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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.

Lina Deveikyte Lina Deveikyte
Lina.Deveikyte@altabel.com 
Skype ID: lina_deveikyte
Marketing Manager (LI page)
Altabel Group – Professional Software Development

Despite the fact that Sweden has not always been a welfare state, now it is quite a stable and prosperous country with a good standard of living, a country, which is constantly developing. Let’s see how this development influences IT market, for example.

 Sweden is making large annual investments in education and research and it is well-known for  its  good  education  level.  Development  has also come into information  and  communications  technology,  where  Sweden  is  one  of  the leading  countries  in  the  world.   However,  the current  problem  in  labor  market  is  that  there  is  not  enough  workforce in service companies, information technology, school system and health care sectors. Despite high technology level, Swedish people love their nature and concern for nature is playing a big role in future decisions. That is why Sweden is also putting a lot of effort to improve the environmental technology, which will be one of the most important industries in the future.

  • Swedish IT sector

is  strongly  bound  to the  development  of  society.  Sweden  has   many  successful  companies  in  IT and  telecommunication  sector  and  the  companies  have  a  great  capacity  of innovation. However from 34 000 of companies in Swedish ICT sector are micro enterprises  with  under  100  000€  turnover. 

IT sector  can be divided into four sub-sectors: Software and IT services,  Tele-and  data  communications,  manufacture  of  hardware  and  retail and services of computer . IT sector in Sweden is mostly dominated by the software market. Most of them have specialized in systems  software  for  communications,  business  systems  and  applications software for telecommunications.

Software products and IT services earn 32% of the turnover in IT-sector. The growth in the software products and IT services has been  very  strong.  The  turnover  has  increased  32.5%  between  the  year  2005 and 2009. The second in the IT-sector is Telecom and datacom services with 27.3%, manufacture of hardware comes next with 24.5% and the fourth largest is retail and servicing the hardware.

Swedish IT-  sector employs about 3.9% of the total Swedish work force. Despite  the economic recession, Swedish IT sector has stayed healthy. The main reason of IT sectors welfare is that the companies in Sweden believe that the  IT-services  and  IT-products  are  essential  for  survival  in  the  future.  IT solutions are the key factor when it comes to make the business more effective and  environmentally  friendly.  That  is  why  the  companies  are  putting  effort  to develop  the  IT  solutions. Especially environmentally friendly  solutions  are  the focus in the future in Sweden. Almost every  company  uses  computers (97%) and 96% of them have an access to Internet. Internet has increased its significance in  doing  business.

  • Mobile services

Are an  increasing  trend  in  business  life.  Already 60% of all companies are using mobile Internet connections in 2010. Swedish  people  are  interested  in  a  product  which  can  increase  their customers’  competitiveness and  increase  the  company’s  value  for  its  owners, customers and another interest groups.

Swedish people are open-minded to test new services and products. The good thing is that they might accept the new product or service very easily, but the challenge is to keep the product or service updated. People in Sweden are well educated  and  they  are  looking  all  the  time  new  innovative  ways  to  run  the business.

  • Conclusions:

- The majority of companies cost  are spent on software research and development. So they are willing to invest on software if they can see the product useful for the business. The most favorable applications  are  such  as  ERP,  CRM,  financial  management  and  information software, on which the companies are spending about 60% of their founds.

-The environmental study concentrated more on macro indicators which means background  forces  behind  the  company’s  activities  such  as  social, technological,  economical  and  political  environment.

-Sweden’s lifestyle  and  culture  form  an  ideal  market place, because they are open-minded to test new services and products. The people  are  well  educated  and  they  are  all  the  time  searching  for new  innovation solutions  to  run  their  business.  The positive point is that the customers are willing to  accept  new  innovation,  but  they  can  also  replace  it  when  they  can  find  a better  solution.  So the  major  challenge  is  to  keep  the  product development up.

- Sweden  is  one  of  the  leading  countries  in the development  of  information  and  communications  technology.  Almost every company has computer and Internet access and already 60% of all companies had  a  mobile  Internet  connection  in  2010.  So, mobile  phones  are  becoming more and more important on daily business.

- Swedish  people  are putting  a  lot  of  effort  to  improve  the  environmental  technology,  so  this  “eco” thinking has a strong position in Swedish culture.

- Sweden is making a lot effort to software research and development and they want to be the top leaders in the software markets by 2020.

-The global software leaders Microsoft, International Business Machines (IBM), Oracle and SAP are also leading the Swedish software markets, but they are controlling particular areas of software branch which is why the local companies have also  acquired  a  good  position  on  the  market.

-Swedish software and IT services have a larger number of companies than the other sub-sectors,  but  most  of  them  are  small  companies.

- IT outsourcing has been a steadily growing part of the Swedish IT market, which is considered to be the largest market within the Nordic region and the 3rd largest in Europe. Every year more Swedish companies decide to outsource. The majority of Swedish companies decide to outsource due to conditions such as a shortage of IT domestic skills and high costs of performing in-house solutions, or a need to re-focus on core competencies. In order to avoid multiplied risks associated to outsourcing.

