Photo: Associated Press
At Microsoft’s annual shareholders meeting Steve Ballmer and Bill Gates explained why they will not break up Microsoft into a smaller companies, like Goldman Sachs recently suggested.Their reason: It doesn’t make any sense. Microsoft’s various parts are all related, even if it might seem that way from a distance. Splitting up now would only make things easier for rivals.
Via TechFlash, here’s part of Ballmer’s answer:
All of the people we compete with in devices will be in phone, PC and TV, which in our case means Xbox, windows and Windows Phones. It’s Apple, it’s Google, it’s us. Divesting something only means creating a harder time competing for all relevant parties . The operating systems that are popular on clients also tend to be popular on servers. They’re all based around Linux technology. We happen to build our server business on Windows technology. It creates dis-synergy in fact to split our server and enterprise business from our client business.