ZDnet has a nice article called “Microsoft may need an IBM moment of clarity”. The bit about IBM (below) is short and sweet but it sure feels like IBM’s moves the past couple years have been precient as a whole (though the bit about profitability is mostly due to overseas sales and a weak dollar).

Remember IBM? Big Blue used to do everything too, but then it suddenly got it. IBM unloaded its PC business to Lenovo and started focusing on the two things that were insanely profitable: Software and services. Oh yeah, the hardware is still there too, but IBM is all about enterprise and helping business get stuff done.

IBM’s public persona may have taken a hit with the average consumer–it’s not like Tivoli, Rational and IT services are discussed at picnics–but there’s no question it made the right move. IBM is more profitable than ever. And it’s focused.

I found this comment interesting:

Yes, IBM retained those parts of its business in which it was possible to obtain a huge markup and not worry as much about performance compared to alternatives.

Microsoft already has part of that approach, as witness the markup on software. But so far the company seems to be insisting on providing a worthwhile product for the money, even if it has to be compared to alternatives.

You might consider that a mistake, I suppose.

And then there’s Microsoft’s decision to maintain a large US presence, doing most of its main development within the continental limits. IBM has a much more ruthless idea, moving as much of its administrative structure as possible to China.

So, yes, Microsoft is only part of the way to IBM’s entirely exploitive and ruthless approach. Their progress is promising, I agree, but so far as far as products are concerned, there’s still too much there there.