Microsoft's innovation focus shifts

The parties "luxury gambling"
Microsoft, Intel's Taiwanese manufacturers of computer equipment have all put their bets on Window 8. The Computex Computer Show in Taipei last week has made it clear that Microsoft and Intel, the Wintel Alliance, have established a "unified front" with Taiwanese computer makers. At the same time, the front line highlights some gaps between the once intimate Wintel Alliance and Taiwanese computer makers.
The bet of this huge gamble is the future of the world's largest software developer. As the world's largest software developer, Microsoft and Intel, the world's largest chip maker, are undoubtedly the biggest players in the game. Microsoft will release the next-generation operating system Window 8 in the fourth quarter of this year and is working on porting the Metro user interface for Windows Phone to tablets, laptops and PC desktops. Although the traditional interface will remain, Windows 8 will focus more on the touch interface to better respond to Android and iOS.
Intel is Microsoft's most important partner in the PC field. However, in the background of the technology industry, the focus is gradually shifting to mobile devices, and because the ARM chip may be more suitable for Windows 8 tablets, Microsoft has chosen to cooperate with Intel's competitor ARM. It is an indisputable fact that Intel's status has declined.
In addition, some Taiwanese computer manufacturers have also participated in this gamble. They are currently working hard to integrate Microsoft's new operating system and Intel chip architecture into the company's products and hope to make a profit. At the Computex computer show that ended last weekend, it was discovered that the relationship between the Wintel camps was very subtle, that is, the price, promotion method and ecosystem of products built around the new Windows system were different.
Swiss bank analyst Jonah Cheng said: “Will this be an important recovery? Maybe. At the very least, this will help prevent tablets from continuing to erode the market share of notebooks. ”
Innovation focus shifting
Although the traditional PC market is still dominant, Microsoft has begun to shift resources and innovative technologies to mobile platforms dominated by Apple's iPhone and iPad. According to market research firm Gartner, global PC shipments fell by 1.4% last year, and this year's growth is expected to be no more than 4.4%. 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, and this year's growth rate is expected to increase to 85%. Gartner expects that the iPad will still account for more than 60% of tablet shipments this year, while the tablet share of Windows will be only 4%.
Therefore, Microsoft can only make major adjustments to Windows products, so that it can also take into account the traditional PC and tablet market. But the inevitable result of this shift is that users who are already fully familiar with Windows operations will have to face a period of transformational pain.
On the other hand, Intel is also rethinking its future development strategy for its chip business. Previously, Intel chips focused on data processing rather than mobile platforms such as power loss. At present, Intel is actively promoting the ultra-pole production line. The first ultrabooks are similar in appearance to the Apple Macbook Air, but have not yet achieved success. Intel's current plan is to blur the boundaries between laptops and tablets by introducing better chips, materials and innovative designs.
Of course, it all depends on the support of computer manufacturers and component suppliers. Because it is they who decide whether to produce Windows devices and decide how much profit margin to get. This causal relationship has created a gap between Microsoft and PC manufacturers, because Microsoft wants every Windows device to use its functions as much as possible, and reducing costs is the most important principle of Taiwanese equipment manufacturers.
Frank Gidett, principal analyst at Forrester, a market research firm, said: "The future of Microsoft's future will be based on the extent to which original equipment vendors are implementing Windows 8 functions.
Intel's sleepy
Intel is also urging device manufacturers to add new features such as touch screens to Ultrabooks, and to push products to the high-end market to achieve differentiated competition with Macbook Air. Intel even signed an agreement with the touch screen supplier to purchase additional capacity to ensure a stable supply rate for original equipment manufacturers. Because these manufacturers on the one hand for the company's OEM hardware, on the other hand also launched their own hardware products. As a result, due to Intel's over-emphasis on quality and functionality, the price of Ultrabook has broken the sensitive $1,000 mark.
Gillette said: "Only the touch screen component adds $100 to Ultrabook. "And Intel has also defended the cost of Ultrabooks. Intel said that although the company can easily provide a lower cost design, the market needs more advanced equipment. Intel Senior Vice President Tom · Tom Kilroy said: "We can easily lower the price of Ultrabook to the standard line of $399, but we don't think this is what consumers need."
