We have only just scratched the surface

Microsoft was king of the IT world for much of the 1980s and 1990s, but the early years of the 21st century have been dominated by more than one major player.

Google snatched 60 per cent of the key internet search arena from under its nose. And now Microsoft's arch rival, Apple, has caught the eye of technology lovers like never before – due to the all-conquering iPod music player, the ground-breaking iPhone, and its latest Mac and MacBook.

Yet, despite being seemingly outflanked by younger and smaller companies, Microsoft is not prepared to surrender its crown just yet.

And the figures support the strength of its position: According to the companies' most recent figures, Apple raked in $24 billion (Dh88bn) last year, while Google made a respectable $16.6bn. Microsoft, meanwhile, made $60.4bn. It could be said the pretenders to the IT throne still have a long way to go.

Then again, Microsoft was founded in 1975 and Apple in 1976, so Google's entry into the IT world a mere decade ago illustrates how quickly it is catching up to its forerunners.

So what does the future hold for Microsoft as it enters middle-age? Partnerships and better technology are the way forward, says Luiz Azeredo, Enterprise and Partner Group Leader, Microsoft Portugal. "Microsoft is constantly updating its technology and we're always looking at ways to improve for our users," he told Emirates Business. "And the results show that we're the best at what we do."

One of these new products is Microsoft Surface, over which technology columnists and bloggers are going gaga. It offers a way of interacting with technology and digital content without the use of a mouse or keyboard.

Forgetting the twin tenets of miniaturisation and portability, a 30in display in a table-like form-factor will enable people or small groups to interact with digital content in a way that is familiar and more collaborative – by simultaneously recognising touch and gesture.

Underneath the screen is a Windows Vista-powered PC, using wireless technology to access the web, plus built-in speakers to provide top-quality sound. In a nutshell, Surface will be to Microsoft what iPhone was to Apple.

"It's a beautiful piece of technology," said Azeredo. "The possibilities are endless, and it gives you the opportunity to interact in a way never done before. Surface is very useful for places such as hotels."

A customised version of Surface has been launched in the United States in several hotels, including Seattle's Sheraton and Hotel 1,000. Features include a virtual concierge offering guests points of interest for the area, including restaurants, museums, and landmarks, which, Azeredo said, illustrate how hotels are revolutionising the hospitality sector with service-enabling technologies.

"Surface enables more interaction, and it will certainly make life easier for certain businesses," he said.

It is even making life easier for television, according to New York Times technology analyst David Pogue. Referring to MSNBC political director Chuck Todd and his analysis on the upcoming US presidential election, he said: "I saw an absolutely brilliant application of [Surface]. On the left and right sides of the screen, Barrack Obama and John McCain were represented by full-height, shaded columns. In the centre were all the states, represented by what looked like jigsaw puzzle pieces.

"The analyst could flick a state into either candidate's column, and the electoral-vote count updated instantly. Very cool, highly illustrative, and perfectly suited to the Surface computer's strengths. In short, that's where Surface will probably wind up: In very specialised niches."

Therefore, people should not expect to see Surface at a Carrefour anytime soon. Priced currently at around $15,000, Microsoft promises an affordable consumer version in three years. However, considering there is already the iPhone, it may not be as helpful to people as it is for enterprise. Another product Azeredo was eager to boast about was Microsoft Photosynth, a service from Microsoft Live Labs that goes far beyond how people now view, experience and share photos. With the software, users can transform regular digital photos into a three-dimensional, 360-degree experience.

"Anybody who sees your creation can imagine exactly what you saw at the time of taking the picture," he said. "It provides a detail, clarity and scope impossible to achieve in conventional photos or videos."

The software is now available for download.

Finally, although it was quite apparent Azeredo was only keen to talk about Microsoft's technology and ventures, there was no avoiding the dreaded G-word.

How has the company reacted to Google's first entry into the web browser market with Chrome, a direct challenger to Microsoft's ubiquitous Internet Explorer?

And what is the firm's opinion of Google's first phone, the G1, scheduled for release at the end of this month?

"It will be interesting to see how the new browser will fare, but we always welcome new products from competitors," he said. "It's important we focus on our own products rather than worry about the others."

In terms of the internet search market, at least one person has admitted Microsoft has made mistakes. In an interview with the BBC this week, Microsoft CEO Steve Ballmer said his company's initial failure to grasp the potential of internet search had hit the business. "Do I wish we'd started the investment in search a few years earlier? Yes," he said.

Microsoft currently trails Google, holding a mere nine per cent of internet search share. The company's quick-fix strategy – to buy out player number two, Yahoo! – went down in flames earlier this year.

Given the setbacks, one could hardly blame Microsoft if it gave up on the search market altogether. However, the stakes are too high. Google's search-related revenue topped $4bn in this year's most recent quarter, prompting Microsoft to commit more than $1.5bn to acquiring search, or search-driven businesses – including a $1.3bn buyout of enterprise specialists Fast Search & Transfer – at the beginning of the year.

Ballmer said: "We probably missed the power of the advertising model, not so much the technology."

But the battle for control of the search market is far from over.

Technology analysts predict if Microsoft can combine the right combination of technology in the coming years, and integrate them into a user-friendly whole, then it can catch, and even overtake, Google.

All that remains to be seen is if Microsoft can achieve that elusive formula.

Windows on the world

Luiz Azeredo, Enterprise and Partner Group Leader, Microsoft Portugal, was in the Portuguese capital, Lisbon, as part of an international media day at the Sheraton Lisboa Hotel and Spa. The hotel had just announced a partnership with the IT giant to implement Microsoft products and services at Sheraton's 408 hotel lobbies across 75 countries, calling it The Link@Sheraton Experienced With Microsoft. Under the initiative, the hotel chain will offer widescale access to Windows-based computers to provide visitors with search tools, maps, email, and even webcams for free video conferencing.

It is all a far cry from recent years, when the only option for guests was to use the internet at a hotel's business centre – charged at highly inflated prices.

"Guests always want to make the most of their travels, and because there are a lot of business travellers, it is important that the technology is available," Azeredo said. "Not everyone wants to be stuck in their hotel room working on their laptop. Many want to enjoy a coffee while working in a sociable environment."

Sheraton is expected to roll out The Link@Sheraton Experienced With Microsoft at more than 300 properties, including those in the UAE, by the end of this year. The rest will follow next year.

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