Photo: Michael Sprague / Wikimedia Commons

Microsoft co-founder Paul Allen has gone on a feeding frenzy, suing eleven technology companies for alleged patent infringements for patents he’s held since the 90s. The one humorous omission from his lawsuit perp-walk, you ask? Microsoft, of course, the company Allen co-founded and still holds significant equity in.

Interval Research the key

In a move that left the web shocked, confused, bemused, or a combination of all three, Allen sued Apple, Google, Yahoo, Facebook, YouTube, eBay, AOL, Netflix, Office Depot, OfficeMax and Staples for four patent infringements covering – get this – ‘fundamental web technologies’. The patents were granted – and developed – by Interval Research – a research company Paul Allen owned in the 90s. The firm reportedly employed over 110 of the world’s brightest physicists, scientists and engineers who were designing the next wave of science and technology.

When not putting these smart people hard at work, Allen’s Interval Research supposedly funded external projects, including one by a pair of gentlemen named Lawrence Page and Sergey Brin, the founders of Google.

‘C’mon, dawg! Be serious!’ – everybody

Naturally a few of the accused organisations have come out of the woodworks to defend themselves already, with the rest likely to follow suit soon. Facebook, one of the highest profile companies in the suit, issued the classic ‘We believe this suit is completely without merit and we will fight it vigorously’.

The web has also reacted, with various commentators wondering when Paul Allen became a patent troll. An unknown commenter put it best, when he/she said ‘Allen may as well sue the whole Internet this suit is so broad.’ And for broad stakes, this patent infringement suit does, indeed, take top honours.

So much for your good grace

Allen left Microsoft over two decades ago due to health concerns, and since then has gone on to not only recover, but thrive in other business areas including cable television, sports team ownership and the like. Leaving for reasons of illness, he got to get out the game with the kind of halo people on their deathbeds are often permitted, but this suit proves he is fit and fighting and surprisingly vicious, too.

As for his friends at Microsoft? Yeah, they’re doing okay. They have this little product called Windows 7 that’s doing gangbuster numbers.

Does Paul Allen Interval Research have a case here? And, seriously, can we ignore the fact that Microsoft’s name is miraculously omitted from this list? Surely not.

Photo: Microsoft

Microsoft realises that its future lies in two key areas – cloud computing and smart devices, most urgently smartphones. As such the company is dedicating significant resources to both markets, with an internal email indicating every Microsoft employee will receive a Windows Phone 7 Series device.

Unprecedented

Naturally, this unprecedented move has garnered loads of attention for Microsoft, who really are throwing the kitchen sink at mobile and Windows Phone 7 Series. Andy Lees, mobile chief at Microsoft, wrote in an internal memo that he is ‘thrilled to announce that a new Windows Phone 7 will be made available to every Microsoft employee as we launch in each market around the world.’ Generous.

He continued, explaining the first thing he expected Microsoft employees to do upon receipt of the phone was to use it. ‘The experience of Windows Phone 7 is special and a big step toward our future in the mobile phone business. We’d love all of you to love it as much as we on the team love it. To do that we need to you to use your phone and find the things that make it personal and valuable to you,’ he continued.

But why? What’s your motivation?

Photo: Rebecca McAlpin / Microsoft

Before we credit Microsoft with undue benevolence, what is the true motivation behind this? Product evangelism and app development? Yes on both counts. Andy Lees encourages employees to ‘understand the unique value of Windows Phone 7 and evangelize to your customers, partners, friends and family! Windows Phone 7 is a different kind of phone, designed to bring together the things you care about most.’

He then encouraged MS employees to be Windows Phone 7 app developers, either in their personal capacity or on Microsoft’s time. He adds that ‘[they’ve] introduced a new employee developer program which makes it much easier for you to develop apps for Marketplace in your spare time.’

Whether this, like other MS initiatives, will drive Microsoft employees to become serious Windows Phone 7 app developers remains to be seen. And, more importantly, is whether this will help Microsoft achieve its mobile phone ambitions, because Google and Apple seem intent on running away with this generation’s smartphone spoils.

Photo: Microsoft

During the warm afterglow of a fantastic earnings report, Microsoft has announced a key partnership with ARM that could have significant bearings for the entire mobile computing landscape.

What MS is paying for

Essentially, Microsoft has signed a licensing agreement that will give it access to ARM architecture. Though Microsoft and ARM have been working together for north of 13 years, this formal deal will give the Redmond giant access to ARM’s working architecture, information it has not had up until now.
Why this is huge for Microsoft

For Microsoft this is huge, considering the company will now get unfettered access to ARM’s working knowledge of the processing technology powering a massive portion of smartphones on the market. To give some perspective on the technological bearings of this deal, one needs to consider that Apple’s very own A4 chip powering the iPhone 4 and the iPad are built on ARM architecture. (Speaking of which, remember that ridiculous rumour that Apple wanted to buy ARM?)

