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Hardware 2.0

Adrian Kingsley-Hughes

What could Microsoft bring to the PC hardware business?

By | September 8, 2008, 10:55am PDT

My ZDNet blogging colleague Ed Bott has an interesting blog post which asks the question “Should Microsoft get into the PC hardware business?” I want to turn the question around and ask “What could Microsoft bring to the PC hardware business?”

First off, let’s not kid ourselves as to the influence that Microsoft already has on hardware, through OEMs. Also, let’s not forget Microsoft epic fail when it came to the “Windows Vista Capable” program which was supposed to make sure that PCs sold with XP would later be Vista capable. This was the program that was described by one Microsoft employee as follows:

“… based on the objective criteria that exist today for capable even a piece of junk will qualify.”

So, the first thing that Microsoft should bring to the PC hardware business if it decides to enter that market is honesty. With the Vista Capable logo Microsoft put the interests of hardware vendors over that of the consumer, and the consumers ended up paying the price. That was a bad move. If what Microsoft has planned is more labels printed with hollow promises, I think we should all just say “no thanks” right now and let the OEMs carry on doing their stuff.

OK, let’s put the Vista Capable debacle on one side and assume that Microsoft would approach any future hardware-related projects much more honestly and openly. What could Microsoft then bring to the PC hardware business?

I have to say that I agree with Ed that the idea that Microsoft would compete directly with its own hardware partners doesn’t make much sense because the risks would outweigh the rewards (in particular the risks of alienating vendors, and the risks of legal hassles). But what about a “designed by Microsoft” PC based on Microsoft’s own reference designs? Overall I can’t see much point because hardware changes so rapidly and reference designs would quickly become outdated. However, a “designed by Microsoft” PC could be interesting during the first few months of a new OS as this is the most critical time for OEMs and the time that they need the most help to get things right. At the very least it might provide a baseline for OEMs to work from.

However, there are downsides to any “designed by Microsoft” PC program. The main drawback is that Microsoft would be encouraging OEMs to adopt a “one size fits all” set of PCs where internally the OEMs would be selling pretty much the same PC and purchasing decisions would be based on:

  • Price
  • What the PC looked like (what a sad criteria for choosing a PC that is)
  • Bundled stuff

This “one size fits all” set of systems works for Apple and the Mac OS, but partly that’s down to the fact that you can only get a Mac from Apple (I am, of course, temporarily forgetting about the Mac clones for a moment …). Extend this idea across half a dozen of the big OEMs and pretty soon everything starts to taste like beans.

Better than get into the PC hardware game, I’d much rather see Microsoft get tough with the OEMs with regards to minimum performance standards for new PCs (how about that for a valid use for the Windows Experience Index). At the same time it would be a good idea to crack down on PCs loaded to the brim with crapware, something which doesn’t win Microsoft any favors because when a new PC feels sluggish, people blame Windows rather than the crapware. This would do far more to improve the end user’s Windows experience than licensing reference systems would.

How about a sticker telling the user what Windows Experience Index score the system received? Or a “crapware free” sticker?

Thoughts?

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Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology.

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Adrian Kingsley-Hughes

All opinions expressed on Hardware 2.0 are those of Adrian Kingsley-Hughes. Every effort is made to ensure that the information posted is accurate. If you have any comments, queries or corrections, please contact Adrian via the email link here. Any possible conflicts of interest will be posted below. [Updated: February 23, 2010] - Adrian Kingsley-Hughes has no business relationships, affiliations, investments, or other actual/potential conflicts of interest relating to the content posted so far on this blog.

Biography

Adrian Kingsley-Hughes

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Adrian has authored/co-authored technical books on a variety of topics, ranging from programming to building and maintaining PCs. His most recent books include "Build the Ultimate Custom PC", "Beginning Programming" and "The PC Doctor's Fix It Yourself Guide". He has also written training manuals that have been used by a number of Fortune 500 companies.

Adrian also runs a popular blog under the name The PC Doctor, where he covers a range of computer-related topics -- from security to repairing and upgrading.

