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Category: Microsoft
November 25th, 2009
The Big Question podcast: Will News Corp. really pull its content from Google?
What exactly is Rupert Murdoch up to with his Google saber rattling? Jason Hiner and I handicap the week’s big question and figure out whether News Corp. would really pull its content from Google completely.
The Big Question is a joint production from ZDNet and TechRepublic.
You can play this 19-minute episode from the Flash-based player at the top of the page or:
If you like this podcast, go to to our iTunes page to rate it and leave a short review.
Stories discussed in this episode:
- A Microsoft and News Corp. search pact? It adds up (ZDNet)
- Analyst: News Corp.’s Google saber rattling really about MySpace (ZDNet)
- Microsoft tries toppling Google with a bribe (ZDNet)
- Rupert Murdoch’s grand subscription plan: Much ado over minimal revenue? (ZDNet)
- Cranky Geeks examine Windows 7, AT&T network, and whether Google steals (TechRepublic)
November 24th, 2009
Microsoft CFO Liddell to leave; Klein named new finance chief
Microsoft on Tuesday said that CFO Chris Liddell will leave the company at the end of the year. Peter Klein will take over as CFO.
The move (statement) is notable because Liddell brought a healthy dose of financial discipline to Microsoft. Liddell knew his way around a balance sheet and helped Microsoft cut $3 billion in costs. Liddell, who will work with Klein through a transition period, joined Microsoft in 2005 after being the CFO of International Paper and CEO at Carter Holt Harvey, one of New Zealand’s premier companies.
Klein joined Microsoft in February 2002 and is the CFO of Microsoft’s business unit, the division that includes the Office cash cow. Before coming to Microsoft, Klein worked in a bevy of tech companies including McCaw Cellular and HomeGrocer.com.
November 24th, 2009
TR Dojo: Install Windows 7 from a USB flash drive
Install Windows 7 from a USB flash drive Bill Detwiler shows you how to install Windows 7 from a bootable USB flash drive–created with the free DiskPart utility. Once you’ve watched this TR Dojo video, you can find a link to the original TechRepublic article and print the tip from our TR Dojo Blog.
November 23rd, 2009
Analyst: News Corp.'s Google saber rattling really about MySpace
News Corp.’s alleged dance with Microsoft’s Bing and Rupert Murdoch’s big plan to de-index from Google is likely to be nothing more than saber rattling to secure a semi-respectable MySpace search deal, according to an analyst.
Bernstein analyst Jeffrey Lindsay made some key comments on news that News Corp. is looking to cut a deal with Bing (Financial Times, Techmeme).
Today’s articles reporting that News Corp. is exploring planning to remove its newspaper content from Google’s search engine but keep it on Microsoft are unlikely to cause much angst in Mountain View. We think the reports are saber-rattling from News Corp. to put pressure on Google during the renegotiation of the advertising deal with MySpace. We think Microsoft, as usual, is fishing in troubled waters in the hope that it may get something out of the situation or at least give “market leader” (Microsoft management’s name for Google) a poke in the eye.
The MySpace angle was raised by a reader in my last post. And it makes a lot of sense. News Corp. is trying to pressure Google ponying up money for a MySpace search deal. Google is likely to walk away from the MySpace deal, according to analysts.
Google paid MySpace $900 million guaranteed in a 3-year search in a disaster of a deal. Lindsay reckons that Google has countered with only $50 million in guaranteed revenue.
Lindsay writes:
We think the story has broken at a critical time in the Google-MySpace re-negotiation. In the original deal negotiated three years ago, Google guaranteed payments of $300 million per year ($900 million in total) provided News Corp. and MySpace met certain traffic volumes. This deal has been a large negative to Google (we estimate that at its height it reduced Google’s operating margins by over 100bps), but has been a godsend for MySpace right through the economic downturn. We note, however, that Google’s new CFO, Patrick Pichette has brought a long-absent discipline to AdSense for Content renewals and that instead of agreeing to a renewal of $300 million in guaranteed annual revenues, Google is reported to have counter-offered $50 million in guaranteed revenues – giving some indication of just how uneconomic the original agreement was.
