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- inactive, on 10/12/2007, -2/+15That was a settlement to a patent dispute, not a partnership. MS invested $150 million in Apple (non-voting shares), in exchange, Microsoft and Apple were granted license to use each other's existing patents, as well as new patents developed for the following 5 years. The agreement ended in 2002. That's why there haven't been any recent patent disputes between the two companies.
It's worth nothing that Steve Jobs saved Microsoft in 1977 when he purchased a 10-year royalty-free license to Microsoft's Basic for a one-time payment of $10,500, which became Applesoft Basic for the Apple ][. It was a one-sided deal that Bill Gates never would have made, except that Microsoft likely would have gone under without the cash.
10 years later, in 1987, when the license was up for renewal, Gates could have ruined the Apple ][ by revoking the Applesoft license. Instead, he gave it to Apple in exchange for a Visual Basic-type application called MacBasic that Apple was developing for the Mac. Gates then killed MacBasic, ensuring that Microsoft's was the only Basic development tool available on the Mac.
10 years later, in 1997, the patent settlement and the $150 million dollar investment that saved Apple.
10 years later, in 2007, ... Zune? iPhone? Vista? Leopard? Something's got to be brewing between these two...
Perhaps in 2017 Apple will be due to save Microsoft again. - inactive, on 10/12/2007, -2/+11In a sense, this is old news (wait....hear me out!). If you read biographies of Microsoft, or have just been around the tech industry for a while, you know this is standard practice for them. There have been numerous, numerous occasions with companies large and small, where Microsoft's modus operandi is:
1.) Offer to buy out said company if MS can afford it
2.) If buying doesn't or won't work, offer a partnership
3.) Assuming a partnership goes ahead, after a little while, things go one of two ways - MS will either put up with you for a while (especially if you're a big co), or more often, internally rip-off your technology in a separate project, then cut you loose and take the market. There is a reason MS are traditionally compared to "The Borg" in Startrek TNG - the assimilation behaviour is similar (hence the Bill Gates Borg icon for MS stories on Slashdot).
4.) If a partnership didn't work, they will copy your product (even to the point of incurring lawsuits - this is not a problem if profits exceed payouts), and put you out of business.
One more recent example is their collaboration with Sendo in the UK on all the Windows Mobile phones (Sendo were the first MS licensee). MS stole Sendo design and tech, and gave it to HTC in the Far East (hence HTC's line of phones that looked and worked very like Sendo devices), Sendo sued, then the loss of market share and business and litigiation costs put Sendo out of business. Problem solved for MS. - inactive, on 10/12/2007, -1/+8You realize most people expect the full-screen iPod interface on the iPhone will make its way on to the next generation iPod models.
- cool8man, on 10/12/2007, -4/+9All this partnership would have meant was that Windows Media Player and WMA files would work with the iPod in addition to iTunes and AAC. In otherwords it would have been something good for consumers. Of course Apple never would have gone for the deal since they had no incentive to do so. It is still baffling to me how Microsoft and it's music/movie/tech industry partners managed to all lose against Apple alone. I can't understand why most consumers would choose the most restrictive of all the DRM based music services (the only one that requires official Apple mp3 players) and one of the few music stores left that doesn't even offer a subscription service. People investing heavily into iTunes content are essentially saying they will use Apple products for the rest of their life.
Even though MS was late and the WMA music stores were a little late to the market, I think the main culprit for why they appear to have lost was the lack of a sexy stylish piece of hardware. I still don't think it's too late to take down the iTunes/iPod complete domination. I think the cellphone companies and mobile phones have been chipping away at the iPod and mp3 player market in general and I think that Sandisk has given Apple a decent fight in the flash based mp3 player market. I think that Microsoft's current approach is all wrong. A less attractive iPod with 1 or 2 new features is not the way to beat Apple. They need to provide a piece of hardware which is leagues better and truly impressive. But MS is not a hardware company and so the ones at fault are really the electronics companies that failed to market a product that made the iPod feel obsolete.
