Microsoft, Musiwave, Music, Mobile...

In another not so surprising M&A move, Microsoft announced this week it's intent to acquire Musiwave SA, a Paris based Openwave company.

 

• Zune isn't (and shouldn't be) at the center of MSFT's music strategy. Any product that comes in the color brown for a consumer electronics device might not be a leader.
• If MSFT wants to compete against Apple in music, it's two strengths must lie in finding the right partnerships (both with the music industry and handset manufacturers) as well as in leveraging their software expertise (can anyone say iTunes killer?)
• The broader answer for MSFT lies in the fact that it's mobile strategy includes Windows Mobile, MSN, Zune, Live and components of S+S.
• MSFT will also need to radically re-think the business model (a free ad supported Zune anyone?) or possibly an ad supported music model (Peter Gabriel's WE7 anyone?)

Overall, this is a brilliant move by MSFT. Remember, Microsoft isn't typically first to market, but is world class and being second...

 

Author: Mark Zawacki