Lessons Microsoft Must Learn from iPhone 2.0
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News Analysis. Apple kicks off its developer conference tomorrow, among strong iPhone 2.0 rumors. Microsoft should be able to generate this kind of excitement, too. |
But Microsoft fails to generate real marketing excitement, and that is something the company has to changelest Windows 7 and newer services such as Live Mesh turn into Vista disasters. Many of the lessons Microsoft should learn from iPhone 2.0 are the same as iPhone 1.0, or iPod. The impending launch of Apple's mobile is context to review what Microsoft must do to right its product marketing wrongs.
Marketing Matters
How many times will I have to write about advertising before somebody at Microsoft gets it? Apple markets the hell out of iPhone, iPod and iTunes. These products don't sell themselves. Then there are the "Get a Mac" ads, which are increasingly anti-Vista spotsand Microsoft doesn't respond to them. How stupid is that?
Microsoft should never have abandoned its Windows Vista "Wow" marketing campaign. Even if Vista didn't live up to the "Wow" promises, something would have been better than nothing. Microsoft is prepping a new $300 million campaign, which presumably will emphasize Windows Vista plus Windows Live, but it's too late in comingand it won't be enough.
For starters, Microsoft wastes too much money with its corporate image, "Your Potential. Our Passion." advertising. Telling people what they might do in the future smacks of Microsoft continually saying what its products will do in the future. It's always the next version will make your life better. How about Microsoft work on endearing people to the products it has got in market now? That's what good advertising does. Microsoft should divert money wasted on the corporate campaign to real product marketing.
The MSN-Olympics tie-in is example of the kind of marketing Microsoft should be doing. People will use Microsoft products and services and, if the Olympic streaming punches, online viewers will have good experiences. End-user experience has got emotional context that can be transferred to Microsoft's broader brands and products.
Something else: Microsoft has got to aggressively market Live Meshwhen the service is ready, of coursecapitalizing on potential lifestyle experiences and also nomenclature. Mesh is a great noun and verb. In marketing, verbs are everything. Mesh is exceptional as a noun, transitive verb and even adjective because of the contexts it can be used and the associated connotations. Some marketing taglines that I can imagine: "Do you Mesh?"; "Make your messy life Meshy"; (Five people standing in circle holding hands) "We Mesh."; etc.
Lifestyle is Everything
The most successful products share something in common: Lifestyle. Apple successfully sells different, but complimentary, lifestyles around iPhone, iMac and iPod/iTunes. T-Mobile hawks a youth texting/socializing lifestyle around Sidekick and RIM an e-mail/connected BlackBerry lifestyle. Harley-Davidson appeals to men who want to feel tough, at least on weekends riding their hogs. But where is the Microsoft lifestyle?
Microsoft isn't clueless about lifestyle. Channel 9, and lesser so sibling sites Channel 8 and 10, promotes a developer lifestyle. There is a gaming lifestyle around Xboxand I contend that emphasis is more important to Xbox 360's success than features such as high definition. Zune also promotes a music lifestyleand surprisingly wellbut iPod is just too big a lifestyle market. But there is no Windows or Windows Mobile lifestyle? But there should be.
Follow Joe's Rules
I have six principles of good product design. In preparing this post I realized that iPhone 1.0 embodies them all. A well-designed technology product should:
- Build on the familiar
- Emphasize simplicity
- Hide complexity
- Let people do something new they wished they could do
- Do what it's supposed to do really well
- When displacing something else, offer a significantly better experience
The iPhone builds on familiar concepts and motifs, such as: touch, gestures, iPod UI and the broader smartphone concept, among others. The device emphasizes simplicity through touch and hides complexity by making meaningful information or features easy to get or interact with. Single taps to Google Maps or weather information are examples. Visual voice mail is another example of emphasizing simplicity while hiding complexity. Through touch, people can do things they wished they could do with mobiles, such as make a Web page appear larger (by double tapping). I will expand on the final two tenets in the next subhead.
Release Version 3.0 Products
There's a saying that three times is a charm for Microsoft, that the company gets products right on the third version. But Apple got iPhone right on the first versionor does it? The mobile device has many shortcomings, starting with no 3G support. Feature for feature, iPhone is hugely deficient compared to other phones in the same class, such as the AT&T Tilt or Nokia N95. Apple instead does more with less, by making the included feature set work very well and in a delightful way.