I think the reason that Apple has jumped into the cellphone market is because of the threat that the mp3 player is facing of simply becoming a feature rather than a device. (Same thing that happened to Tivo.) I think that the iPod was starting to lose some business to the fashion phone industry (ie. Chocolate Phone), so Apple did what they had to do. Unfortunately for MS what Apple did (making the iPhone) is what MS should have done instead of Zune. MS should have put all of their focus on working with the 4 major cellphone carriers and working with the fashion phone manufacturers who have shown some modern tech competence (LG, Motorola, Samsung). Instead MS only focused on the business smartphone industry (HTC) with Windows Mobile and provided no software solutions for average consumer. This is the one area where MS maybe still has a chance, the one weak point where they can beat Apple. The iPhone has been priced out of the consumer market and as a first generation device it is guaranteed to have some major short comings. iTunes still has no subscription capabilities. MS needs to have a sitdown with companies like T-mobile and Danger or Sprint/LG/Samsung/Moto and talk to them about how they're going to deal with the iPhone/Cingular problem. - lopla, on 10/12/2007, -3/+6This is a lot to ponder, but not yet. I'll be back in 30, gotta go take a huge vista.
- inactive, on 10/12/2007, -1/+42003? It's amazing that it took them four years to put together a decent iPod competitor/clone, only to be trumped by the iPhone a few months later.
- Yashar, on 10/12/2007, -3/+6@ Mythos
http://www.applegazette.com/wp-content/uploads/2007/01/time8_18_97.jpg
and Quix,
MS Office for the Mac ring a bell? - MacSuxWindozSux, on 10/12/2007, -0/+3Many people have a vested interest in seeing Zune fail, and it's easier to make happen when it's brand new.
So it didn't sell as much as the iPods this christmas...
Not being a runaway success does not equate to dismal failure.
The sharing feature sucks. But I would turn it off anyway.
Zune store not as big as iTunes? Thats what MP3 is for.
When you're not splitting hairs, most of these players are about as good as the others. Most people don't own an mp3 player, and would be fine with any of the leading models. - colincornaby, on 10/12/2007, -0/+3"I can't understand why most consumers would choose the most restrictive of all the DRM based music services (the only one that requires official Apple mp3 players) and one of the few music stores left that doesn't even offer a subscription service."
Zune Marketplace is just as restrictive, if not more. Remember, Zune marketplace is not Plays For Sure. That music is locked into the Zune. - diggtomanjeri, on 10/12/2007, -0/+3The only thing a partnership would result in would be 1 good company and 1 mediocre company both sucking. They have completely different design and marketing philosophies, it would have tanked.
- g3r4, on 10/12/2007, -2/+4So the iPhone is leading to the kill, but didn't do anything by itself, so paulmdx's point is valid. Now when the 6th or 7th Gen iPod [Unsure as I don't really keep up on it] comes out and has the screen, that WILL massacre the Zune, barring any Zune updates that could compete.
- meatmcguffin, on 10/12/2007, -1/+3Nicely said but it's worth noting that when the $150 million was exchanged, Apple had billions in the bank and were far from financially beleaguered.
- kelly, on 10/12/2007, -0/+2They already split up Microsoft?
When? - sleepwalkers, on 10/12/2007, -2/+4As techies, we all know about SanDisk's nice flash-based players, the adequate Creative Zen line, etc.
But the consumer doesn't. The consumer doesn't care, either. Plus, have you ever tried using a phone as your MP3 player? It's not a pleasant experience, even if it's an "MP3 player phone". Apple is trying to get into this market before it gets any better, not because they think it's already a legitimate contender.
The reason Microsoft failed with the Zune now is that the iTunes/iPod system is deeply ingrained into a lot of general consumer's minds. Not to mention, Apple seems to do what they want with hardware, and other companies flock to them because they seemingly can do no wrong when it comes to consumer electronics. - meatmcguffin, on 10/12/2007, -0/+2Um...yes. I couldn't find a source but i assumed it was around 4-5 billion in cash, one google search later and i ended up with a digg page.
Read the comments here : http://www.digg.com/apple/Video:_Macworld_Boston_1997_(Microsoft_pulling_Apple_out_of_bankruptcy) - getgreg, on 10/12/2007, -0/+2Unless I'm missing something the article said the Microsoft considered a partnership, it doesn't say that Apple was interested.
I'm sure many companies would love to partner with Apple, but Apple seems quite confident doing things on their own... - NSResponder, on 10/12/2007, -0/+1Sure, just ask Rob Glaser.
-jcr - ClaiE, on 10/12/2007, -0/+1It could be great.... but Microsoft does not need Apple Inc. as Apple does not need Microsoft to make things to be changed.
- DwightSchruter, on 10/12/2007, -0/+1yeah so i have been working on this big case here but i just cant solve it.......why does zune suck so hard...but now it all makes sence.
- whistlerpro, on 10/12/2007, -0/+1I like how your comment pleases both apple and microsoft fanboys - clever. Very clever.
