This time however, COO Kevin Turner said at the Worldwide Partner Conference that his company is getting much more serious with its efforts. Microsoft will be opening 75 new outletsthroughout the U.S in the next two to three years.

“It’s helping us to transition from thinking about our customers to thinking like our customers. And giving us that direct customer feedback is what we’re learning and getting from our stores,” said Turner.

Microsoft is also pushing Windows Phone7, and in more ways than one. Its partnership with Nokia will help it to, among other things, offering cheaper smartphones than the competition. The Finnish phone-maker, after all, achieves greater cost efficiency than most manufacturers, which is the reason it has gained a tremendous amount of market share in developing nations. This, along with the ever-decreasing smartphone prices, is what makes Microsoft’s Andrew Lees think that a WP7 could sell as cheap as $100 to $150 next year.

Another cloud product Microsoft is putting a lot of effort into is Office 365.  O365 is the less pricey SaaS version of the popular productivity software, and it’s already gaining partners and support.  Bloomberg announced integration of its Bloomberg Vault IT compliance offering with Office 365, while Logitech optimized its enterprise webcams and headsets for the service.

O365 has a lot of potential, but it’s not the only reason Microsoft managed to attracted so many partners. The company is investing a lot in this field, and will do the same in 2012. Microsoft channel chief Jon Roskill said at the Worldwide Partner Conference that his company will spend $5.8 billion in this field during fiscal year 2012. The software maker has another topic to tackle, though – being green. Its datacenters’ diesel-powered backup generators have been raising concerns in Quincy, Washington.  Hopefully some of that earmarked cash will go towards green tech, a growing concern for data centers across the world.

Post originally written by Maria Deutscher for SiliconAngle and reposted here with permission

Price slashing and retail are all part of Microsoft’s Cloud strategy is a post from: winextra
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According to Matt Rosoff, author of the post, CEO Steve Ballmer and COO Kevin Turner are all hot to open even more Microsoft stores but others in the company are worried about the cost and recommending that they either slow down or stop altogether.

In the fallout of that post there has been some really good responses, from both sides of the argument, from my fellow Microsoft watchers with valid points pro and con about Microsoft’s retail aspirations.

Now to be clear, both Paul and I here at WinExtra believe that Microsoft should be opening these stores and so that opinion will of course color my thoughts on what has been said by others.

Over at the Technologizer blog both Ed Oswald and Harry McCracken had thoughtful posts with Oswald taking the pro side and McCracken on the other side of the fence.

Ed Oswald:

Microsoft is in somewhat of a quandary though when it comes to retail. Unlike Apple, the products sold in the Redmond company stores are readily available through many other stores. This gives consumers little reason to purchase something from the Microsoft Store above any other.

That shouldn’t hold the company back, though. Yes, these retail locations are expensive to build — Apple’s were too — but those retail stores are probably the single biggest driver to Apple’s overall success.

Harry McCracken:

For one of the world’s largest companies, Apple makes shockingly few products–and they all work together, look alike, and appeal to a certain kind of person. They’re a matched set, and it makes sense for them all to be on display in one place. Microsoft, on the other hand, makes all kinds of stuff aimed at all kinds of people; there’s nothing tying together Xbox, a Microsoft mouse, and SQL Server. Yes, I know that Microsoft Stores focus on consumer products, but even then, “Microsoft” is a corporation, not a lifestyle or an aspiration or a rallying cry. (That helps to explain why Microsoft Stores look so much like Apple Stores that they’ve been roundly mocked for their copycatting.) When I first heard of Microsoft Stores, I said that the notion of a Microsoft Store feels like that of a Procter and Gamble Store; I still feel that way.

In both their post Oswald and McCracken give five points to support their arguments but I have a few points where I disagree with Harry’s points against opening more stores.

The three screens and a cloud world

One of the more common arguments against the stores, Harry included, is that Microsoft has too diverse a product line for it to be able to properly support anything in a retail environment. I can understand where this argument is coming from but it is that diversity that could actually help Microsoft in a consumer retail market.

After all, one of the biggest factors facing consumers when it comes to using Microsoft products is – how do I create a unified experience in my home using their products? For example what is the best way to create a small home network and connect all my stuff to it? How can I create a top of the line media experience in my home using Microsoft products along with other hardware?

Richard Edmonds at WPCentral had a good idea in this regard when he wrote

By having demonstrations as to how their products can be used, in the house more than anywhere. A lounge area featuring a HD TV, Xbox 360 (with Kinect), WHS (home server), Windows 7, Zune etc. and allow potential customers use the products as they would at home.

