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

07.23.08

Off Topic: Getting Worse For Microsoft… Before It Gets Any Better

Posted in Finance, Fraud, Microsoft, Vista, Windows at 4:14 pm by Dr. Roy Schestowitz

Another harsh week so far

T

his was going to be mentioned very briefly in this evening’s digest of links, but the response to a previous short analysis was very positive. It’s worth expanding on it now that Microsoft’s ‘shocker week’ is through.

Things haven’t gotten much better. To give just a quick overview, an analyst quoted in Reuters suggests that Microsoft should go into debt with another round of buybacks.

Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) should take on debt to repurchase stock as a way to revive its flagging share price, a financial analyst said in a new report issued on Tuesday.

Friedman, Billings, Ramsey & Co analyst David Hilal called on the company to take advantage of its predictable cash flow and rock solid balance sheet to execute a leveraged buyback.

As a reminder, Microsoft is estimated to have just $26 billion in the bank. It is far less than it has had for decades. If Microsoft had bought Yahoo!, it would would have borrowed over $20 billion from the bank. Their CFO even headed over to check these option, as reported by Reuters back in March.

This is bad for Microsoft. It had already completed buybacks valued at around $45 billion over the past 3 fiscal years. Will it be more? The frantic investors dropped their shares regardless and the stock nosedived in the past year.

It gets worse. Would you believe that Microsoft has lost $90,000,000,000 in value so far this year? So says Bloomberg.

Microsoft Holders Say Web Spending Masks Idea Drought (Update1)

Microsoft Corp. Chief Executive Officer Steve Ballmer says he plans to spend hundreds of millions of dollars to fix the company’s unprofitable Internet business. His investors say they want proof he knows what to do with the money.

After walking away from six months of on-again, off-again talks about buying all or part of Yahoo! Inc., owner of the No. 2 Web search engine, Ballmer has left shareholders wondering if he has a plan B.

Microsoft, the biggest software maker, has lost about $90 billion in market value this year as Ballmer vacillated on Yahoo and failed to show how he would crack Google Inc.’s dominance of Internet advertising.

Looking elsewhere in the news, there are too few encouraging signs. Microsoft has apparently just elevated its marketing budget for Windows Vista from $300,000,000 to $500,000,000. That’s a lot of brainwash.

Microsoft is really taking the gloves off this time. ZDNet is reporting that it will spend $500 million to make a powerful statement to its hundreds of millions of customers. I imagine the statement would have to go something like this:

Windows Vista isn’t really as bad as they say. Honest. Please don’t be mad at us. We promise our next operating system will be better. Pinky swear.

After the rejection of Windows Vista by so many large companies, including Intel, for whom a heavy Vista was possibly created, there is not much hope for change in the enterprise. Even Microsoft Watch seems to have given up. Here is a new catch of an opinion on Vista:

“Personally, I can’t stand it,” said Aaron Nettles, president and CEO of Vorsite, a Microsoft Gold Certified Partner in Seattle. “It just seems more unstable to me, and I can’t stand not being productive.”

Mind this person’s role and location.

Another important point to make is that other Windows-based products like Server 2008 and Home Server are based on the same code and they are equally problematic on the face is it. We looked at Home Server before. It took about a year to fix a serious data corruption bug (resolved this week). What does that say about trust in the product? It’s all an illusion, a fairy tale wrapped in brand name.

The other day we also mentioned the financial fraud. Here are some more details to ensure this information is never lost (long-term).

There’s a lot more in the distant past and Wired reminisces.

When John Heilemann began working on a book about Silicon Valley in 1998, he discovered that he was hitting up many of the same sources as a group of lawyers from the Department of Justice. The DOJ, of course, was building its antitrust case against Microsoft, and Heilemann wanted in: “I started calling around and got the assistant attorney general to let me inside a lot of the case — as long as I didn’t write anything until the trial was over.”

