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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Microsoft launches online store: Is there deeper meaning here?

By | November 14, 2008, 4:24am PST

Microsoft has launched something long overdue: An online store. Yes Virginia, you can download Windows.

The launch is a bit quiet. Trevin Chow, a senior program manager at Microsoft, announced the “first-party” store on his blog. The software giant’s Windows blog also plugs a purchase of Microsoft’s Life Cam Show gadgets.

msftstore.png

Chow writes:

In addition to shipping fully packaged products to your doorstep, we offer the additional advantage by making available many Microsoft products to buy and download. This is also commonly referred to as Electronic Software Distribution (ESD).

You pay for an ESD product just like you would for one that would be physically shipped to you. The big difference is that after your payment is confirmed, you can immediately download the product to your computer and install it right away. There is no longer any need to pay for shipping costs and waiting for the big brown truck to drive across the country. You’ll be able to enjoy your software almost immediately – all it takes is the download time of the product, which will vary depending on the size of the digital download.

The obvious fear for most users buying ESD products is not having the software on physical media to re-install the product at a later time. Microsoft Store solves this by letting you re-download the product until mainstream support for the product ends. Typically this is 5 years after the product is released.

That ESD wrinkle is reason enough to buy direct–how many times have you looked for some CD or manual with Microsoft’s Kryptonian code on it?

Aside from that ESD thing I’m resisting the urge to overanalyze here (Techmeme). Why? Everything Microsoft does gets blown out of proportion. The line of thinking over the store will go like this: Microsoft is screwing resellers, retailers and signaling the death of packaged software. It’s over for OEMs and the entire model.

But that’s a tad dramatic isn’t it.

The reality is this Microsoft is launching a long-overdue direct channel. And personally I like the option. I wouldn’t reach too far beyond that. Apple has its own store and doesn’t seem to annoy retailers. Dell is the poster child for channel partnerships these days–but it also has a Web site to buy direct. Pick any company and there’s a store involved.

The real question is why the heck Microsoft took so long. Oh yeah, probably because such a move would be analyzed to death.

msftstore1.png

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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RE: Microsoft launches online store: Is there deeper meaning here?
jackson1984-24316069205748857739440257893812 10th Oct
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You have to stand in awe at Microsoft's ability to innovate. Apple opened an online store on November 10th, 1997 - 11 years later, Microsoft finally get round to doing the same.
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How many years.....
xuniL_z 14th Nov 2008
ahead of Apple is Microsoft in Marketshare?


How many software products does Microsoft have that Apple still does not have a competitor?


How many years ahead of Apple did Microsoft have profiles/true multi-user operating systems?


How long after Apple lauched did they have their very first development environment of their own? Considering they licensed one from MS for 10 years.


How long after file versioning did Apple come out with the ability to do so?


Oh, how long did Microsoft have a device platform before Apple finally got around to creating some "crippled" (as is the name given to Vista basic versions) version of OS X to run on smart phones etc?


And finally...HOW Long did Microsoft run on the x86 platform, the only desktop platform that has a future, before Apple made the switch?



I believe that over 25 Years


You have to stand in Awe of Apple's ability to innovate, 25 years after the fact.

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Open Mouth.... insert foot
Ole Man 16th Nov 2008
http://inventors.about.com/od/cstartinventions/a/Apple_Computers.htm

The first home computer with a GUI or graphical user interface was the Apple Lisa. The very first graphical user interface was developed by the Xerox Corporation at their Palo Alto Research Center (PARC) in the 1970s. Steve Jobs, visited PARC in 1979 (after buying Xerox stock) and was impressed and influenced by the Xerox Alto, the first computer ever with a graphical user interface. Jobs designed the new Apple Lisa based on the technology he saw at Xerox.

With the 1984 Apple Macintosh Steve Jobs made sure developers created software for the new Macintosh Computer. Jobs figured that software was the way to win the consumer over.

http://www.microsoft.com/windows/WinHistoryDesktop.mspx

1985: Windows 1.0

The first version of Windows provided a new software environment for developing and running applications that use bitmap displays and mouse pointing devices. Before Windows, PC users relied on the MS-DOS? method of typing commands at the C prompt (C:\). With Windows, users moved a mouse to point and click their way through tasks, such as starting applications.

In addition, Windows users could switch among several concurrently running applications. The product included a set of desktop applications, including the MS-DOS file management program, a calendar, card file, notepad, calculator, clock, and telecommunications programs, which helped users manage day-to-day activities.

