In Fast Company’s November 2011 issue, I ran across the front page/feature article: “The Great Tech War of 2012. Apple, Facebook, Google, and Amazon, battle for the future of the innovation economy,” and I came to realize that Microsoft is content with being an aging elephant in the presence of lions, young and old.

I’m surprised at the length of time Microsoft has kept CEO Steve Ballmer at the helm of the company – especially since he hasn’t made any bold moves as CEO.

Microsoft’s failed attempt to purchasing Yahoo! Was a blessing in disguise – especially since they were able to take control of Yahoo!’s search engine in a favorable deal (partnership).

Instead of creating their own social network Microsoft has invested hundreds of millions of dollars into strengthening Facebook. And to boot, Microsoft spent billions of dollars to acquire Skype, and integrated Skype into Facebook’s network.

Maybe I’m wrong about Microsoft’s equity stake in Facebook, or maybe I’m right, in thinking that Microsoft should’ve invested all of those millions of dollars into creating their own social network.

Looking at the investment’s appreciation since the time of the initial investment to now, such an investment has been profitable. However, such a profit fails in comparison, to the value gained if Microsoft could’ve used such money invested to create a successful social network of their own.

Instead of pursuing a central social strategy that is in mouse, Microsoft has pretty much given up on a social strategy of its own, and has focused its attention on strengthening Facebook’s standing as the dominate social network.

Microsoft not only integrated Skype into Facebook, but has also tied Facebook’s data into its search engine results. Both instances show Microsoft’s short sighted view, when it comes to the overall importance that social connections will play in the future of business.

The boldest/smartest move CEO Ballmer could make would be to sell Microsoft’s equity stake in Facebook and to use its strengths (work force, cash, etc.) and social friendly businesses (Skype, Xbox Live, Bing, etc.) to create its own network.

I can understand how a person could come to believe that Facebook is too dominating to be overtaken. Yet, I know that Facebook has yet to deliver a game changing feature to sufficiently secure its number one position as the dominate social network. Therefore, the future of social networking is up for grabs.

If I had Microsoft’s resources I would be able to crush Facebook, and make its future history a reflection of Friendster’s and MySpace’s.

I applaud Google’s attempt at creating a viable social network (Google+) to compete with Facebook. But I’m in the belief that Google is to focused on search and mobile to adequately focus on social.

If Microsoft fails to pursue its own social network, it will miss out on the greatest business opportunity that currently exists.

The first thing I would do is create a killer feature that would give individuals a reason to sign up on a newly created network, and to make it addictive enough to keep returning. (Note: I already have a concept for such a feature).

I would also create/ build virtual mine malls as a physical/ bricks – and – mortar presence, where people could buy the latest electronics, play virtual arcades, and so forth.

I would also create areas where companies could test products and /or hand out samples, conduct surveys, etc. However, all of such activity would be done in a non-intrusive fashion.

Microsoft can remain an aging elephant by failing to take advantage of Facebook’s missteps. Or, on the contrary, Microsoft can rejuvenate its self by creating a disruptive/revolutionary social network, and return to its prime as the leader of the pack.