June 24, 2013, 2:46 p.m. EDT
Microsoft to give first peek at Windows Blue
Build conference to feature high-stakes update to operating system
By Rex Crum, MarketWatch
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SAN FRANCISCO (MarketWatch) — Microsoft Corp. will be in the spotlight this week as the software giant kicks off its Build 2013 developers conference that is expected to showcase upcoming changes to its Windows 8 operating system.
Microsoft MSFT +1.35% is keeping mum on what exactly those changes will be and who will lead the conference’s keynote presentation, set to begin at noon Eastern Time on Wednesday in San Francisco. The company has code-named the Windows 8.1 update as Windows Blue.
But the event is a high-stakes move for the software giant, given that it takes place against a backdrop of a lukewarm reception for the Windows 8 operating system that launched in late October. Microsoft shares were trading up 2.7% to $34.15 on Monday afternoon in what was an otherwise bruising session for the tech sector.
33,715 USD
+1,35% | +0,45
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Microsoft has received mixed reviews of the operating system’s emphasis on touchscreen capabilities and the tiles that greet users with apps and other items. One of the biggest complaints has been about the absence of the famous Windows “Start” button that gave users quick and easy access to programs in early versions of Windows.
“Windows 8.1 could be what Windows 8 should have been,” said David Cearley, an analyst with technology research firm Gartner Inc. “Some users rejected Windows 8 because of the changes Microsoft made. Based on the information currently available, Windows 8.1 features could quiet many its detractors.”
For its part, Microsoft has claimed that it has sold more than 100 million Windows 8 licenses to date, and that it is pleased with market reception to the operating system.
But less-than-positive signs have also emerged of the platform’s market reception. In April, IDC reported that overall PC sales slid nearly 14% during the first quarter — the first full period that included sales of Windows 8 devices. The drop was the highest ever measured by the market research firm.
Last month, Windows CFO and chief marketing officer Tami Reller said the company would make a Windows 8.1 upgrade available later this year to anyone who purchased Windows 8, and developers will be able to get a preview version of the operating system at the Build conference. Many expected the “Start” button to make a return in Windows 8.1, among other changes.
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“The Windows Blue update is also an opportunity for us to respond to the customer feedback that we’ve been closely listening to since the launch of Windows 8 and Windows RT,” Reller said in a company blog.
The Build conference will allow the company to showcase its planned changes to its wide base of application developers. The event also comes as Microsoft has been trying to drum up enthusiasm by touting Windows at every opportunity.
Last week, Microsoft said the company would open Windows stores inside of 500 Best Buy Co. Inc. BBY -1.68% stores around the U.S., and 100 more at locations in Canada. The focus of the stores will be on selling and offering accessories and assistance for Windows-based products such as tablets, PCs and Windows Phones.
Also last week, Apple Inc.’s AAPL -2.65% iTunes Store began offering a app for an iPhone version of Microsoft Office. The app is free, but you have to subscribe to Microsoft’s Office 365 service for $10 a month, or $100 a year, to use it on the iPhone, and its doesn’t yet work with the iPad.
And on Wednesday, Steve Guggenheim, Microsoft’s Chief Evangelist for Windows, took to the company’s Windows blog to talk up a slate of new apps that are available on the Windows Store, which now has a total of 80,000 apps for Windows-based devices.
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“There’s really a shift in app development,” added Tim O’Brien, general manager for Windows Platform Evangelism. “There are developers wanting to move to new design points, and those that are already there and want to know, ‘What does Microsoft have for me and how can I make a business and get paid?’”
Getting that message across to developers, that Microsoft can simplify how they do their jobs, is what Gartner’s Cearley says will be crucial for the company if it wants Build to be viewed as a success.
“Microsoft must reinvigorate it’s once-dominant developer community and attract leading edge developers focused on the new, consumer-driven mobile app world,” Cearley said. “This makes the Build conference one of the most-important conferences of the year for Microsoft.”
The company is also expected to give updates and information about its Windows Phone efforts, Internet Explorer, Office 365 and possibly more information on the Xbox One video game console that is launching this fall.
Rex Crum is a reporter for MarketWatch in San Francisco. Follow him on Twitter @mktwcrum.
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