Microsoft BizSpark & Startups
BizSpark is Microsoft’s new partnership program for startups. Their goal: To build an army of startup companies running Microsoft software for their online apps. A similar strategy was successful against Novell in the 1990s.
Flashback to 1995
If your company needed a local area network (LAN) in 1995, Novell was the only way to go. Microsoft controlled the desktop with DOS & Windows, Novell controlled the server, and conventional wisdom said it would be that way forever.
Startup LAN installers that wanted to study Novell had to spend thousands of dollars on test servers and software just to create an adequate learning environment. Startup companies are always cash challenged, so the entry barriers are huge.
Removing Barriers With Software
Microsoft removed the entry barriers in a brilliant move against Novell. In 1995 Microsoft ran day-long technical seminars featuring their server software. The seminars were free, and free copies of Windows NT and Exchange were given to attendees who listened to a full day of presentations.
Yes, Microsoft gave away thousands of dollars of free, unlocked software to each technical attendee. I was one of those attendees. Like many other tech companies, WisdomGroup got a huge boost from free software courtesy of Microsoft. And Microsoft built a loyal army of technical enthusiasts.
People Recommend What They Know
IT people recommend products that they know because that’s the best way to satisfy the customer. Server software revenues boomed for Microsoft. Happy customers mean more business for everybody. Win/win all the way around.
ROI for Microsoft & Partner Companies
With its newly equipped technical army, Microsoft quickly booted Novell off the LAN throne. Companies like WisdomGroup grew large enough to join Microsoft’s paid partnership program, adding more money to Microsoft’s bottom line. And then the Internet took center stage, forcing Microsoft to play catch-up ever since.
Repeating History
Earlier today I attended a BizSpark session that reminded me of those 1995 Microsoft technical seminars. But something was missing. BizSpark is a great idea on the surface, but it lacks the excitement & partnership of the 1995 program. Specifically:
- Bureaucracy rules. Companies that are too old or too large don’t get to participate. The 1995 program did not have these restrictions. Listen to the speech, get the software, go out and evangelize for Microsoft. Win/win.
- Less technical substance. The old program featured software engineers and strong technical presentations. The BizSpark presentations were mostly buzzwords and metaphors. It is hard to build a partnership on buzzwords and metaphors.
I realize that Microsoft is much bigger than it was in 1995. Is Microsoft too big? Can the elephant dance? I applaud Microsoft’s effort to reach out to startups, and I wish them well.
The Open Source Alternative
Of course, WisdomGroup has moved on to open source for web development.