I have never been a Microsoft fan...I am an Apple fanboy and have been since around 1990. I read many books on the PC industry as a teen and college student. I developed an opinion that Microsoft never truly developed anything worthwhile. They purchased bits and pieces from others and cobbled stuff together. Then, by version 3.0, it would, kinda, sorta work.
Microsoft was a mirror of Bill Gates. A geek with an excellent business sense. Gates was a ruthless nerd with no social skills, no taste and no charm.
Apple was a mirror of Steve Jobs. A visionary with good business sense. Jobs was a ruthless but inspiring leader with enormous amounts of charm, taste and culture.
Microsoft hired brilliant computer scientists who never had a date, didn't care about the arts and couldn't play sports.
Apple hired brilliant computer scientists who were accomplished musicians, writers and artists.
That being said, I have used Microsoft software for over 30 years. I've purchased DOS and Windows PC's for home use. Working in corporate IT for nearly 20 years, I have used Microsoft products--from Windows to SQL Server to Visual Basic and Office--every day of my working life.
Microsoft deserves enormous credit for always supporting customers and always providing backward compatibility. The fact that businesses and home users were able to run legacy software for years and years should not go unappreciated.
Here are my thoughts on what Microsoft should do moving forward.
First, Microsoft should fight to retain ownership of the computing platform for corporations. There is no doubt that Microsoft owns this space today, as they have since their DOS/Windows dominance began in the 1980s. But now Microsoft must determine what businesses--from small family companies to major corporations--need for the next twenty years.
Working in corporate IT, I have seen the slow down in pushing OS and Office updates to end users. My company was running Windows XP until 2011. We are still running Office 2010. In addition, we are moving more and more to SaaS based solutions were possible. We have some SQL Server in place, but Oracle still dominates. We have heavily leveraged virtualization and most new x86 servers are in fact, Virtual Machines.
So...what can Microsoft do to maintain and grow in this space?
Microsoft should define for corporations the future of the desktop computer. Forget about touch vs mouse vs pen...Focus on owning the computing platform that most of the world uses for work.
For the desktop, MS can opt for Windows running in VMs on scaled down notebooks. (Think the old Oracle Network Computer). This virtual desktop model can save corporations on license fees and support costs. It can greatly simplify corporate IT environments. These benefits will ensure that customers continue to go with Microsoft.
A second option is take the ideas of Windows 98 even further and make IE the OS (Think Google's Chrome strategy). This "bet on the future" could provide MS a way to develop the Next Big Thing. We've all seen the growth of web applications and the importance of the browser. Is this fight over? I think not. If Microsoft could push IE (and MS web apps) to become the next OS they could "out Google" Google.
For applications, Microsoft must slow the growth of Google Drive/Docs. I have seen many K-12 schools select Google Docs as their platform for students. Many start-ups and small businesses are doing the same. Why? Because Google Drive is free? It's easy to use? It's "good enough"?
I think the answer is all of the above...Microsoft must develop a way to push Office 365 into the hands of more users. Office 365 must offer a free, ad-supported version. For corporate users, Office 365 must offer differentiating features such easier ties into corporate databases and improved reporting and analytics in Excel, better publishing and document management via Sharepoint, richer email/calendar/task management (see the innovation on iOS/Mac) and best in class tele and web conferencing. Skype is still not heavily used in corporations due to security concerns.
Next, Microsoft must invest and improve other enterprise assets. There are still opportunities in CRM (SalesForce vs Dynamics), business intelligence (SQL Server/Excel vs Cognos, BO, QlikView), databases, .NET, Sharepoint/Intranet, and organizing the volumes of unstructured data stored in Office documents. MS must build robust SaaS applications that are best-in-class, scalable, secure and can be easily deployed and supported by the ever shirking IT staff.
MS must grow Azure into a legitimate competitor for Amazon Web Services. Redmond needs a new set of evangelists to court the current web development hipsters. Make MS cool in this space by offering slick, highly reliable services at a lower cost.
I'm not sure where the Xbox stands on the P&L but I still believe the living room is a battle ground that has not yet been claimed. Rumors have Apple releasing a new Apple TV with apps and games. Microsoft must go all-in on the home with XBox. They should ink deals with cable providers to bundle XBox One with your cable service. Make Xbox One the set top box.
In addition, continue to build out the In Car offering. As with the living room, there is still time to win the automobile segment. Apple's iOS in the Car is struggling. Fix Sync, sign a premium brand and grab this segment.
MS should move to a strategy of making money off of the services that mobile devices use...Not one on licensing an OS for mobile devices.
If MS owns the way we compute at work, the way we are entertained at home and the glue that ties these together (via Azure and Office 365 services) they may not need to be the OS that is on your mobile device.
They should be providing the assets--applications, infrastructure and services--that tie your work device, your car and your home entertainment device together.