Meanwhile, MySpace’s traffic drop has already lowered Google payments to News Corp., estimates Lindsay.
A few points raised by Lindsay:
- Google drives 11 percent to 14 percent of traffic to News Corp.’s properties.
- Murdoch’s de-index Google plan only works if other news sources follow.
- Google doesn’t need News Corp., which amounts to just 10 basis points of daily traffic (and lower ad revenue). News Corp. gets 12 percent of daily traffic from Google.
- Google would walk away from an uneconomical MySpace deal and Microsoft shareholders won’t be too hip to an expensive deal given losses at the software giant’s online unit.
November 22nd, 2009
A Microsoft and News Corp. search pact? It adds up
Microsoft and News Corp. are reportedly discussing a deal where Rupert Murdoch would take his properties and delist them from Google. These sites would presumably wind up on Bing.
The Financial Times reported that Microsoft and News Corp. have talked about de-indexing its news Web sites from Google. In addition:
The Financial Times has learnt that Microsoft has also approached other big online publishers to persuade them to remove their sites from Google’s search engine.
Crazy? Not if the money is right.
Microsoft’s grand plan would be to hamper Google by taking key properties away. And the software giant’s idea to approach other newspapers makes sense too. After all, Microsoft’s search partner Yahoo is really tight with newspapers.
The big picture here: Microsoft wants to ding Google, but it also wants market share. In many respects, search engines could resemble the stock exchanges. The Nasdaq and New York Stock Exchange spend a lot of time and money on poaching big-name companies from each other. However, the investor doesn’t really care where a company lists shares. You use both exchanges.
Carry that analogy out to search and you see what Microsoft is pushing with Bing. Microsoft only wants to be on par with Google. If Bing has properties that garner attention perhaps consumers will use Microsoft’s search a little more. If folks use Bing and Google throughout the day it’s a clear win for Microsoft.
November 19th, 2009
Do we need a 'beautiful mess' in operating systems? Yup
Should PC makers and other hardware players each cook up their own operating systems in an effort to emulate Apple’s success? The short answer: Yes. The more operating systems the merrier we’ll be.
John Gruber at Daring Fireball makes the argument for a land of multiple operating systems and the idea isn’t as crazy as it sounds. Gruber recaps a post where he argued that there should be multiple operating systems to choose from and then addresses the feedback. The biggest argument for having 35 operating systems instead of three big ones (Windows, Mac and Linux) is the incompatibility argument.
The argument goes like this: It was a mess when there were a bunch of operating systems. Gruber’s reply:
First, it may have been a mess, but it was a beautiful mess. It was glorious. It was fun. The Apple II, the IBM PC and DOS, Commodore, Atari, Acorn. The TI-99/4A.
Gruber argues that we need a beautiful mess again in the PC market. I agree. After all, it’s been fun watching the smartphone industry, which is arguably an operating system mess. There’s Android, iPhone, Research in Motion, Palm, Windows Mobile and Symbian. There’s no clear winner yet—and it’s fun. The OS scrum in the mobile industry is a beautiful mess.
Gruber’s argument to counter all the hand-wringing over a world with a bunch of operating systems: The Web is the glue that will bridge these operating systems. Many of the incompatibility root causes—file formats, various CPUs and storage set-ups—have been solved. Simply put, the industry is better equipped to allow 1,000 operating systems to bloom.
He’s right. And the multiple OS argument is something to keep in mind today as Google dishes out a little more information about the Chrome OS.
November 18th, 2009
Yahoo's dwindling search share: Time to panic?
Microsoft’s Bing search engine continues to grab market share from Yahoo in a perverse dance before these two companies partner in an attempt to conquer Google.
The latest comScore stats tell the tale. Simply put, Microsoft has nearly garnered 10 percent market share as Yahoo gives ground monthly. Google continues to gain share.
Now compare this to the picture at the end of 2008:
The twisted part: Microsoft and Yahoo are future partners on search (assuming regulators play along). 
