As Paul Kedrosky is reporting, Microsoft continues to struggle with its online strategy.

This is further evidence that Microsoft needs to look forward, rather than trying to tie everything into its history. The way forward is by burning the boats, not by continuously plugging the holes in those boats. Microsoft will never succeed in the online world until it competes as vigorously there as Google does, which will be difficult while its interest is in hording the riches it has made in the past with the offline world.