LA Times predictions - part 2
JR posted in Windows, Web news on January 3rd, 2006
This is the second part of my commentary about the excellent article by Sallie Hofmeister of the LA Times.
After the initial part of the article about Google, she goes on to talk about Microsoft’s actions in the wake of its failed attempt to win AOL’s search business. Given that Google retained that place by taking a 5% stake in AOL, Microsoft is now supposedly in the market for some other way of capturing more market for its Internet ambitions. The article points at several expensive candidates; Yahoo (at $90+ billion), InterActiveCorp (of Ask Jeeves, Expedia, Ticketmaster and more), or the crown jewel, Time Warner itself.
Microsoft is facing a challenging year. Google appears to have the momentum, the means and the will to press that advantage. Microsoft’s secure bases are looking less secure than at any recent time. Windows is on hold waiting for the release of Vista late in 2006 and continues to suffer imaging-damaging security breaches on what appears to be a bi-weekly basis. Microsoft Office, meanwhile, is suffering in comparison to its own earlier versions and will be having trouble defining a compelling reason to upgrade when the next version is released.
Next, Microsoft is gambling on finding some way of making the transition to web-based services while retaining their existing base. So far, Microsoft’s Live selections are showing a bit too much “me too” offerings. Don’t count them out, but Microsoft hasn’t shown the same sort of skill in dealing with the web as they did on the desktop. With the restrictions incumbent on a convicted monopolist, they may find it difficult to recapture that same dominance.
The remaining bulk of the article discusses the media merry-go-round of the executives at the various television and movie companies.
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