Microsoft is on its way to initiate several steps to revive its lost position in the present market. With this idea in view, the company has chalked out a plan to join an investor consortium, offering finance to Dell so that they may go into a public business venture. According to reports, Microsoft would not initiate direct investment in Dell’s equity. However, they might provide certain influence among the owners of Dell.
The move might prove to be highly beneficial for both the companies. Experts are even terming it as a desperate initiative by Microsoft for reviving its luster. However, a section of critics is also explaining the move to be an initiative to deter the fast expanding market of Android software over Windows. Apart from restricting the competitors, Microsoft also needs to gain confidence of several hardware companies in order to make them partners for launching the highly anticipated operating system of Windows 8. Therefore, critics are right in adjudicating such an investment offer as ‘betting on one’s self’.
In fact, this is not the first time that Microsoft is playing the trump card of investment. They have even undertaken such step in 2011, paying $1 billion and making Nokia come up with a series of next-generation Windows smartphone. The step was a calculated move to ensure that Google would not get any partner to launch their Android operating system.
Advantages of such investments
According to experts, Microsoft needs to maintain a customer base that would be pitching and using their software for tablets, PCs and even smartphones. Even if the software and functional qualities of Windows 8 and the gadgets powered by it is proved to be of superior quality, they would require other device manufacturing companies for production in larger quantities. The production ratio by other reputed companies will be making the final impact on customer preferences.
However, these conglomerations of companies under such pacts will certainly bring a dynamic change in the traditional smartphone and PC market, globally. Technology has eventually minimized the difference between small-screened smartphones and bigger-screened television sets. Experts are seeing Windows 8 as a key for Microsoft to enter into this competition to claim devices under a single platform. Keeping partners like Dell and Nokia, will eventually ensure Microsoft get a ready customer support in their new venture.
Microsoft needs humble support from all the gadget manufacturers to initiate thrust on the global market. Therefore, if reputed companies in this genre like those of Samsung, Nokia, Dell and even HTC start manufacturing Windows-based phone devices, Microsoft will surely get an upper hand to encroach upon the market of smartphone again. This accounts them to invest a considerable share in companies like Nokia and Dell so that they might not enter into a contract with Microsoft’s rivals, the Android brigade.
With Android smartphones slowly emerging out to wipe out conventional desktops, Microsoft is taking its chances by investing in Dell, world’s third largest PC manufacturer. This has even paved a way for both the companies to venture in the innovative world of tablet and PCs. The pact also ensures Dell to provide a loyal customer base for Windows-based operating system in the devices.
Possible dangers in this genre
Although Microsoft is betting upon these partners and its upcoming Windows 8, there is a persisting danger of the company ignoring other manufacturers who might be eager to team up with them in order to get their foothold in the up-coming new market. Microsoft’s alienation from many partners in the PC business might not sound good enough, but they should really be counting on keeping partners like HTC and Samsung for grabbing a chunk of share in the market of smartphones.
Android from Google and iOS from Apple has surely diminished use of conventional desktop or laptops in corporate business sector, through induction of tablets. This will certainly be an enormous threat for Microsoft and they should definitely not ignore the sector any more.
It is really a wonder regarding how Microsoft failed to utilize the booming industry of smartphone over the last couple of years. However, it will be worth watching if they can make any change in the market with their highly endorsed and revolutionary operating system of Windows 8 and the gadgets running with it.