Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Microsoft's Courier conundrum: Xbox approach vs. Windows vs. innovating

By | November 1, 2011, 6:15am PDT

Summary: Maybe Courier would have been huge. Then again Courier could have been like RIM’s PlayBook—a tablet that has potential but demands native email.

Microsoft’s Courier project was killed due to infighting and two visions of computing—Windows and non-Windows based—that didn’t quite add up in an integrated technology behemoth.

Welcome to big technology’s ongoing dilemma over innovation.

CNET News’ Jay Greene walks us through the inside view of the Courier project and why it was killed. Courier was this dual-screen tablet gizmo that could have hit the market about the same time as the iPad.

Xbox chief J Allard wanted Courier running a modified version of Windows. Steven Sinofsky, chief of the Microsoft Windows division, wanted Windows. Today, it’s obvious who won. Windows 8 is the PC-tablet OS. Allard has left the building.

The hang-up with Allard’s approach is that Courier wasn’t focused on email, but more entertaining sort of things. Needless to say Allard’s approach at a company that sells Exchange and Outlook was an issue.

What would you do?

Answering that question highlights the quintessential innovation problem with large companies. The choices can be stark. Protect the cash cow and fall behind. Or go for it. A startup doesn’t have these issues. A young company can just go for it. When you have billions and billions of dollars in revenue the equation changes.

Now Microsoft has navigated this balancing act with mixed results. It allowed Xbox to thrive without Windows, cooked up Kinect and has delivered a few hits. Then again Microsoft also lagged in mobile and is playing catch up with Windows Phone. Microsoft still lacks a compelling rival to Apple’s iPad.

These product innovation questions face all large companies. In fact, Apple will likely face a similar scenario in the future now that it has an ecosystem to protect as well as more process-based decision-making without Steve Jobs.

For Microsoft, the math and logic dictated that there should be one Windows for multiple screens. The logic and gut feeling that you need to storm a new market don’t match sometimes.

Only in hindsight is there a right answer. Maybe Courier would have been huge. Then again Courier could have been like RIM’s PlayBook—a tablet that has potential but demands native email.

We’ll never know.

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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.

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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's Courier conundrum: Xbox approach vs. Windows vs. innovating
spaulagain 3rd Nov
@ldo17

Funny, I've been running Windows 7 for several years and have never had a registry problem or anything you speak of. In fact, the OS has been completely flawless and maintenance free.

What Windows hassles on Windows Phone? I have a WP7 and it is an absolute dream to use. It lacks any of the problems you speak of. In fact, for the year I have owned it, it has had no problems. In contrast, my roommates Android powered HTC Evo has had countless stupid issues. The awesome 4G phone doesnt even support Wireless N with the most recent Android update.

Android is the new Microsoft in terms of software atrocities. The Windows Phone is Microsoft's first big step towards producing easy, seamless, and innovative consumer products.
If courier had come out without exchange email built into the thing then it wouldn't have gone far at all. People would have expected it, period. Like the playbook, if you don't include the very feature that makes your company strong then you're not going to go very far.
@Ididar I can't even begin to imagine a scenario where Courier could have come close to being successful.

The reason why Xbox succeeded was because of exclusive content, namely Halo. The only equivalent of a "Halo" in the productivity world is MS Office. But Allard was never interested in integrating Courier/Zune/Kin/Xbox with Microsoft's existing software. Courier would have launched like Zune as an excellent product without any exclusive must-have reason. It would have also launched like Kin and Zune without a software ecosystem. Without an app store the Courier (like the Kin and the Zune) would have been an instant failure. Furthermore it would have continued to alienate Microsoft from it's hardware partners as Zune and Kin did.

