Ok, I'm back (long day).
So first, what's not to like about MS from a business perspective.
Brendan wrote:The first reason is "ethics". Basically Microsoft are a company, and like all companies their primary responsibility is to their shareholders (not to their end users or the industry itself). Microsoft have proven themselves to be extremely good at looking after their shareholders (even if it's at the expense of their end users or the industry itself).
As I said, IMO Microsoft is not doing as well by its shareholders as it should be. They are sitting on a mountain of cash right now, spending it left and right developing "me too" products to try and knock competitors out of the market (e.g. -- Zune).
There is an argument to be made that companies should give as much of their profit to the shareholders as possible in the form of dividends, rather than building a gigantic war chest for future expansion. That way, senior management has to justify the cost of borrowing money to expand, instead of just expanding willy-nilly in random directions, as MS now seems to be doing.
If I were an MS shareholder, I'd be a bit peeved that they're throwing money at things like the Zune out of some general anti-competitive paranoia ("Apple beat us in a market that's only tangentially related to our core business! We must retaliate!") instead of putting it into projects where they can actually deliver value for their customers.
Speaking of customers, IMO Microsoft has a problem with accountability. Most of Microsoft's revenue comes from Windows and Office. Most copies of Windows are sold via OEMs, not in the retail channel (I'm betting that most copies of Office are bundled with said OEM copies of Windows, but I don't know for sure). This means that all MS has to do to succeed is convince the OEMs to keep buying Windows. There isn't much incentive to actually make it
better, because by and large they're not selling directly to customers, and there isn't any serious competition in the market for client OSes for businesses (Linux is making a big dent in the server space, which is good for everyone, but MS still owns the client).
To see how this works, think about how you as an indivdiual buy software versus the way businesses buy their software. Usually, you are not only the buyer, but also the end-user. You actually
care about whether the software you're buying is going to meet your needs, and whether it's going to annoy you thoroughly in the process (anyone who tries to use the advanced features of MS Word will know what I mean). When someone buys software for a business, normally they're not the person who will end up using the software. This means that they're generally pretty clueless about whether the software is actually good -- all they have to go on is the marketing material.
Granted, this sad situation is largely the fault of uninformed buyers of business software, but MS takes advantage of this in a big way. So when individual end users like you (and me, before I bought my Mac) get pissed off at some long-standing bugs in Windows or Word or Whatever, we are basically ignored. IMO this is why MS is not doing so well in the consumer electronics space -- there is this disconnect with "regular people" caused by a lack of competition and incentive to actually listen to customers.
That's it for the business stuff. I'll get onto the technical stuff about the history of Windows tomorrow...