Why Surface is not a MS Business
Charlie Kindel:
Surface is a North star product for the Windows business. It is not a “Microsoft business” (Microsoft businesses generate $5B+ a year in PROFIT). The Windows business makes $11.4B in PROFIT every year. This profit margin is under pressure from the price of a Windows license being forced down. Surface makes this worse and provides no path to recouping that profit via other means.
Microsoft may find itself stuck in step 2 of the old:
Step 1: Create product
Step 2: ???
Step 3: Profit
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bitshift reblogged this from parislemon and added:
It’s very early to be making success predictions for the Surface. However, the niche that Microsoft should be targeting...
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