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Microsoft CFO: Cross-platform services key to Microsoft's Windows 8 iPad-compete plans

By | February 15, 2012, 2:38pm PST

Summary: Microsoft’s CFO said common consumer and business services running on Windows 8 and other devices will give Microsoft leverage against its tablet competitors.

One of the perennial questions about Windows 8 — and one that many Microsoft watchers asked yet again last week after Microsoft’s latest disclosures on Windows on ARM — is what the Softies think they have to one-up the iPad.

Many believe Office will be Microsoft’s trump card, especially given Microsoft’s plan to “include” four Office 15 apps on Windows 8 ARM tablets and PCs. But if Microsoft ends up fielding Office for iPad, as rumored, that advantage may be moot.

During an appearance at the Goldman Sachs Technology & Internet Conference on February 15, Microsoft Chief Financial Officer Peter Klein offered some more color on Microsoft’s plans to stand out from other tablet/PC competitors.

Services, including search; various consumer and enterprise cloud services; and entertainment services like those provided by Xbox Live are going to be key differentiators, Klein said, and will help drive device pick-up with Windows 8.

Microsoft has a growing set of both kinds of services that it will provide to users at home, at work and at play. As Microsoft officials have said before, the grand plan is to offer a core set of services across all kinds of screens: Phones, PCs, tablets and TVs.  Microsoft also plans to offer its users common calendaring, email, photo, music, video, gaming and communication services, he said.

The “most fundamental service (category) across devices is communication,” Klein told Goldman conference attendees (and those of us watching via the Webcast). Skype extends mail, messaging, voice and video, he said.

Office is another such category/set of experiences that will span all kinds of device types, he said. When asked whether Microsoft was planning to provide Office on iPad, Klein simply said that Microsoft believes it has a “great tablet experience with Office.”

In related news, Microsoft is planning to detail more about its cross-platform Xbox Live development strategy at the upcoming Game Developers Conference (GDC) in early March in San Francisco.

On March 6, there will be a day-long event aimed at “professional developers who build games and entertainment applications for Xbox 360 and Kinect, Windows 8, Windows Phone, and the web,” according to a Microsoft blog post.

“Developers will learn about the new Windows 8 Metro style application platform and new Xbox LIVE services that deliver breakthrough entertainment experiences across all of Microsoft’s entertainment platforms,” the post added.

A deep dive on Xbox Live on Windows 8 — an app Microsoft officials showed off at the Build conference last fall; asynchronous gaming; storing game data in the cloud and “entertainment reimagined” are all on the March 6 agenda.

Back to Microsoft’s cross-platform/cross-device services message with Windows 8. The common services idea is definitely a new tact for the company, in terms of its iPad-compete strategy. With Windows 7 tablets, Microsoft attempted to play up the lack of enterprise management functionality as the main leverage point it had against the iPad.

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: Microsoft CFO: Cross-platform services key to Microsoft's Windows 8 iPad-compete plans
His_Shadow 19th Feb
@RF68 It's called "wireless". it's been with us for a while. Apple pioneered it in laptops. Blithering about dongles and adapters and gee gaws to emulate your desktop is to miss the whole damn point of mobile technology.
So Microsoft is going to resort to dumping to gain marketshare? I believe that will garner scrutiny from the DOJ.
@Joel-r Maybe after the DOJ is done looking at the anti-competitive nature of Apple's iTunes Store. One option for a payment processor (Apple) who charges a 30% fee and does not tell me who the customer is that bought my product.
@ccrockett@??? Leveraging a monopoly like position in one area to gain a monopoly like position in another area is what got Microsoft in trouble he last time. The fact that they are going to do it as soon as Government Oversight ends, indicates they did not learn from the last time they were punished for doing the same thing. Did they think that His Royal Highness Obama, the Arab, changed the laws ?
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@ccrockett@... in regards to Apple taking 30 percent. So I guess every other store in the world like Best Buy, Macy's, grocery stores, gas stations, etc...etc.... promote and sell other people products for free? Heck, any retail store you could possibly find marks up their products over 100%. So everyone else gets a pass except Apple? Not a very well thought out if you ask me.
@ccrockett@??? as opposed to the Amazon store taking 30%, or Microsoft???s App store taking 30% and selling the customers name to whomever will pay for it?
@Joel-r
The whole premise - How Windows 8 competes with the iPad - is faulty.
iPad is a hardware/software tightly integrated package. Windows 8 is only software. They can never match the user experience on the iPad, which is optimized on both levels...
@prof123

No, they can't match. They can make it a lot better. Microsoft has specific hardware specifications for tablets to help control that user experience and keep it up to par no matter what tablet you buy. Plus it gives people options without sacrificing usability.

In the past, I would have agreed. But Microsoft has learned this over the past 10 years as the see Apple growing rapidly. They understand the level of user experience people are beginning to expect. They intend to execute that. Once they do that and unify their products Windows, WP7, Xbox, Office, SkyDrive, etc. They will more than compete, they will dominate.

