A discussion about the software industry and their coders

This post continues from my previous post The Legacy of Bill Gates where I discussed 2 of the 4 challenges Microsoft Corp (MSFT) is facing at the time of announcement of Bill Gates's plan to slowly step down from full time employment.

Tanking of the Microsoft Stock Price

From an article in Businessweek's by Arik Hasseldahl its clear that the plateauing of Microsoft's stock price is an indication of its inability to adapt to becoming a nimble, non-monopolistic, collaborative player in the Internet era.

Having grown at a predictable clip through the 1980s and 1990s, it (MSFT stock)closed out 1999 at a split-adjusted $50.77. It's been all downhill or flat since then, trading in a range between $22 and $38. Sales growth has been steady, from $28.3 billion in 2002 to $39.8 billion in 2005. But profits have been uneven, ranging from $7.8 billion in 2002 to $12.2 billion in 2005. It finished trading on June 15 at $22.07, but shed 12 cents in after-hours trading after news of Gates' plans to step back emerged.

The numbers tell the tale of a once vibrant and fast-growing company, struggling in mature success to come to terms with a quickening pace of technological change better met by more nimble rivals

Response to Open Source Software and Linux

Initially, Microsoft tried to laugh away the viability of Linux and Open Source Software. It was a pathetic attempt to look down upon anything that wasn't built in Redmond and would fill the banks of Microsoft Corp's shareholders. Even if Linux sales won't make big sales numbers -- Linux sales have continued to grow at a CAGR of 28% against Industry's 17%.

Microsoft's response was immature at best.

Based on the challenges that Microsoft Faces -- all of which brewed up during Bill Gates's leadership -- its tempting to state that though Gates was instrumental in building Microsoft to its current stature as the worlds largest software firm, he also failed to help Microsoft respond to the changes in technology and culture of the last 10 years (the Internet era).

Continued: The Good Part of Bill Gates's Leadership