Microsoft: Me-Too, Me-Too
July 22, 2008
Matt Asay’s essay “Microsoft Copies Google, Salesforce, and Red Hat in New Partner Initiative” reveals another piece of Microsoft’s “moon shot” to catch Google. You can read the full text here. The premise of the article is that after decades of honing a partner strategy, Microsoft is proving that it is not too old to learn. The notion is that Microsoft is borrowing tactics from Google, Red Hat, and Salesforce.com. For me, the most important statement in the essay was a reference to a comment in The Motley Fool:
Although partners will get a 12% cut of the first year’s subscription, and 6% thereafter, they will now be competing head-to-head against Microsoft for delivering value-added services. This marks a dramatic departure from the way Microsoft has worked with partners in the past.
Is Microsoft now competing with its own partners no matter what size the account? My hunch is that Microsoft is like the US when it first tried to match the Sputnik. The best way to do this is with a dramatic “moon shot” type program. These initiatives toss out the playbook. Engineers and business mavens start with a clean sheet of paper.
Based on my narrow angle of observation from the hollow in rural Kentucky, I see this strategy playing out in SharePoint search. First, the “free” version competes with low-cost providers of search technology. Second, larger Certified Gold Partners find themselves looking at “baked in” search in industrial strength versions of SharePoint. Third, Microsoft bought Fast Search & Technology in order to have an answer for SharePoint customers who wanted to index larger document sets, a feat which SharePoint struggles to accomplish in a snappy, pleasing way. Finally, internal search initiatives at Microsoft are trying to figure out what the future holds.
If catching Google requires the sacrifice of a handful or Airbus full of partners, well, that is an eventuality warranting some consideration. In my opinion, the Certified Gold Partners with search technology have little choice but ramp up their innovation and marketing efforts. This means that Microsoft may face some additional challenges in the enterprise. Google has an abundance of wizards, but a number of the SharePoint snap in search solution vendors have a few budding smarties too.
Catching Google may now be harder. Microsoft will have to chase down Googzilla while dealing with aggrieved former partners. Agree? Disagree? Let me know.
Stephen Arnold, July 22, 2008
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