7 Reasons Why Microsoft is DOOMED

From Ask Rea Maor -

#1. Their business model is a dead-end. - Back when Microsoft first started business in 1980, software as a commodity was still a fuzzy concept. Now, in 2007, the concept of software as a commodity is rapidly wearing off again. Today, it’s all about the service and maintenance - something that Microsoft isn’t prepared to deal with.

#2. They flunk at Web 2.0. - Another shift in the technology market is the much-hyped web app. More and more programs can be downloaded from a server and run in a web browser, rendering the OS less important. Meanwhile, the biggest stake MS has ever had in the Internet user-space is its Internet Explorer.

#3. They’re running out of friends. - They’ve been brought up on multiple anti-trust charges. They have been the subject of 130 lawsuits, too. IBM, their former friend, now values Linux above them. And then there’s Sun, Apple, Google, and Oracle, who are flat-out competitors while favoring at least open source, if not Linux.

#4. They only have a couple of cash cows to work with. - Their two products that they stay afloat on is Windows and Office. All other products are also-rans. MSN, Zune, MS Surface, etc. And the XBox is selling well… at a loss.

#5. People are hating on Vista. - We didn’t even see this many people mad about Windows ME.

#6. Their stock isn’t rising any more. - This is not to say “this week”, but rather over the last seven years.

#7. PC makers are starting to turn their backs on Microsoft. - Sure, small-time markets have offered alternatives to Microsoft, but when a giant PC seller like Dell starts selling Ubuntu machines, that’s another big sign. HP has followed suit.

More details at the site.

Microsoft To Buy Facebook For $6 Billion?

From InsideMicrosoft -

Rumor is that Microsoft is looking to close a deal to buy Facebook for $6 billion dollars as Steve Ballmer is desperately trying to make a big splash play to counter Google in the internet game.

Facebook actually fits into Microsoft’s portfolio, since the latter doesn’t have a social network. What Microsoft does have is Windows Live Spaces, a blogging service and the two should complement each other.

Ballmer arguably should be willing to go as high as ten billion, since Facebook can make their Google competitor reality. If Facebook makes Windows Live work, they may see a billion dollars a quarter in revenue, more if they reach Yahoo levels. That six billion could be earned back real fast.