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I must disagree with everyone. MS's downfall was not the Wizard of OZ style problem. The problem is investments. You see any good investor will tell you the same thing: DIVERSIFY YOUR PORTFOLIO. Sure if I invested into google day 1, I'd be rich. If I bought Apple stock when it was $80 a pop, I'd be rich. Etc. HOWEVER knowing that a-priori is impossible, so you diversify.

If you think Microsoft, what do you think?

> Microsoft Windows

> Microsoft Office

> Internet Explorer

> .Net

Let's tackle them:

Internet Explorer -- Use windows. It only works on windows. If you leave windows your browser is no longer available. Originally intended to make even the web work on windows only. Basically Macs were crippled to all hell. Counters -> Firefox, Safari, Chrome are all cross platform, most people who use that suffer nothing switching.

.Net -- Its Objective-C for windows. There are more uses for it, yes, like writing servers as an alternative to java, except they work on windows. End of the day it serves the same purpose.

Windows -- The flagship product. This is what MS wants you to use, and on your server, because this makes MS money. The problem is that MS makes zero dollars from a computer that can run Windows. It makes money on windows. Piracy is a real problem. If I was to install a pirated windows on a computer, MS is quite furious for good reasons. Compare that to Apple who will give you a copy of OSX if you ask them really nicely, and does NOTHING to prevent piracy. The only thing they care is that it runs on Apple hardware. More later.

Office -- The other flagship product. They convince businesses that sharing information is only possible with this. Period. As Google Docs, LibreOffice, Confluence, Basecamp, etc start to become more and more popular, the office stronghold is being chipped away brick by brick, and MS can't lay bricks fast enough to counter.

Let's compare that to Apple's model:

iTunes -- Initially shipped with DRM to prevent using anything other than iPods to play music. By the time they removed DRM it didn't matter, iPods were here to stay.

App Store -- You can only run the apps on iPhone/iPod/iPad/OSX

OSX -- If it's pirated, who cares, it only runs on Apple hardware.

Garage Band -- Eh, its cheap. Whatever, use it if you like. Its OSX only so we'll give it practically for free.

Safari -- Runs on windows and mac. They don't care about linux. Just to get people used to the "mac way"



You're completely missing the enterprise side of the equation, which is still a booming part of MSFTs business right now. And they are still a goliath in Enterprise (Windows Server, Exchange, SQL Server, etc).

You also speak of their 'downfall' in the past tense, as if it's already happened. They still push 90% of desktop market share, rule enterprise, rule the Office suite business, and have some nifty things going on in the entertainment side (not profitable, but nifty nonetheless).




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