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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."

13 of 145 comments (clear)

  1. Smart buys by N3tRunner · · Score: 5, Insightful

    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.

    1. Re:Smart buys by alen · · Score: 4, Insightful

      and how is this different from Apple and Google which are current tech rag favorites? both are on a buying spree. Almost every new Google service in the last few years has been based on a company they bought. just like Apple's multi-touch was as a result of a tiny startup they bought a few years ago

    2. Re:Smart buys by Anonymous Coward · · Score: 5, Insightful

      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.

      I think you missed a key point of Dick Brass's article. Even with innovative technologies at Microsoft (whether homegrown or acquired), there are too many internal power struggles going on for those innovations to ever really shine through or live up to their full potential. It's really a symptom of the corporate culture that's been allowed to fester for far too long there.

    3. Re:Smart buys by Angst+Badger · · Score: 4, Insightful

      Vista failed to deliver innovation in operating systems, Windows 7 is just Microsoft playing catchup with Apple [...]

      People say this a lot, but is there really that much innovation to be done in the operating system space, at least for end users? (The server space is, of course, quite different.) Personally, I'd be a lot happier if Microsoft stopped "innovating" with Windows, unless the innovation in question is to get the hell out of my face and operate smoothly so I can focus on my applications, which are why I have a computer in the first place. It's 2010, for crying out loud. The personal computer OS is a mature product category, and would be better served -- especially in Microsoft's case -- by fixing its plethora of bugs and security holes and misfeatures and just supporting new hardware as it comes along. While they're at it, maybe they could focus on optimizing its memory and CPU usage so that there's more left over for -- again -- the applications its supposed to support.

      Being as we are, as a group, actually interested in the inner workings of operating systems, it's sometimes hard to remember that operating systems are mainly visible to users to the extent that they don't work as well as they should. A good operating system is unnoticeable for users and highly tractable for developers. Microsoft is failing miserably (and, for misguided marketing purposes, deliberately) at both.

      --
      Proud member of the Weirdo-American community.
    4. Re:Smart buys by Bert64 · · Score: 5, Insightful

      They didn't say playing catchup in marketshare, they mean catchup in features, stability performance and appearance etc..

      People don't buy windows because they've assessed multiple competing options (including osx and linux) and found windows to be technically superior or better value for money, they buy it because they don't realise anything else exists, because they're afraid to learn something new or because theyre forced to by having their data held to ransom by proprietary applications and their formats.

      --
      http://spamdecoy.net - free throwaway anonymous email - avoid spam!
    5. Re:Smart buys by Taagehornet · · Score: 5, Funny

      Innovation at Microsoft ended long, long ago.

      LINQ

      The list goes on; if you're into language design then Microsoft is definitely the place to be right now. They've managed to gather some absolutely brilliant people.

    6. Re:Smart buys by Ngarrang · · Score: 4, Insightful

      People don't buy windows because they've assessed multiple competing options ...

      Depending on the user, the thought of the OS was probably secondary to the intended task: Run a web browser. Think about the typical user. And by typical, I mean grandma, mom, brother, dad, friend down the way that aren't tech geeks like the readers here. They just use a computer to get things done, like driving a car to get to work. They just use it, it is just a tool. This kind of user could care the hell less about the OS wars. They mock people like you and me for even caring about something "so trivial, because they all look the same anyways." (that is a direct quote, and it bugged me) And for many, many people, using a computer means running a web browser to get to FaceBook, MySpace, AOL, Gmail, etc, etc. The OS underneath doesn't matter for many of these people. Oh, sure, some of them want to type up documents, maybe write up a quick spreadsheet to help calculate some costs, but even then, the apps look the same on all platforms.

      The difference comes in the money used to purchase the product. If dad only wants to spend $400 on "something that will let me read e-mail", it is probably going to be a PC with a copies of Windows already included. So, no, there is no comparison shopping be done. There is no point for them.

      Think about the last time you bought a broom. Did you feature compare several models? Hate it or not, but the computer is on the level of a broom to most users. This fact bothers me...a lot. But I have had to come to terms with it.

      --
      Bearded Dragon
  2. "Become"? by John+Hasler · · Score: 4, Insightful

    > 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).

    --
    Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  3. Danger, Danger! by netsharc · · Score: 4, Informative

    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!
  4. Flurry of negative Microsoft stories by Renderer+of+Evil · · Score: 5, Interesting

    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.

  5. It's not talked about much by Anonymous Coward · · Score: 5, Interesting

    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.

    1. Re:It's not talked about much by gujo-odori · · Score: 4, Interesting

      Yeah, what he said.

      I also worked at a smallish company that was acquired by Microsoft (funny it wasn't on the list in TFA, it fits the time span of five years, and some of the companies mentioned in TFA were acquired fist). My description of MSFT's internal culture would be "pathological," but I guess "toxic" works, too.

      How pathological? *Every one* was required to go through a full series of Microsoft interviews in order to keep our jobs. Submit your resume, the whole nine yards. Of course, most of my interviewers quite obviously hadn't even bothered to read my resume, leading to some pretty "interesting" questions and some answers along the lines of "I don't know; I don't do that."

      One of them actually admitted point-blank that he hadn't read my resume and said he was too busy to bother with that. Classy, that. I bet he fits in pretty well at MSFT, though. A couple of others also pretty obviously hadn't but didn't 'fess up. So mostly, my "interviews" consisted of explaining to people who hadn't a clue what I did or what my team did what it was we did, since they seemed to have not read our job descriptions either.

      I met a former Danger employee not long ago. Some interesting stories there, too.

  6. Re:Simple adaptation by gtall · · Score: 4, Interesting

    Innovation in any large company is hard regardless of the market. I don't recall MS innovating much of anything...ever, but then I'm a Mac person.

    Someone above wrote about what it was like to be in a small company taken over by MS. If the corporate culture is to promote a competition amongst the employees instead of competition geared toward competitors, then MS is probably what results. If you have a good idea, your co-workers will screw you because if it succeeds, they do not. That leaves the competition aspect of MS in the hands of Business School Product who understand nothing technical and but who really get "screwing a competitor" as a measure of success. Good ideas rise to the top at MS in spite of their current culture as opposed to because of their current culture.

    Many other companies are in the same boat. HP used to be an innovator before they became PC/printer box makers. They screwed their engineering culture and now attempts to get it back are drowned by the Business School Product running the company. IBM appears somewhat similar although they do seem to have some hardware innovation kept alive, probably an oversight that will get killed off eventually.

    It's a bit hard to tell where Apple's innovation comes from since the company is so secretive. Presumably, they have not neutered their engineering and some ideas are bubbling up from them.