I just finished reading an article in PC Magazine that really got me thinking.
The piece was entitled ‘The Apple Product That Really Worries PC Vendors’.
It really got me thinking, especially in light of the fact that the Commonwealth Bank recently decided to arm their staff with MacBook Air laptops.
The interesting this about this was the following:
Branch visitors were free to use iMac, iPad, iPod and Asus touchscreen devices to browse foreign exchange rates, products, and to make appointments with CBA specialists – much like how Apple customers arranged to visit the vendor’s ‘Genius bar’.
The bank also planned to replace internal Dell desktops with MacBook Air notebooks nationwide, allowing employees to choose to operate on either Mac OS or Windows platforms.
Wow! I really mean WOW!
Think about this in terms of the the information from Canalys that I mentioned in this post ‘Wintel Market Share Slips’.
The Commonwealth Bank, the guys who hung on to OS/2 for years past its expiry date are doing a widespread deployment of Apple MacBook Air laptops. This is astounding news.
Here’s the really amazing potential - lets assume that they replace all 4000 Dell laptops with the MacBook Air. Here’s the really interesting maths:
4000 copies of Windows 7 Entreprise, even at the best possible price couldn’t be less that $175 a copy, lets call it $150 just to keep the calculations simple. Lion is $31.99.
That means a saving on OS upgrade costs of $472,040.
Half a Million Dollars saving on an Operating System upgrade!
Where would you want the half million, on your bottom line or on Microsoft’s?
Careful of your answer, your shareholders are watching.
Monday, August 22, 2011
The reports of my death are greatly exaggerated…kinda
One of the corporate butt coverers at HP, Jon Zilber, posted on the HP Palm blog that the planet was wrong.
WebOS isn’t dead. Its very much alive and kicking, just in some strange undead form and no one has been smart enough to see it.
He says “Far from burying webOS, our goal is to ensure the platform's evolution as a robust operating system for an increasingly mobile and connected world.“
I’m kind of curious to see exactly how this is going to happen.
Let’s try to imagine the conversation.
HP: WebOS has a huge future. We’ll cut you an amazing licensing deal on it. You can develop phones and tablets using it and compete against Android and iOS.
Prospective Licensee: Didn’t you guys try that?
HP: Yes.
Prospective Licensee: And how did that work out for you?
HP: It was a great experience. That’s why we’re here talking to you. We want to share the opportunities with you specifically and the rest of the industry for anyone with the vision to see the possibilities.
Prospective Licensee: So if it was such a great experience why did you stop making phones and tablets? I mean with a sell-through rate of around 10% on the tablet I’m not seeing an advantage here.
HP: It’s based on strategic initiatives.
Prospective Licensee (very confused): Huh?
HP: Leo has seen the future and its software.
Prospective Licensee (even more confused): Okay? But didn’t he say not that long ago that hardware was important?
HP (ignoring comment): So for us to leverage his strategic decision to strategically reposition HP as a software vendor by making this key acquisition for $10 billion of a cloud offering vendor that has astounding upside potential we need to exit future non-core businesses now before they become a drag on future potential earnings.
Prospective Licensee: What?
HP: Look. Everyone knows software is going to drive the industry so we’ve gotten out of the business of building tablets and phones.
Prospective Licensee: And you want me to develop software for what, exactly using WebOS?
HP: Phones and Tablets.
Prospective Licensee: I don’t understand.
HP: That’s part of our strategy. If people can’t understand exactly what we’re doing with WebOS you’ll be able to deliver a market shattering product.
Prospective Licensee: But I want to know what I’m getting into before I sign on the bottom line.
HP: Why? We didn’t when we bought Palm, we were just reacting to Apple and Google. Look everyone wants smartphones. Just sign here and you’ll make a fortune.
Prospective Licensee: I don’t think so.
HP: Trust us. We’ve got your back.
So WebOS is left to forever wander the Earth until someone finally decides that a wooden stake needs to be driven into its undead heart. I just don’t think anyone involved with HP’s Palm division will do it because it’ll be too detrimental to their career.
Better to spin a colossal screw up into a positive while polishing your CV while HP shareholders grab their ankles again.
