Banned in Redmond
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Finally, after months of rumors, it's official: Microsoft is planning to bundle the core of its Windows Antispyware product into Windows Vista. We know, we know: Bundling is a banned word in Redmond. When a previously standalone Microsoft product or technology is subsumed by another, the result is supposed to be labeled "innovative integration," according to the Microspeak police. It's not hard to understand Microsoft's loathing of the 'B' word. The company has gotten its hand slapped more than once for bundling. You don't have to look further than the U.S. Department of Justice and EU vs. Microsoft cases for examples. But those lessons seem to have been forgotten. Based on recent signs, it looks like Microsoft is gearing up to bundle not just Windows Antispyware, but possibly also some other new wares, into Vista, the version of Windows due in 2006. For the record, I am not 100-percent anti-bundling. I've talked to lots of users about Microsoft's bundling behavior. And as long as bundling makes their lives easier, the users with whom I've spoken are all for it. Competitors, such as RealNetworks, Sun, IBM, etc., argue that bundling reduces customer choice and hurts users in the long run. Microsoft's competitors say if users had a chance to dabble with third-party products which always outshine Microsoft's offerings they'd be willing to shell out for them in a heartbeat. While this argument sounds solid, I have not able to find many users who share this sentiment. But back to Microsoft's bundle-mania. Microsoft has not discussed publicly its plans to add new Windows components to Vista, beyond acknowledging that it will enhance currently bundled technologies, such as Windows Media Player and Internet Explorer. Our sources are saying they are expecting Microsoft to dump Windows Messenger and replace it with MSN Messenger by the time Vista ships. Why Microsoft hasn't done this before is anyone's guess. After all, do there really need to be two consumer-focused instant-messaging offerings coming out of the same company? It's confusing enough that there are separate business (Office Communicator) and consumer IM products from Microsoft, in our humble opinion. At the same time, we we're wagering that Microsoft Mail, the successor to Hotmail that is code-named "Kahuna," is going to replace Outlook Express (which is already bundled into Windows) and find its way into Vista, too. Given that the Softies themselves are referring to Kahuna as "Windows Mail," so our educated guesswork here doesn't seem all that far-fetched.
(The development lead for Windows Mail, Bryan Starbuck, refers to himself as being in charge of "Windows Mail in Windows Vista." That sure sounds like a bundle-in-the-making to us.)
Now that Microsoft has merged the MSN and Windows platform divisions into one of its three newly reorg'd business units, we're betting we could see even more bundling between Windows and the MSN properties, going forward. It will be interesting to watch how Microsoft determines what will end up as a for-pay "service," versus an integrated piece of the Windows puzzle, as things evolve.
What's your take? What other Microsoft products and technologies do you expect Microsoft try to fold into Windows, going forward ? While Redmond's bundling tendencies are bad news for some competitors and partners, are they equally egregious for customers? And is the legal system the best way for those harmed by Microsoft to seek redress?
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Comments (2)
You can see a demo of Windows Mail, the successor to Outlook Express on Channel 9
Posted by Andrew Ahearne | October 18, 2005 6:48 PM
We can call it bundling, but could it also be that Windows is naturally evolving the definition of the OS to include more and more stuff, just as integrated circuits for the PC itself have slowly subsumed more and more hardware (LAN cards, sound cards, video) onto the PC motherboard?
Windows is soooo expensive that its pricing implies that Windows should be an all-in-one solution. Pity that I do not think this is what MS has in mind with Windows Vista.
That being said, I think Microsoft has a strategy for avoiding the bundling label in a legal context: By offering minimal core services that become useful to serious users ONLY if the user subscribes to the perpetual pay complete Web service tied to the stub Vista functionality. The user COULD buy Symantec Norton Internet Security in place of the included MS offering, but--even though the full MS functionality will have a cost too--we can predict that the third-party paid addition will not work as well as the MS perpetual pay enhanced service.
Microsoft is perhaps positioning itself to pick up the users who DO PAY for extras with Vista (and not serve them with bundled cheapware as in the past), such that they BUY MS add-ons instead of competitor products. This explains why even XP will get some Vista features, because the goal is not to preclude sales of add-on software, but to position MS as the choice for add-ons with speedy, agile, and brilliantly conceived MS .Net-based and MS-owned Web services.
In essence, Vista seems to be shaping up as little more than an "advertorial" core for what amounts to perpetual pay computing. This theory would explain the MS plan for numerous Vista versions, which we may speculate will represent degrees of perpetual pay subscription levels, much in the same way add-on "features" are added to landlines and cell phones.
The Vista strategy is extremely clever, because no doubt Vista will work best with apps functioning in the Web/.Net programmatic playpen, while traditional desktop apps will find themselves functional second-cousins to the undoubtedly tightly-integrated MS web services that will make Vista fully fleshed out.
So consumers that often buy extra software will have a strong incentive to pay Microsoft for the extras rather than third parties. There is a hint of this in the MS offer I received as a reward for being a Genuinely Advantaged Windows XP user: One year of the Web-based version of Outlook for about $40 less than what the full desktop-based upgrade might cost here in Canada (a special low price).
Put another way, MS is not bundling desktop-native apps as it did in the past. Rather, MS is bundling a path of least resistance to MS owned and operated Web services, to guide the pay-for-extras users to Microsoft owned properties.
Posted by Keith Risler | October 18, 2005 11:35 PM