Microsoft should spin off everything except Windows and Office. Let all those divisions and products sink or swim on their own merits. Ultimately they will get more value from the ability for some of those units to have a breakout success than the marginal benefit they get from twisting all products to serve the "Windows Everywhere" strategy. Not that "Windows Everywhere" is inherently a bad strategy, but if you have a CEO lacking vision, and a glut of middle management politics, it just makes sense to gut the inefficiencies and scar tissue in the middle of the organization and give the rank and file the opportunity to rise to their abilities.
This would also play to Ballmer's strength as a salesman. I get the feeling he looks at how Apple is thriving on a closed ecosystem ("OS X Everywhere") and wants to succeed in a similar way, but he is utterly incapable of it. If he were to focus on Windows / Office and say how can we sell more of this on its own merits I think he would be more successful.