Windows 8 Momentum: Will Pop-Up Stores Help?

As part of its Windows 8 kickoff, Microsoft has opened more than 30 "pop-up" stores across the United States. Eschewing walls and confined spaces, these would-be retail hotspots are essentially mall kiosks on steroids. They're situated in the open, just like the fingernail accessory vendors and carts full of cellphone accessories or novelty license plate frames. But, with a large series of tabletops showing off the long-awaited Surface tablet, a team of attentive staffers engaging customers and a tower emblazoned with the company's logo, the Microsoft installations, to say the least, stand out from the crowd.

The stores, which are scheduled to remain open throughout the holidays, include a location at the San Francisco Centre in California. InformationWeek visited the store Friday, Oct. 26, during its first day of business. The experience was both predictably familiar and pleasantly surprising.

The traces of deja vu stemmed from the fact that Microsoft had already been cultivating a retail presence in the Bay Area prior to the new store's opening. Silicon Valley boasts full-fledged, rather than pop-up, sites in Palo Alto and Santa Clara, and a Corte Madera location -- in Marin County, just across the Golden Gate Bridge from San Francisco -- will open on November 3, complete with not only Surface and Windows 8 but also a performance by Kelly Clarkson.

The older stores' design cues, as others have pointed out, borrow heavily from Apple's successful model, and the San Francisco pop-up store, to a certain extent, follows suit. Each employee wears a bright, monochromatic t-shirt and a long lanyard with a simple name tag on the end, for example. An abundance of illuminated, semi-translucent signage is arranged in minimalist fashion. Devices are lined up without fuss in neat rows, enticing passersby to stop and pick them up.

But thanks to the kiosk-style setup, the new San Francisco location also gives off a fresh vibe. Spend some time people-watching at a mall and you'll likely see many shoppers who quicken their pace at the sight of a temporary mall vendor, their gazes fixed forward so as to avoid making eye contact with a beckoning salesperson. Microsoft's store is different; it manages to exude a sense of spectacle without compromising its elegant design. Attractive, prominently displayed gadgetry -- rather than unsolicited summons -- provoke interest from passing foot traffic. Interested shoppers are greeted by employees who are (or, at least, were on opening day) enthusiastic but not overbearing. It gives the impression of an event, not an obstacle.

Is it worth your time to check out one of Microsoft's pop-up stores? Will they help the Redmond, Wash.-based giant infiltrate the consumer space with Surface, or bring Windows 8 to both homes and businesses? Read on to learn for yourself.

Though many PCs, tablets and hybrids will run some version of Windows 8, Surface was the main event at the San Francisco store, with around a dozen of the devices on display for shoppers' perusal.

Microsoft's first attempt at building its own hardware is unquestionably an impressive device. Though, with the tablet market getting more and more crowded, only time will tell if it's impressive enough to sway consumers in large numbers. Nevertheless, Surface inspires confidence. It's not just the magnesium alloy construction that impresses but also the overall balance. Nothing feels cheap or -- at least on first blush -- out of place.

Harm Diaconesu was part of the Microsoft retail team at the San Francisco store's opening day, and Surface's build quality was a big part of his pitch. He mentioned that enormous attention had been paid to small details, such as the device's kickstand, which he said had undergone upward of 70 revisions before the design was finalized. He also expressed tangible enthusiasm for the Touch Cover and Type Cover keyboard accessories, which magnetically connect to the tablet with ease.

"It's one of the most satisfying things you can do with technology," he said, clicking a Surface cover into place and touting the "nice luxury sound." Such comments would be expected of a retail employee, of course, but Diaconesu's earnest effusiveness was persuasive -- as was the fact that the tablet's quality seemed to fulfill his descriptions.

The keyboards have attracted skepticism, notably from HP CEO Meg Whitman. The relatively flat layout of the Touch Cover might prove difficult for power users, though Diaconesu said most people were comfortable after only a few minutes of use. The Type Cover, however, which features larger keys that more closely resemble those of a typical keyboard, appeared serviceable for heavier needs.

Some other Surface characteristics that staffers highlighted: the inclusion of a USB port, a perk that the iPad's base package does not include; access to 7 GB of storage on SkyDrive, Microsoft's cloud-based storage; a contextual search function that intuitively allows users to narrow results and share content; and pre-installed editions of Office RT.

