Opinion - Chicago (IL) - Microsoft appears to be grasping at every source of revenue potential it can reach and then some. It's actually now moved beyond the point of being kind of interesting to follow along with, and into the area of "Okay, it's time to be a little concerned." This most recent move of Wonderwall's celebrity news/gossip site has us scratching our heads and wonderwalling: What are they thinking?





Many may not remember this, but when Microsoft and NBC joined forces to create MS-NBC, the partnership was billed as the future of newscasting - a change in the way we all receive the news. After all, Microsoft was the dominate software force on the planet and if anyone could integrate the computer, Internet and television ... it was Microsoft. And today, while there are different personalities on that channel, the truth is the news business is still the news business and if anything MS-NBC is behind the curve with CNN touting 3D holograms and the high graphics often seen on Fox News.






Microsoft's new joint-venture with BermanBraun Interactive to create Wonderwall.com, "an innovative entertainment and celebrity content destination" which scrolls horizontally to mimic a user flipping through a magazine, has me scratching my head.




I thought I had seen just about everything I could from Microsoft when they unveiled their x86-powered coffee machine at CES 2009 while announcing future plans to produce other similar Internet-enabled household devices. I mean how smart does a coffee maker have to be? Or a toaster? It's ridiculous!



I now find myself in a notably difficult position because I have to be completely honest to what I'm seeing here, but at the same time what I'm seeing is not good. I seriously think Steve Ballmer is directing Microsoft in unusual directions to say the least. And I don't understand why it's happening.



I have to ask the question: Is Microsoft a software company or not? Are they a kitchen appliance company? Or a social/gossip website for the latest in trash journalism - building on their previous success with MS-NBC? Are they trying to branch out just to survive financially? Or is this some kind of crisis Ballmer's having in his life which is affecting not only him, but also the company?



This behavior from Microsoft is perplexing. And I believe we haven't seen the last of it yet either.



While Microsoft's OS market share is shrinking rather quickly, going from 96% in 2005 to 88% today - just over three years later, and while Vista sales have not lived up to original expectations and are even cited as causing part of the DRAM industry's current financial woes, Microsoft stands to lose big money if it can't turn things around in its OS department as most of its tools don't run on other platforms. And I think concern over that realization may be PEEKing a little. It's making me wonder what they might know about Windows 7 and Windows Azure that we don't.



From all outward appearances, Windows 7 beta shows excellent promise for Microsoft as a future revenue source. Nearly all early reports are very favorable, especially from TG Daily readers. I believe many analysts and critics even believe Microsoft's Windows Azure will truly boost the company's long-term revenue streams. Microsoft bills Azure as the OS model for the next 50 years and, should it actually work as promised, it does have the potential to literally change the way the world conducts business. But I'm just lost in the tall weeds with all this other stuff going on in the interim because Microsoft is clearly leaving its core software business with ventures like these.



The only thought I can even begin to draw some comfort in is the one where I wonder if Microsoft isn't in some way showing us its concern over the future of Windows 7 and Windows Azure. Are we seeing Microsoft's hand here - aces and eights?



See Microsoft's press release and Wonderwall.com.





Rick C. Hodgin is Managing Editor at TG Daily. The opinions expressed in this column are solely those of the writer.