Should Microsoft reinvent itself and develop new businesses outside of software?

“Bob Frankston is one of the smartest people I speak to. If you don’t recognize his name, Bob is best known as the programmer who wrote VisiCalc, the first spreadsheet, realizing the design of his partner, Dan Bricklin,” Robert X. Cringely writes for PBS.

“In a sense Microsoft is a lot like the Roman Empire. The Roman Empire’s growth and economy was driven by conquering and plundering neighboring regions. Within the Empire they created a sort of safe economic zone where commerce could work and technology could be developed. However, that came at a price, as they tended to destroy everything outside the empire as it grew,” Cringely writes.

“Same for Microsoft, whose leaders were greedy and made a number of good, shrewd business decisions. They were also ruthless. Over time they managed to destroy the surrounding software industry. Within Microsoft’s world was a sort of safe economic zone. If you were not a threat to Microsoft or if you did something Microsoft didn’t want to do (like make PCs) you were able to grow under the shadow of Redmond. When the emperor spoke, you listened,” Cringely writes.

“It is too early to predict the fall of the Microsoft Empire. Does Microsoft have the leaders and generals who can lead the company into the future? Who knows? In the software world there is nothing else to conquer or plunder. In other markets it will be hard, if not impossible, for Microsoft to dominate whole industries as it has in the past. Microsoft now needs to act like a responsible company, work well with others, and grow through cooperation and teamwork. This will be hard for Microsoft,” Cringely writes. “The Romans couldn’t do it. The Romans neglected one of their ‘partners’ and eventually that partner did them in.”

Cringely writes, “Today’s Microsoft is a great generator of cash. With some good product refreshes, this cash generation can continue for years to come. The BIG decision is what to do with the cash. Microsoft needs to develop new businesses. Microsoft could have a great future doing things that have nothing to do with computers. They could be making a great electric car, or great new medications, or any number of other things. Microsoft could create new industries that could have a huge benefit to the economy. Microsoft could change the world, again. Ten years from now Microsoft could be a huge holding company of which PC software is but one part. They don’t have to gut the software unit, which is viable enough to be a great moneymaker for another 25 years if Microsoft manages it well.”

Cringely writes, “Right now Microsoft is like a deer in the headlights. They are stuck on software and computer stuff. They can’t move. There are much more interesting growth opportunities out there.”

Full article, including much about Net Neutrality and the idea that “making almost any regulation specifically to hinder OR HELP the Internet can only make things worse,” here.

MacDailyNews Take: Microsoft has never been a maker of great, inspired, elegant, innovative, original software. The best Microsoft products have been bought or copied/stolen. Ideas generated inside of the Redmond behemoth are… well, two words: Microsoft Bob. Maybe Microsoft should take their billions and do something else with it; something more useful, at which they might prove to be more adept?

For example — forget Cringely’s electric cars: electric, schlmetric — GM has so far invested “hundreds of millions of dollars” in hydrogen fuel cell research. Imagine what Microsoft could do in that field with their many billions? Gather the best scientists and engineers in the field, pay them extremely well, and let them get to work. Certainly, leading the world into a hydrogen economy and a truly sustainable future is a better use of their big sweaty piles of cash than slipping and then finally shipping another bloated, ugly, counterintuitive, inelegant Windows operating system along with an equally affected office suite and other software products?

Although, it would take a good bit of PR to reconcile “Microsoft+Hydrogen” (see: Hindenburg), such an endeavor might even be more profitable than floundering around in software trying desperately to cling to “backwards compatibility” to maintain their market position. One thng: just focus on the fuel cell technology, Microsoft, and let Apple handle the vehicle control software and the user interface, okay?

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Related MacDailyNews articles:
What Microsoft has chopped from Windows Vista, and when – June 27, 2006
Windows Vista rips-off Mac OS X at great hardware cost (and Apple gains in the end) – June 13, 2006
Computerworld: Microsoft Windows Vista a distant second-best to Apple Mac OS X – June 02, 2006
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Microsoft botches another copy job: Windows Vista Flip3D vs. Apple Mac OS X Exposé – June 26, 2006
Thurrott: Microsoft collapsing under its own weight, Gates has driven Windows Vista into the ground – April 20, 2006
Windows Vista to be Microsoft’s last operating system? – April 21, 2006
What’s the difference between Mac OS X and Vista? Microsoft employees are excited about Mac OS X – March 22, 2006
Thurrott: Microsoft going to get eaten alive over Windows Vista’s resemblance to Apple’s Mac OS X – March 09, 2006

93 Comments

  1. Read the full article, it is wonderful.

    This blog is just another attempt of MDN to take a few paragraphs out of context and use them to bash Microsoft. MDM is all too frequently just pathetic. They could have done so much more by pointing out the good in Cringely’s article.

    I have little use for Microsoft as we have 6 Macs for 3 people in my household and I love them and Mac OSx. I just find MDM’s continuous harang of Microsoft, too over the top.

    I did find Harry’s “Forget hydrogen – Ballmer’s hot air could fuel a million cars!”, hilarious.

  2. artpease,

    If you really did read the full article, you’d know that MDN most certainly did not “take a few paragraphs out of context and use them to bash Microsoft.”

    Cringely covered two totally unique and separate ideas in the one article. I believe that MDN chose the one most interesting to the majority of their readers.

