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Although it has gotten wave after wave of bad press recently, is Microsoft Corporation (MSFT) really on the ropes in terms of not having a vision or executing a mission? Far from it. Competitors like Apple, Inc. (AAPL) and Google, Inc. (GOOG) have taken the limelight away from the world's largest software company in recent years with flashy products, sales numbers that would make any CEO grin and general rich tech-worthiness in terms of press coverage and upwardly mobile stock prices. At the same time, Microsoft has had one thing go well for it -- the recent launch of the Windows 7 operating system.Apple's iPhone continues to sell like nothing else in the mobile space, Google has basically conquered the entire internet search market for good (and increasing its presence in the mobile space as well), and Microsoft seems lax. The perception is that Microsoft can do no good any longer -- and it's a dinosaur that will be extinct soon. In some ways, this looks like what is happening: its mobile efforts are sputtering, its vision of locally-based software is being replaced by all computing being done on the web instead of inside that laptop and Microsoft's stock price has barely wavered in five years.
Nobody talks about the huge amount of corporate data centers and installed bases of both consumer and business environments that are owned (for the time being) by Microsoft. There are some tasks that will never be replicated by the internet cloud, although most of the important ones will. While the transition takes place, Microsoft will be in a fight to remain relevant. The game is not over yet, although Ole' Softie is behind the 8-ball in a large way.
Can this seemingly large downfall be attributed by salesman-extraordinaire and current Microsoft CEO Steve Ballmer? The friend of the retired and visionary (although controversial) Bill Gates hasn't really come up with anything revolutionary in his tenure as CEO; rather, slight product evolutions have dominated his time in the corner office. No matter when Microsoftites have to say, small changes in many of its consumer-facing products have been pushed aside as other trailblazers have taken the limelight with radical new products and services.
Was Gates really that important to the heart and soul of Microsoft? If so, the golden days are over, and Microsoft, as it's been written for years now, is in the biggest fight for its life -- ever. Ray Ozzie and Steve Ballmer can't save Redmond, but new thinking from every executive can if Microsoft wants to ever have a 40th birthday. It will take that long just for hundreds of millions of PCs and servers to use software other than Microsoft's. That's the only time it has left to completely re-imagine where the company really wants -- and needs -- to go.
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Reader Comments (Page 1 of 1)
12-24-2009 @ 12:03PM
Sean said...
I am shocked by this post, really. I am not sure if what you are saying is based on illusion or imagination. You have to put your feet in really first.
1. Cloud to replace desktop? how? If I can, it will be servers only. Cloud to this, still an illusion, no matter how many people told you, Cloud computing hasn't started yet.
Will it ever happen, very doutful, at least, not for next 5 years.
2. Lets say, according to you, one day, all computing will happen on the cloud. Microsoft has the most complete Cloud platform, and there is no second for the time being. If cloud ever happens, it starts from Microsoft.
3. If you talk about challengers, the only one is IBM, and as we know, IBM is not a thread to Microsoft.
4. The only thing Microsoft want get ride of is google. If you ever heard of Bing and Yahoo. You know what is going to happen next. Google makes 99% percent by search, it matters when they lost any 1% of share. And as we all know that, Bing came out, Google's share increase has stalked and Bing continue to gain. Question, if google lose say 5% of share next year, what do they have to do anything else?
I haven't even mention Window 7, Sharepoint, Exchange, SQL Server...
Thank you very much!
12-24-2009 @ 11:44AM
Brian said...
Spoken like a true Softie! Seriously, you could be somewhat right in the near future, but I am 100% positive Microsoft will not rule the future of computing like they have in the past. to what extent that prediction comes true is up to one company right now. We know who that is.
12-24-2009 @ 12:38PM
sean said...
Thanks, but I am not a softie of any sort. I do work in IT for the past 20 plus years though.
My reasoning is,
1. I don't think anyone truely understand the situation. And I don't think everyone agree with me that cloud computing hasn't started yet. I doubt it will ever. If it will start at some point, Microsoft is at the best spot right now. You may argue, but I am not saying it without seriose knowledge of it.
2. the negativity in media about Microsoft is not footed solidly on facts, but perspects. E.g. Vista, that's truely a great OS, even with temp software compatiblity issues
it is still great. If you put yourself 80% objective on this, you won't agree that Vista is slow. Facts are what really matters at the end.
3. Google's fortune involves a lot of luck than tech strength. If Wikipedia can put Ads like search does, it would be google. Of course that business model doens't exist. Other than some programming tricks, google's technoloy is very thin, they have bought some tech forces later on, but that is not the fundmentals. By the middile of next year, Micrsoft will have 25-30% of search share. Take a guess, if by end of next year, Micrsoft can get to 35% search share aganst Google's 60%, the whole tech landscape will change. 5% will be massive loss for google. Basing on current data, I would say the likeliness is quite high.
4. just like Google, Apple is another company that is shining under spot light like a rock star. But business is not in favor of trends. trends come and go, how many holywood stars last over 10 years? Reason is trends, by nature is timely thing, even you can always do exceptionally good all the time, people wil get tired of you. You can't be always on the same level. Michael Jackson knew that, I think.
12-27-2009 @ 4:33PM
davesmall said...
This chart says it all:
http://finance.yahoo.com/q/bc?t=my&s=MSFT&l=on&z=m&q=l&c=aapl+goog
Notice that Microsoft's share price went up every year until the year 2000. Since then the stock has been virtually flat. Apple and Google have both soared since 2000.
Note that 2000 also happens to be the year that Steve Ballmer became CEO.
Before 2000 Microsoft used to win almost every battle. Since 2000 they are an 'also-ran' in most every product category. Microsoft is a company riding on it's past laurels. Ballmer would be doing the stockholders a favor by resigning.
12-27-2009 @ 9:05PM
BOBBI said...
As a SHAREHOLDER, IT'S TIME TO REMOVE STEVE BALLMER. HE CONTINUES TO SIT AT HIS DESK AND MSFT CONTINUES TO BE SUED. I'M SICK OF ALL THE THOUSANDS THAT HAS BEEN PAID OUT IN MISTAKES THAT MSFT HAS MADE. PLEASE SHAREHOLDERS WE NEED A NEW CEO. BILL GATES, NICE GUY, HOWEVER IT'S TIME TO REMOVE YOUR FRIEND IN THE BEST INTEREST OF THE COMPANY AND SHAREHOLDERS. WE COULD USE THE PAY OUT IN DIVIDENDS TO ALL SHAREHOLDERS.
1-08-2010 @ 2:11PM
indy_bob said...
sean said:
"just like Google, Apple is another company that is shining under spot light like a rock star. But business is not in favor of trends. trends come and go, how many holywood stars last over 10 years?"
AAPL is not a trend. They've been around since the 70's and for the most part initiate trends. And when they don't (MP3), they find a way to OWN the market. They're also smart enough to know when a trend has run it's course and will be on to the "next big thing" before anybody can can catch up to them. Steve Jobs has a vision & a plan....Ballmer has sweater.
MS lost all leadership in 2000 and unless they break away from their strategy of making the PC & Windows central to all things in their universe, they're doomed to eventual failure. They're not a consumer focused company in any sense of the word. Their only focus is on maintaining the windows hegemony as they know it.