I think Microsoft today is a lot like IBM was in 1985. When I started my career IBM dominated the tech world. In the late ’80s Microsoft started to dominate the software world, first with desktop software and later with server software like Windows Server and SQL Server.
Microsoft is still a powerful company – $60 billion in revenue and very profitable – but I think after 20 years they are losing the innovation edge. The most innovative companies today are Google, Apple and Facebook. Very few companies can dominate an industry for more than 20 years. It is just the natural competitive cycle. Another factor – Bill Gates leaving the company. The transition was smooth, but not having Bill there every day has far-reaching implications.
via The Microsoft Blog in an interview with Don Dodge