Microsoft hits the tablet market with Surface... the gloves are off!

As readers will know, Tech-Research has been tracking the smartphone, tablet and ultrabook market and yesterday came a major announcement from Microsoft. We already knew that Windows 8 Pro for Intel-based tablets and Windows 8 RT for ARM-based tablets was coming but suddenly last week there were strong rumours that Microsoft was going to launch its own branded tablets. Indeed it did, with the “ Surface ” range of tablets, making this is a significant and strategic move for Microsoft, as it looks to compete with Apple and Google in the rapidly growing tablet/ultrabook market.

 

One Step Closer to Tablet/Ultrabook Convergence

In an earlier blog (May 2012, http://ow.ly/bFF1P ) we specifically talked about the convergence of the ultrabook and tablet markets and this confirms this trend as Microsoft’s new Surface tablets come with a dual purpose cover/keyboard; and, bundled with the RT version, comes Microsoft Office Home and Student 2013 RT. With the Surface products becoming available in late 2012, we predicted 2013 was going to be a critical year for Microsoft to hit the tablet/ultrabook market hard... it looks like it’s going to do just that.

The importance of the UI and a thriving apps ecosystem

A key strength that Microsoft now has with Windows 8 is the consistent Metro Windows 8 interface on smartphones, tablets and ultrabooks – and that creates perhaps a bit more interesting for consumers, SMBs and enterprise customers. If you decide to buy one of those device types running Windows 8 then it may just convince you to stay with the same “look and feel” when you upgrade your other devices.

It also starts to make Android look rather fragmented, with different versions of its Android UI from different OEM manufacturers; and, Apple (as we stated in our convergence tablet/ultrabook blog) having the problem of 2 different UIs: iOS for the iPhone/iPad and the MacBook Pro running OS X. Windows 8 now looks like a healthy competitor to both these ecosystems.

More importantly than the UI itself is the fact that it will help the ISV (independent software vendor) community to get behind the Microsoft apps ecosystem; this will be particularly true for Windows 8 RT which isn’t backwards compatible with existing applications written for Microsoft.

Not just consumer-focused, but an Enterprise play: Manageability and Security

Another key point is that this isn’t just a consumer play… for SMBs and Enterprises you can bet that Microsoft has been working hard on security and manageability to entice them to shift from Windows XP (nearly half of organisations are still on XP), Vista or Windows 7 and onto Windows 8. Indeed, for the new Surface tablets the ability to use tools like System Center Configuration Manager to deploy updates and patching will be important.

Microsoft will also use the Surface devices to push deeper into the Enterprise with collaboration and messaging functionality built around SharePoint, possibly Skype and also future enterprise social media applications (note: the expected, end of June, acquisition of Yammer by Microsoft).

The start of BYOD reversed?

The other interesting feature of this move maybe that we start to see a reversal in the BYOD trend, although this might take another 12-18 months to gain momentum. BYOD typically means more security and manageability headaches for SMB and enterprise IT departments; but, if you could have an easily manageable and secure client environment that every user is familiar with then it could be a win-win for both end-users and IT.

Outlook

However, it won’t be all plain sailing for Microsoft... by introducing its own hardware devices it will be coming into potential conflict with OEM customers such as HP, Dell, Lenovo, Samsung, Nokia, HTC, Asus, Toshiba, etc. Steve Ballmer recognised this but countered with his view that the company, at times, needs to push hardware makers "in ways even that the makers of the hardware had yet to envision”. Perhaps that’s why Microsoft appears to be taking the initial launch relatively cautiously by only distributing Surface via its own stores and online channels.

 

Finally, as Microsoft drip-feeds more information on Surface into the market over the new few months it will become clearer on the likely impact of Microsoft’s bold move; note, we certainly don’t see this as an iPad killer but more as a healthy competitor. What will make a difference though will be the consumer entertainment experience. The initial announcement was pretty “light” on details, i.e. the delivery and mix of consumer entertainment software and services, e.g. photos/video, music, TV/movies, integration with X-Box, video calling with Skype, etc.; and, that will make the difference, potentially turning a solid tablet experience into a great tablet experience.

Note: Tell us what you think. Do you agree or disagree with our commentary? Have we missed something obvious? We'd love to hear from you!

Insights & decisions made easy...

www.tech-research.co.uk 

Do you need some market insights or research in a specific area? If so, contact us on:

Email: geoff.fitzgerald@tech-research.co.uk; Tel: +44 7710-573688