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07.12.09

Microsoft Executive Quits as Microsoft’s Startup Business Accelerator Shrinks

Posted in Microsoft at 7:03 am by Dr. Roy Schestowitz

Sunken small boat

Summary: Another notable departure follows large-scale cuts at Microsoft

A DAY AGO we wrote about some more shuffles inside Microsoft’s executive ranks, which quickly erode [1, 2, 3]. Here is the latest executive to leave Microsoft and some background information:

The Startup Business Accelerator, under chief research and strategy officer Craig Mundie, was among the groups hit hard by the company’s latest round of cuts. The MSN Direct and .Net Micro Framework teams, other parts of the startup group, were also affected by those cuts.

GNU/Linux might not need to pull off anything exceptional; it need only wait patiently for Microsoft to take itself out of business. GNU/Linux is rapidly destroying Microsoft's margins.

“Microsoft can’t charge $80 or $100 when there’s Linux for free on netbooks,” Rosoff said. On regular PC sales, Microsoft’s profit margins are typically about 70 percent to 80 percent, he explained.”

Microsoft Press

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4 Comments

  1. Bob Mottram said,

    July 12, 2009 at 7:14 am

    Gravatar

    For tech startups with no legacy software behind them using GNU/Linux is a good way to get going with minimal costs and maximum productivity. Microsoft are foolish to abandon this sector, because as the economy begins to turn once again towards growth (not sure exactly when that will happen, but it will) I think we’re going to be seeing a lot of new technology startups.

    David Gerard Reply:

    Microsoft lost them around 1994 and knows it.

    Roy Schestowitz Reply:

    According to The Economist, Microsoft also lost around $18bn in 1998 and apparently knows it. It was around that time that they started harvesting patents with IV or at least came up with the idea. Don’t forget Halloween, either.

    aeshna23 Reply:

    I wish Sarbanes-Oaxley law would be repealed so that there would be more start-ups and more nails for Microsoft’s coffin. The Sarbanes Oaxley was passed in over-reaction to the failure of Enron, but it dramatically increases the cost of start-ups and thus decreases the number of start-ups. Of course, it means big companies get a bigger share of the economy. I’m sure Microsoft loves Sarbanes-Oaxley.

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