The Slow, Almost Imperceptibly Gradual Decline Of Microsoft

The market share of the Mac recently jumped to 4.7% from 3.6% only a year ago, a close to 30% increase in 12 months, and a 50% increase from a few years ago, and there's every indication they're building momentum. The Buzz over the new Mac OS is much stronger than the buzz was over Windows Vista (which is selling underwhelming numbers). With versions of Linux making additional gains, that brings the overall market share of non-Windows OS to about 7.5% and climbing. In a few years Windows market share could drop from what used to be total domination of the market to below 90%.
It might seem like a small number now, but it indicates a sea change, and it marks an end to Window's iron grip on it's market. 10 years ago, more or less 100% of the software people used was Microsoft. They devoured Netscape, Wordperfect, Post-Steve Jobs Apple, and pretty much every other company that dared cross their path.
But times have changed over the last 10 years. Our Search Engine is Google. Our web-based email is Yahoo mail, not the Hotmail of just 5 years ago. In growing numbers, our browser is Mozilla Firefox. And at an alarming rate, our Operating Systems are becoming OS X and Linux for many.
When Bill Gates entered the scene, the PC market was dominated by brilliant tech people with great ideas and not a lot of business acumen, and suit-and-tie corporate types like IBM that had money and ambition, but didn't have the vision required to blaze new trails. Bill Gates was vicious enough to swim with the sharks, and smart enough to know what was going on in tech-world. He took those ideas when slow-footed corporations with more money didn't see the vision, and ate everyone alive.
But times have changed. The corporations are getting more tech savvy, and the tech savvy are getting more business-oriented. Steve Jobs came back with a vengeance, and this time Apple has the business side of things down too. The Phd-types that run Google looked like Bill Gates shark-food at first, but Microsoft failed to crush them.
The Zune, the so called "ipod-killer", is dead in the water, selling far below ipod numbers. It even sells less than upstart music player Sandisk. Recently the head of the Zune department resigned. Absolutely disgraceful given Microsoft's reputation as a giant that wins every game it plays.
Microsoft is a huge corporation, a behemoth that controls large chunks of an entire industry, and even if they enter decline it'll take a decade before anyone really notices. But the days when everything Microsoft touched it destroyed are over. Consumers are more tech-savvy than they used to be, and they're starting to notice that so much of what Microsoft does is just imitations of other companies. They'll be a huge company for years to come, but things have changed. They're not the only game in town anymore.



6 comments:
I'm curious as to why you didn't mention Linux at all in the list of technologies that have started to replace Microsoft's products.
Seems that Linux is definitely among the threats, as it has become a highly suitable business operating system and is well on its way to becoming a suitable desktop operating system that unlike Mac OS X doesn't require specific hardware.
Good post overall though.
I would also vouch to say that the world would be a better place if Microsoft got off its bum and started reassessing what is needed in the market instead of riding the wave of brand name recognition.
A lot of what my research has to do with is giving a voice to marginalized groups for which Windows is a completely unrealistic (and culturally irrelevant) operating system interface to use. The desktop metaphor is dead, and will soon hopefully be replaced.
Ring us up when the Mac numbers hit 10~15%. 8)
I think Mac is growing steadily, but as Brandon mentioned, linux (and the other FOSS OSes) is partially responsible for gradually eroding the Windows myth.
Ubuntu is very strong on the PC desktop/notebook side and if it continues on the current trend, looks to gain more than OSX.
What's ironical is that it seems one always become the evil/beast one start off to destroy/defeat. MS set off to upseat IBM as the software company in the computer industry. At least on the PC side, it has succeeded unanimously. Now, after beheading the beast, it has become the beast it slaughtered and become the new BigBlue.
Will Linux become the next BigBlue in time to come when it reaches mass market dominance? Or will the OpenSource structure prevent such a sad and ironic fate?
What of Apple? IPod has been around for the past 5 to 6 years, while Apple is only gradually picking things up in the past few years, riding on the economic growth brought by the ipods. If they reach market dominance, will they not become the evil that most people see MS as?
Only time will tell. 8)
Brandon, I recently read that Linux now has a 2.8% share of the home market, and I’ve been surprised to see how many people visiting this blog use it. I focused on Apple because while Linux is making inroads, and I’ve heard it’s an OS, from what I’ve seen right now it’s still most popular with developers and people that are generally quite knowledgeable about computers, far more so than the average person.
People knowledgeable about computers have praised the Mac for years, but what’s surprised me is how much it’s made inroads among average consumers lately, and how much more comfortable so many seem to be about switching.
Given their rate of growth I don’t think a 10-15% market share over the next few years is an unrealistic goal for them at all. In fact, knowing what we know of Steve Jobs I wouldn’t be surprised if he’s setting his sights higher.
That isn’t to say Mac OSX is necessarily better than either Linux or Ubuntu. But the larger market share gives Mac the advantage Windows has had for so long, externalities. Externalities is the phenomenon by which a product becomes more valuable merely by the number of people that use it. Myspace is a good example- there might be better social networking sites out there in terms of software, but Myspace is where your friends are, so that in and of itself makes it the best. Napster P2P clones were even better examples. What good is a superior P2P if there’s no-one else on it to download from?
The biggest hurdle for Mac since the 90’s has been a relative dearth of software compared to Windows, which obviously is the main focus of developers. If Mac’s market share has increased by 50%, that has a clear impact on the number of developers willing to make Mac versions a priority. It’s like a snowball rolling down a hill, the further it goes, the bigger it gets and the more momentum it builds, If it reaches over 10% and developers begin to support it more, it could reach a tipping point, and the number of people willing to switch to Mac could spike quickly as more and more people suddenly become comfortable switching. So in a few years, people could actually be switching at a *faster* rate than now.
Again, this isn’t to necessarily say that Mac is most deserving of this snowball effect, just that at this point it appears most likely to get it.
In the end, despite my focus on average users, average users are getting more knowledgeable, and more open to the idea of more choices with operating systems, so the days of one-size-fits-all OS’s could be coming to an end. Ten years ago, a lot of people felt it was a headache just learning how to use windows, they didn’t care if it wasn’t the best, learning one was enough. More and more people are losing that attitude and are willing to branch out and find something better.
It’s hard to say if the world would be a better place if Mac was the dominant system instead of windows though. Like you said cgxz, people in power have a tendency to go bad. I think Steve Jobs is a visionary that has revolutionized the computer industry several times over, whether he has much technical skill or not. But at the end of the day, do I trust him with absolute power over the world’s OS’s? Not really!
Whew, long comment…I should just’ve made another post : )
I find it amusing that as Microsoft is losing market share to the Mac Bill Gates is donating a huge share of his fortune to development projects, while Steve Jobs was in a share scandal. (I know Jobs has always been a nut case and it's just been balanced by the Mac being the underdog, but the Gates thing is definitely new.)
I'm all for taking the right mouse button away from the general public, the tech support spiel of "no, when I say 'click' I mean 'left-click' unless I actually SAY 'right-click'" is a frickin pain in the ass.
"I find it amusing that as Microsoft is losing market share to the Mac Bill Gates is donating a huge share of his fortune to development projects, while Steve Jobs was in a share scandal."
Bill Gates relinquished a lot of his power at Microsoft a few years back to focus more on philanthropy. At the time I was suspicious...but maybe he really is letting things slide a bit. Maybe age and becoming the richest man in the world finally did mellow his need to be #1.
Steve Jobs gets this reputation of being Luke Skywalker to Gate's Darth Vader...but in his personal life he's actually not that nice of a guy.
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