[Date Prev][Date Next][Thread Prev][Thread Next]
Author IndexDate IndexThread Index

they are really going after us ..

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.


----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.


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

* 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 ..


[Date Prev][Date Next][Thread Prev][Thread Next]
Author IndexDate IndexThread Index