And what tendencies in Swedish IT market would you like to point out? It is interesting to know your opinion!

 

Katerina Kviatkovskaya

Katerina Kviatkovskaya
Kate.Kviatkovskaya@altabel.com
Skype ID: kate.kviatkovskaya
Business Development Manager (LI page)
Altabel Group – Professional Software Development

When people want to start up a company they dream of having something like such global giants as Microsoft, Apple, Google, etc. but it isn’t easy and a lot of factors should be taken into account, including the country traditions, the government general policy in the field of entrepreneurship, the public attitude towards the innovative ideas, the existence of the precise set of tools to stimulate innovation, human capital and research, infrastructure and many others. Why is it easy to set up new companies in one country and difficult in another? To answer this question I investigated the experience of Scandinavian states in this field. Why precisely Scandinavia?

Nordic countries seem to be in the forefront of this development. Having given us Ericsson, Skype and Spotify Scandinavia has become a global leader in IT, mobile and multimedia development, and the pace of innovation shows no sign of slowing. The list of prosperous start – up companies itself is inspiring: Spotify, iZettle, SoundCloud, Klarna, Uber, Fishbrain, Sticky Wrapp in Sweden.  I needn’t even mention such giants from Denmark as the app developer Podio and Unwire, a mobile platform provider which enables the hosting of TV content on mobile phone. Or let’s take Bird Step from Norway which continues to bring a raft of leading-edge mobile connectivity products to market. By the way, Sweden is currently No.1 in the world for IT, according to the latest Global Information Technology Report. In fact, all three Scandinavian countries are among the top 10.

I think, the reasons why start ups are so popular in Scandinavia are the following:

-political and economic factors play a key role.  Scandinavian strong welfare system makes people feel safer and enables them to take risk to start their own company. Government support for tech innovation is evident in basic conveniences such as free Wi-Fi, and each administration has introduced specific measures to encourage tech development;

-clustering– the pooling of ideas by a group of organisations for common gain. Vivid example of this is creation of the Movation innovation partnership by 7 Norwegian tech companies in 2006 and the Nordic Tech Five linking universities in Denmark, Norway, Finland and Sweden. It has become possible due to the compact nature of the region which encourages a shared sense of purpose and a willingness to help each other out.

 - tech culture and general positive attitude of Scandinavians to innovation is the biggest factor in Scandinavian supremacy.  Scandinavian people pick up trends quickly. The same goes for new markets and technology. Common people are willing to embrace new technology, specifically regarding IT and communication. In 2009, a survey in Denmark found 72% of the population used the internet every day, people are not afraid of the internet in Scandinavia, everyone buys online. Isn’t it a dream for any country when old Nordic grannies surf the net, school children use laptops in exams and parents allow their kids online without fearing for their safety? It is a nation embracing IT.

- history and tradition play a crucial part in start-up trends, too. This enthusiasm for innovation, particularly mobile innovation, goes back decades. Sweden, for example, is very strong in engineering, from building the first telephones, to the global expansion of Nokia. Engineering has always been sought after, and tech is just the latest manifestation of that.

- strong support of tech talents and fierce competition for talents. All top-ranked Nordic universities enclose student incubators that offer everything from free working space to specific courses and mentor programs to encourage and foster virtuous entrepreneurship. To start a company Scandinavian entrepreneurs could find world class engineers and designers.

 - scale advantage. The small scale of the Scandinavian market is used by Nordic start-ups to their advantage. They are more organized, disciplined and mobile.

- nation’s infrastructure – telecommunications, education and institutions – has helped deliver high broadband and mobile penetration and a tech-savvy population. The Internet in Scandinavian countries is pretty ubiquitous, affordable, and the average speed for both down- and upload is good.

- rapid globalization of Scandinavian start-ups. Nordic people have got more international quickly which makes it an advantage. Moreover, most Swedes, Norwegians and Danes are skilled English speakers which is a big advantage for start-ups to become international.

- great informal network which unites experienced and new entrepreneurs. The amount of knowledge sharing among community members is huge. The advice websites for start-up businesses are really popular. People help each other and share best practice information.

- availability of Venture capital helps start-ups make a good start, too. The amount of Venture capital available in relation to the GDP is higher in Scandinavia than in the rest of Europe. 

-  accelerator programmes for startups developed in Scandinavian countries are a relatively new, ‘modern’ breed of business incubators which attract small teams and provide a number of technology companies with seed funding, mentoring, training like SICS and Bonnier’s Accelerator in Sweden, beta FACTORY in Norway, Startup boot camp Mobility and Accelerace in Denmark.

-  long, dark, and cold Scandinavian  winters encourage people to stay inside and noodle away at creative endeavors, such as programming or gaming. So, when Scandinavians don’t chop wood they sit in front of the internet and consume. :)

As a conclusion, I’d like to say that there are probably many more aspects. And we don’t deny that Scandinavia has its challenges as well. Not everything is perfect, and there are exceptions to every rule. But simply judging from the quantity (and quality) of its entrepreneurial outcome the climate for starting your own company seems to be pretty good there in the north. Ladies and gentlemen, that’s why Scandinavia is winning. Feel free to add your thoughts in the comments!