WebOS isn’t dead. Its very much alive and kicking, just in some strange undead form and no one has been smart enough to see it.
He says “Far from burying webOS, our goal is to ensure the platform's evolution as a robust operating system for an increasingly mobile and connected world.“
I’m kind of curious to see exactly how this is going to happen.
Let’s try to imagine the conversation.
HP: WebOS has a huge future. We’ll cut you an amazing licensing deal on it. You can develop phones and tablets using it and compete against Android and iOS.
Prospective Licensee: Didn’t you guys try that?
HP: Yes.
Prospective Licensee: And how did that work out for you?
HP: It was a great experience. That’s why we’re here talking to you. We want to share the opportunities with you specifically and the rest of the industry for anyone with the vision to see the possibilities.
Prospective Licensee: So if it was such a great experience why did you stop making phones and tablets? I mean with a sell-through rate of around 10% on the tablet I’m not seeing an advantage here.
HP: It’s based on strategic initiatives.
Prospective Licensee (very confused): Huh?
HP: Leo has seen the future and its software.
Prospective Licensee (even more confused): Okay? But didn’t he say not that long ago that hardware was important?
HP (ignoring comment): So for us to leverage his strategic decision to strategically reposition HP as a software vendor by making this key acquisition for $10 billion of a cloud offering vendor that has astounding upside potential we need to exit future non-core businesses now before they become a drag on future potential earnings.
Prospective Licensee: What?
HP: Look. Everyone knows software is going to drive the industry so we’ve gotten out of the business of building tablets and phones.
Prospective Licensee: And you want me to develop software for what, exactly using WebOS?
HP: Phones and Tablets.
Prospective Licensee: I don’t understand.
HP: That’s part of our strategy. If people can’t understand exactly what we’re doing with WebOS you’ll be able to deliver a market shattering product.
Prospective Licensee: But I want to know what I’m getting into before I sign on the bottom line.
HP: Why? We didn’t when we bought Palm, we were just reacting to Apple and Google. Look everyone wants smartphones. Just sign here and you’ll make a fortune.
Prospective Licensee: I don’t think so.
HP: Trust us. We’ve got your back.
So WebOS is left to forever wander the Earth until someone finally decides that a wooden stake needs to be driven into its undead heart. I just don’t think anyone involved with HP’s Palm division will do it because it’ll be too detrimental to their career.
Better to spin a colossal screw up into a positive while polishing your CV while HP shareholders grab their ankles again.
Sunday, August 21, 2011
Now that we ditched WebOS we can spend like there's no tomorrow
On the back of HP saying that they’re shutting down their WebOS business, Leo Apotheker decides that he’s going to go back to what he knows…monolithic, galactically expensive, software.
Yep there’s great fit for HP.
They’re in the hole for $1.2 billion over the Palm aquisition and now they want to shell out $10.24 billion to buy Autonomy. A 64% premium.
What is it with these guys? This is supposed to be a cash deal, no stock. Hmmm…they saw young Leo coming.
They get to cash up, big time, and Leo gets to add big software to the HP portfolio. Yet another acquisition to add business to the HP group, we can see how successful thats been in the past.
Looking forward to see how that one is going to turn out for the HP shareholders.
But you can bet that Leo will have cashed out by then and enjoying his life on some sandy beach leaving the HP shareholders to hold the bag.
I like the take that this article has on HP’s PC business. Tells me a lot about how Leo thinks.
He’s a software guy and he’s reverting to type. hardware just isn’t his thing.
I wonder if he would have made this deal if a large part of his bonuses was based on long term performance of the company after this latest cash splurge.
I really think that this isn’t going to end up being the greatest moment in HP’s history.
Yep there’s great fit for HP.
They’re in the hole for $1.2 billion over the Palm aquisition and now they want to shell out $10.24 billion to buy Autonomy. A 64% premium.
What is it with these guys? This is supposed to be a cash deal, no stock. Hmmm…they saw young Leo coming.
They get to cash up, big time, and Leo gets to add big software to the HP portfolio. Yet another acquisition to add business to the HP group, we can see how successful thats been in the past.
