Microsoft is dead.

Paul Graham has caused a nice little ripple because of his article labeled 'Microsoft is Dead'. He even wrote a follow up article to clarify his position because people got so upset. Have any of these people who are crying actually RTFA??

First of, I'm a big fan of his essays, they usually make a lot of sense.

I heard him speak recently in startup school. He gave the speech of Why to Not Not Start a Startup. It was educational, funny and motivational. I wanted to get out my macbook and start changing the world right there and then! :)

He's not a stupid guy, read between the lines. Microsoft isn't dead. It's not going to run out of money. Visual Basic will still be around, don't you worry!! :)

He's saying that the decline has started. MSFT have lost their teeth.

People are more scared of Google than the 800 pound gorilla that is Microsoft. MSFT doesn't innovate. They just copy 'n paste and are successful because of a very effective marketing department. Do the cool-kids developers that want to go change the world go work at MSFT? I don't think so. Even Scoble is going on a rant about MSFT. He says:

"This isn’t Netscape you’re talking trash to, Steve. Have you really studied Google? It doesn’t sound like you have.

Again, Microsofties, you’d be better served not to talk trash until you have something YOU CAN SHIP!"

Google is knocking out cool innovate things all over the place. Agreed they are only making money on one thing (and they are making a lot of it) but they are changing the industry. How is MSFT doing that?

I've read that when startups try and go get VC money the standard question is 'If Google enters this space how are you going to compete?'.

That's a hard question to answer.