Apple and Windows Dominate Channel-Lands

Once upon a time in the quiet, Windows-dominated Channel-Lands, we would hear a whisper about Apple and its consumer-oriented products. Oh, sure, they were fine for musicians and graphic artists, but hardly suitable for corporate power users. That’s changing, as evidence in this past week’s channel news, which saw a teeter-totter between the rivals in Silicon Valley and the great Pacific Northwest.

Apple Hardly Falling

How successful is Apple in its strategy to take over the world? It’s not just robbed Microsoft for the title of the most valuable technology company, but it’s on track to become the most valuable company in the United States – period. Forbes is reporting Apple’s market cap (its value to stock traders or the amount it would command if sold) is $290 billion – a scant $40 shy of first place company ExxonMobil. In real terms, Apple is now more valuable that HP, IBM, Microsoft, Cisco, Dell and Google. Since overtaking Microsoft a few months ago, it’s piled on its valuation, leaving Microsoft hovering around $235 billion.

Propelling Apple’s valuation is iEverything. iPhone activations average 250,000 a day – and has displaced RIM as the market leader. It’s sold nearly 20 million iPads since their debut in January. And the Mac personal computer’s market share has topped 11 percent. Apple last week reported its first $20 billion quarter – which puts it on track to overtake Microsoft in terms of real revenue.

Channel Insider is doing wall-to-wall Apple coverage, including CEO Steve Jobs ripping competitor RIM for not getting the changing dynamics of the mobile marketplace. Channel Insider published an interesting slide show called “10 Things Apple Doesn’t Get About Business”. Some might say this piece should have the subtitle “7 Things Channel Insider Doesn’t Get about Apple.” The slide show recounts Apple’s spotty history with third-party software, rigid contract terms and lack of enterprise focus. Nevertheless, Apple is leveraging all of its strengths to push deeper into businesses and the channel.

Ray Ozzie Departs Microsoft

When Microsoft bought Groove Networks, it was getting two things Bill Gates wanted – solid technology for future collaboration systems and a true technology guru in Ray Ozzie. When Gates retired, Ozzie was handpicked as his successor to the altar of Microsoft’s spiritual guru.

Ozzie’s rein only lasted two years, and it was a fairly uneventful one. CEO Steve Ballmer credits Ozzie for developing Windows Azure, Microsoft’s online development platform – no small accomplishment. However, Ozzie has few other accomplishments to his credit and he hardly took up the mantel of driving Microsoft’s vision in the way Gates did.

Few in the channel know Ray Ozzie better than TechTarget’s Barbara Darrow. As she reported last week, Ozzie’s departure may say more about Microsoft’s culture and direction than anything else. She writes: “Microsoft insiders said Ozzie's tenure was marked with contention with the powerful Windows and Office product groups, the leaders of which did not report to Ozzie. He was tasked with taking a company that was 100-percent focused on the sale of more and more software licenses for on-premises use to one that would be more cloud-focused. That move from big-bang upfront software license sales to a world of smaller, monthly subscription sales was disruptive to say the least.”

It’s a particularly damning assessment considering Microsoft’s channel maven Cindy Bates told the channel faithful at SMB Nation this weekend that 90 percent of all Microsoft research and development will involve cloud computing. Bates also had some interesting things to say about Microsoft’s future in cloud services, including the launch of Office 365, Web-based CRM and BPOS. Check out The VAR Guy’s full assessment of her address for more details.

Microsoft Celebrates Windows 7’s First Birthday

Speaking of Microsoft, this past week was the first anniversary of Windows 7 launch. The much-vaunted operating system is seemingly rescuing Microsoft from the malaise known as Windows Vista. Since its general release, Microsoft has sold more than 240 million licenses for the new operating system, and demand seems robust as Windows 7 sails past 17 percent of global market share. Driving adoption are OEM partners who are now shipping Win7 on 93 percent of all new PCs. As Channel Buzz’s Robert Dutt says, “the biggest reason solution providers should be celebrating this milestone: Windows 7 gave Microsoft its swagger back.”

Power Management, Power Opportunity

Try to find “power” or “electricity” on any business budget. It just doesn’t exist; it’s a cost of doing business that’s buried in SG&A. But power consumption and increasing power cost attributed to IT systems is a real concern for cost-conscious businesses. Channel-Pro’s Ellen Muraskin penned an interesting article about the opportunities and options for power management. The big differentiator: the ability to measure as much as manage.

Well, that’s all the week’s news from Channel-Lands where all the technology works, all the deals are profitable and all of the companies are above average. If you want to follow me on Facebook or Twitter, feel free to connect. Share your suggestions and news with me at lmwalsh@the2112group.com.