Archive for the ‘Apple’ Category
There have been esimates that when Microsoft releases Office for the iPad, likely later this month, it could end up bringing in billions of additional dollars to Microsoft’s coffers. Is that hype and overkill, it will it really add that much to Microsoft’s bottom line?
It’s widely expected that on March 27, Microsoft CEO Satya Nadella will announce Office for the iPad. If that’s true, that will finally put an end to the “will-they-won’t-they” speculation that has swirled around the fate of the suite for years.
How much additional revenue will Microsoft bring in when it releases the suite? Morgan Stanley analyst Adam Holt says that Microsoft could get $2.5 billion in new Office revenue by releasing Office for the iPad. And Gerry Purdy, principal of MobileTrax, offers even bigger numbers. He believe that Microsoft could gain an additional $1.25 billion in revenue in the first year Microsoft releases Office for the iPad and Android tablets, and $6 billion in annual revenue by 2017.
I think both numbers are wildly inflated. Take a look at Purdy’s reasoning,which is based on Microsoft releasing Office for both Android and the iPad.
He assumes that 25% of iOS and Android tablet users would buy Office and that Microsoft would net $50 per copy sold. He believes that Microsoft will sell Office for the tablets as standalones, rather than include it as part of a subscription to Office 365.
Purdy is likely wrong on both counts. It’s hard to imagine a quarter of all iPad and tablet users buying Office, especially because there are so many free or very low-cost alternatives, including the free Google Docs and Google’s Quickoffice. I’m sure that the percentage of people willing to pay for Office is far, far under 25 percent.
In addition, it’s quite likely that Office will be sold as part of an Office 365 subscription, not as a standalone piece of software. Microsoft has made clear that subscription-based Office is the future, and standalone Office is the past. As just one piece of evidence, Microsoft recently announced a cheaper Office 365 subscription, called Office 365 Personal, that appears to be aimed at those with iPads. It will cost $6.99 a month, or $69.99 for a year for one PC or Mac and one tablet compared to $9.99 per month or $99.99 per year for five devices for the normal subscription version of Office. That means that only some part of additional Office revenue shoud be attributed to the iPad, not all of it.
But that doesn’t really matter. Releasing Office for the iPad is not only about additional revenue. It’s also being done to protect existing revenue and market share. Microsoft needs to fend off Google Docs, which is free and works on all platforms. Releasing Office for the iPad is an important way to do that.
That will be even more important in future years. Rumors are that a 12-inch iPad may eventually come down the pike. If true, that would put it at the screen size of a laptop, and make it more likely that iPad owners will want a productivity suite. If Microsoft wants to keep its hold on the office productivity market, Office needs to be available for the iPad, and at some point, Android tablets as well.
Posted October 28, 2013on:
After Apple slammed Microsoft for gouging customers and designing tablets that nobody wants, Microsoft has fired back, saying that you can’t get real work done with iPads or its anemic iWorks productivity suite, and that iPads are little more than toys. Who’s right in the increasingly nasty war of words?
At Apple’s iPad launch, CEO Tim Cook and others zinged Microsoft for charging $99 a year for Office, charging $199 for people to upgrade to Windows 8, and for having a confused tablet strategy. CEO Tim Cook said about Microsoft:
“They’re confused. They chased after netbooks. Now they’re trying to make PCs into tablets and tablets into PCs. Who knows what they’ll do next? I can’t answer that question, but I can tell you that we’re focused.”
Microsoft is striking back, and striking back hard, esssentially claiming that you can’t get serious work done on an iPad, and that the only reason Apple is now giving away its iWorks suite is that no one wants to buy it. On the Official Microsoft Blog, Frank Shaw, Corporate Vice President of Communications at Microsoft noted the criticisms that Apple had aimed at Microsoft, and shot back:
“Seems like the RDF (Reality Distortion Field) typically generated by an Apple event has extended beyond Cupertino.”
And then he took off the kid gloves, criticizing Apple’s new iPads as overpriced, iWork as a pointless piece of software, and saying they don’t stack up against Surface tablets when it comes to productivity. He wrote:
“Surface and Surface 2 both include Office, the world’s most popular, most powerful productivity software for free and are priced below both the iPad 2 and iPad Air respectively. Making Apple’s decision to build the price of their less popular and less powerful iWork into their tablets not a very big (or very good) deal.”
He said iPads were not suitable for getting real work done, and that the reason Apple is giving away iWork for free is that no one wants them, as shown by their $10 price for iOS, or $20 for Mac OS X. He wrote:
“…it’s not surprising that we see other folks now talking about how much ‘work’ you can get done on their devices. Adding watered down productivity apps. Bolting on aftermarket input devices. All in an effort to convince people that their entertainment devices are really work machines.
