Back to its roots
In the late 1990s, Microsoft was investing billions in cable and telecommunications companies and pouring its own development resources in a number of areas, including its MSN Internet service and a range of consumer Web services.
"They are again really focused on selling software," Rosoff said. "Part of that is Ballmer's legacy -- he knows where the money is coming from."
At the same time, Microsoft has continued to diversify its technology portfolio and extend its reach into the IT market. It has moved into new areas such as enterprise software and has cast itself as a major player in the home entertainment industry via the launch of its Xbox video game console and other media-oriented products. The company is currently moving aggressively into the PC security software space; it launched a beta version of its first entry into the antispyware market earlier this month, and it detailed plans to introduce antivirus software applications later this year.
As for Gates, the shift gave him more time to spend on technical projects, but in some ways there has still not been enough Gates to go around.
In the early days, nearly all products went through a "Bill review", Rosoff said. Now only some projects find their way onto Gates' plate.
"It's harder to get in front of Gates than it used to be," Rosoff said. Gates has been most active in a few key projects, he said, including the Tablet PC and Longhorn, the company's next version of Windows. Even with all of Gates' attention, though, Longhorn fell behind schedule and had to be significantly scaled back.
On a personal level, Gates has continued to expand his considerable philanthropic efforts via the Bill and Melinda Gates Foundation, which holds claim to an endowment of about $27bn and has contributed to everything from relief efforts surrounding last month's tsunami in South East Asia to efforts to improve the IT resources in the world's education systems. Recognised as the world's richest man, with a net worth of about $46.6bn, Gates has also transformed his image from that of a sometimes arrogant and aloof individual to a kind of polished media darling.
