Netbooks and the Microsoft Economy
March 20, 2009 by Milo Riano
Filed under Computers
An interesting article written over at ZDNet (article here), talks about the complex dance done by Microsoft on Windows 7 wherein the less powered applications of Windows 7 pose a threat to the software giant’s revenue stream. A lesser machine means lesser applications can be installed and lesser sales for Microsoft.
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Microsoft cannot do anything on the rising popularity of netbooks and they might as well build applications that suite these machines. How about Office for Windows 7? This only means that they would need lesser R&D, lesser budget to create cutdown applications.
They might sell these applications at a lower cost, but it doesn’t mean they have smaller margins. As long as they optimize their operations, development costs, they should be in good condition.
What do you think?
But are not Microsoft doing just this. They have already said they are working on cloud based versions of Office for the net release which plays exactly to the strength of the low powered Netbook where the browser is the most important application.
If anything, this is good news for MS who are really trying to be the king of online services.
If Microsoft wants to continue being one of the global leaders in software and operating systems, it has to accept that the innovation of devices and technology is happening outside of the Microsoft campus, I don’t think Microsoft should be as self centred as it appears to be over the area of Netbooks, mainly because of it’s basic failings with things such as Windows Vista.