Large crowds greeted the pop-up store's opening, and the line remained a couple dozen people long well into the afternoon. Some were merely curious onlookers who'd stumbled onto the store, queuing up to see what the commotion was all about. Others, however, had been aware of Microsoft's plans ahead of time, and had come to check out Surface during its first day of public inspections.

Kristian Morgan (pictured, above left) is program manager at the San Francisco AIDS Foundation, and he said Surface's durability was a particular appeal. "I'm very rough on gear," he remarked, holding up an iPhone protected by a bulky, heavy-duty case.

Morgan mentioned that his office is interested in using the device. "We need this," he said, adding that Surface's incompatibility with legacy apps hadn't really been a concern because the device can still run Word. He also mentioned that Microsoft's commercials, which have become ubiquitous in recent weeks, had engendered excitement. "They really got me amped," he said.

Another person in line was an analyst who declined to give his name because his work sometimes involves Microsoft. Speaking "as a consumer," he said he'd looked at other Windows 8 devices, such as the Lenovo Yoga, before settling on the Surface. He stated that he didn't need it for work and intended to use it as his "fun, surf on the couch" device.

He said that the "RT version is good enough" for many needs, especially because it is "a lot less expensive" than most models that run the full version of Windows 8. He shared that after trying out some other options the night before at Best Buy, he'd come home and immediately missed the Windows 8 experience. "I started poking the screen [of my laptop]," he said, predicting that other people would find the new OS similarly enchanting once they'd tried it.

Retail employees circulated throughout the line as customers waited to reach the pop-up store's main desks. Many carried Surface tablets in order to demonstrate key features -- such as how securely the Touch Cover (above right) holds the device -- to waiting shoppers.

The San Francisco pop-up store enjoys a prime space within the mall, near escalators that lead to a number of popular stores and also one of the area's busiest movie theaters. The placement seemed to be paying off during opening day, as many of those waiting in line had been drawn in while making their way to some other destination.

"Our sales strategy is here," said Diaconesu, adding that Microsoft's goal was not only to provide a way for consumers to gain face time with the company's employees but also to establish a highly visual presence that would encourage an "emotional connection" with the displayed hardware.

If the store can garner attention during an otherwise mundane Friday, it could continue to attract crowds once holiday traffic invades the mall. The store's employees struck the right tone during their first public outing, constantly returning to check on waiting shoppers and earnestly thanking them for their patience.

It will be tough to keep up the level of personal attention, of course, once Black Friday kicks off the retail world's most chaotic stretch -- but after a busy morning, the staffers showed no signs of waning enthusiasm. With so many portable devices vying to be the season's hot stocking stuffer, the public display of friendly, customer-oriented service might be enough to help Microsoft gain an edge.

Though the San Francisco pop-up store's opening day crowds were impressive, it's probably best not to read into them too deeply. On the one hand, the store offered the public the first look at a highly publicized new device, which could have inflated the crowd's size. Then again, Surface might inspire enough positive word of mouth to continue driving long lines, and to effectively negate the front-loaded attention that often accompanies must-see devices. Either way, the first-day showing makes it difficult to gauge whether public interest will be truly widespread.

Put another way, the crowds were big -- but in an age when fan-boy culture has turned camping out for a spot in line into a rite of passage, not that big. The masses that congregated for Apple's recent iPhone launch, for example, were far larger. Even the queues that form for particularly big movie openings -- say The Avengers or The Dark Knight Rises -- make the pop-up store's launch seem relatively modest. If movie tickets and next-gen tablets seem like an apples-to-oranges comparison, that's a fair comment -- but considering that Microsoft's advertising budget for Windows 8 is said to dwarf even Hollywood's largest publicity bonanzas, the juxtaposition isn't without its place.

The store's staff members declined to state whether the opening day's crowds had exceeded expectations, but did say they'd been "overwhelmed" by the constant stream of interested shoppers.

Surface ruled the scene during the pop-up store's opening day, with the device monopolizing literally all of the location's display spaces. The strategy makes sense, given that it represents Microsoft's first attempt to manufacture its own tablet. But Windows 8's success will involve more than Surface, and a narrow focus over the long term seems questionable.

Don't worry, advised Diaconesu, who promised that a "full complement of Windows family products" would join Surface at the store in coming weeks. He mentioned that the store also had several other devices that were not on display -- including some manufactured by Asus and Sony -- already available for sale Friday.

He did not share whether devices from specific vendors would be featured. He also did not state whether later additions to the store would give equal attention to all varieties of Windows 8, or if the RT version, which is more consumer-centric, would continue to hold the spotlight.

