Showing posts with label Microsoft. Show all posts
Showing posts with label Microsoft. Show all posts

March 13, 2010

Can Microsoft Stomp Out The iPhone?

So much for letting the best product win. According to the Wall Street Journal, 13-14 March 2010, Microsoft is forcing their employees to “choose” Microsoft phones for personal use and to push those who don’t into hiding.

Is this a joke or a genuine throwback to the Middle Ages?

Apparently this is real: “Last September, at an all-company meeting in a Seattle sports stadium, one hapless employees used his iPhone to snap photos of Microsoft Chief Executive Steve Ballmer. Mr. Ballmer snatched the iPhone out of the employee’s hands, placed it on the ground, and pretended to stomp on it in front of thousands of Microsoft workers.” That sends a pretty clear message!

I guess the employee can consider himself lucky that Mr. Ballmer didn’t put him (instead of the iPhone) on the ground underneath his foot or perhaps maybe even just burn him at the stake for heresy against Microsoft.

Further, in 2009, Microsoft “modified its corporate cellphone policy to only reimburse service fees for employees using phones that run on Windows.”

While many workers at Microsoft can evidently be seen with iPhones, others are feeling far from safe and comfortable doing this. According to the article, one employee told of how when he meets with Mr. Ballmer (although infrequently), he does not answer his iPhone no matter who is calling! Another executive that was hired into Microsoft in 2008 told of how he renounced and “placed his personal iPhone into an industrial strength blender and destroyed it.”

Apparently, Mr. Ballmer told executives that his father worked for Ford Motor Co. and so they always drove Ford cars. While that may be a nice preference and we can respect that, certainly we are “big boys and girls” and can let people pick and choose which IT products they select for their own personal use.

While many employees at Microsoft have gone underground with their iPhones, “nearly 10,000 iPhone users were accessing the Microsoft employees email systems last year,” roughly 10% of their global workforce.

My suggestion would be that instead of scaring the employees into personally using only Microsoft-compatible phones, they can learn from their employees who choose the iPhone—which happens to have a dominant market share at 25.1% to Microsoft 15.7%—in terms why they have this preference and use this understanding to update and grow the Microsoft product line accordingly. In fact, why isn’t Microsoft leveraging to the max the extremely talented workforce they have to learn everything they can about the success of the iPhone?

It’s one thing to set architecture standards for corporate use, and it’s quite another to tell employees what to do personally. It seems like there is a definite line being crossed explicitly and implicitly in doing this.

What’s really concerning is that organizations think that forcing their products usage by decree to their employees somehow negates their losing the broader product wars out in the consumer market.

Obviously, IT products don’t win by decree but by the strength of their offering, and as long as Microsoft continues to play medieval, they will continue to go the way of the horse and buggy.


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September 20, 2009

Is Free Worth the Price?

In the computer world, free is often the architecture and economic model of choice or is it?

We have various operating systems like Linux, Chrome, Android and more now costing nothing. Information is free on the Internet. Online news at no cost to the reader is causing shock waves in the print news world. There are thousands of free downloads available online for applications, games, music, and more.

What type of business model is free—where is the revenue generation and profit margin?

Yes, we know you can use giveaways to cross sell other things which is what Google does so well making a boat load of money (billions) from its free search engine by selling ads. Others are trying to copy this model but less successfully.

Also, sometimes, companies give product away (or undercharge) in order to undermine their competitive challengers, steal market share, and perhaps even put their rivals out of business.

For example, some have accused Google of providing Google Apps suite for free as a competitive challenge to Microsoft dominant and highly profitable Office Suite in order to shake one of Microsoft’s key product lines and get them off-balance to deflect the other market fighting going on in Search between Google and Microsoft’s new Bing “decision engine.”

So companies have reasons for providing something for free and usually it is not pure altruism, per se.

But from the consumers perspective, free is not always really free and is not worth the trouble.

Fast Company has an interesting article (October 2009) called “The High Cost of Free.”

“The strategy of giving everything away often creates as many hassles as it solves.”

Linux is a free operating system, yet “netbooks running Windows outsell their Linux counterparts by a margin of nine to one.”

“Why? Because free costs too much weighted down with hassles that you’ll happily pay a little to do without.”

For example, when you need technical support, what are the chances you’ll get the answers and help you need on a no-cost product?

That why “customers willingly pay for nominally free products, because they understand that only when money changes hands does the seller become reliably responsive to the buyer.”

And honestly, think about how often--even when you do pay--that trying to get good customer service is more an anomaly than the rule. So what can you really reasonably expect for nothing?

“Some companies have been at the vanguard of making a paying business of “free.” IBM, HP and other tech giants generate significant revenue selling consulting services and support for Linux and other free software to business.”

Also, when you decide to go with free products, you may not be getting everything you bargained for either in the base product or in terms of all the “bells and whistles” compared with what a paid-for-product offers. It’s reminiscent of the popular adages that “you get what you pay for” and “there’s no such thing as a free lunch.”

Sure, occasionally there is a great deal out there—like when we find a treasure at a garage or estate sale or even something that someone else discarded perhaps because they don’t recognize it’s true value—and we need to be on the lookout for those rare finds. But I think we’d all be hard pressed to say that this is the rule rather than the exception. If it were the rule, it would probably throw a huge wrench in the notion of market equilibrium.

And just like everyone savors a bargain, people are of course seriously enticed by the notion of anything that is free. But do you think a healthy dose of skepticism is appropriate at something that is free? Again, another old saying comes to mine, “if it’s too good to be true, it probably is.”

Remember, whoever is providing the “free” product or service, still needs to pay their mortgage and feed their family too, so you may want to ask yourself, how you or someone else is paying the price of “free,” and see if it is really worth it before proceeding.

From the organization’s perspective, we need to look beyond the immediate price tag (free or otherwise discounted) and determine the medium- to long-term costs that include operations and maintenance, upgrades, service support, interoperability with other products and platforms, and even long-term market competition for the products we buy.