    MDN also pointed out that “Net Neutrality” was also discussed as they linked to the full article.

    Microsoft sucks at creating unique software that works for people. If you don’t believe that, you’ve never used a Mac.

  3. Electric Schlmetric: I agree we need fuel cell technology. We also need to use hydrogen as a fuel for our existing internal combustion engines and other powerplants. Here is a link to a site proposing a very interesting method of producing hydrogen: http://www.windhunter.org/

    Having said that, if a plug-in electric car met my needs, I’d buy it because I am sick of forking over money to big oil to squander on big salaries, stock options, and pensions for their executives instead of investing in new technologies like hydrogen and fuel cells.

  4. Microsoft ain’t da Romans, it’s da mob. Now it’s musclin’ into my protection rackets. What’s next? Bathtub gin? What’s it gonna do ’bout dat navy destroyer dead in da wadda? If it had any brains, it’d screw da feds outta real protection — five mill or it’ll happen again, GB, right when you need it da mos’, ’cause it’s their finger on da blue screen o’ death button.

    Yeah, right, like Microsoft isn’t the gubmint.

  5. Microsoft could be THE best tech company if that were it’s goal. It has resources galore. But its goal has always been primarily making money– like most businesses. But that’s the problem– innovation in tech requires a mindset that includes moving things forward– and sometimes change has to be radical in what amounts to an intellectual pursuit. They have many smart people there, but because the goal is money, they’re being largely wasted.

    M$ should diversify. It will only stretch them even more thinly, making room for the real tech innovators. Instead of doing a few things very well, they are mediocre at a lot of things. Why not encourage them to get into even more? Every large company/entity that gets that bloated ands up getting cockolded by the new kids on the block.

    I say, bring it on. Bloat, M$, BLOAT!

  6. “Don’t try to tell me what I want. “

    I wasnt, I was taking you to task for labeling people who want us to move forward with both energy independence and responsible environmental policy as liberals or ‘stupid’ as you called them.

    If you wanna buy all the crap MS puts out, go ahead no, one’s stopping you. You ought to consider however that the people who want positive change aren’t stupid, as you put it. They usually are people who see the light and thus are a threat to the status quo and the governing interests that protect them.

  7. I see a lot of people talking up hydrogen power, and it’s good to see so many people caring about the environment. I would like to point out, however, that there’s a major problem with hydrogen power: nearly all natural hydrogen on Earth is trapped inside water. That means if we want to collect enough of it to power a vehicle, we have to split it from water, a process known as electrolysis. (Wikipedia about it)

    The unfortunate thing about electrolysis is water has to be hit with a massive dose of electricity to produce any usable amount of hydrogen, a process that is not 100% efficient. This makes hydrogen cars even worse than electric cars at simply shifting the problem to the power plants that make the electricity to begin with.

    I’m still an optimist, though. In the short term, we need to proliferate the use of hybrid cars and other gas sippers. In the long term, simply replace coal power plants with something cleaner. Solar power is rapidly getting cheaper, for example. And why not generate power from ATP, like living organisms have been doing for millions of years? I’ve even read an article about attempts to fly a special kite high up into the jet stream, harnessing the super fast winds at that altitude.

    The rising cost of gas is an excellent and extremely positive development. It makes the alternatives look much more appealing. In the end, I think capitalism will save us from ourselves.

  8. Channel Z

    Im no fan of Powerpoint, but the simple fact is, that a program isn’t going to cause a problem like this. The people who organize the data and design the presentation have a responsibility to prioritize the data in a manner that articulates their point effectively. The big error here is in not having adequate resources who understand the tehcnology to work with the people on the ground who understand the material, to prepare effective communications.

    In other words, if they had a good design or communications person help them with this, it wouldnt be a problem. To blame it on the software missed the real problem.

  9. go into something else? duh. that’s like turning an apple into an orange (or a rib-eye steak, to be a bit further out.

    Microsoft should accept that it is a mature company and concentrate on putting out a solid product- if some dope isn’t saying “diversify” then another is saying un-diversify- like the analysists that are currently chiding SONY for making perfume, soap and feminine napkins in addition to tvs, stereos, walkmans, washers. . .
    Hydrogen cells in cars? something TOTALLY different? why would you retool a software behemuth over just pulling together a new company from scratch?
    Corporations aren’t people. they are vehicles. and microsoft has just about arrived at it’s destination. It is going to have a very hard time selling it’s next OS. They needed to jettison legacy, but they couldn’t b/c institutions that “make” microsoft buying their product require it. The very thing that makes M$ strong holds it back. And to boot, their next OS has excessive hardware requirements. . . and most institutions/ businesses need a beige box that someone can type on. For a long time, they will stick with XP.
    WHAT M$ SHOULD DO IS INVEST IN APPLE, I THINK LIKELY A BETTER RETURN COULD BE HAD FOR THEIR SHAREHOLDERS. M$ is not going to double their own mshare any time soon. . .

  10. Since Microsoft could not deliver its Vista on time even with the omission of a myriad of promised features, continues to make excuses for delays in the release of Office 2007, and considers Origami a premier example of technological innovation and intellectual prowess, I doubt that Microsoft is capable of producing anything worthwhile except doorstops and soda straws.

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