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Microsoft's fiscal 2010 battle cry: Growing our share

By | July 16, 2009, 8:15am PDT

It might seem ironic for a company that has cornered more than 90 percent market share in both desktop operating systems and office suites to be focused on growing its share.

But that’s how Microsoft officials are identifying their mission for fiscal 2010, which began for Microsoft on July 1. At the company’s global sales meeting, known as MGX, the week of July 20, Microsoft’s top brass is hoping to whip the sales troops into a share-growth frenzy.

Microsoft’s reseller partners got a taste of some of the sales priorities for the company during Chief Operating Officer Kevin Turner’s keynote at the Worldwide Partner Conference on July 15.  Microsoft is taking the gloves off, Turner wanted to make clear.

“We’ve got lots of competitors. We’ve got great competitors. They’re out there every single day trying to take our market share,” Turner told the resellers on Wednesday. “But you know what? We’ve got incredible products and solutions. And in each case, they’re built on that high-value, low-cost proposition with partners.”

Turner listed the companies Microsoft is most focused on taking share from in the coming year. They are:

  • Oracle (with SQL Server 2008 R2)
  • Google (with Office 2010 and SharePoint 2010 on the Google Apps front and Bing on search)
  • VMWare (with Hyper-V/Windows Server 2008 R2)
  • Lotus (with Exchange 2010)
  • OpenOffice (with Office 2010 and SharePoint 2010)
  • Apple (with Windows 7)

(I found it interesting who Turner failed to mention when talking up Microsoft’s competition. Amazon sure has a hefty head start in the rent-a-cloud space. Mozilla is sure coming on strong against Internet Explorer. Apple has Microsoft on the run in the mobile OS market. Red Hat and other Linux distributors still have a lot of mind share in key parts of the server space — in spite of Turner’s claim that Microsoft has competed really well agains “the fraudulent perception of free.”)

Turner’s message to partners in many of these cases was the competitive offerings may carry higher margins, but they are a lot more expensive than what Microsoft has. It sounds like the Softies, buoyed by the reception its Laptop Hunter ads received, is going to try a similar sales/marketing tact with SQL Server, Hyper-V and other products by touting their higher cost vis-a-vis Microsoft’s offerings.

(Speaking of the Laptop Hunters ad campaign, am I the only one who thinks Microsoft’s obsession with Apple has gone around the bend? Apple has less five-plus percent of the desktop operating system market, and, according to IDC, is now down to No. 5 among U.S. PC vendors. The majority of consumers I know who are looking to buy a new PC are either in the Windows or Mac camp when they go out to make a purchase. But Microsoft is spending hundreds of millions of dollars on Apple-focused ads and retail stores which will be located next door to Apple’s temples for the faithful. Why?)

Anyway, back to “Grow our share.” I guess “Save our share” wouldn’t have the same ring to it. But I wonder whether Microsoft’s arrows are missing some key targets and are focused too much on competitors from the past. What’s your take: Are the Softies back in fighting form or just tilting at windmills?

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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's fiscal 2010 battle cry: Growing our share
makrejktt1501-24353656047939533060703815469009 Updated - 11th Nov
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Mindshare comes first
samirsshah@... 16th Jul 2009
In past few years Microsoft has lost tremendous mindshare with mediocre products (Windows Vista, Windows Mobile)>

The slogan should really be "Grow Our Mindshare" with good products. Market share will take care by itself.
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Contributr
nice slogan
Mary Jo Foley 16th Jul 2009
I like that: "Grow our mindshare"! Maybe that'll be their theme next year happy MJ
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Do not agree..
jk_10 16th Jul 2009
I don't care how many people say it, i just don't agree that Vista has anything wrong. It is a great operating system, just as good as BillG said it was. I don't understand why Vista got such a perception.
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...that their Hyundai Pony was a wonderful car. In their minds it probably was, but not everyone agreed. Vista is the same.
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Vista is competent but clunky
Windcrest 20th Jul 2009
Vista got the perception because it is basically "clunky" whereas XP was "snappy". Vista always responded slower to clicks because of all the fades, delays and animation fluff they added. Even though it was more stable, it was perceived as clunky, and most would rather not have the fades, delays and animations be the "default".
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Break it up
prof123 18th Jul 2009
Microsoft should be broken up into at least 3 separate
independent companies. There is a chance that one of
them would do some interesting, innovative things...
Apple has gotten the attention of a generation of people who will someday be in the position to make IT purchase decisions. And when they do? Who do you think they will go with? Most likely the company whose products they have been using since grade school: Apple.

