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Microsoft's latest Google-compete weapon: The Gmail man

By | July 28, 2011, 9:24am PDT

Summary: Microsoft managed to keep its 12,000 or so attendees of its annual Microsoft Global Exchange sales conference from tweeting and blogging company secrets last week. But at least one enterprising attendee managed to grab one of those infamous sales videos that the company loves to show at these events.

Microsoft managed to keep its 12,000 or so attendees of its annual Microsoft Global Exchange sales conference from tweeting and blogging company secrets last week. But at least one enterprising attendee managed to grab one of those infamous sales videos that the company loves to show at these events.

On July 20 during the MGX opening sessions, the Softies showed off their “Gmail Man” spoof, meant to spur the troops selling Office 365 against Google Apps, and specifically, Gmail. In the video, Gmail man riffles through mail to find keywords for serving up ads. The message: Google cares more about advertising revenues than privacy.

Remember the whole “Gmail ads learning from your inbox” thing?  Google has acknowledged that Gmail scans content and context of email as part of its ad system. And just today (thanks to @johnobeto), I saw this story about a reporter’s Google+ experience setting off more privacy alarm bells. (Makes me glad I’m still taking a wait-and-see-if-it’s-still-around-in-a-few-months approach to G+.)

I asked Microsoft whether the video is legit and received an official no comment. I have to say I think it’s the real deal. It has all the hallmarks of a real Microsoft production, including the fact that the name on the company doors that Gmail man opens when visiting an office is  Contoso Ltd. As Microsoft customers, partners and watchers know all too well, Contoso is Microsoft’s favorite fake company name, and is used in demos for all kinds of Microsoft products.

Here’s the Gmail man video clip, which the aforementioned attendee shared with me and gave me permission to post on YouTube and share:

The punch line: “Your email is your business. Google makes it theirs.”

There’s been a lot of back-and-forth between Microsoft and Google in the Office 365 vs. Google Apps cloud app-suite debate. The two have taken pot shots at their competitor’s feature set, uptime record, pricing models and more. They’ve also both taken to publicizing their respective customer wins/steals from one another.

The thing to remember about Microsoft MGX videos are they’re just a means of revving up the sales troops. — kind of like what Chief Operating Officer Kevin Turner did with his one-liners at Microsoft’s recent Worldwide Partner Conference. They are NOT meant to be a sales tool for customer calls. (Fixed. I forgot the word NOT in my original.)

Still, it’s interesting to see what the Softies are focusing on, in terms of their sales messages….

Update (July 29): Google officials want it known, for the record, that there aren’t ads in Google Apps for Business. “But admins can choose to enable the ads if they want- some find them useful,” a Google spokesperson noted.

See also:

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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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star7690 23rd Feb
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Plain and simple.
your docs? wake up!
@Johnny Vegas
If you read his comment he is not specifying either company. Truth is they both probably rifle through all of your docs.
@Johnny Vegas ... to use almost any online service in existence you have to agree to ToS that state that you grant them that right, payed or not, you give them the right to look at your stuff.
They don't read your email, they simply don't allow you to do anything that is not Apple driven.
It's the OS for the insecure little people who think Papa Jobs running their virutal life is just the sh*t.
Now I didn't say they can't think for themselves. But since I can think for myself, it sure does seem like that is one of the motivating factors for Apple fanbois like you.
ha ha. Just kidding there Ricky. Don't go into super Apple RDF defensive posture.
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@Johnny Vegas Nice try at distraction, but what is to say that Microsoft doesn?t do the exact same thing? Who is to say that the ISP doesn?t do the exact sa m e thing? The best thing is to not put company sensi tive document in the ?Cloud?, no matter who is hosting it. This reminds me of the iPhone funeral that Microsoft hosted, only to see iPhone outsell WP7SOS phones 1,000 to one.
Still, it???s interesting to see what the Softies are focusing on, in terms of their sales messages???. Research Paper
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@Johnny Vegas very interesting... this is what i think, a U.S. based company or is wholly owned by a U.S. parent company, is vulnerable to interception and inspection by U.S. authorities. Shellac and Sulfate free
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@Bruizer

do you watch those free channels in TV? or are you begging to pay for those free channels?
@lanjian45

Nice attempt at deflection but it was a FAIL.
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Miserable fail.
Cayble Updated - 29th Jul
@lanjian45

Get real. If CBS, NBC or ABC are scanning what I'm watching on TV so they know what ads to funnel to my television thats a new one on me.