Some of the best ideas that Windows 8 has going for it have come from the work done on Zune/Kin/Courier/Xbox. These projects were definitely worth investing R&D into, but most of them were never worthy of being released as Microsoft hardware. Unless you are ready to open the platform up to software developers on day one and build a serious app store for consumers then there is no reason to bring these products to market. They weren't ready to do this with Courier and it would have been a major disaster.
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RE: Microsoft's Courier conundrum: Xbox approach vs. Windows vs. innovating
LoverockDavidson_-24231404894599612871915491754222 1st Nov
I wish Microsoft kept the Courier project around. It was new, it was fresh, it was a different way of computing. The concept of Courier was absolutely brilliant. A two screened digital notebook with unlimited possibilities. You could write in one, open vidoes, pictures, just about anything then drag it to the other. The concept videos were unlike anything we've seen before. Yes this device would have blown Apple's iPad out of the water, not like the iPad does as much to begin with. Courier would have shown us what real portable computing was capable of in a lightweight form, not some patented rectangle that's very limited in scope.
@LoverockDavidson_ Not on Windows, though. It was crippled by having to run on a system limited by drive letters, and the usual driver problem, of having to hunt around different vendors' websites for drivers for your hardware when they stop working after a system update, only to discover that the vendor won't supply a driver update because they want you to buy the new model. That, and the usual registry corruption problems necessitating a full reinstall every few months.

People don't want WIndows hassles on tablets and phones. That's why Windows tablets and phones don't sell.
@ldo17

Funny, I've been running Windows 7 for several years and have never had a registry problem or anything you speak of. In fact, the OS has been completely flawless and maintenance free.

What Windows hassles on Windows Phone? I have a WP7 and it is an absolute dream to use. It lacks any of the problems you speak of. In fact, for the year I have owned it, it has had no problems. In contrast, my roommates Android powered HTC Evo has had countless stupid issues. The awesome 4G phone doesnt even support Wireless N with the most recent Android update.

Android is the new Microsoft in terms of software atrocities. The Windows Phone is Microsoft's first big step towards producing easy, seamless, and innovative consumer products.
I would have killed the Courier in a heartbeat. Microsoft's track record on hardware outside of accessories like keyboards and mice is abysmal. They got where they are today by enabling their hardware partners to innovate, not competing with them.
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@Rich Miles

You have the facts right in the title of your post. X-Box. Hardly a dismal failure. And as mentioned, the Kinect hardware as well. The long and short of it is that it isn't simply that Microsoft doesn't do hardware right, its that they hardly ever do it at all. But when they have they haven't produced flops many times. Even many people who bought the Zune will tell you it was a fine piece of hardware but in the iTunes competitive environment it never stood much of a chance against the iPods.
@Cayble

It's the Xbox brand, not Microsoft. MS is only emphasized in a small way. They built the Xbox as a brand and that's why it does well.

Microsoft as a brand is not cool and junk in most people's mind.
Microsoft.

In fact, all of the successes that Microsoft has ever had, have been because the name, "Microsoft", has been left out of the title of the product, and so, nobody knows that Windows is a Microsoft product, therefore, it's a big hit, and likewise with the XBOX/Kinect, and Microsoft SQL is not name after Microsoft, and Microsoft Exchange is not named after Microsoft, and Bing is not branded as Microsoft, Access is not branded as Microsoft, and Office is not branded as Microsoft Office and, well..., you get the point. If Microsoft were to actually start using their name in the brand of any of their products, they'd die overnight.

Good thing Microsoft keeps their name very secret.

Most people would not have bought their PCs if they had known that they contained Microsoft software inside.

Yep! Microsoft sucks!

Wait until people find out that Hotmail is from Microsoft, and that Bing is also from Microsoft. They'll all be switching to GMail and Google search immediately.
@itguy10
"Microsoft as a brand is not cool and junk in most people's mind. "

If thats so why they sold more than 480 millions copies of their os? Why do so many kios that people use runs a version of windows? Bank atm, gas pumps, ID card wands, cable box's ect......
Courier was possibly the most innovative and fresh idea Microsoft had lately.
Meanwhile, without an application ecosystem (it was rumoured not to have 3rd party apps), without a solid
browser and decent email, it was simply doomed to a miserable failure. Just look at the Apple iPad ecosystem and you get the picture.

In this new era, single-usage portable computing devices just don't make it. As hard as it was when Microsoft killed the project, it was probably the good decision.

Now, they have to move on, recycle whatever was outstanding from Courier and deliver solid material for the Metro part of Windows 8.
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I agree
P. Douglas Updated - 1st Nov
@TheCyberKnight,

The courier was great technology, but it seemed to have limited scope and capabilities. E.g. I didn't see where it supported keyboards - even soft keyboards. This imposed limitations in a broad range of uses. Keyboard input is a fast, accurate way of inputting text into applications. Not providing it would have killed the product before it got out the door for most users. Handwriting can be an important form of data input on a computer. Users however simply aren't going to favor it over the keyboard in most situations requiring text input. Pen input on Windows 8 on the other hand can replace mouse input when there is the need for rapid and precise interactions with apps. Pen input is also good for marking up content found in apps. From content in ebooks, the browser, MS Office documents, Aiutocad drawings etc. Pen input is also good for free form note taking and brainstorming.

