Microsoft Still Has Work to Do

http://www.theglobeandmail.com/news/technology/tech-news/microsoft-snaps-up-skype-to-keep-rivals-at-bay/article2016439/

Microsoft has finally secured its acquisition of the web-based, video and audio calling giant Skype. But it wasn’t cheap. Even though Microsoft purchased the company for 8.5 billion, almost three times its value less than two years ago, it ensures that Google and Facebook did not. Even though they paid a hefty price, Microsoft feels that they are acquiring a company with services that are core to their mission and technological direction. They will now begin the difficult task of incorporating Skype’s services into all of their

http://www.brothersoft.com/skype-51174.html

products. Hopefully the use of Skype’s technology will increase the appeal for Window’s powered smart phones, which have almost no market presence. The benefit of Skype is that their audio and video calling service can be used with almost any type of platform or device. This will now decrease the gap between companies like Google and Apple, who have successfully created technology that is dominating the smart phone and tablet industries. Microsoft finally has a way of differentiating themselves from the competition. If they can successfully integrate this technology into their products it could be exactly what they need to gain the competitive advantage they have been lacking for the last decade.

For the Kids… But Mostly for Profit

http://www.thestar.com/business/companies/article/1065082–montreal-firm-launches-world-s-cheapest-android-tablet

There seems to be a new player in the tablet market, but instead of competing head to head with other major tablets on the basis of quality (e.g. the iPad) they are competing on price. 100,000 of these “Aakash” tablets have been purchased by the Indian government from the Montreal-based firm DataWind. The government will be heavily subsidizing these tablets, purchasing them for forty-eight dollars from Datawind, and then reselling them to students for twenty-five dollars. This move by the Indian government is in an effort to make mobile internet available to the masses.

http://www.thestar.com/business/companies/article/1065082--montreal-firm-launches-world-s-cheapest-android-tablet

This situation is eerily similar to Tata’s strategy to bring the lowest priced car in the world to India, which turned out to be a disaster because of the minimal quality the car possessed. I do feel however, that this deal seems to have a lot of promise. At twenty-five dollars, students would be receiving an enormously efficient machine that will allow them to stream HD video, read Ebooks and run office-suite applications. The deal also gets much sweeter for DataWind, as there are over 80 million students in grades nine to twelve in India and two to three million students entering University each year. Talk about an emerging market.

Microsoft and RIM: The New Batman and Robin?

http://www.theglobeandmail.com/globe-investor/investment-ideas/fabrice-taylor/rim-like-motorola-needs-a-giant-partner/article2131662/

With the Apple acquisition of Motorola, it looks like Microsoft could possibly follow suit by purchasing a much smaller company for it’s assets as well. Which company could that be? None other than Research in Motion, who have seen their stock prices drop significantly from a lack of investor confidence and shift in consumer preferences towards Apple products.

Currently Microsoft has almost no presence in the tablet or smartphone market. RIM has a loyal consumer base of more than 60 million users. They also have tablet technology which could provide Microsoft a huge opportunity as the tides turn away from laptops and to tablets and smart phones. It is imperative that Microsoft somehow makes a move into these two very important markets. Windows and Office are their main profit earners and as tablet purchases begin to chip away from laptop sales, Microsoft’s value will begin to dwindle if they do not enter the market. For Microsoft this is the perfect opportunity to begin to steal market share back from Apple, who over the last decade has completely

http://www.thetelecomblog.com/2011/05/04/rim-strikes-bing-agreement-with-microsoft/

overshadowed them in innovation. In the enterprise world where Microsoft is very strong, a business friendly tablet coupled with Windows software could be what Microsoft needs to climb back in the innovation race with Apple.