Wintel camp's biggest bet Win8 Intel Microsoft cracks said hidden dangers

Computer store news Foreign media today published an analysis article pointed out that the Wintel camp headed by Microsoft and Intel is now betting on the Windows 8 operating platform, but they will face many challenges in the future In addition to the difficulty in reducing the cost of equipment, Microsoft and Intel "the same bed dream" has become a major hidden danger of this gamble.

The following is the full text of the article:

Build "Universal Front"

Microsoft, Intel (the so-called "Wintel Alliance") and around the "Wintel Alliance ” Taiwanese manufacturers of product development computer equipment are all betting on Windows 8. The Computex Computer Show in Taipei last week clearly shows that the Wintel Alliance and Taiwanese computer makers have established a “unified front”, but it also highlights that this gamble has made the once intimate Wintel Alliance and Taiwanese computer makers There are some cracks in the relationship between them.

The future of Microsoft, Intel and Taiwanese computer and component manufacturers will be tied to this gamble. As the world's largest software developer, Microsoft and Intel, the world's largest chip maker, are undoubtedly the dominant force in the gambling. Microsoft will release the next-generation operating system, Window 8, in the fourth quarter of this year, while porting the Metro user interface for Windows Phone to tablets, laptops and desktops.

Although the traditional click interface will remain, Windows 8 will focus on the touch screen, which can make a strong challenge to Google Android and Apple iOS. Intel is Microsoft's traditional partner in the PC field. In the technology industry's focus on mobile devices, Intel's position began to decline, but also have to endure with Microsoft's "same bed dream" & nbsp; & mdash; Microsoft has chosen to cooperate with Intel rival ARM, the latter chip may be more suitable for Windows 8 system tablet.

Vendors are fighting each other

In addition, computer manufacturers are also involved in this gamble, most of them are Taiwanese manufacturers, and are trying to integrate Microsoft's new operating system and Intel chip architecture into their own homes. In the product, and to make a profit. At the Computex Computer Show in Taiwan, people actually found the relationship between the Wintel camps very subtle — — product prices, promotion methods and ecosystems built around Windows 8 are different.

The release of Windows 8 is considered a new chapter in the history of Windows. UBS analyst Jonah Cheng said: “Does this become an important recovery? It should, at least, help prevent the tablet from eroding the notebook market. "Despite the predominance of the traditional PC market, Microsoft has turned resources and innovations to mobile devices —— Apple's iPhone and iPad are leading the mobile device space. According to market research firm Gartner, global PC shipments fell by 1.4% last year, and this year's growth is expected to be only 4.4%.

In contrast, according to data from another market research organization, IHS, global tablet shipments have risen from 19.4 million units in 2010 to 68.4 million units last year. This growth rate is expected to reach this year. 85%. Gartner expects that the iPad will still account for more than 60% of tablet shipments this year, while the Windows-based tablet market share is only 4%.

Transformational pains

Therefore, Microsoft has no choice but to make significant adjustments to Windows, covering both the traditional PC market and the tablet market. As a result, users who are already fully familiar with the Windows interface will face a period of transformational pain.

At the same time, Intel must rethink the development of its chip business. Intel chips are more focused on data processing than on mobile technology like power consumption. However, Intel is still actively promoting the concept of Ultrabook. The first ultrabooks are similar in appearance to Apple's Macbook Air, but have not yet achieved significant success. Intel is now proposing better chips, better materials, and the design of sliders and folding keyboards. Blur the boundaries between laptops and tablets.

However, it all depends on the computer manufacturer and component suppliers. It is the computer manufacturers and component suppliers that decide whether or not to produce Windows devices and how much profit they can get. This has caused cracks inside the Wintel camp, because Microsoft hopes that every Windows device can use its functions as much as possible, but traditionally, reducing costs is one of the important principles of Taiwan's original equipment manufacturers.

Frank Gillett, principal analyst at Forrester, a market research firm, said: "Microsoft's future fate will be tied to the performance of Windows 8 features by original equipment vendors. ”

Faced with price challenges

Intel is also urging original equipment manufacturers to add new features such as touch screens to attract users’ attention for Ultrabooks, hoping to achieve this in the high-end market. Differentiated from Macbook Air. Intel even signed an agreement with a touchscreen supplier to purchase additional capacity to ensure a stable supply from original equipment vendors. On the one hand, these manufacturers produce computer hardware for OEMs around the world, and on the other hand, they have launched their own branded hardware products.

As a result, due to Intel's excessive focus on quality and functionality, the price of Ultrabook has exceeded the $1,000 mark. Gillette said that the touch screen adds $100 to each Ultrabook. Intel defended the cost of Ultrabooks, saying that although the company could easily provide a lower cost design, the market needed more advanced equipment.