From a marketing perspective, Live Mesh already is dead. Microsoft ruined a huge marketing opportunity. Mesh got big initial buzz that has since collapsed. Microsoft should have held back announcing Mesh until there was a core feature set that worked very well across the most popular platforms (Mac and Windows) and devices (Symbian, RIM OS and Windows Mobile cell phones). It would have been better to start Live Mesh 1.0, instead of invite-only beta, with sync capabilities that worked really well across a core set of popular devices. The buzz would have grown as people delighted in the huge benefit of getting their content anytime, anywhere and on anything. Microsoft could have intensified the buzz by continually adding new features.
Apple released iPhone into a ridiculously overcrowded market. There are lots of cell phone manufacturers and plenty of people already have mobiles. In iPhone's limited feature set, Apple successfully made the usage experience a whole lot better than other mobiles. Multitouch is delightful to use, and it creates good feelings about using iPhone. Connecting to the Web, getting mapping or weather information and accessing voice mail are remarkably easier tasks than using other mobiles. What touchscreen cell phone user hasn't cursed tapped buttons when his or her face pressed against the device to take a call? The iPhone senses the face and puts the screen to sleep.
Back to Mesh as example: The potential for hugely better experience is there. But Microsoft will never get there by a long protracted beta process. Live Mesh has to launch as a better service, not one built out piecemeal.
Keep Some Secrets
Everybody loves surprises. Microsoft discloses so much information ahead of time, expends so much energy talking about the next version, people already think they know what to expect. They've made up their minds before the products ever release. There is no mystery, no excitement, no sense of belonging to something really special.
Apple builds excitement through secrecy. The Web is full of crazy-ass speculation about what Apple CEO Steve Jobs will announce tomorrow. That's hundreds of millions of dollars in free advertising for Apple. Rumors run wild as people try to decipher WWDC banners, post pictures alleged to be iPhone 2.0 or check shipments for Apple cargo. The hype is simply ridiculous, but it's marketing nirvana Microsoft should want to achieve.
Microsoft relies on many more partners than does Apple and, therefore, needs to disclose more information to them. More doesn't mean all. Microsoft should have secret launches around exciting new products and disclose loads of information after the product announcement. What I'd like to see: A Microsoft smartphone, secretly developed, leaked in dribbles to build some excitement. Bring together technologies from the Danger and TellMe acquisitions, for starters.
Apple has shown how effective can be buzz marketing. The blogosphere and social networks transcend Apple's approach so far. Microsoft actually is better positioned to capitalize on how the Web continues to change how rumors spread. But Microsoft will have to keep some secrets first.


Comments (24)
Microsoft lost control of the Internet!
Help them get it back.
Install Silverlight.
Posted by Outta Kool-Aid | June 8, 2008 2:33 PM
"What I'd like to see: A Microsoft smartphone, secretly developed"
What do you think MSFT is doing as we speak?
Unfortunately for the company, you can't continue to re-combine incompetencies in various different ways to arrive at winning formulas.
Posted by Kontra | June 8, 2008 4:15 PM
The iPhone 2 is going to be wicked. Prepare for the end game.
Posted by Partners in Grime | June 8, 2008 4:48 PM
Original iPhone: Check.
iPhone 2: Checkmate.
Posted by Lead Goat | June 8, 2008 4:50 PM
Great article. Microsoft is so big and stupid that it has to keep running in the same direction due to past's momentum.
Posted by Ikram | June 8, 2008 5:04 PM
what diversity of thought, here at microsoft watch.
Posted by cows | June 8, 2008 6:14 PM
Microsoft has no culture.
Cheesy ads with crap songs.
Silverlight is aimed at Adobe.
Flash rules, Silverlight suck.
Bill... you pay what you stole
from Steve. It's just the beginning
of 'your' Karma for what you've done.
Your market has only turn 3-4 folds in
the past ten years, while Apple has made
38 folds in the past decade with 20 out of
the last five. Apple is READY TO FIGHT BACK!
Posted by Ken | June 8, 2008 6:25 PM
Microsoft people do not do experience. They are too busy trying to please senior people who have no emotions.
Posted by Mark | June 8, 2008 7:37 PM
Microsoft doesn't market Windows because it doesn't need to. Vista is a piece of crap and yet they still sold 100M licenses of it over the last year. It passed Mac's in terms of market share in a matter of weeks.
You market when people have a choice and you want them to buy your product. Windows isn't like that, people have almost no choice but to run it (and they hate it). Marketing it would just be a waste of money. Better to spend the $$$ on trying to fix the bugs rather than taking their 95% market share to 96%.
