iWork by the Numbers: No Threat to Microsoft. Maybe. [UPDATED]
iWork by the Numbers: No Threat to Microsoft. Maybe. [UPDATED]
by , 5:30 PM EDT, August 9th, 2007
Microsoft earns nearly a billion dollars each year on MS Office sales to Macintosh customers. It commands 91 percent of the Mac market for that product category. iWork, on the other hand, has about 9 percent of that market. As a result, even the addition of Numbers is unlikely to affect Microsoft, yet the cold-war-like game between Apple and Microsoft remains convoluted, and now Google has inserted itself into that war, according to Business Week on Thursday.
There was a time when Apple needed Microsoft's benevolence to survive as a company. Some felt that Apple's movement into an "Office" competitor with iWork was a risky affair, a statement that Apple no longer needed Microsoft. Yet one undeniable fact has remained. Microsoft makes an enormous amount of money from MS Office on the Mac.
Despite that, the situation for Microsoft software on the Mac is looking worse and worse. Office 2008 for Mac is seriously delayed. Gone is Virtual PC. (However, with good reason.) Gone is MS Explorer for the Mac. Gone is the Windows Media Player. Microsoft appears to be backing away from a lucrative market just at the time when Apple's success is soaring, according to Arik Hesseldahl.
The question is, why does Microsoft seem so indifferent to the Apple market opportunities given Apple's success? On top of that, with Microsoft's total domination of Office on the Mac, one has to wonder why Apple bothers with its own suite. Perhaps it's only to punctuate the fact that customers do, in fact, have a choice. Perhaps Google could begin to play a role with its Google Apps, but that picture is not yet clear.
The convoluted relationship between Apple and Microsoft over the years hasn't changed much. What seems to be changing is the opportunities presented by Apple's success and how Microsoft seems to be pulling back and Google seems to be exploiting them. The cold war, in fact, continues.
[UPDATE: Mr. Hesseldahl appears to have adjusted the market share numbers after initial publication. I reiterated his updates.]
Observer Comments
Why does Apple bother with its own suite? Because Microsoft Office is a horrible collection of applications that just get uglier with time. Apple is redefining the results that a casual user can get from productivity applications. Keynote, Pages and now Numbers, with their slick templates, effects, integration with iLife, etc. make my kids' homework and my wife's newsletters and presentations stand out from the crowd of ugly MS Office junk.
To give users a choice. Many prefer Apple's way to software and UI design. Other simply avoid MS products out of spite. But more to the point... with MS gradually yanking products for the Mac, the day may come when they drop MS Office and Apple needs to have a product ready and in-place.
I have tried numbers and i can say that would it be possible i would use it from this day and throw out excel right now.However it does not show maturity in the way it handles exporting excel sheets and that sadly is why i must keep excel until more of the people using excel starts demanding a good application instead of a application full of stuff you can do but you need to be a science professor to get it to play ball. Keep in mind this was numbers version 1.0 and is very easy to get to play ball while working with it and the results is plain great but ii is sad that excel cant handle so great spreadsheets..., so i say, let the fight begin!
I think iWork and Office serve similar functions but different segments of the market. I don't think anyone could reasonably expect iWork to take massive share away from Office, but it does offer users a choice.
For years I've used Appleworks for typing up short letters and for keeping my finances in a spreadsheet. I'm glad I can finally upgrade to iWork and Numbers. I already spend enough money on Adobe and other software; I'm not going ~$400 (or whatever it is) and have a massive bloated software suite on my harddrive just to take care of that handful of tasks. At $79, iWork is a relative bargain.
Heck, iWork could be successful without even affecting Microsoft's revenue, if all it does is offer an affordable alternative to all those folks who either refuse to pay for Office, or just use a pirated copy anyway.
Has logic simply vanished from the brains of net posters?
"Microsoft appears to be backing away from a lucrative market just at the time when Apple's success is soaring, according to Arik Hesseldahl."
"On top of that, with Microsoft's total domination of Office on the Mac, one has to wonder why Apple bothers with its own suite."
So here's a key software category, in which Microsoft owns 97% of the market, yet Microsoft appears to be backing away from that market. And you actually ask yourself why Apple sees fit to develop their own solution so that they're not dependent on Microsoft for a viable solution in that market category? Do they just not teach you kids to think anymore? Seriously, c'mon.
This is exactly the same as when Adobe was making noises about making Mac Photoshop a second-class citizen or dropping it altogether. So Apple said "Fine" and created Aperture. Suddenly, Mac Photoshop became important again to Adobe. I doubt MS will be swayed by iWork if their mind is made up, but this mitigates the impact to Apple should that happen, and gives Apple the ability to control their own destiny moving forward.
If you're going to put your own opinions in a piece you write, try to do a little thinking, mkay?
the logic of the original posting is very poor. By creating a high quality competitor to the Office Suite, Apple can free itself from any reliance on MS product. Microsoft has dominance because of a lack of an integrated suite of products. At a point when Apple market share is finally taking off this seems like a smart move. Given recent trends, I wouldn't be flabbergasted to see them release more software for the windows platform - an excellent way to get people started using apple products.