Although most manufacturers follow Intel's design recommendations and Windows 8 features, product quality will vary from product to product. For example, if a device uses a sliding component of plastic texture, the separation of the tablet from the keyboard cannot be achieved. Although Computex Computer Show became the performance stage for Windows 8 and its devices, there are still many problems that need to be solved by Microsoft and device manufacturers before the official release of Windows 8.
Authorization Fees
Among them, the first problem that needs to be solved is the license fee. At present, every time a device manufacturer purchases Windows 8 and Intel chips, they need to pay for their own pockets. The internal software license fee and chip cost have reached one-third of the ultra-book cost.
Market research firm Frost & Sullivan analyst Serena · Chen (Serene Chan) said that Microsoft plans to charge $100 for each Windows 8 license, a significant increase compared to Windows 7 license fees, especially It is compared to the completely free Google Android operating system.
In this regard, equipment manufacturers said they still want to convince Microsoft to reduce the licensing fees for Windows 8. A PC vendor executive said: “We are an important player in the PC market, and this position may enhance our position in licensing fees and cross-licensing negotiations. ”
Intel said that although the company's price list is open, the price of the agreement with individual customers is still confidential. Gilroy said that Intel has invested tens of billions of dollars in chip manufacturing and invested a considerable amount of money in research and development. Therefore, Intel will not be uneasy because it has leading technology and wants to profit from it. Moreover, this business model has been working well. ”
Recasting the Wintel Ecosystem
As the entire technology industry moves to a tight ecosystem of developers, cloud services, content vendors, hardware vendors, system developers and retailers, Taiwanese computer makers Hope that Microsoft and Intel will lend a helping hand to help them bridge the gap between today's slightly outdated Windows ecosystem and their rivals.
Microsoft has launched its own app store, but it's unclear how Microsoft will support apps that don't use the Metro interface. Richard Edwards, an analyst at Ovum, a well-known IT consulting firm based in London, UK, said: “Microsoft must first make the system easier to develop, test, and then think of ways to promote Metro applications. & rdquo;
As for the market performance after the product release, it will depend largely on how they are promoted. As Windows devices may target a higher-end customer base than in the past, product promotion will become critical.
The fact that the next generation of Windows device promotion will fall on Microsoft and Intel. Manufacturers who have already produced such devices can only rely on Microsoft and Intel to convince users to buy their own products. For example, Wang Zhentang, chairman of Acer, told reporters at the Computex Computer Show that he had conveyed his concerns to Microsoft CEO Steve Ballmer and Mr. Steve Ballmer.
Wang Zhentang said: “I told Ballmer in Seattle last month that they had to launch a massive promotion. Ballmer answered me that he was named the worst performing CEO in 2011 by Forbes. Then, I told him that although you are the worst CEO in 2011, you still need to work hard for the company's future development. Later, Ballmer said that Microsoft would never be embarrassed. ”
However, another challenge for Wintel is that the relationship between Microsoft and Intel has been subtly changed unconsciously. As a pair of once-intimate comrades, the contradiction between Intel and Microsoft has gradually become public at the Computex computer show last week. The reason is that Microsoft has strengthened its cooperation with Intel's biggest competitor ARM, and launched Windows RT, an ARM-based version of Windows 8.
Windows RT is a new member of the Windows family, focusing on the ARM platform, not sold separately, only pre-installed. In fact, the ARM version of Windows has been closely watched since its inception. On the one hand, this version of Windows will support a new touch interface, and Microsoft hopes to use this system to exert greater influence in the tablet market. On the other hand, for ARM chip manufacturers including Qualcomm, Texas Instruments and Nvidia, the system will further promote the development of the tablet market, attracting more original notebook users

It is reported that based on Windows RT system The device will be launched later, but given the poor performance of Taiwan's original equipment manufacturers in developing tablets, cost factors may still be a major challenge for them to launch this device.