WHAT IF? Microsoft & Skype

There are many people second-guessing the Microsoft acquisition of Skype. And for good reason. $8.5 billion is Microsoft's largest acquisition ever, and it was for a service which largely duplicates the existing MS Messenger application. The only two features that Skype has which MSN does not are: (1) the ability for telephones to call into it, and (2) the ability to call out to telephones.

And I am wondering if that is EXACTLY what MS wanted to buy.

A little while ago, Google rolled out Google Voice as "the last phone number you'll ever need". The idea was that you could give people your Google Voice number, and it would "bounce" the calls to whatever other phone you chose. It was paired with a clever speech-recognition system which was able to transcribe voice mails and send them to you as text messages and/or e-mails. The whole thing is quite clever, but it is ultimately a hack looking to work around the existing phone systems.

What if, rather than just adding Skype to XBox, Microsoft wants to change Windows Phone such that all calls thru it are done via VOIP, routed thru Microsoft servers. If Microsoft "owns" your phone number, then all calls are over data connections and it doesn't matter if you are calling on a Verizon phone, a Sprint phone, an AT&T phone, or even over your home Wifi or your XBox's ethernet connection. It could provide true phone number portability - perhaps better regarded as phone number "agnosticism" (so long as you stay with a Windows Phone). You could even, theoretically, have a "family phone" where all members of the family have their cell phones/laptops/XBoxes/Zunes ring when anyone calls their Microsoft phone number.

This would truly be thinking outside the box, and could free the customer from the control of the cellular companies. Of course, I doubt the cell phone companies would be too fond of that idea.

Microsoft to buy Skype?

According to the Wall Street Journal, Microsoft is set to acquire VOIP company Skype for almost $8 billion. This would rank as the largest acquisition in the history of Microsoft, bringing to mind their failed bid for Yahoo three years ago.

It is unclear to me what, exactly, Microsoft would be gaining with this purchase. Skype is a great service for video-conferencing and internet telephony, but it is already having problems with profitability and security. And these core technologies are widely available and cheap to deploy without buying the core technology. eBay purchased Skype in 2005, and has found little to do with it since then. Then again, they have also invested relatively little, since then.

Perhaps this will give Microsoft something to compete with Apple's FaceTime and Google's GoogleTalk. Or maybe it is just a landgrab for Skype's millions of users, who can easily and quickly switch providers in a heartbeat.

Windows Phone permanenty modifies MicroSD Cards

Microsoft was known in the past for its attempt to "lock in" users to their products with proprietary file formats and other tricks, that make it difficult for users to go elsewhere. But for the most part, they have changed their tune in recent years, for example changing to XML-based versions of Microsoft Office documents which are easily reabable by OpenOffice.Org and other competitors.

But now, there is news that apparently Windows Phones - lacking internal Flash storage like the iPhone - is permanently modifying any MicroSD cards used in them so that they can never be formatted or reused by any other device.

Samsung have documented the feature for the Focus, saying that inserting a MicroSD card into a Windows Phone can be considered a “permanent modification” adding ”it will no longer be readable or writable on any other devices such as computers, cameras, printers, and so on”.

Microsoft too has warned of the permanent change, though it’s not entirely clear exactly what the OS is doing to the card.

So, if you are considering a Windows Phone, please be aware any SD card purchases should be considered a one-time expense that can't be recouped by reuse. It's a very strange way for Microsoft to have gone.

Why Microsoft killed the T-Mobile Sidekick

Prior to the iPhone, the best SmartPhone for someone who didn't need Outlook access was arguably the T-Mobile Sidekick. It provided excellent cloud capabilities (all contacts, calendars, photos, etc. were synced auto-magically) back when "the Cloud" was still conceptual to Microsoft and Apple. It was a good phone with strong battery and antenna. It had an excellent screen, a unique design, and an excellent hard keyboard. And it had the cheapest unlimited data plan out there, appealing to low-end users. Then, it was bought by Microsoft who promptly let the servers die, losing customer data, and then turned it into the Kin. Which they promptly killed, in favor of Windows 7 phones.

Why did Microsoft buy such a valuable piece of technology and then abandon it? Insiders claim it was a combination of factors: (1) the psychotic obsession with making every operating system a branch of Windows (pushed by the release by 18 months), (2) the internecine squabbling within the Microsoft mobile division amongst managers, and (3) a complete lack of actual vision for what the behemoth wants to produce for a phone.

Overall, it appears that Microsoft simply never saw the Apple/Google SmartPhone revolution coming. So, every move in the last 3 years - Windows Mobile 6.X, the Windows Phone 7 announcements, the Sidekick/Hiptop/Kin moves, the Microsoft Courier project - are all signs of panic as they try to figure out how to proceed and who to copy. Expect more casualties in the months ahead.

Rest in Peace, Sidekick. You will be missed.

