Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Microsoft's iPad software barrage: Reality meets business savvy

By | December 13, 2011, 10:23am PST

Summary: Microsoft realizes that it doesn’t dominate computing anymore—especially the mobile world. That reality is running into another key fact: Microsoft applications are everywhere.

Microsoft has launched software for Apple’s iPad at a blistering pace of late and there’s some consternation about whether these moves are wise.

First, Microsoft realizes that it doesn’t dominate computing anymore—especially the mobile world. That reality is running into another key fact: Microsoft applications are everywhere.

In other words, Microsoft’s plans to launch iPad versions of OneNote, Lync and SkyDrive, which isn’t optimized for Apple’s tablet, is just smart business. Simply put, the killer app on a single platform days are over.

Mary Jo Foley noted:

My contacts seem somewhat divided as to the wisdom of Microsoft’s decision to deliver many of its key software and services for non-Windows platforms — and especially for Apple’s platforms. Microsoft is a software vendor, and has shown increasing interest in porting its wares to many of the leading platforms as a way to make money and appease customers who aren’t Microsoft-only shops/households. Some maintain that Microsoft should keep its crown jewels as Windows/Windows Phone-only products to keep users from having yet another reason to defect.

I am in the former camp. I believe the days of killer apps running on a single platform are over, though the Windows team seems intent on trying to revise this business model with Windows 8.

Going forward Microsoft should go crazy on Android too. It should be on every platform that has a lot of users. There are no guarantees that Windows 8 tablets will be a hit. Should Microsoft flop at tablets it’ll at least have a presence on the major platforms. If the single platform integration dance works on tablets for Microsoft that’s just swell. If that approach fails at least it’ll have its bases covered.

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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's iPad software barrage: Reality meets business savvy
symbolset 14th Dec
@aureolin The strategy really was to reserve the apps for their own phone. Since that didn't sell phones, a change to your answer seems plausible.
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Microsoft and Apple
WebSiteManager 13th Dec
Anyone notice that Microsoft and Apple aren't suing each other, at least not in a big way? They appear to be aiming for peaceful coexistence, at least at the present.
@WebSiteManager Been that way since MS bailed out Apple in the 90's.
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They made a grip of money, and buying someones stock doesn't send the money to the company, it goes to the previous stock holder, Doh!
@jgoode@...
@GoPower are you so unaware to know that corporations retain a certain amount of their shares so that they can sell them to raise capital. In this case the previous stock holder was Apple.
@GoPower

It was a good investment for MS but keep in mind if they didn't invest then Apple had a good chance of going bankrupt back in the 90's. I am also pretty certain part of the deal of Microsoft investing all that money into Apple back then was that Steve Jobs got his job back and it was him that brought the company back to life.
@jgoode@...
Quote an internet article:
http://www.wired.com/thisdayintech/2009/08/dayintech_0806/
...In a remarkable feat of negotiating legerdemain, Apple co-founder Steve Jobs got needed cash ??? in return for non-voting shares ??? and an assurance that Microsoft would support Office for the Mac for five years. Apple agreed to drop a long-running lawsuit in which they alleged Microsoft copied the look and feel of the Mac OS for Windows and to make Internet Explorer the default browser on its computers ??? but not the only choice...

Bailed out, I do not think so. During that time Apple was flush with cash, but as with many companies they needed even more. One other thing, why do you think Windows looks so much like the Apple GUI?
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@BubbaJones

You forgot the most important line:

1997: Microsoft rescues one-time and future nemesis Apple with a $150 million investment that breathes new life into a struggling Silicon Alley icon.

Flush with cash? I don't think so. And this whole Windows copied the MacOS GUI is as false as Samsung Copied the iPad design. Sure they have some similar elements but what GUI OS doesn't. They all have desktops and file systems represented by files and folders but it doesn't meant they copied it. Apple just likes to think it invents and innovates everything when the truth is they borrow, copy, buy, and steal from other companies just like the rest of them.
@jgoode@... It's been a long while but I thought that the money also came with a cross licensing agreement between them. Can't sue each other easily.

I may be wrong, I can't find reference, just a memory of those days.
@WebSiteManager exactly, MS and apple have historically been competitors in the tech industry, not in the court system. so all these apps going in the Apple App Store is not a sign of ANYTHING because it's the same with MS office being on macs.

Larry Dignan, i think i might have to call you out on FUD, because though microsoft doesn't have huge marketshare in smartphones right now, everyone knows they just made the most modern mobile OS we've seen today. to deny that it deserves more marketshare is wrong
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@kidjenius

..sometimes being the "most modern" still isn't much of a difference from the mainstream, and in the perception of users, if mainstream is good enough and it means not having to switch, they'll stick with what they know..

This was great for Microsoft when the desktop was the be-all and end-all of computing.. In mobile computing, it's going to prove to be an uphill battle..
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Since when....
cosuna 13th Dec
@kidjenius :awesomeness or modernness gives you marketshare....

