From: Barbara Ethington
Sent: Monday, January 27, 1997 3:18 PM
To: OEM Personal Sales Communication
Subject: FW: joachimk Value Leadership Presentaton
The presentation is also available on SPIDER, located on the Events
page, under Presentations from Past OEM Training/Events. The direct link
is: file:\\webn\oemsales\oemsales\dioen\value.ppt
It is in PowerPoint 97 formal.
Barbara
----Original Message----
From: Glna Fleckenstein
Senk Monday, January 27, 1997 12:15 PM
To: OEM Personnel Sales Communication
Subject: Joachimk Value Leadership Presention
Attached are the slides from the November DOEM meeting where Joachim
gave his Value Leadership presentation. We have included text under each
slide so please view and print off in the "Notes Pages" format.
Thanks,-Gina
OEM Sales Organization Concept
for the Year 2000
Joachim Kempin
Sr. Vice President
Microsoft, OEM Sales
.. I have seen a lot of competitive threats and I have been part of a
team who has overcome them all. However, I have to admit ’they are
really going after us’ on all fronts these days and living under fire is
not always fun but it keeps you alert.
..
They Are Really Going After Us...
Competitive Business Threats:
* NC/TCO/PC image
* Browser = OS
* New application programming model
(Java)
* Erosion of application pricing/distribution model
* ¯ Windows experience erosion
.. True threats for our business model arise as usual from potential
computing paradigm shifts, which move the action away from the Windows
franchise. The whole hype about the net computer, the total cost of
ownership initiative and the negative image the PC has of being
complicated, hard to use, very costly to own, needs to be seen in the
same context.
It demonstrates that the industry hasn’t done it’s job in delivering the
right value to a changing customer base. We predicted a long time ago
that the browser was just a start to attack our OS franchise. And NSCP,
with it’s recent announcements, is making this very clear to the world.
We will face sudden death if we allow them to change our identity,
meaning the user interface or the APIs, which endusers and ISVs are used to.
.. And this is where Java comes in. A totally over hyped programming
language which calls for object embedding, therefore less functionality
for a core product and the ability to run add-one as needed on every
computing platform as long as an interpreter/compiler is present at
runtime. There is a lot of dejavue there, but the fact is, we need to
lead a new APPS-model to find a better balance between functionality and
user, needs.
When you combine this with the huge price erosion of the application
pricing model, concern should set it. You see, Corel is selling to
Packard Bell a copy for under one dollar and taking on the support
burden. Now that’s definitely a great model to have every time the user
calls they probably lose twenty bucks and they believe that through the
sales of future upgrades, where they actually, share the revenue with
Packard-Bell, they can make up for it later. I hope the model bankrupts
them. But in the meantime, they’ll definitely get a lot of press
coverage and we might lose share
The last issue listed - the Windows Experience erosions, does not need
additional comments and I hope by Q2 CY97, the enduser can finally
experience the OS as it was originally intended and use it more safely.
This crisis means customers are listening more to competitors than to us.
Should we all panic and be paranoid about it? Maybe a little bit. If’ we
are too paranoid and if we panic too much, we might not be able to think
clearly. But there definitely seems to be some kind of a crisis. What
this really means is that customers are listening more to our
competitors than to us.
They’re saying, "let’s keep Microsoft at arms length and listen to the
other side and try to find out if they have something to say which
benefits us and which we can follow. We have followed Microsoft for such
a long time, but we have never prospered as mt~ch as MS did." I think
there’s some real dangerous thinking developing here, and from that
point of view I call this a big crisis ..
http://edge-op.org/iowa/www.iowaconsumercase.org/011607/2000/PX02637.pdf
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