Microsoft Getting Serious About Hosted Models

Just finished reading Bruce Richardson's view that Google is the best personal productivity tool since the introduction of word-processing software. I do not fully agree with his view that technical integration hurdles as well as enormous corporate resistance to switching to a new package could come in the way of Google office( I definitely understand the complexity - but not so convinced about the conclusion). But he is spot on when he says that there is a lot more margin to be had going after Craigslist or the even bigger fish eBay instead of taking on Microsoft directly. Informationweek reports that in an year Microsoft wants to get into hosting in big and small ways by offeing hosted implementations of SharePoint as well as CRM and ERP applications. A handful of service partners now host Microsoft applications for customers; the difference is future customers could choose Microsoft or a partner to run the infrastructure. Technologically, the server equals service thing year by year is making good progress. SharePoint Portal Server and Windows SharePoint Services act as the linchpin for most of Microsoft's current and planned collaboration products and services. To keep the allure of partners alive, Microsoft is making noises that where the software runs-on premises or "in the cloud"-partners with domain expertise and other knowledge will be needed for implementation help. The promised "revenue-neutrality" to partners may mean that they would sell and even customize applications for customers that could run on Microsoft servers. Microsoft’s hosting push is expected to target wide gamut of users & hosted SharePoint could become the basis for a variety of such services. The article concludes by saying that Microsoft is exploring myriad ways to deploy and charge for software, ranging from subscription models a la MSN to easier ways for companies to buy incremental products not in their current Enterprise Agreements. I had been writing
Microsoft appears to be losing customer centricity and their cultural DNA seems to be moving away from incremental innovation –particularly with the windows platform and their inexplicable delay in rolling out Longhorn are clear indications of losing steam. Microsoft will take decades to be out of business as their product basket of offering is wide – and some niches may still save the company.I am still baffled why Microsoft (other than for being selfish about its interest)is not considering providing a hosted solution - when enterprise application software vendors are beginning to provide and stepping up aggression in pushing. Microsoft may end up to be a pale shadow of its present –that would be sad indeed – but the risk is indeed high for Microsoft. Microsoft is lucky that currently there is no one alternative that can dislodge it in key arena's - starting particularly in the desktop segment. While looking at future of microsoft, I wrote that the impending power of Broadband and hosted models are creating a new tapestry very different from what Microsoft is envisaging - one can note that microsoft has lagged behind in most of the new elements in this picture. Many think that hordes of cash, lock-ins and a lack of credible alternative to it would insure microsoft against any downturn in future - I doubt it - while microsoft may be creating froth in the consumer electronics sector- it is appallingly falling behind in its ability to be creative and seems to be losing touch in respect of making new roll outs win in the market - MSN portal, MSN search , declining attraction towards hotmail, the non starter called spaces.msn.com etc - all conclusively point to this. Glorious past is certainly no pointer to great success in future. It is nice to see that Microsoft is planning to take the right moves - Time for Google to pre-empt Microsoft in this move.