For a while now, the conventional wisdom in Silicon Valley has been that Microsoft has lost “relevance”—perhaps the most withering indictment a tech company can sufer. The software giant still generates substantial profts and employs more than 100,000 people, but because its main business is essentially to service the computer needs of corporations, it’s beginning to have the earmarks of a utility. Microsoft missed the smartphone and tablet revolutions. And its attempts at innovation, such as the Bing search engine and Zune music player, failed to ignite the imaginations of frst or even second adopters. Fourteen years ago, Microsoft was the salted nut at the cocktail party—and Wall Street judged it to be the most valuable company on earth. This year it ranks fourth, behind Apple, ExxonMobil, and Google.
The…