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Microsoft makes a killing in the enterprise services market (aside: where, arguably, quality and user experience is less important than scaleability, end-to-end services, and feature set). The problem is that the latest round of technology (mobile, gaming, etc.) is not enterprise in the least. For an example of enterprise thinking failing in recent years, look no further than Research in Motion.

Businesses will always have their own set of problems and solutions. As Dustin points out, this is very profitable. But I think the line between enterprise and consumer software (and hardware) is blurring to the point that there's not a clear delineation. If you can't be attractive to the consumer market, you're going to start seeing other people eating your lunch in the consumer market (see also: rise of iDevices in corporate IT shops, entrants like Google and Dropbox, etc.).

Microsoft throws its legacy weight around, which counts for a lot. And they have some genuine good products, which counts for a little. But, IMO, their progress moving forward is more hindered than helped by Ballmer.




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