The Wall Street Journal has unearthed a memo from Steve Ballmer, CEO of Microsoft (MSFT). In it, he lays out some of his plans for the company.
The program falls into four buckets. The first is that he will more carefully monitor the launch of Windows 7, which will eventually replace the doomed Vista OS. Next, he will set up a structure which allows the operating groups within the company to work more closely together. Third, he wants to build out a consumer electronics group. As the paper writes, "He now is pushing to more aggressively attack the consumer market and compete with Apple’s hit iPhone." Finally, he wants to ramp up his internet group and search business.
The memo may be instructive, but is covers ground which has been part of the Microsoft push for over a year.
Ballmer does have a shot at the consumer electronics business, but it is a long one. The Xbox has been a huge success. The Zune multimedia player has been a tremendous failure. Competing with the iPhone is a dream, but not one that will come true.
Search is also a long shot. If Ballmer can pull that off without the Yahoo! deal, it will be a miracle.
The hopes for Windows 7 are the most important hopes, and they are real and realistic. Microsoft has certainly learned from Vista. The product before it, XP, is a fine map for what Windows 7 could be. The OS is where Microsoft makes its money. It should stick to the knitting.
Douglas A. McIntyre
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