Microsoft's Surface 2 represents everything that's wrong with their model

Hardware is fine. It’s necessary. Someone has to do it. Those who do it should specialize in it. Microsoft has always been a great software company (otherwise, they might have been called Microhard). They should stick to their core strength.

Microsoft on Sept. 23 will launch its Surface 2 and Surface 2 Pro devices—known around here as YAFS (yet another financial sinkhole)—and we’re likely to see a refresh and some modest improvements. Let’s give Microsoft props for its persistence, but the company’s latest devices and services business model are a case of skating to the puck where it used to be and not where it’s going.

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