The innovators in technology have long paved the way for greater social advancement. No one can dispute the fact that the impact of Bill Gates and Microsoft will be far reaching for many years to come. The question is whether or not Microsoft will be able to adapt and thrive in emerging markets. The fact that Microsoft enjoys four decades of establishment also makes it difficult to make major changes without alienating the 1.5 billion Windows users.

This was apparent with the release of Windows 8. Windows users had come to expect a certain amount of consistency from their applications. The Metro tile, touch screen interface left a lot to be desired for enough people that Microsoft eventually more thoroughly implemented an older desktop view minus a traditional Start menu.

The app focused Windows 8 was supposed to be a step towards a greater integration of Cloud technology. In recent years, Microsoft lagged behind its competitors in getting established in new technologies. That includes the billions of dollars the emerging mobile market offered and Cloud computing.

Amazon was the first powerhouse to really establish themselves in the Cloud technology market. Google, Microsoft, and smaller parties are all playing catch up to take a piece of the Cloud pie. More and more businesses are embracing Cloud technology as a way to minimize their equipment and software expenses. While it does take a bit for older businesses to get onboard with such a change, start ups are looking at Cloud computing as an essential part of their business.

But what does that mean for Microsoft? Decisions were made to help update the four decade old Microsoft to the "always on" world we currently live in. Instead of operating in project "silos", different departments were brought together under more generalized headings where they could work closer with one another. Electronic delivery of software, including through Cloud tech, puts Microsoft in the position of needing to meet a pace that is very different from Gates’ early days.

The seriousness of their desire to compete with the likes of Amazon is their pricing matching on Cloud infrastructure services. Microsoft is not a company that has traditionally offered price cuts to compete with others. The fact that they have greatly reduced rates on getting infrastructure set up paves the way for more business users of their Cloud-based apps like Microsoft Office. Inexpensive solutions and free applications open the doors for Microsoft to initiate more sales of other products to their clients.

Former CEO Steve Ballmer recognized there was a need for Microsoft to change directions to remain competitive. In February 2014, he stepped down as CEO stating that the CEO needed to be there through all stages of Microsoft's transition in these more competitive markets. And the former role of his chosen successor, Mr. Satya Nadella? Head of Microsoft's Cloud services division.

Microsoft may not always catch the initial burst of a new development in their space; but they regularly adapt and drive forward. The leadership of Microsoft is clearly thinking forward in what they want to accomplish as sales of PCs have stayed on a continuous decline. It should come as no surprise that Microsoft will embrace this new direction and push towards a greater market share against the likes of Amazon and Google.

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Companies have been collecting and analyzing data forever, pretty much.” So what’s really new here? What’s driving the data-analytics revolution and what does it mean for those that choose to postpone or ignore the pivotal role big-data is currently having on productivity and competition globally?

General Electric chairman and CEO Jeff Immelt explains it best when stating that “industrial companies are now in the information business—whether they like it or not.”  Likewise, digital data is now everywhere, it’s in every industry, in every economy, in every organization and according to the McKinsey Global Institute (MGI), this topic might once have concerned only a few data geeks, but big data is now relevant for leaders across every sector as well as consumers of products and services.

In light of the new data-driven global landscape and rapid technological advances, the question for senior leaders in companies now is how to integrate new capabilities into their operations and strategies—and position themselves globally where analytics can influence entire industries. An interesting discussion with six of theses senior leaders is covered in MGI’s article, “How companies are using big data and analytics,” providing us with a glimpse into a real-time decision making processes.

Disruptive technologies such as hand-held devices, cloud computing and social media are rattling the foundations upon which traditional businesses are built. Enterprise customers have grown smarter at ensuring the latest technological trends work in their favor. Everyone is trying to zero in on their core competencies by employing commodity services to run their business.

Likewise, enterprise application vendors need to zero in on their core competencies and enhance more value to the businesses of their clientele by leveraging standards-based commodity services, such as IaaS and PaaS, provided by leaders in those segments (e.g. Amazon EC2, Google Cloud Platform etc.).

What else enterprises need to do is learn to adopt new and emerging technologies such as cloud, utility and social computing to build on them to penetrate new market avenues.

New small and medium-sized entrants into the market are constantly challenging enterprises given their ability to rapidly turnaround and address the requirements of the customers in a cost-effective manner. Additionally, these new advancements also affect how enterprises create, deploy, and manage solutions and applications. If you take the example of Force.com, for instance, you find that it’s a common war zone for enterprise application vendors to furnish SME markets with their applications, with the new entrants mostly having an edge.

No industry is as global as software development.  Pervasive networking means that software developers can, and do, work from anywhere. This has led many businesses to hiring development subcontractors in other countries, aiming to find good development talent at lower prices, or with fewer hassles on entry into the US.

While this is an ongoing and dynamic equilibrium, there are compelling reasons for doing software development in the United States, or using a hybrid model where some parts of the task are parceled out to foreign contractors and some are handled locally.

Development Methodologies

The primary reason for developing software overseas is cost reduction. The primary argument against overseas software development is slower development cycles. When software still used the "waterfall" industrial process for project management (where everything is budgeted in terms of time at the beginning of the project), offshoring was quite compelling. As more companies emulate Google and Facebook's process of "release early, update often, and refine from user feedback," an increasing premium has been put on software teams that are small enough to be agile (indeed, the development process is called Agile Development), and centralized enough, in terms of time zones, that collaborators can work together. This has made both Google and Facebook leaders in US-based software development, though they both still maintain teams of developers in other countries tasked with specific projects.

Localization For Americans

The United States is still one of the major markets for software development, and projects aimed at American customers needs to meet cultural norms. This applies to any country, not just the U.S. This puts a premium on software developers who aren't just fluent in English, but native speakers, and who understand American culture. While it's possible (and even likely) to make server-side software, and management utilities that can get by with terse, fractured English, anything that's enterprise-facing or consumer-facing requires more work on polish and presentation than is practical using outsourced developers. There is a reason why the leaders in software User Interface development are all US-based companies, and that's because consumer-focused design is still an overwhelming US advantage.

Ongoing Concerns

The primary concern for American software development is talent production. The US secondary education system produces a much smaller percentage of students with a solid math and engineering background, and while US universities lead the world in their computer science and engineering curricula, slightly under half of all of those graduates are from foreign countries, because American students don't take the course loads needed to succeed in them. Software development companies in the United States are deeply concerned about getting enough engineers and programmers out of the US university system. Some, such as Google, are trying to get programmers hooked on logical problem solving at a young age, with the Summer of Code programs. Others, like Microsoft, offer scholarships for computer science degrees.

Overall, the changes in project management methodologies mean that the US is the current leader in software development, and so long as the primary market for software remains English and American-centric, that's going to remain true. That trend is far from guaranteed, and in the world of software, things can change quickly.