This idea is going to be even more important as Microsoft continues its move into the consumer cloud computing world, especially when it comes to their connected home and mobile lifestyle. As Rush24 says at WMPoweruser:

These stores should also be geared to showing the Microsoft’s three screens and a cloud vision rather than selling computers or gadgets per se. Show the customers the connected home, with a Windows Home Server appliance at the heart system serving media files and providing backup for all the family’s computers. An Xbox and a Windows Media Center HTPC should also be part of the set up. Basically, borrow the concept from real estate staging techniques. Help the customer envision how all the various products act as one instead of seeing them as separate disconnected products.

The repair of a reputation

Another argument oft mentioned when it comes to Microsoft having its own stores is the fact that Windows equipped computers are available at just about every computer store you go to and that by opening stores with their own branded computers Microsoft could end up pissing off its OEM partners.

That is a valid point but I would also suggest that it is those very major computer chain store OEMs that have help to malign the reputation of Microsoft and the Windows platform. After all just how many of those ‘big box’ stores that cater to the average consumer sell good to high quality machines?

Stores like Best Buy and Future Shop exist because they sell a crap load of machines with very slim profit margins and in order to be competitive the large majority of those machines are made up of sub-par components or older version parts. It is because of that sub-par machine, coupled with massive amounts of crapware that is added in by both the machine OEMs and in some cases the chain store, that average users have a lousy computer experience.

The problem here is that in the consumers mind these are Microsoft machines and it is their fault that the customer is feeling ripped off; and it is this attitude that Microsoft needs to desperately change, especially as it heads into the huge consumer market of phones and tablets. This is something that Ed Oswald points to in his post:

Microsoft’s always suffered from an image problem,. It’s seen as a big bad company, always a step behind, or responsible for that latest security flaw. With a network of stores, the company would have a direct connection to its consumers and would be able to use this to convey the public image it wants, rather than one driven by the headlines.

Microsoft has already tried to fix this problem by taking more control of the Windows Phone 7 hardware with strict guidelines and regardless of the mess made by the carriers over the updating process Windows Phone 7 has benefited from this stronger stance by Microsoft.

I would suggest that in the case of the Microsoft and its retail store that it should find a good solid hardware manufacturer and come out with a simple, yet with a high set of hardware specs ala the Windows Phone 7, line of desktop and laptop computers that would be available only in their stores. This could go a long way towards repairing a damaged image and possibly raise the bar for all manufacturers.

The Ballmer question

The one thing that has puzzled me throughout this discussion is Steve Ballmer.

On more than one occasion we have seen Ballmer referred to as an ultimate salesman and how his background in marketing was totally opposite of that of Bill Gates; but at the very time when that salesmanship could be doing something good for the company he can’t even sell an idea to the Microsoft boardroom.

This makes me question even more if the time hasn’t come for Ballmer to be replaced. If the Microsoft board doesn’t have confidence in the very area that Ballmer is suppose to be the strongest -sales – then how can they have confidence in him leading the company at all?

Back to the beginning

Like I said at the start, there are good points on both sides of this argument but I think that the pro side should win out the day. Granted it will take a lot of boardroom backbone to weather the cost of this but as Rush24 points out Microsoft has never been afraid to spend the money if they believe in an idea:

I am amazed that one of the concerns is cost and overall profitability. This is a company that makes billions of dollars in profit every quarter and if we are to go by the Xbox example, they were willing to lose billions of dollars upfront in order to gain a long term goal of building a viable gaming and entertainment device. I think stores are a wise investment in that consumers can get to experience Microsoft first hand, and get informed answers and solutions to their questions from knowledgeable representatives, who are hopefully better trained than ones found at big box stores like Best Buy.

I would point out that this willingness to spend also applies to Bing and windows Phone 7 and while their individual successes remain to be seen, the retail stores could go a long way to helping Microsoft figure out its way in the consumer marketplace.

The Microsoft retail quandary is a post from: winextra
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• Xbox 360 April 2011 Beta Dashboard Changes [Video] – WinExtra
• Microsoft country manager detained by Libyan authorities - WinRumors
• Gartner agrees: Windows Phone will beat iPhone by 2015 - Paul Thurrott
• Microsoft Executives In A Heated Battle Over Opening More Retail Stores – Business Insider
• Windows 8 Secrets: Aero Auto-Colorization – Supersite for Windows
• State passes anti-piracy law to help Microsoft – Seattle Times
• Windows Phone 7 ‘NoDo update for all’ pulled from website – ZDnet Hardware 2.0
• Why Windows could seriously injure Microsoft’s cloud strategy – Computerworld

Daily Brief – Windows 8 tablets suck. Wait. WHA..? is a post from: winextra
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“Quiz! How do you intert an image into Microsoft Word 2011!” shouts a shrilled, and over-zealous voice.

I was there, prompt and early for a genius bar appointment at the Apple Store to repair a Mac on the fritz. It just so happens that this particular Apple Store I was visiting is in the much over-hyped Mall of America, also home to one of the few Microsoft store’s, which just so happens to reside right across the hall from the Apple Store.

