20 Jul 2009
0 CommentsHas Microsoft Morphed from “Hungry/Nimble” Startup to “Fat/Stupid” Behemoth?
Bunny: Don’t you think you’d better go? The tortoise has the lead.
Max Hare: Say, I’ve lots of time to play. My middle name is speed.
SOURCE: Tortoise and the Hare, Walt Disney/United Artists, 1935
While I typically leave reviews of even major new products to others, my personal experience in the much heralded Windows 7 Beta to launch process provides some interesting observations on the difference between large and small companhies in early adopter customer engagement.
Having bought an early Asus eeePC netbook almost 2 years ago and finding that early product both intriguing yet frustrating, I purchased the newly launched HP 2140 HD netbook when it launched in late June. This is a well engineering product that has clearly crossed the useability threshhold for uber mobility.
Like most netbooks, it comes standard with Windows XP Home. This was just fine because I, like the majority of Windows desktop users, wisely passed on the miasma that is also known as Windows Vista.
However, having heard some reports that the Windows 7 Beta was showing some promise and recognizing that running an operating system originally launched in 2003 wasn’t a viable long term strategy, I decided to upgrade to the Windows 7 Beta (now Release Candidate).
Overall, apart from the bugs inherent in any Beta,
- problems with Bluetooth headsets that worked flawlessly under XP,
- weird security messages when I renamed my user name to correct a typo,
the system has a clean modern design, seems to perform well and certainly is in no way like the Vista fiasco.
Sadly, Microsoft, I quickly learned, made a choice to not provide any upgrade path from XP to Windows 7. Yes, you heard right. In spite of the fact that the majority of users sagely gave Windows Vista the miss, Microsoft chose to provide a seamless upgrade path only for Vista users. While Microsoft perhaps feels that Windows XP is now an obsolete product, remember that most netbook companies are still shipping XP, so XP is truly a current system that people continue to buy. What did this mean to my early adopter experience with Windows 7?
- Microsoft documentation proposed a work around called Easy Transfer which really was just a file copy, to another machine or drive, but that process did nothing to smooth the upgrade transition.
- Unbelievably, all of my Windows XP applications, settings, configuration, etc. were completely wiped out by the Windows 7 install.
- As I mentioned above, things (such as my Bluetooth headset support) that worked before ceased to work properly.
- My Outlook Address Book can no longer be accessed, making email composition challenging, because somehow installing Windows 7 RC corrupted my Outlook profile/configuration.
- And the list goes on, but this should give you the flavour. What should have been 30 minutes to one hour procedure has turned into weeks of tweaking and general frustration.
So, as one who works with young and hungry startups, I look at this decision through a management decision making lens. Would a startup chose to cause such pain and grief to the majority of their installed base? Not a chance!
However, I have noticed that somehow, and inexorably, nimble startups eventually ossify into larger and more mature enterprises. And the decision making becomes more about risk and ROI and less about the customer. Is this what’s happening at Microsoft?
The history at Microsoft is interesting. Bill Gates, from the earliest days, was paranoid about being eclipsed by the greater resources of companies like IBM. Today, as the desktop operating system become more irrelevant, Microsoft’s paranoia is aimed at other firms like Google, which interesting announced their own OS for Netbooks last week. Perhaps the transition from Bill Gates to Steve Ballmer at the helm, there is less acute customer focus? In any case, no startup would ever even conceive of disenfranchising a customer base so completely.
What do market statistics show us about the size of Microsoft’s problem? A Decmber 2008 report from OneStat indicates that for Operating Systems, Windows Vista has managed a mere 21% compared to Windows XP having a powerful 72% share which is 3 to 4 times larger. The fact the XP is good enough for most customers is a real problem for Microsoft, representing among other things, significant loss of revenue (and relevance).
