The problem is at their core they fail to recognise there are two organisations, hard business under M$ and creative works under MSN. They have allowed M$ to be a continual drag upon MSN and really failed to capitalise on it's value. Doing silly stuff like lessening the brand with outlook, live and bing over advertising and lessening page view worth and crippling creativity by leaving it stuck under M$ management.
They should split the company and allow MSN to achieve it's worth whilst they milk windows and office for all they can. The cloud has been severely impacted by the shenanigans of the NSA. It looks like he global cloud is at an end, already under threat in Russia and China and likely to fragment further. Appliances are back on the table and likely to dominate as trust has been pretty much permanently destroyed. Even something as simple as a mobile phone is seeing storage capacity increase as people want to store locally and backup at home, trust is being abused at every level of business both by corporations and government agencies.
They need to focus on plug and play appliances, creating a home stack or a business stack. At home that means a big screen display, modem router with storage capacity, phone, pc, notebooks, family notice board (web, mail and internet server all built in). Business tends to be much just greater capacity, greater demands on reliability and more units in the stack. Software taking a back seat to supplying the appliance complete, ready to go and just plugging into the stack. Hard copy is also part of that stack whether 2D or 3D.
They should also not shy away from Android or Linux it just leaves them looking incomplete and less than professional. Lock in opportunities are shrinking especially as major markets will actively block it, not anything to do with M$ but all to do with the US. Many countries let is slide for surprisingly long but now they are actively legislating against it, so now adding in other OS's keeps them in those markets.