The Journal app in the Courier could be created on Windows 8 (or MS OneNote could be extended with Courier features) to reproduce much of the Courier functionality. Therefore I think it is better for MS to incorporate Courier features into Windows 8, which can reproduce and extend the Courier experience in one or several apps, as well make many Courier features available to countless apps in the Windows ecosystem - broadening the appeal of the technology.
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Did you watch the videos?

It was a specialized niche product for design folks that need a visual journal/scrapbook with sharing capabilities.

Really, I don't understand why people say this thing would be a hit because it was targetted to such a small audience. Unless every positive reviewer with a blog space considers themselves a worthy artsy-fartsy designer....

REALITY CHECK: Microsoft is finding it hard enough to just get people to use OneNote, and you expect that this would be an overnight success? All the bloggers continually pan Tablet PC's for using a stylus too, even though the top-selling portable game handheld uses one in a completely unnatural, unergonomic, and stupidly unnecessary way. The same ones that echo that touch input is more natural (because Steve Jobs said it in a keynote for the iPhone). These are the people that say that Courier should've been made.
@Joe_Raby And Steve Jobs only said that because he could never get Newton to work.
@Joe_Raby

You're correct in saying it was targeted to a niche designer market, not the mass general consumer market that's buying iPads for consumption now. We also have to wonder what the total cost would have been with dual 7" screens and all.
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um, it may useful to remember...
ShazAmerica Updated - 1st Nov
that courier was vaporware. A slickly produced CGI mockup. You know it's funny, CGI can you make you believe incredible things, like dinosaurs really roam a place called 'Jurassic Park' or that the Golden Gate bridge really did fall to pieces in 'Final Destination 5'.

CGI can also make you believe that Microsoft had a tablet that had good, slick innovative software.

One last point. Look at the new Hawaii Five O. In it, you see the 5-0 team using what looks like a Surface table and 'swiping' images off the table's surface and it swipes onto a wall mounted monitor. Looks cool...but if you watch the interview with the special effects guy behind the scenes, he's using video produced from a Mac to fill those video screens. Its all smoke and mirrors.

Remember when Microsoft demoed the XBox and it was found to be a Mac hidden under the table producing the graphics?

Courier was vaporware, didn't exist. Get yourself a real, working tablet like an iPad and be done with it. Stop always wishing that a convicted criminal like Microsoft is going to make the next big thing and it will be a iPod, iPhone, iPad, etc killer. It never is. Accept it, get over it. Apple attracts innovative hardware and software employees, MS attracts stagnant, conservative ones without an innovative bone in their body.
@ShazAmerica

Get yourself a real, working tablet like an iPad and be done with it.

Maybe I don't want a damned iPad.

@ShazAmerica Oh yeah. Microsoft hired Apple to build the fastest selling electronic device in history.
The courier was an actual project, which was killed due to conflicting interest.
Microsoft probably (according to you) hired Apple to build the most stable mobile OS called Windows Phone Mango.
Bill Gates admitted in 2007 the Original Xbox used the same hardware as older Mac Towers, because according to you Apple hates Microsoft so they did it out of spite. Microsoft bought Apple Mac Computers to program the XBox because it had similar hardware.
Microsoft and Apple have worked together for ages, probably before you were even born. They innovated on each others ideas and even helped each other out in a pinch.
Sorry but like Steve Jobs said 'The idea that Apple will succeed when Microsoft fails is a flawed and stupid one. Apple would be the one to fail if they took on Microsoft that way'
Period.
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They did the right thing.
BillDem 1st Nov
Nobody would have bought Courier. It would have cost a fortune because the screens are the most expensive part. People are already complaining about tablets which cost more than $500. Microsoft did the right thing by killing it. They will simply take the good ideas out of that program and put them to use elsewhere.
I believe that the Courier and a Win8 tablet could have coexisted. Allard wanted a content creating device, the iPads of the world are content consuming devices. He wanted to create a whole new market, not try to fight off the iPad. It was pure innovation. It is to bad Microsoft couldn't understand that it wasn't meant to replace/change Win8 or their core business, but be something different like Xbox.
Was a shame but had to be done.. I'm eagerly awaiting a Win8 tab though so I can sell my ipad2 on eBay happy
a nickel and then, you'll have lost all of its value.

wink
The problem with Courier was the same problem faced by all Allard's products, they were islands. Xbox didn't work with Windows, Zune didn't work with Xbox, Kin didn't work with anything but Facebook, and Courier would not have worked with any other products.

