Microsoft Getting Pragmatic in Middle Age

Microsoft has made a few moves recently that suggest a sense of resignation and maturity about its web business.  These include:

1) reported talks with AOL about a partnership or merger,

2) the termination of negotiations with big record labels regarding a proprietary Microsoft music service, followed by the striking of a distribution deal with RealNetworks, and

3) a reported deal to link the MSN messaging platform with Yahoo!'s.

The unifying theme here is a willingness to partner to gain strength, something that the hyper-competitive and monopolistic Microsoft of old would have been loathe to do.  Although the decisions can be seen as throwing in the towel in certain areas, they are also pragmatic and smart: if you can't be No. 1, join forces with Nos. 2, 3, or 4.  A scarier stance would be the bullheaded belief that, because the company is Microsoft, web domination is only a matter of time.   

Comments

[W. Zimmerman]

But at the same time we also have Bill Gates getting into a shouting match with the CEO of Sony over DVD formats, we have Steve Ballmer throwing chairs when engineers go to Google ... doesn't seem like anything has really changed!

[Jim Hillhouse]

Microsoft is a middle-age company--true enough. But Apple isn't. Curious. Jobs and Gates/Ballmer are about the same age, but apparently there are vast distances in their ability to see market trends. And Ballmer? He's leading a company that is in a changing world, where computers and media are merging, where original thought and responsiveness, where maxing the user-experience, will be at a premium. Sadly, he's competing with Jobs and others who are highly responsive and original while Ballmer, from what I can tell, is not. Pity the guy--now Jobs is intro'ing video and probably taking yet another market away.