EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

03.03.08

References Roundup: Microsoft’s Financial Situation

Posted in Finance, Microsoft at 5:05 am by Dr. Roy Schestowitz

Behind a wonderful game of embellishment

Over the many years, Microsoft has successfully created and secured a self-glorifying image [1, 2] which is hard to break. It is a PR exercise. Those who dare to try and break it will be maliciously abused, have their name smeared (cue Bill Parish), pressured to change their minds, or pressured out of their job.

Domination in one area of computing, namely desktop computers, was somehow seen as a route to infinite wealth. Never mind services, servers, hardware sales and so forth. For that there are collusions and kickbacks, but these stories are separate and they won’t be discussed further because scope here is limited.

“Large companies can find themselves paralyzed and difficult to manage, so it’s not just a question of complacency.”One must remember that market presence in a particular area does not warrant profit. It is only success in that area which brings good RoI. Large companies can find themselves paralyzed and difficult to manage, so it’s not just a question of complacency. Just ask Niall Keneddy, who left the company (Microsoft) shortly after joining because he had found a paralyzed giant where he simply could not work effectively. He occupied an area where Microsoft continues to lose vast amounts of money. It’s tomorrow’s main area which requires the company to evolve urgently (e.g. with Yahoo).

There appears to be a bit of an illusion which was propagated from one biased or misinformed analyst onto the other (the “Big Lie” or the “Big Secret”). After the departure of the previous CFO of Microsoft, we decided we ought to explore (hopefully expose) what they try to hide using the assistance of the new CFO, whose claimed figures are too good to be true (on the whole).

As Free software gained traction and provided an immortal alternatives to markets worldwide, rarely could Microsoft afford to crack down on copyright infringement. Even the monopoly still found that it had an amorphous competition, so it had no total control over price. In fact, Gates openly said that it’s easier to compete against Linux when Windows costs $0 in a nation like China. So, with many nations using Microsoft software for ‘free’ (gratis, unlicensed software), how could Microsoft keep up? Has it really been keeping up?

Let us look more closely at our past writings.

A reader has made suggestion as to how we might get even more impact from material that we have accumulated: “You’ve got great things there, but there tend to whizz off in hyperlinks to previous articles, leading to multiple
webs (sic) of information that are very hard to follow.”

“It would be great if you could write a kind of round-up article every so often, summarising all the main developments that have happened in this area,” he added. “Such articles would be much easier to digest, and have far more impact.”

Here is a summary of about half of our posts which cover this area. To make them digestible (readable without having to follow the link), a summary of references (external) and key points are provided for each.

Takeaways: Tax evasion and misconduct.

References: MSFT dividend statement/declaration, Wisconsin cracks down on tax loopholes, Gates Foundation as tax evasion tool, closure of Microsoft branches in Hungary and Ecuador for alleged misconduct, stock options practices pose questions, merger of losing units to hide losses, evidence of massive losses, Microsoft starts massive stock buybacks, company’s savings halved, vice president caught inside-trading.

Takeaways: Microsoft does not tell the truth.

References: Articles on massive Microsoft losses seemingly vanish, problems for embedded Windows, executive exodus seen, only two division are responsible for nearly all Microsoft’s profits, Jim Allchin expresses fears before abrupt departure, Soros predicts problems for the economy.

Takeaways: Figure ‘massaging’ and questions about CFO.

References: Microsoft reaches out for a loan, background about CFO.

Takeaways: Buybacks analysis of IBM (previous-generation ‘dinosaur’) and Microsoft

References: Both companies have shared the very same problem, which they can successful conceal using savings

Takeaways: Failure to evolve.

References: Microsoft clings on to dying cash cows, Yahoo as a matter of Microsoft’s long-term survival.

Takeaways: The Gates Foundation’s role as a strategic financier.

References: World banker takes over the Foundation, a look back at charity payments amid antitrust investigations, Microsoft loses $40 billion in value within days.

Takeaways: Lesser-known divisions cost Microsoft billions of dollars.

References: Many simultaneous blows and pains brought together in a parallel (yet truly independent) analysis. This includes HD DVD, Zune, XBox 360, the Web division and far beyond.

Takeaways: SEC filing for MSFT reveals fear of antitrust and legal action.

References: The US exposes high level of corruption, debt in disguise possibilities raised, a look at Microsoft SEC filings from December, Yahoo and debt, fear of Linux.

Takeaways: Microsoft’s core team decided to leave.

References: Heaps of references to Microsoft’s recent departures, mostly at the highest of levels.

There are many other isolated references that come to mind, including some recent ones which show cases of tax evasion, a highly significant drop in Microsoft’s position as a lucrative place to work in (annually updated ladder of ranks) and writings about hiring standards in the company declining (courtesy of Joel Spolsky, former Excel manager at Microsoft).

