The rumors of Microsoft's death are greatly exaggerated
The Web 2.0 bubble has reached the predictable stage of assuming that Microsoft will inevitably fail to adapt to this latest tech craze. You can get the feel for it by reading the comments on Scoble's post about this subject. Where have we seen this before? Oh yes, in December 1982 when VisiOn was announced at Fall Comdex and the press (this was before blogs existed) fell all over itself predicting that Microsoft would lose control of the operating system market to the new wave of integrating environments and integrated products. We saw it again in 1995 when Netscape's browser was going to wipe out Microsoft, because Gates just didn't understand the Internet. Now ten years later we are again hearing that Microsoft is a dinosaur and can't possibly catch up with the latest web services wave.
Let's get serious for a minute. Microsoft has control over 90% of the desktops on the planet. I haven't seen any stats that web based apps are being used by even a few percentage points of the real users out there. As keeps happening, especially in Silicon Valley, the bleeding edge sees everyone they know going crazy over a new set of technologies, and they extrapolate that onto the general public.
History has shown repeatedly that first-movers do not always win, and often disappear. VisiCorp died within a few years of announcing VisiOn, and Microsoft won that round with two products that they hadn't even started work on in 1982: Windows and Office. Netscape failed under the weight of their own arrogance, and IE is now the dominant browser. It isn't just Microsoft who has beat the early market leaders. When Google first appeared, Yahoo was firmly entrenched as the dominant search engine.
I'm far from a Microsoft fan. I've made plenty of jokes about Gates being the Antichrist. I just don't see how the race for a set of technologies that may be exciting (I'm excited by the potential of Web 2.0 too), but haven't produced any products that real people (not bloggers) are using in any sizeable numbers is already over.
Microsoft keeps winning these races for two reasons:
- They keep plugging away at an application area until they do eventually get it right. They have the cash and the fortitude to keep retooling until the market starts adopting their solution.
- Their competitors ALWAYS f*** up. This is the part where I may believe in the supernatural aspects of Gates' success. I've seen it too many times, Fylstra, Kapor, Andreesen. There is something about becoming a billionaire, or at least a hundred-millionaire, that warps people's minds and ability to innnovate. Gates has avoided this, but look at Page and Brin with their new 767 toy. The drumbeat for Google as the new evil empire can be clearly heard.


