Finally some good news for Microsoft: UC Davis Rejects Gmail

The faculty of the University of California, Davis decided against deploying Google’s gmail system campus-wide after many expressed concerns about privacy.

The decision is good news for Microsoft after a long recent string of bad news that includes the decision by the city of Los Angeles to go with gmail and the announcement today that Bing’s share of the search business fell after growing for months.

Still, its a small victory. Students at UC Davis will continue to use gmail. And morale at Microsoft remains low as the company’s stock price continues to stagnate. There is growing talk of dissatisfaction with Steve Ballmer’s leadership. Maybe Microsoft has grown too big for Ballmer to handle. Maybe it’s time for Microsoft to break up as many suggested during the U.S. justice department’s antitrust case against Microsoft. Would Microsoft have been better off as several separate companies? Should the company consider spinning off its Xbox, office and internet divisions? Expedia is certainly a far more powerful and dynamic company as an independent entity than it would have been as a part of the mothership. What do you think?