Joe Wilcox has an interesting post today about whether our Software + Services strategy really ought to be Software + Services + Hardware and I think there is some merit it in - thought I don't see us changing the naming anytime soon.

He mentions that Microsoft has the right Lego pieces, they're just not assembled and points out that some of those pieces are in our own domain (such as XBOX and Zune). This enabled us to provide true end to end (e2e) scenarios in the way Apple has with the iPod. In other cases, our partners provide the hardware elements and offer S+S+H solutions such as IPTV with companies like BT.

Even in my own explanation of Software + Services I inherently include hardware in the solution at times (Zune, XBOX, iPod, Windows Mobile + Exchange etc).

Though there are still good example of S+S that are true to that such as Google Reader, eBay Turbolister and others, the role of devices (note I don't say PC's) is inextricably linked to this industry shift. As Wilcox points out, the role of hardware is vital - it's just that hardware is so much more than a PC these days. What you will notice though is that whenever our execs talk about S+S they include XBOX, mobile devices and other hardware in their examples. Thus far this has been lost on many.

The area I think Wilcox doesn't make enough of is the role of partnerships. Microsoft has a long history of partners being a platform company and if you listen carefully to the Steve Jobs on Software + Services video you will note the thing he says Apple can learn from Microsoft is partnering.

As Wilcox notes, "No company partners like Microsoft". Whilst Apple and Google have two pieces of the Lego set for S+S+H. Microsoft, with it's partnerships, has all 3.

Now we just need to assemble them and execute well. That's the real challenge.