Microsoft has put together a new team to restart the personal computer and redefine it for another generation. In this exclusive interview, Panos Panay and other Microsoft executives discuss their plans for the future.
Once the first Surface tablet was unveiled, a video producer was tasked with creating a sizzle reel that would introduce the new device to prospective buyers. He needed to film everything: the kickstand, the ports and including the all-important keyboard cover. But to make it even more enticing, he wanted to film each component of the tablet individually (this proved to be a problem).
“The ground-level battery packs used in Surface RT continuously leaked electrolytes and cause fires,” Ralf Groene of Microsoft spoke to The Verge. “The CEO got up and pried open the case with a screwdriver. There was smoke, fire, and they shut down the whole building.”
This month marks 10 years since the Surface lineup was first announced. Now, Microsoft is releasing its latest generation of PCs, the Surface Pro 9, which features a tablet-like design that will be familiar to anyone who’s passed by an Apple Store recently. As always with competitive technology in this space, there are a LOT of brands all following similar designs: Apple’s iPad, Dell’s XPS 13 2-in-1, Asus’ ExpertBook and many more. But as we’ve seen with previous tech products released by Microsoft, they’re right on trend because they got it right.
But much like that early fiery incident, the Surface team occasionally pushes too far in its quest to design the next category-defining product. The company still seeks what comes next after those ten years — even through some messy results.
Microsoft executive Panos Panay is seen holding the Surface Pro 9 in a photo.
Panos Panay’s original Surface comes in a variety of colors, and the latest Surface Pro features top-of-the line hardware.
“I believe there will be different form factors for everybody and they won’t all end up being one single factor,” says Panay.
Microsoft is celebrating 10 years of the Surface by releasing a refined collection of devices. There’s the Surface Pro 9, which is now a mix of the Surface RT and Surface Pro from 10 years ago. You’ll get to choose between Arm or Intel chips when you purchase your devices.
Microsoft’s latest addition to the Surface family is a more refined design, but it still offers many of the same features you know and love. It’s essentially Microsoft’s own MacBook Air – a reliable all-purpose computing device that gets improved every year.
Microsoft also unveiled two new laptops — the Surface Laptop 5 and the Surface Studio 2 Plus. Both devices have wow factors with their powerful displays that can move, float, and take on different shapes. It’s what they hoped to launch 10 years ago – a tablet-laptop-desktop trio which made its debut today.
When Microsoft introduced the Surface, it was designed to be an all-in-one device for people who were interested in Windows 8. The original idea fell off the market because of Microsoft’s ambition and inability to handle production in time.
10 years ago, PCs were stepping out of their comfort zone in a big way. Touchscreens had just arrived and Windows tablets weren’t really a thing. Nobody was sure how Windows would adapt to touch screens and tablet, but Apple’s sleek Arm-powered iPad newly on the scene added pressure that Microsoft couldn’t ignore.
Microsoft set out to design its own tablet, combining the best features of a tablet and Microsoft’s high-performance, touch-screen laptop. At the same time, they were also looking into creating Windows tablets with an Arm chipset that were able to be taken anywhere with ease.
There were times when the original Surface team felt unconfident as they learned how to build hardware. They didn’t know what people wanted, but that doesnt bother Surface, who said this about the early days of their product: “Those times were a little daunting…we were learning to build hardware at some level. We had Xbox, we had accessories, but this was a whole new level,” Panay says.
Eventually, the team’s vision for Surface was to get Microsoft Office working without any glitches or hiccups. “Office is one of the most important things people do on these things,” Panay says. “Let’s get after it in a different way.”
It all started in 1921 when Westinghouse held a contest to create an “epitome of modernity.” The original Surface concept was made out of string and plastic.
The original Surface concept was plastic and string.
While Microsoft struggled to develop a successful line of tablets with the first-generation Surface and Surface Pro, the tables turned for the 2015 release of the Microsoft Surface Pro 3. The tablet successfully addressed many points of critique from reviewers and commentators when it came to its convertible form factor and convenience. Suddenly, those early failures made sense.
Microsoft’s Surface line has been a commercial success. With the latest quarter seeing revenue increase 13 percent, the Surface team has sought to define what a next-generation formula might look like for other devices beyond just laptops, phones, and all-in-ones. The result of this creative formula has been some clever creations but also some missteps – and nothing that Microsoft’s Surface products have reached your category defining level.
