On Tap: Gates & Jobs at All Things D
On tap this shortened work week, Bill Gates and Steve Jobs will make a joint appearance in a discussion at the WSJ and Walt Mossberg’s annual D: All Things Digital conference.
A few years ago, these two on the same stage would have been a bigger deal. But these days Apple is no longer Microsoft’s biggest threat, Google is.
Above: All Things D’s John Paczkowski points out that many are now labeling Google the new evil empire.
Microsoft has turned most of its attention to the increasing competition from Google in the race to put everything online.
Apple now defines themselves primarily by their core competency as a producer of high end hardware with more user-friendly interfaces. Apple knows what it’s good at and they’re cool. It’s a lot cheaper to buy a Zune or a PC but wouldn’t you rather have an iPod or a MacBook?
Microsoft’s core software business is no longer the cash-cow it was because they were too slow to experiment with new online alternatives. Google Docs for is a good low-cost alternative to MS Office that Microsoft has been extremely slow to match.
Above: Search Market Share for Google has grown more than 10% over the past year.
Microsoft has the advantage of a massive user-base but they will need to embrace openness and create new revenue streams to stay competitive. This is what let them to buy AQNT for what was probably more than they’re worth. But buyouts are not enough.
Open-source software and online alternatives continue to slowly eat up market share. Unless Microsoft allows users of their products the flexibility of these other platforms and embraces interaction more will leave.
Above: A comparative chart of share by service (if anyone has newer data drop us a line)
The bottom line is that Microsoft behaves like an old company while Google behaves in many ways like a true web 2.0 brand. Google embraces feedback and most of Amy Jo Kim’s 5 Mechanics of Online Communities.
Users respond to this and Google reacts making its products better as a result. Rather than react to web 2.0 by purchasing new media companies, Microsoft should unbutton the top button and behave like the new media company they seem to want to be.