Opinion: Why Acer is wrong about Microsoft Surface
Acer CEO Campbell Kan slammed Microsoft this week, telling a newspaper reporter that
sony-nec optiarc ad-5970h Microsoft should " think twice" about its decision to make Surface touch tablets.
"It is not something you are good at so please think
sony-nec optiarc ad-7540atwice," he said.
Oh, really?
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I think Kan should think twice about that statement.
sony-nec optiarc ad-7580aIf he did, he'd realize that's he's totally wrong.
Microsoft hardware is better than Microsoft
sony-nec optiarc ad-7581s software
Everybody calls Microsoft a software company, but of course
sony-nec optiarc ad-7670s Microsoft makes hardware, too. In fact, Microsoft has been making
sony-nec optiarc ad-7590aPC
hardware for longer than Acer has. When Microsoft started designing and
making mice in 1982, "Acer" was called "Multitech" and was still an
electronic components
sony-nec optiarc ad-7590s distributor.
On average, Microsoft hardware fares far better than Microsoft software,
sony-nec optiarc ad-7703s either critically or commercially or both. Yes, the number of historical
sony-nec optiarc ad-7700h-lxMicrosoft
software products dwarfs the number of hardware products, but
Microsoft's hits-to-flops ratio is vastly better in hardware.
If you were to stop people on the street and ask them which Microsoft
product is the best in its class, or ask them which Microsoft product
they "love,"
sony-nec optiarc aw-g540athe answer in both cases would probably be: Xbox 360.
Microsoft's track record on hardware
sony-nec optiarc bc-5500ais
pretty amazing. Its mice and keyboards are among the best-selling ever.
(I personally prefer Microsoft mice above all others, and even use one
with my MacBook Pro.)
Microsoft's LifeCam webcams and LifeChat headsets are super good
products for the money.
And Microsoft's SideWinder line of gaming peripherals are pretty great,
too.
And remember the Zune? This little digital media player flopped in the
market, mostly because Microsoft got it right
sony-nec optiarc bc-5500s-h1just
as the category itself was being killed off by smartphones, which
replaced stand-alone media players.
If you don't remember the praise given this ill-fated gadget, remember
what Engadget's Joshua Topolsky said about Zune hardware in 2009. He
called it "incredibly sexy," "sleek," "smartly put together,
sony-nec optiarc bc-5600s-dx" and concluded that he's "taken with it."
Perhaps most devastating to Acer's case, however,
sony-nec optiarc crx835eis the interactive coffee table formerly known as Surface, now called PixelSense.
The original Surface, with its incredibly advanced multi-touch user interface, shipped before Apple's first multi-touch device,
sony-nec optiarc crx850e
the iPhone.
The PixelSense is truly awesome multi-touch technology. The only major
commercial company that can come anywhere close to Microsoft in
designing large multitouch appliances is Jeff Han's company, Perceptive
Pixel. Microsoft just bought the company!
So what part of Kan's statement is true? When Kan said: "It is not
something you are good at," what does he mean by "it"?
Microsoft makes the best advanced-interface gaming appliance on the
market. Microsoft makes the best large multitouch appliances on the
market. And Microsoft has a killer track record in designing, making and
selling hardware.
Sure, Microsoft is still making billions on software. From a business
perspective, Microsoft is still a very successful software company.
But in the past 10 years, all of Microsoft's "hot" products -- the ones
that lead categories, get rave reviews and engender loyal fans -- are
hardware products.
Microsoft hardware is better than Acer hardware
Implicit in Kan's criticism is that companies like Acer are good at
making touch tablets, while Microsoft is not.
Really?
Over the years, Acer has made some very good, very solid laptops. The
company has also made pretty good desktops and tablets.
But Acer has never made a single hardware product that's groundbreaking,
category leading or even exciting -- unlike Microsoft.
Acer products are solid, but bland and safe. Acer industrial design is
clunky and unsophisticated and firmly stuck in the PC world of the
1990s.
Acer makes precisely the kind of hardware that has zero chance of
success in Apple's iPad-driven, post-PC world.
Unlike the many laptops that Acer is best known for among users,
Microsoft's Xbox 360 is in the same generational category as the
Microsoft Surface. And what I mean by that is that the Xbox is really a
post-PC appliance that puts a serious emphasis on innovative
next-generation user interfaces.
While Acer specializes in yesterday's PCs, Microsoft makes the most
advanced user interface device in the world, in the sense that Xbox uses
high-definition haptic feedback, motion gesture command, voice command
and more, and all this in a low-cost consumer appliance that has
generated a loyal and serious fan base.
What has Acer ever built that's anywhere near as good or as advanced or
exciting or as category-leading as the Xbox?
Nothing! Ever!
OEMs aren't loyal anyway
In addition to falsely stating that hardware is not something Microsoft
is good at, Kan said in the same interview that "If Microsoft... is
going to do hardware business, what should we do? Should we still rely
on Microsoft, or should we find other alternatives?"
He's basically saying that if Microsoft is going to compete against OEMs
like Acer, maybe OEMs like Acer should stop being loyal to Microsoft
and look for alternatives to Windows.
My question is: What is Kan smoking? Microsoft partners in general, and
Acer in particular, are perfectly disloyal to Microsoft, and have been
pursuing alternatives for years.
Acer sells Linux PCs without much success. Most of the company's Acer
Iconia tablets run Google's Android platform.
Is Acer's CEO unaware that Acer sells Linux and Android systems as
aggressively as they can, yet almost all their revenue comes from
Windows systems?
What does it mean to Kan for Acer to "find other alternatives?" Simply
give up the majority of its revenue and go with the platforms that are
not succeeding for Acer?
Microsoft's new strategy is the best post-PC strategy
Kan slammed Surface. But what he really fears, no doubt, is the whole
post-PC world.
The truth is that so far, the post-PC universe is dominated by Apple
because in part Apple has the right business model. One company makes
the hardware, software and supporting cloud services as one integrated
consumer appliance.
So far, this is the only strategy that works in the post-PC world, from a
business perspective.
That's probably why Google is hedging its bets with the Motorola
purchase, and why Microsoft is doing the same with Surface.
When appliances make their way onto desktops and into enterprises,
what's a company like Acer to do?
Acer is probably afraid that Apple and Google and Microsoft will end up
running away with the whole market, doing their own hardware tightly
integrated with their own software and their own services, leaving the
Acers of the world out in the cold.
And that's a rational fear.
Acer isn't afraid that Microsoft can't make great tablets. Acer is
afraid that they can.
Mike Elgan writes about technology and tech culture. Contact and learn
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