This doesn’t necessarily mean Microsoft would build its own chip and we doubt they will, but it will give the company key insight into the hardware structure of the ARM architecture processors powering the vast majority of its incoming Windows Phone 7 Series hardware, as well as Windows Compact 7 for tablets. This is invaluable information.

Why this is huge for ARM

Photo: ARM

ARM shareholders have shown their approval by helping surge the share price up an impressive 11 per cent since Friday’s announcement. Within ARM itself, though the company has hundreds of licensing agreements, this is one of only four it has made public, indicating how big a deal signing Microsoft as a client is, even today.

Intel wept

Long-time Microsoft partner (or is that codependent?) Intel cried a tear, too. It’s well documented that the historical leader in microprocessing, Intel, in contrast to its fantastic Core i3, i5, and i7 ranges, has been slow off the mark with its mobile offerings. In fact, its only really big bet is MeeGo, and considering partner Nokia’s recent prospects, it isn’t enough to be comfortable with. Some commentators have already stated Intel will lose in mobile. They sure could have used some support from their Redmond friends, huh?

Photo: Microsoft

Never prepared to let Apple take the spotlight alone, the Microsoft earnings report shows that MS just had the best quarter in its history, with revenue exceeding $16 billion. For those keeping score, that is more than Apple’s $15.7 billion revenue, if only just, but with better margins, to boot.

Pretty numbers

Analysts, on average, expected Microsoft’s revenue to be around $15.3 billion, which Microsoft handily beat, posting revenue of $16.04 billion and net profit of $4.52 billion. Since Microsoft’s financial year starts in the middle of the year, this was in fact the software giant’s Q4 earnings report. As is customary with year-end reports, Microsoft gave its full results for the final year, with revenue totaling $62.48 billion, which is 7 per cent greater than that of 2009. Net income leaped by a very impressive 29 per cent to peak out at $18.67 billion.

Windows 7, you beauty

Windows 7 contributed a massive portion of those revenues mentioned in the Microsoft earnings report, with the company revealing it has sold over 175 million licenses for its latest operating system already. At one point, Microsoft was selling seven licenses per second of its Windows 7 OS. And deservedly, if we may add – it’s a very good piece of kit, a worthy entry to take the mantle from Windows XP as Microsoft’s best operating system to date.

Office 2010 performed admirably, too, which was expected, since it forms one half of Microsoft’s one-two revenue and profits combo.

What do you want from us?

Steve Ballmer and his executive team at Microsoft may feel a pinch of helplessness, though, because even with these better than expected results, investors aren’t showing much confidence in the company, with little stock price movement since the announcement.

Here cometh the big one

Photo: Microsoft

Microsoft is about to enter into, quite possibly, the fiercest battle it has ever been involved in in its storied history – the smartphone industry. With developer builds of Windows Phone 7 Series handsets shipping, Microsoft has finally shown its hand. And, though it’s early to say, we think they may have a chance. Perhaps slim initially, but if the way they muscled into the gaming industry with the Xbox 360 is any sign, Microsoft is willing to wait for investments to pay off.

But neither Google, nor Apple, nor RIM or even the weakened giant that is Nokia will budge an inch. The stakes – and financial windfall – are simply too high to let go.

This Microsoft earnings report is far better than investors are giving Microsoft credit for, with Windows 7 continuing to impress. Windows Phone 7 Series, however, is about to start swimming for its life.

Can Microsoft pull it off? What do you think?

Photo: Michael Sprague / Wikimedia Commons

Following in his business partner and buddy Bill Gates’ footsteps, Microsoft co-founder Paul Allen has pledged to leave the majority of his fortune to philanthropy once he passes on. And though he hasn’t been around for the company’s Windows 7/Office 2010 days, his fortune, at $13.5 billion (about £8.75 billion) is nothing to be sneezed at.

Cancer survivor

Paul Allen, who co-founded Microsoft with a young Bill Gates in 1975, resigned his executive position from Microsoft back in 1983, having just defeated his first bout with cancer. Since then his interest in philanthropy has swelled and, according to Reuters, he has been involved in philanthropic ventures for the last two decades, handing out north of $1 billion (more than £650 million) in funding and grants through his Paul G. Allen Family Foundation.

Allen released a statement saying, ‘Today I also want to announce that my philanthropic efforts will continue after my lifetime.’ He continued, ‘I’ve planned for many years now that the majority of my estate will be left to philanthropy to continue the work of the Foundation and to fund nonprofit scientific research.’

