Microsoft exits most of its hardware business
I was disappointed to read this news. Microsoft has been in the computer accessory business for a very long time. Generally known for solid quality, compatibility, reasonable prices, and, on occasion, unique designs.
Keyboards, mice, webcams, and other small accessories have been a reliable brand for many a Windows or Mac computer. Unlike their often buggy software divisions, reliable and easy-to-use hardware has been one of Microsoft’s core strengths.
It’s not completely bad news in that they will continue to manufacture hardware accessories for their Surface tablet line. But, this is cold comfort for the many users who have no interest in using Microsoft’s Surface yet enjoyed their Keyboards and Mice.
Update:
Microsoft has found a new partner to produce their hardware. News link here.
Reasons why Microsoft’s hardware business has been so lacklustre
The Microsoft Surface
I do find it puzzling that they have decided to double down on the not-so-popular tablet line that has yet to win the full loyalty and praise from its customers. Some might say these tablets have been sacrificed by NFL coaches and players in the heat of the moment. Yet, comparatively, I have not seen iPads used in sports equally maltreated with the frequency of the Surfaces. I would speculate that the Surfaces malfunction at important junctures and help to bring about these displays of anger. And, I’ve definitely read of sports and general users deeply displeased with lock-ups and unexpected behaviours far more frequently than users would anticipate.
Of course, one of the first things Steve Ballmer did when purchasing the LA Clippers was to force the team to abandon their iPads and use only Surfaces. It’s rarely about what’s the best solution and often about loyalty to making one’s wallet larger.
I once repaired a Surface back to full working condition only to find that the battery not only was non-user replaceable, but, was also un-replaceable by Microsoft. After hours spent dealing with their tech support hierarchies in Latin America, I was eventually transferred to the proverbial dead end, the unavailable phone number. Literally, there was no path to finding a battery replacement for a fully functional and updatable Surface. Even in online marketplaces where re-manufactured parts might be found, none existed.
I can simply say that the Microsoft Surface line, even after so many years of investment, certainly never drew customers to Microsoft Retail stores and were a very expensive diversion in an attempt to emulate their most important competitor.
Customer Support (or, lack of it)
Microsoft has always had an awkward and uncomfortable relationship with support. At different points they have outsourced their call centres to The Philippines, Latin America, and India. What makes these cost-cutting moves problematic is that these call centres were/are contracted and never provided the full resources of Microsoft in resolving issues. In addition, these contract employees’ capabilities of solving difficult tech support issues goes largely unmonitored leading some support representatives to recommend or follow repair paths Microsoft would never authorize.
Under Bill Gates and Steve Ballmer, competent local support were often shown the door as they were simply a “cost centre” that Microsoft clearly didn’t think were a vitally important reflection of the Microsoft brand.
An inequitable company
Other divisions of Microsoft, like MSN, for instance, were also treated like an evil step-child because their tasks were never accompanied by the profits that other divisions brought to the company. In other words, MSN was given an impossible task of somehow turning big profits from a business that never had profit potential or Microsoft subscription pricing plans to monetize. Same can be said of support, hardware, and XBOX. And, as a result, being a Microsoft employee from these divisions of the company always was accompanied with condescension. If you weren’t working on Windows, Office, Developer Tools, or R&D, you weren’t really important.
Well, I hope you’ve found this exploration of some of Microsoft’s ways of thinking and doing business interesting. I do like Satya Nadella and hope he finds ways to guide the company in new directions that better match the values he publicly espouses. Yet, watching from the sidelines, I see simply more of the same minus Ballmer’s abhorrent HR policies and sweaty PowerPoint presentations.