The companies announced in late July that Yahoo would outsource search to Microsoft. Microsoft CEO Steve Ballmer and Yahoo CEO Carol Bartz looked like long lost college pals.
Since then, Microsoft has systematically grabbed share from Yahoo. It appears that Microsoft will grab its search share with or without Yahoo. And if Microsoft acquires Ask.com, which may be on the block, the software giant picks up more share. Bottom line: Microsoft
has played the Bing marketing game well. By portraying Bing as a rival to Google it has crowded out the No. 2 player—Yahoo.
Is it time for Yahoo to hit the panic button? Bernstein analyst Jeffrey Lindsay addresses the issue in a research note Wednesday.
At a high-level Lindsay reckons:
- Since the Yahoo-Microsoft deal was negotiated Microsoft has grabbed 130 basis points of U.S. search queries.
- 18 percent market share for Yahoo is an unprecedented low.
- Each 100 basis points of share loss equals a penny of earnings per share.
- Yahoo’s 18 percent market share in search is worth $6 per share to investors.
- Yahoo’s search share could fall nearly 4 points before the deal closes.
Lindsay writes:
The deal structure gives Microsoft a perverse incentive to try and gain search share from Yahoo! rather than Google. As Microsoft cranks up its marketing engine to promote trial of Bing, the player it seems to be hurting most is Yahoo! followed at some distance by AOL. Whether this is a deliberate tactic by Microsoft (which we think unlikely) or not, the 130 bps of search share lost by Yahoo! to Bing we estimate has already cost Yahoo! shareholders $0.40/per share.
Even with all of those moving parts, Lindsay says that the financial impact isn’t as severe as some folks fear. Yahoo’s owned and operated sites carry the day. Simply put, Yahoo is more destination than search player.
Nevertheless, Yahoo is in a dangerous limbo here. Yahoo’s search team is more likely to be focused on sending resumes than advancing the ball. Advertisers are holding out for the deal to close before picking sides and they’re likely to go to the alpha male in the Microhoo deal—Microsoft.
And the biggest problem: Google isn’t standing still. Google is ramping up its mobile features and adding features and functionality at a rapid clip.
Also: Yahoo, Microsoft extend negotiations for search pact
- Yahoo: Major businesses have stabilized; update on Microsoft deal
- Yahoo pays its ‘technical debt’ with IT overhaul
- Yahoo’s search strategy: We’re not fighting “the megawatt war”
- Yahoo-Microsoft deal: Details from the SEC filing
- Ballmer on the Microsoft-Yahoo deal: ‘Nobody gets it’
- Microsoft-Yahoo: Gauging the IT integration risks
- It’s official: Microsoft-Yahoo ink 10-year search pact; Regulator scrum begins
November 17th, 2009
Microsoft, former employee settle over spying claims
Way back in January 2009, Microsoft sued a former employee for applying for his job under false pretenses and using his role at the company to gain access to confidential data related to patent litigation he was waging.
Ancora Technologies, the company for which the employee, Miki Mullor, is chairman, announced on Tuesday that a settlement has been reached between Ancora, Mullor, and Microsoft for both claims regarding patent infringement and falsifying information.
The terms of the settlement are confidential, but all parties denied any and all liability, according to a statement.
“I am pleased with this resolution and wish my friends at Microsoft’s Windows division nothing but success with Windows 7 launch,” Mullor said in prepared remarks.
Ancora originally accused several computer makers including Dell, HP and Toshiba of infringing on a patent by allowing customers to bypass the Windows activation process if Windows was preloaded on the computers.
Mullor said he pitched the activation bypass technology to Microsoft during several meetings before he worked there. The company said it wasn’t interested.
Microsoft alleged that Mullor didn’t disclose continued involvement with Ancora, a breach of contract. The company also said that it was entitled to a royalty-free license for Ancora’s patent because Mullor didn’t reveal that he knew about the patent. (Microsoft was working on similar technology.)
November 12th, 2009
Is Windows 7 a Mac OS X wannabe? That explains why I like it
Now, it all makes sense. The reason I liked Windows 7 so much was because its design was inspired by Apple’s Mac OS X.
