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MS Sales Growth Limited by Delays in Windows

Alien54 writes "As reported by Bloomberg, Microsoft Corp.'s sales growth will probably drop below 10 percent next fiscal year for the first time because delays in the next version of Windows have created the longest-ever lag between releases of the software. They go into some detail on how the lack of new products also hurts multiyear subscriptions, because clients that buy the contracts expecting to get product upgrades may not renew if new items won't be available for a while. Didn't someone say once that they have enough reserves to last 5 years without any sales at all?"

6 of 308 comments (clear)

  1. How much? by LaserLyte · · Score: 5, Interesting

    I wonder how much Longhorn is going to cost exactly? A combination of Microsoft's obviously declining userbase and 5+ years of development costs needing to be covered is going to mean Longhorn's pricetag will have to be pretty steep if MS is going to profit directly from it.

    Hmm... the article claims "Windows runs 93 percent of the world's personal computers". That's way more than I would have guessed. How is that measured exactly? And who by?

    1. Re:How much? by msim · · Score: 5, Interesting

      Even taking the inflation costs into account, haven't the costs of windows ballooned disproportionately since the days of windows 95?

      I mean Win98 was a bit of a hike, WinME (i never even walked past it in a shop, i'd take a detour) presumably shot way up in cost. Then they extolled the virtues of Windows 2000 (which i admit was the best they've released thus far) as the start of the merger of consumer OS and Business OS.

      And now they are wallet raping everyone with XP. LaserLyte may well be right about the costs going even further up into the stratisphere. No matter what people say though, i just find it a bit difficult to get my head around paying so much frickin money for something as intangible as software.

      I'm sure that if they lowered the cost of the software somewhat, then they'd be able to cash in on the people that originally thought their software too expensive (and thusly found a mate with a cracked cd of Latest-funky-jive (TM) operating system.

      Sure as shit on a stick they'd have my attention and i'd consider buying Microsoft Software if they made it more stable and cheaper. And that's saying something!

      --

      Life is like a box of chocolates, you never know when your gonna get food poisoning.
    2. Re:How much? by nightgeometry · · Score: 5, Interesting

      Hmmm, I bought a mac recently. When i went into the local apple dealer to try and get one they had a 4 week back log, *too many* people buying them.

      I sat in the shop for awhile, playing with the macs. While i was there about 7 people came in, same as me, always used unix or windows, and wanted a mac. 7 people, but i left after 45 mins (admitedly it was a saturday morning).

      I know more and more people buying cheap (ish) iBooks, first time mac users mostly. It seems to me that mac use is going up quite drastically.

      Could just be I'm seeing more of them as I am looking, if you get what i mean.

      *shrug* just thought I'd say.

      --
      The best is the enemy of the good
  2. This may be a good thing for Linux. by karmatic · · Score: 5, Interesting

    Depending on how well the Distribution creators handle this, this can be a blessing or a curse for Linux. Generally speaking, companies want equal or better features before they consider switching (equal, if price is the main concern - better, if it's not).

    The long delay between releases will give Linux a chance to improve itself, and present a better alternative to Windows, with more features, better security, and a lower price.

    However, this can also be a curse - MS is taking their sweet time, and this may be due to fixes, or it may simply be that they are developing stable, great features. If Microsoft releases a slew of new features which businesses find to be essential, Linux will once again be playing the "catch up" game.

    It will be interesting to see how this plays out over the course of the next few years.

  3. This has ripple effects on other businesses. by Anonymous Coward · · Score: 5, Interesting

    My company does Windows consulting primarily, but we do have two Mac guys (one of whom is me) who handle the art departments at large corporations, among other Mac-based clients.

    Company management has been concerned for some time that the 'project' aspect of our business will take a nosedive during this long period between major Windows releases-- many of our clients have already upgraded to Windows 2003 server and have mostly XP and 2000 client workstations that won't need replacement for a few years. With the Longhorn delays adding up, the Windows integration side of our business is facing something akin to a nuclear winter.

    In light of this, we just had a long meeting yesterday about things we need to do to bring in new Mac clients and otherwise grow the Mac side of the business.

    Hopefully, Apple will take advantage of Longhorn's long gestation period as well.

  4. Dropping Hits -- MS Records by Eberlin · · Score: 5, Interesting

    So we're used to having MS release a new hit cd every two years. By hit I mean boy-band tracks hastily cobbled together and pushed out the door to an awaiting fanbase. (look, how else do you explain it?)

    Ballmer and Gates make press conferences touting their new hit singles like "A New Outlook" and "DRM - Quicker Than A Ray Of Light" -- but of course you can't just buy the singles. You have to buy the entire CD...and good luck trying to get rid of the tracks you don't want.

    Now people started complaining about how their hits aren't put together well so they decided to finally take it slow, spend time at the studio, and actually sit down to make good music. The fanbase was like "awwww, you didn't have to do that!" while the critics were "riiiight, like they'd REALLY do that."

    Then MS realized they're not going make the 2 year cycle deadline so faster than you can say "oops, I did it again" they start tossing out stuff they were promising to deliver. Their new hit "Palladium Blues" may have to wait. That new Filesystem track that you could Tae Bo to -- gone.

    So what's left? Probably a complete rehash of their latest album. Maybe they'll P-Diddy some of the stuff Apple released a few years ago. Toss in a reworked "IE Blockin' Da Poppas" along with Ballmer's dance moves and the fanbase will eat it up like a warm leftover casserole.

    As for me, I'm a critic, not a fan. I'll stick to my GPL's Greatest Hits cd. You know, the one that comes with the "I Honk For Herring" sticker and a video of Stallman singing the "Hacker Song." I must say I passed on the Torvalds In Speedos poster, though.