This Yahoo deal confirms a suspicion I have been holding for quite a while now. Microsoft is spreading itself too thin. Think hard about this, here are the competitors to Microsoft’s business:
- Google: Online, search, email, cloud computing
- IBM: Server software
- HP: Server software
- Oracle: Database and business software
- SAP: Business software
- Apple: Desktop and consumer operating system
- Sony: Play stations and gaming
- Nintendo: Play stations and gaming
- Nokia: Mobile
- RIM: Mobile
- Amazon: Cloud computing
And the list goes on. Now do another comparison. Is Nokia a competitor to say Google? Or is Apple a competitor to Amazon? Or how about IBM to Sony? Answer not really. Yes Microsoft has partnerships with many companies, but the fact is that these companies are Microsoft’s competitors.
It is ironic there was another company that tried this failed and moved on, namely IBM. Back in the 80’s IBM did everything and anything. They were a one stop shop for tech. IBM went nowhere. Lou Gerstner became CEO of IBM and the first thing he did was focus IBM. Entire divisions were cut. For example IBM sold its highly profitable and desirable notebook division to Lenovo. They did so to focus the company.
No company and I repeat NO COMPANY can compete on this many fronts with this lack of focus for any extended period of time. Did you hear IBM bought SPSS? Smart move IBM! Congratulations, you bought a company that specializes in data mining. This is a field that will be a necessity, and who is not up to speed in this domain? Oh yeah Microsoft YOU AREN’T! You are not even up to date in CEP! This is what happens when you are spread so thin…
Until the management at Microsoft clue’s in this share price is not going anywhere.
So what am I looking for to make me want to buy Microsoft shares? Ballmer and his top management needs to be fired!