Intel Senior Vice President Tom · Tom Kilroy said: "We can reduce the price of Ultrabook to $399, but we think consumers need more than just low prices. . & rdquo;

Computex Computer Show reflects this differentiation and the ambition of Ultrabook. ASUS's dual-screen ultrabook "Tai Chi" has attracted the attention of the outside world. The top cover of this product is a display screen. Although most vendors seem to fully follow Intel's design recommendations and the functional requirements of Windows 8, the quality varies from product to product.

For example, a device uses a plastic slide, so the separation of the tablet from the keyboard is not possible. Some products are placed in glass covers, indicating that they are still not finished. Although Computex Computer Show became the stage for Windows 8 and its devices, there are still many issues to be solved before Windows 8 is officially released.

The first thing to do is to pay the bill, why to pay the bill, and how much to pay. Every time a device manufacturer purchases a Windows 8 license and an Intel chip, it must pay for it. Software licensing fees and chip fees are equivalent to one-third of the total cost of Ultrabooks, which Gillett says is the most profitable place.

Authorization fees become barriers

Market research firm Frost & Sullivan analyst Serena · Chen (Serene Chan) said that Microsoft plans to charge $100 per Windows 8 license. Compared to the Windows 7 licensing fee has increased significantly, especially compared to the Google Android operating system, the latter is completely free. She said: "Original equipment manufacturers must pay Microsoft's licensing fees will be a major obstacle to the promotion of Windows 8. ” Microsoft did not respond to the Windows 8 licensing fee issue.

Equipment manufacturers say they still want to convince Microsoft to lower the Windows 8 licensing fee. A PC vendor executive said: “We are an important player in the PC market, and perhaps this status enhances our voice in licensing fees and cross-payment negotiations. ” Intel said that although the company's price list is public, its agreement with individual customers is still confidential.

But Gilroy’s attitude is very arrogant, saying that Intel’s investment in chip manufacturing is as high as tens of billions of dollars, and the scale of investment in research and development is similar. He said: "We will not apologize to others because we have leading technology and we hope to get rewards from it." This business model works well. & rdquo;

Nevertheless, as the entire technology industry shifts to a tighter ecosystem that combines developers, cloud services, content, hardware vendors, operating system developers and retailers, Taiwanese computer makers It can only hope that Microsoft and Intel will lend a helping hand to help them bridge the gap between today's slightly outdated Windows ecosystem and its competitors.

For example, can Microsoft create an ecosystem for developers that is not attractive to users, Google, Amazon, and Apple? Microsoft has launched its own app store, but so far it's unclear what Microsoft can do for apps that don't use the Metro interface.

Creating an ecosystem

IT consultant Ovum analyst Richard · Richard Edwards said: "For people, Microsoft must let develop, test, and promote Metro." The process of application becomes a breeze. & rdquo; As for the performance of these products after the release, will depend to a large extent on how they are promoted. As Windows devices (whether tablet, ultrabook, or a hybrid that combines the capabilities of these two devices) may target a higher-end customer base than in the past, promotion will become critical.

It turns out that the promotion of the next generation of Windows devices will mainly fall on the shoulders of Microsoft and Intel. Manufacturers who have already produced such devices can only rely on the promotion efforts of Microsoft and Intel to convince users to purchase their products. For example, Acer Chairman Wang Zhentang told reporters at the Computex Computer Show that he has recently conveyed his concerns to Microsoft CEO Steve Ballmer.

Wang Zhentang said: "I was in Seattle last month. I told Ballmer that they must propose a large-scale promotion. "Wang Zhentang revealed that Ballmer joked that he has been selected by Forbes as the worst performing CEO in 2011. Wang Zhentang said that he told Ballmer, "Although you are the worst CEO in 2011, you still work hard for the future development of the company. & rdquo; Ballmer responded that Microsoft will fight to the end.

For his own benefit, Microsoft may do its best, but another challenge for the Wintel camp is that the relationship between Microsoft and Intel has changed subtly. As an intimate partner, the conflict between Intel and Microsoft was revealed at the Computex Computer Show last week. Microsoft is now strengthening its partnership with Intel's rival ARM to launch a Windows 8 version called Windows RT.

Windows RT will support lower power processors. But at this Computex computer show, it is difficult to find a new generation of devices using Windows RT system. Such devices will be launched later, but Taiwanese OEMs may face increasing price pressures and they have no long or particularly successful history of tablet development.

Market research firm IMS Research highlighted the challenges faced by Taiwanese OEMs on Friday, saying that Apple's competitive pricing strategy has caused the average price of tablets to fall 21% in the past year.