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. UPC: To Understand Who Would Benefit From It Just Look at Who's Promoting It (Like TPP)

    The UPC, which is designed to aid patents trolls and aggressors (and their lawyers), is still being advanced by the EPO and some misinformed (but loyal to these former groups) politicians



  2. Trolls Molestos: Rovi (del famoso Angry Birds) Ayuda al Más Largo Troll de Patentes de Microsoft Intellectual Ventures (Corregido)

    Alguna vez conocido como hacedor de juegos y más tarde como vigilancia en masa en jugadores, Rovi ahora se ESTA ALIANDO CON EL MÁS GRANDE TROLL DE PATENTES



  3. Estadísticas de Invalidación de Patentes y Costos de Litigación de Patentes (incluso si son falsas) Muestran que la Esfera de Patentes y los Estándares de Examinación son un Probleman, No Sólo en Los Estados Unidos

    Demasiadas falsas patentes que no deberían haber sido otorgadas en primer lugar y fraudulentes jucios de patentes que terminan en favor del acusado sirve para mostrar el costo externo (o externalidad) cuando set trata de un bajisímo sistema de patentes que se esfuerza en otorgar muchas patentes irrespectivamente de su mérito.



  4. The 'Offenses' of EPO Staff Representatives Boil Down to Truth-Telling

    Dutch television examined the documents of the mock 'trials' against SUEPO leaders and concluded that whistle-blowing (i.e. exposing abuses by EPO management), not misconduct, is the reason for overzealous dismissals



  5. Rumours About Dismissal of Benoît Battistelli and New Letter From Union Syndicale Federale Blasting Battistelli's Behaviour

    hings have been heating up since the dismissal of staff representatives at the European Patent Office (EPO) and some even spread rumours about withdrawal/dismissal of the EPO's President



  6. VirnetX Case Against Apple Shows Not the Problem With Patent Trolls But With Software Patents

    What the media really ought to be talking about after the high-profile VirnetX case, rather than obsess about the status of Apple or patent trolls in the Eastern District of Texas



  7. Diápositivas de Nueva Charla Explican la Connección Entre la Corte De Patentes Unitarias (UPC) y Patentes de Software

    Benjamín Henrion habló el pasado Domingo acerca de las patentes de software europeas -una presentación que habla de la Corte Unitaria de Patentes, por la que la OEP aboga sin cesar y que es lo que significa para las patentes de software.



  8. Las Políticas de Microsoft Alienan Incluso a los Hinchas Más Acérrimos de Microsoft, Incluyendo Pro-Microsoft Web Sites

    El agresivo comportamiento de Microsoft y su BAJA CALIDAD DE PRODUCTOS dejan algunos de sus últimos restos de ´hinchas´ descorazonados y molestos.



  9. Links 6/2/2016: CoreOS Rocket 1.0, Scientific Linux 7.2

    Links for the day



  10. Maybe It's Time for Class Action Lawsuits Against Microsoft for Forced Vista 10 'Upgrades', Which Were Definitely No Accident

    The sheer arrogance of Microsoft, which silently changes the operating system on people's computers (without their consent), makes lawsuits imperative, not just a possibility



  11. Readers' Article: A Strange Conspiracy of Silence in the German Media (Part II)

    Željko Topić's allegedly dark background, which includes a suicide, a retreat of potential witnesses, German funds in Topić's private bank account and several more interesting bits



  12. Links 5/2/2016: Wine 1.9.3, Slackware 14.2 Beta 2

    Links for the day



  13. Links 4/2/2016: Red Hat Upgraded, Ubuntu Tablet

    Links for the day



  14. The Siege Continues: Patent Lawyers Want More Patents, Including Software Patents, In Spite of Alice

    Lawyers who make money from patent disputes make rather apparent their aspirations, which include patent saturation even in domains that are patents-exempt



  15. European Patent Office Pretends It's Business as Usual and Prepares New Vanity Pieces

    The PR strategy of the EPO, whose destructive patent strategy continues unabated (for now), latches onto Colombia and strives to manufacture mythology wherein the public, patent examiners and patent applicants are all very happy with the EPO



  16. The 'International' Trade Commission Imposes/Reinforces Software Patents to Establish Another Embargo

    The International [sic] Trade Commission is meddling in competition and allowing a US giant, Cisco in this case, to potentially block rivals (no imports from abroad) using software patents



  17. Readers' Article: A Strange Conspiracy of Silence in the German Media (Part I)

    The views of some of our readers regarding reluctance in the German media to challenge the EPO's violations of German law, probably because Germany benefits from being a host nation of the EPO



  18. Benoît Battistelli's EPO: From Show Trials and Mock Trials to a Self-Aggrandising Propaganda Event Later Today in Rijswijk

    A headsup from a reader regarding today's highly misleading event in Rijswijk (e.g. to mislead the media or seed positive media coverage in the Netherlands) and how it was set up



  19. Caricature of the Day: EPO President

    New caricature about Benoît Battistelli, his bodyguards, and the assault on free speech at the European Patent Office



  20. Company Known as European Patent Office Provides Tips on How to Patent Software in Europe

    The European Patent Office (EPO) uses its attendance at CeBIT, which is a corporate expo, to promote software patents in spite of the European Patent Convention (EPC)



  21. Links 3/2/2016: Dell GNU/Linux Laptop, Wine 1.8.1

    Links for the day



  22. The Most Detailed Explanation (Yet) of What's Wrong With the EPO

    The EPO's insistence that it remains above the law is not only coming under fire by the media but is also being challenged based on people who are familiar with the applicability of law to international organisations



  23. Angry Trolls: Rovi (of Angry Birds Fame) Helps Microsoft's Largest Anti-Linux Patent Troll, Intellectual Ventures (Corrected)

    nce known as a game maker and later made notorious for mass surveillance on gamers, Rovi now liaises with the world's largest patent troll



  24. Patent Invalidation Statistics and Cost of Patent Litigation (Even If Bogus) Show That Patent Scope and Examination Standards a Problem in Europe, Not Just the US

    Far too many bogus patents (patents that should not be granted in the first place) and spurious patent lawsuits that end up in favour of the defendant serve to show the external cost (or externality) when it comes to low-quality patent systems that strive to grant a lot of patents irrespective of merit



  25. Es Oficial: Por Medio de Entrismo, Microsoft Ha Convertido a la Pro-Linux Nokia en un Parásito de Patentes Anti-Linux

    Microsoft ha convertido a Nokia en un troll de patentes que ahora ataca a Linux y Android.



  26. Richard Stallman: Patentes Europeas de Software Regresan con la Corte Unitaria de Patentes (UPC)

    Debates acerca de la UPC estan siendo peleados por profesionales de software (entidades prácticantes) y elementos PARÁSITICOS como los abogados de patentes.



  27. SUEPO (EPO Staff Union) Appears to Have Launched a New and Improved Web Site After Attempts to Crush ('Decapitate') SUEPO

    SUEPO, the largest staff union of the European Patent Office, shows signs of strength rather than signs of weakness amidst attacks on the staff and a lot of media coverage, political interventions, and much more



  28. Links 2/2/2016: Chimpbox Quad Core, UNICEF Supports FOSS

    Links for the day



  29. Münchner Merkur Explains That EPO Staff is Defecting to SUEPO, Even The Council Distrusts Battistelli Now

    Press report from Munich, highlighting the crisis of leadership at the EPO, where the President is increasingly viewed as a villain



  30. Microsoft's Policies Alienate Even Microsoft's Biggest Fans, Including Pro-Microsoft Web Sites

    Microsoft's aggressive behaviour and low-quality products leave even some of its last remaining 'fans' disheartened and upset


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