The new Microsoft is far from perfect. But it has learned some lessons that other tech giants should heed
good to be back on top—and this time, almost liked. Twenty years ago Microsoft was considered an evil empire, scheming for domination and embroiled in a bruising antitrust battle with America’s Justice Department. Five years ago, having dozed through the rise of social media and smartphones, it was derided as a doddery has-been. Now, after several stellar quarters—this month it reported revenue of $33.
First, be prepared to look beyond the golden goose. Microsoft missed social networks and smartphones because of its obsession with Windows, the operating system that was its main moneyspinner. One of Mr Nadella’s most important acts after taking the helm was to deprioritise Windows. More important, he also bet big on the “cloud”—just as firms started getting comfortable with renting computing power.
Third, work with regulators rather than try to outwit or overwhelm them. From the start Microsoft designed Azure in such a way that it could accommodate local data-protection laws. Its president and chief legal officer, Brad Smith, has been the source of many policy proposals, such as a “Digital Geneva Convention” to protect people from cyber-attacks by nation-states.
True, missing the boat on social media means thorny matters such as content moderation pose greater difficulties for Facebook and Google. Still, others would do well to follow Microsoft’s lead. Apple has championed its customers’ privacy, but its treatment of competitors’ services in its app store may soon land it in antitrust trouble.
Even a reformed monopolist demands scrutiny. It should not be forgotten that Microsoft got where it is today in part through rapacity. Critics argue that in its battle with Slack, a corporate-messaging service which competes with a Microsoft product, it is up to some of its old tricks. A growing number of women at the firm are complaining about sexual harassment and discrimination. .
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