Microsoft is still having one heck of a time grabbing a toe-hold in the internet market. A new Mary-Jo Foley post chronicles this latest step by Microsoft: Splitting the Platform and Services unit in two. In my opinion, this is a long overdue move by Microsoft and shows the difficulty of large companies transitioning business focus.
I surmise this slowness to act was due to momentum, and the difficulty of transitioning business focus. On a related note: I kind of saw this coming back in February: Microsoft Live