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RE: What could Microsoft bring to the PC hardware business?
wjbyman@... 11th Sep 2008
No way would people buy Microsoft PC. The computers would be designed to to not function on anything but genuine software, microsoft or otherwise. Then you will have a boat anchor!
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Funny, much of the things you are ...
ShadeTree Updated - 8th Sep 2008
... blaiming Microsoft for in this article were caused by us PC OEM's. We were the ones that insisted the Vista capable logo included hardware that met lower price points. We are also the ones that load the crapware. So you see, your latest anti-Microsoft rant is a little off point!
the OEMs to say what they are delivering, and also, specifically state if they put crapware on the system. Yes, MS was so totally focused on getting Vista on as many computers as possible that they looked the other way, and even HELPED OEMs sell computers that really would not satisfactorily run Vista.
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Not what he said!
ShadeTree 8th Sep 2008
"Also, let?s not forget Microsoft epic fail when it came to the ?Windows Vista Capable? program which was supposed to make sure that PCs sold with XP would later be Vista capable."

The part where he says "Microsoft epic fail" shows who he blames. He later talks about wishing Microsoft would get tough with the OEMs. There is only two problems with that, the DOJ and the fact we are customers. The anti-trust legislation prevents them from punishing us for what we put on our systems. Getting tough with your customers only works when you are a monopoly.
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But they could enforce minimum performance criteria. I don't see why they can't enforce a minimum index score in order to qualify for a sticker.

I suggest that every OEM PC should get a score of say 2.2 on the index score (exact number can be negotiable, but it should also be reasonable) as shipped (which means there needs to be a benchmark that takes crapware into consideration, and I am not sure if the current one does). So since that does not single any software vendor out, there is no anti-trust issue.
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They use to mandate performance ....
ShadeTree 8th Sep 2008
... prior to the DOJ versus Microsoft. The arguement goes like this; Since Microsoft is a monopoly and without their software or sticker I cannot compete not giving me the sticker puts me at a competitive disadvantage. If Microsoft were not a monopoly the with holding of the sticker would not be material.

In reality Dell and HP tell microsoft what hardware they want eligible for stickering and Microsoft complies. The other way arround would be the tale wagging the dog!
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perhaps then
Badgered 8th Sep 2008
The sticker could be required to show the performance index of the PC being purchased.
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I would say the buck stops at MS.
TripleII-21189418044173169409978279405827 8th Sep 2008
I appreciate the candor on what caused the problem, but MS was faced with a conundrum. Obviously allow XP to be sold on the deprecated hardware, and only offer Vista on the "premium" hardware. That puts MS in the unenviable position of admitting, literally, at release, that Vista required much better hardware.

So, in the end, MS chose, as a business decision to, well, deceive (harsh word, but can't think of another one that is nicer) with the Vista capable stickers.

In the end, MS has the right, and probably the duty to tell OEMs, no, we won't do that, sell it with XP, we will only sell Vista on really Vista capable hardware.

Now, one factor which MS probably didn't account for was crapware. I have no doubt they tested much of the hardware in house, however, they didn't account for the 15-75% slowdown that the most crapware laden PCs have to endure.

So while I do see and appreciate how OEMs helped facilitate, I still say MS can't really pass the buck here.

TripleII
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The way things look
GoPower 8th Sep 2008
People choose everything, at some level, by the way they look, why not computers?
What are you toting around a brown Zune?
competition. With that, they keep the hardware manufactures working like slaves, and keep them from getting any power. They also get a lot of innovation for the platform that their OS runs on.

The only reason for MS to get into the game is to drive innovations that are good for MS, but not necessarily good for hardware manufactures. Also, anything that makes MS look more high tech or cool would be good (think surface computing). Car manufactures do this all the time. They sometimes make very little money (or even lose money) off of the low volume sports car, but it builds brand image.
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Wrong
soonerproud Updated - 8th Sep 2008
Well, MS already has what they want! Paper thin margins and firece
competition. With that, they keep the hardware manufactures working like slaves, and keep them from getting any power. They also get a lot of innovation for the platform that their OS runs on.


The free market and fierce competition is the reason why margins are so small on today's PC'S. Microsoft has no say in what the OEM's actually charge on the hardware. (Nor have they ever had a say on how much to charge for the hardware.) The proof of this is Apple and their tight control of both the hardware and software. This is why Apple is able to charge so much more for the same hardware that you would get on a PC.
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You are right, and it is time for innovation.
TripleII-21189418044173169409978279405827 8th Sep 2008
Honestly, what really is the difference between a 15.4" laptop with 2 gig from Acer vs a 15.4" from Dell. It is very hard to differentiate when everyone gets their displays, memory, processors from the same vendors, and the OS from the same vendor, and it looks the same, feels the same, etc. In terms of PCs, except for maybe some custom icons and support channels, they are all pretty much generic. That is literally why margins are so thin.

