A few weeks ago we provoked a few people when we suggested that It’s Not the Hardware, Stupid. Our intent was to challenge the conventional wisdom that the key to success in digital media is to have the snazziest player hardware. Instead, Microsoft’s best strategy is to extend Zune software and services well beyond the physical players.

Today, Steve Ballmer shed light on that strategy, in his most specific words to date on that subject. Here’s how we answered CIO when asked “Why has Microsoft developed Zune?”

Ballmer: At the end of the day, one of the big trends is that all content is going digital. And if we don’t have the software and services that are useful, helpful and valuable for the consumption of music and video, we are sort of not really a player.

Now, we built the Zune hardware with the Zune software - and what you’ll see more and more over time is that the Zune software will also be ported to and be more important not just with the hardware but on the PC, on Windows Mobile devices, etc.

It makes sense. Zune players are important, but Zune will transcend any particular player type and be a service - or an experience, if you prefer - that cuts across digital players, smart phones, PCs, and more.

Thanks to CIO.co.uk via wmpoweruser.com.

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Tags: Zune software