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. Interesting Supreme Court Cases About Patents in the United States

    A quick review of some of the latest developments regarding SCOTUS (the US Supreme Court) as far as patents go



  2. Governments in Europe Still Active Against EPO Management

    There is still political work being done -- albeit rather discreetly -- against Battistelli and his goons at the European Patent Office's top-level management



  3. The European Spam Office (EPO)

    EPO budget at 'work', days after doing copy-paste jobs and also working overtime in the weekend for an extravagant and needless/purposeless event (except for Battistelli's own pride)



  4. Not Just Benoît Battistelli and Willy Minnoye (EPO): Željko Topić Too Thinks He is Above the Law, Avoids the Judges and Courts

    The latest developments regarding some of the criminal complaints and civil lawsuits against Topić, who is now a Vice-President at the European Patent Office (EPO)



  5. Nefarious Forces for Patent Abuse and Software Patents in the United States, Australia, India, Korea, and Europe

    A roundup of news from the weekend and today, with emphasis on the elements inside the system (or the media) which push for regressive policies that benefit them financially at the expense of everybody else



  6. [ES] El Sistema de Patentes de los EE.UU: Donde Uno Desperdicia Años en Corte y Gasta $8,000,000 en Honorarios de Abogados Peleándo una Patente Falsa

    un sumario de noticias acerca de las patentes de software en los EE.UU. Y ha lo que han llevado, debido en gran manera al decline en calidad de las patentes por parte de la USPTO (dejando que otros se las arreglen limpiando el desórden)



  7. [ES] La Oficina Europea de Patentes Todavía Sigilósamente Abusiva, Pagará $15,000 en Compensasió a Trabajadora Tras un Tardío Fallo de la ILO

    La Organización Internacional del Trabajo (ILO) emite un fallo en un caso de abuso de la EPO y nota “la excesiva duración de los procedimienteos internos de apelación.”



  8. Links 2/5/2016: Linux 4.6 RC6, DragonBox Pyra

    Links for the day



  9. Links 1/5/2016: Wine 1.9.9, Devuan Jessie 1.0 Beta

    Links for the day



  10. The US Patent System: Where One Wastes Years in Court and Spends $8,000,000 in Lawyers' Fees Fighting a Bogus Patent

    A roundup of news about software patents in the US and what they have led to, owing in part to the USPTO's declining patent quality (leaving others to clean up its mess)



  11. The European Patent Office Still Silently Abusive, Will Pay $15,000 in Compensation to Female Worker After Belated ILO Judgment

    The International Labour Organisation (ILO) issues a judgment on a case of abuse by the EPO and notes "excessive length of the internal appeal proceedings."



  12. [ES] Alice Continúa Quebrando Patentes de Software Asi Que los Abogados de Patentes, Cabilderos de los Monopolistas, Etc. Ahora Atacan a la Corte Suprema por Hacer Esto

    los cabilderos Corpórativos y abogados de patentes están tratándo de poner a Alicia en la tumba, por su impacto en las patentes de software que es muy profundo y así hasta ahora casi indetenible



  13. [ES] ¿Cómo Salvar la Reputación de la EPO?: Crear Más Jurados de Apelaciónes en Europa y Abolir la Malgíada/Malintencionada Fantasía de la UPC

    Una crítica evaluación de lo que ocurre en la Oficina Europea de Patentes (EPO), la que rápidamente se está yendo para abajo (y degradando sobre todo) a el nivel de los sistemas Chinos, en conjuntamente con corrupción, los abusos, y la bajísima calidad de las patentes



  14. [ES] La Corte de Apelaciónes del Circuito Federal (CAFC) Acaba de Ponerse a Favor de los Trolles de Patentes

    la tristémente célebre CAFC, que manifestó las patentes de software en los EE.UU, acaba de dar un regalo a los trolles de patentes quienes típicamente usan las patentes de software para extorsión enc complicidad con los jueces del Este de Texas



