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Can Microsoft Survive If Windows Doesn't Dominate?
Nerval's Lobster writes "In his latest Asymco blog post, analyst Horace Dediu suggested that Windows' share of the personal-computing market is declining at a faster rate than many believe, once Microsoft's cash cow is put in direct competition with Android, iOS, and other platforms built for tablets. In that context, Windows' share of the personal-computing market has dipped past 60 percent on its way to 50 percent. The big question is whether it'll keep plunging. 'If Windows tablets start growing as fast as the tablet market overall then Windows could stabilize in share,' Dediu wrote. 'But if Android and iOS tablets follow their phone brethren in growth then it will be far harder for Microsoft to maintain share.' Yet despite that gloomy scenario, Dediu doesn't necessarily see a market-share dip as a cause for concern on Microsoft's part: 'Even if Windows dips to only 20 [percent] of the world's computing market it will still be perfectly 'viable' for some time to come,' he wrote. But even if Windows can perpetuate, will its decline fatally undermine Microsoft as a company? All that Windows (and Office) money also allows Microsoft to launch projects that lose money for years before they gain traction. Without that monetary base, for example, it's possible that the Xbox (which bled money for the first few years of its existence) wouldn't have survived long enough to become a viable platform from a financial perspective—much less the center of Microsoft's future plans for living room domination."
Microsoft owns both gaming and workplace PC's. Nothing is going to take that from them. Tablets aren't meant to replace PC's, they're just too different kind of devices. Microsoft has nothing to worry about.
Businesses have been flirting with Linux desktops for a decade. Another decade and they'll work up the nerve to ask for a date. They're like nerds that way.
Not to mention the Server & Tools Division that sells Windows Server, IIS, SQL Server,Lync Exchange, Visual Studio etc. keeps getting record revenue every quarter.
From http://venturebeat.com/2013/05/20/with-19b-in-revenue-microsofts-server-and-tools-chief-says-hes-just-getting-started-interview/
Meet Satya Nadella, president of Microsoft’s server and tools division, a division that builds and runs the company’s computing platforms, developer tools, and cloud services. Nadella leads a team of over 10,000 employees, and his group alone makes $19 billion in annual revenue – which is more than the combined revenues of Facebook, Yahoo, LinkedIn, Zynga, Netflix, and a few others in the Valley.
That doesn't even include Office and Azure recently became a one billion dollar business by itself. Microsoft is pretty well diversified, unlike Apple with it's reliance on iPhone and iPad and Google with 95% of revenue from ads. As usual, Asymco comes with shortsighted analysis that mistakes the trees for the forest.
That's why the people with their own money on the line are buying up MSFT (stock went from $27 to $35 due to the last earnings report) instead of the air-headed armchair analysis that we see on here of 'lol my grandma ditched her PC and got an iPad so that means M$ is dying'.
A real challenge to the Microsoft hegemony would squeeze out the idiocy and arrogance that currently dominates the company. Forced to pay attention to users and developers, Microsoft would never have created a disaster like windows 8, or the developer-hostile policy of allowing languages and platforms to "dead end."
Heck, someone at Microsoft might actually wake up and figure out that the policies and strategies that benefit Microsoft in the long run are those that benefit users and developers, not the marketing department, or upper management bonuses.
I joke. I joke. Of course this will never happen.
Please do not read this sig. Thank you.
Their own pride, and probably corporate policy which says "all things must be Windows".
If Microsoft announced next week they were doing an Android or a Linux distro, their stock would probably tank because that would be interpreted as basically saying "we're losing the fight, so we're looking into other things".
I agree that Microsoft is far from dead, and are likely sitting on huge cash reserves. But I don't see Linux and Android as a way forward for them.
They'd do a better job of actually listening to what people want out of their products, instead of just releasing a much hated Win 8 only to have to reverse course with the changes in Win 8.1.
Me, I'll be curious to see how they fare with the next XBox -- because I suspect lots of people are reading these press releases and thinking "gee, that doesn't sound like what I want".
Lost at C:>. Found at C.
Let's rewind to a previous millennium long ago swept away in the sands of time. Let's go way back to . . . 1990.
Then the sudden realization hit. IBM's PCs were priced at monopoly prices and people were not buying them. The company was in crisis and had to reinvent itself. It got new management. Times got leaner. And they weren't committed to past management decisions.
By 2000 we had a much nicer IBM that was focused on its profitable mainframes and was friendly to both Linux and Java.
After Microsoft reinvents itself, it will have retreated to and focus on its profitable business. Microsoft has a very profitable and serviceable business with its Enterprise software Windows, Outlook, Exchange, Office, SQL Server, etc. Like IBM before it, Microsoft has already begun embracing open source (Apache, PHP, etc etc) that enabled its enterprise customers to do what they do.
Like IBM, Microsoft won't go away. Probably ever. But it will become a smaller and gentler Microsoft without the nastiness and bullying once it has been de-fanged of its monopoly power.
I'll see your senator, and I'll raise you two judges.
I have a PC running Windows. My household has a 100% Windows marketshare.
I buy a tablet and a phone. Suddenly my Windows only has 33% marketshare, while Android went from 0 to 67%!
But I still have a PC running Windows. So does a billion other people.
Gotta love 'em analysts.
Windows can't be used to crash Android apps that compete with Microsoft's.
Help stamp out iliturcy.