1. Why has Microsoft been so successful with Windows?
Windows has been successful with Windows for a number of reasons such as below: * Dominant Operating System/Large Installation Base: Windows was first launched in 1983, and has been the most dominant Operating System with a huge market share and installation base. * Enormous plethora of GUIs: Microsoft windows provide a range of features from a step-by-step user interface for novice users to powerful interfaces for the computer professionals. It provides GUI for almost all features. * High marketing and R&D budget: Microsoft invested heavily in Marketing and R&D. They provide regular updates to both their operating systems and applications. * Contracts with OEM: Around 80% of Microsoft’s revenue of its client segment is generated through the pre-installation of Windows operating systems on PCs, for which the OEMs pay Microsoft a licensing fee depending on the version of windows. * Other Windows compatible applications and software: Microsoft offered Microsoft Office and other software application, taken care of by a dedicated product segment called “Information Worker”. They also invest specialized division to support ISVs (Individual Software Vendors) to ensure the compatibility of externally written applications with their latest operating systems. * Server and Tools Division: This division of Microsoft produced the server version of windows like Windows Server 2008 R2 and development tools like Microsoft Visual Studio, a web application framework. * Significant switching cost from Windows: The high switching costs of OS from windows also protects windows as the enterprises and customers using Windows operating systems. * Piracy has pluses: Piracy of windows indirectly helps windows build a larger customer base and also compensate of the ‘free operating system’ segment of Linux, which helps it sustain better in the market and yield more
References: * Microsoft vs. Open Source: Who Will Win? By Sean Silverthorne, 2005 http://hbswk.hbs.edu/item/4834.html * Linux Inc. – Bloomberg Businessweek Magazine, 2005 http://www.businessweek.com/stories/2005-01-30/linux-inc-dot