WASHINGTON, Aug 23: The path forward for Microsoft following news of chief executive Steve Ballmer's departure remains murky as the tech giant seeks to get back on the edge of innovation.

Microsoft said it will look at both internal and external candidates to succeed Ballmer within 12 months, but some analysts say it needs to make dramatic moves.

“The world has moved faster that Microsoft’s licensed software business model could respond,” said Forrester Research analyst Ted Schadler.

“I think it’s a good decision for Steve to step down and pass control to someone else, probably an outsider. Microsoft will then face its IBM or GE moment: Keep the company together or break it apart?” Roger Kay at Endpoint Technologies Associates said Microsoft “is too big and ungainly and has competing goals” and might be better off broken up into smaller units.—AFP