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Five ways Microsoft could change after Gates
News analysis: Life after Bill…

By Tim Ferguson

Published: Monday 07 July 2008

3. Secure new revenue by buying big:
The $44.6bn bid that Microsoft tabled for Yahoo! back in February was a big shift for the company which traditionally has shied away from massive acquisitions preferring more organic growth and smaller piecemeal acquisitions.

This indicates Microsoft is really keen to build a better position in the online advertising market. Currently Google has a massive lead in this area.

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Significantly the bid seems to have been led by Steve Ballmer rather than Gates. And while Yahoo! rejected the bid and all seems to have gone quiet on that front, the size and audacious nature of the bid shows Microsoft was deadly serious.

So don't discount another big acquisition bid - it seems Microsoft is very keen to get its mitts on one of the prime online advertising companies, so sooner or later something will have to give.

4. Taking the web seriously through interoperability:
This includes moves such as Microsoft announcing in May that it will implement the Open Document Format "sometime next year" meaning documents can be processed and worked on different platforms. This shows the company is obviously thinking about how it can improve interoperability.

And the work on Live Mesh shows Microsoft is seriously thinking about the internet by allowing synchronised access to data whatever device you're using, meaning you're not tied to a single desktop computer - the kind of cloud computing play that many of its rivals

These moves show Microsoft is adjusting to a world where its products aren't always the default option. For this to work, obviously the platform needs to be as open as possible, especially if it plans to compete on the same level as Google.

5. More Microsoft than Gates:
Gates was the face of Microsoft for so many years and for many synonymous with the company. Execs such as Ballmer, although well known in the industry, are unlikely to have the global visibility Gates had. In addition, it's likely more people will be part of the strategic decision-making process.

The corporate behemoth may well become faceless with Microsoft's activities less attributed to the influence of an individual and more to the corporation itself. Gates was the one that made Microsoft into the world's most famous tech company due to his technical and business brilliance.

Without Gates Microsoft runs the risk of becoming a faceless super-corporation focusing on sales rather than developing the tech that could give the company an edge.


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