Those who believe that Microsoft is still in a strong position and gaining further power are easily carried away by corporation-generated hype and glorification attempts that serve as self-fulfilling prophecies. “If Microsoft does great, so are its products,” right? They just need you to believe. It boils down to perception.

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 27/2/2017: GNU Linux-libre 4.10, Weston 2.0.0, Git 2.12.0, Linux From Scratch 8.0

    Links for the day



  2. Top Officials in French Government Are Growing Tired of Battistelli's Abuses at the European Patent Office (EPO)

    An automated translation of a recent debate about the EPO in the French government, culminating in intervention by Richard Yung



  3. A US Supreme Court (SCOTUS) Which is Hostile Towards Patent Maximalists May Closely Examine More Patents That Apple Uses Against Android

    A company which often takes pride in designers rather than developers (art, not technical merit) may lose that leverage over the competition if its questionable patents are taken away by the Supremes



  4. As Long as Software Patents Are Granted and Microsoft Equips Trolls With Them, “Azure IP Advantage” is an Attack on Free/Libre Software

    Microsoft is feeding enemies of GNU/Linux and Free/libre Open Source software (FLOSS) in order to sell its 'protection', which it names "IP Advantage" in a rather Orwellian fashion (same naming as back in the Novell days)



  5. Patent Trolls on Their Way Out in the United States and Their Way Into China, No Thanks to the Open Invention Network (OIN)

    An update on patent trolls and the role played by supposed allies of Free/libre software, who in practice do everything to exacerbate the problem rather than resolve it



  6. Insensitivity at the EPO’s Management – Part VIII: When Governed by Criminals, Truth-Tellers Are Cast as Criminals and Criminals as Justice Deliverers

    The bizarre state of affairs at the European Patent Office, where being an honest and transparent person makes one incredibly vulnerable and subjected to constant harassment from the management



  7. The Sickness of the EPO – Part V: Shedding Light on Institutional Abuse Against Ill and/or Disabled Individuals

    The seriousness of the situation at the EPO and a call for action, which requires greater transparency, even if imposed transparency



  8. The EPO's Race to the Bottom in Recruitment and Early Retirements Explained by an Insider

    The European Patent Office under Battistelli is failing to attract -- and certainly failing to retain -- talented examiners



  9. Wouter Pors and Other UPC Boosters Believe That Repeating the Lies Will Potentially Make Them Truths

    The lobbying campaign for UPC, or hopeful lies (sometimes mere rumours) disguised as "news", continues to rely on false perceptions that the UPC is just a matter of time and may actually materialise this year



  10. The Patent Trial and Appeal Board (PTAB) is Utilised in Fixing the US Patent System and the Patent Microcosm Loses Its Mind

    A roundup of PTAB news, ranging from attacks on the legitimacy of PTAB to progress which is made by PTAB, undoing decades of overpatenting



  11. The Patent Trial and Appeal Board (PTAB) and the Federal Circuit (CAFC) Take on Patents Pertaining to Business Methods

    Patents on tasks that can be performed using pen and paper (so-called 'business methods', just like algorithms) and oughtn't be patent-eligible may be the next casualty of the America Invents Act (AIA)



  12. Google's Stewardship of GNU/Linux (Android, Chromebooks and More) in Doubt After Company Resorts to Patent 'First Strikes'

    Google has just turned a little more evil, by essentially using patents as a weapon against the competition (by no means a defensive move)



  13. Links 24/2/2017: Ubuntu 17.04 Beta, OpenBSD Foundation Nets $573,000 in Donations

    Links for the day



  14. IAM, Greased up by the EPO, Continues Lobbying by Shaming Tactics for the UPC, Under the Guise of 'News'

    The shrill and well-paid writers of IAM are still at it, promoting the Unitary Patent (UPC) at every opportunity and every turn



