Memo to Microsoft: You are either with us or against us
Tags: Branding, Microsoft, Marketing, Apple, Security, Spyware
The Wall Street Journal notes that Microsoft is in talks to purchase adware-maker Claria. Should the company do so, it would prove what many have always suspected: that despite all its claims of providing consumers with lower cost and innovative products, Microsoft brand stands for extracting maximum money from consumers, without regard for their interests, security concerns, or privacy.
For those unfamiliar with Claria, it writes software that delivers software like Gain that is one of the banes of the PC users's existance: pop-up ads. It further tracks user behavior and transmits logs of that behavior over the Internet for analysis by third parties. Many people refer to this type of software as spyware, since the ads don't really advertise the fact that they are tracking user behavior. And regardless of what you call them, all of these programs use fairly opaque end user license agreements which hide what they are actually doing -- and that no one reads anyway. Users install these programs when they mindlessly click through licensing agreements, typically associated with free software downloads.
What's Microsoft's excuse for getting into the spyware business? It fears Google is eating its lunch in the on-line advertising business, which, as it turns out, it is, and it feels that Claria could help them open new lines of revenue. But what Microsoft is missing is the undeniable damage and destruction Claria will do to its brand. As soon as consumers figure out that Microsoft is promoting pop-up ads as a competitive move, their image of Microsoft will drop like a stone. And should Microsoft ever start shipping Claria components as part of Windows, it can kiss any claims of promoting security first goodbye. The current security backlash against Microsoft will turn into a full-fledged revolt by both consumers and government agencies.
Now I'm sure someone will respond, but Windows is a monopoly! How can consumers revolt when there is no place to go? That objection is so last month. Apple has Mac OS X running on Intel hardware today. If there's a groundswell of consumers who want Mac OS X for their hardware, do you think Steve Jobs is going to say no? All he needs to do is offer a side-grade promotion -- one where you give us your old PC, and we'll give you a shiny new Intel-based Mac to replace it -- and he's off to the races. This strategy requires no change in development plans or hardware support, just plain and simple competitive differentiation -- the OS with no pop ups! -- and basic marketing.
This won't happen overnight. Microsoft already has a reputation for ignoring security that is doing its brand harm. But if Microsoft actually buys Claria, everyone will remember the date of purchase as the day when Microsoft turned against its customers -- and started its long decline.
The Wall Street Journal notes that Microsoft is in talks to purchase adware-maker Claria. Should the company do so, it would prove what many have always suspected: that despite all its claims of providing consumers with lower cost and innovative products, Microsoft brand stands for extracting maximum money from consumers, without regard for their interests, security concerns, or privacy.
For those unfamiliar with Claria, it writes software that delivers software like Gain that is one of the banes of the PC users's existance: pop-up ads. It further tracks user behavior and transmits logs of that behavior over the Internet for analysis by third parties. Many people refer to this type of software as spyware, since the ads don't really advertise the fact that they are tracking user behavior. And regardless of what you call them, all of these programs use fairly opaque end user license agreements which hide what they are actually doing -- and that no one reads anyway. Users install these programs when they mindlessly click through licensing agreements, typically associated with free software downloads.
What's Microsoft's excuse for getting into the spyware business? It fears Google is eating its lunch in the on-line advertising business, which, as it turns out, it is, and it feels that Claria could help them open new lines of revenue. But what Microsoft is missing is the undeniable damage and destruction Claria will do to its brand. As soon as consumers figure out that Microsoft is promoting pop-up ads as a competitive move, their image of Microsoft will drop like a stone. And should Microsoft ever start shipping Claria components as part of Windows, it can kiss any claims of promoting security first goodbye. The current security backlash against Microsoft will turn into a full-fledged revolt by both consumers and government agencies.
Now I'm sure someone will respond, but Windows is a monopoly! How can consumers revolt when there is no place to go? That objection is so last month. Apple has Mac OS X running on Intel hardware today. If there's a groundswell of consumers who want Mac OS X for their hardware, do you think Steve Jobs is going to say no? All he needs to do is offer a side-grade promotion -- one where you give us your old PC, and we'll give you a shiny new Intel-based Mac to replace it -- and he's off to the races. This strategy requires no change in development plans or hardware support, just plain and simple competitive differentiation -- the OS with no pop ups! -- and basic marketing.
This won't happen overnight. Microsoft already has a reputation for ignoring security that is doing its brand harm. But if Microsoft actually buys Claria, everyone will remember the date of purchase as the day when Microsoft turned against its customers -- and started its long decline.
posted by Carl Howe at
11:14 AM
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