At least that’s what Microsoft’s partner group manager Simon Aldous told PCR, a UK-based online tech trade pub, in an interview. Specifically, Aldous was asked abiut Windows 7 being a more agile OS and began to talk about how it is basically the next version of Vista - but stripped of a lot of code, more efficient, with a smaller footprint and far more agile. Then, he went on to add:
One of the things that people say an awful lot about the Apple Mac is that the OS is fantastic, that it’s very graphical and easy to use. What we’ve tried to do with Windows 7 – whether it’s traditional format or in a touch format – is create a Mac look and feel in terms of graphics. We’ve significantly improved the graphical user interface, but it’s built on that very stable core Vista technology, which is far more stable than the current Mac platform, for instance.
Whoa? So basically Windows 7 is a Mac OS X wannabe? We Mac fans will have a field day with that comment for years. But wait just a minute there. As soon as word hit Redmond that one of its own uttered such blasphemy, the company took to its official blog to clear the air. A post on the Windows Blog, titled “How we really designed the look and feel of Windows 7,” went up last night.
That post is relatively short, so here it is in its entirety:
An inaccurate quote has been floating around the Internet today about the design origins of Windows 7 and whether its look and feel was “borrowed” from Mac OS X. Unfortunately this came from a Microsoft employee who was not involved in any aspect of designing Windows 7. I hate to say this about one of our own, but his comments were inaccurate and uninformed. If you’re interested in learning more about the design of Windows 7, I suggest reading this AP story with Julie Larson-Green as well as these WSJ (membership required) and Fast Company articles. And here is one of many blog posts on the E7 blog discussing the design process of Windows 7.
The headline on the post is a bit misleading. Author Brandon LeBlanc doesn’t really tell you how the company designed the look and feel of Windows 7. Instead, he points to pretty favorable pieces in other publications so they can explain it.
I’ve said once before that I do like the look and feel of Windows 7 - and even dropped a few bucks to save a Windows Vista laptop that came close to being thrown from the window of a moving car a few times and install Win7 on it. Microsoft can say all it wants to distance itself from the Mac Wannabe comment - but I can’t help but look at the screen of a Windows 7 machine and wonder if this function or that function was supposed to replicate something off of Mac OS X.
I guess this makes me feel like less of a traitor for thinking highly of Windows 7.
November 10th, 2009
TR Dojo: Five reasons why Windows 7 XP Mode will encourage upgrades
Bill Detwiler explains what XP mode is and shares five reasons why it may encourage XP hold outs to upgrade. Once you’ve watched this TR Dojo video, you can find a link to the original TechRepublic article and print the tip from our TR Dojo Blog.
November 5th, 2009
Ballmer: So far, Windows 7 sales are "fantastic"
Talk about pent-up demand.
Windows 7 has only been out for a couple of weeks but sales so far have been “fantastic,” Microsoft CEO Steve Ballmer said at a news briefing in Tokyo today, noting that sales in the first 10 days have exceeded the initial sales of any previous release of a Windows OS.
A Bloomberg report looked at historical numbers and found that Microsoft sold more than triple the number of Windows 7 operating systems than it did with Vista and that revenue was 82 percent higher in that time frame. In addition, Microsoft is now more bullish on the PC market that it was earlier this year. At the news briefing, Ballmer said:
Windows 7 is an example of the kind of innovations that I think are important in the technology marketplace
While in Tokyo, Ballmer said he would like to see the search deal with Yahoo - which is limited to the U.S. - expanded to overseas markets. The ten-year deal, which was reached this summer, is still being finalized. Ballmer didn’t offer any specific details on particular markets he’s interested in or whether Yahoo would be on board with that. But he did acknowledge that Google is the “king of search” and that it will take some hard work to gain traction.
November 4th, 2009
MSN's new home page; Nice, but it won't lure new users
Microsoft rolled up the curtain on a new look for the MSN Home Page, the first redesign in about a decade. (Techmeme)
Strictly from a visual standpoint, it’s a much cleaner and simpler interface than the previous version, which was cluttered with way more links and darker in color. It’s also integrated with local and social elements, too. And, there are areas now where users can preview their Hotmail accounts or get updates from their Windows Live, Facebook and Twitter accounts.
