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                          1. Broken Windows Theory

                            12.Mar.08, 16:46 EDT
                            When Microsoft made a bid to buy Yahoo!, I said that the company was acting out of weakness rather than strength. First, Microsoft lags Google in Internet technology. Second, "cloud computing" applications could eventually replace some of the operating systems and software that Microsoft sells. Third, Microsoft's products simply aren't that strong.

                            Complaining about Microsoft products has always been geeks' idea of a sport – the only one we don't get picked last for. Personally, I've always used a Mac since it's simpler. I can use a PC, but no one has ever explained to me exactly why it has to be so complicated in the first place. My toaster is reliable and easy to use, and I expect no less from my computer. Given its complexity and computing power requirements, using Microsoft Windows is like making toast in an oven – you can do it, but there's got to be an easier way.

                            Now that Microsoft faces more competition – from "cloud computing" Google applications, open-source alternatives and a resurgent Apple – it should be putting out the best products possible. But its long-awaited Vista operating system suffers the same problem as many of the company's products: It hogs too much computing power to work well on some machines. Last year, some Vista buyers formed a class action suit charging that machines marked "Windows Vista Capable" can't really run Vista Premium, which offers the system's most substantive advantages. For example, that fancy graphical interface that looks so great in ads won't render smoothly on "Windows Vista Capable" machines. Oops.

                            The only way Microsoft could look any worse would be if they knew about these problems in advance, which – double oops! – they did. As outlined in a recent New York Times article, the lawsuit uncovered some internal Microsoft documents that imply that some company executives had voiced doubts about its decision to overpromise and underdeliver. The idea that Microsoft isn't exactly honest isn't exactly be news. But it's shocking that the company still acts like a monopoly – Buy it: You have to – when it's rapidly becoming the underdog.

                            Unlike the real world, where "Broken Window Theory" predicts problems, the digital world has few barriers that prevent people from moving elsewhere, and Google's products are only a few mouse clicks away. Microsoft used to talk about other companies and say it would eat their lunch. But as Microsoft expands — into gaming, music and Internet advertising — executives there need to keep a better eye on their basic business. Otherwise Google will drink their milkshake.
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