So let’s keep our eyes open for a great deal or paradigm shift, but let’s also make sure we are protecting the vital concerns of our users for functionality, reliability, interoperability, and support.


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July 19, 2009

Battle of the Tech Titans

Google and Microsoft are going head-to-head, and they are going for the jugular.

ComputerWorld stated in the July 6/July 13, 2009: “Google Set to Wage OS War with Microsoft.” Wired wrote in August 2009 issue according to CEO Eric Schmidt, Google is the “anti-Microsoft”.

According to Wired, the two companies are fighting for the title: King of Technology.

Here’s a quick breakdown:

Google

Microsoft

Web Browser

Chrome (& FireFox distribution)

Explorer

Operating System

Android, Chrome OS

Windows, XP, Vista, Mobile

Business Productivity Suite

Apps Suite

Office

Search

Google

Bing

Online Advertising

Adwords, Adsense, Doubleclick

aQuantive

On one hand, Google is the undisputed master of the Internet delivering 78.5% of search results in the U.S. (versus 8.2% for Microsoft ) and pulling in $22 billion in revenue in 2008 for text ads. On the other hand, Microsoft owns the personal computer environment with 90% of the operating systems for all laptops and desktops yielding $16 billion in 2008 sales and $14.3 billion in 9 months for it’s productivity applications (versus Google which mostly gives away is email and other online applications); further Microsoft has 70% of the browser market to Google 2% for Chrome. (Wired July 13, 2009)

So is there really a full tech war going on or are Microsoft and Google just chipping away on the edges of each others territory, using so-called guerrilla warfare tactics?

It’s a little of each. Both companies are technology behemoths trying to be the king of the tech jungle. But they have very different approaches. Microsoft believes that computer software is the key to tech kingdom, while Google believes that the Internet is the path to people’s technology hearts.

Google is willing to give away software to challenge Microsoft on its home turf, and Microsoft is investing in its new search engine to erode the core strength of its competitor. It’s a jab for jab face-off where I would imagine we would continue to see the corporate fists flying for as long the two are standing.

From a strategic point of view, Microsoft has such a dominant position on our computers both in our homes and businesses, it is hard to imagine them being easily dethroned. Microsoft also has a war chest and the ability to replenish it to fight a darn good fight. But many companies have been smug and have lost to a determined challenger.

Google is coming out strong for its innovativeness and can’t turn down offer of free products. If the television business is any predictor of a winner-take-all, television’s advertising revenue built an incredible entertainment industry that we all enjoy and which still largely dominates today.

And now I think I will go watch 60 minutes on my big flat screen TV.


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September 20, 2008

An Apple Turnover and Enterprise Architecture

CIO Magazine, 15 July 2008, has an interesting article called “A Tangled Paths for Macs in the Enterprise.”

The question posed: is it time to switch our enterprise from PCs to Macs?

“Apple—a synonym for awe-inspiring design and coolness—the antithesis to stodgy old corporate technology…the iPhone’s favorable reception portends something more: Some believe it could usher in the era of a more enterprise-friendly Apple.”

Macs have come a long way…

Macs have increasingly become the consumers’ brand of choice. Apple shipped 2.3 million Macs in the second quarter of 2008, which represents a 51 percent growth for the product.”

Will Weider, the CIO of the Ministry of Health Care and Affinity Health System compares “Macs to luxury cars in a PC world of Chevy Impalas.”

Aside from the design wow factor and their innovativeness, historically, Macs are safer from viruses and have lower maintenance costs. All good reasons to consider an enterprise roll-over to Macs.

From a User-centric perspective, Apple understands how people use technology and their products seem to be the choice many would like to make!

What is holding Apple back in the enterprise?

Consumer-orientation: “Business adoption of Macs and Apple software has been sluggish, perhaps, in part, because this is a low priority for Apple. While Apple, of course, deals with businesses, it remains a consumer-oriented company, by the numbers.”

Technology refresh schedule: “Apple does not provide technology roadmaps…what’s worse they make their hardware incompatible with the previous version of the operating system, and their schedule is impossible to keep up with.”

So what is an advantage to Apple in the consumer marketplace—catering to consumer needs and rapid innovation—is a boondoggle in the business environment. Ah, a double edged sword indeed.

Further, a wholesale switch-out to Apple in a Windows shop typically involves desktops, servers, operating systems, and reworking oodles of legacy systems; this is quite a costly endeavor that is not easy to justify in resource constrained organizations.

Further, one of the core principles of enterprise architecture is standardization in order to reduce complexity and achieve cost-efficiencies, so introducing new platforms or a mixed environment is frowned upon.

In the future, as more and more applications become commoditized and moved to the Internet, thereby reducing the cost of transition to Apple, perhaps Apple will have a better chance to challenge Microsoft on the business playing field.


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August 21, 2008

Microsoft, Jerry Seinfeld, and Enterprise Architecture

ComputerWorld, 21 August 2008 reports on a news article in the Wall Street Journal that “Microsoft hires Seinfeld to bite Apple.”

“Continually painted by Apple and other rivals as uncool and unsafe, Microsoft plans to spend $300 million on a new series of advertisements designed around its ‘Windows Not Walls’ slogan that will feature Seinfeld and Microsoft Chairman Bill Gates.”

“Microsoft is not only trying to turn around a stodgy corporate image, but also wants to reverse recent product misfires, including the Windows Vista Operating System and the Zune digital music player.”

“Apple has rubbed in Microsoft’s lack of success and highlighted its own winning streak in a series of ‘Mac vs. PC’ ads.”

Is the Seinfeld ad a good branding strategy?

Well as my wife said, “this is as close as Microsoft can get to cool.”

Seinfeld, while rated by TV Guide in 2002 as one of the greatest TV programs of all times, is at this point somewhat dated—having aired nine seasons between 1989 and 1998—so it was over ten years ago! (Wikipedia)

In perspective, Seinfeld was already off the air before Vista, Zune, or the iPhone was ever created.

