Microsoft Needs To Get Back Its Focus

by Preston Gralla

Steve Ballmer recently issued a mea culpa when he admitted that Microsoft bit off more than it could chew when it embarked on its Vista upgrade that was to change virutally everything about Windows. Unfortunately, though, he went on to say that Microsoft will succeed by going in many directions, and being a "multicore" company. He's got that exactly wrong.

5 Comments

Jimmy
2006-08-02 13:13:18
While I am not trying to defend Microsoft, it seems like wall street could really be blamed for this. Companies have to keep increasing the profit margin even when they are at the top of their game. This means businesss diversification, and while that may make investors happy in the short term, it does not bode well for the original business the company started with.
Al-Mahani
2006-08-02 18:27:42
I could not disagree with you more. The business/software model is changing. For example, Microsoft's core is under threat of extinction - I.E., Linux, OpenOffice and a disconnected but connected world powered by the internet and mobile devices. In short, we are going down the road of services. I strongly believe that MS is going to have to deliver a free version of windows in the next couple of years. With that said, their core business may not be from windows or office. It is essential that Microsoft is looking into the near and distinct future and building the necessary foundation to support these emerging business opportunities. I don't think they have a choice.
Lance
2006-08-03 08:44:49
Are you really surprised at this? Here's the cycle of business. The company saturates it's market and sales start to decline. Some smart person comes in and says "We've got to expand into new markets". There is a flurry of activity as things ramp up. Pretty soon it becomes obvious that the company is spread too thin into markets where they aren't making a profit. A new smart guy comes in and says "we've got to focus on our core busines". All the marginal stuff is closed down or sold off. Lather, rinse, repeat. Microsoft is in the expand stage and will soon fall back into the collapse stage. Give it a year.

2006-11-06 05:58:40
I actually have a Microsoft shirt.
Maybe the apparel business is next.
tiffany
2006-12-15 06:42:03
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