"Very few companies can dominate an industry for more than 20 years," Dodge said. "It is just the natural competitive cycle."
Dodge also says that tech companies perform better with company founders still at the helm, and Microsoft has lost this advantage with Bill Gates and Paul Allen stepping down from their daily roles. Steve Jobs of Apple, as well as Larry Page and Sergey Brin of Google remain active at the heads of their respective companies.
The former executive also named a few of Microsoft's glaring failures, calling Windows Mobile "obviously behind" the trend which is now led by the iPhone, and newcomer Android. Vista was a "large disappointment" as well, but Windows 7 helped to "redeem" that mistake.
Digging even deeper, Dodge says Microsoft will begin losing Office customers in 2010 to free web-based technologies such as Google Apps, and may even begin losing OS customers to the upcoming cloud-based Chrome OS.