How Do Old Tech Companies Adapt to New World?

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March 28 (Bloomberg) -- Stanford University Fellow Vivek Wadhwa discusses disruptive technologies on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Ceo socgen r della that's the first time -- i want to bring back vivek wadhwa from stanford.

Between microsoft and blackberry it has really been a challenging time for some of these tech companies.

You look at microsoft and i said this before, effectively feels like the ge of the tech world.

Kind of big and boring and really not much of a growth engine.

How does a company like microsoft -- and we will talk about blackberry in a minute -- how does microsoft adapt to the new world we are in?

Companies like microsoft are more likely to start stagnating and become dinosaurs really.

Because they can't innovate like startups can.

Now, google is doing moonshot, like the google car, the cell driving car, the google maps that we have.

They are doing far out things that are revolutionary and can transform the company.

That is one model, and it works very well for google and i am very optimistic.

Facebook is acquiring like crazy.

Ridiculous valuations.

Microsoft is fighting internal -- internal battles.

I am not as optimistic.

This new ipad version of office, no way i will spend $100 for office on my tablet especially given tablet prices are dropping toward zero.

You can buy tablets online for $40, these indian made tablets.

The next two or three years, prices of tablets will be down to about $50 or so.

Are they too late?

Is this something they should have done when tablets first came out?

They should have done it five years ago.

Microsoft, like i said, i am not optimistic.

They have to start acquiring like crazy and rethinking their business models.

Vivek, let me just jump in and offer this up.

The idea that microsoft has just gotten too big for its own good.

Federal lawmakers wanted to break it up.

In an antitrust lawsuit going back as far as 2000, that was reversed.

It never happened.

Companies sort of continue to plod along in this rather but he missed the way.

Would be better off.

Would it be more agile if it was broken up?

Without a doubt, absolutely right.

Microsoft should be broken up into three or four different pieces and let the pieces compete with each other.

That office do the right thing for itself -- let office to the right thing for itself in the windows platform.

Right now they are trying to protect one from the other, and it is a mess.

You can't run the companies and be successful this way.

You hit the nail on the head.

Blackberry question mark -- blackberry?

It is already toast.

They are talking about selling real estate in canada to make a little more money.

They have come out three times the last year and a half until the world they are for sale.

No one is buying.

What is the future?

Blackberry should just open source operating system configured new strategies out.

I am not optimistic about them.

Microsoft is much simpler.

This text has been automatically generated. It may not be 100% accurate.

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