I think Apple should move the Filemaker Pro application into the mainstream as an official apple product, and integrate Numbers to it seamlessly, that would be interesting.
i also agree with montresor.. then add the fact that apple believes that they can do it better. take keynote, for example.. it tops powerpoint hands down. it makes sense to take the same approach to office applications that they do to the rest of their products-- high production values with reasonable ease and reasonable cost.
the other thing that nobody really considers now that apple has gone mainstream is that they don't just do it for the money. while that's still a primary goal, they also like to innovate and make things easier for the every day user, and they really take pride in what they do. this was reaffirmed when steve was talking about how the new imovie got its start.
Fri Aug 10, 2007 12:07 am Subject: Received mine quickly
Fri Aug 10, 2007 12:28 am Subject: The Numbers
Fri Aug 10, 2007 2:35 am Subject: iWorks 08 gives Mac users a viable option to Office
iWorks 08 continues to give Mac users a viable option to Office. I use Pages daily in an almost completely PC environment, and while I sometimes have to use TextEdit open Microsoft docs, esp. Excel charts, I have managed quite well. But I could not do a good job producing "data" that dataheads could understand on charts and graphs.
All that begins to really change with iWorks 08 and "Numbers". Yes it is only a 1.0 version, and has a long way to go for "serious" users. But in just looking at and trying out the 30 free trial version, I was hooked, and Apple will get my $79 while I am stateside later this month (I know I can get it online... but other than etickets to fly, I still like to pay for something and then actually get something physically in hand in return).
iWorks 08 represents the continuance of Apple in trying to give its OSX users something "different". Bravo Apple.
Fri Aug 10, 2007 3:50 am Subject: direct data from the business week article link...
"Office Market Share
Should Microsoft be worried? Certainly not yet. I checked with Chris Swenson, an analyst with NPD Group, a market research firm that tracks retail software sales. What effect if any, has there been on sales of Office for the Mac in reaction to Google, Zoho, and ThinkFree? "None. Zero. Zip," he said. Microsoft Office for the Mac enjoys a market share in the neighborhood of 91%, while its nearest competitor is Apple's iWork, which comes in at 9%."
9% is still low, but not as low as 1.8%.
You lot are just Apple apologists. Remember just because it came from Apple it doesnt mean that is great. Sometimes Apple fanboys just have to take off their blinkers and take real objective look at what Apple is doing.
Im a fan of Apple by the way, im on my third Mac and countless iPods... and ive been testing Numbers. Im sorry to inform you folks but Numbers doesn't hold a candle to Excel.
To me Numbers feels like a beta product and is lacking a lot of functionality. After I could not open a simple 55kb Excel spreadsheet I uninstalled Numbers. Numbers just kept telling me that "The document can’t be imported because it’s too large." Its 55KB!!. Using copy/paste nicely copies the content of the spreadsheet but not the formulas. Useless!
My advice to to check it out in a year or so when it's fully baked.
cheers
Jason
The biggest threat to face Microsoft office is OpenOffice (Neo Office on the mac, but the OpenOffice guys have the first Alpha build out and Sun Just put 2 engineers on it full time).
Governments are starting to use these open formates because one company doesn't control the formate ... there for making it a more stable long term storage formate for the long term. I think the biggest threat to Microsoft is the open source movement in general.
QuoteAnonymous wrote:
The biggest threat to face Microsoft office is OpenOffice (Neo Office on the mac, but the OpenOffice guys have the first Alpha build out and Sun Just put 2 engineers on it full time).
Governments are starting to use these open formates because one company doesn't control the formate ... there for making it a more stable long term storage formate for the long term. I think the biggest threat to Microsoft is the open source movement in general.
The file formats for office 2007 are all xml text sheets that have been compressed. You can open any office 2007 native file with winzip and see the text source files. It's actually pretty sweet and should make conversion in future versions a non issue.
QuoteGuest wrote:
The biggest threat to face Microsoft office is OpenOffice (Neo Office on the mac, but the OpenOffice guys have the first Alpha build out and Sun Just put 2 engineers on it full time).
Governments are starting to use these open formates because one company doesn't control the formate ... there for making it a more stable long term storage formate for the long term. I think the biggest threat to Microsoft is the open source movement in general.
I'd say the biggest threat to MS is piracy, but people have been saying Open Office, aka StarOffice, will take down MS Office for years. Still waiting on any of that to actually come true. This project is almost a decade old now.
Mon Aug 20, 2007 5:15 pm Subject: More on iWork '08
See Marc Orchant's ZDNet blog iWork ‘08 - no Office killer ’cause it’s not supposed to be and MacWorld's reviews of Pages and Numbers.
well first of all you have to consider the fact that microsoft owns a large part of apple now. second, without a competitor microsoft would just basically dominate the "officce software industry"; there must competition present. since they own part of apple they have the capacity to probably tell apple that they need to come up with an offioce software that would compete with their own microsoft office.
this is basically all about economics, there must be competition in order for one to come up with new ideas to make improvements.
that is why there are all sorts of computer brands like sony vio and compaq presario. sure, every thing would be okay if sony would be the only computer manufacturer present, but be very boring for the sony people if were no competition.
Wed Oct 17, 2007 2:27 pm Subject: Re: RE: why bother?
Wed Oct 17, 2007 7:17 pm Subject:
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