Microsoft Faces Web Competitors
By Alan Sipress
Washington Post Staff Writer
Tuesday, January 30, 2007; D01
About a decade ago, Microsoft's Windows made up the brains of nearly every computer. It trounced the competition, and people lined up to buy the latest version of the signature software.
Microsoft now stands in a different place. Its release today of its Windows Vista operating system for consumers comes at a time when it is losing ground to Web-based competitors like Google. Moreover, the company faces a multi-front war on games, search and Internet advertising, as well as for its core Windows products.
So much rides on the release of Vista that Microsoft has launched an unprecedented global campaign estimated at up to half a billion dollars to market a product that has lost much of its sex appeal but remains essential to the company's financial well-being and its strategy for countering the challenge from Internet companies offering competing services over the Web.
In China, Microsoft is promoting Vista with a laser display along the Shanghai waterfront while a huge, interactive laptop computer has been erected in Germany. Closer to home, Microsoft has signed such celebrities as NBA star LeBron James to appear in Vista advertisements. Chairman Bill Gates took to the television airwaves yesterday, pitching Vista on the "Today" show by morning and on the "Daily Show With Jon Stewart" by night.
All told, Vista hits shelves this week at more than 39,000 retail locations in more than 30 countries. About 55 hardware and software vendors are marketing the operating system with Microsoft, and some retail chains are offering hourly giveaways for such items as Microsoft's Xbox 360 game console.
Vista's release, which coincides with the consumer debut of Microsoft's latest version of its Office software, is among the most fateful in the company's storied history. These two products represent an overwhelming share of the company's profit and an estimated $12.5 billion in revenue over the past six months.
"Windows and Office are at the heart of the company," said Brad Goldberg, general manager of Windows products. Vista's main selling points include more security features, including encryption and tighter controls on access to the computer, as well as greater flexibility for use on laptops and mobile devices. The software also makes the computer more entertaining by including features to create and play videos and better manage photographs, the company said.
Success defending its flagship products is crucial for Microsoft at a time when relative newcomers, particularly Google, lead with newer consumer services such as search engines and command more Internet advertising revenue.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/29/AR2007012900497_pf.html
By Alan Sipress
Washington Post Staff Writer
Tuesday, January 30, 2007; D01
About a decade ago, Microsoft's Windows made up the brains of nearly every computer. It trounced the competition, and people lined up to buy the latest version of the signature software.
Microsoft now stands in a different place. Its release today of its Windows Vista operating system for consumers comes at a time when it is losing ground to Web-based competitors like Google. Moreover, the company faces a multi-front war on games, search and Internet advertising, as well as for its core Windows products.
So much rides on the release of Vista that Microsoft has launched an unprecedented global campaign estimated at up to half a billion dollars to market a product that has lost much of its sex appeal but remains essential to the company's financial well-being and its strategy for countering the challenge from Internet companies offering competing services over the Web.
In China, Microsoft is promoting Vista with a laser display along the Shanghai waterfront while a huge, interactive laptop computer has been erected in Germany. Closer to home, Microsoft has signed such celebrities as NBA star LeBron James to appear in Vista advertisements. Chairman Bill Gates took to the television airwaves yesterday, pitching Vista on the "Today" show by morning and on the "Daily Show With Jon Stewart" by night.
All told, Vista hits shelves this week at more than 39,000 retail locations in more than 30 countries. About 55 hardware and software vendors are marketing the operating system with Microsoft, and some retail chains are offering hourly giveaways for such items as Microsoft's Xbox 360 game console.
Vista's release, which coincides with the consumer debut of Microsoft's latest version of its Office software, is among the most fateful in the company's storied history. These two products represent an overwhelming share of the company's profit and an estimated $12.5 billion in revenue over the past six months.
"Windows and Office are at the heart of the company," said Brad Goldberg, general manager of Windows products. Vista's main selling points include more security features, including encryption and tighter controls on access to the computer, as well as greater flexibility for use on laptops and mobile devices. The software also makes the computer more entertaining by including features to create and play videos and better manage photographs, the company said.
Success defending its flagship products is crucial for Microsoft at a time when relative newcomers, particularly Google, lead with newer consumer services such as search engines and command more Internet advertising revenue.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/29/AR2007012900497_pf.html
