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Regardless, of the how the foundation moves forward, the potential benefits for Microsoft are numerous, given that many of the early projects will likely focus on the their product ecosystem, despite claims that the foundation will be platform agnostic. Ultimately, the possibility of delivering a better product to consumers was perhaps too good to pass up, in spite of the financial outlay. Think of it as money invested in R&D with greater leverage. Depending on the spin, this announcement can also go far in bolstering Microsoft’s standing in the eyes of the general public as well, the very same people that could be buying their software down the road.

Bill Hilf, general manager of Windows Server, explained the decision on his blog:

“The perspectives on OSS at Microsoft have evolved to the point where Microsoft’s open source strategy is no longer just locked in a single ‘lab’ on campus – now OSS is an important part of many product groups and strategies across the company. We have become increasingly clear on where we work with open source – development methodologies, projects, partners, products and communities – and where our products compete with commercial open source companies or platforms. Today, there are engineering and business leaders across the company, myself included, looking at how to drive interoperability for customers and as a lever for new growth.”

[image via schoschie]

Despite the early optimism, G.M. is tempering early expectations by choosing to test out the service among their California dealerships, before rolling it out on a nationally. The initial program runs through September 8th, a decision made in part because because G.M.’s market share in California is just 13.5 percent, far below its national share of about 19.5 percent, giving the automaker a chance to see how the release affects sales.

The announcement comes at a time when G.M. is attempting to maintain its position as the leader in new-vehicle sales, even as it simultaneously cuts four of its eight brands, a move that could cause the company to lose further ground to Ford and Toyota. Still, it represents a shift in philosophy for an industry that is solely in need of innovative thinking to help bolster lagging sales and recognizes the potential opportunity offered online.

According to the NY Times, “Vehicles will not be auctioned to the highest bidder but rather listed at a “buy it now” price equal to G.M.’s supplier price. Shoppers also can submit a lower offer that the dealer can choose to accept or reject,” opening the door for negotiations without having to be face-to-face. And while this ability to anonymously shop might be appealing to would-be buyers, it can’t hope to simulate the actual driving experience provided by going down to a dealership.

Given that purchasing a vehicle is still a major decision for most consumers, it’s hard to image significant numbers flocking to a website to buy one sight unseen. Unless of course, the deals are that good and the transactions that easy. Regardless, if the platform manages to draw in customers willing to give G.M. a second look, then it has to be looked upon as a positive first step. Beyond that, it will ultimately fall to the vehicles and not the platform to close the deal.

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