Microsoft - Where Is the Love, and the Innovation?

In 2007, Microsoft's capacity to deliver innovation was seriously called into question. This of course happened in the European arena, where the Redmond Company has a long lasting face off with the EU Antitrust Commission. At the end of February 2007, the European Commission has published a Statement of Objections associated with the royalties Microsoft unveiled for the protocol technology licensing program in Europe, as a result of the 2004 antitrust ruling against the company.

In the Statement of Objections, Microsoft was threatened with additional financial penalties because of what the Commission referred to as unreasonable pricing for the interoperability information that failed to deliver sufficient innovation.

Competition Commissioner Neelie Kroes said at the time, "Microsoft has agreed that the main basis for pricing should be whether its protocols are innovative. The Commission's current view is that there is no significant innovation in these protocols. I am therefore again obliged to take formal measures to ensure that Microsoft complies with its obligations."

In the aftermath of the Statement of Objections, Microsoft has filed a response looking to establish the reasonable level of protocol pricing that would illustrate the level of innovation in the Workgroup Server Protocol Program. However, Microsoft did not, beyond the initial reaction, dispute in any way the Commission's claims that it lacks innovation.

Still, more recent events place the Redmond Company at the top of the global leaders in innovation in the BusinessWeek-Boston Consulting Group's list of the World's Most Innovative Companies. Apple and Google are at the top of the most innovative companies worldwide in 2007, while Microsoft accounts for an honorable number five position. The list is compiled by surveying senior management executives worldwide in the 1,500 largest global corporations.

One aspect that I have an issue with is the argument that the iPod represents the main landmark of innovation worldwide, and that the iPhone will ensure Apple's top innovative dog position in 2008. We are talking about a digital music player and a mobile phone. Since when does eye candy design qualify as top innovation?