It’s clear to me now that Microsoft, one of the “great American companies” I often refer to when talking to my kids about things I admire in business, has switched from advancement to entrenchment as its retention strategy for existing customers. That is, rather than move their platforms forward and pull global businesses along with them, a more defensive strategy is emerging–one where Microsoft tries not to hemorrhage too much business to Google and even Apple by reminding companies how cheap it is NOT to migrate away from the Microsoft eco-system.
A fantastic example of this dynamic came to light today when it was announced that the next version of Microsoft Office for Mac will replace Redmond’s clunky Entourage e-mail app with an actual Mac OS X version of Outlook, the predominant e-mail application used in medium and large enterprises. My company alone supports somewhere in the neighborhood of twelve-hundred Outlook nodes at about fifteen different firms. So a Mac version of Outlook, as the t-shirt saying goes, is “kind of a big deal.”
But what’s an even bigger deal is that Outlook once ran natively on the Mac–on Mac OS 9 anyway–and shared a great deal in common with its Windows cousin. And, suffice it to say, it was a better product than its redheaded stepchild, Entourage. It makes me wonder why they ever canned Outlook on the Mac to begin with.
Now I’m beginning to understand that Microsoft is on an all-hands mission to get as many enterprises, large and small, as entrenched as possible before Google and other market players really step to the plate with something that competes with Microsoft, and in particular Outlook and Office. (Anybody who suggests that Google Apps currently beats Microsoft Office is smoking some pretty harsh crack, sorry guys.)
Entrenchment is the key to damage control: keep the customer believing that it will cost them more in dollars and difficulty to move away from Microsoft, no matter how compelling the alternative, and they’ll stick with Microsoft. This was how they (soundly) destroyed Lotus Notes, and Redmond’s incredible staying power may allow it to stave off Google Apps for quite a few years to come.
