How Microsoft can regain tech leadership - Step 2

Build a Huge Mobile Apps Business

In step one, I counseled Microsoft to get out to the Phone and tablet business. The operating system and device segment must be exited because there is no reasonable way Microsoft can win. But you can’t regain tech leadership by exiting businesses, only by building them. Thus Step 2 is:  Be the leader in Mobile Apps on iOS and Android. Start by taking the world’s alltime best selling application, Microsoft Office and make a great mobile version for iOS and Android. Make a tablet version and phone version. And do it fast. Don’t let all these half baked Office translator products eat into your space. Microsoft Office must be dominate on mobile, just like it is on the desktop. And don’t limit the functionality. Since you will no longer be in the Windows Phone operating system business, you don’t need to neuter Office functionality so that Office on Windows Phone is better. You can just make a  great mobile first app and people will pay for it. By the way, you need to nail the collaborative editing ting that Google Docs does so well. You need to stop Google Docs and this is the one killer feature that they have that you don't. After Office, you need to up your game with the Outlook App. Its OK now, but it can be alot better. Don’t let all these calendar and email apps eat into Outlook. You should win that category too. And How about Sharepoint for Mobile. Get that moving. Don’t loose this space to someone like Box.com.  And take Skype and Lync and make them world class mobile first apps. Don’t let Facetime or Google Hangouts win here.

Some more advice. I think Skydrive has to go. No one likes it. Its a distant 4th in the marketplace. I think acquisition makes the most sense here. Are you really going to wait around until Google makes Google Drive good and eat your lunch here? The market leader in file sharing is DropBox. Don’t let them slip through your fingers. It can beat iCloud and Google Drive, especially when you pair it with a great version of Office for mobile. It will cost you a pretty penny, but you have money. Spend it.

Once you have done all that, you can surround the “mobile office platform” with more mobile apps that you can acquire or build. Microsoft should own the whole Mobile productivity app suite on both iOS and Android. Its a big business that will grow as smartphones reach 80%+ penetration and tablets keep selling by the boatload.

Becoming a mobile apps company is not easy. You will need different skill sets and people, but Microsoft has  track record of building great apps for a 15 inch desktop screen, you just need to build great ones for the 4”, 7” and 10” touch world that will dominate for years to come.

So, lets recap:

Step 1: Get out of the Smartphone and Tablet business

Step 2: Build a big Mobile Apps Business

Step 3 will be available tomorrow.