The Continued Softening Of Microsoft

Microsoft should not be acting old and grey.

Yet they are throwing away another $26.2 billion dollars in purchasing the relative revenue and profit weakling, LinkedIn, the professional networking social media site (where odds are you have your high-level resume-type information).

Have you ever paid a dime to LinkedIn or have you ever paid attention to  single advertisement on LinkedIn (I can’t even remember if there is advertising on there—see I pay it zero attention!)?

Unfortunately Microsoft is following suite with it’s worthless purchase of Nokia in September 2013 for $9.4 billion that was all written off and then some with yet another ridiculous, desperate move.

Microsoft has been living off their legacy product suites of Windows, Office, Outlook, and SharePoint for years…and apparently, aside from the regular forced upgrades, they seem to have virtually nothing in the innovation hopper.

Hence, loser acquisitions of things like Yammer in 2012 for $1.2 billion (anyone use that BS Facebook-like service for inside their organization—work is not social playtime folks!).

Anyway, I like Microsoft products–they are functional, which is what I want from email, creating and editing documents, spreadsheets and slides, as well as sharing files–it’s great for bread and butter tasks–nothing sexy.

But every attempt that Microsoft makes in desperation to expand beyond their core competencies comes up soft and a big money loser.

Innovation and success is not bred by acquiring virtually worthless properties in terms of high-technology with no synergy to who they fundamentally are.

It is almost heartbreaking to see a once great company like Microsoft continue to drown in its own excess cash and strategically hollow ideas.

Microsoft will only be successful by thinking beyond the boxed in windowed organization that they have imprisoned themselves in.

I hope they can break a few windows and escape to some new technological thinking again soon–but the big question is whether they currently have the talent to make it so. 😉

(Source Photo: Andy Blumenthal)

Nokia and Microsoft, Desperate Bedfellows

A couple of hours ago, Nokia’s debt was downgraded by Moody’s to Junk!

Nokia was once the world largest vendor for mobile phones with almost 130,000 employees, but since the iPhone and Android, they have since fallen on hard times–who would’ve thought?

Just 16 months ago, in February 2011, Nokia announced a strategic partnership with Microsoft to try and stem their losses by adopting Windows Mobile, but this was like a drowning victim grabbing on to whoever is nearby to try and save themselves but only ends up in a double drowning.

No, Microsoft is not drowning exactly, but their stock has been more or less flat from a decade ago and one of the worst large-tech stock performers for the last ten years!

Will the acquisition of Yammer for $1.2 billion this week change this trend–I doubt it.

Between Yammer for social networking and the acquisition of Skype for video-calling last year (May 2011) for yet another $8.5 billion, Microsoft is trying to fill some of it’s big holes in its technology portfolio, just like Nokia was trying to fill it’s gaping hole in mobile operating systems by partnering with Microsoft.

Unfortunately both Microsoft and Nokia have essentially missed the boat on the mobile revolution and the sentiment is flat to negative on their long-term prospects.

So the shidduch (match) of Nokia and Microsoft seems like just another case of misery loves company.

Desperation makes for lonely bedfellows, and thus the announcement this week by Nokia that they are going to layoff 10,000 and close 3 plants by end of 2013 was really no surprise.

Aside from the short-term stock pop from the news of the acquisition, what do you think is going to be in the cards for Microsoft if they don’t get their own innovative juices back in flow?

Can you just acquire innovation or at some point do you need to be that innovative company yourself once again?

Rhetorical question.

Hopefully for Microsoft they can get their mojo back on–meaning rediscover their own innovative talents from within and not just try to acquire from without.

(Source Photo: here with attribution to Kidmissile)