Business, General ramblings, Microsoft, Technology, Thoughts, Zune

Microsoft’s Core Competency

I’m back to one of my favorite topics- bashing Microsoft! In one of my previous posts, I had expressed my happiness at the EU decision against Microsoft’s monopoly. This post was triggered because of Microsoft’s announcement of Zune v2. Zune 80 is priced at $249- not at all clever; same pricing as that of an iPod with 80 GB capacity. Which one will you go for? Obviously iPod. OK, all you Zune enthusiasts, don’t start jumping at me now. How many of you are out there any way? I could manually count you 😛 So, don’t tell me that the $249 price tag is very good because we even get Wi-fi. Whom do I exchange music files with? All my friends have iPod, thus putting this Wifi feature out of the scene.

I found an awesome article that talks about Microsoft’s Monopoly in details. Let me quote some of the points that the article made:

Every company has a core competency. What is Microsoft’s? Bill and Steve continuously hawk “innovation” as their core competancy. I’m not so sure. MS-DOS was bought from Seattle Computer. The GUI interface? Wasn’t that started by PARC? Maybe they invented NT? Oops, NT started out as IBM’s OS/2. Internet Explorer? Nope, much of the technology was from the Mosaic browser, licensed from Spyglass. So if they don’t innnovate, what do they do?

So what’s Microsoft’s core competency? My view of the marketplace tells me that their core competancy is monopolization.Microsoft’s main business strategy is the acquisition, exploitation and defense of monopoly power in various marketplaces. Now at last we can explain Microsoft’s loathing for modularity. Modularity enables third parties to interact with Windows. While most normal companies would see this as a customer benefit, Microsoft sees this as a threat to their monopoly. If you can use one piece of non-Microsoft software, and if you can later use that software with somebody else’s software, you can migrate to non-Microsoft software. Would people be tempted to migrate away from crash-prone, intermittent and bloated software if given the chance? Better not give them the chance. Destruction of modularity removes the migration path.

Steve Litt said this in 2000! I just wish that the EU Court decision had come out sooner. I’m just waiting for my ubuntu CD and some free time on my hands.

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