Microsoft’s attempt at reversing their “stodgy corporate image” is a feeble attempt that in fact solidifies that very image. It is no wonder that Microsoft is enamored with the 1990’s when they were the king of the hill in corporate America and in the technology arena with the launch of Microsoft Office in 1989 (the same year Seinfeld episode 1 aired) and before Google was founded in 1998 (the last season Seinfeld aired).

The Wall Street Journal, 21 August 2008, reported that “Microsoft is a little like the General Motors of technology. The software giant is, of course, much more successful, financially and in market share, than the troubled auto maker. But as at GM, Microsoft’s very size—over 90,000 employees—and it bureaucratic structure often make the company seem more stolid and less innovative than smaller, nimbler rivals like Google and Apple.”

From an enterprise architecture perspective where is Microsoft going wrong?

Microsoft is still living in the past—hence, the choice of the historic Jerry Seinfeld as their new image maker. Rather than acknowledging their current architecture and looking to the future or target architecture and how to transition forward, Microsoft keeps looking in the rearview mirror at where they were 10, 15, 20 years ago.

Microsoft keeps trying to catch up to the new generation of innovators like Google and Apple by either trying to acquire the 2nd tier competition like Yahoo or developing copycat products like the Zune.

More recently, Microsoft has tried to become more agile and take advantage of smaller groups to break their bureaucratic and cultural logjam. One example is Live Labs, “a small operation that aims to turn technology theories into real, Web-based products relatively quickly. It has only about 125 employees, and even that modest number is broken up into smaller teams tackling specific projects.”

Even if Live Labs succeeds, what are the other 89,875 employees at Microsoft doing?

To really compete in the future, Microsoft needs better planning and governance and this is what enterprise architecture can bring them—a forward looking and improved decision making framework.


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July 1, 2008

Online Medical Data and Enterprise Architecture

We all need access to information. In our personal lives, what’s more important than easy access to our financial and medical records?

In the case of financial records, these are generally all maintained online now. From your banking to your brokerage, from the online deposit of your paycheck to online bill pay. However, what about our medical records?

Generally speaking medical records are not available online and not easy to access. But why are medical records lagging behind financial ones in terms of their technology enablement? Is it that there is not bona fide need? Or is it that the technology is immature?

MIT Technology Review, July/August 2008, reports that “Google and Microsoft are offering rival programs that let people manage their own health information.”

Google Health (released in May) and Microsoft HealthVault (launched in October) “allow consumers to store and manage their personal medical data online. Users will be able to gather information from doctors, hospitals, and testing laboratories and share it with new medical providers, making it easier to coordinate care for complicated conditions and spot potential drug interactions or other problems.”

However, based on a 2007 poll “just 2 percent of all respondents said they had created and maintained medical records on their own computers, and just 1 percent reported using a ‘personal health record that is stored on the Internet.”

So the issues are?

  1. New software—Google Health and Microsoft HealthVault are relatively new and haven’t caught on yet.
  2. Paper records—“many doctors still do not use electronic records and others are unwilling or unable to transfer data to patients in electronic form.”
  3. Privacy—online medical data services are “not covered by the Health Insurance Portability and Accountability Act (HIPAA), under which hospitals, doctors, and third-party payers typically cannot release information without a patient’s consent.”
  4. Sensitivity—“medical information—histories of mental illness, paternity tests, genetic information—can be far more sensitive than browsing histories or even financial records.”

From an enterprise architecture standpoint, these issues really do not make a whole lot of sense to me as being showstoppers to moving medical records online.

Firstly, there is a genuine need for medical records to be digitized and made more accessible and easy to use by patients and medical providers. Just think about being wheeled into an emergency room (possibly unconscious); wouldn’t it be nice if the emergency room physician could access your medical records before they start treating you from a pretty much blank state?

Also, have you ever wondered about the archaic paper filing system your doctor uses—you know the oodles of forms you have to fill out every time you go to a new doctor, the indecipherable notes your doctors jots down on freebee paper from the pharmaceutical companies (with their logos on it), the file folders with the colored stickers that office administers attach to them for tracking purposes, and the double and triple deep, wall to ceiling file shelves on rollers that they manipulate to store and access the records. Talking about crazy!

Further, the technology solutions are available. If we can manage the bits and bytes of our financial records discretely and securely, surely the same can be said of medical records.

I’ve got to conclude that there is a cultural issue here that is impeding the transformation to online medical records, and I don’t believe that the reluctance is coming from the patients’ side, because we are living and breathing digital information transformation daily and for the most part, we are addicted to it and love it. People are still screaming for more.

We’ve got to get the medical community to get off the dime; so that they recognize the importance to the consumer of their medical information and that they treat that information as belonging to the patient as opposed to being owned by them. Whether the medical community is holding back because they want to maintain the aura of medical mystery to what they do (have you ever tried to tell your doctor that you looked up something medical on the internet and see their reaction?) or that they want to hold onto their patients by controlling their medical records—either way we are not providing the patient/consumers the service they want and deserve, particularly when health and life are at stake.

Medical records are a prime area for transformation and they need a desperate dose of enterprise architecture to transform the sad state of affairs.


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June 29, 2008

Bill Gates and Enterprise Architecture

On July 1, Bill Gates is stepping down from his day-to-day duties at Microsoft, but will continue to serve as Chairman. Bill Gates grew Microsoft into the worldwide software development leader with revenue of $51 billion for fiscal year ending June 2007 and 78,000 employees in 105 countries and regions.

As the prior CEO and chief software (and technical) architect it is definitely worthwhile to look at the legacy that Bill is leaving behind at Microsoft.