Mindshare is really important.
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Contributr
apple and mindshare
Mary Jo Foley 16th Jul 2009
Hi... Maybe that argument holds some water on the client OS side and the phone side. But Apple is seemingly uninterested in enterprise apps... databases, content management systems, true high-end server operating systems, etc.

MS seems to be really convinced that the "consumerization of IT" is putting the company's entire stack of products at risk. If they don't like Xbox, they might hate SQL Server, goes the logic. I have been a skeptic of that since Day 1 and I still am....

Thanks. MJ
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Apple chooses to be competent
chrome_slinky@... 16th Jul 2009
is just a few areas, whereas Microsoft wants to be all things to all people, and fails miserably much of the time.

Vista was a complete proof of this, and the lackluster response to much of the rest of their product line is further proof.

If it was not for the press (which I have to believe is being bought) for their latest efforts (Windows 7 and Bing) the company would be seen in an almost completely unfavorable light. It is amazing how the many adverse decisions by government entities are so quickly put into the background by continuous hammering PR about such things as "European sellouts of Windows 7 preorders".

I wonder, was the number of copies to be sold made available before the event, or was it decided sometime after calculating the apparent speed of purchase at the outset?

I have observed Microsoft for the 20+ years I have been in IT, and am not as easily impressed as those of the 'let's buy a cheap notebook computer' generation.

I also must agree with the above commenter that said that mindshare was most important - Look what Google has done with that idea. Toward that end, getting rid of Steve 'Monkeyboy' Ballmer as the face of Microsoft would go a long way.
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"Let's shrink our share!"
"Let's maintane our share!"

Seriouslly, what other way should a compny think?
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Contributr
good point but...
Mary Jo Foley 16th Jul 2009
Hi. Yes, true. I'm not suggesting MS should be complacent. But how about "Let's pick our spots." Or "let's put our money where we don't have almost any share."

MS claims Exchange has 75% of the market or so. Windows has approximately 93% of the desktop OS market. Office: More than 90% of the office suite market.... But in mobile, search/advertising, cloud, MS's share is much lower and barely holding. Yet those are the markets Turner didn't say much about those... Thanks. MJ
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Well...
ego.sum.stig@... 16th Jul 2009
Maybe they want to end their commercial life as company broken apart by regulators. Then there's the chance at the least in the dear old EC (where the beer is better, well, in parts) they might just get regulated to a standstill, or have tariffs of biblical proportions placed on them. Happy days and the like.
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re: good point but...
fme3 16th Jul 2009
I wouldn't read to much into things which arent on that list. You have to remember that the audience at WWPC is primarily Large Account Resellers - partners who sell Microsoft Volume Licensing Agreements. Though Windows Phones vs. Alternatives and Internet Explorer vs. Alternatives is an important competitive focus for Microsoft, they are two areas where a very small segment of the broader Microsoft partner community in attendance at WWPC are directly aligned to.
I am sure that you can make arguments about how Windows Phone and IE penetration have an effect on the ability to ofer the best value from Microsoft Enterprise products, but i think the conslidated list was based more on "Competitive Bets we are focused on...with You our Partner Community in Attendance" as opposed to: "This is a list of the only things Microsoft cares about".
I think they finally realize they are unable to lay idle while everyone else innovates and keeps refreshing products. Case in point IE6 and how long it took an upgrade to come around. They are falling behind and I think they are starting to realize it. Windows 7 is a perfect example of that understand as well. Make it near perfect out of the shoot and you get the interest like Windows 95 had.
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Windows 95
vilppuu@... 24th Jul 2009
was released in a totally different world - there is really no comparison.
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It is increasingly obvious that MSFT is trying to push the US Feds as far as they can before there is additional anti-trust action. This "slogan" is a clear attmept at that. MSFT may be being very foolish.
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Great article MJ
914four 17th Jul 2009
The thing that bugs me is the way they make it seem like Open Source is about vendors promising free software and then stabbing the user in the back with hidden fees.
The truth is exactly the opposite, the way Open Source works is that you get to try it and use it until you are ready to have it in production, at which point you pay for the service of getting support.
The fact is that if an Open Source project is going to fail, it's better that it fails before the client has invested the bulk of the project money, no? In the traditional model, you often don't learn that your project is missing X or won't scale beyond Y until you've spent the money on all the software (Imagine your car dealer: What? You never mentioned that you wanted a steering wheel!). And since software is the most significant cost of any major implementation, you may be stuck with a dead horse.

