My Photo

Disclaimer

  • This is my personal weblog. The opinions expressed are my own and not those of my employer. My work related blog is at Microsoft StartupZone.

Enter your email address:

Delivered by FeedBurner

« Chuck Thacker, Butler Lampson, Jim Gray - legends in their own time | Main | Marc Andreessen's big company turn around plan - Yahoo are you listening? »

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341bf9da53ef00e0098202ed8833

Listed below are links to weblogs that reference Microsoft - a friend to startups:

» Andreessen Blog Kool-Aid Sure Is Tasty! from Innovators Network
OK, so it might be my turn to drink a little of the Kool-Aid flavor of the day: Marc Andreessen Blog (http://blog.pmarca.com). I'm enjoying Marc's posts: they are insightful and come from someone who's been there, done that. And, is [Read More]

Comments

I love Microsoft.
Why they don't get the same appeal Apple have? Every body seems to hate them!
Sad but true.

Hi don, how about MS entering its partner's space? For example, AV(Windows OneCare). If we (ISV/Solution provider) build big enough market or provide a function like anti spyware. Aren't we setting ourselves on the chopping block? isn't MS's partner program a double edge sword?

I read somewhere that the vast majority of revenue for MSFT is generated through partner channels - including OEMs, ISVs, SIs, etc... Is this true?

Scott, Yes, it is true Microsoft gets the vast majority of its revenue through / around partners. I have heard numbers as high as 80%. A significant portion of that is Windows and Office shipped on PCs. But, there are thousands of partners selling software products that leverage billions of Microsoft revenue.

Jack, There are thousands of Microsoft partners who have built great businesses around Microsoft. In the case of AntiVirus customers demanded a built in Microsoft solution. So, Microsoft made several acquisitions of partners in this space. The partner companies and their investors were very happy.

A/V is a rare case. There is lots of opportunity space for partners across all product lines and market segments.

Hi Don,

I guess there are several problems with building on top of/relying on MS technology. Two is technological and the other two are philosophical:

1. Technological: By using MS technology, you place a bet on the proprietary software. Indeed there are advantages such as supports. But you also have to rely on the company to fix the bug/release patches. You need a strong faith that MS produce great products because you will not be able to fix the bugs on your own.

2. MS technology are tightly integrated, which means I usually have to use the whole package. MS products are not always the easiest to use (for me... I still have no idea what Sharepoint server is) and will I be willing to sacrifice this flexibility?

3. Economical: although there are incentives, the support cost of MS products will take a toll, esp for startups. I always thought... maybe the best solution is MS develop a VC branch (like Y combinator) that invests in startups... allow them cheap access to MS products (but not mandatory).

4. Licensing. since most MS products are propriety you might run into the licensing fiasco like TestDriven.NET

5. MS has to tendency to extend into its customer market. Nice that you mention the Antivirus market, because MS now directly competes in the market with OneCare. Now can a startup owner sure if MS will not compete with me one day, esp. since MS is so big and pervasive.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Subscribe