Technology startups don't have to worry about what Microsoft is doing? Microsoft is losing in a few fields but is still the world's largest and most lucrative software company. Just because it's no longer the youngest, hippest, and fastest growing company doesn't mean that it is dying.
Put it this way: Fifteen years ago, if you were trying to convince someone to invest in you, the question on their lips might have been "What if Microsoft move into your market?"
Now the question is "What if Google move into your market?"
Far from being a threat, Microsoft is now an opportunity target... "We're going to steal this market from Microsoft" is a plausible claim. And so, they are no longer a big worry.
15 years ago, Stac Electronics was on everyone's mind. Where Microsoft might say they wanted to buy your company, or license your technology, then go on to steal it anyway.
This is possibly pg's most misunderstood essay ever, largely due to reactions like this one. He didn't say Microsoft is "dying," just that they're not a threat anymore.
And ultimately, it's for their own good! Microsoft's rapaciousness was hurting them, indirectly. Innovation in the Windows space dried up. Who wants to make the next big successful thing on Windows, when Microsoft will surely swoop in and eat your lunch for you?