- WaterDragon, on 10/12/2007, -1/+2If they had merged, they had already agreed on a name to represent both companies:
Crapple. - muikano, on 10/12/2007, -2/+3I kindah wish the Zune was more successful. There's absolutely no pressure now on the iPod video. Godamn microsoft, if you would have made a better one, it would have forced the iPhone interface to be ported faster. Now we've got to wait until Apple gets their iPhone 10 million before we get our 6G iPod.
I swear to god, Microsoft, please release something better. Put up some sort of fight. Please. i want the 6G ipod bad. - Subtonic, on 10/12/2007, -0/+1Dug for their acknowledgment that other players weren't quite as slick.
Apple did the same thing when they weren't pleased with sales; they started the Apple Store. I'm sure a lot of Mac retailers weren't happy about that. But look now. Apple's on the rise - could they have done that if they left it up to their independent retailers?
So Microsoft took that same approach. They believed that they could do a better job than the others making these devices - and they believed that they needed to do so to have a snowball's chance in hell of rivaling the iPod. The Zune may not be that player, but it does have more appeal than the Creative stuff.
Moral of the story - If you want it done right, you gotta do it yourself. - NSResponder, on 10/12/2007, -3/+3When did Microsoft ever come up with a decent iPod competitor? The only thing I heard about was that "Zune" disaster.
-jcr - MacSuxWindozSux, on 10/12/2007, -2/+2That must be the "Big Mac" you had earlier.
- Santabot, on 10/12/2007, -2/+1Too bad they already split up Microsoft itself on the sole basis it was a monopoly, merging them and Apple would work? LOL
- kenvsryu, on 10/12/2007, -3/+1A supercompany everyone would love to hate. I like competition.
- whistlerpro, on 10/12/2007, -3/+1umm no
- cleverboy, on 10/12/2007, -3/+1It's amusing that Steve picked up on this quote and flaunted it around in his iPhone presentation.
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Jim Allchin, a 16-year Microsoft veteran and development leader on Longhorn/WindowsVista, "I would buy a Mac today if I was not working at Microsoft.", January 2004 e-mail to Microsoft CEO Steve Balmer and co-founder Bill Gates.
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Next time, watch that hyperbole, Mr. Allchin. You didn't need it to make your point, and now, you are simply comforting the enemy. Tsk, tsk. - paulmdx, on 10/12/2007, -7/+4You realise the iPhone is nothing like the Zune or the iPod? I wouldn't say the iPhone trumped the Zune any more than I'd say the fax machine trumped the waffle iron.
- Quix, on 10/12/2007, -7/+4Heh, you call that a partnership? I call that nothing more than a friendly handshake for a photo op. What was Apple and Microsoft's great collaboration after that "agreement?"
- inactive, on 10/12/2007, -14/+10Really, then the Rio should have 80% market share by now!!
Sure, it wasn't all that great, but honestly, neither was the 1st gen iPod and its sales figures seem to bear this out. Later iterations were and still are great though. - venuspcs, on 10/12/2007, -7/+1Hmm....Im an INTO (Introverted Intuitive Thinking Judging)
I am a:
moderately expressed introvert
moderately expressed intuitive personality
slightly expressed thinking personality
slightly expressed judging personality
The Portrait of the Mastermind Rational (iNTj)
Of the four aspects of strategic analysis and definition, it is the contingency planning or entailment organizing role that reaches the highest development in Masterminds. Entailing or contingency planning is not an informative activity, rather it is a directive one in which the planner tells others what to do and in what order to do it. As the organizing capabilities the Masterminds increase so does their inclination to take charge of whatever is going on.
It is in their abilities that Masterminds differ from the other Rationals, while in most of their attitudes they are just like the others. However there is one attitude that sets them apart from other Rationals: they tend to be much more self-confident than the rest, having, for obscure reasons, developed a very strong will. They are rather rare, comprising no more than, say, one percent of the population. Being very judicious, decisions come naturally to them; indeed, they can hardly rest until they have things settled, decided, and set. They are the people who are able to formulate coherent and comprehensive contingency plans, hence contingency organizers or "entailers." - Kragnerac, on 10/12/2007, -17/+4As they always say, "The early bird gets the worm."
- Quix, on 10/12/2007, -20/+4The tech boneyard is littered with the remains of those foolish enough to partner with Microsoft on anything.
Rest in peace, PlaysForSure partners and Novell. We hardly even knew ye.
(Not yet, but soon...) - Notyavgkat, on 10/12/2007, -30/+3I was just about to submit this badboy...u beat me 2 the punch
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