It’s that time of year again: tax time.  As we all pay buku to our local CPAs to fill out forms we’re either too incompetent or too uninterested to fill out ourselves, we cringe at the idea of a federal tax audit and dread dealing with IRS agents on the phone: people who won’t give you their first names and only want to be called Mister This or Mizz That.

At the same time, at least in 2009, Microsoft is introducingperpetrating the most ambitious domestic licensing compliance audit in its history, calling any company it suspects may be out of compliance and requiring them to demonstrate that they “own” all the Microsoft software they’re using.  Microsoft’s SAM group is using tersely-worded phone conversations and heavy-handed verbal and written threats about escalation, audits, and legal action in order to ensure compliance. Call it revenue preservation if you want.

I call it lawsuit bait and a huge waste of my clients’ time.  Yet, Microsoft isn’t going to wait until economic conditions have improved to do this. They’re hurting too, and the easiest way to shore up revenue is the horse technique: go back to the same trough and drink some more.  Call existing customers and make sure they’re loaded with all the licenses they could conceivably need.

This technique is a bit of a gamble, as those being audited are mostly volume licensing customers–precisely the type of customers who have been laying employees off the last year or so.  Indeed, these customers’ licensing requirements have in fact gone DOWN, meaning that, for many companies, the amount of Microsoft software that’s actually needed might be less than what the customer has paid for.  Of course, when I asked my SAM agent if Microsoft would compensate me for my time if we were found to be over-licensed, he promptly responded with a proverbial ‘hell naw.’

I then informed him that if he is going to make arbitrary decisions about how my clients’ consulting time is spend (it does take me time to fill out MS’s compliance paperwork properly), he needs to give me or the client more notice.  I can picture lean I.T. staffs whose projects have to be put on hold all because pouty Microsoft is throwing a licensing tantrum. So much for the server upgrade because Ballmer and the gang decided to foist this lofty audit on our I.T. guys. It’s more than a little absurd.

Microsoft, you’re going to piss off a LOT of customers with this behavior.  (Something tells me your biggest customers like NASA and General Motors aren’t getting harassed on the phone by a war-dialing twenty-something with an autographed copy of Introduction to Microsoft Licensing on his book shelf.)

Bottom line, is if you’re going to show up out of the clear blue, and require something of my time, ie. boss me around, you better be either the IRS or my Mom.  Those are the two people for whom I jump through hoops.

I’ve gabcasted a new discussion between Katie Knight and I about the state of the newspaper business and its transition to electronic distribution. The main question: should newspapers attempt to build or participate in social networks?

Social Media and Newspapers #1 – Newspapers and Social Networking: Bridging the Gap

How do newspapers embrace social media in order to retain and grow their content audience?

Listen now.

To read my conclusions about two of the latest GPS-related software package for OS X, head over to Macworld.com and checm ‘em:

RouteBuddy

TomTom Home

It has become obvious in the last several years that Apple is, first and foremost, a device manufacturer, and their flirtation with software (OS X, iLife, Logic, etc.) is borne as an extension of their inventive nature. In other words, Apple doesn’t necessarily want to be a software company, but they need to be.  It just so happens that they’re probably the best software company in the world (in recent years anyway).

So how is it that you come to be the best at something that isn’t your core business, just so you core business can flourish?   Well, you avoid the pattern exhibited by Microsoft–cut into as many markets as possible while clutching onto second-rate products (Live Search) and outmoded business models (XBox Live).  Ultimately this will mean that Apple’s failures over the years–their poor product offerings like .Mac–were things that they wisely dumped instead of clinging stubbornly onto like Redmond always seems to do.

Apple recognizes that–when THEY put out a crap service like .Mac–they have to cut their losses. Hence no more .Mac.  Ultimately, the same will be true of Mobile Me, when Google and its ilk replace every feature of Mobile Me with something better. And then, Apple will likely dump Mobile Me rather than try to compete in an area where they aren’t wanted and can’t do better.

This is why Apple won’t embrace Live Search. If they’re willing to cut their own failed initiatives and recognize that somebody else can do something better (Google Sync, anyone?), then why in the world would they embrace Live Search.

Snow Leopard or not, I don’t expect a Microsoft/Apple search alliance.

Welp the deed is done. I’m on the road to wellness. I discovered Frost and Blackfield using the Genius recommendation on iTunes. I was playing Muse at the time.  So far I love Frost and Blackfield both, so the Genius worked. First time I’ve tried it.  I’ll post again asap.  Seeya.

K, guys, when some impressively large fella is rapping to his MacBook Pro about social networking, can you really question if this social networking thing is mainstream?

As an independent consultant and service-business owner, these challenging times (especially here in the midwest) have reminded me what makes a business successful.  I’ve enumerated the elements of my business’s success here–they’re difference-makers for me, and the reasons my firm will outlast our competition during this downturn:

1 - Place customers’ needs above everything. Don’t want to take a call for help on a Saturday night? Tough, your customer is in trouble and they need you.  So put on your snow boots and go help them.

2 – Call your customers even when they’re not calling you.  Demonstrate concern even when there’s no money changing hands.  It will come back in the form of more business.

3 – During lean times, no customer is too small, unless they take your attention from a bigger customer.

4 – Use inexpensive labor resources to decrease your customers’ costs–before they do it on their own.  When a lot of good unemployed talent is on the street, you can take advantage of that talents’ recent availability in order to drive your customers costs down.   It’s called outsourcing, or as I prefer to put it, localsourcing.  You provide less expensive labor options for your clients and get a bigger chunk of their pie at the same time.

5 – Spend money on marketing.  Yes, don’t shrink away from the guerrella marketing attitude that got you to your current success plateau just because there are economic clouds raining outside your office window.  In fact, marketing is received more postitively in a tougher economy that it is when things are hot.  When times are tough, your potential clients are more likely to switch vendors, so don’t stop marketing to them, and maybe they’ll switch to you.

6 – Reward business growth more heavily than normal.  Motivate your business development resources by giving them even bigger rewards for growth.  Assuming you’re not already in the red, put your money where your mouth is and remind your employees that “we’re in grow or die” mode.

7 - Retain your best people.  During downturns, good salespeople are going to get recruited while poor ones will get kicked to the curb.  Keep your best people happy, productive, and let them know how much you appreciate them–so you can keep them out of job interviews.

8 – Only take profitable work.  Don’t get caught in bidding wars just to keep your labor resources working. When we come out of this slump, you’ll regret the burden of a bunch unprofitable work that you took on just to keep your people employed.

9 – Outsource, outsource, outsource.   I already suggesting providing outsourcing.  Now practice what you preach and use it, too. Give your specialized internal projects to a local firm. That new in-house trouble-ticketing system?  That server upgrade your I.T. guy has been putting off?   Shop them locally and you’ll be pleased with the results you get by using a specialist.

10 – Invest in competitive advantage.  While your competition “waits it out”, invest in technologies and alliances that will bring you out ahead.  This might mean refitting your computer network or putting that new customer contact management solution in–so it’s ready to rock when the downturn comes to an end.

The Lorain County Chamber ran a great story about Best Technology Strategy on their home page today:

Despite the difficult economic climate in northern Ohio, and an abundance of well-entrenched competitors, Ted and his business partner knew that Best Technology Strategy was going to be a success. Picking the company’s area of specialty was the first challenge. Networking and helpdesk support seemed to represent the greatest need among Lorain County businesses, so that’s what the firm started with.

Check the rest of it out.