Microsoft the Beast Is Back

Microsoft: The Beast Is Back Fortune Magazine: http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=202708 Why is work fun again for Bill Gates? Work has become less stressful for Bill Gates. Once CEO of the almighty Microsoft, now Mr. Gates has since passed that post to friend Steve Ballmer. Bill Gates, for almost two years has been serving as chief software architect, a post in which he created and also has a seat on the board.

Certainly, the anti-trust cases and the unwavering pursuit of those trying to find the Achilles heel of Microsoft had taken a toll on Mr. Gates. Lackluster stock performance and the loss of experienced and knowledgeable employees to hot start-ups proved extremely frustrating for the former Chief Executive Officer. The Harvard dropout, whose superior technical skills helped spearhead him to fame and fortune in the blink of an eye, lost the youthfulness and zest for software development when the dirty aspects of the business surfaced.

Having washed his hand of the dirty side of the business, Bill Gates has returned to where he found the most enjoyment, software development. B. The clouds over Microsoft in 1999 and early 2000 have begun to dissipate. What are the clouds? Microsoft disappointed investors due to less than expected returns in the late 90's. Despite the fact that the NASDAQ was experiencing extremely high returns, Microsoft's stock seemed unresponsive to the boom occurring in the sector.

The emergence of Oracle, Sun, CISCO and EMC as stocks with stellar returns left investors saying "Microsoft who?" Furthermore, the company also suffered from a "brain-drain" due to employees seeking out the "hot" new start-ups. To add insult to injury, Microsoft was ordered to breakup due to monopolistic business practices. However, 2002 marked a new beginning for the sleeping giant, the stock so far has recorded a 62% increase this year, while stocks of CISCO and similar high-tech companies are down an average of 34%.

Additionally, it is expected that the court of appeals will reject the order to disband Microsoft. C. What is the paradigm shift taking place in Microsoft? Give examples of its past practices and products with what it is doing now and in the future. The top guns at Microsoft are claiming that the company is reinventing itself and will pioneer the post-Internet era. Previously, Microsoft simply reinvented the wheel. That is, they would analyze leading products of competitors, make improvements and market it as their own.

Those days almost over, a new paradigm has replaced these practices. Microsoft is focusing on creativity and innovation. At one point, Microsoft's vision was to have a computer in every home and on every desk. This mission has been accomplished and now the company is shifting its focus to "empower people through great software -- any time, any place, and on any device." Seeking to move beyond the World Wide Web and provide Internet services for cellular phones, PDA's and beyond.

The idea is that everyone can be "connected" anytime, anywhere. One notable development is HailStorm. This service, has debuted its first program called Passport, which makes the Internet experience quicker and easier for those web surfers who are tired of entering the same information over and over again.

According the article "passport, provides an online repository for all sorts of personal information and privileges that you can tap into from any computer with a Web browser: contacts, credit card accounts, calendar, computer appearance preferences, file space for documents, clearance to use online versions of productivity applications, an electronic ID card, and more." Additionally, Microsoft will now be shifting its efforts to focus on a huge but underserved market -- small business.

Microsoft seeks to dominate the software industry for small business as no formidable applications exist and no one clear leader in this market has yet to emerge. bCentral is Microsoft's e-commerce hosting package for small business. For a mere, 25 bucks per month users receive "Website and provide e-mail services, as well as a shopping-cart setup for e-commerce transactions, credit card clearing, and customer management," explained Kathleen Herbert, vice president in charge. D. Three heads or CEOs are better than one.

What are the roles of these three senior executives, and why does it make the company stronger as a result? The roles of the tree top executives, Bill Gates, Steve Ballmer and Richard Belluzzo may differ but are extremely co-dependent. Bill Gates, has resigned himself to the role of software architecture which is the role that creates the "magic," Gates is responsible to keep the creative juices and innovations flowing. Steve Ballmer, CEO keeps the ship afloat.