It reminded me a bit of the new home page that Yahoo rolled out a few months back, notably the attempt to be the one-stop shop for all of your personal accounts. Here’s the difference: Yahoo allows you to bring any feed into the page - even services from competing companies such as Google’s GMail. With the MSN page, you’re limited by what Microsoft allows you to bring in. In the image, I’ve noted a few areas to watch.
If you were a MSN Home Page user before, I think you’ll like the new look and the simplicity of it. The designers have clearly put some effort into making it easier to navigate. But if you weren’t a MSN Home Page user in the past, I don’t know that there’s any added value by making MSN your new home page.
In a blog post, the company said this release is a limited one, giving Microsoft the chance to gauge the reaction of users. The company writes:
That behavior has changed immensely as people get more and more adept at using search engines to find what they’re looking for on the Web. The reduced home-page links will be augmented by the deeper integration of Bing search technology.
The company will flip the switch on a full rollout early next year.
October 28th, 2009
Yahoo, Microsoft extend negotiations for search pact
Yahoo and Microsoft said Wednesday that they have agreed to extend the negotiating period for their search ad pact.
The companies had expected to execute a definitive agreement by Oct. 27. Microsoft and Yahoo announced their search deal in late July.
In a regulatory filing, Yahoo said the company and Microsoft have:
“Mutually agreed to extend the period to negotiate and execute a Search and Advertising Services and Sales Agreement and a License Agreement (the “Definitive Agreements”) reflecting and supplementing the provisions of such agreements as set forth in annexes to their binding letter agreement dated July 29, 2009 (the “Letter Agreement”). The Letter Agreement specified that the parties would execute Definitive Agreements by October 27, 2009, but given the complex nature of the transaction, there remain some details to be finalized. The parties are working diligently on finalizing the agreements, have made good progress to date, and have agreed to execute the agreements as expeditiously as possible.”
October 28th, 2009
TR Dojo: Change the registration information in Windows Vista and XP
Bill Detwiler shows you how to change the registration information on your Windows system using a registry hack or TechRepublic’s Vista and XP Registration Changer tools. Once you’ve watched this TR Dojo video, you can find a link to the original TechRepublic article and print the tip from our TR Dojo Blog.
October 27th, 2009
L.A. votes to "Go Google"; pressure shifts to Google and the cloud
Score one for Google and The Cloud.
The Los Angeles City Council today voted unanimously to “Go Google,” approving a $7.25 million contract to outsource the city’s e-mail system to Google’s cloud and transition some 30,000 city employees to the cloud over the coming year, according to a report in the Los Angeles Times.
Clearly, this is a big deal for the city of Los Angeles. But this vote is also monumental for cloud computing as a whole, which has gained popularity and widespread interest but still relatively little adoption as companies - and municipalities, apparently - weigh the anticipated cost benefits over the unknown risks that might come with system failures or data breaches.
The stakes are also high for Google, which has stepped up its campaign for Google Apps, its cloud-based suite of offerings, by highlighting how companies who are fed up with breakdowns and costs of maintaining old legacy systems finally decided to “Go Google.”
Both Google and Microsoft had put in bids for the city’s contract and, at one point, it seemed to be a showdown between the two, representing a bigger winner-take-all battle between old school systems and 21st Century cloud systems. In a post last month, I suggested that a win for Microsoft would show that Outlook and Exchange are still big players and that a win for Google would show that the cloud is ready for prime time.
This doesn’t necessarily mean the beginning of the end for Microsoft in this space. Los Angeles is just one city on this planet - and it’s only 30,000 city employees. But Google clearly has its sights set on the enterprise for the next wave of growth, even to the point that it could overtake - or nicely complement - the advertising business.