Else we all be using BeOS, or UNICOS [the Unix clone on Cray supercomputers] or even OS/2, for that matter, which beat Windows 3.1 on all counts.... except it had no software, it had massive hardware requirements and was severely limited at first on its driver support... sounds familiar...
@WebSiteManager

Apple and MS are frenemies from way back. They usually figure out the licensing and who owns what behind the scenes.
@WebSiteManager

"The enemy of my enemy is my friend"
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@dave95.

There is a world of difference between "The enemy of my enemy is my friend" and "The enemy of my enemy is my ally".

Friends are forever. Allies are--disposable
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Well they are and are not direct competitors...
Snooki_smoosh_smoosh 13th Dec
@WebSiteManager... Yes they compete in terms of OS and Productivity Applications, but on the flip side of that coin, Apple has a Hardware Business, Microsoft not so much. So it really is in both companies interests to work together for mutual gain. It is a real world example where one doesn't have to blow the other into oblivion to be very successful.
@WebSiteManager

They reached a multi-billion dollar settlement. Same will happen with Google/Apple. Tim Cook is more pragmatic than S. Jobs and will gladly take Google's money.
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Office Mac has been around forever
happyharry_z 13th Dec
@WebSiteManager Office is a standalone product. It makes sense for them to go after a healthy market. It has nothing to do with competition at the OS level.
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@WebSiteManager
but it looks like they're getting back top what really made them as big as they are - software.

And they all had a coexistence with Apple. For MS it was another platform to make money from, just like iOS is turning out to be.
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It's not about the bailout
Joe_Raby 13th Dec
@WebSiteManager

Microsoft doesn't have many shares in Apple anymore.

They both signed cross-licensing agreements long ago though. Apple is still a big Microsoft partner, and vice-versa. Microsoft makes Office for the Apple, and Apple makes media properties available on Windows. There are patent litigation protections fed back and forth between them too, and Microsoft also protects their own partners from patent litigation involving Microsoft's software (unlike Google with Android). Microsoft licenses Apple technologies, and Apple, in turn, licenses a lot from Microsoft. I'm sure there isn't really a monetary value assigned to these exchanges, so long as commitments to support the alternate platform are met and there are no hostilities between the two companies. More and more, this is what Microsoft is looking for: innovation, with patents being the proof and litigation being the security of said innovation. If they innovate and protect their IP, they would expect others to do the same. Exchange of patent licensing is healthy, so long as you don't use someones patented idea without remuneration.

Here's an example of an exchange that might happen though:

Company A comes up with idea X and builds it into the core of their product and patents it.
Company B comes up later with the same idea and attempts to put it into the core of their product.
Company A can choose to license the idea to Company B, or Company B can innovate their own idea.
Either way, both companies are doing things legally. If litigation is required because Company A chooses not to license the technology and Company B doesn't want to pay, it may force Company B to come with with idea Y instead.
Company A and Company B can then cross-license both ideas. No money necessarily needs to be exchange. More choice is available. And consumers win.
Microsoft dominates desktop/laptop commuting but not mobile: smartphone/tablet computing. So the article is at least half correct.
Google always made apps and web apps for iOS. But everyone knows that to really experience the Google universe you need to purchase a Google branded phone. Why couldn't Microsoft do the same?
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Except that...
Snooki_smoosh_smoosh 13th Dec
@dave95. Microsoft Office 2011 on OSX really is exceptional software, and actually it is better for Microsoft to develop good software on other platforms as this leads to a better company image on product. If I had two versions of software one for OSX the other for Windows and I severely crippled one version or the other in favor of an OS, the reality would be that users would avoid the software all together.
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@Snooki_smoosh_smoosh

"If I had two versions of software one for OSX the other for Windows and I severely crippled one version or the other in favor of an OS, the reality would be that users would avoid the software all together. "

Except that even today, the proof is right out there between the Windows and Mac versions of Office. There has always been only a small subset of the Windows Office software available for Mac, and of that subset, some major functionality is often missing (think about Excel or Outlook integration with Sharepoint, integration with Exchange that matches Outlook for Windows, Project and Visio being unavailable for Mac).

And yet, the crippled software for the Mac is still one of the most popular Mac titles available today.
@daftkey

Word, Excel, PowerPoint, and Outlook are all great software on OSX, I can't say that I have noticed missing features.

Sharepoint integration operates a little differently on OSX but it is there, and it even connects to SkyDrive.

I do view the titles differently compared to the whole suite offerings. What Mac Users get is what could be considered the Student Home version of office or Standard, although I do have to say that in a couple of ways Word 2011 is more functional than that of Word 2010 on PC, and that is only in that some of the functionality of OneNote and Publisher is built into Word 2011, not a separate package, although a full on version of OneNote would be appreciated....

