Microsoft's Windows 8: Coming to a smaller screen size near you?
Summary: Tami Reller, one of the pair of Microsoft execs running Windows, provides a few new insights into what's happening -- and coming -- with Windows 8 and Windows RT.
Microsoft's new Windows management team is coming into its own.

Last week, I met with Tami Reller, the Chief Financial Officer and Chief Marketing Officer for the Windows/Surface teams. Reller was on a New York City tour, meeting with financial analysts and press. Reller is one of the pair of execs running Windows, following the departure from Microsoft of Windows President Steven Sinofsky late last year.
My sit-down with Reller -- my first meeting with Windows management in a number of years -- was more interesting for the between-the-lines tidbits and nuances than it was for the parade of PCs and tablets that she and Aidan Marcuss, Principal Director, Windows Research, pulled out of their bags to show off.
Here are a few of the topics upon which we touched during our conversation:
How well is/isn't Windows 8 selling? Reller didn't veer from Microsoft's message that Windows 8 is on pace with Windows 7 in terms of number of licenses sold during its first few months. (Microsoft sold 60 million Windows 8 licenses to OEMs and to consumers as upgrades by early January 2013, officials have said. ) But she did share one new metric during our meeting: OEM revenue Microsoft is deriving from sales of Windows 8 is even with OEM revenues garnered from Windows 7 licenses sold during the same period of time. We don't know if Microsoft charged OEMs the same per copy for Windows 7 and Windows 8, but the implication is OEMs are buying Windows 8 licenses at the same pace as they bought Windows 7 ones.
A Windows 8/Windows RT 'mini'? To date, word was that Microsoft didn't see a need for tablets and PCs with screens smaller than the 10.6-inch Surfaces. Microsoft's stance was tablets = PCs and thus must be able to do all consumption and creation tasks that "real" PCs can do. When I asked Reller last week about the possibility of 7-inch "mini" Windows 8 and Windows RT PCs, I received a less rigid answer -- more along the lines of "let's see what customers want."
Windows 8 was designed to run on smaller and bigger screens and at different resolutions. The underlying app-platform/app model is what enables this, Marcuss emphasized. So, again, no announcement today, but it seems as though one or more Windows 8/Windows RT "mini" tablets are likely waiting in the wings ... making rumors of products like a 7-inch HTC tablet and the rumored Xbox Surface more believable.
First-party Windows 8 and Windows RT apps: Yes, Microsoft knows that Mail/Calendar/People and Xbox Music on Windows 8 and Windows RT need real work, and not just a few minor updates. Reller didn't share any kind of time table as to when these apps will be updated in a significant way. But it was encouraging to hear that Microsoft is committed to making these "first-party"/built-in apps best-of-breed. Happily, the team isn't pretending these apps are good enough.
Where are all the Windows 8/Windows RT PCs and tablets? Why, more than three months after Windows 8 "launched" (and about six months after it was released to manufacturing) are there still relatively few new Windows 8/Windows RT touch tablets and PCs available to consumers? OEMs have known for years what Microsoft was planning for Windows 8. So what happened? Reller isn't attributing the relatively slow ramp-up to any kind of components shortage. She said the Windows team is trying to figure this out themselves. She said the team is looking at every communication between the OEMs and Microsoft during the Windows 8 development period. Was there a program, a campaign, a missive that would have convinced OEMs to put more muscle behind touch sooner rather than later? Reller said the team is looking into this.
Reller emphasized the positive: The number of Windows 8 certified devices (1,000 at launch in late October) is now double that. Lots of new Windows 8 form factors from Lenovo, HP, ASUS, Acer and others are coming to market in the Febraury-through-Spring timeframe, she reiterated.
The Microsoft/Intel relationship: "It feels like we're doing better aligning with Intel on messaging," Reller told me last week. For a while, it's felt as though Microsoft was highlighting its work on Windows RT and ARM to push Intel to speed up its chip-delivery timing. Now that the Intel Core i5-based Surface Pro is poised to start shipping on February 9, the Wintel partnership seems to be back, front and center, in Microsoft's positioning and thinking.
The Windows distribution connundrum: While Microsoft is continuing to staff more Microsoft Stores, the pace is still too slow for those of us who consider Best Buy, Staples and other retail chains not-so-optimal showcases for Microsoft's and its partners' hardware and software. But the Windows team seemingly isn't writing off these other retailers. "We need to get Surface RT and Surface Pro in retail and do it really well," Reller told me. She said Microsoft believes it can make the buying experience in retail chains a positive one for those shopping for Microsoft and/or OEM PCs and tablets.
I haven't seen customers busting down doors to buy any kind of Windows 8 or Windows RT PCs or tablets in the admittedly small number of retail stores and Microsoft Stores I've visited. Reller said Microsoft has seen the dynamic for PC purchasing changing. The retail store experience is more of an exploratory/educational "try-before you buy this online" one, these days, she said. (Not so different from what's happening in the book-selling world.)
