- Fire your marketing department. The mode of operation, it seems to me, is come up with an idea, and market the heck out of it. for example: Silverlight was going to take the web and kill all other plugins. XPS is going to take PDF on and win. Windows Phone 7, was marketed to the tune of many $M's. Be more humble. Let the products talk
This may come as a shock to you, but that's kinda the way pretty much every company on Earth works. And, oddly enough, it's a remarkably successful strategy. Being humble and 'letting the products talk' has never got anyone anywhere. Even the companies who pitch at the higher end of any given market, like Apple, advertise heavily. They're just more focused because they fundamentally aren't aiming at the same size market.
- Get more good engineers. It will be hard. The good one, it seems, want to be in silicon valley.
I don't think Microsoft have ever lacked good engineers, that Windows works at all and runs such a diverse amount of software is a testament to that fact. Now hiring people who are good presenters to present stuff, rather than just sticking devs on stage would probably be a much wiser idea.
- Open source
What I didn't mention is how to make $$. I don't know.
Well those two rarely go together for one thing.