Microsoft Corp. (NASDAQ: MSFT) is not a brand name that conjures up the word "innovation" in the minds of many. The company has turned into the world's largest software company over the past two decades, but isn't innovating fast enough to catch the tidal wave of the "internet everywhere" phenomenon that competitor Google Inc. (NASDAQ: GOOG) is cashing in on. What else is left?
For years now, it's been an incredible mystery to me why appliance and television makers have not built wireless internet capabilities into their products. It's really not that hard, but no company has been innovating. With the current energy-conscious U.S. president in place now, energy conservation and alternative energy sources are a hot topic.
So, something that Microsoft didn't have a passing interest in years ago is something the company wants to play in now -- home energy control over the web. Microsoft's Hohm product looks promising, but I'm afraid it won't make the cut unless Microsoft really innovates an excellent product here.
After all, Google has pioneered the stance of having all its products connected to the net -- it's entire existence relies on that. Microsoft doesn't exactly have that reputation. A home energy management tool that is always available via the web seems like dated thinking now that 2009 is half over. If electric cars are to become the norm, electricity management will become a concern pretty quickly as fossil fuels move over during the next few decades.
It's hard to see Microsoft being an innovator here, but it has a real chance to reinvent itself if it can grab onto something and take the lead. It will require being innovative, which will be Microsoft's largest challenge, unless it wants to play in yet another "me-too" field and take a small percentage of the upcoming profit.
Why is gold marching higher? Ask the central bankers
Newspaper ad revenue of 28%, 8 quarters of double-digit drops
Closing Bell: Earnings working against stocks (BCRX, DELL, DHI, INTC, LEAP, PCS)
Reader Comments (Page 1 of 1)
7-11-2009 @ 8:56PM
J Weis said...
When I saw that this blog might be related to a blog I just posted http://tr.im/rWa0 I had to take a look.
At first, i was thinking you were comparing MS to EarthAid.net, a site that is close to what Hohm wants to be.
But of course, the "also ran" referred to Google, who is teaming up with GE, Pepco, PG&E, TXU and other big Utility players to get a glimpse (actually a full tour) of the inside of our homes.
They have both gone to far. Privacy is no longer private. I don't like Google. I don't like Microsoft!