In an article from PCWorld called Microsoft's Top Three 2008 Mistakes, Shane O'Neill of CIO.com discusses some of the things that went well for MS, and some that clearly did not.

In spite of aggressive marketing by Apple, Mac sales fell 1 percent over the year and Windows PC sales were up 7 percent. Microsoft's grip on the PC market remained firm - with 90% of users running Windows, and 70% of internet browsers using Internet Explorer.

One has to think that the bad press MS keeps getting will have to impact these market shares eventually. Although it sure seems like both Apple and Firefox do not understand that their elitist attitude ("we're so much better and smarter than the other 90% of you") is an implicit criticism of the very customer they are trying to reach.

2009 will be a pivotal year for MS as they continue to try to beat off Apple, Google and Mozilla (Firefox).

According to the PC Word article Microsoft's biggest mistakes for 2008 were:

1. Poor marketing of Windows Vista - They've been letting Apple get away with bashing Vista for years now. It's just not as bas as the critics say it is, and MS's own lack of promotion reinforces the idea that the critics are right.

2. Letting Apple Build Anti-Vista Momentum - Even though the sales figures may not yet show it in a convincing way, Apple has taken the marketing game away from MS with their constant Vista-bashing. MS has not shown that it can adequately respond. Expensive ads featuring Bill Gates and Jerry Seinfeld missed the mark. Just recently I saw an ad touting the unique features of Vista in a straight-ahead way. It's about time.

3. The Failed Yahoo Bid - Early in 08 the bid for Yahoo looked like it might be a case of two search losers getting together. The failure of the bid did nothing for MS's image as a "winner" or a company forging into the future.

As it turned out it was probably good for MS that Yahoo rejected their offer. Now Yahoo is worth a fraction of what MS offered, Jerry Yang, the big Yahoo opponent of the bid is gone, and new Yahoo investors are now courting MS.

MS is still interested in Yahoo's search business, and may very well end up with it in 2009.

For a number of years this technology has promised to revolutionize the delivery of "last mile" service connecting homes and offices to internet access points. But these days the focus is more on mobile applications that make it a viable alternative to standard cell phone services.

The provider of this service in Portland will be Clearwire, a company formed through joint cooperation of Sprint, Clearwire, Google, Intel, Comcast, and Time Warner.

WiMAX will not be significantly cheaper than the alternatives, but it does promise to offer greater potential for merging disparate services such as internet, cell phone, Voip and cable tv.

Text messaging is something that has become second nature to young people as young as 9 or 10 years old, and it has basically made email obsolete as a way for teenagers to communicate with one another. Thompson reports that in December his two teenagers sent and received about 10,000 text messages - that's about 83 messages each per day - while his 17 year old son claims to have sent maybe 10 emails in the whole month.

On the other hand Thompson himself - a technology savvy parent and real estate agent - has more than 5,000 email messages in his inbox, and most of his own text messages have been back and forth with his children. So there is clearly a "generation gap" when it comes to the use of electronic messaging.

As he says, "The point is, the way we communicate is changing. According to some researchers there will be 2.3 trillion text messages sent this year. Wikipedia says that 80% of 13 – 24 year olds use text messaging (compared to 18% of 40 – 49 year olds). That’s a whole lot of texting by a whole lot of soon to be first-time home buyers."

The other change that has already taken place over the last couple of years is the way an increasing number of people use social networking sites like Facebook and Twitter. People who would not think of using a stuffy email message to talk to each other find themselves commenting to each other back and forth through Facebook and Twitter. Not only are these becoming mature communication channels between people, but companies and entrepreneurs are finding innovative ways to interact with customers and prospects through these massively popular media.

The bottom line is that real estate agents will have to accommodate themselves to the communication media used by their clients. That means if they want to reach young people who are plugged into these non-traditional modes of communication, they themselves will have to become plugged in.