What's Wrong with Microsoft's Mobile Strategy

Michael Gartenberg | December 03, 2003, 08:49 AM

I have been reading a lot of critiques of Microsoft's Mobile strategy lately. Especially with the departure of Juha Christensen, (who was brought on board from Symbian to help Microsoft gain some needed ground against rivals like Symbian and Palm) more and more it seems like the Mobility division is in need of some leadership. Before that happens, it would be wise to look at what works, what doesn't and why. We just finished a major report on mobile devices so I'll have a lot more to say in the coming weeks as we release the data. In the meantime, here are some top line thoughts.

Overall, Microsoft isn't doing nearly as badly as they might seem. Over the last four years, we have seen PocketPC go from close to zero market share to owning nearly a third of the market. The Smartphone platform has finally made some headway in the US with both major handset vendors and carriers offering services and products. Tablet PC is making strides and many of the pilots we saw in 2003 will likely become deployments in 2004.

So what's missing?  Probably the most glaring thing is a cohesive strategy between the diverse business units. There needs to be a clear articulated message that recognizes that mobility features among products are interrelated. That means that Tablet PC, PocketPC, Smartphone, SmartDisplay, Portable Media Center and SPOT all have to work together. More importantly there needs to be a synergy among the products. Right now, at best, the PC serves as the hub for the other devices but that has to change. In some cases, products directly compete with each other, such as PocketPC, PocketPC Phone Edition and Smartphone. These products need to be integrated to work together and create a seamless whole.

Our research indicates clearly that consumers and business customers do not neatly segment themselves as clearly as they used to. Consumers buy Smartphones with their own money and expect them to connect to business systems. Likewise, corporate PDAs need to connect to home computers as seamlessly as they do to the ones at work. As long as there is a co-mingling of personal and business information and data mobility needs to serve as a bridge. This is an opportunity that Microsoft is missing at the moment. So what would I do if I were Microsoft?

1. Clarify the mobility message but recognize there will be overlap between devices and functionality.

2. Ignore device convergence and focus on getting core features in the right device.

2. Keep phones, phones but add PIM functionality. Keep PDAs connected and integrated to phones. Break out media functions to Portable Media Center.

3. Integrate PDA and Phone connectivity for maximum integration that let's me have core PIM functions on the phone, extended functions on the PDA such as Web browsing and e-mail as well as light content creation and and link the phone and PDA together so the PDA can perform wireless functions.

4. Maximize the experience of product ownership. If owning a Tablet PC is good, a Tablet PC and a Pocket PC should be better. A Tablet PC, a Pocket PC and Smartphone even better than that. A Tablet PC, a Pocket PC, a Smartphone, a Portable Media Center and a SPOT watch should be ecstasy!