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How Microsoft Can Stay Relevant: 10 Ways
By Don Reisinger on 2010-10-28



Microsoft finds itself in a precarious position. The software giant is no longer as popular and successful as it once was. And it’s being hit from all sides by several competitors, including Google, Apple, and others that are trying to supplant it as the most dominant force in the industry. Of course, achieving that goal will be difficult, given how entrenched Microsoft is. But it’s something that those firms want to accomplish nonetheless. Realizing that, Microsoft needs to get to work. It can’t simply stay in the same place and hope that it will maintain its lead over the competition. It needs to identify key areas where it must stay relevant, and do everything it can in those spaces to achieve its goal. That won’t be easy. And Microsoft will undoubtedly face adversity. But it’s a task that it must accomplish.
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1. Windows, Windows, Windows

Windows is integral to the success of Microsoft going forward. If it can’t continue to deliver an experience with Windows that consumers and especially enterprise customers want, it will fail miserably. That’s something that Microsoft must keep in mind. And ensuring that Windows stays relevant should be central to the company’s strategy both today and in the future.

2. Internet Explorer

Internet Explorer is another product that Microsoft relies upon. Without it, the company won’t be able to coax users to its Bing search engine. It also won’t be able to generate any advertising revenue from the service. The future of Microsoft’s operation must include at least some aspects of advertising revenue. And Internet Explorer will be integral in delivering that.

3. The Entertainment Space

The entertainment space continues to be an area that Microsoft cannot ignore. It might not be as important to its operation as the cloud or Windows, but Apple and Google are moving quickly towards making all of their products feature an element of entertainment. Microsoft is doing the same with Windows Phone 7, but it must do more. It has no other option.

4. The Cloud

The cloud is extremely important to the future of Microsoft’s operation. Most believe that the Internet is where the future is. And the company that currently commands that space —Google —has its sights set on Microsoft. Because of that, Microsoft must do all that it can to maintain relevance in the cloud —or else allow Google to dominate that key battleground going forward.

5. Productivity

Microsoft’s success in the enterprise has been mainly due to its ability to deliver more productivity than options from other companies. That’s the case with Windows over Mac OS X, Office over Google Docs, and Azure over all of its competition. Microsoft seems poised to continue staying relevant in the productivity market. But it can’t be complacent.

6. Computing

Microsoft announced recently that Windows 7 is now the fastest-selling operating system in its history, easily besting all versions of the OS that came before it. That success has translated into Microsoft increasing its dominance in the computing market, and in the process, solidifying its profits. That’s a good thing for the search giant. And it’s something that it must maintain if it wants to continue being successful.

7. The Enterprise

It might be broad, but staying relevant in the enterprise is central to the future success or failure of Microsoft. Currently, the corporate world dictates Microsoft’s success. If the enterprise likes what it sees and adopts the search giant’s products in droves, Microsoft wins. If the enterprise ditches Microsoft’s options, the company loses. Without the corporate world, Microsoft is nothing. And it must remember that.

8. The Search Market

The search space is somewhat difficult for Microsoft to break into. Google is extremely successful in that market, and the company continues to take market share from competitors. But Microsoft cannot allow that to hold it back. The search space is integral to the future success of Microsoft’s advertising operation. If its search becomes irrelevant, so too will the software company’s advertising.

9. Mobile

Microsoft is getting extremely close to becoming irrelevant in the mobile market. The company stuck with Windows Mobile for far too long, and in the process, it allowed Apple and Google to rule that space. It’s hoping to be more successful with Windows Phone 7, but whether or not it will remains to be seen. Either way, Microsoft must continue to push its strategy in the mobile market until it can finally achieve a level of relevance again that makes it profitable.

10. Office Productivity

With the announcement of Office 365, Microsoft is on to something in the office-productivity space. It realizes that the cloud is the future, but for most companies, having desktop-based Office functionality is still necessary. So, it’s delivering the best of both worlds. And as long as it can maintain its lead in office productivity, the company will be well-positioned to maintain its position of dominance in the industry.

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