May 10, 2007

Microsoft Wants to Build, Not Buy, Software

Microsoft's success in the IT industry is no secret. The company tends to make a big success out of most businesses it decides to try out. When the software giant does fall behind the competition however, it turns to a vast sum of money and either acquires or simply demolishes the competition out of noticeable existence.

In a meeting held by Microsoft's business division president Jeff Raikes this week, Microsoft announced that it will now take a different approach when it comes to business software: build, not buy. What Microsoft will bank on is creating new software based on current an in-house developed portfolio of software that includes SQL Server and Office.

For the past several years, Microsoft purchased many small companies, absorbing their assets and intellectual property. The fruits of its acquisitions usually end well, and the company has demonstrated its tactics since the very early days of DOS -- which was written by an individual software developer and then bought by Microsoft during its startup years.

"I've never been opposed to the idea of looking at players in the industry. We've looked, to be quite honest. We just thought organic development would get us to the real solution faster," said Raikes.

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