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Where Microsoft's Profits Come From
derrida writes "Microsoft is the largest, most profitable software company in the world. In case you had any doubts about where Microsoft's profit comes from, there's nothing better than a graph to make all those numbers clear. As you may have guessed, the desktop division is quite profitable, while the online division is a money pit."
It should be labeled "Where stupid people waste their money."
I've noticed the same thing too. Lot of times people say MS doesn't innovate or think long-term strategies. Losing $500 Million a year for the online division kind of shows that they do, and they're expanding their business. Yeah, it's a lot to lose every year - but theres also the possibility of high returns in future. That's how business works.
How is this a coincidence? They are so successful at one area that it resulted in a sanctioned monopoly. If they weren't so successful in their core business, they wouldn't be a sanctioned monopoly in the first place.