Posted by fred | June 8, 2008 8:50 PM
Ikram has it right as large corporations never move quickly enough to scale well when it comes to pinpointing trends or customer desires.
And Mark points out the systemic result of having such a large body with fists-of-iron rulers.
Posted by portuno | June 8, 2008 9:36 PM
I agree with your assessment of Microsoft's marketing missteps. In fact, their whole series of ads targeting developers seems to be targeting very immature (not to mention, inexperienced) subset.
"Your potential, our passion" is empty, but it's probably the least foolish slogan they have. "Defy all challenges" is far worse. It really should say "Accept and prevail over all challenges". Defying challenges means acting as if they don't exist. Apparently, Microsoft hires mentally retarded monkeys to write these ads.
And the security-oriented ads are even worse. Telling us how to protect against a skeleton, witches, and other fairy-tale creatures is just telling the world that Microsoft is too stupid to know what a real threat looks like, or else views their developer base as morons. This series of advertisements tell us that if it weren't for their monopoly position, their software would be thrown in the dump with the rest of the trash.
And Joe, I believe that we see anti-Vista ads from Apple but we don't see Vista WOW ads from Microsoft is because there's got to be some truth in the ads to give them credibility. People buying moderately expensive technology need some substance, and Microsoft's ad campaign for Vista pretty much tells us that they don't have anything positive to say that is true. You can sell a dish of dirt and call it food in some parts of the world, but that doesn't work here. Besides, Microsoft doesn't need to advertise Vista; they already have a large enough monopoly to make any ad campaign superfluous. At least, on the Vista front, they are wise enough to follow the advice, "Keep silent and be thought a fool, or open your mouth and remove all doubt."
But Silverlight is the one bright spot in Microsoft's line-up. Bright, for them and for those who worship them. Creating a compelling framework that locks out Linux (moonlight is NOT a viable option, and they'll probably find a way to make it illegal anyway) and then locking out Linux users from viewing their video streams of the Olympics is sheer evil genius.
I likely won't be watching the Olympics via Microsoft's Silverlight because it won't be playable from Linux. But a large-screen LCD TV with high-definition digital satellite will provide a ten-thousand-billion percent better viewing experience anyway, and the DVR will let me watch it when I want to anyway.
Posted by Philosopher | June 8, 2008 9:38 PM
If Apple is sooooooo good at advertising and building hype and mystery about its products, how come the Mac is sooooooo far behind the PC??
Methinks it is more to do with openness in the PC than advertising hype or lifestyle pushing. I can do what I want with the composition of my PC with a huge choice if components and component brands for little cost but I can't do that with a Mac.
Posted by Bernie | June 8, 2008 10:47 PM
Not to purposefully be offensive Joe, but -
worst. taglines. ever.
Posted by whatever | June 8, 2008 11:16 PM
I can't wait for tomorrow when I can order my new MacbookPro and get a free iPod Touch because I'm a college student. Oh, and only because I have a few engineering programs that require Windows, I'll be installing Windows XP instead of Vista even though the Macbook will run Vista faster than any poorly designed Dell or HP. Why can't MS own up to their horrible trainwreck called Vista? I think a lot of people are pissed simply because MS is so silent about it. They can't admit a mistake and simply fix it. Perhaps they're thinking "Maybe if we just sit here and twiddle our thumbs people will forget about it..."
Posted by Chris | June 9, 2008 12:28 AM
Being silent is Microsoft's new "strategy". It's worked for Ray Ozzie for the past couple of years. Nobody's pressed him to answer questions about a web development effort that's been silent and unseen since he's started.
So Ballmer realies stealth is the way to go. He won't respond to questions because he thinks he's showing how brilliant he is by the "for me to know and for you to find out" method.
Oh yeah. Brilliant. A freaking genius.
Posted by portuno | June 9, 2008 12:52 AM
Someone said:
If Apple is sooooooo good at advertising and building hype and mystery about its products, how come the Mac is sooooooo far behind the PC??
Methinks it is more to do with openness in the PC than advertising hype or lifestyle pushing. I can do what I want with the composition of my PC with a huge choice if components and component brands for little cost but I can't do that with a Mac.
This comment is so 15 years ago it hurts. Dude... get with the times. Crawl out from under that rock and take in a reality check.
Mac OS X is more open than you can possibly imagine.
http://www.apple.com/opensource/
In addition, Apple hardware can use off the shelf components. RAM, hard drives, PCI cards, CPUs, etc.
