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Microsoft is running a very confusing strategy here. Google understood that with Motorola and it's why they sold it off. Microsoft hopes to keep its monopoly in the PC space with its multi-OEM operating system, yet still try to get every PC consumer to buy its own devices. Something's got to give.

I expect Microsoft's partners will increasingly continue to push other operating systems into the market on their devices, even if initially it's not exactly what the market wants. But they will do it anyway, because they will increasingly hate Microsoft.

And it will work, because the PC ecosystem is much bigger than Microsoft, and Microsoft won't succeed fighting against it. They will lose more money from lost licenses than they will be making (in profit, since so far Surfaces have continued to lose them money) than they will be making from these devices.




Some speculation here.

There could be a multi-part strategy. Both Google & Microsoft probably covet the revenue and margins Apple received from selling their own devices. Those margins, in terms of phones and tablets are probably un-repeatable. Some next iteration of device however could contain offer big margins. That is something that could double Google's market capitalization. At the least Microsoft and Google understand that they need something to give them hardware experience.

Second, it allows Google & Microsoft to lead in hardware. Even if the Surface 3 flops, the OEMs have a guide pointing what is possible and which direction to go (or not to.) I imagined this was part of the reason why Google has had different manufacturers built their Nexus products.

The Surface buys Microsoft some time. The number of people who need Office and legacy systems is going to continue to shrink as special use case stuff is built -- whether from the analytical side like Tableau to something like FarmLogs. The operating system itself may very vanish in to the background, leaving us with some unix-based combination of Android and Chrome OS.


I think there are signs of change. I read somewhere that they are practically giving away the Windows mobile operating system.




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