Looking forward to see how that one is going to turn out for the HP shareholders.
But you can bet that Leo will have cashed out by then and enjoying his life on some sandy beach leaving the HP shareholders to hold the bag.
I like the take that this article has on HP’s PC business. Tells me a lot about how Leo thinks.
He’s a software guy and he’s reverting to type. hardware just isn’t his thing.
I wonder if he would have made this deal if a large part of his bonuses was based on long term performance of the company after this latest cash splurge.
I really think that this isn’t going to end up being the greatest moment in HP’s history.
Saturday, August 20, 2011
R.I.P Microsoft Reader. What? I thought it died years ago?
I came across an article talking about this the other day. They claimed that the product was too ahead of its time.
This just sounds like the blatherings of a fanboi.
To be sure, over the years there have been a lot of technically brilliant products that have stumbled and failed. VHS Vs. Beta anyone?
Microsoft Reader failed because it was just created as yet another way to drive sales of Windows. There was never going to be a Kindle-like device from Redmond and that was always going to be the problem.
I mean who the hell was going to snuggle up in bed with one of those original and insanely expensive Windows Tablet PC’s (all 3+ Kgs of it) to read their favourite book, while connected to power because the battery life was so crappy?
Wake up to yourselves! That was never going to happen!
The great thing about Amazon’s solution is that I can read my books on any doohickey I’ve got - iOS, Android even WinMoPho as well as a real honest to goodness Kindle. That was never going to happen with the Microsoft Reader.
And that’s the whole problem with Microsoft, they’re a one trick pony and that trick is Windows. Everything they do is built on the credo of “sell more Windows” and that’s going to be the reason for their ultimate failure. I mean if people didn’t really want choice then every car would be a Ford.
Sometimes people just want to buy a Kindle.
This just sounds like the blatherings of a fanboi.
To be sure, over the years there have been a lot of technically brilliant products that have stumbled and failed. VHS Vs. Beta anyone?
Microsoft Reader failed because it was just created as yet another way to drive sales of Windows. There was never going to be a Kindle-like device from Redmond and that was always going to be the problem.
I mean who the hell was going to snuggle up in bed with one of those original and insanely expensive Windows Tablet PC’s (all 3+ Kgs of it) to read their favourite book, while connected to power because the battery life was so crappy?
Wake up to yourselves! That was never going to happen!
The great thing about Amazon’s solution is that I can read my books on any doohickey I’ve got - iOS, Android even WinMoPho as well as a real honest to goodness Kindle. That was never going to happen with the Microsoft Reader.
And that’s the whole problem with Microsoft, they’re a one trick pony and that trick is Windows. Everything they do is built on the credo of “sell more Windows” and that’s going to be the reason for their ultimate failure. I mean if people didn’t really want choice then every car would be a Ford.
Sometimes people just want to buy a Kindle.
Friday, August 19, 2011
Samsung isn't thrilled by Googorola
Seems like Samsung was being ‘polite’ about the Googorola hook up after all
Read the article here.
Looks like Samsung’s going to open the wallet too.
If this keeps up and companies start spending cash like there’s no tomorrow then maybe they’ll also jump start the economy.
Read the article here.
Looks like Samsung’s going to open the wallet too.
If this keeps up and companies start spending cash like there’s no tomorrow then maybe they’ll also jump start the economy.
Alas poor WebOS we knew thee not at all.
So HP has pulled up stumps, plans to sell off its bat and ball and go back to Palo Alto.
Leo Apotheker has decided that playing in this space is something that HP just can’t do. HP is also going to look at, maybe, getting rid of their PC business.
So lets get this straight, in 2001 HP bought Compaq, who were having indigestion from their acquisition of Digital. A lot of HP shareholders, including Walter Hewlett objected to the purchase and the deal just squeaked through (and there were noises about a bunch of back room deals being done to get it over the line).
Now, ten years later it looks like leaving Compaq alone would have been the smart thing to do.
HP announced that they would be looking at considering “a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction”.
Good move Leo, looks like PSG was your best performing division and sold more units than your nearest competitor, Dell. Lets chalk another one up for management genius in this decision.
