Microsoft scored a major win yesterday by having a federal appeals court overturn a lower court’s opinion that the company be broken up in two. The decision, however, is more than a business victory. It also has a significant impact on Microsoft’s software development capability.

“If Microsoft were to be split into two separate entities, the sum of the individual parts would be greater than the whole,” says Mike Schiff, vice president of e-business and business intelligence for Current Analysis Inc., Sterling, Va. “The operating system entity would gain new software application development converts from those vendors that currently compete directly with Microsoft’s tools and applications, while the non-operating systems software would be ported to other operating systems.”

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