MS is a platform company. Coming out with Courier and not having an email App let alone an App store, or an SDK and no integration with other products would have embarrassed MS in the face of the iPad. This would have been a dual screen Kin.

In my dreams, Courier is an dual-screen, note-taking, angry bird slinging, emailing, web-browsing, ass-kicking, iPad killing, super device... In reality it sounds like it was a portable OneNote with a Web browser... no apps, no integration, no platform. This can be copied in Win8 with software and I hope they build something better.
@uberlaff

I think your point about the island is correct. According to other articles, Bill killed the concept when he found out that it was pretty much a one-trick pony. MS is a company that is interested in integrated products, not islands. If Allard was pushing an island then he was in the wrong company.
It was the right decision to make at the time. To be a success and impact Microsoft's future, it needed to be a full feature device which isn't what the team desinging it envisioned. There was a lot of potential so I hope they reconsider it as a Windows 8 device. It'd be nice if the content authors of the world had a device for what they do.
that there was something more to it. I bet future versions of windows phone, xbox, tvs, etc will be built using windows. It's modular, compact, secure, robust, and supports adding feature modules to fit the product need.
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Does it really matter now?
jscott418 1st Nov
So Micromanagesoft killed the Courier because it lacked a full experience. I think most of us can agree that would make sense. The real problem is that these two competing ideals should have decided on paper and not after months more of R&D. Settle on one ASAP and start getting it out the door. Now yet again Micromanagesoft is behind the curveball.
@jscott418 No, the research and development of courier is something Microsoft now can utilize in future versions of Windows. Even if research only finds out what can't be done, it is still useful.
There is no reason that could not add email to courier and use a touch keyboard or a slide out keyboard (left and right halfs). Other than the keyboard and having two screen panels, there is no reason they could not do this with Windows 8 with Metro.
This article is a complete waste of time.
From Wired: "When Gates heard about the Courier tablet from Ballmer, he felt it was a piece of kit that wouldn't sit well within Microsoft's software-led ecosystem." --- Anything that threatens Windows and Office internally dies a quick death within Microsoft.

Contrast this with Steve Jobs and Apple. Imagine Jobs killing off the iPad project because it did not sit well within Apple's multi-million a year Mac ecosystem. Because it was going to be a threat to the Mac business. Apple would stop being that innovative company that transforms industries. There would be no consumer tablet industry like it is today, no Galaxy Tab and all the other clones that cropped up since the iPad's success. There probably wouldn't have been any Metro-style Arm tablet discussions within Microsoft . Ballmer would have continued to laugh off any such Windows-less market.

The iPad is now flourishing within its own ecosystem and helping to usher in the digital transformation of magazines, newspaper, eBooks, and cool tablet specific apps. A true Post-PC mobile device. The Mac btw also continues to flourish; it just had a record quarter.

"The successful company is the one that intentionally obsolesces its own products before a competitor can" . Apple is a company willing and bold enough to eat its own to evolve. They were willing to sacrifice the iPod line when they introduced the iPhone with the same iPod functionality. The iPod Touch came out and were also intentionally cannibalizing the iPod Classics when the standalone MP3 market as a whole was in decline. Now the Touch is the hottest selling iPod. Apple did not wait for another company to eat their own when the market was transforming, they did it themselves!

Apple at one point pulled the hottest selling iPod off the market shelves (iPod mini) just to replace it with a then unproven iPod Nano, which btw instantly became the new hottest seller. Time after time this company proved it is willing to eat its own to stay ahead. Looks like Microsoft and company will go down with the titanic (Windows). At least in the consumer mobile market. Windows will be their achilles heels.
@dave95.

Your post makes no sense. The iPad fit perfectly within Apple's ecosystem. It blending right in with iTunes and used the same OS as all the other devices. That is a flawed comparison to the Courier and MS.
Microsoft already had Exchange ActiveSync by the time this would've launched. Why wouldn't it have had Exchange support?

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