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Thursday, April 19, 2007

Microsoft a Non-Factor in Web Apps

Why oh why has the world's biggest software company been sitting on the sidelines during the resurgence of web application innovation?

The harsh reality for Microsoft is that they haven't produced a hit application -- for the web or otherwise since before there was a Google. The company's strategy for the past decade has been to acquire smaller companies that have already had some success (see TellMe Networks acquistion) and then incorporate the technology into their fold so that they have another tool to sell to current customers.

Or, they develop a "me too" product that is years too late and not necessarily an improvement over an pioneering product, as evidenced by the Zune. At least when Apple enters an established market they go all out and improve on existing technologies.

Despite the marketing power of Windows and IE, the search engine is losing turf to Google, and Live offers little new and hasn't generated much enthusiasm. Microsoft continues to feast on selling operating systems, Office, and programming languages, but the innovation of smaller applications that could lead to something bigger just isn't there anymore. Sure, they had a free web calling utility a decade before Skype (NetMeeting), but it was too early and too clunky.

So is it the Microsoft culture -- do visionary developers willing to take chances not care to work at the giant, or does the monolith suppress the ideas of those who have the talent to create something compelling and unique -- such as Flash, Digg, or Technorati?

Microsoft spends more money on research than all of the Web 2.0 companies earn in a year, yet they haven't done anything innovative in the web space other than plumbing in a long long time. Perhaps the company needs to launch more satellite offices that are outside of their normal processes and oversight and let their best minds free to explore new ideas. Or, maybe the company isn't interested in trying to break new ground and is happy to live by tweaking its existing cash cows. That would be a sad legacy as Bill Gates takes his leave.

Source: MediaPost.

Posted By John Gartner at 09:57 AM
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