One step ahead

Sidekick Debacle is now a Class Action Lawsuit

Many people ask me what I have against Microsoft. After all, they gave the world MS DOS, Windows 95, Excel, and Word, right? Yes, but for every great success they have a parallel case of taking something great, and tearing it down for no apparent reason. Newest example: The T-Mobile Sidekick.

For those who may not remember, if you were a happy SmartPhone user in the days before the iPhone - and were not a Crackberry addict - odds are you used a T-Mobile Sidekick (a.k.a. Danger HipTop). This device was a beautifully-designed (albeit somewhat chunky) phone built from the ground up for e-mail, web browsing, and instant messaging. At a time when people were debating how many characters should be displayed on a black-and-white text-only "mobile website", the Sidekick was rendering CNN in full-color with graphics. And all data synced effortlessly with online servers from which users could view all the info as easily as MobileMe is today, or could download data to Outlook. I owned a Sidekick II and III, and loved them both as they kept me connected places that broadband and even dial-up could not reach. I only left the line when the iPhone came out.

This past year, Microsoft - in an attempt to salvage its failing Windows Mobile/Windows Phone/Windows CE line of phones - bought out Danger and took ownership of the whole system which they transformed into "Project Pink". This past week, Microsoft attempted to do a basic upgrade of their storage system for the online data services which failed catastrophically. And apparently, they had failed to do regular backups, so there was no fallback position. Critical customer data was lost, and T-Mobile was forced to advise Sidekick owners "not to turn off your phones" lest the data be lost forever. This one event has likely doomed the Sidekick and Project Pink forever, and cast a shadow over "Cloud Computing" for the future.

Now, T-Mobile is being sued for the data loss in to separate class-action lawsuits. Look for this to quickly be followed up by lawsuits by T-Mobile against Mocrosoft, and perhaps by Microsoft against the people who sold them Danger. This is going to be a messy blame game for all involved.

Rest in Peace, Sidekick. You'll be sorely missed.

UPDATE 2:45 PM: Microsoft now claims all data has been recovered. Here's hoping they are right.

Microsoft banned from selling Word!

The great Empire of Microsoft stands on two pillars: Windows Operating System and Microsoft Office. These are the two products which enable them to produce everything else - often at a loss. Some might argue that the XBox has become a third pillar, but most consoles are still sold at a loss.

Now, the Empire is threatened as a Texas judge has ordered Microsoft to stop selling Microsoft Word - an essential part of Microsoft Office - within 60 days over an alleged patent infringement in the handling of XML-based files. This is akin to Ford being banned from selling trucks or Sony from selling CDs and DVDs.

Most commentators believe Microsoft will be able to appeal and overturn the order before it becomes effective. But this may be the most direct threat to the software giant since the European anti-trust cases.

Yeah, this is me

Microsoft knows how to make a bad situation worse

Microsoft recently laid off 1,400 employees after years of faithful service. Such is life in the current economy, some might say. But the software giant showed its usual tin ear for public relations afterward by asking laid off employees to pay back some of their severance check. If an Executive does not put the kibosh on this Monday, it is proof that MS no longer has any interest in having a positive public image.

"An inadvertent administrative error occurred that resulted in an overpayment in severance pay by Microsoft," the letter states. "We ask that you repay the overpayment and sincerely apologize for any inconvenience to you."
A Microsoft spokesperson confirmed that the authenticity of a letter posted on TechCrunch, but declined further comment, saying it was "a private matter between the company and the affected people."
The company declined to specify how many of these letters were sent out, and it's unknown how much the overpayments total, but it did indicate that some laid off employees were also undercompensated.

All 30 GB Zunes Froze Today?

This seems unbelievable, but I am reading about it everywhere from multiple sources. But to be fair, I have not confirmed it with anyone I know who owns a Zune (Yes, I do know one guy). It is being reported that this morning, all 30 GB Zunes froze up and will not reboot or reset. There are isolated reports of successful unfreeze after letting the battery drain completely. Microsoft has yet to post anything about it on their own pages.

Wow, I can only imagine the apocalypse if this happened with the iPod or iPhone. How many people will be sitting in Times Square grumbling because their Zune won't play? Does this mean the end for Microsoft's attempt to invade the musical marketplace?

Microsoft to abandon Gates/Seinfeld ads

It appears Microsoft has come to its senses and is abandoning the line of ads featuring Jerry Seinfeld and Bill Gates. Maybe this time around they can remember to actually make ads that tell you something about the product.

Today is Bill Gate's last day at Microsoft

Apparently, today is "Gold Watch Day" for the King of Windows. After this, he moves onto full-time work at his charitable foundation, and the sidelines to watch and see how Microsoft survives without his guiding hand. Windows Vista does not bode well for a Steve Balmer-directed MS, but then again a power vacuum at the top gives new geniuses a chance to jump in and get their ideas heard.