For the first day, Diaconesu said, the goal was to introduce the public to Surface. Microsoft is "enormously proud" of the device, he stated. He remarked that the location would "absolutely be featuring" the Windows Phone 8 as well.

He also said, with a coy smile, that the store will continue to evolve throughout the holidays. "Stay tuned," he said. "They may be other exciting announcements."

The extent to which Windows 8 will catch on has been hotly contested.

Vendors have been showing off new form factors for months, often with the help of Intel, whose Ultrabook fortunes are largely tied to Microsoft's new offering. Central to many of the manufacturer's pitches has been how the touch-friendly OS will transform the computing experience.

At the same time, many analyst firms -- notably Gartner -- have been bearish. Consumer popularity will be tough, especially given Apple's stranglehold over the tablet category. Apple's slowing iPad sales might be a sign that buyers are ready for something new -- but they might also simply indicate that many would-be purchases were delayed due to escalating iPad Mini rumors. On the enterprise side, meanwhile, many businesses are still amortizing their Windows 7 investments, making a quick leap to the newest release unlikely. This challenge is exacerbated by the fact that many businesses wait several years, for reasons related to stability and security, before deploying a new OS.

All of this might be a moot point, however, if consumers fall in love with Surface, or, for that matter, any of the new Windows 8 devices. The consumerization of IT means that, to a large extent, non-IT staff can now call the shots. The iPad, for example, was hardly built with enterprises in mind -- but because of its popularity, the device became a primary catalyst behind the BYOD phenomenon.

Surface's ability to crack the enterprise space has been particularly debated; with its consumption-oriented UI and its inability to run x86 apps, the device has been seen as a tool with limited business use. However, outside of Microsoft Office, fewer and fewer employees rely on legacy apps. Some employees have needs for which Windows RT will be insufficient, to be sure, but because the mobile OS supports Office, its chances of entering the BYOD fray are not as far fetched as some have said.

Surface is priced competitively relative to the iPad: Microsoft's device runs $499 for the 32-GB version or the $599 for 64-GB edition, whereas Apple's tablets cost $599 and $699, respectively, for the same capacities. The iPad Mini complicates this, however: it starts at $329 for 16 GB and offers 32-GB and 64-GB configurations that are $70 less than comparable Surface models.

The newest iPad has questions of its own to answer, of course, and Surface will be competing not only with Apple's latest offering but also other Windows RT tablets and the slew of Android-based devices. Nonetheless, if Windows RT (let alone Surface as a specific option) is to attract attention from either consumers or businesses, the iPad is the preeminent measuring stick.

Whether Microsoft succeeds is anyone's guess. Though the San Francisco pop-up store drew crowds Friday, afternoon traffic was similar at Apple's flagship store, which sits across Market Street, less than a block away. Given that Apple had only one new product on display -- the 13-inch MacBook Pro with Retina Display, arguably the least exciting of its recent announcements -- the Microsoft store's accomplishment might seem somewhat muted.

Those in line during the store's opening day, however, expressed enthusiasm not only while they waited but also, and more importantly, after they had actually tried out Surface. Microsoft faces a steep hill, but should the positive sentiment prove contagious, the company might succeed despite all the naysayers.

Surface is priced competitively relative to the iPad: Microsoft's device runs $499 for the 32-GB version or the $599 for 64-GB edition, whereas Apple's tablets cost $599 and $699, respectively, for the same capacities. The iPad Mini complicates this, however: it starts at $329 for 16 GB and offers 32-GB and 64-GB configurations that are $70 less than comparable Surface models.

The newest iPad has questions of its own to answer, of course, and Surface will be competing not only with Apple's latest offering but also other Windows RT tablets and the slew of Android-based devices. Nonetheless, if Windows RT (let alone Surface as a specific option) is to attract attention from either consumers or businesses, the iPad is the preeminent measuring stick.

Whether Microsoft succeeds is anyone's guess. Though the San Francisco pop-up store drew crowds Friday, afternoon traffic was similar at Apple's flagship store, which sits across Market Street, less than a block away. Given that Apple had only one new product on display -- the 13-inch MacBook Pro with Retina Display, arguably the least exciting of its recent announcements -- the Microsoft store's accomplishment might seem somewhat muted.

Those in line during the store's opening day, however, expressed enthusiasm not only while they waited but also, and more importantly, after they had actually tried out Surface. Microsoft faces a steep hill, but should the positive sentiment prove contagious, the company might succeed despite all the naysayers.