February 5, 2010

Is Microsoft Dead?

Filed under: Main — Dan Gookin @ 12:01 am

Can anyone name anything successful that Microsoft has done in the past 10 years? (Say something! If you don’t, this will be one heck of a short blog post!)

For a long time, I’ve viewed Microsoft not as a monolithic block of evil, but rather as multiple petty fiefdoms all bickering with each other. Honestly, it amazes me that Microsoft actually produces anything.

A recent New York Times editorial confirms my viewpoint. Written by former softie Dick Bass, it says some wonderfully insightful things about Microsoft, things that should make the shareholders shudder in fear. For example:

At Microsoft, [uncontrolled competition] has created a dysfunctional corporate culture in which the big established groups are allowed to prey upon emerging teams, belittle their efforts, compete unfairly against them for resources, and over time hector them out of existence. It’s not an accident that almost all the executives in charge of Microsoft’s music, e-books, phone, online, search and tablet efforts over the past decade have left.

Yikes!

You see, Microsoft is trying. They were working on a tablet years ago. Sabotaged. They could have had a portable music player long before the Zune. Sabotaged. They could have had all sorts of spectacular things, proposed and promoted by individual teams within Microsoft. But apparently the big bully groups — Windows and Office — throw their weight around and stifle those efforts.

Says Mr. Bass:

Microsoft’s huge profits — $6.7 billion for the past quarter — come almost entirely from Windows and Office programs first developed decades ago.

That’s not good news. I’m sure that the managers and engineers in the Windows and Office groups are pleased, but the question looms: What has Microsoft done lately? Where is the innovation?

Mr. Bass passes along pretty dismal news on the innovation front:

There has been a steady exit of [Microsoft’s] best and brightest.

I’m sure that the profits from Windows and Office will continue to keep Microsoft’s bottom line flush and attractive. I’m also equally sure that the bullies who run those two kingdoms will ensure that they are protected and not threatened by any talented upstart group or interesting side venture at Microsoft.

Historically, I recall the fate of some big names from the early days of computing. WordPerfect Corp. Ashton-Tate. VisiCorp. Even the venerable Lotus. These were all powerhouses that made a fortune from single programs that once dominated the industry. Today, they’re all gone. (WordPerfect exists, but is not a powerhouse.) Could Microsoft be headed toward a similar fate in coming years?

6 Comments

  1. It could happen, Dan. They need to make their Zune more mainstream (releasing them outside North America would be a good start), this would probably perk up sales a smidgen in that department, mainly because people would be curious as to what this “new” gizmo is like.

    But if Microsoft can come up with one innovative product, just one, this could save them.

    Comment by Douglas — February 5, 2010 @ 3:09 am

  2. If MS doesn’t do something then I think is will be clear that MS will go the way of previous corporations. It may not be fun to think about but if MS has to go, maybe it’s time for MS to go.

    Comment by linuxlove — February 5, 2010 @ 8:40 am

  3. Back when the Justice Dept. was trying to bust up Microsoft, I commented that it would be a good thing: MS is really several separate companies. There can be an operating system company, an Office company, and then the company that makes the Zune and XBox. That would be a key to success. I don’t see it happening, though.

    Comment by admin — February 5, 2010 @ 8:48 am

  4. Actually, your comment reminded me of the XBox – I’m not sure if it came out in the last 10 years, but it has been reasonably successful. The few cool things I can think of from MS come from their research department – like World Wide Telescope (I find it to be a very nice educational product – though possibly not a success in terms of becoming a household name). From that perspective, Windows XP must be one of their big successes – they seem to be having a hard time killing it (well, that holds for IE 6 too…).

    The problem seems to be MS still considering itself a software/product company – maybe if they focused on developing the services side of their business, they could give some real competition to Google.

    Comment by sriksrid — February 5, 2010 @ 1:43 pm

  5. Oddly enough, Microsoft touted their Bing Maps at TED today – http://techflash.com/seattle/2010/02/video_bing_maps_at_ted.html

    I gave the new features a spin – and I was quite impressed (except for the memory hog problem on my laptop). Some of the features (images from Flickr as overlays) were really nice.

    Comment by sriksrid — February 14, 2010 @ 5:36 pm

  6. I’ve also heard good things about Bing maps. Microsoft must be credited with trying hard. They don’t innovate well, but they do catch up quite nicely.

    Comment by admin — February 14, 2010 @ 5:40 pm

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