Rewind to 2010. HP buys Palm for $1.2 Billion. Why? Because we’ve got to get into the phone, handheld doohickey marketspace.
Today HP announces that “it will discontinue operations for webOS devices, specifically the TouchPad and webOS phones. HP will continue to explore options to optimize the value of webOS software going forward.”
That sound you hear is a billion dollars being flushed down the toilet.
The fact is that margins are being squeezed in the PC business and HP doesn’t want to compete against guys like Dell, Lenovo, Acer, ASUS and Toshiba. In the tablet/phone business they just couldn’t make it work, but at least were smart enough to figure they should get out sooner rather than later.
This is telling us that when it comes to Mergers and Acquisitions that are made to gain market share or shut down competitors, it rarely ever works so what does this tell us to expect from the Googorola mutant as time goes by?
Have a look at this piece from The Register - HP chief bows to Jobsian cult.
The interesting part of the discussion is at the end of the article where it quotes Leo saying
"Due to market dynamics, significant competition, and a rapidly changing environment – and this week’s news only reiterates the speed and nature of this change – continuing to execute our current device approach in this marketplace is no longer in the best interest of HP and HP shareholders.
It's not. All those shareholders are wishing they'd bought Apple. The tablet effect is quite real, and it's affecting desktops and notebook sales at Apple too. It's driving them up.”
Leo Apotheker has decided that playing in this space is something that HP just can’t do. HP is also going to look at, maybe, getting rid of their PC business.
So lets get this straight, in 2001 HP bought Compaq, who were having indigestion from their acquisition of Digital. A lot of HP shareholders, including Walter Hewlett objected to the purchase and the deal just squeaked through (and there were noises about a bunch of back room deals being done to get it over the line).
Now, ten years later it looks like leaving Compaq alone would have been the smart thing to do.
HP announced that they would be looking at considering “a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction”.
Good move Leo, looks like PSG was your best performing division and sold more units than your nearest competitor, Dell. Lets chalk another one up for management genius in this decision.
Rewind to 2010. HP buys Palm for $1.2 Billion. Why? Because we’ve got to get into the phone, handheld doohickey marketspace.
Today HP announces that “it will discontinue operations for webOS devices, specifically the TouchPad and webOS phones. HP will continue to explore options to optimize the value of webOS software going forward.”
That sound you hear is a billion dollars being flushed down the toilet.
The fact is that margins are being squeezed in the PC business and HP doesn’t want to compete against guys like Dell, Lenovo, Acer, ASUS and Toshiba. In the tablet/phone business they just couldn’t make it work, but at least were smart enough to figure they should get out sooner rather than later.
This is telling us that when it comes to Mergers and Acquisitions that are made to gain market share or shut down competitors, it rarely ever works so what does this tell us to expect from the Googorola mutant as time goes by?
Have a look at this piece from The Register - HP chief bows to Jobsian cult.
The interesting part of the discussion is at the end of the article where it quotes Leo saying
"Due to market dynamics, significant competition, and a rapidly changing environment – and this week’s news only reiterates the speed and nature of this change – continuing to execute our current device approach in this marketplace is no longer in the best interest of HP and HP shareholders.
It's not. All those shareholders are wishing they'd bought Apple. The tablet effect is quite real, and it's affecting desktops and notebook sales at Apple too. It's driving them up.”
Thursday, August 18, 2011
How do I know that the Mac is making corporate inroads?
Challenging the dominion of Windows in the corporate world is the Mac.
Buoyed by increasing marketshare and a better user experience there are cracks starting to appear in Microsoft’s corporate Berlin Wall.
Autodesk announced that AutoCAD LT will be available through the App Store at $899.
AutoCAD has been available on the Mac platform for a while now as well.
Is this the first of many to come?
Buoyed by increasing marketshare and a better user experience there are cracks starting to appear in Microsoft’s corporate Berlin Wall.
Autodesk announced that AutoCAD LT will be available through the App Store at $899.
AutoCAD has been available on the Mac platform for a while now as well.
Is this the first of many to come?
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