Post-Allen Microsoft activity

Allen first left Microsoft in the late 90s due to health concerns. Since then, considering his wealth was equity-based, his fortunes have, in many respects been tied to the companies. On Microsoft’s own part, the company hasn’t been able to stay out of the news over the last few months. There is a massive juxtaposition between the run-away success of the Windows 7 operating system and Office 2010 – Microsoft’s legacy businesses – and the monumental flop that was Microsoft Kin and the pressures that has put on Windows 7 Phone Series. Nevertheless, it’s always encouraging when the wealthy of the world leave money they know they cannot take with them to those in need. Good on you Paul Allen, Bill Gates and Warren Buffett.

Photo: J.VillaretePhoto / Flickr

Bobby Kotick recently expressed his displeasure at contributing a central experience to Xbox Live without seeing any financial payoff from the system. Now that information regarding just how much money Microsoft are making from Xbox Live subscriptions has emerged, we can’t say we blame him.

Over $1 billion in annual revenue

Through piecing different pieces of information, Gamesindustry.biz (free subscription required) has discovered that Microsoft make more than $1.2 billion (£790 million) annually on a combination of Live subscription and downloadable content. Microsoft now have over 25 million XBLA subscribers and more than 50 per cent of these subscribers have a gold subscription – accounting for around $600 million (£395 million). In an interview since, Xbox COO Dennis Durkin revealed that more than half of the total Xbox Live revenue came from digital downloads, adding at least another $600 million (£395 million). That’s a whole host of money we spend on DLC, Xbox Live Arcade games, themes and, shudder, Avatar fashion accessories.

Buy smarter, please?

Photo: Dan Coulter / Flickr

Most Xbox Live subscription and Xbox Live Arcade points are bought directly online due to the ease of simply punching in a few credit card details and processing a transaction. Savvy gamers have discovered, though, that if you buy Xbox Live subscription cards and if you buy Xbox Live Arcade points from retailers online, you get them for less than the price Microsoft itself charges. Some online retailers even email the vouchers to you instantly, so that you don’t have to wait. It just makes sense and, by the calculations above, Microsoft don’t need anymore of your Xbox Live subscription money, now do they?

Years down the line, even though many gamers are still not happy with having to pay for the XBL subscription, do you think it’s been worth your money? And which titles dominate your gaming time?

Photo: Microsoft

Microsoft has announced that its latest Windows operating system, Windows 7, has now exceeded the 150 million units sold mark, reaffirming (and cementing) its place as the fastest selling operating system of all time.

Seven sold every second

This 150 million sold figure represents ‘seven copies of Windows 7 sold every second’ since the Windows operating system was released on 22 October 2009. The bulk of these sales are driven by enterprise, with Microsoft’s research indicating that 75 per cent of enterprises are exploring the adoption of Microsoft’s latest Windows operating system.

Why the explosive sales rate

The explosive sales rate is indicative of two things – one, the quality of Windows 7 and, two, how shocking Windows Vista was. Regarding the OS quality, Microsoft’s latest Windows operating system is a modern OS with a UI upgrade more indicative of the times, minus the problems (security, stability, excessive notifications) that marred Windows Vista. Speaking of Windows Vista, that operating system’s biggest problem to adoption was how bad it was. Or, to take a softer position, how badly received it was. Add that to the fact that it was released right before a painful recession, which meant enterprises were cutting spending, Windows Vista never really had a fighting chance.

A quick turnover

Photo: gynti_46 / Flickr

The last time we wrote about Windows 7’s explosive sales rate, Microsoft’s latest Windows operating system had past the 90 million sold threshold. This was at the beginning of March, meaning that in the three and a half months since, Microsoft has added an impressive 60 million units to that total, showing that sales are not tapering off yet.

Room to breathe (and fight)

Microsoft is reliant on Windows 7 and Office 2010 to generate significant revenue for it while the company navigates more competitive market spaces like smartphone operating systems, video games, and its many cloud computing initiatives.

Photo: Microsoft

Windows 7 SP1, the first major update to Microsoft’s latest OS, has been scheduled for a beta release at the end of July.

Service packs bring stability

The Microsoft Windows service packs have historically been means for squashing various bugs and adding greater stability. In addition to that, however, this service pack for Windows 7 and Windows Server 2008 focuses on preparing these software platforms for the challenges and risks associated with cloud computing.

The contents of the upcoming Microsoft Windows service packs are in line with Microsoft’s stated corporate strategy of being ‘all in’ when it comes to cloud computing. And this service pack update is indicative of Microsoft leveraging the competitive advantage afforded to the company that owns the world’s most ubiquitous operating system.

