Microsoft is “leading with online” – should you?

This year, at Microsoft’s World-Wide Partner Conference in Washington (WPC), used any moment to tell its partners that they now are leading with online. But what does this mean? And why the sudden change towards online? Should you adopt the same strategy – and why should you?

First of all – Microsoft have done some big mistakes before. Focus on their Internet Explorer product, made them loose half a century to play catch-up with Netscape. Windows Phone is another great example on a loosing strategy for Microsoft. Half a decade lost here too. So is Microsoft misleading the ecosystem? I doubt not – I believe Microsoft already lost 2-3 years of great momentum – they just got better to spot their strategy mistakes. Reality is that Microsoft’s Hosting partners have been preaching the Software + Services business model for nearly 12 years now. Since Microsoft Exchange 2000 – and a bit before – Software + Services has been a part of Microsoft, but now – truly now – customers are in fact telling Microsoft they don’t want to:

  • Update any application anymore. Dealing with updates and redeployments are often 40-60% of time spend in the internal IT departments, and over 40% of the external consultant fees.
  • Stay up to date, with latest features and functions.
  • Pay for what they consume, and use. Customers want to have an easy opt-in options, and a structured and predicted opt-out.
  • Outsourced management of their infrastructure and applications, moving focus for the internal IT department to become internal business advisors in IT usage. Continue reading