Microsoft's Real Problem: The Second Coming of Apple

I agree Micosoft has bigger fish to fry than internet media, but Apple is not going to be their downfall. Their hardware is insanely expensive, and they continue to give the cold shoulder to the enterprise. Microsoft's biggest problem is their Office "suite". They change one thing in a version in one app that is practically required to do business, which then forces people to buy word for the 6th time, when they still only use the features from word95. Their only solution is to break up the suite, which is an obvious rip-off for enterprises (adobe too).

Aren't you being a touch charitable in saying that Gates invested the $150 million to prove it had a competitor. As I recall a condition of that investment was the settlement of the Apple lawsuit against "Microsoft Windows" for the ripoff of Apple's invention of the window. Clearly Apple needed the money and the decision was the right one but Microsoft would have clearly lost the lawsuit had Apple failed. Mr Gates, no dope he, couldn't chance losing the "Windows" poker match. "K"

Well guys ya really hit the Nail on the head this time, Apple and Google are really growing fast, i also agree that they won't be microsoft overnight but every year they double what they did the year before while microsoft stands still or chases after yahoo. People just want computers to work no matter who makes it, as much as i want to believe Vista works, it don't

Anyone who continues to refer to the myth of Apple hardware being "insanely expensive" relative to equivalent Windoze machines doesn't deserve to have anything else they say taken seriously. I suppose next we'll have to hear from some moron telling us that "there's no software for the Mac."

Microsoft has long sold bug-embedded products and now that it has competitors out there offering free browsers it does have to come up with another angle. Not unlike Ma-Bell aka AT&T, Microsoft's only hope is to buy up the competition. What's bad for Microsoft is great for consumers...

A new CEO would boost MSFT stock price 10-15% overnite. Ballmer was a college dorm-mate of Bill Gates. Outside of that connection, he would be an UFC average heavyweight.

MicroSoft should update XP Professional so that hackers cannot enter via the back door. Everyone knows Vista sucks, why does Steve Ballmer admit it. Apple boots up faster, but the prices they charge is cost plus 85. Very rich, hard to swallow. MicroSoft go back to the basics. The ERP business will eventually collapse, SAP has a great advantage pricewise, due to the dollar vs. the Euro factor. There should be a laptop at two pounds that screams on 4 gigs ov ram that can be stuck into a mens jacket pocket. Hook up with a keyboard and monitor and a workstand a the office, but take it with you everywhere

Microsoft's Real Problem is that , the technology landscape is coming towards appliances. MS only has a limited role to play there.

If you think Apple Macs are "insanely expensive" then consider this article: http://www.macworld.com/article/134373/2008/07/laptop_price.html

Regarding hardware, like for like apple hardware to windoz hardware is comparable but there is no $400-500 Mac laptop, $200-300 desktop and several available with windoz. So just more variety, low and high end, for windows. Regarding growth, MSFT is growing in revenues and profit not standing still. They are however completely without leadership in my opinion and chasing stupid deals like Yahoo. The best thin that happened was that mess fell apart they should let it die.

I gotta agree with Dr. No about the cost of the hardware, which is a BIT more but if you factor in all the crap to keep Windows running and the constant and time consuming re-installs, Macs can SAVE a company money and time and time is money you know. If you really wanna save, get some cheap x86 hardware and run Linux. It's free but there's that learning thing. If someone had to learn to use a computer these days, Linux is easier to learn than Windows IMHO.

Look at that a Mac zombie posted a mac link to support their mac view, brilliant! Put down the iKool-Aid. The ipod, and iphone are great products but Apple the company continues to prefer to be hip and cool instead of cost focus and practical, which is what enterprises need. Apple is on its way below 150!

ramkap - Apple's invention of the window? You have got to be kidding me. More like the window/gui that Xerox created,that Apple stole, and that Microsoft copied from Apple. Wasn't it Steve Jobs that said "Good artists copy, great artists steal". I guess, hence Jobs is a great artist.

MSFT office on the MAC has not improved since Word 98. The upgrades are insane and are annoying. I ran 98 on classic as long as possible. MSFT is a bully who needs dominance and subserviance to reign. They are a death cult. They do not enhance the life of their customers they make it worse. Apple Google can gradually take nearly all the PCs from MSFT. They have to keep putting users first...notice how MSFT cannot even buy Yahoo. They are used to stealing technology and cannot negotiate. ORCL and CSCO routinely buy technology to improve. MFST needs to learn or they will become the Xerox of the future.

the OS is not as big issue as in the 1990 - when apple really missed it - jobs left - etc ... Now with the really cool machines and OS Mac has and the iPhone effect - Apple will continue to take market share at MSFT expense .... and Apple didn't do it by themselves - VISTA HELPED A WHOLE BUNCH ....

Love it or hate it, your article was interesting. Nice to see someone write about Apple's core business without obsessing over the iPhone.

"Now, however, with the rise of cloud computing, Google Apps, and cloud-based email and IM, choosing Mac is an ever more viable alternative." This is not what makes Macs a better choice. Word, Excel and Powerpoint are made for the Mac by Microsoft and they work great. Exchange support is there, as well as IM capabilities (All major IM clients work on the Mac as well). The other important thing is the ability to Run Windows over top of OS X. All of these things, combined with cloud apps, make the Mac a perfectly good busniess machine. And I should know.. i support over 100 of them at my work! :) re: Dr. No - Apple has gone to great lengths to dispel the myths about the Mac (mainly costs). if I had a share or AAPL for every time I heard "arent those just for graphics" I'd be typing this form my mansion :) Cost is not just about the upfront payment. It's TCO (total cost of Ownership). A Toyota and GM car may cost the same up front, but that's not the only cost. Maintenance, gas, warranty and how long it lasts all come in to play.

"Now, however, with the rise of cloud computing, Google Apps, and cloud-based email and IM, choosing Mac is an ever more viable alternative." This is not what makes Macs a better choice. Word, Excel and Powerpoint are made for the Mac by Microsoft and they work great. Exchange support is there, as well as IM capabilities (All major IM clients work on the Mac as well). The other important thing is the ability to Run Windows over top of OS X. All of these things, combined with cloud apps, make the Mac a perfectly good busniess machine. And I should know.. i support over 100 of them at my work! :) re: Dr. No - Apple has gone to great lengths to dispel the myths about the Mac (mainly costs). if I had a share or AAPL for every time I heard "arent those just for graphics" I'd be typing this form my mansion :) Cost is not just about the upfront payment. It's TCO (total cost of Ownership). A Toyota and GM car may cost the same up front, but that's not the only cost. Maintenance, gas, warranty and how long it lasts all come in to play.

Apple is on its way below 150???? yeah keep dreaming buddy, MSFT has lost over $50 billion in market cap in the last 3 months, the only thing fueling Msft is that not only is Ballmer the CEO but his also the biggest share holder, it he get's remove the entire company falls apart

In the business world Apple is around 40% more than Dell for computer hardware. Not to mention they aren't really a business-level company. My Dell laptop cost 1800 has more hardware under the case than a $2500 MBP. Also, people that think there are no problems with Apple products and software are dreaming. You might see less, but in a mixed environment you spend more time showing people how to connect to servers and actually use the mac than you will save in Windows support. I think the bigger Apple gets, the more MSFT style it becomes.