10 Microsoft Acquisitions and What They Mean Now
FrankPoole writes "CRN takes a look at the past five years of Microsoft's acquisition history, which totals $13 billion and more than 7,000 new employees, and highlights 10 deals and how they've affected the software giant. While some larger acquisitions stand out for better or worse, such as Danger and aQuantive, there are some smaller, blink-and-you'll-miss-it deals that have proved pivotal for Microsoft's push into new areas such as virtualization. And Microsoft's recent acquisition track record may lend credence to the heavy criticism levied against the company by former employees like Dick Brass."
Most of the companies on that list were intelligent purchasing decisions by Microsoft, even if all of them didn't pan out in the end. Most of them even have examples included of where their input has specifically improved Microsoft's products. I think that Dick Brass's article in the Times was fairly harsh, but if what he says is true and Microsoft no longer has the capability for innovation, then buying innovators with their still-impressive supply of cash and then successfully integrating their work into their products is a good substitute for coming up with those ideas themselves. It's certainly not ideal, but it can work as long as they still have the funds to do so.
If a company cannot innovate internally, then they have to acquire from outside.
Grow or die... but, it has allowed MS to improve their product offerings over time. Should be interesting to see what the future holds.
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> Microsoft has become a clumsy, uncompetitive innovator.
Microsoft has always been a clumsy, uncompetitive innovator (though I suppose dumpster-diving does require a certain amount of agility).
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Ah, Danger, the company that all the competent people abandoned, and ended messing up the storage/backup for all of T-Mobile Sidekick users' data?
How did that go anyway, I heard they managed to find a way to recover most of it?
What time is it/will be over there? Check with my iPhone app!
Though not acquired in the past 5 years, Visio is still the best "Microsoft" product. It is the only one I wish I had, as the open source alternatives don't have the bells and whistles that make Visio a great product.
If you have had to use it - you know exactly what I'm talking about. Its got all the interoperability of Microsoft products that you'd expect, with all the ease of use and understanding that each Office iteration lacks.
Is it me, or has the press turned really critical of Microsoft in past couple of months? It sort of feels like the barbarians are at the gate, waiting to taste Balmer's bitter flesh. Yesterday it came to a crescendo with Joe Wilcox publishing a devastating piece on how middle manager culture is destroying innovation at the company.
I can't really peg this on one single thing, but if I were to guess, it's probably because Apple and Google are mapping out the future while Microsoft is still hung up chasing ghosts of yesteryear with me-too products with little or no tangible value.
Or perhaps it's just confirmation bias on my part because I don't particularly care for the company or majority of their products.
because you usually hear it from the executives and others who are well taken care of...
But having living through an acquisition by Microsoft of the small company I was working at, I personally found Microsoft's internal culture to be toxic to much of what made our startup successful in the first place. As I saw it, for the typical 'guy in the trenches' your competition soon stops being the other companies competing in your market and becomes your co-workers. The success of your origination is disconnected from the success of its products in the marketplace, while your personal success soon depends almost entirely upon your skills at competing against your peers, as it is predetermined how many winners and losers there will be amongst you.
The reason why Microsoft is more of an acquire company than an innovation company is that the waters it swims in are different these days.
When MS started out, they had little money and the market was nearly empty. Very little competition. So the best move for MS to make was innovation. Come up with something new and market that. And hope to make it big, which they did. It was a gamble.
Now, MS is HUGE. And the market is full - loads of competition. They don't have to innovate anymore. They can assimilate small fish that do their innovation for them. They don't have to take the risks a small company would have to take anymore. A startup in this environment would have to gamble hugely to get big. There isn't much room. Patents and other competition means there are very small survival spaces in the ecosystem. That is what MS is hoping to acquire. The "oh wow I didn't think of that" part of the market. They don't have to think like a small "hope we can make it" company anymore. They're here to stay. Now given that, what is the best strategy? Stop anyone else from competing at their scale. Buy them out and make the marketplace ecosystem even smaller.
The environment has changed, so MS changed to adapt to the new environment. It's not surprising.
Weaselmancer
rediculous.
It's true that Gates may not have been a real leader of Microsoft since the 1980s, but like Jobs he was the charismatic symbol of his company. The media ate up his "The Road Ahead" stuff just like they fawn over Jobs' keynotes. Ballmer, despite his sometimes amusing antics, is basically a generic CEO of no real consequence or media appeal.
Internal competition is common at great companies. It can be wisely encouraged to force ideas to compete. The problem comes when the competition becomes uncontrolled and destructive. At Microsoft, it has created a dysfunctional corporate culture in which the big established groups are allowed to prey upon emerging teams, belittle their efforts, compete unfairly against them for resources, and over time hector them out of existence.
This sounds like the same thing they do to external competition.
Aah, change is good. -- Rafiki
Yeah, but it ain't easy. -- Simba
The claim that Apple II technique was proper subpixel antialiasing by design is debunked on Wikipedia.