The Hoof And Mouth disease seems to be more prevalent each year.
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LOL
ShadowGIATL 16th Nov 2008
Time on your hands? Or just a repository for useless info like me?

Unfortuanately for Apple the Lisa didn't do so well though. Windows made GUI's popular, and Apple and Microsoft butted heads over that for some years afterwards.

But I agree that guy was a tad off base.
Gates was never really an innovator, just a marketing genuis.
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In case you aren't aware.......
xuniL_z 17th Nov 2008
you replied to the local president of the I hate Microsoft union, more commonly known as IMAMORON.


You are lucky, you didn't get to see his usual posts with a dozen liberal, pro OSS, ABM sites. which he thinks people are stupid like he and will believe obviously ******** anti-ms propaganda blogs.


He spends hours finding and posting links like that as though anyone could give a rat's behind.


I never said MS was an innovator, did I?


But we also know that Apple has never been an innovator either, in fact their entire OS is made up of software from BSD, Carnegie Mellon University, Open source communities, PARC etc.


What we do know is that Microsoft has written, or completely rewritten many software system that have appealed to almost everyone in the world.


The things Apple has written, such as QT, are considered the most dangerous bug ridden pieces of software available.


And Apple must license Office from Microsoft to keep any kind of business marketshare going.


You were right about the Lisa, it cost 5000.00 bucks and was totally out of perspective with what users needed at that time. That is why Microsoft's character based implementation turned them into the software giant they are today, MS was brilliant on what people actually need.


Apple has always been a black box project initially only for the very wealthy.


As for links, let's try this one:


Please note the Pippen in particular. The flop of a generation with worldwide sales of 40,000 or so, and they sold it for 6 years.


http://www.newlaunches.com/archives/top_10_apple_products_which_flopped.php



On the other hand, even though Microsoft purchased or licensed or worked with other vendors, such as sybase to get to MS SQL Server, the current products are complete rewrites, completely rewritten my MS coders and vastly better than the original Sybase code base. SQL 7.0 was the first re-write and now 2000 and 2005 have become hugely popular giving companies a SQL server database product And an OLAP solution for one low price.


Server 2008 and Vista came with new kernels, completely rewritten at and by Microsoft coders. And it's a good kernel, even ars technia gives it good ratings, while having some serious question on the XNU kernel's future, so if you ever wondered why Leopard is so much slower than Vista..


The main point here is there are huge differences between a man that can actually design systems and write code AND run a company brilliantly to one (SJ) who has spent his life taking advantage of other people.


Since his LSD trips while searching his soul in Europe and selling illegal stolen phone service, Jobs has been a taker. I recall reading about the incident where Woz, the brains of the original Apple, had written an app or something pre-Apple and Jobs told him he could sell it for him if he'd split the money. Woz agreed, and Jobs got 2500 for it. But he later told Woz he only got 500, gave Woz 250.00 and pocketed 2250.00.


Say all you want about Gates, but he doesn't steal from the person responsible for him not still chasing LSD dreams and selling stolen phone service.


Ripping off Woz is the perfect descriptioin of Jobs, it wraps him all together in one act - a con man, a taker, a user, no conscience, would screw over a friend.


Reminds me of many posters here on zdnet. One on particular.
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Actually I'm fully aware.
ShadowGIATL 17th Nov 2008
Me and Mr. Ole Man have had lengthy debates about his strong *nix propoganda. However he did actually have a point at that moment in time that wasn't actually far off base. I'm not in the habit of attacking people for past mistakes. I tackle each conversation based on the post that I reply to instead of previous post that may not have anything to do with what we are talking about now.

That said, I feel the need to point out some things.

"But we also know that Apple has never been an innovator either, in fact their entire OS is made up of software from BSD, Carnegie Mellon University, Open source communities, PARC etc."

No one in the market today can claim much innovation all by themselves. Bits and pieces of each OS comes from others in some way. I should remind you that all four major OS (Windows, OSX, Linux, Solaris) all come from previous OS's. During their evolution to what they are now, each has had to accept that people like certain features created in others and add them to help please their own followers. This is how we advance as a society.

Until narrowminded people stop arguing and realize this, we are only holding ourselves back. OS's where here before Microsoft, Apple and Linus Trovalds started tinkering with them, and they will likely be around long after the big three pass.

