Microsoft's "Hell-Bent" Strategy

Microsoft may move more slowly than other companies, but you can count on them catching up very quickly.  Just ask the dozens of companies they have left in their wake.  Their modus operandi is to allow a sector to mature a little bit, see what competitors are doing, copy the current best of breed and add their spin on it.  The first versions of what they release may not do well, think IE 1.0 or todays Zune, but eventually they correct things and get them right.  This strategy does not always work, but wins more than one might think.

Enter Microsoft's CEO Steve Ballmer who announced at their Financial Analysts Day that Microsoft is "hell-bent and determined to allocate the talent, the resources, the money, the innovation to absolutely become a powerhouse in the ad business."  You can translate that as we are being killed by Google's online service and ad strategy and its time for us to jump in before it's too late.  Kevin Rose of Digg has just announced on their blog that they will be partnering with Microsoft to serve up ads on Digg (Digg Partners With Microsoft).  In addition, Microsoft is playing catch-up in other areas as well, releasing their competitor to Flash Video, Silverlight.

Hell