Microsoft's Chance to Change the Game

For the most part, Microsoft has been relatively dead in the water for a few years.  Windows Vista came and failed. The Zune came and failed.  And do you know anyone with a Windows 7 phone?  Exactly. During that time Apple introduced iPods, iPhones and iPads, and changed the way we do, well, everything.  It hasn’t been all bad for Microsoft though, Windows 7 Operating System has been a success and I enjoy the Windows 7 experience more than Apple’s OS.  Xbox Kinect has been wildly successful and given them a competitive advantage in the video game industry, and they’ve made a lot of headway in the search business with Bing’s success.

So where do they go from here?  Microsoft announced last month they had made an expensive acquisition of Skype, for a shade under $9billion.  There have been rumors that their phone agreements with Nokia are going to turn into a full buy-out, but I don’t think that is the right move.  Microsoft needs to build out a platform that can be used on multiple devices (ie the Xbox, your phone, your tablet, and your computer), and it needs to involve social interaction.  This is why I think their next buyout should be Research in Motion, the company which makes Blackerry’s.

Its basically “game-over” for RIMM.  Apple and Google won.  Now its time to pick up the pieces.  Microsoft could take over their platform, very similarly to the HP acquisition of Palm.  Although Palm had great technology, there was a disconnect between hardware and software, and the devices couldn’t catch on.  This is a similar case of Blackberry.  They’ve succeeded with Blackberry Messenger and their seamless integration with enterprise emails, but they have lost the mainstream facebook/twitter/picture-messaging user.  Plus their still charging corporations to use their BES server!  Which is why large companies are pushing employees to use iPhones instead.  This is where Microsoft comes in.

Microsoft can take the most valuable user experience Blackberry has, Blackberry Messenger, and couple it with Skype.  You then have a gigantic and growing base of users, and an easy way for them to connect through emails, instant messages and video chatting.  It can become a streamlined on-the-go social network allowing users to interact seamlessly.  Apple has seen the demand for this type of technology, and has added iMessage to its new operating system.  The integration of Skype “messenger” into Bing and Xbox would be additional ways in which users can connect.  Google is already in the process of adding video calls and instant messages into its Chrome browser and Gmail clients.  However, there is still no multi-platform leader in the messaging business.  Microsoft has the ability to introduce that with Skype and Blackberry.

With the marketplace thirsty for a integrated cross-platform messaging service, Microsoft finally has a reason for someone to actually purchase a Windows 7 powered Blackberry.  Right now they really have no competitive advantage when it comes to mobile technology.  Having Skype fully integrated with their phones will allow another feature which I think is lacking in today’s phones: Wifi Phone calls.  I get the worst service in my apartment, but I have a phenomenal cable internet line streaming into my house.  With Skype integration, users could easily toggle their conversation into their Wifi signal when they know their Network’s call signal is weak.  Even further, the phone could know when it should switch into wifi-mode.  The iPhone won’t even allow picture-messages to be sent through wifi when network signals are weak.  This could be a great feature for Microsoft.

So what have we done to Microsoft in the 500 words of this post?  Well we’ve built a social network based on a network of almost 300 million existing users.  We’ve re-vamped Microsoft’s mobile technology, and given them a presence in the marketplace.  And potentially, we’ve changed the way users will connect.  I’d like to see a future where we utilize the wifi networks we’ve already filled our homes with, and can start to ween off the cellular companies.  They overcharge for everything and are incredibly arrogant.  Its going to take one of these tech companies with brass balls to decide that they can go directly to the customer, and not have to deal with the carriers.  I doubt Microsoft would ever sell these phones directly to customers and have them be used over straight wifi, but its a thought, or at least its a start.  With iMessage, Apple is giving it to the networks by saying you’ll no longer be charging for texting. Now its time for Microsoft to do the same with voice, and finally build a cross-platform messaging service our world has been waiting for.