What will remain is the one thing all these OS's have in common. Users. That is what it's always been about. Why make it more then it is.

I use any and all OS's I can get my hands on. I'm partial to a few different ones, but I'm not partial to anyone whoe makes them. As long as the OS's I like continue to exist, everything else can fade away.
my ideas about technology whatsoever.


I feel just like you do. However, when i came here originally it was like an ugly OS holy war populated heavily by OSS and Apple users were probably the second largest group. There was no asking or talking about Microsoft w/o getting pummeled by many posters one after the other lining up to take shots at you and the fact you use Windows.


Subject lines were full of vulgar statements, as this was before zdnet cracked down and started censoring the site.


Even today there is still a heavy undercurrent of anti-ms sentiment that is treated as perfectly fine by even the censors and bloggers. In fact there are several openly anti-ms bloggers here.


In any case, I have a tendency to fight back against the biased, almost religious in nature, posts.

Poorly i suppose.


You must have changed your nic, what was it before? I've never noticed you here until recently and never sparing with Ole Man.?


In any case, i started in the 90s with Unix, Novell and an H.I.S. built on top of PolyForth. I was doing all programming and systems type work then and learned a great deal about Unix. We used it for Office automation in the 90s, running a package called CAI-NET on top of AT&T System V Rel. 4. We also had SCO Unix which handled our optical storage in those days.


The good old days of chaining 2 GB drives together to get what, 14 GB max per controller. the syntax and procedures for adding disc was quite arcane. I was not trained as a systems person and had to pick it up the best I could.

I did more programming, mainly in the open source (to the customer) PolyForth system since it housed the H.I.S. (i worked for a hospital) and was a quite large and very integrated healthcare solution.


I loved Unix and Polyforth and when they sunset the polyforth system i was very sad indeed. I'd put 10 years into mastering polyforth programming.


I struck out on my own at the end of the decade and picked up the hospital as a client and got some other regional hospitals as well. I managed IT basically and helped them migrate to Windows. At the time their IT staffs and admin wanted Windows, i was in agreement and here we are today. Now i'm more into working with admina and dept heads on business process management projects, architecture of systems, computer or otherwise and have little hands on with IT anymore. I do have an MSDN subscription and love writing code with Visual Studio for the .NET framework.


Bottom line is i also love all technologies i have had the opportunity and pleasure to work with.


I've owned an Apple and 4 PCs personally and liked them all seperately.


As for handling each post one at a time, that's admirable and great but with someone like the OP here, it's really not doable. Some won't listen to the other side of the argument no matter.

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That's because...
iPad-awan 14th Nov 2008
the guy who sits on the board invented the internet. Of course Apple invented the on-line store.
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actually...
fzen 14th Nov 2008
I think the first major online vendor would be Amazon.com in 1995...
M$ could at least provide a discount from retail
prices!
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purrrfect!
I like the idea. It is a great idea for netbook users who want apps with out buying a USB DVD drive.
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Hurts retailers
pkatz Updated - 14th Nov 2008
Microsoft may have previously wanted to preserve their retail relationships; nothing ticks off retailers more than the supplier bypassing them, and selling directly to the customer. Best Buy, Amazon, CDW just lost some of their cut.
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Hurst retailers - more
cpr 14th Nov 2008
Competition makes the capitalist society function effectively.

If someone is competing with you, you either get out of the business (if they can surpass you), or else you provide better 'service' than the competition. You can provice better 'service' such as free technical support, free questions, exchange priviledges, better prices, free trial periods, etc.

Remember, even though Micro$oft is creating the software, they are also selling it - they are also your competion.
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The history of business is littered with the bodies of companies who "decided to cut out the middleman" to reduce costs and prices only to realize too late that the middleman was often providing substantial value (sales, marketing and support services) to their organization. If the MS Direct site is not undercutting their distribution channels on price, it makes tremendous sense for them to provide that channel.

If MS starts undercutting their distribution channel on price (to the degree that make MS products are not profitable for the distribution channel), they are making a huge mistake. When a manufacturer enters the retail space themselves at discounted prices, they harm their own sales. If the product line is not profitable, distribution will stop marketing, selling, and supporting that line - regardless of how big a name they are - and will begin marketing, selling, and supporting alternate product lines they can make a profit on. Microsoft relies heavily on a network of VARs to market and sell their server products to sMBs and to provide support to those customers.

