The biggest "channel blunder:" Microsoft Surface

amirm

Banned
Apr 2, 2010
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Pretty scathing opinion piece on Microsoft and surface. A bit biased probably because CRN is all about channel marketing and Microsoft went direct to sell Surface, bypassing that. My opinion is that the bigger blunder was to not launch Surface Pro first. That product would have been a hit with Corporate and Microsoft could have then tried to leverage that into consumer market. Instead as the article correctly states, they tried to go head on with Apple and lost. Same thing happened with Zune. A frontal assault is very hard to do with Apple.

http://www.crn.com/blogs-op-ed/the-...-2012.htm?goback=.gde_119215_member_196435944

The Worst Channel Decision Of 2012
By Steven Burke, CRN December 14, 2012

Given the blinding pace of change in the tech market, there were many channel blunders this year that have forever altered the indirect channel sales landscape. But none, in my opinion, was more damaging than Microsoft’s decision not to leverage the channel to sell its new Surface Tablet.

The irony here is that Microsoft’s Surface effort has been flummoxed by Apple envy. Microsoft CEO Steve Ballmer admitted as much in an interview with CRN earlier this year when he asserted that Microsoft would leave no “stone unturned” in its innovation battle with Apple. At the same time, Ballmer told CRN that if Microsoft partners want to buy Surface, they can buy it from Microsoft.com.

It’s a classic case of a copy-cat CEO and a company in the midst of an identity crisis. Microsoft is not Apple. I know Apple, Mr. Ballmer, and Microsoft is no Apple. Instead of leading with Microsoft’s top-down advantage in the business market, its monopoly position and huge installed base in the business-productivity software market with Office and Windows, Ballmer decided to take a bottom-up approach, battling Apple on its own high ground -- the consumer market. First off, get real.

No one -- and I do mean no one -- is a better consumer product and marketing company than Apple. The iPad is unassailable in the consumer market. Surface is like a 50-year-old dad trying to be cool with a comb-over hairdo. And, remember, Microsoft is two-and-a-half years late getting into the tablet game. Surface is simply the classic case of a product that needs to be sold. That’s right, it needs someone to sell it. What a concept! Apple stores fulfill demand for a consumer product. Surface is a product that is begging to be sold into the business market where IT professionals are dying to put the lid on the BYOD (bring your own device) to work phenomenon with a business-approved tablet that has all the security of a laptop or a desktop. The ultimate irony: Microsoft has a robust, fully baked channel acting as trusted advisers to millions of businesses who are anxious for a secure business tablet.

Given the right strategy, Surface would have been a monster hit for Microsoft. Instead, Microsoft’s Apple envy is sinking Surface faster than a two-ton anchor. Detwiler Fenton & Co., a Boston-based brokerage, surveyed the damage earlier this month reporting that Microsoft sold just 500,000 to 600,000 Surface tablets in the current quarter. Compare that to Apple, which is expected to ship 24 million to 26 million iPads in the current quarter. “Regarding (Surface) RT, lack of distribution is killing the product,” said the Detwiler Fenton advisory.

Microsoft admitted as much by announcing last week that it was expanding retail distribution for the Surface RT, adding outlets like Staples. My bet is that the beleaguered computer giant will be forced to let partners sell Windows 8-based Surface Pro to make up for its subpar direct-sales performance.

Microsoft needs to be Microsoft and get its partners to bring Surface into businesses. Instead, Microsoft wants to be Apple. That’s why Microsoft’s decision not to sell Surface through its trusted partners is the biggest channel blunder of 2012.

BACKTALK: What are your thoughts on Microsoft and its Surface initiative? Contact Steve Burke at steve.burke@ubm.com.
 

ack

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May 6, 2010
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I have read a number of these reports and they are all over the place. I don't think channel sales has anything to do with it, or other "issues" articles have cited. I have been a number of times at the MSFT store here in Boston and the most common complaint from patrons around me has been, as I expected and stated months ago, the keyboard: people just don't care to buy a laptop replacement; they want a _TABLET_. Yet another case where MSFT just doesn't understand market needs.
 

Phelonious Ponk

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Jun 30, 2010
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I don't know what the rest of the corporate world is doing, but our IT group now offers iPhone and iPad support. Still no support for Macs in the enterprise environment, but the iOS devices are in. Looks like Apple is the one who slipped in through the side door into Microsoft's territory.

Tim
 

Keith_W

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Mar 31, 2012
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If you look at the philosophy of the three competing ecosystems out there, I have to say that I prefer Microsoft's the best.

- Apple: closed system, single hardware supplier, overpriced.
- Android: open system, multiple hardware suppliers, but poor quality hardware and ad-supported
- Microsoft: open system, multiple hardware suppliers, excellent hardware, and NO ad support.

Pity it's MS ... the definition of un-cool.
 

FrantzM

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Apr 20, 2010
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If you look at the philosophy of the three competing ecosystems out there, I have to say that I prefer Microsoft's the best.

- Apple: closed system, single hardware supplier, overpriced.
- Android: open system, multiple hardware suppliers, but poor quality hardware and ad-supported
- Microsoft: open system, multiple hardware suppliers, excellent hardware, and NO ad support.

