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Microsoft is a very large company. Anyone who's worked at a company even a tenth the size of Microsoft knows how hard it is to get the company to pick a direction. The only real direction you can get everyone to agree on is "profit," and the nice thing about the existence of Azure as one of their major profit centers is that Microsoft now has a bunch of business that depends on Linux running well. A company mostly running Linux is already looking at them as third place behind Amazon and Google - if Microsoft risks making kernel developers unable to run Linux, they risk making kernel developers unwilling to accept patches to make Azure (or WSL) run Linux well. I'm not saying they're never going to try it, since the Azure org doesn't control the UEFI signing program, but I am saying there's a significant part of the company that will say that it threatens their profits to a scale much larger than the lost Windows licenses on consumer PCs. Fun fact: every single example in the Wikipedia "embrace, extend, and extinguish" article https://en.wikipedia.org/wiki/Embrace,_extend,_and_extinguis... is something that failed (IE is dead, Office 365 works great on non-MS browsers, MS has no influence on Java, MSN Messenger is dead, MAPI is dead, etc.). The only thing harder than getting a company the size of Microsoft to agree on something is to get the rest of the industry to go along with it too. The few cases where they've succeeded (e.g., the thing from the 1980s where they made OEMs pay them even for machines that didn't ship with MS-DOS) were when they had a sufficiently technically superior product they could use to bully people. They don't have that power anymore. |
You're assuming the goal of these things was to replace the product, when the goal was to destroy the competitor.
Netscape is dead (and Firefox is dying), all the historical competitors to MS Office are dead or have negligible market share, Java never got enough market share to make it easy for people to switch away from Windows, AIM/ICQ/whatever are all dead (and worse, nobody really uses XMPP or other open protocols), hardly anybody runs their own email server anymore, etc.
They successfully destroyed all of the independent versions of these things, so that now their competitors are only the likes of Google and Facebook who get where they are by leveraging their own dominant market positions in other markets.
It's also kind of disingenuous to say "IE is dead" and "MSN Messenger is dead" and ignore Edge and Skype and Teams etc.