By many measures, Microsoft is simply too big. The bigness is in the gut, like a middle-aged man who drinks too much beer and eats too many classic potato chips. In computing years, Microsoft most certainly is a middle-aged company. So is Apple, which by comparison is leaner and healthier. What's up with Microsoft's gut?
Based on communications with current and former employees, Microsoft's midriff problem is one of middling middle management. The number of middle mangers swelled over the last decade, and they also are the employees making key management decisions, which includes who gets laid off or fired and where the remaining people work. What manager will fire himself or herself? (Before continuing, let me be clear that only former Microsoft employees will be quoted, and anonymously at that. Current employees would only communicate with me on background, for concern of risking their jobs).