Is an individual user’s frustrating experience something Microsoft should be looking at? Absolutely. Consider CNET’s recent discussion of respected analyst Garnter’s assertion that Vista probably has put Microsoft into its first major set of layoffs ever: Gartner: Blame Vista for Microsoft Layoffs. This excerpt says it all:
“”Windows Vista didn’t do well. Based on our data, a lot of clients are skipping Windows Vista,” said Neil McDonald, an analyst at Gartner. Indeed, nearly every other major analyst firm found a similar lack of Vista adoption, with Forrester Research likening the (operating system) to the failed New Coke.”
Even a big and market leader like Coke learned from their mistakes. Will Microsoft return to its roots and see the light with Windows 7?
15 Aug 2009
0 CommentsGore Mutual Insurance Company Board Appointment
I am extremely pleased to share today’s announcement from Gore Mutual Insurance Company that I have been appointed to their Board of Directors. I was officially appointed at the July 28, 2009 Board meeting and initially, I will serve on the Audit, Pension and Conduct Review & Governance Committees.
Because people may see this diferent from other activities I’m engaged in, I thought I would provide some perspective on what this appointment means for me personally.
Founded in 1839, this venerable Waterloo Region financial services institution is Canada’s oldest insurance company. Such a long and magnificent heritage and time scale is obviously very different from that of the technology startup scene. That said, this company is an object lesson to all in the nature of innovation in a long term business, and that intrigued me. The Gore, as it is affectionately known by most, has survived and thrived, not by resting on its legacy, but through a constant process of change and innovation, to stay ahead of the many curve balls that time throws at any business.
And yet, as a regulated financial services company, through organizations like OSFI (Ontario of the Superintendent of Financial Institutions) and with a mission and obligation to prudently pool and manage risks for their members and clients, the company always walks a much finer line than startups in regards to balancing risk and innovation. That is something that both intrigued me and impressed me at how well this company has navigated that highly tuned path, particularly in recent years. Having reviewed this history as part of my due diligence, I’m absolutely convinced that without innovation and change, the Gore would never have survived on it’s long legacy alone, and that’s a great testimonial when a company can manage that for 170 years.
A second consideration for me is the opportunity to learn more about the whole world of financial insitutions. In my career, I’ve sold enterprise software to some of the largest such companies in the world (e.g. HSBC, UBS, Nations Bank). Success with these customers entailed a detailed understanding of how to make their organizations more effective through better IT productivity and quality. The chance to drill deeper in a highly respected local firm like The Gore and to help shape their forward strategy, was not to be missed. I was warned, and certainly recognize, that the learning curve will be steep, but I’m already relishing that challenge, having just internalized 5 thick binders of briefing materials and background documentation.
Over the years, first as a CEO and more recently as a hands-on investor, I’ve internalized a very important truth — the people you work with (or invest in, or sit on a board with) must be the most important selection factor. In my due diligence, I was absolutely impressed with management. The CEO, Kevin McNeil, has assembled an extremely impressive team that has moved the Gore forward a quantum leap over the last few years. Likewise, the Board members are a diverse, smart and engaged team that complements this excellence in management. It is to be noted that they come from many industries and all had the same learning curve I did, including one from the Life Insurance industry which is a different business from general insurance. Furthermore, each and every employee I have talked to so far seems passionate, committed, yet not afraid to make the difficult suggestions to help shape the company’s execution. This is a company of surprisingly innovative people and in that respect, it isn’t really that different from the culture in a startup.
Finally, I note that 2009 is an interesting time to be joining a financial services company Board. While Property and Casualty insurers haven’t seen the exposure to the excesses of the credit crunch (ie. CDOs and such derivatives), it is clear that the public’s need for transparent and well executed corporate governance has never been more heartfelt. As I mentioned, the Gore is easily one of the best governed companies I’ve encountered.
Currently, I am appointed to serve on the Audit, Pension and Conduct Review & Governance Committees. Particularly in the case of the Audit Committee, my deep background in IT systems will help to balance the risk review and management activities in that important area.
I am happy to share more with people about this appointment over the coming weeks.