Feeds

MS moves to grab slice of software distribution

Dump the wholesalers and buy stakes in new channels - the pattern is clear

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Evidence is mounting that Microsoft is supplementing the DOS (now Windows) tax by trying to carve itself slices of product distribution, while at the same time reducing its use of wholesalers. The recent cable and satellite investments are intended to ensure that Microsoft can begin to get some revenue from content delivery. At least this should do better than keeping the cash in the bank. President Steve Ballmer confirmed last week in a Handelsblatt interview that Microsoft is talking to Deutsche Telekom about an investment, but he also added that the main objective was to find further ways of distributing its products. It seems that Microsoft and Bertelsmann (AOL's perhaps tactless 50-50 partner in Europe) have offered $5.6 billion for DT's cable network, according to Der Spiegel, somewhat above the $5 billion believed to be being considered by Deutsche Bank. The question immediately arises as to how Bertelsmann could distribute AOL through such a cable network, as well as encouraging MSN. Microsoft has never liked allowing wholesalers their margin, so in a separate but perhaps strategically linked disintermediation move, rubber stamped by Ballmer, Robert Bach, the new head of the home and retail division, has decided that the company could do without distributors for products like Encarta and games. Microsoft will sell directly to the 12 largest retailers that account for 85 per cent of sales. Ingram Micro, Tech Data, and Merisel have been tight-lipped about this so far, but Ingram Micro may play lesser role by warehousing and delivering products. There are 17 million subscribers, so $329 per subscriber looks realistic for a monopoly acquisition. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
Inside the EYE of the TORnado: From Navy spooks to Silk Road
It's hard enough to peel the onion, are you hard enough to eat the core?
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.