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Microsoft - HP .NET deal

50 million dollar deal to cover 2 and a half years

         

cyril kearney

4:43 pm on Sep 24, 2002 (gmt 0)

10+ Year Member



A savvy company sees a down market as an opportunity to gain market share. When things are nose-diving, the chances of selling its way out are slim. A company’s only ray of hope is that its competitors are having the same problems.

The Linux/Apache/(PHP or PERL)/MySQL folks are enjoying some success because free gets more attractive as budgets get squeezed. Once we hit bottom, the traditional vendors should come roaring back. Their proven marketing skills will win new customers. Smaller companies will not have the resources to respond and will give up marketshare.

One might suspect that we are at the bottom by the Microsoft and HP deal. Fifty million dollars will be spent. HP will add 2000 salespeople and train 3000 existing salespeople to market .Net. Another 5000 consultants will be trained also.

Read: [biz.yahoo.com...]

While this is as very important, I also see that Microsoft still isn't addressing the five main reasons companies are holding off on implementing .Net.

1 - No one can articulate the benefits of .Net so that the guys holding the purse strings can understand it. Microsoft is selling: "Pie in the Sky". This is the showstopper!

2 - The new .Net server is expected to change the next version of .Net so that any .Net installation will be incompatible. Fear that scarce money will be wasted keeps management from doing anything.

3 - The entry price for Visual Studio is too costly for independent developers and consultants. Remember these folks have already made an investment when .Net was in beta and it hasn't paid off. Selling .Net is like selling refrigerators to Eskimos.

4 - Lack of integration with older investments. Web services too kludgy for widespread use. Too many older versions of SQL Server, Excel, Access and Word have to be upgraded before being able to benefit from web services. Small high payoff demonstration projects are impossible and management isn't will do make the huge commitment.

5 - SQL Server 2000 is seen as not really ready for .Net. Everyone is waiting for SQL Server .Net and management thinks the db development investment might be wasted.

Brett_Tabke

9:52 am on Nov 21, 2002 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Excellent points cyril. I think #3 tells the tale. They are aiming this square at the enterprise level trying to win some more server market. They can do .net without the server and they aren't going to get the server as long as Apache continues to out perform them hands down in the real world.