The iPad is a niche market toy. Windows 8 on Tablets/Convertibles will replace Netbooks and Laptops which is all most people need these days.
@spaulagain

55 million is a nice niche to be in.
@prof123
So You say, in your opinion???
@spaulagain A "niche market toy" that has outsold all tablets to date, even those clunky Windows based crap piles that people still think are so important. When you deride a massive and growing market as a "niche", it can be safely assumed you either have no idea what you are talking about, or for some petty reason dislike Apple so much you are willing to look stupid to mock Apple. Which is it?
@Joel-r
"the Arab"? Really? He's not. And if he was, what would be the problem?
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There are so many things MS could do ...
P. Douglas Updated - 15th Feb
... directly, or partner with other companies to accomplish, which would add significant value to services such as Xbox Live, and revolutionize entertainment at the same time. E.g. MS could provide infrastructure that supports the formation of singing / comedian / talent shows, in which independent and established artists are brought on every week. If a show is a singing show, and an audience member likes a performance, he could instantly download the artist's song, pause the performance, go instantly to the artist's Xbox Live experience to explore and maybe purchase additional songs, videos, concert performances, merchandise, etc. The audience member could alternately have the Xbox Live service send a reminder in the form of the artist's Xbox Live experience, being featured on his home page. This arrangement would allow artists to experience bursts of IP sales, whenever they appear on a show. MS would benefit by taking cuts of these transactions. Radio stations and video channels could operate very similarly.

Another important arrangement, is having artists place ads for their songs, albums, or Xbox Live experiences on the web, and in other digital publications, in order to boot strap sales and interest. MS could even come out with a Craigslist type of service, in which artists advertise their IP, and users are able to search through and watch free performances, and explore the artists' Xbox Live experiences - in hopes of generating sales for the artists. I believe the above would be great for artists, and would lead to the distribution of wealth seen in the rest of the economy, rather than what we see in entertainment industry today.

Another neat concept I believe, is one called virtual live performances, in which MS (or partners) set up template services that a group of individuals could use to create live virtual performances for sale. Say e.g. a group of American Idol alumni wanted to put together a live concert in a studio. They would be able to go into a studio, and produce a live performance they could sell to their fans. The studio would make it easy for them to advertise the performance, produce the IP, sell access (e.g. $5) purchase the performance, have audience members instantly buy their songs / albums, and link to their Xbox Live experiences, etc.

There are a lot of really great things which can be done on Xbox Live, and I hope we get to see them in the future.
@P. Douglas Microsoft wants to charge, while serving up ads. Kind of like the cable channels do. Why are they charging as much as they do, and subject people to stupid ads?
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How much is MS ...
P. Douglas 15th Feb
@Joel-r,

... charging?
Why was Skype even mentioned? The iPad already have Skype, and plenty other video comm. services. XBox live on tablet and phones is a big meh, I'm still waiting to see the "breakthrough experience", besides the syncing of game data etc. May see some sales for MS Office in the enterprise but I just don't see it as something consumers will be looking for when buying tablets. Plus there's options for iPad users to use Office if they need (OneLive Desktop, Remote).
@dave95. Skype was mentioned because MS now owns it, and it sounds like they will probably find ways to integrate it across all of the core MS experience. Xbox Live on tablets and phones isn't "meh" for Win8. The same games that devs develop for xbox live arcade will be able to be ported to both phones and tablets. And Onlive Desktop and Remote are crappy sluggish ways to "use" your MS Office suite on your tablet, and in absolutely no way compete with a dedicated app suite for your device.
@drunkenscholar

Remote desktop to MS Office is a very viable and fast solution if you use the right software such as ThinServer XP
@drunkenscholar

The same games that devs develop for xbox live arcade will be able to be ported to both phones and tablets.

You mean developers will be porting great XBox Live games like Call or Duty, Battlefield 3, Halo to WOA tablets and WP7 Phones? Will these tablets and phones handle the graphics these games require? Don't think so. We are talking metro-style casual games here, the Angry Birds, words with friends etc, a whole different set of gamers from your typical XBox Live target. No one will be playing Halo on their XBox and then continue where they left off on WOA tablets or phones, it definitely wont be the same experience. But it all sounds great in theory. And in marketing speak.
@dave95
Xbox Live Arcade games would be the likely candidates, not full on Xbox 360 games. If you have ever played some of the better Xbox Live Arcade games, you'd understand why this is a big deal. They are excellent.
@kris_stapley@...

There's some awesome games on iOS and the iPad also and the graphics are amazing. There's so many more titles than XBox Arcade. I am just trying to figure what will set this WOA tablets apart from the iPad and other tablets. I don't see anything groundbreaking here to cause iPad users to want to switch platforms.
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Im sure i will love xbox live on Win8
Emi Cyberschreiber 15th Feb
Crossplatform gaming, finally thats the best part!

if Microsoft gets nice developers to make nice games crossplatform Xbox PC ( like they tried with 4 games) it would be amazing for gamers, well thats what i want since we will have Xbox live in Win8. so i can play with my friends even if i dont have an Xbox close to me.

