Microsoft hires Dreamworks exec to run retail stores

Yes, you read that right, Microsoft is going to open its own retail stores.  Redmond hired former DreamWorks Animation executive and 25-year Walmart vet David Porter for the newly created position of Vice President of Retail Stores. The position will report directly to Microsoft COO Kevin Turner, so it is a pretty lofty gig. At DreamWorks Animation SKG, Porter was head of worldwide product distribution.

“I am delighted to welcome David to Microsoft,” Turner said. “This is an exciting time with our strong lineup of upcoming product releases including Windows 7 and new releases of Windows Live and Windows Mobile. We’re also working hard to transform the PC and Microsoft buying experience at retail by improving the articulation and demonstration of the Microsoft innovation and value proposition so that it’s clear, simple and straightforward for consumers everywhere. David’s unique and diverse background, coupled with his deep retail roots and distribution understanding, will be an invaluable asset in this long-term effort.”

“There are tremendous opportunities ahead for Microsoft to create a world-class shopping experience for our customers,” Porter said. “I am excited about helping consumers make more informed decisions about their PC and software purchases, and we’ll share learnings from our stores with our existing retail and OEM partners that are critical to our success.”

While this, on the surface (and a few layers down) is screaming blatant ripoff of Apple, yet again, there are some differences between the two companies.  By and large, Microsoft is a software company.  Apple is a hardware+software=experience company.

Image via Gizmodo, who predicted the Microsoft Store last year

The question is: what will Microsoft sell at these stores?  The obvious answer is Microsoft's own products.  XBoxes, Zunes and some Microsoft branded peripherals for sure.  PC Games?  Sure, but I can already get a heaping helping of that at Best Buy and is that enough to warrant a store?

Microsoft also sells a few software products like Windows and Office that are sure to warrant some floor space.  Then you have BackOffice products like Exchange and SharePoint   They are Microsoft's most profitable products and the ones being attacked on many fronts by Microsoft's competitors.  Will Microsoft stay consumer? 

Apple Stores, though largely consumer, are the hubs of Apple's enterprise effort as well.  They have business purchase plans, seminars and training for IT Managers and technology workers.  Microsoft will surely be tempted to throw some enterprise space in their stores as well.

The over-riding feeling I get, however, is that this is yet another blatant copy of Apple's playbook.  While it may be beneficial for Microsoft, it has to be hard to say, yet again, "do exactly what Apple is doing."