Analysts challenge Microsoft's commitment to Windows RT

Minus major changes in Redmond's strategy, including slashing the price of licenses to OEMs, experts doubt Windows RT's survival

By , Computerworld |  

Even then, Microsoft's operating system is at a disadvantage when pitted against either Android or iOS, since Microsoft's business model as a software seller -- even though it's trumpeted a switch to services and devices -- means that it must charge OEMs for a Windows RT license.

Google gives away Android, so manufacturers of Android tablets don't incur a comparable expense, and Apple limits iOS to its own iPad, absorbing the cost of development in order to pull in large profit margins on the hardware.

All things being equal, then, an Android tablet will always be less expensive for an OEM to build, and less expensive at retail.

"But it's not just the licensing costs that are a problem," said Bob O'Donnell of IDC. "Windows RT breaks the core value proposition of Windows. People use Windows because it's compatible [with legacy software]."

Windows RT, unlike its bigger brother Windows 8, cannot run traditional Windows software, only the apps created using the WinRT API and distributed through Microsoft's app store.

O'Donnell said that Microsoft would, if it hasn't already, cut the price of Windows RT licenses sold to OEMs in an effort to entice them to manufacture tablets powered by the OS. "But that leaves the fundamental problem around compatibility," he observed. "RT implies compatibility because it's using the 'Windows' name, but [the fact it doesn't offer compatibility] has been lost in the noise."

Confusion ensued, he said, and continues.

Milanesi declined to bet that Microsoft would slash Windows RT license prices -- or make the even more aggressive move of giving away the OS -- but said Microsoft has to do something to cut OEM costs.

"Unless [Windows tablets] can match the $199 price of Android tablets, it's going to be really hard for [Microsoft and its OEMs]," said Milanesi. Tablet pricing is polarized, she added, with Android at the bargain basement end and iOS at the top. That gives Microsoft a tough choice and less maneuvering room than it would have had had it entered the tablet market a year or year-and-a-half earlier. "From an app perspective, Microsoft can't get a premium for Windows RT," she added, referring to the relatively small size of the Windows Store and the lack of what she, and others, see as must-have, high-quality apps.

Wes Miller, an analyst with Directions on Microsoft, agreed that Windows RT faces a bumpy road because of its app inventory. "If you're going to have someone buy a device that requires all-new apps," Miller said, of Windows RT, "than you need to have an amazing collection of apps."

That is something Windows RT and the Windows Store does not have, Miller argued. "There's still not a huge collection [of apps] that pull you into the platform. But like a lot things Microsoft does, Windows RT is a long-term bet."


Originally published on Computerworld |  Click here to read the original story.
Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

Answers - Powered by ITworld

ITworld Answers helps you solve problems and share expertise. Ask a question or take a crack at answering the new questions below.

Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

Ask a Question
randomness