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The key to the Microsoft Empire has always been that of controlling the "interoperability layer". It's something Bill Gates learned in 1980, when he opted to forgo royalty payments from IBM for DOS, in order to control all rights to DOS. "Probably the smartest choice Bill Gates ever made came in 1980, when he decided not to hand over the copyright for Microsoft's first-ever operating system to IBM.  In 1980, IBM contracted a startup called Microsoft to deliver DOS, an operating system for its forthcoming IBM PC, on a tight deadline. The IBM PC came out in 1981, and soon became a smash hit, surpassing the leading Apple II. A horde of competitors rushed to build their own "IBM Compatible" clones that could run all of the same software and use all of the same hardware upgrades. But to build those IBM clones, they needed DOS. And if they wanted DOS, they needed to fork over cash to Microsoft. Microsoft kept the rights in lieu of royalties from IBM. DOS put Microsoft the very center of the PC revolution, even through the era of Windows, and even after IBM left the PC market, eventually selling off that business. 36 years later, it's been a long time since the IBM PC moment. And with the Apple iPhone and Google Android ruling the all-important mobile market, Microsoft missed its shot at the mobile operating system revolution.  That's why Microsoft, which keeps boasting about how much it loves selling cloud services and subscriptions, is suddenly investing so much in hardware like the HoloLens and the Surface. If no new IBM PC will come along like in 1981, Microsoft will just have to build it itself. "

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"Back in Microsoft's early days, Bill Gates and Paul Allen devised the mission statement that became the formula for their company's success: "A computer on every desk and in every home, running Microsoft software." Fast-forward a few decades and the playing field has changed. For starters, the notion that we can get by with just one computer at home and one at the office is downright quaint in 2016. Then there's that word software, which brings up images of shrink-wrapped retail packages and CD jewel boxes. Today, most modern development is aimed at creating apps that are lightweight and easily available for modern mobile platforms. And even traditional software is morphing into services, managed in the cloud and available from just about anywhere with Internet access. Microsoft Azure services are gradually replacing on-premises servers, and Office 365 subscriptions are eating into the market for perpetual Office licenses. Put it all together, and I suggest it's time for Satya Nadella's Microsoft to adopt a new mission statement: "A connected world, filled with intelligent devices running Microsoft services and apps." The company's latest financial results suggest that Microsoft is living up to that mission statement. The Intelligent Cloud segment, which combines traditional server products and cloud services like Microsoft Azure, is top dog in Redmond. In the first half of fiscal 2016, Microsoft's combined commercial cloud businesses grew 70 percent compared to the previous year, and that growth rate shows no signs of stopping. To get to that point, Microsoft had to get rid of the mindset that Windows was its most important product. And, indeed, that's happening already. Aaron Levie, CEO of Box and a Silicon Valley veteran, told me recently that he thinks Microsoft has mastered the art of "openness." The result is a series of moves that would have been unthinkable even five years ago, with a steady stream of apps for iOS and Android, including Office 365 rele