Microsoft "getting schooled" in Washington by Google

Its been interesting to see my 11-28 open letter to Bill Gates and Steve Ballmer bounce around the Internet and also become part of the Wall Street chatter.

The feedback has been that it was a well written and thought provoking letter/analysis that got people and investors to think of the net neutrality issue and fight in a much broader, holistic and linked way.

• Most investors had been looking at the issue in isolation or through a silo view.
• Few investors had yet connected the dots in the open letter; that Microsoft is becoming more of a communcations company every day with all its regulatory risks.
• Now there is a much better appreciation in both the investment and antitrust communities for what Microsoft's net neutrality position could mean for the company's web services plans and model going forward.

The letter was also an eye opener to investors that Microsoft is not really controlling its own destiny in Washington, but following Google's leadership. Google certainly appreciates the irony of an eight year old company taking the "adult" company to school in Washington.

Given that Google presents the biggest real threat to Microsoft's web services plan in both the marketplace and in Washington, I find it interesting that Microsoft has allowed itself to be so outsmarted and outflanked by Google in Washington.  Is Redmond going soft or just distracted?