Asus is thinking Splashtop instant on. That's something that can bring a small premium. Sony is going crapware free (on their most expensive, but it is a good trend) which can bring a small premium in the overall market. The UMPC market, using innovation to take $188 worth of components and cram them into as small as possible.

It honestly is time for vendors to get creative. Nobody is going to really stand out when 18 vendors do, literally, the exact same thing.

TripleII
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Oops. btw, you are both right.
TripleII-21189418044173169409978279405827 8th Sep 2008
As of right now, MS is happy with the very thin margins. It means the advertising incentives and any other perks of installing Windows is a HUGE (in proportion) amount of the bottom line. Crapware is the other (maybe Shade can tell percentages). So, with margins at an all time low, it takes a LOT of will and risk to think about even moving slightly away from MS.

So while MS inadvertently helped drive margins down ( a side effect of enforcing Windows only for all these years, meaning differentiation is hard for the vendors), I suspect that they do like being critical to most OEMs bottom lines.

TripleII
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And the OS price
deaf_e_kate 9th Sep 2008
is now very close to the hardware price especially with the possible $99 pcs coming out of China. They maybe forced to lower their OS price as to not be embarrased by the OS costing more than the hardware. As the hardware gets cheaper the margins get lower for the OEMs.
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You're a little off.
ShadeTree 9th Sep 2008
Using the cheapest hardware combination available the hardware still comes to about $ 200. OEM pricing for Windows is substantially less.
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True but the OS price is now high
deaf_e_kate 9th Sep 2008
when compared to the hardware price..
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Yes, that's what this story implies.

Microsoft is a marketing-driven company. As such, the
quality of its offering has dropped. The X-Box, the Zune,
the accessories, etc. are all pretty much "also-rans".

The Microsoft strategy of the future has got to be some
product or service they can bill for monthly or annually.
Google will soon be doing an OS any computer can use
and when that happens, the pressure at MS will really be
on.

I think MS peaked with Windows 98. XP is a big success,
no doubt, but it's not a great OS, it's just a great
incremental improvement.

MS is not a breakthrough, thought leadership type
company. It is a marketing company. Better it find
something good to market.
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They Could Use It To Eat Apple's Lunch
chessmen Updated - 8th Sep 2008
Right now, one of the big reasons people want a Mac is they can run both Leopard and Windows on the same machine. If Microsoft suddenly took Apple's approach, then Microsoft would create an OS that they insisted only run on THEIR MACHINES. It would be bye-bye to Mac dual boot machines. This would hurt Apple.

I can't say it would do much for the consumers at large; as Apple's business model is harmful to the consumer. If everyone followed it, then I guess Dell, HP, Gateway, and IBM would all have to come up with their own operating systems; or embrace linux in a big way; or go out of business.

Currently, the best software being made is open source. Examples include Firefox and Chrome. For this reason, I don't really care if Microsoft starts making their own computers or not. I do hope Psystar wins their lawsuit against Apple though.

I wonder what it would mean for hardware sales? Could we still build our own machines? Would a Dell hard drive be any different than a Microsoft hard drive? Would we need 16 different versions of a given video card to match all these different operating systems? Yuck!
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It's irrelevant
j.m.galvin 8th Sep 2008
Umpteen zillion governments, worldwide, would jump all over MS if it attempted to enter the computer
hardware business.

MS's prior antitrust adventures with the
U.S. and the E.U. would be like a walk
in the park compared to what they'd
face upon entering the hardware
business.
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Microsoft already
soonerproud 8th Sep 2008
manufactures pc hardware including some very nice peripherals like mice and keyboards. As long as Microsoft does not use it's monopoly in software to lock out the competition, there is nothing any regulatory agency can say if (and this is a really big if) Microsoft ever decided to produce it's own branded pc's.
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designed by M$?
Linux Geek 8th Sep 2008
If that is the case, it will be a race to the bottom do differentiate since it's the same 'design'.
No sane OEM would sign up on that!
The only thing that might work would be some 'endorsed by M$' logo + some fee paid to M$ to 'validate' the design.
and i think that is currently lacking with vista. Vista is expensive and a resource hog. It makes pc's cost more than it should. MS need to hone there os and only make one version that is cost effective like it use to be.
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MS Bailed Out Apple 11 Years Ago
djchandler 8th Sep 2008
Even though they've divested of the non-voting stocks acquired at the time, they're still paying for that mistake.
150M is not much for companies already working with billions?