Fortune Magazine, 7 July 2008, provides four lasting imprints that Bill Gates is leaving on Microsoft and here are my thoughts on these as relates to enterprise architecture:

  1. Software can do anything—Gates has a “utopian view of software. He believes it can do anything.” Like Bill Gates, we need to believe in the mission of our organization. Such belief is critical in inspiring passion for and dedication to what we do. However, blind belief that any one thing can do anything is folly. For example, software without hardware is a no-go as is hardware without software. Both are non-starters without the people to innovatively apply them to our greatest challenges.
  2. Engineers rule—“Microsoft employees about 30,000 programmers among its 90,000 employees. In operating groups, engineers are involved in every major decision…Microsoft $8 billion computer science R&D lab is the world’s largest” Engineers are critical to solving our challenges, but you should not ignore marketing and sales either. Marketing and sales reach out and touch the people. You cannot ignore the human aspect to solving problems. Maybe it partially Microsoft’s obsessive engineering approach that has left it vulnerable on the people side, for example: “Apple’s biting ad campaign has successful painted Windows as uncool.”
  3. “Institutionalize paranoia”—“’It’s very Microsoft to prepare for the worst,’ says Gates…Bill and Steve (Ballmer) created what I guess I’d characterize as a culture of crisis,’ says chief software architect, Ray Ozzie. There’s always someone who’s going to take the company down.” Paranoia is a disorder, but fighting for competitive advantage is reality. Your competitors are not laying down to die; they are fighting for their professional lives, and you need to meet the challenge every day if you want to be the best out there.
  4. “Invest for the long term”—“Whatever the cycle is, we will keep investing through the cycle, because we know on the other side of whatever cycle happens, there is opportunity,” says entertainment division president Robbie Bach. The approach for long term planning is very enterprise architecture focused. However, the architecture planning without the good governance to administer structured, consistent, collaborative decision making is not very workable. Planning without effective decision making and enforcement falls short on the execution side. Again, perhaps here too, Microsoft could benefit from a less top heavy culture and a more open decision process, where all project and product stakeholders have a serious voice at the table. Then turning over the reins from Bill will not be as traumatic requiring approximately four years of preparation and turnover.

In the end, Microsoft is truly terrific company and Bill Gates is leaving a company that is nothing short of spectacular. Of course, even the best can get better with continuous learning and innovation and that is the next chapter for Microsoft in the world of the likes of Google and Apple.


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April 8, 2008

Readability and Enterprise Architecture

User-centric EA is a strong proponent for developing information products that are useful and usable to the end-user. This is in contrast to traditional EA that often develops “artifacts” that are often difficult for the end-user to understand and apply.

There are a number of ways to make EA easier to use for the organization. One is to provide information in various levels of detail (profiles, models, and inventories), so user can drill-down to get more detailed information or roll-up to executive level summary views. Another method is to use information visualization to express information. As the adage states: “a picture is worth a thousand words.” And yet a third method is to explain the architecture in simple- to-understand language, so that it will be meaningful to both business and technology stakeholders, executives, mid-level managers, and analysts alike.

Others have expressed the need to make information more usable and readable.

The Wall Street Journal, 14 March 2008, reports on the usage of readability formulas “to quantify the ease of a work writing” to be read and understood.

For example, Microsoft Word follows a reading formula and provides a “result [that] is the supposed minimum grade level of readers who can handle the text in question.”

“Similar formulas are used by textbook publishers and in dozens of states’ guidelines for insurance policies.”

The way the formulas work is to look at readability items such as the average number of words in a sentence, the average number of syllables per word, and so on to come up with a grade reading level for the text.

Some argue that these readability formulas are flawed in that there are “more than 200 variables that affect readability. Most formulas incorporate just two, and not because they are most important, but because they are the easiest to measure.” Others argue, the different readability measures are inconsistent and can come up with scores that differ by as much as three grade levels.

The Flesch-Kincaid formula, used by Microsoft, is the most convenient and criticized. The formula was developed in 1948, revised in 1975, and again tweaked by Microsoft when it “incorporated it into Word in 1993”. The current formula provides readability scores up to grade level 14.

The idea behind all these readability formulas is to provide information that is clear, concise, and comprehensible to a wide audience. There are even templates online to help people communicate effectively in writing at the recommended reading levels.

Going back to enterprise architecture, what is often thought of and developed in terms of architectures is not simple to understand or useful to our stakeholders. Developing architecture using the ivory-tower approach and developing reams of shelfware and wall charts that are eyesores is not a wise architecture strategy. Rather, working collaboratively with users and developing information products that they can understand and readily use to aid decision making is where it’s at.


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February 26, 2008

Microsoft Reveals Secrets and Enterprise Architecture

This week Microsoft said they had a big announcement, and that it wasn’t about Yahoo! It turns out that Microsoft decided to reveal some of their technical documents for Microsoft Vista, Office, and other applications.

Why would a company like Microsoft reveal their technical secrets to partners and rivals alike? How is this decision a good architecture move, especially by the master architect himself, Bill Gates?

We all know that companies strive to achieve strategic competitive advantage and that one major way to do this is by product differentiation. The goal is to develop a unique product offering that customers want and need and then build market share. In some case, this results in a situation like Microsoft’s virtual monopoly status in desktop operating systems and productivity suites.

So why give up the keys to the Microsoft kingdom?

Well they are not giving up the keys, maybe just giving a peek inside. And an article in The Wall Street Journal, 22 February 2008 tells us why Microsoft is doing this:

  1. Internet Revolution—“For 30 years, Microsoft has…tightly held onto the technical details of how its software works… [and] it become one of the most lucrative franchises in business history. But Microsoft traditional products aren’t designed to evolve via add-ons or tweaks of thousands of non-Microsoft programmers. Nor can they be easily mixed or matched with other software and services not controlled by Microsoft or its partners. Now the Internet is making that kind of evolution possible, and transforming the way software is made and distributed.” As Ray Ozzie, chief software architect of Microsoft states: “The world really has changed.”
  2. Do or die—Microsoft’s prior business model was leading it down a path of eventual extinction. “The more people use these applications [free technologies and shareware], the less they need they have for Microsoft’s applications.” Microsoft is hoping to maintain their relevance.
  3. Antitrust ruling—“Last September, an appeals court in Luxembourg ruled against Microsoft in a long-running European case that forced Microsoft to announce a month later that it would drop its appeals and take steps to license information to competitors.”
  4. Interoperability—“Microsoft announced in July 2006 [its “Windows Principles”]…such as a commitment to providing rival developers with access to interfaces that let their products talk with Windows.” The key here is customer requirements for systems interoperability and Microsoft is begrudgingly going along.

