http://l.pr/a41mz/microsoft_earnings_disaster wow, I know they moved some revs for windows 7 forward, but still 27% drop in windows licensing revenue. MSFT has never been in this situation before, always strongarmed everyone into submission. I'm not saying MSFT is going bankrupt, I'm saying they have never been in a situation like this (global economic) and I think many VPs/execs will start heading for the door (typical when things start to turn in tech). Will be interesting to see if MSFT can remain relevant going forward, or do they turn into a phone company type company, no growth, just lots of cashflow. YHOO has MSFT growth rate at I believe 11% CAGR for the next 5 yrs (incld this one). Dunno how thats even possible. Perhaps their fortunes are tied to global reflation. I dont think PC sales declined 27%.. so is it netbooks or what
there other bread and butter of office is free and actually quite good even better than office suite. linux is free too. most of it's revenues are from businesses who pay like thousands for their windows and office packages usually leasing it. and computer technology is plateauing no need to keep changing operating system every 3 years. a computer can last ten years. instead of two years before prior to 2002 or prior to windows xp. there is no reason for gov't or any non-profit to pay for ms office when it's free. only problem is microsoft put bugs into windows 7 or vista so it's buggy with open office files. they do on purpose so the files crash. the next thing gov't is going to do cut back on it purchases that is why open source is taking over. www.openoffice.org
And not only OpenOffice. There are shed loads of good free packages as viable alternative to Windows software: http://www.linuxlinks.com/article/20070701111340544/Equivalents.html
Look what this guy said back in March!!! "" I agree that Google, Open Office, the Cloud and Linux are like a train wreck in front of MSFT. They need to engage Linux with a $50 entry before sheeple find out they can get it free online or in a magazine at Borders and that its easy to install and stable." http://www.elitetrader.com/vb/showthread.php?s=&postid=2337311#post2337311
Vista is uninstalled on my HP laptop. Ubuntu Linux. OpenOffice. Firefox browser. Interactive Brokers. QuoteTracker via Wine, a bit buggy yet, looking for a native charting package for Linux. Also, love playing Enemy Territory via linux during down time. Older completely free online game, still great fun. I really like being free of Bill Gates and company.
The simple truth is for the majority of users, there's no reason to upgrade from XP, I don't know of a single consumer application or game that doesn't run as well or better on XP than Vista or 7. On top of that Office 2007, which I personally think was an excellent effort, meets strong resistance in the corporate world as no one over the age of 30 wants to re-learn how to use Office after getting used to the way it works after 10+ years. Since Windows and Office account for the majority of MSFT's profits, I see hard times ahead.
Microsoft is on life support, comatose, but with a huge trust fund. They better figure out how to invest their cash and position themselves back into relevance, because they're otherwise going to drown in an era of free open source apps and cloud computing. Y'all are watchin' history unfold before y'ar eyes.