With Microsoft announcing hosted services to reel in small businesses, Rick Segal and Robert Scoble had posted how start ups view Microsoft compared to Google and open source alternatives. Scoble has 12 reasons why start ups don’t use MS products and they vary from licensing costs, security, and basic technology issues.
One interesting reason is that Microsoft doesn’t care about small businesses. How many GMs or Exxons are there? Microsoft makes a lot of money off large and medium-sized businesses, but have they been ignoring the mom and pop stores? There is some validity for this concern, since this is what hosted servies is supposed to deal with for Microsoft. Rob Helm, director of research at Directions on Microsoft, says Microsoft “is looking for ways to go after small businesses, the kind of customers companies like Salesforce.com are going after.”
Segal has an interesting observation:
Good vs. Evil is an overrated point. Most of the developers I spoke to said, they believe for a fact that Google is just as “greedy” as Microsoft only Google appears, today, willing to share more of the pie then Microsoft.
Wow. Its pretty surprising that most developers don’t buy Google’s “Don’t Be Evil” philosophy, especially since it was important enough to put in their IPO SEC filings and considering the fact that they are the marquee Internet name right now. Apparently, I need to read Google’s licensing agreements. Sure, Google Desktop is a potential privacy nightmare and the Web Accelerator is going to screw some sites over, but thinking Google is just as greedy as Microsoft? Maybe I’m too naive. But it doesn’t matter really, because develoepers would still rather work with Google since they are willing to share a bigger piece of the revenue pie.
With Microsoft getting into the game, who will it impact? From a CNet article about their hosted services:
The new products won’t replace the company’s ubiquitous operating system or productivity suite. “They are not required to use Windows or Office,” Gates said.
Gates said that Windows Live is a set of Internet-based personal services that is primarily supported by advertising, but separate from the operating system itself. Office Live, Gates said, will have both ad-based and subscription versions that augment the popular desktop productivity suite.
“This advertising model has emerged as a very important thing,” Gates said.
Isn’t this stategy going to cannabalize the VARs? Gates says the services are built on open APIs, but entrepreneurs are still going to looking over their shoulders. This sounds like a good way for Microsoft to develop new revenue streams, not attract more developers.