Microsoft offers deep integration with its other offerings:
The integration with Microsoft services appears top-notch, ranging from OneNote in the cloud to Zune for media, Xbox Live for gaming and Bing for navigation and search.
I think this is 100% the right strategy; at the same time, I'm not convinced it will be successful. Apple did very well by simply integrating iTunes with its iPod, and grew that into the phone business. Apple's platform continues to be the easiest and best music experience, to the extent that they might be able to leverage that further into the social space with Ping. Microsoft has a richer stable of apps that people rely on, and building in and on them gives them the greatest chance for competitive advantage.
But the size of Microsoft -- the innumerable products they have -- will make getting integration right difficult. Even integration between Excel and Word, which have been around forever and have hardly changed recently, is clunky and superficial. Integration into Sharepoint was another opportunity to dazzle us with unimaginable convenient and features, and instead every time I use Sharepoint, it feels like a distraction, something I need to get around.
Another confounding aspect: which integrations carry the biggest upside? Is Zune really a partner you want to be tied to? Is OneNote so compelling that integrating with it brings value? Do you even know anyone using either?
Despite these concerns, Microsoft has to travel this path. Otherwise, they're just another company (yes, with a lot of money, but that didn't help Kin, Zune, or their other failed new products), and definitely not the nimblest or most risk-taking -- two required features of successful new ventures.