Xbox live has a lot of future for Microsoft products if they get it right i mean with any type of games, nice studios, from casual games to ******** games, Microsoft will get alot of 35+ million Xbox live users on board of win8.

yeah im a gamer so i care about that, but Xbox live user can be used for alot of nice things to make great experience on across Micrososft Products.

Hopefully we can have Xbox live on Win8 Consumer Preview.
@Emi Cyberschreiber Dude what the hell are you takling about.
Ahhh...fool me once shame on you....fool me twice, ahhh can't fool me again (ala George W Bush). All was to be revealed at Build now I have to attend a another conference to learn more about building Metro Apps and games for Windows 8. I think I'll save my money this time.
@windowseat That one was about how to develop Windows 8 app and this one is about what Microsoft is going to offer to end users to have better experience.
I don't see your point.
@nimatra I guess he wasn't listenning carefully!

@windowseat Perhaps you should review the Build conference videos.
is this means Microsoft want to be doing everything for consumer & Business.

Hardware, Software & Services

Xbox 360, Gamepads, Kinect, mouse, webcam, ....
Windows, office, Lync, exchange.....
Skype, Xbox Network.....

getting more complicated
@swisslakes

What's so confusing? The idea behind Windows 8 is not make separate devices for consumers and businesses but one device for your life - for work and for pleasure.
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You've perhaps hit in the biggest reason
ego.sum.stig@... 15th Feb
For W8 to be DOA. All things to all people doesn't fly well.

That and Microsoft still has to convince/bribe/threaten the hardware folk to make sure whatever they put together in W8 actually works (well). And I guess the same applies to the hardware folk. They need to get Microsoft into the game a fair bit more in terms of what actually is needed. So far, it all seems to be wishy-washy, drip feed to all.
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@smulji Microsoft cannot cover everything to everyone very well.I do realize that is their goal, but I do not think they will succeed
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Very risky
johnfenjackson@... 16th Feb
Sounds an aweful lot like an iPad, Fire or Chromebook talking to cloud services to me.
M$ is way behind in all those technologies.
"what the Softies think they have to one-up the iPad".

Simple, the possibility of replace aging XP laptops and desktop that can connect to legacy hardware i.e. printers and scanners. Oh and they will have at least one USB port so you can transfer your pictures from your digital camera to your PC.

Try doing all of that with an iPad without the need to buy additional expensive add-ons!
@RF68 Agreed. People have become so accustomed to Apple's closed enviroment they forget the basics that they cannot do. What to copy files to a USB drive? Sure! Want to print to that printer over there? Sure! Want use that DVD-Rom and install some software? Sure!
@ccrockett@??? you cannot do those things with Windows? I thought Windows was the end all-be all OS? I can actually do all those things with Linux, OS X, and even Windows.
@ccrockett@... Want to leave 1995 and move forward? Sure! Here's hoping those Win Tablets have PS2 ports!
@RF68

Try doing all of that with an iPad without the need to buy additional expensive add-ons!

Not expensive. One can get a camera connection "add-on" for as little as $7 for the iPad. The good thing about the iPad being so popular is there will always be plenty of accessories for it.

http://www.buy.com/pr/product.aspx?sku=224756885&sellerid=22498279
@dave95. Now you need a propriotary adapter for the iPad instead of using something standard like a simple USB adapter that I got for free with the camera. What about legacy hardware like printers and scanners. Will I need to buy an adapter for that too?
@RF68 It's called "wireless". it's been with us for a while. Apple pioneered it in laptops. Blithering about dongles and adapters and gee gaws to emulate your desktop is to miss the whole damn point of mobile technology.
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Vista 2.0
SamWilkinson 16th Feb
Bank on it.
@SamWilkinson
Good thing MS is handing out the consumer preview for free so people can try before they buy. By the way, your bias is showing. Might want to cover that up or people will disregard your comments as trash as they have been all along.
Its a Windows everywhere world. Microsoft is playing it smart here, going after business and home users so they get both markets.
Did anyone else notice that the post today about the Windows 8 esq, Mountain Lion had few Apple fans participating? The talk was less than a full page??? Yet here they are aurging about Windows. You guys giving up on your flagship toy??? What's a guy to do about getting an argument about Apple copying Microsoft??? Scheesh!
No, the key to the success of the LoseDoze Operating System (O/S) is the INNOVATION and INTELLECTUAL property that Micr0$uck$ brings to the table. As the company that invented the personal computer, the high-level O/S, the GUI, you would expect only the best. It is the one and only O/S that can install the internet and browse the web and point and click and cut and paste and multitask and do all of the things that are so DIFFICULT if not outright IMPOSSIBLE to do with any other O/S.

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