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Terry Sweeney

Why Microsoft Should Forego the Acquisitions Route

Written by Terry Sweeney
7/3/2008 3 comments
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Forget Micro-Hoo or Ya-Soft or how ever that doomed engagement might have been named. Especially where the enterprise is concerned, my money's on something that sounds (or at least behaves) more like Moogle.

Don't misunderstand -- I'm not urging Microsoft to acquire Google (though it would thrill armies of antitrust lawyers if Redmond tried). But at this point in Microsoft's history with Chairman Bill relinquishing the reins, it's well past time the company undertake some drastic reinvention. And if that means becoming more Google-like, so be it.

After some temperature taking in the blogosphere this week, you could conclude that Google's had to install revolving doors to accommodate the alleged exodus, specifically for jobs at Microsoft. Maybe this means Microsoft's really serious about a major overhaul of Windows which, thanks to Vista, transcended its hard-won status as the Jabba the Hut of operating systems: clunky, bloated, unpleasant to approach.

I loved the recent proposal for a Windows OS X to supplant the Vista successor effort known as Windows 7. Between Apple and Google, Microsoft's hold on the desktop has never looked so tenuous, or in such desperate need of a major offensive counterpunch. Apple -- and to a lesser extent, Google -- really seems to get it that good things happen when you make users really want to use your products. My guess is most Windows use the OS because they have to.

I'd love to see Microsoft generate its own version of GoogleApps, and not just mouth some lame software-as-a-service boilerplate. I'd love to see them get really serious about virtualization. What might it do if it untied its business units from the Windows mothership? By creating greater autonomy and even competitive friction, Microsoft might have a real chance at "creating great products," to echo one of Gates's oft-stated axioms.

Change is painful and chaotic, according to either Hillary Clinton or Courtney Love. I suspect Microsoft will endure a couple more years of eroding marketshare before it undertakes any changes that could undermine the Windows franchise. By then, the Moogle model will have morphed to something new. The bigger question is whether most enterprise IT buyers will wait for Redmond to catch up.

— Terry Sweeney, Editor in Chief, Internet Evolution

This blog is part of Internet Evolution's IT Clan, which addresses the continuing impact of the Internet on enterprise networks, applications, and management. Register here to join the IT Clan's conversation, and you just might win something unspeakably cool.

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Raza
Rank: Cave Painter
Friday July 4, 2008 5:44:13 AM
no ratings

But what exactly is the Google way

This question can be solved differently based on the perspective. At one end, I have seen people joining Google and rejecting Microsoft. Why is that, I do know exactly but Google seems to be a more attractive place for innovation and development

 

From the end users perspective, I like the model of Google in which most of the services are free and Google is depending on alternate sources of revenue i.e. advertisment ( i.e. charging advertisers not the users). In Microsoft realm every new version of a software is a way to earn. 

Similarly, there are some questions from the strategy point of view. Should Microsoft focus on its strong hold i.e. desktop applications etc or it should focus on the newer ground like Livelabs. This is the trickiest question I think

And considering the Micro-hoo initiative, Microsoft seems to be having a lot of attraction towards web 2.0 market. Good thing in my opinion but it should not be at the cost of losing the lead in the desktop market

Linux distros focused on desktops are gaining quite some customer base. I may sound optimistic but if Ubuntu goes like it is going then it can give Microsoft a tough competition in next five years ( I am a Ubuntu lover)

 

viboons
Researcher
Friday July 4, 2008 1:36:43 AM
no ratings
Talking about Microsoft becoming more Google-like, perhaps an ad-supported free version of MS Office is not a bad idea for Microsoft to consider. It doesn't have to be web-based like Google Docs but may require users to be online for updates of the ads, and most importantly users can download for free (Microsoft and free?? I know that ain't sound right somehow).
dlavie
IQ Crew
Thursday July 3, 2008 6:59:10 PM

Microsoft has acquisition in their dna.  They acquire a product or they kill it by giving theirs away until you go broke.

When Big Blue needed an operating system, they didn't have one.  When they went back to MS after Gary Kildall wouldn't give them the time of day on CPM, MS sold them Q-dos a product hastily bought from a hack shop, they didn't even pay until after the resale to Big Blue.  Of course this Qdos was bundled with Basic, the first bundled software sale.

So you can see its in the blood.

Along comes Google giving stuff away and now MS has to go back to it's roots to compete.

Dave 

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