Despite their fierce rivalry, it seems that both Apple and Microsoft are in desperate need of each other right now. In fact, they have never needed each other as urgently as they do at this moment.
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Gates told Apple that this horse is filled with gifts. Source: Rudypark |
Nothing is impossible in this world, and even these two bitter rivals might find common ground. If you take the time to explore the personal blogs of Microsoft employees, you’ll discover a reality: many are dissatisfied with their current CEO. In other words, they believe that a “Steve” who is not fitting is leading Microsoft.
Conversely, that “Steve” refers to Steve Jobs of Apple, who possesses skills that Microsoft desperately desires. At this point, you might think that such a scenario is impossible, yet, just in the past few months, we’ve encountered countless “impossible” events.
First was the acquisition of eMachines by Gateway. Why would the current management team at Gateway spend money to buy another company, only to accept the leadership of eMachines directing them?
Then there’s the partnership between Apple and Intel. Even Steve Jobs had previously claimed that such a collaboration could never happen. Yet, things unfolded as you know.
Next, Cisco, a giant in the enterprise networking field, unexpectedly purchased Scientific-Atlanta. Was this to pursue the digital set-top box market?
Or consider Dell, a company that seemed impervious to acquisitions, which spent money to buy Alienware, a firm specializing in high-end gaming computers.
Most notably is the event where Walt Disney acquired Pixar, despite the fact that just months prior, these two companies were in a fierce battle against each other.
Clearly, there would be significant antitrust barriers if Microsoft were to acquire Apple, but both Apple and Microsoft are known for their “history” of overcoming the impossible. Regardless, that is their business. Now, let’s imagine what the outcome of such a merger would be.
Not About the Operating System
It’s easy to identify the reason Apple acquired NeXT in the past. Apple wanted to leverage the talent and technology of NeXT to solve a problem similar to what Microsoft faced with Vista: While Apple is not a professional operating system developer in the strict sense, Microsoft has strayed too far beyond the OS realm.
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Source: Livedigitally |
Microsoft is gradually losing support from many employees, partners, and key customers. Even the U.S. government is no longer enthusiastic about protecting Microsoft from foreign threats and troubles. Microsoft is facing serious image issues that the company seems either unaware of or simply unable to address.
Additionally, there are leadership problems within Microsoft, as executives are isolated from the rest of the departments. They often make poor decisions and face criticism from their own employees.
The marketing and PR departments are primarily responsible for the company’s deteriorating image. In contrast to Microsoft, Apple’s PR and marketing efforts are executed exceptionally well. The company’s latest products, such as the iPod and iTunes, have imposed a lifestyle, culture, and fashion trend among the youth.
Similarly, Apple, particularly Steve Jobs, is renowned for his hands-on management style. Jobs always demands the impossible from his employees, but the rewards are substantial, and he often gets the desired results.
According to the Microsoft blog, the only trouble-free area in Microsoft is the Mac Business department. The very name suggests that this department is closer to Apple than to Microsoft at this time.
In summary, with all the factors mentioned, there is reason to believe that Apple could assist Microsoft. But will Microsoft have anything to offer Apple in return?
Why Apple Needs Microsoft
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“I iPod, therefore I am.” When will Bill Gates say this instead of Steve Jobs? Source: Worth1000.com |
The obvious key here is “Office,” but on the condition that Microsoft must provide Apple with a significant capital injection (around $150 million) so that Apple can launch new hardware and complete its new operating system. Not to mention that Microsoft would also need to allow Apple to “sell” in many areas where it is currently banned.
In fact, Apple has its own significant problems. First, the company’s computers and operating systems only hold a very modest market share. They do not license products or enforce technology standards on anyone. While Apple computers are durable and secure, they lack compatibility with other software platforms. Thus, a partnership with Microsoft could help Apple products run smoothly in the Windows environment.
Imagine the outcome if Apple’s new operating system were based on the Windows kernel instead of Unix? It would surely be accepted by consumers and businesses at a rate ten times more than it is now.
Moreover, if Apple’s most successful product, the iPod, were to run on Microsoft’s software platform, Apple could sell more interface licenses. At that point, the iPod could fully unleash its potential and generate significantly higher revenues.
No Merger, Can There Be Cooperation?
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Source: Tliquest.com |
The idea of an Apple-Microsoft partnership may seem far-fetched. The appeal of both Apple and Microsoft lies in their independent existence, with distinct characteristics that cannot be blended. Moreover, it’s certain that the U.S. government would not allow such a merger to occur. But, what if the two sides were to collaborate?
If Apple’s next operating system, Leopard, is completed, perhaps Apple could gain some market share from Microsoft in this fourth quarter. Unfortunately, Leopard is unlikely to be released before next year, after Vista rolls out. The lack of competition is creating inertia for Microsoft, and it’s only natural that the company cannot introduce many groundbreaking features into Vista. Above all, Microsoft is yearning for a competitor to divert the attention of the EU and some Asian countries from them.
Furthermore, Linux poses a threat not only to Microsoft. The fact that OS X is used by so few people means it is very vulnerable to encroachment by other competitors.
What would happen if Apple teamed up with Microsoft to turn the iPod into a media entertainment hub of the new era, while Microsoft assisted Apple in building Mac OS to be on par with Windows?
In the end, all the analysis above presents an ideal scenario, which rarely becomes perfect in reality. However, many strange things still happen, and if one day you read in the news that Apple has partnered with Microsoft, don’t be too surprised!
Tian Yi