Coincidence? For surely not. Interesting? Of course.

After my extended visit in the Apple Store, and a candid conversation with the Genius bar employee about the iPhone/Android/WP7 smartphone wars, I stuffed my Mac into my cheap tattered bag with stares and headed across the hall.

Upon entering, I must admit, I was a little more than impressed. Reminiscent of the Apple Store, glass pane doors greeted me with a Microsoft employee at the side jumping at the chance to help me. With a respectful declination, met with an over-ecstatic, “let me know if I can help you with anything!” Colored green and blue walls surrounded me, making the Apple Store across the hall look like a dungeon of gray.

After a quick look around, I headed straight for the much discussed Microsoft Surface tables. On my way to the Surface, I couldn’t help but notice that a screen wrapped around 3/4 of the wall of the store was constantly advertising nearly every Microsoft product known to man. I caught myself staring at the neat animations and plethora of products advertised, thankfully realizing that I wasn’t the only person staring mind-numbingly at the screens. A positive thing for my sanity, I reassured myself.

After waiting through hoards of little kids smacking upon the Surface, completely ignorant of the innovative, and expensive, product they were banging on, I had my chance. Smudges and all, I began to play with the Surface, and while I expected greatness, I received only lackluster entertainment. The Surface demo’s were weak, the touch table battered by the many people before me, and lacked the finesse seen in videos a little over a year ago.

“How many of you have used Microsoft OneNote!” shouts the same shrill and overly excited voice as earlier. Four little hands out of thirty shot up in the air. “Not many of you I see, how many of you want to learn what Microsoft OneNote is all about!” Then three Microsoft employees from the floor shouted, “I do! I do!”

To which I promptly responded with a W.T.F.

It turns out that the Microsoft Store will hold events at their store to educate people about their products, and a room full of obnoxious ten-year olds were the clientel of the day. It makes sense, after all, indoctrinate them now so you guarantee there money later, but it did not get rid of the need to smack some of the annoying ones that were banging on 1,000+ dollar signature laptops upside the head.

Thankfully, the event was quickly over, and the employees returned to a normal state of typical retail expected excitement once the children scattered around the store. I then walked up to an employee with confidence and poise, and asked a question that most retailers hate, “May I take some pictures of your store with my iPhone 4?”

My question was met with an odd look, and a slight bit of a smile as he made the ironic connection of me taking pictures of a Microsoft Store with an iPhone. With hesitation, he asked why, of which I responded with so much authority and attitude I shocked myself.

“I am a writer for a Microsoft blog called WinExtra, and I am doing a piece on the Microsoft Store.”

Immediately I was told yes with respect and what I could only take as a slight hint of fear. It turns out making yourself look important does work, and with odd stares from customers/employees, I ventured around the store with my most snarky attitude, whipped out my iPhone, and snapped away. I know karma will bite me in the ass for this one day, but for the moment, it was worth it.

I took pictures of the most interesting looking Microsoft products, discovering that it was hard to not take a picture of something with an XBOX and Kinect hooked up to it.  There was even a dedicated section for the Zune, which disappointed me slightly, due to the fact that there was no dedicated section to Microsoft’s line of new Windows Phone 7′s. When I asked about this, none of the employees would give me a straight answer as to why this was. I concluded that it was probably because of spacing issues, and the fact that Microsoft is very new to retail. Let’s hope that it is not seen as a subliminal sign that Microsoft sees WP7 as a non-player.

Other than that, the Microsoft Store in Mall of America was fairly typical of any other retail outlet that sold computers, with a bit more polish, and employees who seemingly were not beaten down by the retail world as I sometimes am. Having a few conversations with the employees demonstrated that they were knowledgable, and many of them showed a true passion for Microsoft products. If most Microsoft Stores are in the same way with such wonderful (and overly ecstatic) employees, I hope that more stores continually open, because all I see from this are benefits for Microsoft.

All in all, it was a fun experience, and a great showcasing of the best Microsoft has to offer. If you do get a chance to visit one, even as a die-hard Apple fan, you should. Even Apple could learn to take a few notes from their competitor directly across the hall! Now I just hope Google opens a store in Mall of America, that would make my little world complete.

Note: One other fun thing that caught my eye is that the Microsoft Store does not sell Office for Mac, which I find hard to believe is nothing more than an oversight.

My Experience at The Microsoft Store [pics] is a post from: winextra
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The trademark is registered to cover a whole slew of goods and services including the following

• retail store services
• online retail services
• computers
• computer hardware
• software
• computer games
• computer peripherals
• portable music players
• personal digital assistants
• cell phones
• video game consoles
• webcams
• books
• clothing
• other miscellaneous and novelty goods

Well I think pretty well covers the gamut eh.

That Microsoft Store – well it apparently has a logo is a post from: winextra
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