This document discusses Microsoft's practice of pushing unfinished software updates over the internet. It provides the history of software releases prior to internet updates when everything was included in the initial purchase. Microsoft now uses frequent internet updates to quickly fix issues, improve security and compatibility, and lower costs. While this allows for continuous support, it also means users become beta testers and forces adoption of new versions. The document examines the pros and cons of this approach, how the update process works, and the economic impact of Microsoft losing some market share as frustration grows over buggy software and competitors innovate.

1. THE PUSHING OF PROGRAMS
AND OPERATING SYSTEMS: THE
GOOD THE BAD AND THE UGLY
FOR THE USER AND MICROSOFT
Howard Community College
7/4/12

2. Objectives
• Why does Microsoft produce unfinished
products that are updated over the internet?
• How does the process work?
• What is the advantage of using this process?
• What are the economic consequences to
market share?

3. Why does Microsoft
produce unfinished
products that are
updated over the
internet?

4. History prior to
internet updates
• Before internet updates,
programs were purchased
and the majority of support
came in the box. If you
registered your product,
when and if there was an
update CDs would be sent
out or need to be
purchased to provide the
updates. Time from idea to
product release was
extremely long and testing
was intensive and costly.

5. Reasons for product updates
• Expedient method to fix
post release errors
• Security fixes
• Compatibility fixes
• Reduced cost and
shortened supply chain
cycle
• Continuous product
support Infrastructure

6. Pros for product updates
• Enhanced compatibility
and security support
• On going product
management support

7. Cons for product updates
• Sloppy product releases
• Consumer becomes beta
tester
• Forces adoption of new
programs before
expiration of older ones
• Frustration may lead to
product substitutions

8. How does the
process work?

9. How updates work.

10. What is the
advantage of
using this
process?

11. Advantages of pushing product
updates
• Reduced cost due to
internet based transport
system vice disks
• This reduced cost can be
used to initially
introduce program at
lower pricing
• Flexibility to change
program at anytime at
any level and complexity

12. What are the
economic
consequences to
market share?

13. Google Analytics
Microsoft Loss of Market
Share
2008 Microsoft’s market share
dropped to 90%

14. Microsoft Loss of Market
Share: Browsers
October 2008 January 2009 Change
Internet Explorer 71.27% 67.55% -3.72%
Firefox 19.97% 21.53% +1.56%
Safari 6.57% 8.29% +1.72%
Chrome 0.74% 1.12% +0.38%
Opera 0.75% 0.70% -0.05%
Netscape 0.45% 0.57% +0.12%
Mozilla 0.09% 0.07% -0.02%
Opera Mini 0.06% 0.06% 0.00%
Playstation 0.03% 0.04% +0.01%

15. Microsoft Loss of Market
Share: OS
October 2008 January 2009 Change
Windows 90.46% 88.26% -2.20%
Mac 8.21% 9.93% +1.72%
Linux 0.71% 0.83% +0.12%
iPhone 0.33% 0.48% +0.15%
Playstation 0.03% 0.04% +0.01%

16. Microsoft Loss of Market
Share

17. Discussion
• Although the loss in
market share is not
significant, frustration
with sloppy software and
competitors developing
innovative products
slowly are nipping at the
heels of Microsoft.
Hopefully this
competition will improve
the market production
and quality assurance.

18. Summary
• Like it or not this method is here to stay and
has good in the forms of product support and
internet security. The bad is that programs
seem unfinished and are not as polished as
they were pre internet updates. The method
has become an industry standard.

19. Resources
• Brodkin, Jon. Windows drops below 90% market share. 2 Feburary 2011. Internet. 10 June 2012.
• Dignan, Larry. Buggy software: Why do we put up with it? 16 July 2010. Internet. 10 June 2012.
• Gruener, Wolfgang. How serious is the market share loss of Microsoft’s Internet Explorer? 23
December 2008. Internet. 10 June 2012.
• Mann, Charles C. "Why Software is so Bad." Technology Review July/August 2002: 33-38.
Academic Database / Journal.
• Numenware. Why Microsoft creates buggy software inefficiently. 2 August 2004. Blog. 10 June
2012.
• Petersen, Alan. Microsoft Buggy Software Release It Anyway Syndrome. 9 July 2007. Internet
Marketing & Infopreneur Blog. 9 June 2012.
• Sams, Brad. Six reasons Microsoft will continue to lose market share. 21 November 2008.
Internet. 9 June 2012.
• Spagnuolo, Chris. Releasing buggy software intentionally. 20 November 2008. Blog. 9 June 2012.
• Thomas, Trisha. Google Analytics data shows Microsoft Windows losing market-share due to
phones & tablets. 2 July 2011. Internet. 10 June 2012.

20. QUESTIONS?