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. Links 19/8/2014: Humble Jumbo Bundle 2 Betrayal, Mercedes-Benz Runs GNU/Linux

    Links for the day



  2. BlackBerry -- Like Microsoft Nokia -- Could be the Next Patent Proxy Troll

    BlackBerry is restructuring for patent assertion (i.e. trolling) in the wake of some alliances with Microsoft



  3. After Microsoft's Soft Bribe Some Non-Technical Deputy Does Not Like Free Software, Microsoft-Linked Media Responds to This Non-News by Making Bogus Claims of Munich Leaving GNU/Linux (Updated)

    The subversive forces that have secretly been attacking Munich over its migration to GNU/Linux (Microsoft press, Gartner, and even HP) are back to doing it while China and Russia follow Munich's lead



  4. Gates Foundation CFO Quits and Debate About Revolving Doors Recalled Amid Systematic and Shrewd Bribery of Public Officials

    More officials step out of the Gates Foundation and their destination is not known yet; Gates continues to corrupt the public sector with his money so as to increase personal gain at taxpayers' expense



  5. Links 19/8/2014: GNU/Linux Raves and Alternative to Proprietary Voice Chat

    Links for the day



  6. Links 18/8/2014: Linux 3.17 RC1, Escalation in Ferguson

    Links for the day



  7. Gartner Group Advocates Using Defective Software With Back Doors

    Despite strong evidence that Microsoft has been complicit in illegal surveillance, Gartner continues to recommend the use of Windows and other espionage-ready Microsoft software



  8. The Microsoft Patent Trolls: Android Extortion, Vringo Versus Google, and Intellectual Ventures

    Roundup of news about patent aggression by Microsoft and some of its proxies



  9. Links 16/8/2014: Microsoft Linux, US Government Turns to Free Software

    Links for the day



  10. Links 15/8/2014: Reiser4 in Headlines Again, GNOME and KDE Events Finish

    Links for the day



  11. Links 14/8/2014: Kernel Summit Coming, KMix on KDE Frameworks 5

    Links for the day



  12. Shameless Microsoft Spin is Blaming China for Microsoft's Misconduct and Back Doors While Justifying Massive Losses in Hardware (Made in China)

    A new look at how Microsoft-friendly media takes negative Microsoft news and turns that news into some kind of scandals where Microsoft is the victim



  13. Microsoft Spin in the Media Evokes 'New Microsoft' and New Back Doors

    Some new examples of Microsoft boosters rewriting history, characterising Microsoft as a FOSS champion, and generally weak/shallow reporting on Microsoft's audio/video surveillance software



  14. Links 13/8/2014: GNU/Linux as Winner, New Snowden Interview

    Links for the day



  15. Reader's Article: Skype Spying Reaches New Levels of Blatant

    Forced 'upgrades' of Skype give useds [sic.] of Skype more than they asked for



  16. The Problem is Software Patents (and Scope), Not Patent Trolls Who Abuse Them Just Like Large Corporations

    Reminder of the dangers of losing sight of the real patent problem, which is the patents themselves, not necessarily those who use them



  17. Fraud in the USPTO and CAFC Helped Apple Launch Frivolous Patent Lawsuits Against Linux/Android, Based on New Withdrawals

    Inherent corruption in the US system has aided Apple's assault on east Asian electronics giants that use Linux at the core of their products



  18. Investigation Reveals That USPTO is Corrupt, Time to Abolish It or Annul Nearly a Million Patents

    Corruption is found at the heart of the USPTO and the USPTO works hard to hide it, despite attempt by whistleblowers to bring this corruption to light



  19. Links 13/8/2014: Red Hat Enterprise Linux 6.6 Beta, Tizen in Watches

    Links for the day



  20. Links 12/8/2014: Chromebooks Surge, OpenGL in the Headlines

    Links for the day



  21. Bill Gates is Profiting By Diverting Public Money to His Own Pocket and Reducing Wages

    Gates' lobbying for companies he is an investor of and for lower salaries inside companies he is investing in (and managing) comes as no surprise



  22. Microsoft is Still Attacking Open Standards, So Khronos Does Not Need the Microsoft Moles

    Having attacked the industry's document standard OpenDocument Format (ODF) while pretending to have 'embraced' ODF Microsoft is now pretending that it is eager to support OpenGL



  23. Another Depressing Look at the Patent Systems in the US and in Europe

    A roundup of news about patent monopolies and in particular the immense power wielded by giant multi-national corporations that steer the debate and acquire trans-Atlantic monopolies on ideas, always against citizens' interests



  24. Links 11/8/2014: DEFT 8.2, Linux Mint on Debian Stable

    Links for the day



  25. Links 9/8/2014: Knoppix 7.4.0, GNU Linux Libre 3.16

    Links for the day



  26. Links 8/8/2014: Qt a Separate Company Again, KDE Frameworks 5.1 Released

    Links for the day



  27. Microsoft's Android Lawsuit Against Samsung Shows That Windows is Dead Beef

    Microsoft resorts to AstroTurfing, lawsuits, vapourware, and attack ads, revealing that it is a feeble aggressor whose only remaining hope for revival is destruction of rivals



  28. Only Foolish Governments Would Choose Microsoft or Apple

    China bans Apple's operating systems (just like Microsoft's) while Apple retreats on it litigation strategy from 2010, showing perhaps where Microsoft is heading now that it is suing Samsung (as Apple did some years ago)



  29. Links 6/8/2014: Linux 3.17 Features, Ubuntu in India

    Links for the day



  30. Latest Attacks on Android From Apple/Microsoft and Their Network of Trolls/Partners

    Net Applications (Apple- and Microsoft-funded) makes a misinformation comeback, Apple retreats from some Samsung litigation battles, and Microsoft dives deep into it


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts