The SEA change: Microsoft "Live" is Microsoft the follower and this time around that strategy won't work...here's why
The announcement of Microsoft Live seems a couple of years late. Of course, Microsoft has done well over the years by following others that pioneered markets and then cleaning up because of its scale. But following a company like Google won't work for Microsoft this time, because by the time MSFT figures things out the market has moved on.
I spoke with one of MSFT's lead engineers recently and he was telling me about the fantastic search technology that they have in the labs. That it is better than GOOG's. But the conversation has moved on: it's about Search-Enabled Applications now, it really is a SEA change (and the apps are AJAX).
Rebranding some MSN stuff and adding layers of subscription based services is not going to get MSFT very far.
MSFT can live off the fat of its enterprise market but that won't last forever. And it cannot compete against GOOG's low operational costs--GOOG is much more New Rules Enterprise than MSFT. And it will be MSFT's legacy culture and thinking that will sink the company.
BTW, GOOG does not see itself as a MSFT competitor. The fact that it added a few programmers to help out OpenOffice is not significant.
The New Rules business mantra is: just focus on making sure you execute in your own business--the competition will take care of itself.
GOOG just needs to make sure it is always a step ahead of MSFT (and anybody else)--MSFT will take care of itself. Its legacy burdens will see to that.imho.
Cnet's story on Microsoft Live launch:
Gates: We're entering "live era" of software