Yes you are right in that not all titles are offered, but the ones that are there, are pretty close to being the same for most users.
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I think MS's moves are wise...
theFunkDoctorSpoc 13th Dec
iOS users are very loyal.. the chance of getting those people to defect to Win8 are about nil.. not so with Android.. if Windows 8 gets traction it will be against Android not Apple.. so it's wise to port apps to iOS (since not really competing for these users) and leave android out in the cold since these are your potential users going forward with win 8.
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Microsoft is a software company...
esdrasf@... 13th Dec
I think they're finally getting what Steve Jobs said, they are a software company. That's where they shine. Regardless of what anyone thinks, Microsoft software is everywhere: their operating systems may not be great, but their software is.
@esdrasf@... home users. Windows 7 is a good OS, but I just don't know many people who would want to pay more that $50 to upgrade it from a previous version. With sub $500 machines out there, it makes no sense to pay $120 to upgrade an OS.

They really should take the focus to expanding the productivity software out to other platforms, coupled with the cloud services they offer would make people buy more of their software, especially if they start kicking out titles that run not only on OSX, but Android and iOS which are the major players, and of course their own WP7.
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In the Beginning..
oraman 13th Dec
Microsoft made hardware for the macs long before it make software for the mac. I thinks one of the first products they made was a memory expansion board. microsoft has supports macs in some fashion since the early days of both companies.
Frankly, I could care less. I don't support Microsoft in any fashion. They don't get a dime of my money.
...so why retrict LOB app development to crappy Metro?
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I agree with the strategy: make money.
MeMyselfAndI_z 13th Dec
Make money when your competitor makes money and do it at lower cost and higher profit. Just make the best most desirable apps and leave the competitive and low profit margin world of hardware. Successful companies make a profit. It really doesn't matter if your #1 as long as you have cash flow and profit. You can even begin to duck under the radar and avoid a lot of attention while you watch others duke it out in the limelight as you wait to pick up the pieces. It seems MS may be headed in that direction at least somewhat.
Or any other MS software for any other non MS platform. Are people saying MS has office for mac "in case PC's don't make it"?. No. That's how stupid saying they're making this software available for ios in case windows tablets or windows phone doesnt make it is. They have absolutely nothing to do with each other.
People forget that Microsoft is made up of smart people. It doesn't take a rocket scientist to figure out that if you want people to convert from IOS to Windows 8 then you make it easy. And, the easiest way to do that is to have the same applications available on both systems.
@aureolin The strategy really was to reserve the apps for their own phone. Since that didn't sell phones, a change to your answer seems plausible.
Which they've been making for over a decade and is generally acknowledged as the product that kept the Mac alive during the 90s...

Seriously - step back and look at the big picture. Microsoft is a business - not a person. It does what is best for profit and at the moment, iPads are hot and are in starting to show up in enterprises... 1+1=2. And they already had a template: Office 365.
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No comment from Loverock????
ZombieSteveJobs 13th Dec
I bet he's FURIOUS that Microsoft is cowing to Apple's dominance in the mobile industry, and Office for iPhone/iPad will further cement that dominance...

NO BRAINSSSS Loverock..NO BRAINSSSSS
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Completely agree
Nihon8888 13th Dec
If cloud is the future and MS want to be a dominant cloud player they should support all their solutions with cloud integration on as many platforms as possible. OS business will become a commodity with low margins. Platform proliferation is good for MS.
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It makes sense...
wright_is 14th Dec
Microsoft have a lot of server side products, which Apple doesn't have.

They have a large market share in servers.

These products (SkyDrive less so, but Lync and OneNote) work best when combined with MS server products.

Add into the mix, that a lot of executives are getting iPads and work with Windows and Windows Server, it makes sense for MS to support these users, so that they don't start to wander off and look for alternatives, like Evernote, which work on the iPad and on the Windows desktop, thus reducing the need for those server products.

SkyDrive works similarly for private Windows customers. Many have a Live account and iOS devices. Putting SkyDrive on them tempts them to stay with the Live Cloud, instead of moving to the iCloud.

This would be no different to Apple making a MobileMe or iCloud tool for Windows users with iPhones and iPads... Oh, wait, they did do that.
Well, I'm thrilled over the SkyDrive app. I'm pretty much heavily invested in the MS ecosystem having had Windows phones for many years. But I do have an iPad and having access to my SkyDrive account so easily just makes sense to my life. I like my ipad and DropBox is ok but Skydrive works much better with my windows phone and I can share photos and videos with my husband more easily. Kudos to MS.
Seriously, I'm buying an ASUS Tarnsformer Prime the day after Office for Android is released.

And, BTW: one neat thing about Android. Because the OS allows you to install applications from "other sources" Microsoft could, if it wanted to, avoid the Android Market altogether and sell only from its own Andoird App Store (and keep all the profit).

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