Windows Live to Get First OEM Bundle
|
Microsoft will imminently announce its first PC-bundling deal for Windows Live. |
Sources wouldn't identify the PC manufacturer, but Dell is unlikely to be the partner. In May 2006, Google cut a deal with Dell for bundling its software and services.
Gateway, HP and Lenovo are likeliest candidates for the bundling deal, with the latter two offering biggest benefit to Microsoft, because of their global reach.
The initial bundling would be for the Live homepage and Windows Live Toolbar, according to sources. Live search also is expected to be included in the deal. Other products or services could come in the future.
Sources couldn't comment on financial terms, if there are any. Software and services vendors typically pay PC manufacturers a bounty for placement on the Windows desktop, or—in the case of Vista—the Windows Welcome Center. Google ponied up $1 billion for its bundling deal with Dell.
Even if the deal were with a smaller OEM, such as Gateway or Sony, Microsoft could claim some advantage in its competitive position with Google. The Dell deal made Google the default home page and bundled in Google search and software, including its search tool bar. Microsoft's bundling deal also would benefit the fledgling Live portal. Hitherto, PC manufacturers choosing a Microsoft portal had MSN as the choice.
The deal would come as uncertainty arises about the future of Windows Live. Two top Live executives—Blake Irving and Chris Payne—are expected to leave by summer. The deal confirms that Microsoft is, at least in some fashion, still committed to Live as a brand. Directionally, the bundling arrangement shows where Live is going. Last week, in a quiet executive reshuffling, some prominent Windows executives took on new roles in Microsoft's Online Services group, which is responsible for Live.
Sources tell Microsoft Watch that in the months before the November 2005 launch of Windows Live, the operating system division began absorbing what had been previously been MSN. Recent executive changes reflect the Windows organization's increasing role and control over MSN/Live. The bundling deal also reflects the directional shift, as MSN/Live moves away from being a separate online service to serving as an adjunct to bolstering either Office or Windows.
The bundling deal could give Microsoft competitors new fuel to fire complaints with government regulators. In its default configuration, Vista's new Windows Welcome Center, which consumers see immediately on bootup, serves up offers to six Microsoft products or services, such as Windows Live OneCare and Search. In summer 2001, Microsoft opened up the desktop, allowing PC manufacturers to place whatever icons they chose there, as a concession in the U.S. antitrust case. Competitors could argue that the Welcome Center placement, which is highly prominent, negates the desktop icon concessions Microsoft made before Windows XP shipped. Liive bundling with a major PC manufacturer, particularly with the reach of HP or Lenovo, could add legitimacy to competitor complaints.
Because of the three-hour East-West coast time difference, Microsoft could not be reached for comment.
Related Posts:
- Who Shot Windows Live?, Microsoft Watch, March 8, 2007
- Wanted: Dead or Live, Microsoft Watch, March 2, 2007
- What Is Microsoft's Services Platform?, Microsoft Watch, March 1, 2007
- Ray Ozzie Speaks Out, Microsoft Watch, Feb. 27, 2007
- Ray Ozzie's 20 Questions, Microsoft Watch, Feb. 26, 2007
- What Ray Ozzie Needs to Say About Microsoft Live Versus Google, eWeek, Feb. 26, 2007
- Why Google Matters to Microsoft, Microsoft Watch, Feb. 22, 2007
- Google and Long Tail Computing, Microsoft Watch, Feb. 22, 2007
- Google vs. Microsoft: How many $50 Apps Premier Licenses Does It Take to Equal $12B in Annual Sales?, Google Watch, Feb. 22, 2007
- Live Hotmail is Too Hot, Microsoft Watch, Feb. 8, 2007
- Ouch! You've Been Live Branded, Microsoft Watch, Feb. 2, 2007
- MSN/Live Search Declines 10%, Is the Only Search Service Shrinking, Google Watch, Feb. 2, 2007
- Microsoft Flubs Live branding, but Google Ain't Exactly a Marketing Genius, Google Watch, Jan. 30, 2007
- It's a Shame About Ray, Microsoft Watch, Dec. 8, 2006
Comments (7)
It is great to see Microsoft continue to push the Live brand. Hopefully they are able to gain some ground on Google in the search market. Time will tell but Microsoft seems to push harder and harder since Google started a compition with Office.
Maybe Google threw a rock and woke up the Bear. Maybe it was just what Microsoft needed.
Posted by Jake | March 13, 2007 11:59 AM
In addition, "Qwest Windows Live" DSL was announced last June, but hasn't shipped yet.
http://www.qwest.com/about/media/pressroom/1,1281,1895_archive,00.html
I think Verizon DSL has a similar agreement.
Posted by TomT | March 13, 2007 2:18 PM
This is a great move on Microsoft's part. Because I really like HP, I really hope that they are the OEM that Microsoft decided to bundle Live with, and it would appropriate too because the whole Microsoft-HP partnership that they continue to build (Home Server, business solutions, etc.).
Posted by Albert | March 13, 2007 10:05 PM
This type of prebundling verges monopoly abuse. It is also similar to what Microsoft recently referred to as "craplets".
Posted by Roy Schestowitz | March 14, 2007 6:45 AM
I can see the lawsuits already! Microsoft has handcuffed certain marketing opportunities by being too successful...
Posted by Spencer Ferguson | March 20, 2007 6:24 PM
Well, Live is obviously in need for a bit of a boost. I'll be honest, I tried it for two weeks, just to give them the benefit of the doubt. I find myself back on Google.
Maybe I'm just used to what I know-- but when I first got on the net I used to use Yahoo extensively. Then I was introduced to Google, and found myself using google more and more.
Why? I don't know why, really. Maybe Google was just faster than Yahoo. It's interface seems better than Live as well, at the moment, and it's results just... better. I can't really explain it. Live just didn't seem as much fun to use as Google, and came up with some pretty shocking results in searches (as a copy writer, I do a lot of internet research.)
Google just seems to still win... and live needs to get into the details, and get a better interface actually.
Posted by jewellery | July 23, 2007 9:20 AM
I’m not against merger or merging of two great companies. But I really want to be cleared about the benefits or advantages this action will do on both parties. Will this benefit the consumers or Internet users as well?
Posted by oil paintings from photos | August 16, 2007 5:52 AM