Thoughts about Microsoft's future

In 2000, when I picked up a book about ASP.NET Beta, I was impressed with Microsoft’s ability not only to copy Java, but make it simpler and better. In the next couple of years I switched from doing Java/Oracle projects to .NET/SharePoint projects. It turned out to be a great call. SharePoint is a product that Microsoft got right even with all of the problems it has. .Net has practically became a standard within the enterprise and now promotes all of Microsoft server products.

I am fairly loyal to Microsoft products even outside of the corporate world. I have an Xbox and a Zune (and this is after a couple of IPods).

So why I am writing this? Microsoft is clearly losing the battle on the consumer side and it’s only a matter of time until Google/Apple make a much stronger case in the corporate world with Google documents/Gmail/Iphone/Android etc.

Why is Microsoft losing the battle? Steve Ballmer’s ineffective leadership and poor execution.

Some of the major execution failures under his watch:

- Zune (F) – failed to copy Apple feature set; horrible desktop software.
- Live.com (C-) – took too long to roll out; did a couple of reactionary to Google/overpaid acquisitions.
- Vista (B-) – perceived performance is bad; lied about system requirements on the initial roll out (I like Vista with 4GB of RAM, but XP was still faster).

Shareholders should demand a better track record from a CEO of the largest software company in the world. Microsoft still has a lot software power and a few simple adjustments would really help the company and likely the stock price:

- Get a new CEO – somebody from a successful Microsoft business unit such as Xbox or SharePoint.
- Lay off hordes of contractors and limit frivolous hiring. In the last year, the number of employees Microsoft hired is equivalent to 55% of Google’s total workforce. And I though Google hired too many. Contractors make Microsoft more and more like IBM.
- Focus on performance. Stop assuming that the hardware will get better and better. Deliver products that require less RAM and CPU.