A possible interview to Microsoft

We interviewed you for a former senior executive now retired, which for convenience call William Ingressi, a major global IT giants.

B: "Mr Ingressi, you have worked for a life in a company that has distinguished itself lately particularly as web company, for distribution of open source applications and for the fight against monopolists giants of the Web: it takes to say the name of this company? "
I: "Of course, we're talking about Microsoft Corporation."
B: "How?!? Microsoft?....(pause)"
B: "We are talking about the same company that 20 years is followed by Antitrust (which has been repeatedly fined), developers on open platforms, users who criticised trade policies and the quality of products, who it challenges the policy PC-centric .........?"
I: "Yes, my timing was so, but since Steve Ballmer becoming CEO things have changed."
B: "Mmm, you better explain ..... we speak such as your attempt in 2007 to recognize the Office Open XML format as a standard ISO."
I: "MS Office is already a de-facto standard, since it holds 90% of the world market in document management, but has never been officially recognized since there are those who believes that it should openly interact with other formats . "
B: "Let's give an example: OpenOffice can handle both formats, while not affiliated Office formats competitors."
I: "Yes, but these are problems for competitors, not for Microsoft, we are in a free market."
B: "You talk about market, others talk about usability and respect for users, but rather tell me what has triggered the change of direction."
I: "In early 2008 Microsoft declared at the UBS Investor Conference to achieve over the next five years, the goal of a market share of 40% in digital advertising, against the current 6%."
B: "Is this the reason of the offer launched on Yahoo!, right?"
I: "Even, but not limited to: Yahoo! has a wide digital community, Flickr and Messenger over all, a great search engine and other asset platforms that in some cases would fill gaps in MS, in other cases overlap and could be integrated. It's not a secret that MSN has not yielded the expected results. Please, don't type this."
B: "Some people think that Microsoft use this strategy because over the years hasn't acquired a mentality that has always been rounded in the PC world, and that to become a true Internet company must have it into DNA and have the right skills."
I: (silence)
B: "Then in February came our membership in the OpenID, the shared digital identity. What's the key to read this?"
I: "Keep in mind that 90% of operating systems installed is signed Microsoft, which corresponds to many potential identity Live Id. Redmond thought that it is possible to capture the users of social networks that already uses this platform."
B: "And so we are a few days ago, with the change of the offer of Live Office Small Business, for break in the growing market for Web applications."
I: "Google is very forward in this field, with Docs, Gmail, Calendar, Reader, Maps, StarOffice.
Other companies such as Yahoo!, Adobe, Apple have made interesting projects.
Microsoft believes to be able to carry on the web 20 years of experience on office applications."
B: "This means that Microsoft will become an Internet company in all respects, with products open and interacting with the rest of the Web, or they try to bring the web on PC?"
I: (pause )......."I don't see in this way: for example, Microsoft has opened protocols Windows, Office and SQL Server to the developers. This interoperability to other applications should benefit, hours and then there should be no more obstacles to the recognition of Open XML as a standard, I do not know if I explain ... "
B: "One more thing: do you want to anticipate something with regard to the mysterious announcement of Microsoft scheduled for the end of February, according to the web rumors that says that should be a bomb?"
I: "I'm sorry, I can't answer to this question , understand ...."
B: "Thank you for this interview."
I: "Thank you."

link: 2008/02/il-web-20-sul-desktop-con-adobe-air
2008/02/microsoft-apre-i-protocolli-di-windows
2008/02/microsoft-si-butta-nellopen-source
2008/02/microsoft-lancia-lopa-su-yahoo
2008/02/verso-il-duopolio-microsoft-yahoo-e-google
2007/09/lopen-document-alla-riscossa

Only two big players on the web?

The news that Microsoft want to buy Yahoo! isn't a surprise: everyone knew, everyone expected. The only question was: when?

The real surprise is the timeliness of Microsoft, which has chosen the best moment to come out.

On 30 January Yahoo! announced a loss in the fourth quarter 2007 and the cutting of 1000 employees (out of a total of 14,300). The title of Yahoo! is at least the last four years (-46% since October 2007). The day after Terry Semel, the CEO of Yahoo!, abandone.

The first February arrives the OPA, precise and punctual, like a vulture that get its prey after having flying over round waiting for the right time.

The strategy of Microsoft indicates that, also if the market is growing, there's no place for many players.

The news is arrived in a moment in wich Yahoo! doesn't have the resources to tackle alone a very competitive market dominated by a single player, namely Google, which is improving its position through acquisitions (DoubleClick, YouTube and many others).

This is the sign that che Microsoft has failed to make a stand to Google with its forces in terms of software and can react only with its economic power.

Microsoft until now had adopted a very conservative policy, defending its "milking cows" (Windows and Office): near these closed applications, based on desktop platforms and operating modes off-line, proposed integrated tools into web, in a PC-centric way.

Having understand that this was not the best strategy to become a competitive Internet company, Microsoft has chosen the path of the acquisition of companies that already have these characteristics.

But this will not be enough: only whether Microsoft will be able to acquire skills and attitudes by Yahoo! (the option without doubt most courageous), or it must adapt to the mentality of Microsoft (in which case the acquisition may not set the desired results).

Meanwhile in Mountain View are smiling: with a single blow the largest competitor is put out of the game (only if Microsoft fails to relaunch their products) and Microsoft that surrenders.

Until now Brin and Page haven't wrong a blow and with the purchase of YouTube have also assured the leadership of social network.

The United States Department of Justice has indicated that it will monitor the supply of Microsoft for possible antitrust implications; Microsoft already in recent years was split into two distinct sections (one for the software, one for Internet) to defend themselves from charges of dominant position, but remained subject to federal control to assess its commitment to reduce its strength in the market.

Lawyers of Microsoft said that the only company that can not buy Yahoo! is Google, which already owns 77% of the market.

If the OPA will be successful, a veri big player by 350 billion dollars will born: this assessment takes into account the 303 billion dollars in scores of Microsoft on the stock market and 45 billion dollars offered for Yahoo!, compared with 176 billion worth Google.

A nice "no comment" instead comes from both the European Commission and Google.