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Staying alive – retaining innovation in IT September 22, 2011

Posted by Mark Hillary in Internet, IT Services, Software.
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The history of information technology is littered with the names of companies that were once great and fell on hard times. Whatever happened to Imagine Software, Wang, Pr1me, Commodore, and many others?

Of course one of the greatest success stories in IT, and possibly in any business environment, is Microsoft. They grew from small roots, and a fortunate licensing deal to install their operating system on IBM PCs, and the rest is history. Now, almost all new PC-based computers come with Windows pre-installed.

But the world is changing. Microsoft has been talking publicly about their ideas for Windows 8 and it does not seem clear whether the world is listening any longer.

Almost 4m people in the UK use a tablet-based device and the dominant operating systems are from Apple and Google – with their Android system that is also becoming the key smart-phone operating system.

It would be wrong to suggest that Microsoft is finished because they don’t seem to be able to compete in the tablet and telephone market, but the entire computing market is changing. For years Microsoft has enjoyed the twin cash cows of Windows and their Office platform of office automation software – Word, Excel, and so on.

Windows is clearly becoming less relevant and valuable, but so too is the shrink-wrapped software market. Office automation tools are available free, in the cloud, from people like Google and at a low cost from other suppliers.

How do once dominant companies react to such changes in the market? If anyone can do it then Microsoft can. They have cash, intelligent people, and an attitude that focuses on innovation.

But do they have the will to entirely change the company? One only has to look at a company like Nokia to see that ignoring a changing technology market can bring industry giants to their knees. For the sake of the industry, let’s hope that Windows 8 really is as revolutionary as the Microsoft bosses suggest.
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