Make Money, Don’t Make Anything

According to this article Microsoft is getting out of the software writing business to become a media company. This is the quote from Steve Ballmer that I like:

"Our close partnership with the ad community is extremely important to us as we evolve Microsoft from a software company into the world's largest, most attractive provider of online media through MSN, Windows Live and adCenter," said Ballmer. "Ad-supported software services are an integral part of Microsoft's plans to give consumers access to a broader variety of digital media, whenever they want and on whatever device they prefer."

They want to make money through advertising. This puts them on a head-on collision course with Google. Unless Microsoft comes up with another sly move like they used to get DOS from IBM or how they took the idea for windows from Xerox I don’t think they will win this one. But it makes me think of something else. GM makes more money from its finance division than it does from making cars. In ancient times bakers and pottery makers were not highly paid even though their services were essential for existence. The merchant class was the wealthy class. This still seems to hold true today. The further removed you are from actually making something the more you stand to profit.