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Competition for Microsoft heats up

Microsoft Corp. promises its software will make people better workers — more productive, more profitable, more able, as the company likes to say, to achieve their potential.

Yet some wonder why the software behemoth isn’t taking more of its own medicine.

As Microsoft hits 30, critics reel off a list of complaints that sounds like, well, a Microsoft commercial: stifling bureaucracy, frustrating miscommunication, different units working on overlapping technology without adequate cooperation. In short, the very ills Microsoft promises to cure with its software.

Growing pains have delayed products, leaving the door open for Microsoft to be beaten to market by younger, more nimble competitors led by Google Inc. and Yahoo Inc. Meanwhile, Microsoft shares have been trading at about the same level for several years.

As it gears up to release a slew of new products, Microsoft is trying to untangle bureaucratic snags with a corporate shakeup meant to get the best ideas to market faster and increase the company’s push toward over-the-Internet software and services.

Of course, no one would argue that the company co-founded by Bill Gates is in dire straits. Microsoft continues to earn billions from its flagship Windows and Office products, and the company is steadily making inroads in markets including mobile phones, video game consoles and server software.

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5:08 am October 11th, 2005



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