Microsoft Corporation (MSFT): Its Leadership Is Still Failing

Then again, this is Microsoft’s management we’re talking about here. Ballmer would not dare do something so drastic or game changing. Instead, the company prefers to focus on personal computers, which Microsoft still relies upon for 80% of its business. This is despite the fact that PCs are dying a slow death.

Meanwhile, the cloud market is projected to grow by $177 billion over the next two years. Here, too, Microsoft has appeared too slow to respond to the likes of Oracle Corporation (NASDAQ:ORCL) and salesforce.com, inc. (NYSE:CRM). Instead, Ballmer has been trying to fight Apple in tablets and phones – it’s not working. Interestingly, this is despite the fact that Apple’s Tim Cook just said the company was actually not a hardware company, and emphasized software and services.

Microsoft needs to wake up. Granted, it’s true that the company has made some progress in smartphones and mobile devices. But so has Research in Motion Ltd (NASDAQ:BBRY) and Nokia Corporation (ADR) (NYSE:NOK). And anyone who believes that either of these companies can put a dent in Apple’s lead is fooling themselves. Microsoft needs to go in a different direction.

Smart companies, like Oracle, which has recently picked off Acme Packet, Inc. (NASDAQ:APKT) aren’t afraid of taking risks and diversifying their assets. While Microsoft is able to boast solid cash flow, it does not have a reputation for effectively deploying its capital – at least not to the extent that it’s able to produce the growth that Wall Street craves.

As much as I’ve valued Microsoft’s influence on tech, I’m beginning to feel that I would love the company more if it were under new management, one that can change directions.

The article Microsoft’s Leadership Is Still Failing originally appeared on Fool.com.

Fool contributor Richard Saintvilus owns shares of Apple. The Motley Fool recommends Acme Packet, Apple, Cisco Systems, F5 Networks, and Salesforce.com. The Motley Fool owns shares of Apple, F5 Networks, Microsoft, and Oracle.

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