Monday, April 27, 2009

Nothing lasts forever

"In addition to slumping PC sales, Microsoft faces a challenge from netbooks, the inexpensive laptop computers that are the only segment of the PC business enjoying growth. Microsoft hasn't been able to charge as much for the versions of Windows that are generally bundled with netbooks as it can for software included with other types of PCs."

"Microsoft reported a 32% revenue decline". They still do well, I presume.
Nevertheless this crisis has nothing to do with economics and a lot to do with alternative PCs which of course do not need Microsoft.
It is the slow beginning of the end.
Which didn’t come from a competitor ( being them smart enough to prevent)but from the market.
This is the proof that no matter how (forced) faithful your customers are nothing lasts forever in a world were everything has a beginning and, of course, an end.

Google is still blooming and that is due, on one side, to the fact that they follow and anticipate market’s trends and, on the other, that they have a different business model regarding revenues.
The customers pays in a hidden (and much less painful) way.
The customer pays consuming what he is brought to consume, in this way with a feeling of freedom of choice.

It is hard to compete with a giant that came in the right moment and offers services for free.
You cannot compete with quality and you cannot compete with price.
And you can use ANY hardware to access Google’s services.
Everywhere, in every way and free.
This really looks like a winning combination...
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