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Is Microsoft relevant anymore?

At what point does an acquisition signal a white flag? Is it just me or is it weird that the largest purchase in Microsoft’s history is for a company it could have bought for half that price (at least) a couple years ago. I’m pretty sure overpaying for a company in an industry you could have dominated if only you’d recognized the world outside the desktop signals flawed strategy more than it signals a return to prominence. John Battelle decided to take a few days to determine the meaning of this one. Combine this with their recent saber-rattling over open source and patents and to me, it’s clear. Microsoft knows it’s hosed and is trying to buy – or cajole – its way back to the top.

Tim Peter is the founder and president of Tim Peter & Associates. You can learn more about our company's strategy and digital marketing consulting services here or about Tim here.

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  1. […] Now is the only time you get. Sure, Mike Arrington is in a pissy mood about now. He’s bummed that the good ol’ days have rolled up their tents and headed for the hills. Evidence like Wallstrip selling out after nine months and the whole Microsoft/aQuantive hook-up suggests he’s right. Right? Is it silly money being thrown in everyone’s faces? I don’t think so. Oh, there’s some silly money going around – see the Microsoft deal mentioned above – but the rest is a question of perspective. I recently spoke at a conference and got asked by a veteran business owner whether his company’s 50-year investment in building its brand, its customer service standards, and its customers’ loyalty was doomed because it hadn’t invested heavily in technology, whether that train had left the station. As Seth Godin points out so effectively, the train only pulls away when you decide not to get on. […]

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