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Financials Indicate Microsoft Prepping for War
SpaceAdmiral writes "Microsoft has surprised analysts by forecasting significantly higher expenses in the next fiscal year, an indication that the company might be getting ready to do battle with its online rivals. According to analyst Eugene Munster of Piper Jaffray, 'It looks like Microsoft is going to war with Google.'" From the article: "According to Mark Stahlman of Caris & Company, the fact that Microsoft plans to spend significantly more in 2007 was an indication of renewed aggressiveness in its competitive strategy and an indication that the company was returning to the kind of actions it exhibited before the Justice Department's antitrust lawsuit in the mid- and late 1990's. 'It's pretty clear that Bill is running the company again,' Mr. Stahlman said, referring to Bill Gates, 'and they are going to remake the business. They are being much more combative and much more strategically managed.'"
Business / Microsoft
Spot the dinosaur
Mar 30th 2006 | REDMOND
From The Economist print edition
Microsoft’s core business is under threat from online software
IMAGE
RECENT advertisements for Microsoft show office workers as dinosaurs, stuck in a bygone era. Aptly, it is an accusation that some are now making about the software company itself.
Microsoft earns more than half its $40 billion or so of annual revenue—and the vast majority of its profits—on just two products: the Windows operating-system and Office, a collection of personal-computer (PC) applications including word-processing and spreadsheet programs. Both, however, are coming under threat from new technologies.
The pressure Microsoft is facing in its core businesses is similar to one confronted by IBM—another firm that was once synonymous with computing. At the beginning of the 1990s IBM had to face up to the shift from a computing world dominated by mainframes to one dotted by personal computers. In this new world hardware became a low-margin commodity and Microsoft’s operating system took the privileged position. Today, Microsoft still dominates the PC market. But like IBM before it, today’s giant knows that its position is under threat.
The threat to Microsoft comes from online applications, which are changing how people use computers. Rather than relying on an operating system and its associated application software—bought in a box from Microsoft, and then loaded onto a PC—computer users are increasingly able to call up the software they need over the internet. Just as Amazon, Google, eBay and other firms provide services via the web, software companies are now selling software as a subscription service that can be accessed via a web-browser. Salesforce.com, the best known example of this trend, offers salesforce management tools; other firms offer accounting and other back-office functions; there are even web-based word-processors and spreadsheets. This lowers the economic and technical barriers to entry for firms wanting to compete with Microsoft, as well as diluting the advantages the firm gets from controlling how the computer works.
These huge shifts in computing take a very long time, because there is so much inertia in the marketplace—the idea of online applications has taken years to get even this far. Microsoft is still in a position that most firms would kill for. Its two main products—Windows and Office—remain fabulously profitable quasi-monopolies. Even if online applications and open-source software make rapid progress, Microsoft would retain a powerful and profitable position for some time.
For all that, however, online applications clearly threaten the way Microsoft makes its money. Its licensing agreements are geared for a world where software is a physical product, purchased on discs, and paid for at once or in regular instalments. But its online competitors charge each user a subscription: some like Google are even supplying software as a free online service, financed by advertisements. Last month Google acquired the firm that created Writely, a popular online word-processing program that is an obvious potential competitor to Microsoft Word.
Online competitors have also mastered quick development and deployment times that Microsoft cannot match. Meanwhile open-source software—developed co-operatively and distributed free of charge—is also gaining ground. George Colony, the boss of Forrester, a technology-research firm, believes Microsoft faces the biggest challenge in the firm’s history: “Bill Gates knows how to compete with anyone who charges money for products,” he says, “but his head explodes whenever he has to go up against anyone who gives away product
MSFT took a hammering today as it lost 11% of its value today - it remains to be seen if this is a permanent fall or not.
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[url]http://biz.yahoo.com/ap/060428/microsoft.htm
Almost makes MSFT look like a value stock... (That is, if you can evalutate MS on technical merits and not knee-jerk "Linux r00ls M$ SuX0rs!!!" criteria.)
However, I personally wonder if Mac OS X won't take a larger chunk out of MS in the coming future... What do you guys see in the crystal ball for Microsofts Future?
Try to hack my 31337 firewall!
So, I decided to try using it as a desktop product, now that I'm doing more "office" type tasks. Those elements I found very difficult, as described in my original post. Some stuff I figured out, after fooling around with config files. Other things I just couldn't fix. An example is the fact that when you're using OpenOffice Calc and try to save a file to an SMB share, it pops up windows about not being able to save a backup copy of the file. Yes, I checked all the permissions. Yes, I mounted the SMB share both by using Gnome's built-in smb:// interface and just sticking it in fstab. No, I don't have time to go through OOo's source code and fix the bug. I have a job.
Just installing the thing and getting a good set of apps on it took about 8 hours. I followed a guide posted online. It worked well, but that's 8 hours I'll never get back.
I think people are fooling themselves when they say people are just more familiar with Windows. As between Windows and OSX, I can accept that argument, since in my experience OSX works pretty well. Gnome and KDE are a different story. It's not just familiarity. It's the fact that they have serious bugs and problems that affect everyday users and make using them really hard.
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Shares in Microsoft Corp. (MSFT.O: Quote, Profile, Research) slid more than 11 percent on Friday, their biggest drop in more than five years, after the software giant said earnings would be hurt by increased investments aimed at fending off rivals such as Google Inc. ... The move shocked Wall Street, which had hoped to benefit from the company's biggest product releases in years, with its Vista operating system and Office 2007 scheduled for January. ... "This is still a company that is extremely profitable. What people are worried about is whether that ever flows through ... to the benefit of shareholders, or does the company spend that money," said Charles Di Bona, an analyst at Sanford C. Bernstein.
No doubt disspointing reviews of Vista and DRM'd content are part of the fizzle.
The long predicted downward spiral has begun. Employees are leaving for greener fields, product sucks and the competition is better. It will only get worse for them. They had their chance to fix things back when they promissed to take care of security four (five?) years ago. Instead of fixing, they wasted their time and energy with more anti competitive junk like Bitblocker, Paladium and lock box media. Their efforts to expand into the server market flopped and so will their efforts to expand into the kinds of services they derided back in 2000. Such a spiral could not have happened to a nicer company.
The Microsoft idiots thought they were going to come out swinging and are surprised that people are tired of being punched in the nose.
Friends don't help friends install M$ junk.