The Register reports on Microsoft's approach to winning customers to BPOS versus Google and, presumably, Notes/Domino or LotusLive. The tactics described explain a lot. In my personal opinion, this approach to business is way beyond "SPIFs" and even beyond "bounties". And while the article discusses one customer who has made a Notes to Exchange Online decision in this context, it seems reasonable to think this payola approach is the real motivator behind other recent decisions.
So when are we hitting back? Watch for August to be the most exciting "quiet summer month" in a long time. :-)
Chief operating officer Kevin Turner painted a rosy future for Microsoft in the cloud for Wall Street this week, but at the same time, Microsoft has been getting dirty. The Reg has learned that Microsoft is paying for partner sales people a bonus for converting customers from Gmail to Exchange.Link: The Register: Microsoft gets dirty with Gmail cloud cash fight >
Sales people at partners who provide hosted versions of Exchange Server receive between $5 and $7 for every Gmail inbox they convert.
The bonus is a form of payment known as a Sales Promotion Inventive Fund (SPIF), something that Microsoft does not typically offer to partner sales people.
Given the kinds of accounts Microsoft is winning on BPOS, that means Microsoft is taking a decent hit on every large Gmail account it converts.
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- 2
Darren Duke http://blog.darrenduke.net | 7/31/2010 12:25:21 PM
Just a reminder, August started already in some parts of the world ;)
- 3 Mike Brown http://www.browniesblog.com | 7/31/2010 5:52:39 PM
- 4
Mike Brown http://www.browniesblog.com | 7/31/2010 5:54:09 PM
"They [Microsoft] have the deepest of pockets, unlimited ambition, and they are willing to lose money for years and years just to make sure that you don't make any money, either. And they are mean, REALLY mean." - Robert X Cringley { Link }
- 5
Randall Shimizu | 7/31/2010 8:58:13 PM
The sooner IBM/Lotus hits back the better :)
- 6
Keith Brooks http://www.vanessabrooks.com | 7/31/2010 9:12:59 PM
Nothing new in that, and IBM doesn't have similar offerings to BPs who get companies to convert to various IBM offerings from the competition?
Does this mean there will be new BP offerings?
- 7
Josie Faycurry | 7/31/2010 11:36:13 PM
Hi Ed!
Thanks for sharing. While I am not in agreement with Microsoft's approach, I respect the fact that they are pulling out all the stops to grow market share. IBM should think of its own unique and aggressive campaign to take share from Microsoft and Google. Now is the time!
- 8
Peter Wilson | 8/1/2010 4:28:35 AM
IBM's going to finally open source Notes? :-)
Pete
- 9
Fr@nk | 8/1/2010 6:39:53 AM
And in the meantime IBM is squeezing their competitors in the mainframe bussiness according those competitors:
{ Link }
snippet: "But some of its rivals have complained that IBM is doing its utmost to squash them unfairly—a charge that the firm strongly denies."
- 10
David (The Notes Guy in Seattle) | 8/1/2010 11:47:50 AM
Microsoft also has mail migrations from other platforms as a part of it's certification program. And you can be sure they are working on a certification program for migrations to BPOS right now. There are also tools and BPs available to help in migrating Notes and Quickr apps to Sharepoint.
Illegal? No. Dirty? Perhaps. Strategic? Absolutely.
What would be nice to see is something proactive rather than reactive from IBM. Until IBM matches and then exceeds MS in the marketing (as demonstrated in the article above that says MS already trained 13,000 people to sell BPOS), IBM will not gain ground. Ultimately, to be the most successful, the product doesn't have to be the best, it just has to be good enough. How it is presented makes all the difference. Until IBM demonstrates a clear, fully-committed, singular focus, the public will not buy into it. Note the opening sentence in this article: "Microsoft is so committed..." That alone will motivate people to buy. While the same could be said for the Lotus division of IBM, could the same be said for all of IBM? No. Too bad, because IBM has about 3 times as many employees as MS.
You will find the following phrase on the back of Shoebox greetings cards: "Shoebox, a tiny little division of Hallmark" Perhaps something like that should be added to the splash screen of Lotus software?
- 11
Comment removed | 8/2/2010 1:55:06 AM
Comment removed
- 12
Brett H | 8/2/2010 11:30:56 AM
@11 Technologically speaking I would not agree at all, but in terms of getting the word out abso-freakin-lutely!
- 14
Comment removed | 8/3/2010 2:50:08 AM
Comment removed - whether you are Noel or LeeTJ, I'm not interested in your comment spam.
- 15
Kerr Rainey | 8/3/2010 6:21:26 AM
@14, at 18 months old it's not really new news is it?
"Gets dirty?" When the forward pass was first used in football, the competition said the same thing.
Their goal is clear: to be in the lead early and make the others catch you. Their method is not really new. Give til it hurts to gain the lead and watch as the weak fall trying to catch up (in cycling they call this a break-away).
Walmart does it too. They build a new store and price everything lower than any other store in the area, even if it means taking a loss. They know they have the cash reserves to outlast the competition. Once the competition goes out of business, they can raise their prices.
Getting dirty? No. Just doing whatever it takes to drive out the competition early.