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December 28, 2006
When you look back at your company's 2006, what do you see? Did you have a good year or was it not the best 365 days the company has experienced? Was it business as usual or did you make some big changes? Depending on the situation, change can be good. Enron would probably say change is bad. But for Microsoft and Apple Computer, 2006 was a year of the good kind of change. The BBC News carried the story about what was going on in Redmond, WA and Cupertino, CA this year. Both companies saw some pretty large changes in not only their product launches, but also in the direction their companies are moving.
In addition to software releases, Microsoft also sent the Zune digital music player out to consumers and gamers were able to get their hands on the XBox 360. While Zune has yet to really offer much of a challenge to the iPod, Apple's industry-leading music player, it adds a nice rounded feel to Microsoft's hardware offerings. The Xbox 360 has been fairly successful as well and was the first of the "next generation" consoles to make it to market, giving Microsoft a leg up on rivals Sony and Nintendo. According to the BBC, Microsoft's company morale also got a boost as a series of stressful situations began to wind down. The company has been plagued for the better part of the year by anti-trust dealings with the European Union. Those problems are almost behind Microsoft and with the release of Windows Vista, thousands of Microsoft employees are feeling the heat of product launch off their backs for the first time in years. Ray Wang, a Forrester analyst, told the BBC that morale in Redmond was also getting a boost from a renewed effort by Microsoft to invest more into its employees. A little further south, Apple Computer also saw a dramatic shift in business operations. After years of building its Macintosh computer systems around PowerPC microprocessors from IBM and Motorola, Apple embraced Intel and began shipping new systems based on the new Intel Core line of processors. Consumer computers, like the Mac Mini and iMac, got the first taste of what its like to have Intel inside. Later in the year, Apple updated its line of notebook and professional Mac Pro computers with the new Intel chips. And while the company is notoriously quiet about its inner workings, outside signs point to a smooth transition. The iPod line of music players received a few fairly minor updates throughout the year and, according to Apple, helped drive Macintosh computer sales to heights not seen in years. iTunes, the software companion to iPod that allows users to buy, organize, and play music and videos received a fairly major visual refresh and the addition of scores of television shows and movies to it's product offering. While iTunes continues to be the most popular source of digital media, Apple denies claims that iTunes has experienced a drastic reduction in sales over the year. So you see… change isn't necessary a bad thing. It worked out well for Microsoft and Apple. Maybe you've been mulling over a few changes around the office but haven't bitten yet. Change is sometimes a scary thing to consider, especially when the livelihood of the business could be affected. But look at Microsoft and Apple. If Microsoft hadn't applied the pressure and released Vista, 2006 would have been another year of disappointment not only for consumers, but also for investors. And if Apple had held off on moving to the Intel architecture, its computers would quite possibly end up lagging grossly behind the competition. The best advice when it comes to making changes is simple: look before you leap… but, ultimately… leap. No one ever got anywhere by standing still, right?
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