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Microsoft's Big Bet: Win With the Web

Bill Gates is revamping Microsoft's core product with a souped-up, Web-linked version dubbed Windows Vista. Due later this year, it's the biggest rollout in a decade, with high-stakes implications for the company's dominance.

Microsoft's fiercest Vista competitors are not Mac OS X or the open-source Linux operating system. The biggest competitors Vista faces are older versions of Windows.

Microsoft is counting on a few factors aside from Vista itself to drive sales. The software giant is in the midst of a major anti-piracy crackdown. That initiative requires users to prove they are running legal copies of Windows, via a Web-authentication mechanism, before they are allowed to download utilities and other Windows-specific content from Microsoft's Web site. Those running pirated copies will be encouraged to upgrade to the latest version of Windows.

Details

Windows Vista home page

Windows Live beta

Mary Jo Foley's Microsoft Watch blog


Previous Microsoft coverage
in Seattle Weekly

A Bug in Windows GOP
Microsoft is ending its relationship with choirboy-lobbyist Ralph Reed, but the company's ties to others in the seemingly infinite loop of the Republican lobbying scandal are deep—in D.C. and Seattle. June 1, 2005

Citizen Microsoft
It's time we stopped acquiescing to the behemoth in Redmond, because what's good for big business isn't necessarily good for Washington. Sept. 29, 2004

How to Excel in D.C.
Spread lots of money around. Microsoft is now the No. 3 corporate political donor. Sept. 22, 2004

Microsoft's Sacred Cash Cow
A former Microsoftie says addiction to Windows revenue, mediocre products, and missed opportunities could doom Seattle's most successful company. June 2, 2004

Spam Wars: Windows is Part of the Problem
In a world of worms like Mydoom, is Microsoft getting serious about spam? Yes and maybe. Jan. 28, 2004

XPorting Tech Jobs
The impact of sending work overseas is hitting home for area technical workers. Nov. 26, 2003

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At the same time, Microsoft is looking to new markets it has yet to tap for future Windows sales. Emerging PC markets outside the U.S. are growing at a rapid clip and will be another area for Microsoft to plumb for Vista sales. The company is looking beyond the Windows XP Starter Edition—a cut-rate, stripped-down version of Windows sold in developing countries—to attracting affluent customers in emerging markets.

To keep the Windows coffers full, Microsoft also is going to put a lot of energy into convincing customers who do buy the new operating system that there is more value in higher-end versions of Vista than in the basic editions. As with Windows XP, there will be six versions of Vista: Business, Enterprise, Home Basic, Home Premium, Ultimate, and Windows Vista Starter.

Will users deem Vista and Windows Live products ahead of their time, improvements that can wait? Or will they snap up the software-services combo as soon as it becomes available? The answer is six months or so away.

info@seattleweekly.com


Mary Jo Foley writes the Microsoft Watch blog (www.microsoft-watch.com) and newsletter for Ziff Davis Media (www.ziffdavis.com) in New York. She has been a tech journalist for 23 years and interviewed Bill Gates for the first time in 1984, when Microsoft was micro-sized. Foley has dedicated her career to covering Microsoft for a variety of publications and Web sites, including ZDNet/CNet on the Web, the corporate computing magazine eWeek, and others. She moved to Seattle in 1993 to better stalk the company, but after a particularly rainy year, she decided in 1998 to move back to the East Coast.

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