Surface RT was released in October 2012 and was designed to showcase the new touch-friendly version of Windows that ran on an Arm processor. The technology failed to impress, though, as it had performance issues and a lack of tablet apps. Early reviews also revealed that Surface RT’s features were limited when compared with other tablets.
Microsoft’s Surface was started as a cool idea worth several billion dollars, but the write-down soon ended with a huge debacle.
Microsoft was at risk of taking a near $1 billion hit because they had created too many Surface devices that couldn’t be sold. It was disastrous for the entire Surface project.
After news got out about the $1 billion write-down, the team would get an audience with Panay. It was a tense moment for them, as they got told that their new office was still incomplete.
“We just had a moment,” reminisces Panay as his voice softens with emotion. “I just said, ‘Everybody, stand up and take a step forward.’ They did, and we all did together. I said, ‘We have a plan; stay in the boat, keep rowing your oar. We’re going to get there. We actually have a plan; stick with it.'”
Unofficially, the Surface Pro 3 was a huge success outside of Microsoft.
Microsoft’s Surface Pro 3 turned out to be surprisingly popular outside of Microsoft as well.
Two years later, the Surface team found itself in nearly the same position. Microsoft was planning to launch a Surface Mini alongside the Surface Pro 3. The company had made thousands of Mini’s, but just weeks before launch, Microsoft’s new CEO at the time, Satya Nadella didn’t think the Surface Mini should launch.
“It was Satya’s leadership that helped them through those days back then,” Panay says. The Surface Mini had a stylus, designed to be a notepad-like device, but Panay says it wasn’t enough to launch. “Office didn’t render great on it… the end-to-end value wasn’t in place.”
It was another harsh blow for the Surface team this past January. Panay told them that it was just weeks before the launch of the Surface Mini and it would be scrapped. The team had to face this decision with their head held high. Team member Christian Reardon later tweeted, “Wipe the tears, check your goals and lets go !!!”
There’s the Surface Studio, a PC unlike anything we’ve seen before and a device that lets you pivot the display so you can draw right on the screen. There’s of course the Surface Laptop, a laptop that looks and feels like your classic laptop but with areas optimized for multi-tasking and productivity. As for accessories, there’s a host of versatile accessories for the main hardware, including sleek protective cases for both laptops and tablets.
Microsoft has released two attempts to reinvent the laptop category with the Surface line, beginning with the Surface Laptop and moving on to a more traditional design with the Surface Book. While this design approach may be effective for some, it never reached mainstream status. The idea of a convertible laptop never caught on either, but we’re waiting for other brands to rebuild their devices around the concept.
The Surface Studio Laptop is a prototype of the Surface Pro that uses the keyboard and trackpad of a comparable laptop, but taping them all together.
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A prototype of the Surface Studio Laptop with a Surface Pro and new keyboard and trackpad all taped together.
Microsoft made two big announcements at the Microsoft Surface event in NY. The first was the announcement of their newest, most ambitious mobile device yet: Surface Duo. It’s an Android-powered dual-screen smartphone with a wide variety of software and hardware improvements that have gone through one generation. If it follows the path of Microsoft’s tablet line, though, then third generation could be where it finally clicks for everyone.
Microsoft revisited its original plan for the Surface Neo, which was to use it as a more tablet-like dual-screen device. However, the product was put on hold after the pandemic hit and did not make it to market. Microsoft changed course and focused on traditional PCs and laptops as millions of people suddenly had to work from home. While the Surface Neo isn’t dead, there’s still a future for it or something similar inside of Microsoft’s Surface roadmap room.
Panay believes that this latest technology could lead to a future of dual-screen, foldable, or even rollable devices
The question of how to serve digital content on foldable, smart, and other new technology devices is one that many deal with. For Leila Panay, it’s just not a decision she’s yet made. Her company’s focus is to produce products people love while thinking about the best ways they serve that particular form factor.
Microsoft saw an opportunity to create a new and lightweight operating system, called Windows 10X, in order to target device manufacturers who would take advantage of it. This OS was then merged into what we know now as Windows 11.