  15. Patent Scope Gone Awry: European Vegetable Patents Office?

    In its misguided race to raise so-called 'production', the EPO lost sight of its original goals and now facilitates patent royalty payments/taxation for naturally-recurring items of nature



  16. Yes, There is Definitely Brain Drain (Experience Deficit) at the European Patent Office and Stakeholders Feel It

    The direction that the European Patent Office has taken under Battistelli undoes many decades (almost half a century) of reputation-building and progress and naturally this repels existing staff, not to mention hampers recruitment efforts



  17. The Sickness of the EPO – Part IV: Cruel Management That Deliberately Attacks the Sick and the Weak

    The dysphoric reality at the European Patent Office, which is becoming like a large cell (with bolted-down windows) where people are controlled by fear and scapegoats are selected to perpetuate this atmosphere of terror and maintain demand (or workload) for the Investigative Stasi



  18. Links 23/2/2017: Qt 5.9 Alpha, First SHA1 Collision

    Links for the day



  19. UPC Roundup: War on the Appeal Boards, British Motion Against the UPC, Fröhlinger Recalled, and Fake News About Spain

    Taking stock of some of the latest attempts to shove the Unitary Patent (UPC) down Europe's throat, courtesy of Team Battistelli and Team UPC



  20. The Sickness of the EPO – Part III: Invalidity and Suicides

    An explanation of what drives a lot of EPO veterans to depression and sometimes even suicide



  21. The Appeal Board (PTAB) and Federal Circuit (CAFC) Maintain Good Pace of Patent Elimination Where Scope Was Exceeded

    The Court of Appeals for the Federal Circuit (CAFC) continues to accept about 4 out of 5 decisions of the Patent Trial and Appeal Board (PTAB) and the US Supreme Court (SCOTUS) refuses to intervene



  22. Software Patents Are Ebbing Away, But the “Swamp” Fights Back and Hijacks the Word “Fix”

    The club of patent maximalists, or those who profit from excess prosecution and legal chaos, isn't liking what has happened in the United States and it wants everything reversed



  23. Report From Yesterday's Debate About the European Patent Office (EPO) at the Bavarian Landtag

    A report of the EPO debate which took place at the Bavarian Landtag yesterday (21/2/2017)



  24. Links 22/2/2017: Wine-Staging 2.2, Nautilus 3.24

    Links for the day



  25. French Politician Richard Yung Tells the Government About Abuses at the European Patent Office (EPO)

    The subject of EPO scandals has once again landed in French politics, just a couple of months since it last happened



  26. The Sickness of the EPO – Part II: Background Information and Insights

    With a privatised, in-house (sometimes outsourced and for-profit) force for surveillance, policing, justice, public relations and now medical assessment (mere vassals or marionettes of the management) the EPO serves to show that it has become indistinguishable from North Korea, where the Supreme Leader gets to control every single aspect (absolutely no separation of powers)



  27. EPO Cartoon/Caricature by KrewinkelKrijst

    A new rendition by Dutch cartoonist and illustrator KrewinkelKrijst



  28. Inverting Narratives: IAM 'Magazine' Paints Massive Patent Bully Microsoft (Preying on the Weak) as a Defender of the Powerless

    Selective coverage and deliberate misinterpretation of Microsoft's tactics (patent settlement under threat, disguised as "pre-installation of some of the US company’s software products") as seen in IAM almost every week these days



  29. The Sickness of the EPO – Part I: Motivation for New Series of Articles

    An introduction or prelude to a long series of upcoming posts, whose purpose is to show governance by coercion, pressure, retribution and tribalism rather than professional relationship between human beings at the European Patent Office (EPO)



  30. Insensitivity at the EPO’s Management – Part VII: EPO Hypocrisy on Cancer and Lack of Feedback to and From ECPC

    The European Cancer Patient Coalition (ECPC), which calls itself "the largest European cancer patients' umbrella organisation," fails to fulfill its duties, says a source of ours, and the EPO makes things even worse


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