Microsoft aims to straddle two worlds with new Surface tablet

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Several years behind its Silicon Valley rivals, Microsoft is betting it can play catch-up on tablets and smartphones by leveraging its dominance in the workplace and its success in the living room.
Just imagine Microsoft offering its Office software exclusively on the Surface while providing access to Xbox games and videos. It could be the right mix of professional and personal elements — a combination that Apple and Google haven’t been able to achieve fully. Then add the other online assets Microsoft has amassed over the years: the videoconferencing service Skype, the professional social network Yammer and the search engine Bing.
The potential is great, analysts say. That is, if the notoriously bureaucratic tech giant doesn’t end up repeating its past mistakes.
“Microsoft has had all the pieces for a consumer strategy for years, and they’ve totally and utterly failed time and time again,” said Michael Gartenberg, an analyst at Gartner research. Standout failures include Microsoft’s Zune music player and the Kin smartphone, which were panned by critics and fed the reputation of a company that was out of touch with consumers.
“The trick is if they can tie it all together into a compelling story and get consumers to buy into a whole ecosystem of devices and apps, which is what Apple has done so well and Google has done well, too,” Gartenberg said.
On Tuesday, Microsoft’s stock shot up by nearly 3 percent, though the shares are about half the value of their high reached in December 1999.
When it comes to tablets, Microsoft hopes office workers will want the Surface’s keyboard and stylus to produce Excel spreadsheets or PowerPoint presen­tations and then take the gadget home to watch movies. Microsoft on Wednesday is expected to roll out at least one new Windows 8 smartphone that will add to its mobile ecosystem.