Wharton has this to say about Microsoft and Google:
“The overarching question is whether Microsoft is too big to enter new markets and thwart fast-moving companies like Google.” … however … “Microsoft’s heft and penchant to attack new markets has left it with a diverse revenue stream compared to Google, which relies almost exclusively on advertising. Ultimately, diversification could be Microsoft?s biggest weapon in the future as it drives profit and revenue growth in areas such as the Xbox, databases, business process software, development systems and advertising.”
“And then there’s brain drain and Microsoft’s ability to develop a new generation of leaders. Don Huesman, senior director of information technology at Wharton, warns that Microsoft’s size could hamper the company as it tries to attract talent. A company Microsoft’s size can’t offer the freedom and equity that a smaller one like Google can. It will be very interesting to see what happens when the current management turns gray.?