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Microsoft to innovate? It's far too successful for that
Messing with the formula, Mr Ballmer?

By editorial@silicon.com

Published: Monday 10 June 2002

"Innovate." That's the message Microsoft boss Steve Ballmer set out in a 2,700 word memo to 50,000 staff late last week. He wants new products - not just new features in old products - and he wants them now.

This is going to be a tall order for a company that excels (excuse the pun) at product execution but hardly has a convincing track record when it comes to bringing brand new technology to market.

A quick glance at Microsoft's flagship applications and for everyone on the list there's another from a far less successful source that has a stronger claim to being there first. Consider the following PC technologies and decide for yourself who was the innovator:

-- Word processor: Microsoft or WordPerfect?
-- Spreadsheet: Microsoft or Lotus?
-- Database: Microsoft or Oracle?
-- Graphical operating system: Microsoft or Apple?
-- Network operating system: Microsoft or Novell?
-- Web Browser: Microsoft or Netscape?

You get the picture. And when Microsoft doesn't build 'me too' products, it goes out and buys them - FrontPage, Great Plains or Hotmail anyone?

This is not meant as a criticism. Here is a company that instinctively knows how to develop, market and package existing products. In short, Microsoft has the populist touch. It's a well-known paradox that it is this populist approach that has made it the least popular software company among the techie community, a community that believes Microsoft has used bullying and monopolistic tactics to extend market share.

Accusations notwithstanding, it is in execution - and not in innovation - where Microsoft's strengths lie. Does Ballmer really want to start messing with a winning formula right now?