How Microsoft can still win the web war

In a nutshell:

  • Improve hotmail. Regardless of what it costs get Jason Fried on the job.
  • Buy promising web apps, especially if they are leaders in their space. Youtube and Myspace have justified their lofty valuations. Don’t lose out on any more market leaders.
  • Start Fresh. Create a new online division. Create 10 teams with a start up mentality. Get them cranking on web apps that excite them

More detail:

Savvy web users are using Gmail over hotmail. Hotmail needs a makeover. Get Jason Fried of 37signals on the job. He has mastered interface elegance and simplicity.

Jason’s first goal is to develop a new clean look and feel for hotmail. Hotmail appears old and dated. If you don’t own a web app you’ll be amazed know how many people sign up using Gmail address’s.

The new hotmail will become the hub for all of Microsoft’s new web apps. All of Microsoft’s apps should be listed on hotmail and users should be able to login with 1 click.

youtube reddit feedburner stumbleupon delicious

For under 2.5 billion Microsoft could have owned all of the following:

That’s quite the portfolio. All for under 2.5 billion and considerably less than the 44 billion bid for Yahoo.
As a bonus you lose the bloat and redundancy that comes with a purchase of Yahoo.

While they missed the boat on these app/services they should make sure they snap up the inevitable new ones that pop up.

And how about creating some web apps on their own? Microsoft has the resources but it looks like they have lost their way.
They need to rekindle their long gone mean lean spirit. Create some autonomous teams and let them have at it.

When you have money life is easier. Its no different for companies. Microsoft has the money.

They just need a plan.
In addition, they need to execute their plan without the burden of mass that comes with a company their size.


REVERSAL: why this won’t work

Most web apps don’t make any money. There’s no point buying these apps unless they make money or unless Microsoft can turn them into loss leaders.
If Microsoft doesn’t improve its search and contextual advertising they wont be able to efficiently monetize their web apps.

Posted by strong Filed in Uncategorized

Leave a Reply