Not to forget (at the time) they needed other commercial corporate interests in their on going monopoly trial, as well as having MS Office/IE for Mac? And appearances??

OR maybe it was to hire back Steve (the jet) ?
It is not like MS is not involved already with hardware at various levels, none with the same success as their previous successes/money cows, Like 98, XP & Office.
Things like;
MS UltimateTV
MS WebTV
MS SmartDisplay
MS TabletPC
MS MCE
MS Surface
MS HomeServer
MS WinMobile
MS Zune
MS Xbox
Etc, etc....

All interesting for their time, but none quite the success as they previously experienced.
I think because they are centered around a MS-only ecosystem (pyramid-scheme) and some/more people are becoming more aware.

An earlier poster pointed out MS has always been more a marketing than tech company, selling MS as a successful tech company.

Then there is the issue with there success, resources & influence how they effect the industry. ODMs & OEMs and how systems are made available & advertised.

Consider Bad BIOS (DSDT) or the need for non standard proprietary drivers or even the idea of Driver Loaded Firmware. Whatever happened to Plug-n-Play?

Anyway with the news HPaq may be interested in releasing there own OS (not like they have never done that, HP/UX, True64. DEC/VAX NewWave etc)
it would seems various pundits think MS should answer with a broadside?

What I think is more interesting is how ODMs & OEMs are takeing the same advantage as large/small corps & institutions, by either using Linux or threatening to use Linux as a negotiating chip.....?

MS needs: Partners, Customers and to interoperate with them & alternatives properly...
go figure?
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One chipset labeled Vista Capable was a failure. I use a Thinkpad running XP, Vista Ultimate and Ubuntu. It's is labeled Vista Capable and it runs great with Vista. It has a core duo Intel processor an 2 GBs of ram and works fine There is little if any noticeable difference in the performance running Vista versus XP.
That said MS should let its partners develop the hardware, they should be more stringent in their security requirements though.
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MS needs to understand their business model
frgough Updated - 8th Sep 2008
The vista certification nonsense happened for a reason. MS
makes its living off of OEM sales via PC manufacturers.

They can't limit the PCs that Windows can run on in any way,
shape or form.

Therefore, the smartest business decision MS can make is to
pour as much money as possible into streamlining and
tightening Windows so that it will run quick and speedy on the
most barebones cheapest PC on the market. Even if it means
hand-coding the OS in assembly.

The next thing they need to do is find a way to lock the OS to a
given PC, so that if you want a new Windows, you have to buy
a new PC. When the new PC costs $399, this is a small pill to
swallow. Most people buy a new PC on a 3 year cycle anyway,
about the time MS releases a new OS.
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Accessories
dunraven 9th Sep 2008
There are plenty of people who love Microsoft's keyboards and mice. Microsoft could build a number of other great accessories.
It wouldn't even be hard, since MSFT has all the elements lying around waiting to be put together - the xBox 360 itself, the xBox/Zune media download Stores, Windows Media Center, and Silverlight as a "cloud OS". Put them together along with a Blu-Ray player (or if MSFT doesn't want to play nice w/Sony, not), and you have a game console/DVR/media server/basic PC - all in one convenient box that runs off your HD television monitor!

That little toy would accomplish everything Ballmer's flailing about to do in his desperate and failing attempts to buy Yahoo - it would succeed at being the all-in-one home media center&computing box the AppleTV, Ryoku, TiVO and even WebTV tried to be. Attach a BlueTooth keyboard and trackpad, and you can surf the Web, write e-mails, do homework, edit Office documents...and then play your favorite game or watch a movie, all w/out leaving the comfort of your family room.

THAT is the "MicroSoft Hardware PC" that people would buy - even I'd buy one, and I have no love for Darth Ballmer's minions!
No way would people buy Microsoft PC. The computers would be designed to to not function on anything but genuine software, microsoft or otherwise. Then you will have a boat anchor!

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