Where is Microsoft going to end up as a devices company?
The Microsoft Surface

Where is Microsoft going to end up as a devices company?

So, now we are starting to see interesting developments as Microsoft begins to fully morph into a full devices company.

Meg Whitman, the CEO of HP basically has come right out and said she considers Microsoft to be a competitor and not a partner. This is where it gets interesting and is kinda what I talked about last June.

I basically said that Microsoft had declared war on OEM’s.

In that article, I said:

I think that for Microsoft, the Surface is the just beginning of the big push into hardware. I believe that they are being politically delicate about it because it is (understandably) a sensitive issue for OEM’s.

If this push sees moderate success, I believe they will make a Windows Phone and one or two Windows Desktop devices. Why the heck not? Once you start building your own stuff, why stop at tablets and phones?

Microsoft is a publicly traded company – there would be no rational reason to walk away from potential profits if they didn’t have to.

So a year later we are starting to see some of my predictions come true.

Microsoft is building Tablets and accessories and have driven everyone else out of the Windows RT space. Now they have acquired a phone company. They have also openly expressed the fact that they reserve the right to build whatever they choose whenever they choose.

The question now will be the following:

Will Microsoft becoming a full competitor to ALL it’s former partners be a more profitable move than only making more and better software?

It’s not an easy question to answer.

On one hand, people say that Microsoft HAD to make this move. They were running out of revenue streams and the writing was on the wall for desktop PC’s.

On the other hand, Microsoft could be pushing former partners and allies deep into the arms of Google.

It makes no sense to EXCLUSIVELY push Windows 8 tablets when then vendor is also competing with you a la Surface.

It makes no sense to EXCLUSIVELY push Windows Phone 8 when a Surface Phone by Microsoft/Nokia could be on the way.

I’m not sure how this Opera will end but we will start to see some clues when the new line of Surfaces are released. If the public start to see the Surface as the premium tablet for Windows 8.x, why the heck should they buy anything else?

What do you think? Does Microsoft’s shift to being a devices company make sense?

Use the comments below…

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  • Rodney Longoria

    When I was in my youth, I remember Suzuki and Honda (and probably others that I cannot recall) were known for their motorcycles. Then suddenly — they were pushing cars into the American market, with Toyota soon to follow. Did the American automakers take a shine to that? Hell no, they didn’t! But look around the landscape today. All are competing more evenly than ever before. The Americans HAD to step up their game, or be lost and insignificant forever. They learned that if you snooze, you lose. Bitching alone would not solve the problem.

    So, I see a correlation here in that respect. The Japanese had every right to expand into automakers, and after all, it’s not that great a leap from motorcycles to cars. Same as Microsoft now. The Japanese pushed for more innovation from the American manufacturers, who eventually succeeded.

    Also, the Japanese were very astute in bringing their cannot-ignore presence here by building their own plants in the States, thus creating much needed jobs. Lesson learned.

    • http://www.learnabouttheweb.com/ Onuora Amobi

      Point well taken.

      It’ll be interesting to see if it translates well for Microsoft.

      • Rodney Longoria

        You have to realize that Microsoft (or for that matter in recent years concerning Google and Apple’s lawsuits), have never had diplomacy as its strong suit. One good thing IF Alan Mulally does indeed takeover the CEO position for the good guys, is that he does have some diplomatic strengths to bring to the table. That might go along way in soothing a lot of ruffled feathers. I think it could even end up intimidating Google and Apple’s leaders based on his no-nonsense approach. He brings global business respect and credibility that Steve Ballmer cannot; Mulally is a proven winner. Everyone will sit up and take notice, including Microsoft’s partners/vendors/competitors. Just a thought, but we’ll see.

        @Ammalgam:disqus: great site revamp, by the way. It seems faster now. Kudos!