As of early 2011, MSFT generates 27% of revenue from Windows and 27% from Office. Over 50% of total revenue still comes from its two key product families.

The company has been trying desperately to diversify its revenue stream for years. It’s had both failures (eg: MS Network) and successes (eg: xBox).

What this shows is that (1) non- OS/Office parts of MSFT can’t compete with the company’s own monopoly (2) MSFT has reached maturity in its markets where it generates most of its revenue.

MSFT needed a strategy suitable for a mature tech company in its situation.

It’s generally acknowledged in the computer industry that IBM has been very successful at entering new markets late, then using its cash and various alliances to buy into predominant market share. MSFT appears to be copying IBM’s strategy for success as a mature tech company.

perfecting the exists one also works if msft can do it. unfortunately it cannot. e.g. apple perfected with iPhone using all of the existing technology. apple did not spend million/billion in R&D to make iPhone.

You have a good argument. Thanks.

Best Wishes,

The car is a combo of the horse drawn carriage (few passengers) and a train.
The train is taken from the horse and man drawn carriage-on-rails (that was used to take stones out of a quarry) and a motor (I forget which came first, coal or wood burning).
And so on.

There are few people that came up with original ideas. The mouse on your computer did not come from MS, but you bought one because they made you need one.

I had an external CD player (and upgraded to an external 2x CD for my office) on a Macintosh. Mac had them standard, but Microsoft made us buy them.

Yes, MS is using the work of others for the most of their money, that is just good business and if you look back of the first 10 years of Windows and the second 10 years, this half is much better.

The problem in the company is not the lack of good ideas, it is the idea that they have to come up with THE KILLER APP, product or service that will make the company rich beyond anything that it knew before. Pushing this logic may eventually lead to something, but it may not work.

Time better spent would be perfecting what exists and making progress towards the next step in the technology and not hoping to find the next ‘magic whatever’. If the magic comes, it’ll come.

come from behind and dominate is an interesting observation. I did not think of that. But that’s very true. I couldn’t agree with you more.

However, can Microsoft repeat this again?

Best Wishes,

Apple is very good example. It entered an existing phone market with a same phone, albeit a game changing one.

Alas! Microsoft is not able to do it. Good to know you agree with the premise of the post.

Best Wishes.