Microsoft
has finally admitted that it mishandled the introduction of
controversial software licensing changes last year.
The admission came
from the software giant’s chief executive officer Steve Balmer in a
now widely publicised staff memo earlier this week. In the memo,
Balmer also urged staff that Microsoft needs to more customer
focused and develop an alternative to desktop outsourcing.
Ballmer admitted
the company made a mistake in the way it handled the introduction
of its software assurance licensing programme last July, which
introduced a subscription model. It caused outrage among users who
claimed that they were being forced into an upgrade they had not
asked for.
"As we add new
capabilities to our line-up, we must manage the release of these
technologies with the goal of simplifying and enhancing the
customer experience, rather than only maximising revenue growth,"
said Balmer.
He also emphasised
the need for the software giant to give users enough time to make
transition such as changes to licensing or ending product support.
User demands forced Microsoft to extend support for NT 4.0 until
the end of 2004. The company originally planned to end support on
31 December 2003.
"As we decrease
support for some legacy technologies in favour of new approaches,
we must provide appropriate notice, transition time and consistency
for customers."
Ballmer was also
concerned by the level of desktop outsourcing among enterprise
users and said that Microsoft would be dedicating time and effort
to develop an alternative model to outsourcing.
"We need an offer
of managed desktop services that we can make to enterprises – with
our partners – that is different from classic outsourcing. We will
assign key talent to this challenge."
While the company
has spent time talking directly to chief information officers and
business leaders on the Microsoft strategy, Ballmer said, "We must
also go back to our roots and reach out broadly – in person,
online, wherever and whenever we can – to generate enthusiasm
around the innovation we bring to market."
Ballmer wanted
Microsoft to generate the sort of enthusiasm the company
experienced in the early 1990s when Windows 3.x and the Visual
Basic development were introduced.
"We need to
stimulate communities that support what these innovations can do,
and create an emotional attachment to our products."
Testimony to the
success of its strategy in the early 1990s is the fact that there
are more than six million Visual Basic developers worldwide, making
it the most success developer tool.