Will Windows 8 Win? Microsoft’s Uphill Battle Against Apple, Android
2012 is shaping up to be a make-or-break year in the crucial mobile operating system market and, for perhaps the first time in its distinguished history, Microsoft (NSDQ:MSFT) will be looking up at incumbent market leaders.
Windows 8, Microsoft’s next-generation operating system, is scheduled to launch this year, with a beta release slated for February. Unlike its many predecessors, the new OS is slated to deliver an entirely new user interface optimized for both desktop and touch-screen-enabled mobile devices. As more details emerge about the new release, reactions are being stirred up among OEMs, developers and solution providers — many of which view Windows 8 as a pivotal, do-or-die move for the software giant.
While Microsoft made a sizable splash at CES 2012 with Windows 8 (the OS was featured on numerous Ultrabook and tablet demos), the spotlight shifted when Intel unveiled a major mobile alliance with Motorola Mobility around the chip maker’s new Atom chip, code-named Medfield, for tablets and smartphones. The move displayed Intel (NSDQ:INTC)’s support for Android (Motorola (NYSE:MOT) Mobility is in the process of being acquired by Google (NSDQ:GOOG)) and left questions looming about how Microsoft and its operating systems will fit into Intel’s plan for mobile dominance.
A lot of the uncertainty surrounding Windows 8 stems from the fact that, historically, Microsoft hasn’t had much of a foothold in the mobile space. While Apple and Google have managed to capture a significant chunk of mobile market share, Microsoft has stuck, more or less, to its PC-centric roots. According to recent statistics published by Web analytics firm Net Applications, 43.1 percent of U.S. mobile devices run on Google’s Android OS, while 16.7 run on Apple’s iOS. Microsoft, however, wasn’t among the top five, as Windows Phone 7 has lagged behind.
It’s with these statistics in mind that many are questioning whether Microsoft is joining the mobility game too late — and whether Windows 8 will ever gain the traction it needs to compete. Developers and solution providers told CRN that, while a new touch interface and an app store may pique the industry’s interest, they won’t necessarily mean a quick win for Microsoft’s new OS.
Bill Lucchini, COO of OnForce, an on-site services marketplace that matches service buyers with service providers, believes only a game-changing device or OS could successfully enter today’s already saturated mobile market.
Take Apple (NSDQ:AAPL), for instance. It was able to enter the mobility space four years ago and succeed — even among mobile giants Nokia (NYSE:NOK) and Samsung, which already had staked their claims — simply because the iPhone was different. That same innovation is required to compete (at least seriously) in the marketplace today, Lucchini explained. “Apple changed what it meant to be a phone, and therefore took such a strong position, as Android did afterward,” he said. “So I think there is still room for that, but somebody needs to come up with that market-changing idea in order to get in at this point.”
While it’s too early to tell whether that “somebody” is Microsoft, Windows 8 does tout several new features that distinguish it from both competitors and previous Windows releases. The new Metro user interface, for instance, is fully touch-capable and replaces the traditional desktop Start menu with a tile layout similar to that of the Windows Phone 7.
NEXT: Breaking Down Windows 8
What’s more, the new OS features a log-in method called Picture Password, allowing users to define and enter a password by making select movements over a photo rather than typing one. Windows 8 also will deliver the most recent installment of Internet Explorer, version 10, and is expected to spark a more robust app selection in the Windows Store.
Perhaps one of the most innovative features seen with the new OS, however, is Windows to Go. The new feature allows IT administrators to create USB drives containing fully managed Windows 8 systems for users to take with them outside the office. As the name suggests, it’s essentially a portable and secured version of the new OS, apps and all (for more, check out the CRN Test Center review of the Windows 8 developer preview ).
Shahin Pirooz, executive vice president, engineering operations, and CTO of CenterBeam, a Sunnyvale, Calif.-based solution provider, views Windows to Go as one of the most exciting new features to be delivered with Windows 8. Its appeal, however, is enterprise-focused, meaning that it may not necessarily draw a wider consumer audience. “In typical Microsoft fashion, they are speaking to the IT industry rather than the consumer,” Shahin explained. “Even though that’s who they are trying to get to.”
In addition to positioning itself as a true mobile innovator, Microsoft faces another challenge when it comes to Windows 8: the consumerization of IT. The phrase, referring to the increasingly blurry line between what is considered a “corporate” vs. a “consumer” device, could suggest that as more and more Apple and Android devices make their way into the corporate world, Microsoft’s grip on the enterprise market will start to slip.
Chad Osgood, CEO and managing partner at Premier Logic, an Alpharetta, Ga.-based software developer and solution provider, has seen declining interest in the Windows OS ever since the iPhone and other consumer-centric devices landed in enterprise users’ hands.
“I think what we started to see with the release of the iPhone was a lot more consumer-oriented mobile devices,” Osgood told CRN. “And what that did … we started to see a lack of demand from a consumer and an enterprise standpoint for Windows mobile.”
The decline of Research In Motion proves just how hefty a blow the consumerization of IT can deal enterprise-focused vendors. The BlackBerry maker lost a hefty chunk of its enterprise customer base to the iPhone and Android-run devices this year and saw a major blow to its third-quarter revenue, reporting $265 million compared to the $911 million the company reported in the same quarter the year before. If Windows 8 isn’t a game-changer, Microsoft also may find itself living in Apple’s ever-expanding shadow.
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