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

03.01.11

GNU/Linux and Free Software Shave Microsoft’s Margins

Posted in Finance, Microsoft, Office Suites, Windows at 4:17 am by Dr. Roy Schestowitz

Summary: Windows and Office margins are eroding, which puts Microsoft’s cash cows in jeopardy

A reader of ours (in IRC) has just posted a couple of links from financial news sites. While these sites tend to take Microsoft’s claims at face value even when the numbers don’t add up, the latter story says that “Windows has 75% PC market share” and also speaks about the erosion of margins, which competition with GNU/Linux inevitably leads to:

Microsoft OS’ operating margins have declined from around 79% in 2007 to around 66% in 2010, and we expect it to continue to decline to around 59% by the end of Trefis forecast period. The margins have declined as average OS license pricing has suffered given the company’s expansion into emerging markets and due to lower priced netbooks for which Microsoft sells a cheaper OS license. We expect these trends to continue in the future in addition to the growth in mobile devices like smartphones and tablets which could also weigh on margins in the future.

[...]

Microsoft Office operating margins have declined from around 67% in 2007 to around 61% in 2010, and these could continue to decline to around 54% by the end of Trefis forecast period. Last year, Microsoft released Office web apps, a cloud-based software, to compete with Google Apps, and we discussed some of the challenges in for this product in a note entitled Microsoft’s Stock Could Lose $2 if Office Margins Decline to Google App Levels.

Just as we mentioned earlier today, there is this tendency to ignore the real competition which is Free software. Google Apps is not Microsoft’s #1 problem and the estimate of office suites market share in the article above is incorrect based on surveys that exist. But it’s the trend we care about and it confirms what we occasionally write about.

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 29/4/2016: GNOME 3.21.1, Fairphone

    Links for the day



  2. 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



  3. 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



  4. [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



  5. The European Copy-Paste Office (EPO)

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



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

    Links for the day



  7. 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



  8. 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



  9. No, Visual Studio is NOT Open Source and Xamarin Openwashing is NOT News

    The latest example of Microsoft openwashing, courtesy of confidants of Microsoft and those who got bamboozled by them



  10. Latest Black Duck Puff Pieces a Good Example of Bad Journalism and How Not to Report

    Why the latest "Future of Open Source Survey" -- much like its predecessors -- isn't really a survey but just another churnalism opportunity for the Microsoft-connected Black Duck, which is a proprietary parasite inside the FOSS community



  11. If EPO “Form of Thinking Were to be Followed, Guantanamo on German Soil Would be Possible.”

    The EPO is still under fire, but a lot of it happens behind the scenes and involves lawyers and/or bureaucrats



  12. Links 28/4/2016: Tomb Raider for GNU/Linux, Proxmox VE 4.2

    Links for the day



  13. [ES] La Departura de la Readidad de la EPO Y Su Entrada en la Esféra Industrial China de Propaganda

    La deceptiva trampa del maximálism de patentes, donde se asume que artficialmente aumentando el número de patentes otorgadas traerá el resultado esperado



  14. [ES] Una Fársa de Sistema: ¿Cómo la SIPO, USPTO, y cada vez más la EPO se Convierten en Llenado de Patentes (No Se Requiere Propia Examinación)

    Una crítica al decline en la calidad de patentes en algunas de las más grandes oficinas de patentes del mundo, donde aspiración parece ser neo-liberal en el sentido económico



  15. [ES] Microsoft ‘Asalto con Todo’ Contra Android, Java, y GNU/Linux, Usando la Clásica E.E.E. Táctica de Nuevo

    Otro recordatorio de la realidad que Microsoft está muy activo en el frente E.E.E., not no sólo contra GNU/Linux pero también Android y Java



  16. [ES] Más Rumores y Llamadas Acerca de Prospectos de Microsoft Vaya a Comprar Canonical (Ubuntu con todo y Zapatos)

    Teniendo en cuenta los últimos movimientos de Canonical, algunos expertos piensan que es posible que Shuttleworth elija el dinero a Microsoft sobre principios sino también inste para que esto ocurra