Further, television shows are content produced and provided by the television stations and the very same shows are for public viewing by everyone who can receive them. Email is content produced by email account holders and are intended as a form of private communications, not for public consumption of anyone who can get their hands on it.

The situations are so different its incredible. No analogy there of any real kind.
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I think his point was
sehamon 29th Jul
@lanjian45 that if you don't pay for your product, you get used a guinea pig. Cable networks track all of the shows you watch on cable with or without your permission, so that they can hit you with more targeted advertising. Nothing on the level of Google, mind you. But if you pay for a subscription to a premium channel, no need to track what you're watching, they just have to look at the subscriber list, and they know exactly how many people are paying for that channel. I think it all amounts to the same thing though.
@lanjian45
You now have one wrong. (audience.. Awww). Would you like to phone a friend?
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@Bruizer Worse still, I happen to know someone who was hiring a high level programmer and Gmail ran an ad of their very own in the emails saying they (Google) were recruiting programmers with exactly the skills and gifts that matched this programmer based on the information they derived from the emails. They ran these ads through the entire course of correspondence between the company and the prospective employee (I know, I saw them). Brutal and in the real world highly illegal.
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The ad is misleading
HellRazor909 29th Jul
@Bruizer
However businesses can turn the ads off -- that's one of the things businesses get by paying for Google Apps. So there's really no advantage for Microsoft's Office 365 here.
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RE: Microsoft's latest Google-compete weapon: The Gmail man
FuzzyBunnySlippers Updated - 29th Jul
@HellRazor909

Clever wording but I'm not falling for it... you've weaved around the issues with too vague of statements.

"The ad is misleading"... first, it's not an ad. Second, turning off resultant ads from collected information only cloaks the fact that information is still collected. If there were a concrete method to definitively opt-out of such information collection, then there would be no advantage for Office 365. Can you show me that opt-out method, if not for home users, at least from business users?
@HellRazor909 Indeed, completely misleading.
@Bruizer True that!

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@Bruizer awesome video.. this kind of infringement is only going to increase in the future. specially with google+ coming up up with live video chatting (hang outs).

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@Bruizer
Good point. It is only wise to know both - which side my bread is buttered, and also, which side my opponent butters theirs. Only then can you discern their motives.
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Very funny.. it does make sense..

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It does make sense.. a capturing ad with funny actors. I think that they don't look, they randomly guess what you're looking for, based on your emails.

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I don't see the fun of it...

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@Bruizer indeed. simple as that.

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by a Microsoft employee in order to start a viral campaign.
Ouch. Them's fighting words. But it's true. Google's "shoot now, ask questions later" approach to privacy is why I avoid their services.

What's in my mail/documents/data is of no concern to Google (Or anyone else for that matter) or it's ad business.
0 Votes
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I agree.
WilErz Updated - 28th Jul
@ Cylon Centurion

I avoid Google's services for the same reason, and also because I dislike the advertising model in general. Naive people think advertising-funded services are free, but the cost is actually just hidden, and spread across the population. The services are directly funded by advertising, i.e. by firms that buy ads. The money they pay for ads, in turn, is recovered from consumers, via the prices of the goods/services they sell. In effect, all prices are made a little bit higher so that advertising firms can collect rents.

A successful advertising platform like Google's effectively forces everyone to pay for the 'free' services that are indirectly funded by advertising, even those who never use them. In many ways, it's like a tax, except that the public don't get to vote on it. The reason is that firms that buy advertising services (from Google or whomever) gain a competitive advantage over firms that don't, effectively forcing all firms to buy advertising services (even if it would be socially optimal for none to buy advertising services).