Between this and the recent speculation over Steve Jobs's health, it is time to start wondering what the "Next Generation" of technology CEOs will look like. Will they be in new companies like Facebook and Digg, or will be see second-generation "princes and princesses" stepping into the shoes of these giants? It is due to be a bumpy ride on Wall Street as we jump into this unknown territory.

Microsoft to Yahoo: "No mas!"

In a surprising move, Microsoft has called off the dogs and will no longer pursue a Yahoo acquisition by any means. It appears that Microsoft was prepared to go hostile until Yahoo's board made it clear that they were willing to commit corporate suicide in order to prevent such a takeover by outsourcing its search-ads business to Google - essentially dumping the talent that Micosoft was hoping to acquire by the takeover.

There is a lot of speculation out there for what this means for the I/T world: Steve Balmer being fired as a failed CEO, Yahoo's stock suffering a fatal plunge in a "Black Monday" selloff, Google announcing formal acquisition of Yahoo, antitrust charges being filed against Google, etc. We'll have to wait and see what reality brings.

But as a Yahoo stockholder, I am glad to know I will not soon be a Microsoft shareholder.

Windows 7 in 2009?

So says Bill Gates. Since I know my employer has no plans to upgrade to Vista - and everyone I know who has upgraded to Vista has regretted it, bar none - this is probably Microsoft's attempt to wipe it off the map as another Windows ME-style debacle.

XBox360 Failure Rates over 16%

The company that runs "extended warranty" services for Microsoft has revealed that the failure rate for XBox 360 is over 16%. Compare that to 2% for Playstation 3 and the Nintendo Wii. One must wonder how users put up with that kind of horrible service, even though it is familiar to anyone who has worked with Windows. I believe our own failure rate here on Mod-Blog reflects that as well, as I know at least one Mod-Blogger has gotten the red-circle-of-death.

Is this how Microsoft plans to enforce an upgrade cycle?

Microsoft to buy Danger (Maker of T-Mobile Sidekick)

In an apparent attempt to end the iPhone's dominance over Windows Mobile, Microsoft has announced they will be buying out Danger the maker of the Sidekick line of phones. Long-time Mod-Bloggers are aware that once upon a time I was a HUGE fan of the Sidekick devices, which were great for doing e-mail and text messaging. However, when the iPhone appeared, I quickly made the switch.

Honestly, this may be good for Danger, whose phones were being quickly marginalized by the growing smartphone market. Their phones were always popular with teens, but never figured out how to sell to adults. If they can marry Microsoft's business savvy with the Sidekick form factor and web-savvy nature, it could work.

REMEMBER: If Microsoft buys Yahoo, they own Flickr, too

I am a huge fan and power user of Flickr, a photo site which is focussed on encouraging users to share and view each others photos. It is great because it allows posting of any of your own photos on any of your own websites, and has a huge array of partners to make better use of the photos. They also expose an API to allow other websites to share their data and produce interesting applications and mashups. Last year, they were acquired by Yahoo, who pretty much decided to not change anything about Flickr, other than integrating the usernames with Yahoo identities.

Now, Microsoft has made an offer to acquire Yahoo and by doing so they would end up owning Flickr as well. And while Flickr is famous for sharing and openness, Microsoft is famous for HATING sharing and openness. As such, a rebellion is forming among Flickr power users and many are threatening to take their business elsewhere. If you are a FLickr user, I STRONGLY recommend you consider using their QOOP service now to get backup disks, to ensure you do not lose control of your own photos.

To be fair, Microsoft would be CRAZY to change much about Flickr. It would invalidate the reason for the acquisition. The problem is, you can NEVER be sure Microsoft won't be crazy. Backup disks provide insurance. OR you may want to consider one of their competitors which allow automatic import of Flickr libraries.

Patent To Interpret Brain Waves

My power came back on about 6 hours ago, but I haven't seen anything to post today. Instead, I'll dig up an older article from my archive.

Slashdot had up a summary and some links about a patent that Microsoft filed to use and interpret EEG to read your brain. The problem with reading EEGs is that blinking can mess up the results that they want. The plan is to use it to improve their user interface.

Interesting stuff, though I have no interest in having Microsoft read my brain.

Online Health Records

Microsoft has announced that they want to host your medical records. So does Google and other companies. Kaiser Permanente has had ads on the radio around here that you can e-mail your doctor and get test results online. My wife and I shop online as well as use online banking, but this worries me. I wasn't worried about the Kaiser Permanente system when I heard about it, but that may have been that it's just for their hospitals, doctors, etc. The thought of having multiple health care professionals putting all of my information into one central database just makes me worried. Perhaps it's because it's Microsoft. Maybe I'm just paranoid. On the other hand, it'd be nice to have up to date records at any time. Would you trust a company to store you medical history?

Word Document Gives Hackers Access to State Department

This seems amazing to me and yet it shouldn't surprise me with all of the extra features and integration with its other products that Microsoft includes in Office. Apparently, a state department employee opened up a Word document they got in e-mail and it leaked information to hackers.