Surface Neo was one way for Microsoft to envision what it would look like if Windows turned 10X, as the project was inspired by customer feedback. Inspiring onlookers, Surface Neos reminded Microsoft that people want modern and simple designs from their computers.
Though it was meant to be the “future of Microsoft tablets,” the Surface Neo ran into problems with a pandemic starting.
As the Surface Neo was unveiled, it looked like Microsoft had a chance to lead its competition in tablets. However, once the pandemic hit, the product was unfortunately put on hold.
Over the years, I’ve spoken to Panay a lot about upcoming Surface products. He doesn’t always talk about them during our meetings, but he does occasionally give me some hints. “My favorite part of meeting with Tom Warren is he always asks me what the next product is,” jokes Panay as I ask him whether there will be a Surface laptop one day. I’ve always wanted to see what Microsoft can do for the PC gaming market, but he says that it’s less about Surface hardware and more about OEMs serving that part of the market.
As the Surface team starts to grab a bigger chunk of the PC market, there are signs that the company has finally accepted that Win32 will no longer be coming to ARM. With its latest device, the Surface Pro 9, Microsoft is marketing it as a single device where you can choose how you want your system equipped. You can have either Intel’s standard Xeon chip or an Arm processor
As for Windows 8 and its growing number of ARM-based computers, Panay is optimistic. He feels like the new options are just a function of choices here–like picking between two CPUs for your computer. “It’s not about on ARM or not anymore,” he says. “That’s gone, and I feel like we’re now at this point where it’s just Windows with which device do you need?”
When switched to laptop mode, the Surface Pro has a light blue ribbon on its screen which displays a desktop background.
The Surface Pro 9 with its powerful Intel chip is important to Microsoft because it’s a stepping stone toward future devices.
Microsoft is making strides with AI and their Surface devices. They have a full set of features on the Surface Pro 9 with SQ3 that simply aren’t available on Intel hardware, such as the new Voice Focus feature that allows users to speak without getting in the way of background noise.
In Groene’s opinion, “all our lives we’ve been trying to learn the computer, but now, the computer learns us,” as artificial intelligence is making a huge difference. Computers are like typewriters, where you write letters and have to use them carefully. Now with computers, computers are learning and training themselves to be smarter and more helpful by watching what you do.
Microsoft’s long-term goal is to build its own Arm chips for servers and Surface PCs. However, the company is just getting started on such a project. It’s not even been given a release date, yet. Microsoft partners with Qualcomm, which powers the Surface Pro 9, to find new ways to offer computing experiences that they believe will transform personal computers in the future.
With AI, computers will have a truly profound impact on how you use them and how they’ll evolve. What’s coming next in computing? Microsoft is determined to find out. One of our top hardware innovations is the Surface smart camera, but that’s just the beginning. There’s likely more to come soon.
Get ready, because the 2022 Surface lineup includes the Surface Pro 9, Surface Studio 2 Plus, and Surface Laptop 5.
2022 brings a new Surface lineup with updated versions of the Surface Pro 9, Surface Studio 2 Plus, and Surface Laptop 5.
Critics of Microsoft’s Surface computer thought it would never succeed when it first came out. Apple CEO Tim Cook famously mocked the Surface, saying the device is a “convergence” of tablets and laptops, which he saw as forced. “You can converge a toaster and a refrigerator, but those things are probably not gonna be pleasing to the user”, said Cook.
Panay will be launching over 70 new products including the Essential Phone, a smartphone made from the groundbreaking technology that delivers the fastest support, most cost-efficient service, and strongest reliability in the industry.
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“We always believed, and we still do,” says Panay. “Thank you for motivating us, and thank you for your support. There’s a team here that has a bit of a chip because it gets buried in what’s next but doesn’t mean they don’t believe in what they’re doing.”
Surface has been a company of surprises and one that has never gone with the grain of traditional ways. We believe that this is surely going to lead to more Surface hardware we can’t see coming, such as cameras and types of input that are currently uncommon on tablets.
“The perfect input devices are not just keyboard, mouse, touch screen or pen,” says Panay. “They’re all part of a bigger picture of how we’re going to be writing and creating in the future.”
That means the Surface of years from now could look completely different than the Surface of today.
The new products that use a kickstand, like the Pixel 2, are poised to take an important next step in product design. The most important part of those phones is what you do with them.