Is this fifth such announcement on sharing by Microsoft the charm? I suppose it all hinges on how much marketplace and legal pressure Microsoft is feeling to divulge its secrets.

So it this the right User-centric EA decision?

If Microsoft is listening to their users, then they will comply and share technical details of their products, so that new technology products in the market can develop that add on to Microsoft’s and are fully interoperable. The longer Microsoft fights the customer, the more harm they are doing to their brand.

At the same time, no one can expect Microsoft to do anything that will hurt their own pocketbook, so as long as they can successfully maintain their monopoly, they will. Not that Microsoft is going away, but they are holding onto a fleeting business model. In the information age, Microsoft will have to play ball and show some goodwill to their users.


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February 10, 2008

Microsoft, Yahoo, and Enterprise Architecture

Microsoft offers to buy Yahoo for $44 billion—brilliant play or stupid move?
Some say it’s a brilliant move:
According to techcrunch.com, a combined Microsoft/Yahoo would be a technology behemoth and have $65 billion in revenue, $17.6 billion in profit, 90,000 employees, and 32.7% of the U.S. search market share.
Yahoo owns semi-valuable assets like Flickr, a photo sharing site and del.icio.us, a social bookmark site.
Others say it’s a stupid move:
  1. Microsoft/Yahoo would still seriously trail Google’s U.S. search market share of 58.4%!
  2. Other corporate acquirers, like Oracle, generally profess acquisitions only if it enables a clear #1 market position like it is with data warehouse management, business analytics, human capital management, customer relationship management, and contract lifecycle management.
  3. Fortune Magazine, 18 February, 2008, says “Microsoft is paying too dearly for Yahoo.” Fortune asks “What exactly is Microsoft buying here? Technology? Yahoo has been managing a declining asset since Google invented a better way to do search…Technologists? Talent has been fleeing Yahoo Central since Terry Semel got there…a let’s not even talk about the clash of cultures that such a merger will create.”
  4. Yahoo has made serious management missteps, such as backing out of a deal to buy Facebook in 2006 at a $1 billion bargain (Facebook was recently valued at $15 billion) and botching the acquisition of YouTube and losing out to Google.
Fortune concludes:
  1. “Microsoft is buying an empty bag.”
  2. Yahoo will be Microsoft’s AOL” (comparing a Microsoft/Yahoo acquisition to the failed AOL/Time Warner one).
  3. Microsoft should abandon the acquisition, unbundle itself from search, Xbox, and Zune, and instead focus on improving its core competency, the operating system.
From a User-centric Enterprise Architecture perspective, it’s an interesting dilemma: should companies (like Microsoft) diversify their products and services, similar to the way an individual is supposed to responsibly manage their financial investments through broad diversification in order to manage risk and earn a better overall long-run return. Or should companies do what they do best and focus on improving their core offering and be #1 in that field.
Historically, I understand that most mergers and acquisitions fail miserably (like AOL/Time Warner) and only a few really succeed (like HP/Compaq). Yet, companies must diversify in order to mitigate risk and to seek new avenues to grow. As the old saying goes, “don’t put all your eggs in one basket.” The key to successfully diversify is to architect a #1 market share strategy, like Oracle, acquire truly strategic assets like Compaq, and not overpay like with Yahoo and AOL.

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January 19, 2008

The Power of Marketing and Enterprise Architecture

Enterprise architecture is all about planning and governance to enable organizational success. But despite all the astute architectural planning and sound governance, why is it that the better product so frequently loses out to better marketing?

We’ve seen this happen with the more innovative and better functional Apple products losing out to Microsoft. We seen VCRs beat out Betamax, even though at the time Betamax was seen as the superior format. And again, we’ve seen CDMA become the dominant cellular network standard in the USA, despite GSM initially being the superior technology and had 73% worldwide market penetration.

Now once again, the superior product has lost in the market and is no longer being made, the Hydrox chocolate sandwich cookie made by Kellogg Company has lost out to the inferior Oreo cookies made by Kraft Foods Inc.

The Wall Street Journal, 19-20 2008 reports that ”The Hydrox Cookie is Dead, and Fans Won’t Get Over It.”

Hydrox enthusiasts “preferred Hydrox’s tangy, less-sweet filling. Many fans seem to remember that the cookies held together better than Oreos when dipped in a glass if cold milk. Some argue Hydrox cookies were more healthful than Oreos, since Oreos used to contain lard.” In fact, in a 1998 taste test by Advertising Age, 29 tasters voted for Hydrox and only 16 for Oreo. Yet despite these preferences, Hydrox lost out to “the dominant Oreos, one of the country’s best-selling snack foods.”

“For many years, the contest between Oreo and Hydrox was akin to that of Coke versus Pepsi, the Beatles again the Rolling Stones, dog people and cat people.”

In the end, Hydrox lost to Oreo; “Oreo had all the advertising, but those in the know ate Hydrox.” Over the years, Nabisco (now owned by Kraft Foods) had the far larger marketing budget, and Hydrox was discontinued in 2003.

Fans still hope that “Kellog changes its mind, especially since this year is the cookie’s 100th anniversary.”

So is marketing stronger than product, like the pen is mightier than the sword?

This lesson seems pertinent in a presidential election year, where fund raising by candidates and advertising by them is seeing reaching astronomical levels. “After nine months of fundraising, the candidates for president in 2008 have already raised about $420 million. This presidential money chase seems to be on track to collect an unprecedented $1 billion total. By some predictions, the eventual nominees will need to raise $500 million apiece to compete--a record sum.” (http://www.opensecrets.org/pres08/index.asp)

So will the best candidate win to be the next president of the United States or simply the candidate with the deepest pockets and best marketers?

