Microsoft has compelling product cycles to ride with Windows 7 and Office 2010, but the long-term picture is worrisome given the software giant’s lack of mobile success, according to an analyst...The big question is whether Microsoft can give the innovation cycle a run in the mobile market and entice consumers to try Windows devices.

If anyone has doubts about the importance of mobile, the investor community has certainly taken note. It should be an important factor for other companies that are evaluating their mobile presence. Given the company's resources, I wouldn't underestimate Microsoft's ability to respond to the marketplace with a better mobile strategy but, for now they are playing catchup.

There will be a lot of activity in the device market in the next few years, including entirely new categories of devices. This presents an opportunity for Microsoft to catch up. Microsoft will need to re-think how it is approaching innovation as a company. Having a large base of customers and a strong brand will not be enough.