface, straddling the line between desktop and tablet features, has caused confusion and frustration for many longtime Windows users.” A similar call for urgency can be found in a number of other articles published on the same topic.

Is it possible Microsoft’s public relations team has encouraged the news community to adopt this approach to the event, which I would summarize as “Windows 10 is a radically different operating system from Windows 8.1”? I have no information to indicate whether this is the case, or not, but the similarity in tone between these articles is, perhaps, attributable to a set of “talking points” someone sent out. At least it is fair to say there has been no press from Redmond countering the tone or substance of these articles.

I have been running Windows 10 Preview on a laptop since the start of the preview program (I believe the program kicked off in October, 2014). The laptop, an HP Envy, shipped with Windows 8.0, which I upgraded to Windows 8.1. In my opinion the differences between Windows 10 and Windows 8.1, at least as of Build 9879, are not radical. The real takeaway, for me, from the Windows 10 Preview experience, is a refinement of Windows 8.1, where the user interface is now a consistent experience of apps and other desktop components. Is it necessary to combine both experiences in one operating system? I would answer it is, given the reality of an enterprise computing world where mobile hardware devices are the norm.

Microsoft is not the only vendor of these systems seeking to present consumers with a “unified” computing experience. Both Apple and Google (Android and Chrome) have come around to the same approach, which should be something of a vindication for the original notion powering Windows 8.1. I am looking forward to tomorrow’s event. It might even be fun.

Ira Michael Blonder

© IMB Enterprises, Inc. & Ira Michael Blonder, 2015 All Rights Reserved

20
Dec

Dell’s Growth Forecast Pointed to the end of the Desktop PC Computing Era Back in March, 2013, But What About Now?

Michael Dell appeared on CNBC this week. Included in his generally optimistic comments about his business, Dell, which recently became a private company, were some comments about the PC business. Michael Dell spoke about the excellent potential for sales of very high contrast displays to the desktop PC computing market.

But back in March, 2013, in a document mysteriously titled Going private transaction by certain issuers (http://services NULL.corporate-ir NULL.net/SEC/Document NULL.Service?id=P3VybD1hSFIwY0RvdkwyRndhUzUwWlc1cmQybDZZWEprTG1OdmJTOWtiM2R1Ykc5aFpDNXdhSEEvWVdOMGFXOXVQVmhNVXlacGNHRm5aVDA0T0RNd09URTJKbk4xWW5OcFpEMDFOdz09JnR5cGU9MSZmbj1EZWxsSW5jLnhscw==) Dell Corporation provided the US Security and Exchange Commission (SEC) with a voluminous (the PDF file is over 40MBs in size) set of information about management’s decision to take the company private. On page 242 of the 758 pages of this document, Evercore Partners (http://evercore NULL.com), the investment bank and advisory firm, published a financial projection, through 2017, for the legal entity taking Dell private, “Denali”. By 2017 the BEST projection of the four included on the spreadsheet has the private company growing at an annual rate of 2.2 percent. So when I compare the two public statements, I can’t miss a striking contrast between them, and need to look a bit further into what’s causing the gap.

Back in March, when I added IBM’s revenue growth over the last 5 years (1.13%) (https://eresearch NULL.fidelity NULL.com/eresearch/evaluate/fundamentals/keyStatistics NULL.jhtml?stockspage=keyStatistics&symbols=IBM) into the mix, I couldn’t escape a difficult conclusion: Neither consumers, nor businesses using desktop computers appeared to be buying innovation. These markets seemed to be standing still.

But ISVs continue to innovate computing methods. The hot spots, back in March of this year, were the small mobile device hardware market. and the market for automated applications offered on a multi tenant model (cloud and SaaS). These conclusions are hardly news, but until we had a chance to look at the numbers, included in Dell’s explanation to the US SEC, we weren’t getting the message. Dell, IBM, HP, and their peers were just not growing.

In contrast, Apple demonstrated revenue growth of 45% over the last 5 years, Amazon 32.44% over the same period, and Salesforce.com by the same. Almost all of Apple’s growth is attributable to the small mobile device hardware market, while Amazon and Salesforce.com have done very well in the cloud and SaaS application area.

But Dell’s March, 2013 argument appeared to make sense. I couldn’t find much of a rosy upside for the business over the next 4 to 5 years. Evercore’s “Upside” Assessment depended on Dell successfully selling more premium desktop and laptop hardware. Selling more copies of Quest software products, or SonicWall firewall products, or even Wyse VDI technology just wouldn’t fill in the enormous revenue loss attributable to a substantially smaller market for PCs.

It all looked very grim to me back then. But now I find myself confused after Mr. Dell’s “glowing” remarks this week. Of course, the difficulties Salesforce.com, Amazon and Adobe are finding demonstrating profitability from cloud, SaaS products aren’t helping the notion of “go Cloud” as a universal panacea, either.

Finally, with Apple hiring the ex CEO of ultra high end Burberry’s retail operation to run “Apple Stores”, everywhere, there is certainly an increasingly clear image of an end to at least the high end of the smartphone/tablet market on my horizon.

Could it be the future of PC Computing isn’t really bleak at all?

Ira Michael Blonder (https://plus NULL.google NULL.com/108970003169613491972/posts?tab=XX?rel=author)

© IMB Enterprises, Inc. & Ira Michael Blonder, 2013 All Rights Reserved