While the 30 employees in company I work for can make a living selling software for a few million $'s per year, Microsoft can't even look at markets our size. Why? Microsoft is too big. The market isn't significant enough to make a dent in their revenues. In order to grow, Microsoft can only go after huge, massively profitable markets, and those are becoming fewer and far between. When appropriately large markets do arise (internet search and services), they often compete with their desktop products. These markets threaten to cannibalize their core business, which forces Microsoft into the loosing defensive position.