Is Microsoft a Consumer-Market Failure?

It’s a controversial screed, more than a little tendentious in tone, but there’s substance amid the zealous fervor of Daniel Eran’s post regarding Microsoft’s alleged inability to provide products and solutions that consumers truly want.

Here’s an excerpt from Eran’s piece:

. . . Microsoft hasn’t ever earned significant profits in the consumer hardware business, nor has its executives proven any business acumen in delivering what consumers want in hardware or creative entertainment, excluding, of course, Microsoft’s impressive and highly sophisticated keyboard and mouse division.

In fact, Microsoft only earns a tiny fraction of its revenues from sales to consumers; the majority of its revenues do not result from buyers choosing a Microsoft product, but from corporations and individuals buying a PC and being instantly bound in a End User License Agreement.

For my part, as I’ve mentioned previously, I believe Microsoft slowly is recognizing that it will see more revenue growth, greater profitability, and better overall business prospects in enterprise and SME markets during the next few years than it will in consumer markets.

Microsoft understands business customers better than it understands consumers, and it can more effectively leverage its Windows and Office assets in business environments than in the home or in mobile applications.

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