Live data from Hacker News

Microsoft has a problem: lack of demand for its AI products

windowscentral.com

11–20 of 385 posts

Re: Microsoft has a problem: lack of demand for its AI products

#11
Gemini is really great now. Fast is insanely fast and handles 90% of queries. Deep Research works better than OpenAI's deep research given their search expertise.

It is going to be very hard for OpenAI or Microsoft to compete with this now that Google has gotten their act together.

Re: Microsoft has a problem: lack of demand for its AI products

#12

Microsoft's entire business model for decades has been to shove shoddy products down people's throats. And somehow, they have figured out how to do it too, because otherwise Teams wouldn't be used by anyone.

I find it fascinating how they are able to sell their crap software.

Re: Microsoft has a problem: lack of demand for its AI products

#14

I would think that if they actually spent the time and money fixing the core functionality of their core products (like Windows and Office) that they might have a much easier time promoting things like Copilot. Instead they leave their users wondering why they're so hell-bent on shoehorning AI into a Start menu that takes whole seconds longer to open than it should or into Windows Search that regularly fails to find…

Because they so much want to be a service business than a software business. Microsoft execs are losing sleep over becoming the next IBM, not realizing they are already there and have been for a long time.

Their main problem is that they never really learned how to compete on merit, just on first-to-market and all kinds of legal (and illegal) tricks.

Re: Microsoft has a problem: lack of demand for its AI products

#18

I would think that if they actually spent the time and money fixing the core functionality of their core products (like Windows and Office) that they might have a much easier time promoting things like Copilot. Instead they leave their users wondering why they're so hell-bent on shoehorning AI into a Start menu that takes whole seconds longer to open than it should or into Windows Search that regularly fails to find…

As long as companies, and consumers, still pick Windows and Office, then why spend the resources. Making Windows better won't move the sales number significantly, but removing the ads and the potential AI upsell is a direct hit to revenue.

The sad reality seems to be that Microsoft do not care about the majority of their products anymore. Only Azure, Microsoft 365 CoPilot, CoPilot and maybe CoPilot.

Re: Microsoft has a problem: lack of demand for its AI products

#20

Microsoft has a problem that they hire the middle block of talent in the market. They do not chase the top 20% most expensive nor the bottom 20% least expensive. But this also means they end up with average products. They don't have the talent to do something exceptional. This has worked well for them when they can just come in and copy something (say AWS in Azure) and not pay the innovation cost, but AI seems differ…

The only time they copied something successfully and did not rely on major tie-ins with their existing monopoly was Xbox and that division lost money hand over fist for a long time.
Post reply on HN