  17. Links 27/4/2016: A Lot About OpenStack, Vivaldi 1.1 Released

    Links for the day



  18. A Farce of a System: How SIPO, USPTO, and Increasingly the EPO Too Turn Into Filing Systems (No Proper Examination/Filtering Required)

    A critique of the declining quality of patents in some of the world's biggest patent offices, where the aspiration seems to be neo-liberal in the economic sense



  19. Microsoft's 'Full Assault' on Android, Java, and GNU/Linux, Using Classic E.E.E. Tactics Again

    Another reminder of the fact that Microsoft is very active on the E.E.E. front, not just against GNU/Linux but also Android and Java



  20. More Rumours and Calls Surrounding Prospects of Microsoft Buying Canonical (Ubuntu and More)

    Taking some of Canonical's recent moves into account, some pundits not only think it's possible for Shuttleworth to choose Microsoft money over principles but also urge for this to happen



  21. [ES] El Nuevo Impulso Finánciado por Microsoft Para Reforzar las Patentes de Software en los EE.UU., Apoyado por los Sospechosos Usuales (La Sagrada Familia) Mientras que Microsoft Cada Vez Más Lucha Como Compañíá Productiva

    Una mirada al esfuérzo de trae una resurgencia de las patentes de software en los Estados Unidos (con un clarísimo rol de Microsoft en él) y la fundación/conf ianza de Microsoften las patentes de software como arma contr Linux/Android porque las ganancias de Windows se están secando y el Windows Phone está al borde del colápso



  22. Links 26/4/2016: Firefox 46.0, Thunderbird's Stewardship

    Links for the day



  23. Links 25/4/2016: Kodi 16.1, OpenStack Summit

    Links for the day



  24. New Microsoft-Funded Push to Make Software Patents Stronger in the US, Backed by the Usual Suspects as Microsoft Increasingly Struggles as a Producing Company

    A look at the effort to bring about a software patents resurgence to the US (with clear Microsoft role in it) and Microsoft's reliance on software patents as a weapon against Linux/Android because Windows profits dry up and Windows Phone is on the verge of collapse



  25. Patents Roundup: Marijuana Patents, Patent Satellites, Patent Trolls, Wars, and Merchants (Notably Lawyers)

    Various strands of news about patents, focused on issues raised in the latter half of last week



  26. The EPO's Departure From Truth and Entrance Into the Realms of Chinese Industrial-Grade Propaganda

    The entrapping delusion of patent maximalism, wherein artificially or superficially increasing the number of granted patents is assumed to be a desirable outcome



  27. [ES] La Fundación de Frontera Electrónica (EFF) Continua su Batalla por la Sanidad de Patentes en los Estados Unidos

    Una mirada a las últimas actividades de la EFF en el área de patentes, donde probablemente habrá mayor énfasis en los daños de las patentes de software y la necesidad de eliminarlas completamente



  28. [ES] La Sociedad Regional de Economía Comprehensiva (RCEP) Amenaza Traer las Patentes de Software a la India

    La amenaza que arrastra otro acuerdo denominado de "comercio" cuyo impacto a favor de los MONOPOLIOS contra los intereses del pueblo de la India y por lo tanto debe ser rechazadas por ellos



  29. [ES] Toma Menos de 10 Votos para 'Ganar' una Elección en la Mini Unión (Minion) de Battistelli

    Una mirada al minúsculo tamaño de la Unión apadrinada por Battistelli, la que parece tener una docena de miembros activos



  30. [ES] Di la Verdad Acerca del Sistema de Patentes de los EE.UU., Conseguiras Ser Atacado por la Máquina Propagandistica de Patentes (Disfrazada de Prensa)

    El Sr. Darrell Issa (fotografiado arriba) cae bajo ataque de los proponentes de patentes de software patents, los apologistas de los trolles de patentes (quiénes los financian frecuéntemente), y los máximalistas de patentes porque correctamente insinuó que la (mayoría) de demandantes son como/casi trolles de patentes en los Estados Unidos


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