Bonum Certa Men Certa

Another Tough Weekend for Microsoft

In recent posts about the secret pains of Microsoft we had identified growing weaknesses in the 'Cash Cow' departments [1, 2]. Well, in the past couple of days alone, the same problems persisted. Here is just a quick roundup that serves as another sample.

Office Business



As new signs of future trouble, consider the strong new push in China for a Microsoft Office replacement. Citing Red Flag Linux, crtiics would argue it's a bargaining card, but once you look closely, it doesn't quite seem so. They bypass Microsoft at formats level and the software looks impressive.

Ren predicts that the UOF standard will be promoted in at least six ministries in China by the end of 2008 and then might become compulsory among other Chinese entities. This should ruffle some feathers at Sun, IBM, and Microsoft.


In response, Microsoft changes its proprietary formats again and makes them competition-hostile. It claims to have changed the legal terms though. This happened at the end of last week.

Expect more margin erosion as Microsoft fights back. In response to competition on-line and on the desktop (chiefly OpenOffice.org), prices continue to drop. Here is a new report:

"This is also part of our Unlimited Potential program," added Rivera-Moreno. Microsoft's Unlimited Potential is a global program aimed at helping the middle and bottom of the world's economic pyramid of about 5 billion people, the software company's website stated.


Microsoft will of course blame what it calls "piracy", but it should be very clear what is happening here. Even in wealthier countries, Office and Exchange (along with adjacent layers in the network and stack) are gradually being replaced. Here is the latest such story. Now it's the Telegraph's turn.

Might the news that the Telegraph Media Group (TMG) is moving to Google Apps and phasing out Microsoft Office and Exchange be in future remembered as the end of the Microsoft desktop arm-lock? Probably not, but the stakes are so high that it's worth a little speculation.


Databases



Microsoft recently called MySQL a "biggest competitor". Watch this new article from The Register. [language warning]

Sun Microsystems is about to *** the database world, and nobody sees it coming. Imagine a SQL database that can support the absurd level of concurrency promised by HyTM. Conveniently, Sun owns one of the most popular relational databases in the world: MySQL. If MySQL on a single Rock based system can outperform Oracle or Microsoft spread across many systems, then DBAs worldwide would gladly tell Larry Ellison or Steve Ballmer where to shove it.


Direction



The departure of Johnson appears to be worse than it initially seemed. It was possibly fast and impulsive, suggesting that there may have have been something to escape, something to run away from.

Johnson's departure from Microsoft probably abrupt



[...]

Remarks from Chief Executive Steve Ballmer at that meeting certainly indicate the move was a surprise.


There's more to indicate confusion and lack of focus. From Friday:

1. Ballmer: Big Plans, Few Options

Ballmer was emphatic, if not frustrated. If he said it once, he said it a thousand times: A bid to buy Yahoo!, or just its search business, was off the table.


2. Microsoft may need an IBM moment of clarity

Microsoft could use some of that focus. It’s not that Microsoft is forgetting the enterprise business. In fact, Microsoft is hellbent on being the No. 1 enterprise software company. The problem: That enterprise windfall is funding things like Live Search and Xbox. I credit Microsoft for its willingness to invest and be tenacious, but you have to wonder about the returns here.


3. As other companies cut back, Microsoft keeps spending

His goal isn't to cut spending but "to convince you that we are investing money wisely."


They try to acquire rather than earn more and more sources of revenue. Savings may be down, but they need to impress investors to keep momentum going. The analysts don't exactly buy that because it is not sustainable. Microsoft may be approaching debt if it starts another round of buybacks.

The inability to evolve and desire to evolve is showing. For quite some time now (no more than several years) Microsoft has seen some of its margins declining and it thought about transitioning to other sectors, including chip production. It seems like Microsoft has just been dealt a blow by the FCC, which turns to some other suppliers after Microsoft's repeated technical failures.

An early prototype built by Microsoft failed to operate in the FCC's lab. Microsoft later determined the device was broken.

The FCC is now testing other prototypes built by Philips and Motorola as well as Silicon Valley startup Adaptrum and Singapore-based Institute for Infocomm Research.

The Motorola device connects to a database of TV stations operating within 125 miles and scans the airwaves nearly every second for other signals that may pop up unexpectedly, such as a wireless microphone.


Music players is another niche that made Microsoft envious, particularly because these player soon evolved to become phones and portable computers.

