Definitive, Unsolicited Advice for Microsoft

There is a tiny problem. Microsoft needed this advice back in late June. For the company's employees, 2007 is half over, since the fiscal year is July 1 to June 30. For those Microsoft executives already planning for 2008, we say:

1. The mid-life identity crisis has got to end. Is Microsoft a platform, applications or services company? Only the first identity is truly partner friendly, while the last one offers some channel opportunities. If Microsoft wants to provide end-to-end solutions, it's long past time to say so.

2. Software services must move at Internet speed. Microsoft's software-as-a-service strategy is evolving at Windows Vista development pace. The plodding along is tied to Microsoft's identity problem. If Microsoft doesn't step up to Internet tempo, Google and other Web platform companies will shift computing relevance to the Web, unchallenged.

3. Security by PR no longer works (if it ever did). It's tough to hide zero-day vulnerabilities behind future security promises. Microsoft needs to hunt down hackers and cut off their botnet supply lines. Passive scanning isn't good enough.

4. Research is a valuable commodity. Microsoft's toe-in-the-water approach to intellectual property licensing should lead to a swim. IBM has made a big business out of IP licensing. Microsoft should do likewise.

5. Partners are not created equals. Some partners get it, others don't. Microsoft has long rewarded partners for loyalty, but the time is long past to reward results. A little more competition among partners could move forward the whole Microsoft ecosystem.

6. Designed by committee usually means fiasco. Microsoft collects lots of end-user feedback on products in development. As the saying goes, you can't please everybody. Microsoft should consider whether all that feedback makes for more mediocre rather than innovative products. Office 2007 is an example of a better approach. Windows Vista is a case of too many chefs in the kitchen.

7. Winners focus on the goal, not competitors. Microsoft can no longer afford to obsess over competitors like Apple or Google. Chasing their products and features makes Microsoft look like a follower rather than a leader. With two entrenched products, Office and Windows, Microsoft should worry more about satisfying customers and wooing them to upgrade.

8. Perception is elemental to success. Microsoft shouldn't be a dirty word and Google a beloved verb. Both companies' identities are tied to perceptions about what they are rather than what they really might be. Clever marketing appeals to emotions and generates positive feelings towards a company. By contrast, the Who's Who list of corporate partnerships or top three .NET Framework 3.0 features are Zzzzzz.

9. Changing behavior is a poor way to instill confidence. Missed shipped dates, abandoned or changed product strategies and periodic product name changes lead to legitimate questions about who's in charge. Reliability isn't just a feature of products; it's something customers look for in the technology provider. Microsoft must be consistent.

10. Aspiration sells products. Microsoft needs to scrap the feature lists and focus more on selling possibilities. Windows 95 marketing is a model to apply to other products. The IT manager may say his priority is TCO, but wouldn't he rather get home to his kid's soccer game a few nights a week? Good marketing should appeal to customers' aspirations.