Monday, May 31, 2010

Another Microsoft or just a revamp?

The Microsoft we have come to know today is very different from the product innovating machine it used to be 3 decades ago. With USD 9 billion in R & D (2009), the question keeps reoccurring: Are they just playing it safe or simply unable to reach a break through outside the software industry. This is precisely my first issue to pick with the still mega-giant corporation. The lack of product innovation and internet penetration is becoming embarrassing; a black hole within the company.. Over used, its umbrella effect is wearing off. Struggling Microsoft examples are all over the net (ranging from Bing to MSN). There ineffectiveness to successfully exploit the internet by integrating their software platform is evident.

So what is the solution? Our next topic is is Mr. Ray Ozzie, Microsoft’s Chief Software architect. Succeeding Bill Gates in 2008 to take on the high profile spot, Ray Ozzie is claimed to be by many critics to be the next Microsoft CEO. While Steve Balmer is known for his energy, audacity, and, marketing capabilities, what he lacks is what Microsoft lacks; Product Innovation. The question is can Ray Ozzie fill this void, and lead the company in its new direction? The answer is purely speculation. But what we do know is his track record at Lotus Notes; A pure genius with an appetite for product orientation and development.

Going back to our present Microsoft, I would like to draw your attention to a recent article written in the New York Times by a former Microsoft employee. Dick Brass, the writer, claims that despite record earnings Microsoft is failing miserably. With a lack of innovation, the corporation has put all their eggs in one basket and seemly has decided to live off the Windows and Office suit proceeds. Even when launching a failed product, they still manage to get it out there (through various predatory tactics). Bundling is a notorious example (my third issue). It is no surprise that an attack of law suits and anti-trust legislation has been plaguing the corporation for years. Microsoft has pulled out all the stops in predatory pricing virtually killing competition. . In October of 1997 the Justice Department filed a motion with the Federal court to order Microsoft to stop the bundling of Internet Explorer with Windows (extinguishing Netscape). They have also been accused being an abusive monopoly by the courts and have paid huge amounts of fines. Their lack of innovation has pushed them towards unethical business practices as the only means to secure their immense profits. The question is how long will this last for, before someone punctures a sustainable hole in their umbrella effect.

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