From a User-centric EA perspective, I find this contest of product versus marketing to be akin to content versus design in developing EA information products. For example, an EA program can have wonderful and valuable EA information content, but if it does not employ User-centric EA principles of design and communication (such as using profiles, models, and inventories or information visualization and so on), then the EA program will not reach its potential. Every consumer product has both content and design or product and marketing. The high-end luxury companies have learned this lesson well and often capitalize on this by offering products with superior design, flair, packaging, and marketing and are thus able to develop formidable brands and command superior prices. So a word to the wise, do not ignore the power of marketing, communications, and design as part of your EA or other product development endeavors.


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December 6, 2007

An Online Only World and Enterprise Architecture

How long will it be before the internet becomes our primary means of storing personal data and running software applications (web-based)?

MIT Technology Review, 3 December 2007, reports that one core vision for the evolution of technology (that of Google) is that we are moving from a computer-based technical environment to an online-only world, where “digital life, for the most part, exists on the Internet”—this is called cloud computing.

Already, users can perform many applications and storage functions online. For example:

  • “Google Calendar organizes events,
  • Picasa stores pictures,
  • YouTube holds videos,
  • Gmail stores email, and
  • Google Docs houses documents, spreadsheets, and presentations.”

Moreover, MIT Technology Review reports that it is rumored that Google is working on an umbrella application that will pull these disparate offerings together for a holistic cloud computing solution.

What’s the advantage of cloud computing?

A computer hard drive is no longer important. Accessibility to one’s information is limited only by one’s access to the internet, which is becoming virtually ubiquitous, and information can be shared with others easily. “The digital stuff that’s valuable… [is] equally accessible from his home computer, a public internet café, or a web-enabled phone.”

What are some of the issues with cloud computing?


  • Privacy—“user privacy …becomes especially important if Google serves ads that correspond to all personal information, as it does in Gmail.”
  • Encryption—“Google’s encryption mechanisms aren’t flawless. There have been tales of people logging into Gmail and pulling up someone else’s account.”
  • Copyright—“one of the advantages of storing data in the cloud is that it can easily be shared with other people, but sharing files such as copyrighted music and movies is generally illegal.”
  • Connectivity—“a repository to online data isn’t useful if there’s no Internet connection to be had, or if the signal is spotty.”
Still Google’s vision is for “moving applications and data to the internet, Google is helping make the computer disappear.” Human-computer interaction has evolved from using command lines to graphical user interface to a web browser environment. “It’s about letting the computer get out of our way so we can work with other people and share our information.”

Of course, Google’s vision of an online-only world isn’t without challenge: Microsoft counters that “it’s always going to be a combination of [online and offline], and the solution that wins is going to be the one that does the best job with both.” So Microsoft is building capability for users “to keep some files on hard drives, and maintain that privacy, while still letting them access those files remotely.”

I will not predict a winner-take-all in this architecture battle of online and offline data and applications. However, I will say that we can definitely anticipate that information sharing, accessibility, privacy, and security will be centerpieces of what consumers care about and demand in a digital world. Online or offline these expectations will drive future technology evolution and implementation.
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November 27, 2007

Email and Enterprise Architecture

How many emails a day is enough?

The Wall Street Journal, 27 November 2007 reports that we are all being inundated with email and it is only going to get worse.

On average, the corporate email user received 126 messages a day last year, up 55% from 2003.

Moreover, “by 2009, workers are expecting to spend 41% of their time just managing emails.”

Further, by 2011, the average number of corporate emails sent and received per person, per day is expected to hit 228!

According to Microsoft, users fall into two general categories for how they handle all the email:

  1. Filers—“strive to have an empty inbox at the end of the day”
  2. Pilers—“the super-messy desk people. They’ve got 5,000 emails in their inbox, most of them unread”

One new novel architecture approach to help manage email is based on a product from Seriosity, as follows:

“Attent™ with Serios™ is an enterprise productivity application inspired by multiplayer online games. It tackles the problem of information overload in corporate email using psychological and economic principles from successful games. Attent creates a synthetic economy with a currency (Serios) that enables users to attach value to an outgoing email to signal importance. It gives recipients the ability to prioritize messages and a reserve of currency that they can use to signal importance of their messages to others. Attent also provides a variety of tools that enable everyone to track and analyze communication patterns and information exchanges in the enterprise.” (www.seriosity.com)

So for example, users may get 100 serios at the start of the week, and they get more when others send them messages. They allocate these serios to each message they send. “A message asking some if he or she wants to go out for lunch might carry a value of three ‘serios’ of virtual currency; [while] a message about an important customer with an urgent problem might get 30 serios. In this way, we try “to get people to send fewer message, or just more relevant ones.”

From a User-centric EA perspective, having senders designate the importance of messages is a wonderful idea to help receivers gauge relative importance and need to read. This is an improvement over the basic Microsoft Outlook capability that enables users to simply mark something with a “!” as important or not.

The Seriosity product is a good example of how technology can meet emerging business requirements, even when it involves managing hundreds of emails a day.


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November 25, 2007

Implicit Requirements and Enterprise Architecture

With electonic contact lists in Microsoft Outlook on the computer and on organizer programs on cellphones and other electronic gizmos, why would anyone still keep a physical Rolodex anymore?

The Wall Street Journal, 24-25 November 2007, reports that "some executives are still spinning their rotary card files...more than 20 years after the digital revolution that forecasted the paperless office, the 'rotary card file'--best known by the market-leading brand name Rolodex--continues to turn."

The article continues, "as millions of social-network users display their connectedness on their Facebook pages, a surprisingly robust group of people maintain their networks on small white cards. Most of these devotees also rely on BlackBerrys and other computer-based address books."

This infatuation with physical Rolodex files extends to models like the 6000-card wheel that are no longer even on the market. Other executives keep as many as 8 or 9 Rolodex wheels on their much needed desk space. Why?

