Services and devices can coexist in a company, if each division is allowed to pursue profit regardless of how it affects the other. In Microsoft's case, that means releasing Office apps for the iPad and Android, even if it makes it more difficult to sell Windows tablets.
The battle among giant tech companies today is between entire ecosystems, not individual products. Selling off important parts of Microsoft's ecosystem would make it much more difficult for Microsoft to compete. That harms, not helps, the company.
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