Just my opinion, I may be wrong.
Your statement is true for open source projects that develop a product that is widely applicable to many. But frequently a company needs a highly proprietary piece of software, and I've found the only way to get that is to pay for it. Because there simply wont be enough community interest to muster a community that will do proprietary projects for free.
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My experience has been...
914four 20th Jul 2009
...that if it's that proprietary it will probably have to be developed in house, and while it could probably be developed quicker on .NET, a good LAMP programmer can deliver a better solution in a little more time, one that may have a longer useful life but will almost certainly cost less to operate/support over time (assuming you make sure said programmer doesn't abscond with the source code).
I know of a customer who has a CNC machine that uses Windows 2000 as it's core operating system. It has a problem on the main board and needs an upgrade. They were looking at what the manufacturer charges for the upgrade to XP and are hiring a small local firm to redesign the controller using a standard PC and LinuxCNC, and they figure it will be more cost effective. You can't get much more proprietary than that...
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Which is about 85% of what we do here...nt
TheBottomLineIsAllThatMatters 20th Jul 2009
nt
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If Microsoft wants to stop losing market share at the enterprise level (Oracle/Sun, CRM, Peoplesoft, IBM, etc.) then they need to do two things, and do them fast.

1) Allow .NET developed applications to run on platforms other than Windows. The main argument enterprises give for developing in J2EE over .NET is platform flexibility.

2) Re-inforce the battle where every J2EE programmer gives the same old lame arguments on why J2EE is "better", like scaleability, memory, security. As a programmer in both, .NET can go toe to toe with J2EE on any front, EXCEPT platform flexibility. J2EE can run on Windows, Linux, WebSphere, and many others. While poor little .NET can only run on Windows, making it currently NOT enterprise-ready. Although it is certainly ready for the enterprise in every other way, and in most ways a better solution than J2EE (IMHO).

Ouch, based on their published "target" list, someone at Microsoft screwed up big time by missing this target. I know, I'm in the trenches fighting this .NET/Java battle every day in a large corporation. And a great platform like .NET is getting pushed out very hard by Oracle, IBM and Sun reps. Corporations want to run their server farms with the flexibility of any operating system, Java gives them that, .NET doesn't.

It is really a shame for MSFT to be letting .NET wither on the vine like this, as it really is a great development platform and framework.

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on your last point
tryonQc 20th Jul 2009
go to any university class room and it's more like 50% and + on market share, and I'm only talking about notebook (not including ipods), they had to do something to their image. it's not because you have a 500$ phone with a fruit on it that you're cool to paraphrase a very popular tv show
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RE: Microsoft's fiscal 2010 battle cry: Growing our share
3JG Productions Network Updated - 22nd Jul 2009
Pushing the FEDS is good! I my opinion they aren't abreast/adversed anyway, they listen to every wimp crying. This is free enterprise, and the best wins. Bill Gates vs. Steve Jobs started way back when. Microsoft vs. Apple is like, the Yankee/Red Sox/Orioles rivalry, others are trying to be competative too. And ain't the beer cold on game day? This a real IT all star game. One Motown Executive Producer, once, said, "I Loved It". My Nephew just told me he was buying an Apple computer to stop the viruses, from, infecting his computer, he has a DELL. How many others lack the knowledge about computers & gadgets, there are millions out there. The market is growing worldwide. The Big Boys (Microsoft) aren't blowing smoke, they have the figures, and know their share is right around the corner. They venture into where the revenue is, sucker the un-informed, while targeting the faithful with this is better than.
I wonder why don't they compete with Open sql
databases: firebird , maria/drizzle/mysql , postgresql
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RE: Microsoft's fiscal 2010 battle cry: Growing our share
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