Posted by: Jon Fine on July 30, 2008
Had an email exchange late last week with a former Microsoft executive familiar with the company’s media operations, and I asked said former exec’s opinion on the reorganization apparently spurred by the departure of Kevin Johnson, the head if Microsoft’s Platforms and Services unit.
Actually, “does not think too highly” understates it significantly. A lightly-edited version of said exec’s response follows:
Being that this is an un-reorging of last winter's re-org ... which was the re-org to end all re-orgs
It doesn't matter.
Microsoft cannot compete in the media business.
They don't get it.
They don't like it.
Microsoft cannot compete in the "consumer electronics space" unless everyone gets to do what Robbie Bach has done ---- build their end-to-end experience and their own model ---- far, far away from "Main Campus"
Micorsoft cannot compete as an online platform b/c they will not grok that technology is no longer "hard" at the widgette level.
MSN's hope as a business = Embrace Google AdSense + Become a massive Widgette Platform + Open the doors to all content creators + Fire 35% of their staff.
In an email, a Microsoft spokesman stated "Microsoft disagrees with the assertions."