Pity it's MS ... the definition of un-cool.

I would not qualify Microsoft as "open system". The thing is they are very popular in the Business World and elsewhere. I had some hopes for the Surface, I like the concept but i is no iPad .. There is something quite wrong with the interface. It looks somewhat cartoonsih ...
I don;t know if Msft would have been able to sway corporate to get the Tablet though the interface is trying too much to be an IOS rather than being its own ...
The mighty are falling .. MSFT hasn't look good the past several years .. They have been punting for a while: Vista was a fiasco, then the Zune , ( I should mention the stupid complete redo of their application GUI, the Ribbon which forces a legion of people to re-learn things they have been doing for years on the Microsoft Office suite apps) now the Surface ... Ballmer may be gone ... His fall will be well absorbed though by his cushion of billions ...
 

Phelonious Ponk

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It's pretty easy to make the argument that Apple is the more open system of the two. I can download free plug-ins to very easily convert FLAC files, allowing me to use any audio file Windows can use. I can download cheap plug-ins that will allow me to stream any audio that will play on my Mac to any wireless receiver in the house (opening the iTunes door). I can share files wirelessly with my wife's PC and my son's Playstation...I haven't found a single media or file-sharing closed door in OSX that I couldn't open for a few bucks, and for less trouble than the updates, drivers and fixes that were just an everyday part of my Windows experience. I can open an Office for Windows file (and many other Windows files) on my Mac, just by opening it, as if it were an OSX file. I live in a house with a PC, Playstation, a Mac and an iPad. The Mac is central control that gets everything to work together and share, openly. And really, you wouldn't want to try it from the PC.

Now, most Mac people don't do any of that. Most are perfectly content to stay within Apple's ecosystem where they can do everything they evidently want to do, simply, seamlessly, and reliably, without giving it much thought beyond saying yes to the automatic updates. But what they're content with and what is "closed" to them are two very different things.

Software? There's plenty of OSX software available, and much of it is just like OSX itself -- easier, more intuitive, more fun than Windows software. Hell Word for OSX is better than Word for Windows! Trust me, I use them both. But if you find something you need that just isn't available for OSX, you can actually run Windows, and the Windows software, on your Mac, in its own Window, while your Mac programs are still running. Try that in Windows. Yeah, Windows is definitely the more "closed" system.

Overpriced? I think you need to go back to the top, open your system, and re-read this post. Hell, I think it's a bargain.

Tim
 

HedgeHog

Well-Known Member
Mar 12, 2012
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I tend to agree. My client has been asking for this but I cannot source anything via my distributor as most of the manufacturers are either bypassing channels and/or aiming at bigger brick and mortar stores. I cannot understand why as we can get these items into hands of corporate users and have that propagate towards general consumers. I do agree Apple-envy is blinding them. I wonder how much longer Ballmer will be there. Their push towards cloud-based and consumer market is killing the SMB channel. [/whine]

-Hedwig
 

JackD201

WBF Founding Member
Apr 20, 2010
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To be fair, MS hasn't been a total failure when it comes to the mass market. There's the X-Box where they muscled into Nintendo and Sony's territory quite successfully.

Having said that, I did comment in another thread that I thought the best bet for MS would be to hit the enterprise market first. That puts me in agreement with the author. The problem with the mass market is you need content that will create the "want". It was exclusive titles for X-box that did the trick. Going head to head against Apple and Google which have so many apps that it's tough to even cut through the noise as it is, is IMO not very smart. With enterprises it's one or two apps and hundred or thousands of hardware units sold. Buys time for third party entertainment content support.
 

vinylphilemag

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Apr 30, 2010
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As long-time member of the computer industry, the failure of the Surface is no surprise to me. From what I observe (Xbox 360 being about the only exception), Microsoft only succeeds where they don't need to compete because they already have a monopoly. Anywhere they've needed to compete on the quality of their offerings has been a failure; Zune and the Surface are just two examples. I mean, did anyone seriously expect the Surface to not flop? (I'll grant the the Surface Pro might have a fighting chance, but I wouldn't put money on it.)

As businesses slowly discover the benefits of breaking free from their Microsoft shackles, the latter will finally become aware of their own obsolesce.

@Keith_W: I have no idea how you come to equate Microsoft with open systems! Their idea of using open systems can best be described as "embrace and extend".
 

Greg_R

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Jan 25, 2012
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I have read a number of these reports and they are all over the place. I don't think channel sales has anything to do with it, or other "issues" articles have cited. I have been a number of times at the MSFT store here in Boston and the most common complaint from patrons around me has been, as I expected and stated months ago, the keyboard: people just don't care to buy a laptop replacement; they want a _TABLET_. Yet another case where MSFT just doesn't understand market needs.
I am the exact opposite. I don't know who decided that touch was a great interface but it sucks for doing anything productive (or even posting in forums :) ). IMO, the ability to add a decent keyboard is critical so I like the two MS options. For those who don't want a keyboard I thought the Surface could be purchased w/o one?

IMO the critical problem is that no one wants to buy all their apps over again for RT (assuming that they are available in the "store").
 

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