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CEO of Deal Architect, a top advisory boutique recognized in The Black Book of Outsourcing, author of a widely praised book on technology enabled innovation, The New Polymath, prolific blogger, writing about technology-enabled innovation at New Florence, New Renaissance and about waste in technology at Deal Architect.  Previously Analyst  at Gartner, Partner with PwC Consulting. Keynoted at many business and technology conferences and has been quoted in the Wall Street Journal, BusinessWeek, The Financial Times, CIO Magazine, and other executive and technology publications.

2 responses to “Microsoft: A new era of vertical integration?”

  1. Going Vertical? Know the True Capabilities of Your Software » The TEC Blog

    […] to minimize its own costs and adversely affect its competitor’s costs. A more recent example is Microsoft’s foray into the tablet market, with the hopes of dampening Apple’s current […]

  2. Craftsman

    This is a play by Microsoft to control channel margins. By selling this on line and in their stores, they can control the channel margin, just like Apple does. The result will be Best Buy and others wanting the device and entering into bad deals for dealer margin. This will allow Microsoft to sell their device with more features than the traditional PC manufacturer. So in doing this, they remove around 35% of the margin that went elsewhere from the product, allowing them to make a device with much better features than the traditional PC manufacturers. If this is successful, it will be a mater of time before Microsoft expands the product line to build other devices, which means the end of the PC market as we know it. Microsoft will continue to build more Microsoft Stores and end up dominating consumer PCs and using their already existing sales force, will go after the Corporate Market. Time to say good by to Dell and HP. Lenovo will remain in China (Government helps them) and they allow machines to ship with out software allowing boot leg machines to be built.

    For those who dont think this is the case, Look at what Samsung is doing.. They are the only smart PC company around. The rest of them will die the slow drawn out death.