At the Gartner IT Symposium 2009 in Orlando earlier this month, Google CEO Eric Schmidt said the largest number of seats for Google runs about 30,000 users and that goal right now is to gain users for its enterprise apps. He sees the enterprise as “humongous,” a multi-billion dollar business that has real potential. By Gartner’s calculations, enterprise accounts for about 3 cents of every dollar that Google makes, leaving plenty of room for growth.
That growth could come from the countless other municipalities, agencies and companies that have been toying with the idea of a move to the cloud but have held back, waiting for someone else to jump off the cliff first.
That’s what happened in L.A. today
October 26th, 2009
Enterprise IT's trust level of Google will increase
TechRepublic’s CIO Jury finds that IT leaders trust Microsoft more than Google as a technology partner, but tune in next year.
Jason Hiner outlines the latest findings in the TechRepublic CIO Jury. In a nutshell, it looks like this:
So why do I expect Google’s standing to look better next year? Last week, I was at the Gartner IT Symposium and you couldn’t escape chatter about Google and what it may be able to do for the enterprise. And here’s what caught my attention: The audience—not the analysts—were yapping about Google in the enterprise.
October 23rd, 2009
Demand for Windows 7, Xbox lifts Microsoft earnings; more losses online
Microsoft said on Friday (techmeme) that strong demand for the just-released Windows 7 operating system and its popular Xbox gaming console lifted the company’s financial results this quarter, beating expectations.
The tech giant said it earned $3.57 billion, or 40 cents per share, on revenue of $12.92 billion for its fiscal first quarter that ended September 30.
Microsoft deferred $1.47 billion in revenue ahead of the launch of Windows 7. With the addition of that, revenue would have been $14.39 billion, with earnings of 52 cents per share.
“We are very pleased with our performance this quarter and particularly by the strong consumer demand for Windows,” CFO Chris Liddell said in a statement. “We also maintained our cost discipline, which allowed us to drive strong earnings performance despite continued tough overall economic conditions.”
October 22nd, 2009
RightNow Technologies CIO talks datacenters, ERP and Windows 7
While attending Gartner Symposium/ITxpo 2009, I spoke with Laef Olson, CIO of RightNow Technologies, about the company’s IT plans for 2010. Olson discussed RightNow’s plans to consolidate and rework its datacenters, an upcoming ERP implementation, and the company’s migration to Windows 7.
October 22nd, 2009
Liveblog: Microsoft CEO Ballmer kicks off Windows 7 availability
NEW YORK — Microsoft CEO Steve Ballmer took the stage today in New York to officially kick off the worldwide availability of Windows 7, the company’s highly-anticipated next-generation operating system.
Here’s a liveblog of the festivities:
October 22nd, 2009
How to know when to send your email to the cloud
Email will ultimately move to the cloud/software as a service model, but the math may not add up for larger companies. How do you know when to make the jump?
Gartner analysts Matthew Cain and James Lundy went through the cloud vs. on-premise email conundrum, but what really made the presentation was a series of charts that serve as decision grids for making a move.
I’ve talked to a bunch of IT executives at the Gartner IT Symposium in Orlando and many of them were at least pondering moving email to the cloud. Gartner reckons that 20 percent of email seats will have a SaaS or cloud model by 2012. In addition, smaller companies will lead the cloud email charge, but large enterprises will tag along. Bottom line: Cloud email costs will be 50 percent less than their on-premise counterparts in 2012.
Here’s the comparison:
Lundy and Cain said that email will move to the cloud for the following reasons:
- Hosted models can deliver significant economies of scale. Most organizations don’t scale past tens of thousands of users, while hosts will ultimately provide services for millions of users.
- Browser-based email will lower costs.
- Storage will be cheaper for cloud email providers.
- And the offline access problem will be solved. Gartner expects hosts like Microsoft and Google to offer offline email access in a browser with a 30-day cache.
Nevertheless, cloud email won’t be for everybody. Enter the second useful chart from Lundy and Cain.
The big takeaway is that you have to consider cloud-based email in long-term planning. The challenge is that there are multiple players. Gartner also expects that Cisco will enter the hosted email game to join Google, Microsoft, IBM and a bevy of others.
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
For daily updates, follow Larry on Twitter.
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