Even Microsoft's biggest of fans are outraged by their lies and inability to penetrate the portable music players business (dominated primarily by Apple at the moment).

We didn’t want to post MSZuneFan’s “last video” because of the hard language but we’re more than happy to report it now has been removed from YouTube.


There are some more details here.

You've probably heard by now that the infamous Zune Guy ("Microsoft Zune") was so disappointed with Microsoft that he's elected to have his ink removed in place of something more in line with his shifted priorities. In addition to the reconstructive work he's going to have, ZG claims that Microsoft actually lied to him about his free trip to the Redmond campus, which (as you might imagine) further tarnishes his image of the company. Unfortunately, according to reps from Microsoft we spoke with, the trip was never confirmed -- only discussed -- and ultimately canceled due to the very reasonable fear that it might lead a lot of "hyper-engaged users" to expect a trip of their own (though they did hook our man up with a free Zune and some related swag).


For those who have not kept track of the lifetime (or deathwatch) of the Zune, here are some articles of interest:



Losing Cuba



Losing business at an enterprise level is far from the same thing as losing an entire nation. Cuba's plan seems to be on track.

At a technology conference in February last year, the Cuban government declared its intention to rid itself of Microsoft software in favor of open-source alternatives. According to an Associated Press report, Communications Minister Ramiro Valdes, who opened the conference, suggested that Microsoft was cooperating with U.S. military and intelligence authorities, and he proclaimed that IT is a battlefield on which Cuba is fighting imperialism.


More on Free software and Cuba:



In summary, things are changing fast. One just needs to look closely.

Recent Techrights' Posts

The Free Software Foundation (FSF) is Being Attacked by Organisations Jealous of Its Principled Stance and Longevity
Nobody is perfect, but imperfection does not instantaneously imply sinister intent
Many Microsoft "Assets" Are Fabricated Baloney (to Game the Numbers)
At times it seems like what we deal with are many weak patents (on algorithms), valuations or speculations based on hype ("hey hi"), and stocks held by Microsoft and its own staff
"Internal Changes at Red Hat / IBM"
It seems like quite a few people are leaving
Confirmed in French Media: Mass Layoffs (10% Culled) in Microsoft France
Now some reports in French
Microsoft in Freefall in Finland
Can Finland eradicate Windows from all its infrastructure, including core operations that are sensitive to sabotage by cracking?
Google's Chrome Passes 70% and Web Standards Are Dying
The Web is quickly becoming devoid of any standards
Slopwatch: Plagiarism and Ponzi Scheme, Bubble About to Burst Entirely, Admits Goldman Sachs
the hype that Google News and The Register MS actively participate and profit from
The Register MS Says "AI Web Crawlers Are Destroying Websites", So Why Does The Register MS Help 'AI' Companies? (Spoiler: Money)
People need to call out The Register MS on its hypocrisy
Slopfarms Already Peaked, They Will Die When Slop Companies Run Out of Money to Borrow
slopfarms will lack an actual "engine"
 
