April 26, 2024

Solid Sales, but Growing Grumbles, for Windows 8

Microsoft revealed Thursday that it had sold 100 million licenses for its flagship software since it was released six months ago. That was roughly the same number of licenses it sold for the well-received, previous version of the system, Windows 7, in about the same time period.

Yet Windows 8 has struck a sour note with parts of the computer-buying public. With Windows 8, Microsoft replaced the operating system’s traditional appearance with an interface that looks like a screen of tiles. The change left some customers cold, and though they could switch between the old and te new look, it apparently was not clear enough to some of them how to do it.

In an interview, Tami Reller, chief marketing officer and chief financial officer of Microsoft’s Windows division, said an update to the software, code-named Windows Blue, was coming later this year. It will include modifications that make the software easier to figure out, especially on computers without touch screens.

“The learning curve is real and needs to be addressed,” Ms. Reller said.

There was another problem. The tile look was meant for people using touch-screen computers, and there are not many of those devices running Windows yet available. IDC researchers estimate Microsoft sold only about 900,000 of its Surface tablets during the first quarter of the year, about 1.8 percent of the overall market. Other Windows tablet makers like Acer accounted for additional sales.

By comparison, Apple, with iPad sales of 19.5 million, accounted for 39.6 percent.

Much to the disappointment of PC makers like Dell and Hewlett-Packard, Windows 8 has not helped fend off competition from devices like the iPad. Global shipments of PCs fell 13.9 percent to 76.3 million units during the first quarter of the year when compared with the same period a year ago — the worst showing in two decades, according to IDC. Tablet shipments grew 142.4 percent to 49.2 million units in that same period, IDC estimates.

Windows 8 was supposed to bridge tablets and traditional personal computers with software made for touch screens that had the option to switch to the desktop interface whenever someone wanted to create a PowerPoint slide or work on an Excel spreadsheet using a keyboard and mouse.

Microsoft envisioned a bounty of new Windows 8 touch-screen devices, including laptops with displays that also respond to finger gestures.

But that has not panned out. The majority of personal computers on store shelves have been more old-fashioned keyboard-based systems.

“If you’re not going to provide the proper environment for people to understand how to use the system, you risk losing a lot of people who used the system for a decade,” said David Daoud, an analyst at IDC.

Ms. Reller said Microsoft would reveal more about the Windows 8 changes in the coming weeks, but she declined to confirm they would include an option to bypass the new tile interface at start-up, as recent reports on technology news sites have said.

Ms. Reller added that Microsoft had already trained its retail partners to remind customers that the old desktop interface still exists in Windows 8.

“We started talking about the desktop as an app,” she said. “But in reality, for PC buyers, the desktop is important.”

Microsoft’s own research on Windows 8 usage patterns showed customer satisfaction with the system was on par with that of Windows 7, if the users being analyzed have tablets or other systems with touch screens, Ms. Reller said. People with conventional PCs are not as happy.

“We need to help them learn faster,” she said.

Joshua Blood, an audio engineer in Hudson, Mass., put Windows 8 on one of his existing computers, but took it off after a few days, deciding that the software only made sense if he had a touch-screen machine. “I can do absolutely everything I need to do in Windows 7, and it’s a nice-looking O.S.,” Mr. Blood said.

While the 100 million licenses for Windows 8 sounds impressive, that figure does not indicate how many people are actually using the new operating system. That is because a significant portion of Microsoft’s Windows sales occur through multiyear contracts with business customers, who are allowed to pick which version of the operating system they run on their computers.

So while business customers who signed such deals since Windows 8 came out are counted among the licenses sold, many may have downgraded to Windows 7. Al Gillen, an IDC analyst, estimates that about 40 percent of Microsoft’s Windows sales are to customers with such downgrade rights.

Mr. Gillen said such a pattern among business customers, who tend to adopt new software cautiously, was common when new versions of Windows are released.

Article source: http://www.nytimes.com/2013/05/08/technology/solid-sales-but-growing-grumbles-for-windows-8.html?partner=rss&emc=rss

Corner Office: Alan Trefler: Your Opinions Are Respected (and Required)

Q. Do you remember the first time you were somebody’s boss?

A. If we go way back, it was when I was working with my dad in his business. When he came over from Europe at the end of World War II, he established the family business, Trefler Sons Antique Restoring.

Sometimes he would give me interesting assignments that would involve trying to coordinate people, all of whom were older and more experienced than I was. So I didn’t really have the authority, and I really didn’t have the right level of experience, but I had a lot of enthusiasm. I found that with the right level of enthusiasm, you could actually get other folks to follow your lead or, better yet, do some things themselves that they knew how to do better than you, even without having to push them.

Q. What about after your first formal management role?

A. I had just graduated from college and was in a situation where I walked into a job as a project manager, despite being grossly underqualified for the role.

I was a pretty good software engineer, and I managed to trade on that to actually get a leadership job running a small team. It was a project for Citibank. I spent my first day reading the documentation about the project, and two days later, my boss was called off to another job and I was on my own. And the project, the day I started it, was already six months late.

I did survive it and actually learned a tremendous amount by not having blown myself up in the course of doing that. But it was a pretty traumatic experience. I’ve tried to make sure that when we bring people on at our company, we never subject them to anything remotely like that.

Q. So what do you do?

A. We invest a lot in trying to put people through a learning curve. So we have very extensive training in just about all the jobs in the company, to get people feeling like they have their feet under them before they’re thrown in, particularly before they’re thrown in with customers. The most dangerous thing about that first experience for me was that if I had made a bad impression with the client, you could almost never undo that. You really need to make sure that the initial impression is one that shows you’re capable.

Q. And in terms of leading that first team, what was your approach?

A. One of the things I’ve always believed is that content matters a lot. So what I did was immerse myself in what we were trying to achieve. I spent a couple of days sitting with the customer and watching and understanding their business at a pretty deep level.

And then I dived into the technical realm. And I think I was able to convince my teammates that I wasn’t just going to be the next guy who was going to get blown up leading them. Coming into something that’s already in a little bit of trouble, people are wondering what your survival rate will be.

It was, frankly, a bitter experience to be so excited about starting a new job and working with a Wall Street bank, and then to discover that you’re sort of up there on the high wire, really exposed and without the right skill set.

Q. Can you elaborate on how “content matters” and how it plays into your philosophy of leadership and management?

A. When people ask what the company is like, I say the culture we try to encourage is a “thought leadership” culture. You hear people throw around that phrase a lot, but to us, thought leadership means some very specific things. We focus on each of the words. So, you have a thought when you have an opinion about something. You actually need to have an opinion that is hopefully a unique or complementary opinion to the opinion of others. As William Wrigley Jr. said, “When two men in business always agree, one of them is unnecessary.”

I think having an opinion is important, but it’s not enough to have an opinion — it has to be an informed opinion. So content really matters, and you need to understand the context of what you’re trying to have an opinion about.

And then the second part of the phrase “thought leadership” involves the concept of, what does it mean to be a leader? And ultimately, you’re only a leader if somebody’s willing to follow you. And the characteristic about leadership that we focus on in that context is persuasiveness.

Article source: http://www.nytimes.com/2011/08/07/business/alan-trefler-of-pegasystems-on-valuing-employees-opinions.html?partner=rss&emc=rss