the Future of Work

Forrester, Microsoft SharePoint
and Web 2.0

by Danny Kolke
published on: 02/15/08 10:07:14 AM

Someone forwarded me this article recently and it hit me that there are those that are thought to be the savviest in the software industry that still don't get what Web 2.0 is about. Being that we are a diamond sponsor of the upcoming Web 2.0 Expo in San Francisco this April, I thought I'd chime in on this one.

"Microsoft SharePoint will 'steamroll' Web 2.0 market, plus eight more predictions from Forrester"

Click here for the story

At first glance, I thought this article was about Microsoft vs. Web 2.0 - but apparently Microsoft SharePoint is the Web platform. This article seems to point to Forrester research predicting that Microsoft will do well in this market. 

Additionally, it is interesting to me to hear and/or think of Microsoft as "steamrolling" the Web 2.0 market. Because of the sheer numbers of customers that Microsoft has, merely announcing functionality that claims to be Web 2.0 gives them potential adoption that newer companies will envy. Does this really make them Web 2.0? Will they really "steamroll?" Or is this market shift bigger?

I find it timely that this article came out just before the news that Microsoft is attempting to buy Yahoo, apparently threatened by Google's rising status. While much of the press focused on the search and advertising space, I did find some articles talking about Yahoo's moves in the Web-app space, especially Zimbra, an open source mail, calendar and productivity suite that is a nice alternative to the Microsoft family of products.

So is this market shift bigger?

I believe there is a huge shift that is just beginning involving applications for business and the Web as a platform. Because of the nature of distribution and the Web, conventional software methodologies for developing and distributing are fast becoming obsolete. From basic economics of development and distribution to features in the apps themselves, every value-based component of conventional solutions is being shaken up. And, with the vision to enable more new technologies and bring these technologies together in ways that enable better user adoption -- look out.

What do I think about Microsoft?

I think Microsoft sees the trending in Web app adoption disconcerting and they are moving quickly to devise new strategies to lock in their customer bases before they abandon ship. A vast population of existing Microsoft users will use the newer Microsoft devised solutions because they justify it as being more familiar or less scary. These numbers are big, and on the surface will look like Microsoft is doing great. 

But the challengers are growing in large numbers and innovating at a pace that Microsoft won't be able to compete with. The net result is that SharePoint is sounding like a "me-too" technology and that's the game Microsoft is playing now. 

Regardless of all that, I believe the biggest challenge that Microsoft faces is the pain that their own business model(s) currently create in their  distribution. And it is these pain points that will enable opportunities for other businesses to emerge with substantial adoption in the Web app space. The biggest pain with Microsoft? Their licensing models, associated expense and proprietary lock-ins.

Microsoft-based technologies are expensive

It costs a lot to be a Microsoft customer. To start with Microsoft Office Professional is from $389 - $499 a copy but it gets worse as an enterprise. I just did a search on CNET for Microsoft Office SharePoint Server 2007 for Search Enterprise Edition and got a quote for $58,108. It includes; "1 server, License, Microsoft Windows Server 2003 Web Edition, Microsoft Windows Server 2003 Standard Edition, Microsoft Windows Server 2003 Datacenter Edition, Microsoft Windows Server 2003 Enterprise Edition, 2.5 GHz, CD-ROM, SVGA monitor, 2.5 GHz, Windows, Internet Explorer 6.0 or later, Windows SharePoint Services 3.0" (part number 9PD-00179).

Furthermore, I couldn't find a solution that I could get started with right now. I found a bunch of alternatives though, but unfortunately for Microsoft, I don't even know if that's what I should be buying.

Microsoft is obfuscating the purchasing process

With all the features in their existing applications, and a growing family of options in solutions like SharePoint, it takes an expert to make a recommendation about what to purchase. Plus, applications bleed together and branding crosses streams; Office Live is a great example of this.

Being a Microsoft client has strict licensing constraints

Probably the biggest disadvantage to the Microsoft models is the lack of portability with your applications. You can't easily have your software on all your machines without great expense.  

Maybe it would be better stated that Microsoft will steamroll its own customers into using SharePoint as a platform to launch "Web 2.0-like" applications against rising competition in the marketplace that is threatening to displace their conventional software models.

I searched and searched... and found

The more I searched for additional information on Microsoft and Web 2.0, the more I saw negatives and alternatives. Even the pieces that were potentially positive, it seems to vary based upon which attitude I read it with. To quote Mary Jo Foley from ZDNET:

"Web 2.0 means different things to different people. To Microsoft's Office team, Web 2.0 does not mean a Web-centric version of Microsoft Office, a la Google Apps. It does mean add-ons to SharePoint Server, Microsoft's back-end bundle of server applications." 

When I read that, I associate add-ons with more expense, more consultants and more complexity.

What the market thought/hoped was coming you can see by the reaction to what Microsoft Office Live was. Leading up to the launch of Microsoft Office Live, the market in general thought that this would be about Microsoft Office (the product) as a Web-enabled application. And we discovered that this is not what users got at all. Now you can call it a branding mistake, but it's definitely confusing to say the least.

My point? Web 2.0 to Microsoft customers is very confusing. Sort of the opposite response to what Web 2.0 and the Web as a Platform is supposed to enable.

So what else did Forrester say in this story?

Other commentary I found assuring in the story: 

Regarding Microsoft and Web 2.0:

That's virtually 1 out of 4 businesses.
So CIO's will still try to mandate solutions they "understand" like MSFT...
We have seen this for a long time and the behavior we believe will only accelerate and fuel the ability for users to get comfortable leaving established products and moving to more Web-based applications.
Rounding it all up

I think that the real story is the alignment of solutions around the viability of competitive technologies at the fraction of the cost. Solutions that rally to work together, competing standards aligning to deliver better solutions; and enabling scalable on-demand solutions so businesses can try, buy, and scale. 

All of the trending is good news for Etelos, our partners, and our customers. Microsoft moving our way continues to validate that we are in touch with customer needs and desires, and all we have to do is continue to listen and deliver solutions that the customer wants.

I don't like to think of myself as a Microsoft basher; I just think they are going to continue to struggle with Web 2.0. The market as a whole is getting savvier and realizes that as more time passes, they have more choice. And as a whole they think this is a good thing.

I'll close on this headline and intro from IDG News Service a couple years back. I think for many the sentiment is still very real today. "Microsoft's Web. 2.0 Draws Skepticism... Though the powers that be at Microsoft seem to have finally grasped the impact of the Internet on the future of packaged software, industry observers and a key rival said the company still must prove that its plan to compete in the Web 2.0 marketplace is more than just hype."

As usual, I have lots more thoughts on this one but I am out of time.