“In that spirit, Apple announced yesterday that they were dropping their fees on their ‘iWork’ suite of apps. Now, since iWork has never gotten much traction, and was already priced like an afterthought, it’s hardly that surprising or significant a move. And it doesn’t change the fact that it’s much harder to get work done on a device that lacks precision input and a desktop for true side-by-side multitasking.”
And he concluded that when it comes to getting real work done, Apple is far behind Microsoft:
“So, when I see Apple drop the price of their struggling, lightweight productivity apps, I don’t see a shot across our bow, I see an attempt to play catch up.”
Who’s right here? When it comes to the productivity argument, Microsoft is. There’s absolutely no doubt that a Surface Pro 2 tablet equipped with a Touch Type 2 keyboard and a free version of Office is a far more effective tool for getting serious work done than an iPad with iWork. In essence, the Surface Pro with the Touch Type 2 keyboard is an ultrabook. An iPad with iWork is…well, an iPad with iWork. In other words, fine for light work. Not well-suited for serious work.
But when it comes to the tablet market and to sales, Apple is right. For now, tablet buyers don’t care about doing heavy-duty work on them. Checking email, browsing the Web, running apps, and light memo writing, are all well-suited for tablets. And that’s all many people need to do for their work.
So in the tablet battle, Microsoft’s Surface may be on top for productivity. But when it comes to the bottom line and sales, Apple is still cleaning up.
The Web as we know it have been born and matured on computers, but as it turns out now, computers no longer have dominance in it. According to a recent report by analyst Mary Meeker, mobile devices running iOS and Android now account for 45 percent of browsing, compared to just 35 percent for Windows machines. Moreover, Android and iOS have essentially achieved their share in just five years and their share is getting tremendously larger.
According to some forecasts their worldwide number of mobile devices users should overtake the worldwide number of PC users next year. If forecasts come true, this shift will not only continue, but accelerate. Based on data from Morgan Stanley, Meeker estimates roughly 2.9 billion people around the world will be using smartphones and tablets by 2015.
What does it mean now that more people are accessing the Web through tablets and smartphones rather than laptops and desktops? And is it really a big deal? Anyway, Internet is intended to be accessed from anywhere and thus from any device. Well, it is quite a change at least in terms most people consider the Web and how it gradually adapts to be used on mobile devices.
As mobile devices take over, the use of today’s desktop browsers like Internet Explorer, Chrome, Firefox, and Safari will decline. Mobile browsers are already very capable and will increasingly adopt HTML5 and leading-edge Web technologies. As mobile devices naturally have less screen area, the sites need to function more like mobile apps and less like collections of links. So the sites are likely to look like apps.
Apps may rule
Native apps for smartphones and tablets almost always surpass websites designed for mobile devices because they can tap into devices’ native capabilities for a more responsive and seamless experience. This is most likely to change in the nearest future – most experts agree HTML5 is eventually the way of the future. This is already the status quo in social gaming: for example Angry Birds and Words with Friends. Some services won’t be available at all to traditional PCs — they won’t be worth developers’ time.
Less information at once
Web sites and publishers will no longer be able to display everything new for users and hoping something will catch the user’s eye. Smaller screens and lower information density means sites will need to adjust to user preferences and profiles to customize the information they present. Increasingly, the Internet will become unusable unless sites believe they know who you are. Some services will handle these tasks themselves, but the most likely contenders for supplying digital identity credentials are Facebook, Google, Amazon, Apple, Twitter, and mobile carriers.
Sharing by default
In a mobile-focused Internet, anonymity becomes rare. Virtually every mobile device can be definitively associated with a single person (or small group of people). Defaults to share information and experiences with social circles and followers will be increasingly common, along with increasing reliance on disclosure of personal information (like location, status, and activities, and social connections) to drive key functionality. As the Internet re-orients around mobile, opting out of sharing will increasingly mean opting out of the Internet.
Emphasis on destination
Internet-based sites and services will increasingly function as a combination of content and functionality reluctant to link out to other sites or drive traffic (and potential advertising revenue) elsewhere. These have long been factors in many sites’ designs but mobile devices amplify these considerations by making traditional Web navigation awkward and difficult. Still URLs are not going to die – people will still send links to their friends and Web search will remain most users primary means of finding information online.
Going light weight
As people rely on mobile, cloud, and broadband services, the necessity to do things like commute, store large volumes of records or media, or patronize physical businesses will decline. Businesses won’t need to save years of invoices, statements, and paperwork in file boxes and storage facilities – cloud storage comes as their rescue. Banks will become purely virtual institutions consumers deal with online via their phones. Distance learning and collaborative tools will let students take their coursework with them anywhere — and eliminate the need to worry about reselling enormous textbooks.
Going mobile is an obvious trend today. Experts envisage that nearly every service, business, and person who wants to use the Internet will be thinking mobile first and PC second, if they think about PCs at all. Do you agree? And what other related changes can you imagine?
Many thanks for sharing your thoughts :)