"It's pretty clear that Bill is running the company again," Stahlman said, referring to Bill Gates, "and they are going to remake the business. They are being much more combative and much more strategically managed."
After Microsoft released its report, Sherlund issued a research note saying it appeared that the company planned to spend $2.4 billion more than he had expected in the 2007 fiscal year. He pointed to the costs of building the new Windows and Office Live online services, both intended to reposition the company to compete against Google and Yahoo.
Of all the coverage I've read on Microsofts fiscal 2006 Q3 results John Markoff's IHT piece hits the mark. New hire Niall Kennedy's post underscores the need to first unite the tribes internally. My mantra over the years has simply been that organisations cannot be something on the outside they are not already on the inside. The unanswered question is whether Microsoft's current leadership is capable of evolving from a state of chaos to organised chaos? Time will tell.
UPDATE : Steve Ballmers internal memo response to Wall Street reaction