When looking at Microsoft's challenges for 2008, six of them rise immediately to the surface, but a few others are bubbling just underneath it. The top challenge is the exodus of Bill Gates (and the fact that Steve Ballmer's retirement clock may also be ticking). The flavor of the company seems to have changed since former Sam's Club CEO Kevin Turner joined in 2005. Prior to that, Microsoft was techie company first and a tough competitor second. These days it seems that its priorities have reversed. Competing for market share is far more the focus than being a member of a greater, IT-centric world.

That said, Microsoft Research is working on all kinds of cool initiatives and no doubt Microsoft will figure out how to productize them. But its ultimate future will depend on stopping with the me-too attitude -- spending millions chasing every market out there where someone else (like Apple) is making money. Other challenges include getting Vista into high gear with the enterprise market; launching a services market without alienating its channel partners; deliver on its high-stakes(high costs) advertising bets; and finding a way to beef-up its overall image for quality. Microsoft is no longer "cool" -- not in PCs or consumer gadgets – and its software has a reputation for being bloated and buggy. Read the full crystal ball projection on Microsoft.

More Microsoft Subnet blog posts
The 9 worst Microsoft products, ever
Microsoft is becoming another Cisco
Microsoft SharePoint spreads 'virally'
Win free trainng and free books
Microsoft files 52 lawsuits against resellers over counterfeits

All Micronet blog posts
Visit Microsoft Subnet for more news, blogs, opinion from around the Web.

Sign up for the bi-weekly Microsoft newsletter. (Click on News/Microsoft News Alert.)

Click to read the article this is in response to.