Preparations for Our 19th Anniversary Have Already Begun
When we get back we'll probably sort out some balloons and venue for the next party
Pleased After 2 Years With team.blue
Moving from a Content Management System (CMS, dynamic) to a Static Site Generator (SSG) was a wise decision that made life so much easier
If You Reject the Google Verdict in the US, Then You Should Also Reject the "Modern" Web (Do Something About It)
Gemini Protocol is still open; it cannot be hijacked or subverted because it's frozen by design and by intention
Open Source Initiative IRS Filing: Almost All the Money is Corporate, Stefano Maffuli (Executive Director) Takes About a Quarter of That Money for Openwashing of "AI" Ponzi Scheme
OSI is currently little but a PR/marketing agency of Microsoft
Many People Are "Leaving" Red Hat, Even High-Level Managers
Something is definitely going on at Red Hat
Techrights Has Been Subjected to Calls of Violence (and Death Threats), It Never Condoned Violence
I have no sympathy for people who call violence "free speech" and then get in trouble
Condoning Violent Behaviour and "Free Speech"
perhaps Microsoft Lunduke lost touch with what constitutes violence
Takeaway From the Google Verdict: GAFAM Has Too Much Control (Even Over the US Government and Courts With Government Appointees)
Many people feel disappointed but hardly surprised by the verdict
The Free Software Foundation (FSF) Turns 40 in One Month
As noted a few days ago, several times in fact, many people now recognise the importance of the FSF's mission, even if most people don't know what the FSF is
"Voluntary" Layoffs at Microsoft (to Game the Numbers, Sugar-Coating a Crisis)
"Employees interested have until the end of October to volunteer."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, September 02, 2025
IRC logs for Tuesday, September 02, 2025
Links 02/09/2025: Oligarch Tech and Text Encoding Concerns in Ada
Links for the day
"People on LinkedIn Saying That They've Left Red Hat."
We already saw signs of it a month ago and named some of the people
Gone With the BRICs (or BRICS): "Linux 8" in Cuba
GAFAM must be worried
Telecompaper Reports Microsoft to Reduce the Workforce by Another 10% (in France)
Imagine what this will do to staff's morale
India is Back to Windows 8 (Market Share Down to 8%) as Android Soars to a New Record High
For Microsoft, India is a runaway market
Links 02/09/2025: SCO Summit and Russia Suspected Of Jamming GPS
Links for the day
Gemini Links 02/09/2025: Mediterranean Marriage and Staying Connected at 35,000 Feet
Links for the day
Links 02/09/2025: Attacks on Unions, Microsoft TCO, and DDoSing a Growing Problem
Links for the day
Why We Publish Information About the SLAPPs (But Not About the Legal Process), an Abuse of Process by Americans Trying to Silence Critics of Their Employer, Microsoft
It doesn't take thousands of pages to explain something simple
Internet Relay Chat Didn't Fall Off a Cliff
IRC will turn 40 in less than 3 years from now
The UEFI 9/11 - Part V - This is Not a Drill (Disable "SecureBoot" Now)
A "9/11" Coming
There's No Obligation to Speak to Anybody
The very fact that "bkuhn" is till spending time in social control media says a lot about his poor judgment
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, September 01, 2025
IRC logs for Monday, September 01, 2025
Microsoft Trying to Force People to Resign (Amid Mass Layoffs) a Strategy That Takes Its Toll
Microsoft seems to be circling down the drain and the "final flush" will be the moment the "hey hi" (AI) bubble implodes completely
Google Simply Cannot Be Trusted
Only fools would trust GAFAM
Admission That a Third Party (or Parties) Funds the SLAPPs Against Techrights
This can end up costing them over a million dollars
Modifying and Writing One's Own Computer Programs is Not a Crime (or: Google Proves That Stallman Was Right)
We're generally gratified to see so many positive mentions of him
Why We Stopped Publishing Videos (for Now)
We'll probably get back to videos one day, but it's hard to say when or to what extent
What Animal Rights Activism Teaches Us About Sympathy and Focus
It's possible to believe that the planet is warming, that we must do something about it, and still eat eggs and butter
When You Turn Web Sites About Tech Into Political Sites
A lot of people fall into the trap of catering only for particular groups
Gemini Links 02/09/2025: ROOPHLOCH 2025 and Lagrange 1.19 Released
Links for the day
Gemini Links 01/09/2025: News Corp. WSJ and A Month With NixOS
Links for the day
“Sideloading” Never Killed Anybody
There are many online discussions this week about the misnomer "sideloading"
Slopwatch: Google News as FUD Vector Against Linux and Plagiarism Enhancer, Serial Slopper (SS) Uses LLMs to Googlebomb "Linux"
Slop destroys the Web not just by screwing with search engines and helping plagiarists. It's also responsible for de facto DDoS attacks...
Links 01/09/2025: "Attacks on Science" and China's "Soft Power" Grows
Links for the day
Links 01/09/2025: Fresh Backlash Against Slop and "Norway’s Electricity Crisis is About to Hit Britain"
Links for the day
Writing and Coding Isn't Always Enough
Last year we had to assume a role we didn't have before: litigants
Links 01/09/2025: Catching Up (Mostly via Deutsche Welle), "Windows TCO" Effect in UK
Links for the day
Gemini Links 01/09/2025: Linguistic Barriers and "Web 1.0 Hosting"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 31, 2025
IRC logs for Sunday, August 31, 2025
Autumn Has Come
Autumn should be exciting in all sorts of ways; it'll also mark our anniversary
The UEFI 9/11 - Part IV - External Interference
They all seem to be playing a role in crushing Software Freedom and self-determination for users