What Apple has already Achieved and What Microsoft and Google are Trying!!!

Over the last five years or so, a lot has happened in the IT industry that has disrupted the very way we use hardware and software, and to an extent it has given us alternate ways to consume information. Every year, analyst firms and IT service providers look for technologies or trends that will drive the next wave of change (or disruption). This year too, things are no different–with some overlapping trends in the numerous predictions and insights that are coming our way.

Overall, two areas stand out in having a profound impact on the way technology will be strategized and applied to consumers and the enterprise. First comes Mobility, and then comes the Disruptive Cloud. The interesting point to note is that, both these forces are mutually reinforcing the other as they evolve. All the leading IT solution and service providers today, have increased their focus on the mobility segment– which includes the mobile, notebook and everything in between. The Cloud, on the other hand, has enabled the realization of the unthinkable–to enable processing of data on devices, no matter what operating system or hardware it is running on. So anybody would agree with me when I say that the Cloud now controls the digital lives of people and extends anywhere from computing to communicating.

If the recent product and service launches are to be analyzed, the signals are clear that the primary goal of IT solution providers is to create a powerful ecosystem from both the developer and consumer perspectives. The release of the windows 8 is a perfect example in this regard,  as it is in line with the strategy being adopted by the big players in the IT domain. In a nutshell, Windows 8 is the older version in a new bottle with some features taken to the visual back-end and up come those Apps! Apps that have evolved with new usability features and behavior. Though they require a multichannel integration and interaction, the end product is so advanced that the experience can be customized to where a person is located and what they are doing. This is the same strategy being followed by Google, though not in very obvious terms, with Apps being designed for mobile and bigger devices. However, even though both the strategies might be the same in a way, the business sense is entirely different. Both Microsoft and Google are at the two ends of the OS dominance. One rules the desktop space while the other is at the mobile and both want more. For Microsoft it is about leveraging their desktop OS superiority to the not so successful mobile space while for Google there seems to be a simpler challenge – develop more for mobile and then leverage the same for larger devices. But hey, why are we not taking Apple into consideration here? Because, looks like they ‘bit the fruit’ first and did not feel anything! This strategy worked out perfectly for Apple with their scalable OS that works great on all devices. Though mobile and cloud came later, they were ready to embrace the change and leverage it to their strengths, even though they metaphorically, ‘arrived late to the party’! If you watched the WWDC2013 keynote, all this would make perfect sense as Apple lays out the plan for the next 10 years.

The fight on the other hand for Microsoft and Google is not about reaching first or about dominance but it is about who reaches the other end first. And what will help them achieve this – mobility and cloud.

Either way, ‘biting the fruit like Apple’ second causes lesser pain, doesn’t it?

Microsoft’s Acquisition of Skype – Analysis

Microsoft’s acquisition of Skype has been one of the biggest deals of the tech world. Though there were rumors that Google and Facebook were the front runners for scooping up Skype, the end was dramatic with Microsoft acquiring the company. Many discussions and blogs reveal a rather negative view of the acquisition. Concerns are being raised regarding the support Skype will have on other operating system platforms like Linux, MAC and Android. These arguments are fairly substantial to a great extend even though Microsoft offers Office for Mac. At the same time Skype for MAC is a distant reality considering the overall use of the solution compared to an office application.

Overall the news is huge considering the amount that Microsoft paid for the acquisition. The question simply is – “Is it worth $8.5 billion”. My take on it is fairly straight forward – “No”. But at the same time there is no other company who “desperately” needed Skype than Microsoft. So in a way Skype has met the right partner – if one agrees that we partner with people who love us than how much we love them.

Skype has been a revolution for real time voice and video communication but it’s not yet profitable. The company lost $6.9 million overall despite generating revenue of $860 million in FY2010 and an operating profit of $264 million. The debt hence carried by Skype is around $686 million. The good news for Microsoft is that Tony Bates will take on the title of president of the Microsoft Skype Division and report directly to Ballmer. Tony Bates who was the Chief Executive Officer of Skype responsible for company’s direction and strategy. Prior to joining Skype, Tony was Senior Vice President and General Manager of Cisco’s Enterprise, Commercial and Small Business Group. Tony Bates would be a great asset for Microsoft considering the recent development of Cloud Computing in Enterprise Sector.

Microsoft is expected to integrate Skype with mainly the mobile communication, social networking platform, SMB services and the cloud services. Also as mentioned in the press release, the solution will also be integrated with Microsoft Lync, Outlook, Xbox Live, Hotmail and Messenger services. Though Microsoft Lync has been able to provide collaborative services to enterprises to a great extent, the integration of Skype will do wonders to the solution in future. Overall, whatever may be the turn of events post the acquisition of Skype by Microsoft, it’s quite obvious that future hold better for Microsoft than Skype.

Microsoft Acquires Skype for $8.5 Billion

Microsoft has acquired Skype for $8.5 Billion in a all cash deal as confirmed by the Wall Street Journal. With Facebook and Google aggressively bidding for acquiring Skype, the market was expecting a buy out from either of these two companies. Microsoft was a late entrant into the market but has finally walked away with the prize. For Microsoft, this will be a major boost for its voice and video communication capabilities. Also, the acquisition will  enable the company to leverage its enterprise collaboration market which it is loosing to companies like Google and Cisco. Further, this deal will enable Microsoft to utilize the capabilities on its Windows Phone 7 (Mobile OS) which it needs for competing with major vendors like Apple and Google as well as to gain more share in the emerging mobile communication market.