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 30/8/2016: Fedora 24 Reviewed, Ubuntu Patched

    Links for the day



  2. Links 29/8/2016: Linux 4.8 RC4, Maru OS Source Code

    Links for the day



  3. Let Them Eat Patents

    A reality check regarding software patents and regarding those who truly benefit from an expensive patent system with an even more expensive litigation process/proceedings



  4. Nothing Whatsoever Has Improved at the European Patent Office, It's Just Summer's Recess (and Silence)

    The European Patent Office (EPO) has done absolutely nothing to improve the work atmosphere, it just alters the marketing strategy somewhat



  5. Links 28/8/2016: Q4OS 1.6, ConnochaetOS 14.2

    Links for the day



  6. The United States Has Gotten Over Software Patents

    A roundup of new articles about software patents in the United States, 2 years into the post-Alice era (the US Supreme Court deeming patents on software too abstract to have merit)



  7. More Lies From President Benoît Battistelli and the EPO Crisis Which Continues to Deepen

    The European Patent Office (EPO), collectively speaking, is still wrestling with a Battistelli infiltration (a circle of high-level managers) which habitually lies and viciously attacks those who dare counter these lies



  8. Links 27/8/2016: Torvalds and GPL, “DOD Must Embrace Open-Source Software”

    Links for the day



  9. Links 26/8/2016: Maru OS Resurfaces, Android More Reliable Than 'i' Things, PC-BSD Becomes TrueOS

    Links for the day



  10. Good Job, David Kappos, Says the 'Boss' (IBM)

    Responses to the latest call against Alice (eliminator of many software patents), courtesy of the man from IBM (still paid by IBM) who was responsible for the policy that blindly approved a lot of software patents in the US



  11. Being for Patent Quality or Against Patenting Excess Does Not Make You Anti-Patents

    Like IAM, which tries to portray sceptics and critics of software patents as "anti-patents", IP Watchdog (or Watchtroll as we call it) is 'trolling' the Electronic Frontier Foundation, simply because it expressed an opinion that patent maximalists cannot tolerate



  12. Erosion of Patent Quality Enables Patent Extortion With Large Portfolios of Low Validity Rate

    Revisiting the EPO's vision of poor patent examination and the effect of discriminatory granting practices, favouring patent bullies such as Microsoft (which actively attacks Linux using low-quality and usually pure software patents)



  13. The EPO's Francesco Zaccà Presenting in Turin Alongside Patent Trolls (Like the Patent Mafia Sisvel) and Lobbyists/Front Groups for Software Patents, UPC

    Benjamin Henrion (FFII) on seeing the EPO alongside patent trolls and other nefarious actors, doing what they do best, which is undermining public interests and harming patent quality



  14. The EPO, USPTO, and Patent Microcosm Peddle Myths About Patents in Public Universities and Research

    Tackling some of the commonly-spread myths about patents as "saving lives" and "promoting research" (in practice leading to the death of poor people and promoting trolls)



  15. Large Corporations' Lobbyist David Kappos Disgraces Former Employer USPTO by Meddling in Their Affairs on Software Patents, Downplaying the Supreme Court

    The latest lobbying from David Kappos, who blatantly exploits his connections in patent circles to promote software patents and work towards their resurgence after Alice v CLS Bank



  16. Journal of Intellectual Property Law and Practice Calls the European Patent Office “Rotten”, Other Sources Scrutinise Recent Moves

    The patent office which was once known for being the best bar none is rotting under the Frenchman Benoît Battistelli, who made himself and his friends the main clients of the Office



  17. PTAB Emerges as Hero of USPTO Because Quality of Patents Improves, Software Patents Are Effectively Dead (or Dying Once Reassessed)

    With help from the Patent Trial and Appeal Board (PTAB) -- not just patent courts -- software patents drop like flies by the thousands



  18. Creative Technology, Now Operating in 'Patent Troll' Mode, Shot Down by the ITC; Jawbone Too Shot Down

    Some good news from the U.S. International Trade Commission (ITC), which may have put an end to Creative's new war on Android (using old patents)



  19. Corporate Media in India Misrepresents Startups to Push for Software Patents

    A parade of misinformation as seen in Indian (but English-speaking) press this week as questions about patentability of software resurface



  20. Links 25/8/2016: Linux Turns 25, NetworkManager Turns 1.4

    Links for the day



  21. Links 24/8/2016: More From LinuxCon, Uganda Wants FOSS

    Links for the day



  22. Links 23/8/2016: GNOME 3.22 Beta, Android 7.0 Nougat

    Links for the day



  23. The Linux Foundation Gives Microsoft (Paid-for) Keynote Position While Microsoft Extorts (With Patents) Lenovo and Motorola Over Linux Use

    This morning's reminder that Nadella is just another Ballmer (with a different face); Motorola and Lenovo surrender to Microsoft's patent demands and will soon put Microsoft spyware/malware on their Linux-powered products to avert costly legal battles



  24. Not Just President Battistelli: EPO Vice-Presidents Are Still Intentionally Misrepresenting EPO Staff

    Evidence serving to show that EPO Vice-Presidents are still intentionally misrepresenting EPO staff representatives and misleading everyone in order to defend Battistelli



  25. Battistelli the Liar Causes a Climate of Confrontation in French Politics, Lies About Patent Quality (Among Many Other Things)

    Battistelli's lies are coming under increased scrutiny inside and outside the European Patent Office (EPO), where patent quality has been abandoned in order to artificially elevate figures



  26. The Collapse of Software Patents and Patent Law Firms Trying to “Overcome” Alice

    The United States continues its gradual crackdown on software patents (which are viewed as abstract and thus unpatentable), whereas in Europe things are murkier than ever



  27. Apple's Patent Wars Against Android/Linux Make Patent Trolls Stronger

    Apple's insistence that designs should be patentable could prove to be collectively expensive, as patent trolls would then use a possible SCOTUS nod to launch litigation campaigns



  28. Links 22/8/2016: Linux 4.8 RC3, Linux Mint 18 “Sarah” KDE Beta

    Links for the day



  29. Links 21/8/2016: Apple and Microsoft Down, Systemd Spreading to Mount

    Links for the day



  30. Links 20/8/2016: Android Domination, FSFE summit 2016

    Links for the day


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