Microsoft: Flawed On-Demand Business Model

” Advertising isn’t enough to fund on-demand” says Phil Wainewright in his ZDNet blog, and he’s right:
“I am frankly bemused that anyone seriously believes Microsoft or anyone else is going to fund their on-demand applications from advertising revenues. The idea is complete bull, on two counts.
“First up, ads in applications don’t work. All the evidence from the past ten years of online services is that the more engaged the user is in pursuing an activity, the less likely their attention will be diverted by an ad. The sole exception, which of course is why Google AdWords has been so spectacularly successful, is search, for the simple reason that clicking on relevant ads is a natural extension of the search activity.”
So, what’s wrong with Microsoft?
I think they’re trying so hard to play catch up to Google, they are now resorting to launching stupid “me-too” business models which try to one-up Google. This is typical geek-panic.
What they need to do, is sip some tea, listen to JSB and John Hagel (aka JH3), and build a future “beyond-Google.”
What do I mean by this? Simply that they should build for the future without the shadow of Google crimping their thoughts. Seriously. If Microsoft would spend a little less time blogging and a little more time thinking, they could get their groove back.
Just ask JSB and JH3 what to do, MS!
And listen.

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