 

Katerina Kviatkovskaya

Katerina Kviatkovskaya
Kate.Kviatkovskaya@altabel.com
Skype ID: kate.kviatkovskaya
Business Development Manager (LI page)
Altabel Group – Professional Software Development

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.

Kristina Kozlova

Kristina Kozlova
Kristina.Kozlova@altabel.com
Skype ID: kristinakozlova
Marketing Manager (LI page)
Altabel Group – Professional Software Development

All of these mobile devices were supposed to make our jobs easier. On a flight? Edit your presentation from your tablet at 10,000 feet. Working from home? Review a time-sensitive document on your smartphone. This was the popular narrative on-the-go workers told themselves, and it was a good story – but it was a fictitious one.

Editing a Word document on an Android phone was not easy, nor was editing an Excel spreadsheet on an iPad. The Microsoft Office that workers know today is still stuck in its original design meant for a desktop computer. And when mobile users tried to download workaround applications, they often found so-called solutions that failed to live up to their promises. That, finally, is changing.

The market is now producing tools that offer a true fix to the mobile workflow challenge, with functionality to address every pain point that has throbbed in recent years. We have entered an era of all-in-one mobile productivity, although the difficulties of the recent past have left mobile enterprises skeptical of a brighter present and future.

That skepticism is understandable. Because Microsoft doesn’t offer an Office version for iPads, Android phones or any of the other popular mobile devices or operating systems that today’s workforce uses to stay connected, those workers had to build their own connectivity to their offices, coworkers and clients. For example, if a mobile worker wanted to revise a Word document on an iPad, he might have a complex recipe in place to make a few simple edits, and now IT solutions have arisen to fill each gap:

Step one: gain access. To even open the file, the mobile worker had to email the attachment to himself or open an account with a cloud storage service like Box.

Step two: view the file. Next, he might have downloaded an operating system-agnostic productivity app like Open Office to open the file on his mobile device and see whatever text, tables or graphics it contained.

Step three: edit or annotate. This can be the most difficult step, since some viewing apps don’t offer editing capabilities. At this stage, an additional annotation app comes into play for writing notes or changing the Word file.

Step four: save and share. To share an edited, annotated file from his mobile device, the user might have opted for Box or Dropbox. Enterprises should use more stringent criteria to leverage combined file access, viewing, editing and sharing on one interface for mobile enterprise workers. There are several mobile-friendly apps that aim to replicate the editing control you have from your desktop, while also building the cloud’s accessibility into their DNA.

Step five: secure. While it’s important that mobile workers can access files from anywhere, risk-averse enterprise users also have to ensure that unauthorised parties can’t access those files. Dropbox and Box have begun building security controls to accommodate enterprise security needs, such as permissions in Dropbox for Teams; however, these controls pale in comparison to security applied directly to a file, rather than the cloud compartment it lives in, for the inevitable point when that file is shared offline, outside the cloud.

IT department concerns with compatibility are no longer limited to “dumb” phones that are solely used for calls or simple text emails. The next generation of enterprise IT problems involve ensuring file compatibility and security across operating systems. Some organisations will even limit employees’ bring-your-own-device (BYOD) practices to one OS (like an iPhone) altogether just to avoid the issues that stem from this type of segmentation. The result has been frustration among on-the-go employees, suppressed productivity, and company fear regarding mobile access.

This trend will only continue to grow. By 2017, according to several forecasts by Gartner and Forrester, tablet sales will outnumber desktop sales. In addition, we’re likely to see mobile phone shipments (mostly smartphones) grow to more than 2 billion in 2017, according to Gartner.

To keep pace with the growing employee demand for mobile access and collaboration solutions, businesses must rely on technologies that keep information safe and increase mobile productivity, which is a combination rarely seen in today’s market. This means scrapping piecemeal solutions that only address one aspect of the mobile-user experience and implementing an all-in-one solution that facilitates secure access, editing and collaboration, and control over a file’s complete lifecycle in order to track recipients and revoke access at anytime if needed.

The future belongs to computing on the move. That future is now for enterprises and employees that select secure, native Microsoft Office functionality and collaboration tools for their mobile devices.

To conduct everyday business, mobile users have been forced to download multiple apps to help them access, edit and annotate Microsoft Office files. They have settled for insecure cloud file services for sharing. The time for settling is over. Enterprise IT needs to deliver instant access to any file from anywhere, and companies can now achieve this. Mobile devices were supposed to make our jobs easier. With the recent evolution in mobile collaboration tools, they do.

Kristina Kozlova

Kristina Kozlova
Kristina.Kozlova@altabel.com
Skype ID: kristinakozlova 
Marketing Manager (LI page)
Altabel Group – Professional Software Development


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