But look underneath, and you find failure in every attempt Microsoft has made to branch out of their existing businesses, except for the Xbox.
Mobile? Lost to Apple and Google. Music? Lost to Apple. Instant messaging and identity (.net Passport)? Lost to Facebook. Tablets? Lost to Apple. There are countless examples like this.
Given all those failures, that nice cash flow will only be sustained until the Windows monopoly is replaced by something else. Windows 8 is Microsofts desperate response to something that threatens to do that.
DEC was hugely successful in its day, but was a failure in the 90s because they couldn't manage the transition from minicomputers to PCs.
Also I am less convinced than others that Microsoft is flopping on everything. Azure is certainly a good start for example.
Seriously?
Azure is what - 4 years old? It's still yet to see significant adoption outside places that were already .NET/Windows shops.
Until that happens it's little more than another defensive play by Microsoft attempting to protect Windows revenue.
(Yes, I know it can run Linux VMs. Again - is anyone outside .NET shops using it?)
Microsoft is only a failure if we expect them to build an ever more powerful monopoly with no possibility of escape. They may be trying to do that. Instead they have a large and solid business which is still very cash flow.
Tell me of Microsoft's failure when the profits of Google or Facebook surpass the profits of Google.