What should Microsoft do next?

Okay, this is not totally my idea. After the yahoo super deal fell through there were lot of pundits predicting Microsoft's next move or acquisition. I am compiling this list that made more sense to me based on my puny little knowledge...

• FaceBook
• MySpace
• SecondLife
• SalesForce.com
• Novell

Yahoo is so 1990's company. Why would anybody buy them. If you ignore them for another two years or so, there wont be any Yahoo any more (Ofcourse there is a brand name that yahoo carriers, but not worth the money). I dont see anyone making a case for ROI on yahoo purchase. May be finally Steve Ballmer realized it is a bad idea. Yahoo is not even the No.1 visited website anymore.

Why FaceBook/mySpace

Why would you not buy FaceBook or MySpace. In the recent years, if there was a internet company that kicked Google's butt, it was FaceBook. Not Yahoo. Go and talk to pre-teen and teen agers. My 10 year old nephew already has a myspace webpage. He does not know email/IM/blogging/etc., but he knows myspace and he does email/IM/blogging/picture upload everything at myspace without even knowing it. His version of internet is what mySpace or FaceBook provides to him. This is a typical case. If eyeballs matter to making money in internet, it is facebook or myspace. Not yahoo. FaceBook or MySpace is the future desktop for average user.

Why SecondLife

SecondLife, the only reason I keep SecondLife in the shopping cart is because of the virtual environment it provides. It could be testing ground for Microsoft for many of their consumer products. They can bring products in SecondLife before releasing it to general public. Heck, the alpha and beta user community should be built on SecondLife. It can help Microsoft convert the business model.

Why SalesForce

Marc Bernioff was the first one to make money on SAAS market. It is a great place for companies to reduce their data center and Infrastructure costs. Since SalesForce.com is already ahead of the game in SAAS, why not buy them. For one, that would make Larry Ellison blood pressure go through the roof. Seriously, if Microsoft wants to get a play in Cloud computing, OnDemand data center, then SalesForce.com brand will help them make the case much easier. Hey, if MS pulls off the story that enterprises dont have to worry about Infrastrucuture security, just host your applications in our Cloud infrastrucuture, we will host it and we will keep the uptime, patching and maintenance, I guess that would be a good sell.

Why Novell

Firstly, it is a double edge sword for Microsoft to support/strengthen mono capabilities. If they dedicate their mind on mono, it could mean competing with their Windows platform. Conflict of interest. But if they own a Linux platform, then hey, it is another revenue that they did not have before. Even if SUSE Linux steals some of the Windows customers, still the money comes to the same overall bucket. Although, think about customers that may switch from RedHat to Suse because of easy collaboration with Windows and MS products.
Secondly, Microsoft dont know how to play in OpenSource. Novell's acquired DNA in OpenSource may help MS understand the community better. The skepticism may go away if MS play their cards right.