Showing posts with label edpicks. Show all posts
Showing posts with label edpicks. Show all posts

Friday, 11 April 2014

Microsoft drags customers 'kicking and screaming' into its world of faster updates

Mandates Windows 8.1 Update to receive future patches; evidence of commitment to constant OS refreshes, say experts

Microsoft's demand that Windows 8.1 users install this week's major update was another signal that the company is very serious about forcing customers to adopt its faster release strategy, experts said today.

"Microsoft is going to drag organizations and users into this new world of faster updates kicking and screaming," said Michael Silver of Gartner in an email. "Microsoft wants users to trust it to keep their systems updated. Maybe they figure forcing organizations to deploy [Windows 8.1 Update] will get them used to taking updates and keeping current."

Earlier this week, Microsoft shipped Windows 8.1 Update (8.1U), adding that to obtain future updates, including fixes for vulnerabilities distributed each month on "Patch Tuesday," Windows 8.1 users had to install 8.1U.

"Failure to install this Update will prevent Windows Update from patching your system with any future updates starting with updates released in May 2014," Microsoft said.

May 13 is the first Patch Tuesday that will require 8.1U.

That requirement got the attention of users. And not in a good way.

"What happened to Microsoft's Lifecycle policy with providing customers with a 24-month timeframe before ending support of a superseded operating system RTM/Service Pack?" asked a user identified as "wdeguara" in a comment appended Tuesday to Microsoft's blog-based announcement. "By immediately withdrawing all future security updates for Windows 8.1 RTM, in the eyes of most enterprise customers you are effectively performing an immediate End-of-Life on Windows 8.1 RTM.

"I know that Microsoft wants its customer base to adopt updates to its Windows platform faster, but immediately dropping security patching on the Windows 8.1 RTM release is just plain crazy," wdeguara added.

But to Silver, that is exactly Microsoft's intent.

Others see similar method to Microsoft's madness.

"The reality is that Microsoft is moving the OS toward a more service-oriented model," said Wes Miller, an analyst with Directions on Microsoft, in a Thursday telephone interview. "This reflects the fact that there are shifting sands, that Microsoft is trying to move toward one servicing model for a variety of platforms. They're trying to harmonize Windows Phone and Windows with one servicing model that works for everyone."

From Miller's perspective, Microsoft was striving for a mobile-style model for Windows that would not only rely on more frequent updates, but one with a goal of getting the bulk of users onto each new this-is-current update or version.

Other Microsoft customers joined wdeguara to criticize the forced migration, which had not been announced prior to Tuesday and which they saw as a betrayal of the 24-month rule that has given them two years from the launch of a service pack to upgrade from the original, called "RTM" in Microsoft-speak to reference "release to manufacturing."

"This is a massive shift from a patching perspective," said Julian Harper, an IT manager, in one of several messages posted to the Patchmanagement.org mailing list on the topic. "For years, we've had [two] years to plan service pack roll outs and now we're given one month. And this is on top of the fiasco that was Windows 8.1 for volume license customers."

Previously, Microsoft had said that the 24-month rule for Windows, once reserved for service packs, would apply to Windows 8 and its successors, including Windows 8.1 of October 2013, even though the latter was not labeled as a "service pack." Customers on Windows 8 RTM, which shipped in October 2012, would have until Jan. 12, 2016 to migrate to Windows 8.1. After that date, Windows 8 RTM will not be eligible for security updates and other fixes and enhancements.

"Microsoft has the most generous and transparent support policies, but everything depends on what they call the new code," said Silver. "A 'service pack' has a support policy. A 'version' has a support policy. Something with a different name, well, Microsoft can do what it wants."

Miller wasn't shocked at the complaints from enterprise IT personnel, like Harper. "It bothered me, too," Miller said. "The support lifecycle page doesn't reflect this, and it absolutely should," he continued, referring to Microsoft's support timetable for Windows 8 and Windows 8.1. "Customers need to be able to keep track of what they have to do for support."

Andrew Storms, director of DevOps at CloudPassage, a San Francisco-based cloud security firm, acknowledged the historic nature of the Windows 8.1 Update's deployment requirement.

"What was surprising to me was that there was no prior notification from Microsoft," Storms said. "But what was not so surprising was that they made this decision. The number of SKUs that they support is getting out of hand. Microsoft can only support so many products. At some point, they just have to cut it."

Storms sympathized with corporate IT administrators nervous about the rapid release pace.

"Given the environment they're in, the complaints were well justified," Storms said. Traditionally, that has been an environment where companies downloaded an update, tested it for weeks or even months, then slowly deployed it to devices.

"That's an ongoing process that's constantly in motion," said Storms of the practice. "But we know everyone needs to move to [a process] where you have to take the updates as they are. So this really calls for a new way of thinking. IT must rethink the environment that they're in."

In other words, enterprises may not like Microsoft mandating 8.1U but they'll have to learn to live with not only that, but future demands, too. "If the [software vendors] are moving faster than you can keep up with using the traditional methodology, you're going to have to just take [the updates]," Storms said.

