Opinions

OEMs can’t do it, so Microsoft DID IT!


This is a follow-up for my previous post on What I think a Windows 8 Tablet should be like.

Intro

Finally, our prayers have been answered. While Computex showed some interesting Windows 8 tablet concepts. Most of it was just gimmicky (Asus Taichi) or rehash of a failure (Acer W510/W700) or plain uncomfortable (Lenovo Yoga).

Before Microsoft Surface

The Acer W700 looks like it may be the closest to my wishlist but then they added that huge useless stand. I sure they can squeeze a couple of Lithium cells in there.

The Acer W510 is interesting because the keyboard has an additional battery & based on the battery life it’s an Atom but is it dual-core? Acer isn’t saying.

Asus Taichi looks very impressive & I’m sure some people is going to love the dual-screen, but can you imagine the current draw on the battery? Even when the screen is off, there’s current leakage which can absolutely kill the battery!

Lenovo Yoga has a flip to the back 360° hinge, so in tablet mode, your hand is caressing the keyboard keys. Very nice if you’re an accordion player, not so nice for the rest of us.

The Future

What is Microsoft to do? Well, they did this!

The Microsoft Surface

Not to be confused with the Super-cool but super-expensive coffee table, the new Surface(s), one for Windows RT & one for Windows 8 Pro, is targeted at the iPad & Android tablet market & the TabletPC market respectively. (The coffee-table is now called PixelSense.)

Microsoft worked in secret for this tablet & the engineering effort shows in the precision in the whole thing. Unlike the iPad, the Surface is also easily repairable like all Microsoft hardware products. See the torx screws at the bottom?

The Fully magnesium-alloy chassis is also used in many hi-end tablets/Ultrabooks from Lenono Thinkpad X series to Fujitsu T & S series because of strength & toughness, but this is an expensive material to use & machine. In the Surface, it’s basically magnesium & Gorilla Glass 2.0 protecting the thing. So this thing is NOT going to be cheap. BOM cost is going to be high. So I’m hoping this is like the 1st-gen Xbox & Microsoft sell at or below cost to secure market share. (Me dreaming…)

Why is Microsoft doing this now?

Some bloggers & tech journalist mentioned threat to the Windows eco-system. What do they mean? Windows is installed in more than 1 billion PCs around the world. When you add up all the Macs + iPad, it’s only 300million. (Phones not included). What threat?

Well, Microsoft’s Windows is 1 of the pillars of profit. Over the years, it’s profitability has reduced slightly. One of the reason is iPad is good enough for many people’s needs + iPhones has 30+% of worldwide smartphone market. Many of these people still need a PC to connect & manage these devices. A big portion has chosen Mac OS to be THAT device. Granted, many of them still buy Windows licenses to run in Parallel, but that’s because they NEED to, not because they WANT to.

The soonest their work don’t need Windows, they wouldn’t even boot up or upgrade their Windows license. Microsoft knows this, hardware makers know this, Apple knows this & now, so does Google with their Chrome OS.

After the uninspiring show at Computex, Microsoft announced this ultra-secret press conference to salvage developers’ interest. Remember, without apps & hardware, the eco-system is dead. Just look at RIM, lotsa BB 10 demos but no devices yet. Developer interest is low.

Apple just finished their WWDC & Google is doing their thing next week. On Wednesday, Microsoft will share Windows Phone 8 Apollo with the rest of the world. Monday was the best time to drop the bomb.

Mostly good reception but doubters exist.

Some bloggers criticized Microsoft for always announcing things way before product availability unlike Apple. These bloggers must not have covered the tech industry for very long or they’re only covering Apple, who deal mostly with consumers.

Microsoft has to announce things early so that companies can set the direction & upgrade path for the next few quarters. CTOs cannot have disruption to their business because a vendor suddenly change or discontinue product lines, something Google is famous for, or new features which are incompatible with company infrastructure, Apple’s forte.

Yes, BYOD is on the rise. But in many industries, accountability & compliance is still paramount. Microsoft is successful because they do not disrupt their product lines like Apple do. Surface is the most logical way of moving forward & setting the bar for OEM to follow, just like how Intel set the Ultrabook reference design. Microsoft is also not withholding any special software features so OEMs can play on even ground when they get their acts together.

Another mitigating factor is, Surface is unlikely to be cheap (assuming Microsoft sell at a premium), so OEMs can differentiate themselves using price & features like the laptops & PC.

Research houses like Ovum pointed out a jarring & horrible user experience. Jarring maybe, horrible? Hardly. If you’re using Win RT, the chances of you dropping to Desktop is low & only for Office 15 which you’d use when you’re sitting down & working with the keyboard cum cover. I’d like to ask Ovum researchers, when you’re on the move, will you be formatting your text & checking grammar or generating numbers of Excel or Access, or will you be taking hand-written notes, audio notes & shooting the event with the camera?

For Surface Pro, a stylus is included so you can still use all your Enterprise software that uses ink. When used as a laptop, the keyboard/mouse is still used & Aero is still easy to navigate. When on the move, Metro takes center-stage. Jarring? Yes, but humans are adaptable.

Will Surface cannibalize OEM tablet sales? Just look at why Google came out with their Nexus series of phones. The OEMs can’t make it well. Look what happened to Samsung after helping Google? Their Galaxy line of smartphones benefitted greatly from getting frontline support from Google & Google’s vision.

In Microsoft case, Microsoft Hardware division designed the tablet in-house, according to Pinoys, the actual device is probably made in China by Pegatron. If we look at the hardware market for Mice & Keyboards, you still have a very healthy eco-system with Microsoft, Logitech & Razor on top, & tons of China/Taiwanese brands serving the mid-to-low end market.

Remember, we’re talking about Windows PCs here, which has more than 1 Billion physical devices. Right now, Microsoft has to grow this tablet market so that eventually these OEMs can rejoin at a later date with compelling products.

If cannibalization is the worry, I think the Surface (& subsequent OEM efforts) may wipe out the OEMs’ own Android tablets & overtake iPads. With a wide variety of Windows tablets to choose from, Microsoft’s vision is to beat the iPad the way they beat the MacIntosh 20 years ago.

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3 thoughts on “OEMs can’t do it, so Microsoft DID IT!

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