Microsoft can enter the retail market, but their pricing in that channel must allow them to preserve their existing distribution channel of VARs.
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It's all about the MSRP.
mikefarinha Updated - 14th Nov 2008
You know you can already by books directly from O'Reilly... however most people buy from Amazon.com because its cheaper... why's that? There are certain realities that people need to take into consideration before crying foul.

This just adds one new venue for selling Microsoft products. If Microsoft undercut ANY of their resellers that reseller would immediately stop selling Microsoft's product... Imagine the loss of sales Microsoft would take if all brick and mortar stores stopped selling Microsoft products.

This is a move for Microsoft to EXPAND their coverage, they're not going to do anything to jeopardize any of their other venues for selling their products.

This is why there is an MSRP (Manufacture Suggested Retail Price). This is the price of a product that a company has determined, through their marketing research, to best fit the market segment being targeted. Microsoft will not undercut their MSRP except for maybe the occasional sale. People wanting good deals will still hunt for them, and people looking to pick up Microsoft Office along with a new laptop will still do so at places like Best Buy.

The death of Brick and Mortar has been greatly exaggerated.

Besides, I can still purchase games like Half-Life 2 at places like Wal-Mart... Steam didn't kill anything.
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RE: Microsoft launches online store
HighTechAngel 14th Nov 2008
Love it. Regarding retailers, the world is always changing. Only the strongest ones - and the smartest ones - survive.
You can already utilize an on-line purchasing utility called Digital Locker which stores and keeps your purchases for you along with the Product Key from Microsoft on Windows Marketplace.

What's the difference?
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Another great place to NOT shop
Ole Man 16th Nov 2008
We can thank Microsoft again for nothing..... unless you happen to love product keys, activation, WGA, SPP, DRM, secret forced updates and/or system configuration changes (like sneakily turning automatic updates back on), sky-high prices, BSA, outrageous EULA restrictions and Mafioso methods of enforcement, and/or other Microsoft malfeasance. THEN you have a LOT to be thankful for.

Aren't you glad it's time for Thanksgiving?
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The Grinch of Microsoft Eve.
ShadowGIATL 16th Nov 2008
LOL... you are one grouchy ole man aren't you?
Just because you hate Windows and love... whatever it is you love, doesn't mean you have to get all grouchy.

There are just as many things to complain about in Linux and OSX as there is in Windows I assure you.
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You Nailed it!
xuniL_z 17th Nov 2008
He is a grinch to be sure. And if you are new(er) here, then you've not seen anything yet.


He can turn into the crankiest curmudgeon, like you've never seen complaining about this and that all the time, like the poor guy you see on the street flailing his arms about yelling out loud to nobody.


As you can tell, he does nothing more than pee into the wind, everytime he posts.

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I'm not so new...
ShadowGIATL 17th Nov 2008
just tend to remain mostly neutral. I'm not always able to though when the Ole Bastard comes out to play.

For some reason he thinks even though I said they all suck... Windows included, that I'm some kind of undercover Microsoft supporter.

LOL, but whatever. At least I don't go around trying to give the evil ones free advertising by acting like a crazed Linux extremist.
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One question if you don't mind.
xuniL_z 18th Nov 2008
I asked it in my other long winded reply, but are going by a different nic than you used in the past? I've gone round and round with him as well, but I've never noticed your username on zdnet until recently? Just curious.


But why would you bother to use it as it is always more expensive than other outlets?????
But why would you bother .. The UK store is always more expensive than other outlets.??
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Customer Service
user support 17th Nov 2008
The economy is in a downward spiral so give a beaurocracy as large as Microsoft some credit for trying to re-invent itself. It is difficult for any company to figure out how to make improvements that are going to work.

The problem with factory direct stores usually is they don't want to service the customer however. They will sell the product at List (MSRP). If the product is defective or there is a problem with installation, you usually have to go back to a retailer or authorized service center.

Apple, Gateway, Dell, Amazon and other companies might not fit this factory direct model because they originally sold direct without using a distribution chain.

Give them a few months to see what the customer service rating is.
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RE: Microsoft launches online store: Is there deeper meaning here?
jackson1984-24316069205748857739440257893812 10th Oct
Hi there there, I witnessed your blogging site web page nfl jersey on google. I am rather glad to have observed your on line web site thinking about that I assume it'll be great! I'll without the need of a doubt arrive again all over again! Fantastic reference for my higher education pupils.

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