Microsoft did not reply to questions, including why it mandated 8.1U and whether it believed the requirement is a change of its 24-month rule.


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Friday, 27 December 2013

Chromebooks' success punches Microsoft in the gut

Chromebooks' success punches Microsoft in the gut
Amazon, NPD Group trumpet sales of the bare-bones laptops in 2013 to consumers and businesses
Chromebooks had a very good year, according to retailer Amazon.com and industry analysts.

And that's bad news for Microsoft.

The pared-down laptops powered by Google's browser-based Chrome OS have surfaced this year as a threat to "Wintel," the Microsoft-Intel oligarchy that has dominated the personal-computer space for decades with Windows machines.

On Thursday, Amazon.com called out a pair of Chromebooks -- one from Samsung, the other from Acer -- as two of the three best-selling notebooks during the U.S. holiday season. The third: Asus' Transformer Book, a Windows 8.1 "2-in-1" device that transforms from a 10.1-in. tablet to a keyboard-equipped laptop.

As of late Thursday, the trio retained their lock on the top three places on Amazon's best-selling-laptop list in the order of Acer, Samsung and Asus. Another Acer Chromebook, one that sports 32GB of on-board storage space -- double the 16GB of Acer's lower-priced model -- held the No. 7 spot on the retailer's top 10.

Chromebooks' holiday success at Amazon was duplicated elsewhere during the year, according to the NPD Group, which tracked U.S. PC sales to commercial buyers such as businesses, schools, government and other organizations.

By NPD's tallies, Chromebooks accounted for 21% of all U.S. commercial notebook sales in 2013 through November, and 10% of all computers and tablets. Both shares were up massively from 2012; last year, Chromebooks accounted for an almost-invisible two-tenths of one percent of all computer and tablet sales.

Stephen Baker of NPD pointed out what others had said previously: Chromebooks have capitalized on Microsoft's stumble with Windows 8. "Tepid Windows PC sales allowed brands with a focus on alternative form factors or operating systems, like Apple and Samsung, to capture significant share of a market traditionally dominated by Windows devices," Baker said in a Monday statement.

Part of the attraction of Chromebooks is their low prices: The systems forgo high-resolution displays, rely on inexpensive graphics chipsets, include paltry amounts of RAM -- often just 2GB -- and get by with little local storage. And their operating system, Chrome OS, doesn't cost computer makers a dime.

The 11.6-in. Acer C720 Chromebook, first on Amazon's top-10 list Thursday, costs $199, while the Samsung Chromebook, at No. 2, runs $243. Amazon prices Acer's 720P Chromebook, No. 7 on the chart, at $300.

The prices were significantly lower than those for the Windows notebooks on the retailer's bestseller list. The average price of the seven Windows-powered laptops on Amazon's top 10 was $359, while the median was $349. Meanwhile, the average price of the three Chromebooks was $247 and the median was $243, representing savings of 31% and 29%, respectively.

In many ways, Chromebooks are the successors to "netbooks," the cheap, lightweight and underpowered Windows laptops that stormed into the market in 2007, peaked in 2009 as they captured about 20% of the portable PC market, then fell by the wayside in 2010 and 2011 as tablets assumed their roles and full-fledged notebooks closed in on netbook prices.

Chromebooks increasingly threaten Windows' place in the personal computer market, particularly the laptop side, whose sales dominate those of the even older desktop form factor. Stalwart Microsoft partners, including Lenovo, Hewlett-Packard and Dell, have all dipped toes into the Chromebook waters, for example.

"OEMs can't sit back and depend on Wintel anymore," said Baker in an interview earlier this month.

Microsoft has been concerned enough with Chromebooks' popularity to target the devices with attack ads in its ongoing "Scroogled" campaign, arguing that they are not legitimate laptops.

Those ads are really Microsoft's only possible response to Chromebooks, since the Redmond, Wash. company cannot do to them what it did to netbooks.

Although the first wave of netbooks were powered by Linux, Microsoft quickly shoved the open-source OS aside by extending the sales lifespan of Windows XP, then created deliberately-crippled and lower-priced "Starter" editions of Vista and Windows 7 to keep OEMs (original equipment manufacturers) on the Windows train.

But Microsoft has no browser-based OS to show Chromebook OEMs, and has no light-footprint operating system suitable for basement-priced laptops except for Windows RT, which is unsuitable for non-touch screens. And unlike Google, Microsoft can hardly afford to give away Windows.

But Microsoft's biggest problem isn't Chrome OS and the Chromebooks its ads have belittled: It's tablets. Neither Microsoft or its web of partners have found much success in that market.

Baker's data on commercial sales illustrated that better than a busload of analysts. While Windows notebooks accounted for 34% of all personal computers and tablets sold to commercial buyers in the first 11 months of 2013, that represented a 20% decline from 2012. During the same period, tablets' share climbed by one-fifth to 27%, with Apple's iPad accounting for the majority of the tablets.

"The market for personal computing devices in commercial markets continues to shift and change, said Baker. "It is no accident that we are seeing the fruits of this change in the commercial markets as business and institutional buyers exploit the flexibility inherent in the new range of choices now open to them."