  15. [ES] Análisis de los Últimos Datos de Lex Machina Acerca de la Litigación de Patentes Muestra Como está Declinándo

    el Professor Mark Lemley de Lex Machina resalta las tendencias en litigation al colectar y analizar datos relacionados con patente y concerniéntes a monopolios intelectuales en general; actualmente muestra una sequía de litigaciones (muestran que ha disminuído)



  16. [ES] La India Está Teniendo Otra Prueba de los Peligros de las Patentes Occidentales, Debe Aprender a Rechazar Completamente las Patentes de Software en Medio de Gran Presión

    El gigante de software que es la India continua enfrentándos ea la cruel y agresivo cabildeo de Occidente, haciéndo que este controle a la India por patentes que no deberían de existir en primer lugar



  17. [ES] Microsoft Dice que Continuará Extorsiónando a Compañías Que Distribuyan Linux, Usando Patentes de Software Usuallmente

    La guerra de Microsoft contra Linux, una guerra que es peleada usando patentes de software patents (por ganancias y/o por chantáje con arreglos empaquetados), todavía continúa a pesar de todas las tácticas de relaciónes públicas de Microsoft y sus sócios



  18. Alice Continues to Smash Software Patents So Patent Lawyers, Monopolists' Lobbyists Etc. Now Attack the Supreme Court for Doing This

    Corporate lobbyists and patent lawyers are trying to put Alice in the grave, for its impact on software patents is very profound and thus far almost unstoppable



  19. How to Salvage the EPO's Reputation: Create More Boards of Appeal in Europe and Abolish the Misguided UPC Fantasy

    A critical evaluation of what goes on at the European Patent Office (EPO), which is quickly descending down (and overall degrading) to the level of Chinese systems, along with the corruption, the abuses, and the low quality of patents



  20. Court of Appeals for the Federal Circuit (CAFC) Has Just Sided With Patent Trolls

    The notorious CAFC, which manifested software patents in the United States, has just given a gift to patent trolls that typically use software patents for extortion down in Texas



  21. Analyses of the Latest Data From Lex Machina About Patent Litigation Show Some Litigation Declines

    Professor Mark Lemley's Lex Machina highlights litigation trends by collecting and analysing data related to patents and pertaining to intellectual monopolies in general; now it shows litigation droughts



  22. India is Having Another Taste of the Dangers of Western Patents, Must Learn to Reject Software Patents in the Face of Great Pressure

    The growing software giant which is India continues to face cruel and aggressive lobbying from the West, enabling the West to control India by patents that should not exist in the first place



  23. Links 29/4/2016: GNOME 3.21.1, Fairphone

    Links for the day



  24. Microsoft Says It Will Continue to Extort Companies That Distribute Linux, Using Software Patents As Usual

    Microsoft's war on Linux, a war which is waged using software patents (for revenue and/or for coercion in bundling deals), is still going on in spite of all the PR tactics from Microsoft and its paid partners



  25. Australia Might be Next to Block Software Patents If Commission's Advice is Followed

    Australian advice against software patents, which can hopefully influence Australian politicians and put an end, once and for all, to all software patents in Australia



  26. [ES] ''Si la Forma de Pensar de la EPO fuese Seguida, Guantánamo Sería Posible en Suelo Alemán.”

    La EPO está todavía bajo fuego, pero mucho de ello pasa detrás de las cortinas y envuelve abogados y/o burócratas



  27. The European Copy-Paste Office (EPO)

    This morning's example (not the first) of how the EPO uses 'social' media



  28. Links 28/4/2016: Fedora 24, EE Goes Open Source

    Links for the day



  29. Amid Referendum “the New European Unitary Patent System is Likely to Collapse Before It Started”

    The Unitary Patent Court (UPC) vision seems like it may be just one month away from its gradual death, depending on British voices amongst other key factors



  30. USTR is Trying to Shame and Bully India Into Introducing Software Patents in India

    Lobbying body of the US (corporations-led) is trying its usual dirty tactics against India's sound policy which excludes software/algorithms from patent scope


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