Microsoft Urged to Innovate

In a report inspired by the advice of a departing Microsoft manager, a Merrill Lynch technology analyst wrote that the software company must “notch up the innovation component” if it wants to succeed in an era of networked systems and increased pervasiveness of open-source applications. The report, released Wednesday by Merrill tech strategist Steven Milunovich, analyzes points raised in an essay recently published by retiring Microsoft program manager David Stutz.

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