Sheez, if you want, you can run Windows on the damn things.
Posted by cbf | June 9, 2008 7:19 AM
Gee i can hardly wait for a MSFT Phone. Lemme guess...will it have Windows Genuine Advantage and maybe 45 minutes of talk time due to the high hardware requirements. But for a upgrade can one get two hours talk time? If one puts more Ram in it can you talk faster? I wonder if it will come with Windows 7 capable stickers.
(Please don't spit out your coffee...computer screens are not that cheap)
....I can't wait for the open source community to get their hands on it, run Linux on it, jailbreak it, run VoIP on it and make it functional.
Can't wait to see what the shills will say...
"Just like Zune out sold the iPOD and put iTunes out of business, the MSFT phone will put Apple and iPhone out of business too..."
Posted by Ralph | June 9, 2008 8:05 AM
"If Apple is sooooooo good at advertising and building hype and mystery about its products, how come the Mac is sooooooo far behind the PC??"
Far behind in what way? Sheer numbers of desktop users? Yes, it's far behind in that number. But, by the same reasoning, excrement must be good to eat because a billion flies can't possibly be wrong.
Most PCs are much cheaper than iMacs, and the fact that they have higher desktop numbers means that people must be getting out of PCs what they need and are not be hampered much by the lack of integration and quality.
However, I can tell you from experience that serious at-home video editing is cheapest and most reliable on iMac running Final Cut Express. But most people don't do this, and so they don't really care. And, yes, people who use their desktop computer for just email, IM, memos, and downloading porn do seem to be in the majority, numbers-wise.
And don't forget that Mac's share is growing. It's small, but it's growing. And Linux is seriously bothering Steve Ballmer; his ads may proclaim otherwise, but his actions and his threats tells us that he sees Linux and open source software as his most serious competition. And his temper shows us that he doesn't really know what to do about it. Silverlight is his only viable product weapon right now. All of his other weapons consist of the use of his monopoly position to buy politicians in leadership positions. But people around the world are catching on.
Posted by Philosopher | June 9, 2008 9:19 AM
(hint to Chris. DONT install XP on a Mac, Just get VMWare Fusion and install XP in a window. Much faster, just dont let the crap touch the metal..)
Hmm. 80% of laptops in US universities and colleges are now Mac. Guess where you have a choice, the choice is Mac. How far behind is corporates ? When they cant get XP anymore ?
Vista is an unmitigated disaster - so much so that Billg and SteveUncleFester are now talking up windows 7.
Meanwhile, Linux (Ubuntu, etc) steal the desktop, OpenOffice (NeoOffice, Symphony) steal office licenses and the development platforms that MS peddle (Silverlight and .Net 3.x) are largely ignored.
The only thing that isnt looking like a train wreck yet is Windows Server 2008. But as its built on the Vista core, expect much when it hits manufacturing. Can we all say 'Conservative adoption' ?
Myself, I'd be looking to replace Steve Ballmer pretty soon...
Oh. And Share Price ? Phhhhhhhhhfffft.
---* Bill
Posted by Bill Buchan | June 9, 2008 2:43 PM
Joe: Thanks for writing this so now the cult of Apple fanatics can chime in with their 'MS sucks, Apple rules' comments.
I would make an intelligent comment about your article but I don't see the point in ruining the rampant idiocy theme.
Posted by BlahBlah | June 9, 2008 5:51 PM
Joe,
Micro$oft is a monopoly, and as such, they have to do very little. As long as Windows is pre-installed on most OEM pc's, the Empire is safe. Both Office and Windows will be safe as such, and long as Windows is forced on users by the OEM's. Here lays the problems, Vista is a bad product, at least in that it really does not offer anything compelling over XP, and requires a whole lot more hardware and horsepower to run the Vista bloatware DRM POS. So in that regard, Vista is a big step backwords for a lot of people, again, once you also add in the amount of software that ran on XP, that will not on Vista.
But still, the Empire is safe, because of the monopoly of pre-installs on OEM's. But there is a problem brewing. Vista is not well recieved, Mac is gaining share in the most profitable share of the high end market. XP had to be extended because Vista is too slow to run on low end machines. Another case of failure for MS reading the market and releasing Vista on users.
The problem for MS, is they are a creature of their own marketing. MS created all the security problems in Windows, by never setting up these systems, with a limited user account, that actually worked well. While Vista UAC is not a limited user account, it was a half baked step in the right direction, but sadly it broke (that and DRM) compatibility with too many programs, especially the 3rd party security programs, that where written for XP. Which really, all said and done, Vista might even be a step backwards as far as security, since it broke so many good programs.
