"Google Bans Use of Microsoft Company-Wide" is the headline on HuffingtonPost.com.  The reason given is that Microsoft had too many security issues.  This could be easily dismissed as a competitive trick.  Except for a couple of facts:

  1. Microsoft does have a number of security issues.  It's not just Google that's worried about the problems encountered when relying on Microsoft products.  While Microsoft is the gorilla, it does have problems.
  2. Today their are very reasonable alternatives.  Fifteen years ago Scott McNeely at Sun Microsystems tried to enforce the same discipline as Google. Only there ware no good alternatives to Windows and Office.  That has now changed. Significantly.

As Microsoft has lost share in all its products, it is worth noting that a leading-edge tech company is able to enforce, successfully, a ban on their products.  Aided by the fact that they can offer alternatives which are easy to use and better meet many user requirements today.  This is not good news for investors, employees, suppliers and customers of Microsoft.  A serious shift to alternative solutions has emerged, and Microsoft has given no indication it is participating in the shift.

The impact is amplified by SeekingAlpha.com's article "Apple's Growing Corporate Market Share." Like many businesses in a leading market share position, Microsoft has simply accepted that customers will keep buying their products.  But their near-monopoly is increasingly threatened as organizations realize there are very real alternatives.  Not just from Google, but from Apple as well as others.  As companies recognize that PCs are failing faster, and as managers are displeased by Microsoft requirements that they upgrade software with new purchases, corporate customers are looking for alternatives.  This can be easily dismissed as the behavior of a few "odd-balls."  But increasingly such behavior is becoming mainstream.  While Microsoft is busy forcing customers to upgrade, many companies are looking for greater stability and satisfaction with their information technology suppliers – including Microsoft replacements.

While Microsoft keeps struggling to maintain its customers, sales and share in its old business, Apple keeps moving forward.  This week SeekingAlpha.com also reports "Apple Hits 10,000 iPad Apps, Doubling in the Past Six Weeks."  Again, this might be easy to ignore for Microsoft (or status quo) fans.  But as the app library keeps building Apple keeps building a bigger advantage over everyone – including MicrosoftWhat do we think the future holds – a world full of laptops (as we know it today) or a lot more tablets and similar smart devices?  Increasingly, Microsoft is Defending its past position in the face of a tsunami of innovation for new solutions gaining adoption, and growing, very, very rapidly.

When you're the market leader it is easy to ignore competitors.  To dismiss them as "fringe" with "small share" and "not important."  But that is very risky.  Markets can shift really fast.  New competitors offer new solutions, and they allow customers to do new things.  They give customers new choices, and often customers who are less than thrilled with current solutions will switch.  As competitors make it easy to do new things, the customers switch even faster.  Before long the unexpected can happen, and leadership can switch very quickly.  Like Apple's market share in mobile devices exceeding that of Microsoft's – or Apple's cash hoard exceeding the market value of Dell (a supply chain partner of Microsoft). 

Microsoft is offering a real-time lesson to business leaders.  Planning your future based upon your past strengths is dangerousSmart competitors can offer alternatives faster than you think – and create market shifts that leave you in the lurch quickly.  It's a high-risk strategy to think you can succeed by Defending you past position when alternatives are on the horizon.

PS – ChannelInsider.com today published "Spotlight: 10 Things Tablet Computer Makers Must Do To Take On iPad." Item 5 is "Windows Won't Make Much Sense" Item 4 is "Chrome O/S Does Make Sense" Item 3 is "Give Android O/S Consideration".  For Microsoft this is a set of recommendations that cannot sit well. The market for laptops is predicted to peak and begin declining as users shift to smaller, easier products like tablets. The market pundits, as they recommend new products, are moving away from Microsoft products.  How long can Microsoft continue its focus on Defending Windows and Office?