Anyway, this was not the original intent of this post, so I’ll leave it here.

As a Microsoft employee, I have always acknowledged some products were mediocre (some are great, but some are mediocre).

That’s why, with Microsoft announcing all first generation Zune would be updated for free, I couldn’t feel prouder to realize how much the company had increased its proximity with consumers. A typical Microsoft update 5 years ago would have cost something like a hundred dollars. Today, it’s free for consumers to trust the product, the brand, and purchase the current Zune without having to worry about the next version – that will be made downloadable for free to all Zune fans.

My 2 cents: Zune will have outmarketed iPod in a decade. http://techiteasy.org/2007/02/24/mahatma-gandi-on-microsofts-zune/

What do I think of the free upgrade on Zune? For one, that Microsoft is in trouble. The way the Zune works, with its “squirts,” is that it needs a lot of people to have them. Upgrading old machines for free is a sign that they are not expecting to sell many new machines quickly.

And it is a sign of a bad business-model. When Microsoft began the Xbox-model, part of it was based on the philosophy of Neal Stephenson’s Metaverse, where everything is connected. That works very well for the Xbox, together with a PC-platform. It does not work so well for mobile music-players, especially with big media breathing on the back of file-sharing business models. In all seriousness, I think Micrsoft opened a can of worms with the Zune,

As it stands it’s a second-class product, not aligned with Microsofts strength (which is not in manufacturing) and it will take some years before it will be ready to compete or very possible be abandoned. If we are speaking of growing mind-share, the Zune is a terrible example.

On consumer electronics: what do you think of all old Zunes being automatically upgraded for free when Microsoft launched its last Zune?

On B2B: you’re right; but I wanted to emphasize the fact that VCs are probably wrong when they claim enterprise software is dead.

Advertising: think Google compete.

@Kari: why ’still’?

New post at techiteasy.org

Some very good questions, and I hope Chris drops in to answer them.

With Microsoft’s experience in building platforms, its excess cash, and the legal environment favouring non-monopolists, I imagine the best route forward for Microsoft is towards becoming a venture capitalist for start-ups using MSFT-technology, and being very careful in the acquisition-choices it makes.

I would love to see them enter the areas you mention, even more than they already have, but I also think that the home-entertainment market is a huge focus point, simply to improve MSFT’s brand in the eyes of consumers. The Xbox and gaming in general is probably the best Microsoft has going for it, in terms of consumer-PR, which, in the long-term (generations), will affect the adoption-rate for other types of Microsoft-products, both at home and in business.

B2B, which is what you’re talking about, is also a huge market, but exactly the one which Microsoft must probably thread more carefully, for anti-trust reasons. This is just my interpretation of course and I’m happy to hear how/whether I’m wrong.

Btw. I know very little about the advertising business and the thinking behind that. I’d love to hear/read more about Microsoft’s strategy in this direction.