What Microsoft claim it will do

Microsoft released a statement indicating their plans for Service Pack 1. It read: ‘The new virtualisation tools in SP1 will help Windows Server 2008 R2 users prepare for cloud computing, Remote FX provides rich 3D graphical experience for remote users, and Dynamic Memory enables more control to adjust memory usage without sacrificing performance.’

In addition, the statement also indicated that the various incremental updates performed for Windows 7 will now be collated in one place.

Cloud computing is not everything

Bob Muglia, who is president of Microsoft’s Server and Tools division, felt the need to assure Microsoft customers that the company is still committed to ‘on-premises software’ even with this newfound focus on cloud computing capabilities through Microsoft Windows service packs.

But Muglia’s stance is actually problematic. The desktop, Windows 7 and Office 2010 are legacy businesses for Microsoft. The fact that the company is ‘all in’ when it comes to cloud computing is indicative that there is a realisation that the computing landscape is being radically altered.

However, if the execs who are leading this charge toward cloud computing and web-based productivity feel the need to reassure Microsoft’s customers (and investors, indirectly) that its business as usual, then perhaps Redmond is not ‘all in’.

Photo: Stock.Xchng

When Microsoft’s soothsayers aren’t making ridiculous predictions like they’ll sell 30 million Windows Phone 7 Series phones in a year, they make altogether more fascinating predictions like, come 2020, the way we search will forever change. In fact, the claim is a little more extreme than that even – the claim is we won’t be searching at all.

TechRadar reported that Stephen Elop, Microsoft’s Business Division President, told a crowd in Amsterdam that our conception of search will be altered so much that it can no longer be called that. At this Office 2010 launch event, he offered that, though search engines will constantly search in the background, our interaction with the results is what will change. As you type an email, for example, results will be given to you, as opposed to you having to search for information.

The slow transition

In addition to discussing his ideas on the future of search, he showed how he thinks the future will look with a typical behind-the-silk-screen futuristic Microsoft R&D video. Microsoft’s thinking around the Internet and its value has accelerated rapidly in the last few years, which was what resulted in Elop discussing search at an Office 2010 event.

As such, Microsoft is finding their cloud computing catch phrase, ‘we’re all in’ is more prevalent than even they thought it would be just a short few years ago. But that isn’t to say Office, or Windows, have taken a back seat.

The cash cow

Photo: Microsoft

Office 2010, which is Microsoft’s big money spinner next to the Windows operating system, is expected to be a success, but not to the extent of previously released versions. Free cloud productivity apps like Google Docs and Microsoft’s own Docs.com have begun eroding at the classic desktop productivity applications suite.

Having said that, though, Elop explained that 70 per cent of Microsoft’s work force is working on cloud computing initiatives, a number that will shift to 90 per cent in the coming years. Like Steve Ballmer before him, Elop said ‘we’re all in’.

Photo: Microsoft

With Apple’s market cap overtaking Microsoft’s for the first time ever, it stands to reason that many are scratching their heads over at Redmond wondering what happened. Here we look at what Microsoft’s done wrong the last five years as we search for clues on what they can do to remedy their situation. In fairness, between Windows 7, Office 2010 and, yes, the Xbox 360, Microsoft’s already on its way – but problems first.

Windows Vista

Windows Vista is possibly Microsoft’s biggest mistake of the last half decade. The uninspiring, incomplete, bloated operating system undersold, giving Windows 7 a heavy burden. Windows Vista was so bad in fact, many users stuck with the more familiar Windows XP. And, with the Windows group coupled with the Office group contributing the bulk of Microsoft’s revenue, to have one half of your one-two underperforming will depress any company’s share price.

Windows mobile

Windows mobile was an underdeveloped, highly fragmented, underperforming misstep, too. Apple and Google Android have since stolen Microsoft’s thunder in the mobile OS category, but Microsoft under-innovated in a space it had the jump on everybody. With the iPhone OS platform and the App store generating the obscene revenues it currently is, therein lies evidence of the opportunity Windows mobile left behind.

In both product instances, Microsoft had become lazy, and it took the market not responding and competitors taking Microsoft money for the company to realise this.

The silver lining

Photo: Microsoft

This is not all doom and gloom, though. Microsoft is still a massive company, larger than many global economies. Furthermore, the company’s recent product set has us believing Steve Ballmer and co. have turned the corner in resuming normal, awe-inspiring activities. Windows 7 and Office 2010 bring the stability only core products can offer such a massive company. But, in the Windows Phone 7 Series, the Xbox 360 and Microsoft’s cloud computing initiatives, the company has three nascent product sets that could be game changing. They have strong competitors in each category, but Microsoft has financial resources and engineering talent the envy of companies (and governments) worldwide. It just takes perfect execution.

Remember, Steve Ballmer, ‘Developers, developers, developers’!