I think it can now be safely said, in hindsight, that Microsoft's entry into the browser business and its subsequent linking of the browser into the Windows operating system looks to be the worst decision—and perhaps the biggest, most costly gaffe—the company ever made. I call it the Great Microsoft Blunder.
It looks like a whopper that keeps whacking the company. The most recent bash came from the
Eolas v. Microsoft patent suit over aspects of the ActiveX usage in Internet Explorer. Microsoft lost and was slapped with a $521 million settlement. If the problem is not weird legal cases against the company, then it's the incredible losses in productivity at the company from the never-ending battle against spyware, viruses, and other security problems. All the work that has to go into keeping the browser afloat is time that could have been better spent on making Vista work as first advertised.
All of Microsoft's Internet-era public-relations and legal problems (in some way or another) stem from Internet Explorer. If you were to put together a comprehensive profit-and-loss statement for IE, there would be a zero in the profits column and billions in the losses column—billions.
The joke of it is that Microsoft is still working on this dead albatross and is apparently ready to roll out a new version, since most of the smart money has been fleeing to Firefox or Opera. This means new rounds of patches and lost money.
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