The article states that "part of the card system's appeal has always been that it displays the size of one's business network for the world to see." Yet, social-networking sites like LinkedIn also display the number of contacts a person has, so what's the difference from a physical Rolodex file--what need is the technology not fulfilling with users?

From a User-centric EA perspective, it seems that people have a fundamental need with their contacts to not only be able to maintain them in an organized fashion and to demonstrate the size of their network (to show their value to the organization), but also to feel important and accomplished and to be able "to wear" this like a mark or medal of distinction, in this case by laying it out their Rolodex files prominently on their desks for all to behold.

In EA, when we design technology solutions, we need to keep in mind that there are functional requirements like the organizing of personal and professional contacts, but there are also human, psychological requirements that may never actually come out in a JAD session. These are unstated or implicit requirements and architects need to plan technology to meet both the explicit and implicit needs of users.

A little like Sherlock Holmes and a little bit like a psychologist, an architect must explore user needs beyond the surface if they are to successfully align new technologies with end-user and organizational requirements.
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November 19, 2007

iPod Versus Zune and Enterprise Architecture

Zune has been playing catch up with iPod in the music player business, but from an User-centric enterprise architecture standpoint, they’ve got it all wrong!

The Wall Street Journal (WSJ), 14 November 2007 reports that Microsoft has retooled the Zune so that it “marks a vast improvement; however, it’s still no iPod.”

Where is Microsoft going wrong?
  1. An inferior product—“last year when Microsoft Corp. introduced its Zune music player to take on Apple’s iPod juggernaut, the software giant struck out. While the Zune had a good user interface, it was bigger and boxier, with clumsier controls, weaker battery life, and more complex software. Its companion online music store has a much smaller catalogue, a more complicated purchase process, and no videos for sale. And the Zune’s most innovative feature, built-in Wi-Fi networking, was nearly useless.” So much for competing on product quality!
  2. Underestimating the competition—Microsoft is “back with a second improved round of Zune’s…Apple hasn’t been standing still…the 80-gigabyte Classic, which costs the same as 80-gigabyte Zune, is slimmer than the Zune and has a flashy new interface, if a smaller screen. And the eight-gigabyte nano, which costs the same as the eight-gigabyte Zunem now plays videos and is much smaller—yet it has a larger screen. In addition, Apple has spiffed up its iTunes software…and Apple still trounces Microsoft in the selection of media it sells…more than six million songs, about double what the Zune marketplace offers, and dwarfs Microsoft’s selection of Podcasts and music videos as well.”

The WSJ concludes, “Microsoft has greatly improved the Zune hardware and software this time. But it seems to be competing with Apple’s last efforts, not its newest ones.”

In spite of these explanations, I think we’re missing something else here. If you compare the Microsoft desktop software to Apple’s, Microsoft also has a worse product, yet is the hands-down market leader. So why is Microsoft struggling with Zune?

Maybe functionality is part of the equation, but not the whole thing. It’s interesting to me that neither the article nor advertisements I see for Zune address anything about the interoperability of the product with Apple’s iTunes. Interoperability is not only a major enterprise architecture issue, but from a consumer standpoint, do you really expect people to dump their investment in their iTunes music library when they buy a Zune?

Looking at Yahoo Answers online, I see consumers share this concern:

“Can you use the iTunes’ software with the Microsoft Zune? I am torn between which to buy, if you can use itunes with the Zune then that’s the one I’ll get, but if you can’t then I’m getting an iPod, help me decide please.”

“Best Answer - Chosen by Voters

No you cannot. iTunes only works with the iPod, Zune is a completly different player made by Microsoft, it has its own music program and marketplace called the Zune Marketplace. The Zune Software can automatically copy songs that have not been purchased from iTunes (because ones that are have copy protection on them) and put them in the Zune Program.”

Until Microsoft acts as the architects par excellence that they are, and work out the all-important EA interoperability issues of its product, and communicates this with its customers, the Zune will continue to be second-rate, functionality notwithstanding.
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November 9, 2007

Microsoft Crashes and Enterprise Architecture

The Wall Street Journal, 31 October 2007 states that “the error-reporting service built into the Windows operating system is a massive global network for speaking truth to power.” When a Windows program crashes, you get the pop-up offering to “tell Microsoft about this problem.”

On busy days, “50 gigabytes of data from these error reports stream into Microsoft… [where] two dozen programmers are charged with monitoring them.”

Microsoft won’t tell you which of their programs crash the most, although Internet Explorer and Windows Explorer seem likely bets, while at the other extreme, Word and Excel “seem like Gibraltar.”

A Microsoft article, “Crash Protect Your PC Now!” (article id 835565) states:

“You’ve probably been there. You’re happily working away in Windows when suddenly everything freezes for no apparent reason. Maybe you’ve pressed [Ctrl] + [Alt] + [Delete] and managed to end the troublesome task and get on with things, but even if your machine hasn’t locked solid you’ve still lost at best a few minutes’ work, and at worst an entire document. We hate to tell you this, but the problem isn’t necessarily one with your PC either – many crashes are caused by poor use of your computer’s resources, or too many program installations that took place while you left half-a-dozen other programs running in the background.”

Some reasons Microsoft gives for the system crashes:

  • Faulty hardware (sort of figures Microsoft would say that and say it first)
  • BIOS updates— “hardware problems can be solved by BIOS updates. This is because of the specification that all hardware is built to is open to some interpretation.”
  • Driver updates— “if you’re being plagued by crashes and you haven’t updated your drivers for a while, this could well be the solution – 40 per cent of crashes are caused by poor drivers. Of course, if your machine is fine at the moment, updating the drivers may actually introduce problems, or fix one problem and introduce another.”
  • Software problems— “the other reason your machine will crash, and this is definitely the most likely cause, is due to software…. There are two main reasons that software can crash - either it can’t gain access to a resource that it needs (such as memory), or it contains a bug… One of the main reasons a program crashes is because it can’t obtain enough memory from the OS to complete an operation….Another reason programs are prone to tripping up on the memory front is that the memory becomes fragmented the longer you leave your machine on.