Microsoft needs to do this, foremost before anything else. It needs to secure its operating systems, for the average home end users. ENOUGH already in MS poorly attempts at doing something incrementally. Its not working. Vista is coming in the door for spyware removal just like XP. Only Linux and Mac do not.
Billy Gates, tear down this security problem in Windows, and fix it. This have gone on forever, and users are not going take it anymore. The governments of this world should mandate that MS conforms to safe sercurity measures. Anti-malware programs are not keeping up with the new flood of malware written. MS does not want to fix the problem, they want to sell you Onecare on a yearly basis, for the problem, that they, Microsoft, created in the first place!
Web-based malware on legit sites soars
http://news.zdnet.co.uk/security/0,1000000189,39429909,00.htm?r=6
Quotes from the link:
"The fastest-growing category of threats hosted on the sites was backdoor and password-stealing malware, which increased 855 percent from May 2007 to May 2008. There was also a 220 percent increase in the amount of Trojans, viruses, and other malicious code being hosted on the web, according to ScanSafe."
Posted by chips | June 9, 2008 7:47 PM
@chips:
You are so right! And the real problem is that Microsoft was too short-sighted or just plain stupid (or both) to put security into Windows right from the start and do it right. Done right includes making it so that application developers have no choice.
As old as it is, Unix/Linux security was there from the get-go. It basically gives any application free run of only the $HOME directory of the currently running user. As such, applications cannot write willy-nilly all over the place. The path of least resistance is to write only within the $HOME directory tree.
But on Windows, application developers can write any old place they feel like it. And because Microsoft let the huge mass after-market go anywhere and everywhere their little hearts (and littler brains) desired, the damage has been done. It's too late now to force even a well-designed security model into the system. The path of least resistance has already been defined and implemented by millions of developers.
So Microsoft has royally painted themselves into the Mother of All Corners. Do security right, and it breaks everything. Do it partly right, and it breaks lots of things but is still relatively useless at best and annoying at worst. And the worst possible scenario: Build a Johnny-come-lately security model that kisses up to Hollywood and treats users as criminals. A classic case of Karma... or, the security-model chickens are finally coming home to roost. If Bill and Steve aren't smart enough to dig themselves out of this deep, deep hole, then it's curtains for Microsoft's growth, soon to be followed by slow collapse.
And for those who put the blame on the shoulders of application developers, heed well the fate of would-be desktop operating systems that force developers into major and expensive changes for a small market. Vista might be the future, but for now, people gotta eat, and porting to Vista is like porting to OS/2 or Linux: too much work for a too-small market.
@BlahBlah:
Bash Vista? Me? Microsoft and Hollywood have already bashed it beyond all any of us can do. Is it written in some holy book that Microsoft is the holy of holies and must be worshipped and never ever blasphemed? Sheesh! Go curl up with a copy of "The Road Ahead" and don't aggravate yourself any further!
Posted by Philosopher | June 9, 2008 11:31 PM
The 'wow' of Vista is 'Wow! Is that really all you've got after all this time? And, given its speed problems, why on earth did you put that DRM stuff in?'
Vista and its DRM makes shooting yourself in the foot look like sound common sense. There was a time when IBM behaved like this and lost its leadership position in a new and exciting field.
There is another 'wow' factor: 'Wow! In the supposed "land of the free", why did governments allow MS its monopoly and do nothing effective about its behaviour? Why has the "little guy" always been trampled on?' The answer, of course, is 'campaign funds'.
Posted by Arthur Norton | June 10, 2008 11:40 AM
Dell touts Windows XP to 2009 - and 'likely longer'
http://www.theregister.co.uk/2008/06/09/windows_xp_dell_second_reprieve/
Quote from the link; "The official June 30 cut-off date for Windows XP is getting even fuzzier, with Dell vowing to sell PCs running the operating system until "at least 2009".
The company has told customers Windows XP Professional will be available for OEM installation on PCs "through at least 2009 and likely longer", Neowin reports"
----------------------------------------------------
Now these are probably more downgrade rights which MS will count as Vista sales again. The fact is Dell, and perhaps others, know that Vi$ta is hurting their sales, and so a rebellion against Vi$ta is starting to take place. There is a market for PC's without Vi$ta on it. And Windows Seven will just be Vista SP2.
Posted by chips | June 10, 2008 12:22 PM