Where Should Microsoft Partner Next?

At least a few of the companies, many of them startups, are possible Microsoft acquisitions, too. If the company doesn't have people here shopping for acquisitions, something is grossly wrong.

By the way, Microsoft made an impression in the best way possible—freebees. During the main morning session, Microsoft software was thrown out to the audience, mostly to people sitting up front and waving or shouting. Smart marketing, Microsoft.

I really wanted to attend DEMOfall yesterday—after all, it's taking place in the city where I live, San Diego—but Microsoft's "Get Virtual Now" event was more topical for this blog's targeted readership.

I want to call out three presentations from the morning session:

Familybuilder uses social networks to connect people while they're still alive. Now there's an interesting approach to genealogy—connect with the living instead of the dead. Today, the company introduced a DNA kit to help identify those living relatives.

Microsoft launched Windows Live Spaces based on the precept that people want most to connect with friends, family members and even coworkers. The approach is sensible. But there are many more ways that people can connect online that are, from a product marketing perspective, very sticky. Nothing is stickier than family. My question: Why isn't Microsoft a partner?

Familybuilder's big success, before the launch of today's revamped cross-platform site, was through its Facebook application released in 2007. Familybuilder is also available through Bebo, Hi5, MySpace and Orkut.

A partner like Microsoft could bring something important to Familybuilder: more confidence that personal privacy will be protected. DNA testing opens up a Pandora's box of health privacy disclosure problems. Microsoft's strong privacy policies could and should be example to a company like Familybuilder.

Best Buy Giftag: The retailer demoed its new gift registry application, for Firefox. The first plug-in is available for the open-source browser but not yet for Internet Explorer. It wasn't that long ago that developers released new applications or plug-ins for IE first. Considering that IE still has overwhelming market share and Best Buy is a Microsoft partner, the choice of Firefox should concern folks in Redmond, Wash.

Best Buy will release APIs for Giftag, so that other retailers can tap into the social gift registry service. Giftag already is available for Facebook, and Best Buy plans to release the service for other social networking services and for cell phones. D'oh, mobile handsets. People still shop in stores, right? So the shopper can tag items he or she sees in Best Buy or other retailers. When birthday, Christmas or graduation comes around, friends and relatives can look to the Giftag list to see what the person wants to buy.

Two things: Microsoft has got to be concerned about losing developer mind share, particularly with Google Chrome available in beta. Also, there could be search and social networking synergies with Windows Live services, should Microsoft seek to tap them.

Koollage: The company's Pack 'N Go service packages multimedia content into what it calls a Pod. Koollage is starting with support for the Web and iPhone. For iPhones, Pod overcomes some of the limitations of reading blogs such as Engadget where there is plenty of mixed digital context—text, audio and video. The Koollage Pod can pull together content from a variety of sources, letting pretty much anyone create miniblogs that can be put on blogs, other Web sites or Facebook.

Koollage Pod could solve many of the presentation limitations on cell phones. Too bad for Microsoft that Pod isn't yet available for Windows Mobile. Instead, the big benefit goes to iPhone, which again is another example of where Microsoft has lost mind share and how much Apple's handset is an emerging mobile platform.

There is some great innovation being demonstrated here at DEMOfall 08. Microsoft should really pay attention, particularly as it prepares Windows Live Wave 3. Microsoft should, as it is doing, work to better integrate Live products and services. But there needs to be a more cohesive platform for drawing in smart startups, like the ones here at DEMOfall 08 focused on Web services, too.

I've repeatedly complained that Microsoft's partnering strategy is too much a one-way street. Microsoft partners with other companies by providing developer tools and APIs. Microsoft is much less likely to tap into other developers' services. It's long past time for a fresh approach. Microsoft dominated the PC by setting standards that others adapted to.

But Microsoft doesn't control standards on the Web or the platform. If Microsoft doesn't get with it, Google will work with small developers and over time come to control standards on the Internet in similar way Microsoft does for the PC. Are you listening, Microsoft?