What does Microsoft tell you to do?

Prepare! “Prepare yourself for crashes by saving regularly and often, and to keep the amount of programs running to a minimum.”

What does User-centric EA tell us to do?

I love Microsoft, but maybe it’s time to consider having the IT Investment Review Board let Microsoft know what they think about all the system crashes by voting with the organization’s wallet and spending project dollars on alternatives that offer application stability and reliability. 50 gigabytes of streaming data reports on a busy day is just about 50 gigabytes too much!


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October 30, 2007

Apple’s OS Leopard and Enterprise Architecture

The Wall Street Journal, 25 October 207 reports that Apple’s new operating system (OS), Leopard, is “faster, easier than [Microsoft’s] Vista.”

Overall “the Mac is on a roll…Macintosh computers has surged in popularity in the past few years, with sales growing much faster than the overall PC market, especially in the U.S. By some measures, Mac laptops are now approaching a 20% share of U.S. non-corporate sales.”

Reasons for Mac’s recent success:

  1. Security problems inherent in Windows platform
  2. Spillover from success of Apples iPod music players
  3. Macs can now run Windows (with third party software Fusion, can run OS X and Windows simultaneously)
  4. Apple’s hot retail stores
  5. Mac versatile, easy to use OS X (now called Leopard, previous version called Tiger)

Advantages of OS X versus Microsoft Vista

  1. Apple has upgraded far more rapidly (~ every 18 months) versus Microsoft (5+ years)
  2. Faster than Vista
  3. Easier to use than Vista
  4. Preinstalled on all new Macs
  5. Sold in 1 full featured upgrade version for $129 versus Microsoft 4 upgrade versions for between $100-$249 (from basic to ultimate)
  6. Automatic backup of entire computer (called Time Machine)
  7. Free software to run Windows on a Mac (called Boot Camp)
  8. Few to none of the compatibility problems with printers that Vista has

Apple continues to be the technological leader, ahead of Microsoft, in terms of functionality, user-friendliness, speed, and the cool factor. From a User-centric EA perspective, Apple is the game to beat, even though Microsoft remains the 800 pound gorilla. As an EA practitioner, I am trained to look 3-5 years ahead and it is hard to not see Apple continuing to make major inroads against Microsoft.


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October 23, 2007

Linux and Enterprise Architecture

The Wall Street Journal, 17 October 2007 reports that Linux is “barely scrapping a single percentage point of the market share” for desktop users.

What is Linux? “Linux is the free operating system whole development is overseen by Mr. [Linus] Torvalds.” Linux is open source and is used at Google other major companies.

However, adoption by users to replace Windows at the desktop has been slow and neglible. Even Mr. Torvalds’ father and sister resist using his Linux creation!

People are continuing to pay hundreds of dollars for Microsoft Windows, instead of the free alternative, for a few reasons:
  1. Bundled with the PC—“For most consumers, Windows is ‘free,’ coming as it does [bundled] with their new PCs.”
  2. Philosophical heartburn, not!—“Typical consumer user has none of the philosophical objections to Windows of some members of the open-source community.”
  3. Net utility—“Windows works well enough that the difficulty involved in switching operating systems outweighs any sling and arrows of using it.”
Linux now comes bundled with other software like web browsers, word processors, and so on in a product called Ubuntu, into an “easy-to-install package.” However, one Ubunto’s main backers implies that it’s really not all that easy to install, as the backer states, “anyone can use it as a primary operating system, as long as they have a technically savvy friend to help with rough patches.”

Mr. Tovalds states “I’m a technical guy, so I tend to believe in the ‘if you build it, they will come’ motto.” However, from a User-centric EA perspective, we believe that business drives technology, and not technology for technology sake. So while Linux is a great option, it’s got to be a product that is truly business-driven. And to be a business-driven product, Linux must become a real alternative to the consumer so that is easy to install, user-friendly, secure, full featured, and responsive to future marketplace changes. Linux should not be selected for end-users or the enterprise based on philosophical discourses or subjective biases, but rather based on net utility.
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September 20, 2007

Microsoft and Enterprise Architecture

Microsoft—with 79,000 employees in 102 countries and global annual revenue of $51.12 billion as of 2007—is the company every consumer loves and hates.

On one hand, Microsoft’s products have transformed the way we use the computer (yeah, I know Apple got there first, but it’s the Microsoft products that we actually use day-to-day). Everything from the Microsoft operating system, office suite, web browser, media player, and so on has made computers understandable, and useable by millions, if not billions of people around the world. The positive impact (excluding the security flaws and pricing) has drastically made our lives better!

On the other hand, Microsoft is a “near-monopoly” with estimated 90%+ market share for Office and Windows O/S. Near-monopolies, like Microsoft are feared to stifle competition, reduce innovation and consumer choice, and drive up prices.

Microsoft has been convicted by the European Commission of having “improperly bundled a media player with its Windows operating system and denied competitors information needed to make their computers work with Microsoft software…fines and penalties could reach…$2.77 billion. “EU officials praised the decision…for protecting consumers.” While “Microsoft backers said, the ruling will stifle innovation by making it tougher to design products with new features.” Additionally, “the EU is reviewing complaints about Microsoft’s Office Software and concerns over how Microsoft bundled encryption and other features in its new Vista operating system.” (Wall Street Journal, 18 September 2007)

From a User-centric EA perspective, there is a similar love-hate relationship with Microsoft. As
architects, we believe and preach standardization, consolidation, interoperability, and integration—all things that Microsoft’s array of products help us achieve ‘relatively’ easily (imagine, if instead of an integrated Office Suite, as well as mail, calendar, task list, and underlying operating system, we had to use an array of non-integrated products-yikes!). However, also as architects, we look to be able acquire innovative technology solutions for our organizations that will help us achieve superior mission performance, and to acquire products at prices that produce the best value for the enterprise—to achieve that we need a marketplace based on healthy competition that drives innovation and price competition.

So we love and need Microsoft, but we fear and loathe the ramifications of such market dominance.

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