To me, Microsoft's dilemma is that they need to keep market share in their core products while at the same time be quick and innovative with new ones. Their co

To me, Microsoft's dilemma is that they need to keep market share in their core products while at the same time be quick and innovative with new ones. Their corporate structure seems to be geared towards managing their complex, large projects like Windows and Office. With a vast project like Windows, it makes sense that they need teams devoted to certain specifics with middle managers. That structure keeps things focused on the goals coming from up top. Unfortunately since everyone is focused on their little piece of territory, innovative stuff is happening on the outside and they don't realize until its too late. Then when they realize something is a big idea they toss it into the same machine they have rolling for huge projects like Windows or Office. As HN readers know, resourceful startups can get a lot accomplished with a small team. If startups had a huge organizational structure with everyone at the top trying to get a piece of the action then nothing would get done. It would do Microsoft a lot of good to have an internal YC-like program that gives resources to small teams with a good product idea, and then leave them alone until they had something to demo. Edit: I read my last point and realized something - it sounds a lot like Google's 20% thing. Does Microsoft have anything like that already?