But when you're at the top of the personal computing device heap -- as Microsoft was as recently as 2011 -- words like "change" and "choice" are not welcome. From the mountaintop, the only way is down.

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Friday, 4 October 2013

Microsoft dings Ballmer's bonus over Windows 8, Surface RT struggles

The penalty is equivalent to half the cost of a cup of coffee at McDonalds to the average American

Microsoft's board of directors reduced outgoing CEO Steve Ballmer's bonus for the 2013 fiscal year, citing poor performance of Windows 8 and the $900 million Surface RT write-off, according to a filing with the U.S. Securities and Exchange Commission.
Microsoft CEO Steve Ballmer
Microsoft CEO Steve Ballmer (Photo: Microsoft)

The Redmond, Wash., company's proxy statement spelled out the salaries and bonuses of several of its top executives, including Ballmer, new Chief Financial Office Amy Hood and Chief Operating Officer Kevin Turner, as well as now-departed managers such as former CFO Peter Klein and Office chief Kurt DelBene.

Microsoft paid Ballmer $697,500 in salary and awarded him a $550,000 performance bonus, for a total of $1.26 million for fiscal year 2013.

The bonus was less than Ballmer could have earned.

"Our Board of Directors approved an Incentive Plan award of $550,000 which was 79% of Mr. Ballmer's target award," stated the proxy. One hundred percent of the target would have been $696,000.

The 79% was considerably lower than Ballmer's comparable number for the 2012 fiscal year, when he was granted a bonus representing 91% of his target.

Microsoft's board cited both company wins and losses under Ballmer's stewardship, but the latter included some failures that were the root of its bonus decision.

"While the launch of Windows 8 in October 2012 resulted in over 100 million licenses sold, the challenging PC market coupled with the significant product launch costs for Windows 8 and Surface resulted in an 18% decline in Windows Division operating income," the proxy noted. "Slower than anticipated sales of Surface RT devices and the decision to reduce prices to accelerate sales resulted in a $900 million inventory charge."

Some analysts have speculated that the $900 million write-off was the proverbial straw that broke the board's back, and triggered Ballmer's ouster. In an interview with the Wall Street Journal last week, however, John Thompson, the lead independent director and the head of the committee in charge of the search for a new chief executive, backed Ballmer's explanation for his sudden retirement: He did not want to remain in the job through the long course correction to a "devices-and-services" strategy.

The proxy statement's commentary on the strategy change, as well as the corporate reorganization announced in July, was Ballmer-neutral. "The company continued to make progress in its devices and services strategy," the filing read.

Last year, Ballmer's bonus was pegged at 91% of his target as the board ticked off several issues during that fiscal year, including a 3% decline in revenue for the Windows and Windows Live Division, and a fiasco where Microsoft failed to offer a browser choice screen to Windows 7 customers in the European Union.

Ballmer's 2013 bonus of 79% was an even lower percentage than that of Steven Sinofsky last year. Then, the former Windows chief -- who was ousted in November 2012 -- received 90% of his target award, even though he, like Ballmer, was cited as responsible for the EU browser choice screw-up.

Other top-tier executives received 100% or more of their target bonuses for 2013.

Kevin Turner, the COO, received a cash award of $2.1 million, or 100% of his target, and Satya Nadella, who now leads the Cloud and Enterprise group, received $1.6 million, or 105% of his target. Amy Hood, the new CFO, was handed $457,443, 100% of her target incentive, and as part of her promotion, received a stock award in May of 103,413 shares that will vest over the next three years. At Thursday's closing price, those shares had a paper value of $3.5 million.

In total compensation for the 2013 fiscal year, Turner remained Microsoft's highest-paid executive at $10.4 million, down slightly from 2012's $10.7 million.

Eight of the company's top executives, including Turner and Hood, were handed additional stock grants Sept. 19, the same day Microsoft announced a retention bonus designed to keep upper management from jumping ship during the CEO search. Turner, for example, received grants currently worth $20.3 million. Hood's award was valued at Thursday's closing bell at nearly $3.9 million.

No one should cry for Ballmer's lowered bonus: According to the proxy, he controls 4% of the company, with stock holdings worth $11.3 billion at Thursday's price. Only co-founder and chairman Bill Gates holds more: 4.5%, or $12.8 billion.

The $146,000 that Ballmer did not get in his 2013 bonus is literally pocket change to the billionaire. The amount represented 0.0013% of Ballmer's Microsoft holdings, and an even smaller percentage of his total wealth. To put that into perspective, 0.0013% of $42,693, the U.S. per capita personal income in 2012, is 55 cents, or just over half the price of a coffee from McDonalds "Dollar Menu."

Ballmer and Gates are both on the directors slate for re-election next month when Microsoft hosts its shareholders meeting.

According to a report by the Reuters new service earlier this week, some of Microsoft's biggest investors have urged the board to push Gates out of the chairman's role because they are concerned he will block the board from making drastic changes and handcuff the new CEO to the devices-and-services strategy, which they question. Gates is also on the special search committee tasked by the board to recommend Ballmer's replacement.

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