You’ve probably seen the announcement by now: Microsoft is buying Skype.
I like Skype. A lot. I’m depressed.
My initial thought was: how long before Microsoft runs it into the ground? Microsoft has been all over the road. Ray Ozzie, their supposed visionary, has left the building. They’re increasingly being seen as an dinosaur. The large, nimble giant is now a lumbering, aimlessly wandering giant. And Steve Ballmer’s answer? Bury your head in the sand, and just keep pounding the same Windows beat…
I was pondering all of this after hearing the Skype news and had a revelation.
I used to be a big Microsoft fan. I made my living for 25 years by developing Windows software. I hated Macs and wished they would just go away already. Today I work on OSX exclusively and wouldn’t use a Windows machine if it were GIVEN to me. What changed? What happened? I think I know. And it’s a huge, fundamental problem. I have not seen anyone pick up on this yet — this is entirely my opinion, right or wrong. Here goes:
They reached their goal, and have no clear vision anymore!
That’s it. That’s the problem: they’re done.
Allow me to explain.
Since the earliest days of Microsoft, when they were just a handful of guys teetering on the verge of bankruptcy in dusty New Mexico, they had a vision. A vision driven by their Founder, Bill Gates: A computer on every desktop, running Microsoft software.
That was their mantra. And they worked towards global domination.
But a funny thing happened: they achieved it! Now what? There’s no “new” vision. Now all they’re doing is trying to hang on. Maintain marketshare. Maintain earnings. Please Wall Street.
If you stop and look at the “movers and shakers”, they are all on a mission to accomplish something. Facebook wants to connect everyone in the world and create the social web. Google is out to make it easier for individuals to find stuff. And so forth.
So Microsoft is out chasing Google. What’s Google doing? They’re trying to help people find stuff faster, easier. Why did they buy YouTube? Because it’s one of the largest search engines on the planet outside of Google. People searching for videos. Why did they launch Google Maps? To help people find places. Why are they getting into mobile? To help people find stuff faster and easier on the go. And so forth.
Microsoft really does not have a clear vision or raison d’etre anymore, and they can only hold on to marketshare for so long, fending off the wolves. They have massive cash reserves (that are about $8 billion lighter now), so they can wait it out a while yet. And they do have some cash cows still. But their heyday has long since passed. Mark my words. It’s all downhill from here.