There are two clear problems with the advertising model. First, by disconnecting prices from services, it breaks the market mechanism, which may lead to inefficient allocation of resources. The true cost of an advertising-funded email service, for example, might be higher than the average consumer would be willing to pay. Under a functioning market, consumers wouldn't buy something with a price above the value they derive from it, and it would cease to be developed. Under the advertising model, however, consumers are unable to make this choice: if the service is an effective advertising platform, it will be developed and consumers will essentially be forced to pay for it.

The second problem with the advertising model is its potential to drive overconsumption. Advertising can serve a purpose, by informing people about goods/services that meet their existing needs/wants, but it can also create new needs/wants, and drive unhealthy behaviour (especially when targeting vulnerable groups like children). The most advertising-driven society in the world is the United States, and from outside it certainly appears to exhibit clear symptoms of overconsumption: everything from widespread obesity to an exceptionally low level of saving. Is excessive advertising at least partly to blame? I think a case can be made that it is.
@WilErz
"it's like a tax, except that the public don't get to vote on it" - You mean it's exactly like a tax.

Be careful, you almost sound like you're against capitalism. happy
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You mean like...
cosuna 28th Jul
@rynning | @WilErz | et al:

....the windows tax... the one you didn't voted on but was levied on you just because Microsoft was a monopoly...

Now they say that they are confidential... secure... trustworthy... dream on... you could have pull this off on the '80s, but not today...

...besides, Facebook era Y-Generation is accustomed to people prying on their data... aka, remember the "Patriot" Act...

Tough luck selling to that iPad, ?ber-open generation.
@cosuna Hmmm, funny but I dont recall anybody forcing me to pay for Windows. But I can guarantee that the if I dont pay my taxes, the men with guns will come to collect.

Be careful, none of you really sound like you understand capitalism.
@WilErz

You'd better not watching TV or reading any newspaper since you are also paying 'tax' for them.
@WilErz
Someone please make delusional MS fanboys understand the internet is basically ad supported. Try as I may, I can't seem to succeed.
0 Votes
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Yes.
WilErz Updated - 29th Jul
@ cosuna

Yes, Microsoft's pre-1995 licensing practice was similar to a tax too, but on a vastly smaller scale: the 'Microsoft tax' only applied to Intel PCs, whereas the 'Google tax' applies to goods and services all across the global economy. This tax-like pricing structure (or zero marginal pricing) was a factor in the FTC's decision to open an investigation of Microsoft in the 1980s, and was a major factor in the 1994 consent decree between Microsoft and the USDoJ, which abolished the 'Microsoft tax' from 1995 onwards. One hopes regulators and competition authorities are giving Google a similar level of scrutiny today.

One of the strangest things about the 'free software' zealots is their excessive focus on the past -- a sort of 'time warp' effect. They bang on endlessly about things Microsoft did 10, 15, 20 years or more ago, whilst turning a blind eye towards potentially anticompetitive behaviour from other firms (like Google) today, especially if those firms (e.g. IBM) have thrown a few bones to them. Their intellectual inconsistency is also apparent in the way they get worked up about Microsoft's IP licensing, whilst ignoring IBM's very similar IP licensing strategy, which is considerably larger and has been going on longer (indeed, Microsoft's IP strategy is a direct imitation of IBM's, and was even designed by the same former IBM employee, whom Bill Gates convinced to come out of retirement).

Microsoft's licensing policies in the 80s and early 90s seem to be particularly interesting to the 'free software' zealots, and the most extreme examples speak/write as if it were still 1994. To a non-zealot, old case studies from the 80s/90s are interesting, but not that interesting. The difficulty the zealots have in distinguishing between 1994 and 2011 is also something that isn't often found outside the zealot community. To non-zealots, what's happening today is much more interesting than what happened 15 or 20 years ago.
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hi
star7690 23rd Feb
I am happy to find your distinguished way of writing the post. Now you make it easy for me to understand and implement the concept. Thank you for the post. Concrete Coating Dallas

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