Microsoft earns more than half its annual revenue—and the vast majority of its profits—on just two products: the Windows operating-system and Office, a collection of personal-computer (PC) applications including word-processing and spreadsheet programs. Both, however, are coming under threat from new technologies.
Experts see the threat coming from the way these products offered to customers rather than what these products have to offer. Suddenly, Microsoft’s business model is being perceived as traditional.
Ray Ozzie the man behind Lotus Notes and Groove is now at the helm of affairs as the Chief of innovation at Microsoft. Can he reinvent the software giant’s model?
Economist takes a closer look at Microsoft and its world under a looming threat from online software.