There you have it. No earth-shattering revelations (sorry, Windows Blue watchers). But still good to have a chance to ask questions and get some answers from the Windows brass in person.
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Talkback
The most intersting part:
That is rather astonishing. My assumption is that you would never turn down a meaningful invitation, but I assume you are not about to write a blog on THAT subject. ;-)
I believe it was MSFT that was shunning Ms. Foley
Indeed
Check out this link for a copy?
I can't vouch for this being what you are thinking of; let us know?
It appears to be...
Are you suggesting that.......
Hmmm. Could there be a correlation between that and MS not doing so well?
How about it Mr. Ballmer, is MS an arrogant bully?
MS not doing so well?
At some point in your life..
Classless
It takes one to know one!
Most interesting part for me...
Every point of yours is skewed or wrong
And it's not like Windows 7 was not put on new PCs "whether people like it or not". Or Vista before that. Or XP before that.
Really, I think you need to realize that your obviously biased opinion that Windows 8 is somehow "bad" is wrong, as proved by hard sales numbers.
Just because a bunch a biased tech writers want to take Microsoft down a notch by constantly slamming Windows 8 doesn't make them right. So don't believe them just because they say it.
When Windows 7 . . .
A great many people had avoided buying new PC's specifically to avoid Windows Vista. That included home users and businesses.
It took around two months to demonstrate that Windows Vista had fixed the major problems that Vista had. Then, the floodgates opened.
Now, in contrast, as time passes, the demand for Windows 8 systems seems to be declining. Corporations largely are avoiding it. Consumers are also avoiding Windows 8. sales are actually below the levels seen for Vista.
Microsoft needs to fix the complaints people have about (I am not)Metro. The Preview releases provided a large amount of feedback. Microsoft knows what people dislike.
When Vista was released, smaller computers came out, Netbooks running Linux. They typically sold out. But, they were only offered on the lowest margin machines. The party line was that they were being returned in large numbers, but, review of the return rates from that time shows that the return rates for Linux Netbooks were right in line with overall computer return rates. What actually happened, was that Microsoft, to prevent a large influx of Linux powered machines, offered XP licenses at a drastically reduced rate, along with the usual policy of charging the manufacturers for the total number of PCs sold, not the total number of instances of windows installed.
Now, this history is repeating itself. Google has released two free operating systems that can fill the niche for a small computer for limited tasks. These machines are less expensive to produce than are the Win 8 RT or Pro lines. They are also much more similar to the machines that the users are used to.
Just like the Linux Netbooks sold out as quickly as they could be produced and stocked, the newer Chromebook and Android devices are flying off the store shelves as fast as they can be manufactured. Then, Microsoft could use questionable and illegal licensing deals to eliminate the threat, but, now the threat is from bigger players who have already noticed that close to 10% of their total sales are in these upstart systems.
Microsoft has to quickly offer something that is both less expensive and closer to what the customers are used to, or the monopoly is broken. Once that happens, it's over.
Microsoft would continue, of course, but they would be only half the company they now are. Without the monopoly on Windows, Office becomes vulnerable. Without those two monopolies, the rest of Microsoft's products would have to survive on their own merits.
X-box lost well over ten Billion before it ever broke even, and the rest never have broken even. Even X-box loses money some quarters.
A Microsoft without a monopoly on the desktop would be a totally different company than we have seen since 1982. No, Microsoft absolutely has to fix the problems that plague the Metro ecosystem. They no longer have the option of having five years to get the bugs out.
I believe that we will soon see inexpensive licenses of Windows 7 to stem the tide of Apple and Linux (Android). Microsoft just doesn't have any real choice.
So, how is this different?
As for the Internet usage rates, that seems to suggest to me that the adoption has been at the consumer level, where Internet use is sporadic (I have four machines for two adults at my house, and one for the kids - we, by definition, aren't on every machine all the time). That was to be expected, as well. Heck, my work PC is still XP! Every company I ever worked for took 1-2 years before adopting the latest version of the operating system. To expect the kind of use rates that Win7 has today is silly. Expecting Win8 to have the use rates that Win7 did on its launch is also unlikely - the companies that would have upgraded immediately for Win7 are less likely to, considering the touch aspect requires a hardware investment that Win7 didn't. Those Internet use rates won't happen for some time.
Your so wrong
Window 7 is still offered
Win 7 still available..
It appears that Win 8 is doing well, albeit not setting the PC business on fire but rather keeping pace with expectations. Microsoft is very much focused on the Enterprise so I believe we will see very soon how Win 8 Pro and RT will play a major roll in corporate America.
Smaller form factor
$150?
If anything, we might see a 7" Windows RT tablet hit $299.
At $150 they'd be better off donating the money.
Strange that we live in a world where people expect a Windows tablet to cost less than the cheapest iPod Touch ($300).
Hardware margins don't matter
I don't know about a 7 inch RT tablet for $150 but it wouldn't surprise me to see 10 inch RT tablets selling in the $250 range this Christmas.