07.20.09

Signs of Microsoft on the Decline (Roundup)

Posted in Finance, Google, Microsoft at 9:55 am by Dr. Roy Schestowitz

Advanced pie

Summary: More news about Microsoft’s situation amid declining margins, increased spendings in some units, and pressure from Google/SaaS and GNU/Linux

YESTERDAY WE wrote about Microsoft's expected sharp decline in profit. It turns out that not only profit declines but revenue does too (these two yardsticks can go in separate directions). According to this report from Romania:

Microsoft Romania, the local subsidiary of world’s biggest software producer would end the fiscal 2009 (July 1 2008 – July 3 2009) with a 10-15% decline in revenues, thus missing the growth estimates made at the end of last year by 1 to 4%, stated Calin Tatomir, the company’s chief executive.

Microsoft’s revenue also declined in the last quarter. It was claimed to be a first-ever, but as past stories suggest, this may not be true. Expectation is that Microsoft’s profit erosion will be sharp, so IDG has just published an opinion piece titled: “Seven Reasons Microsoft’s Profits are Tanking”

To give one reason:

* Bing: Microsoft’s latest search engine effort will cost in the ballpark of $100 million to market, and that doesn’t include development costs either. Is Redmond tilting at windmills here, or does Bing really have a shot at challenging mighty Google for search dollars? Whatever the case, Bing is one expensive gamble.

It is not just Microsoft’s finances that are declining. Microsoft’s public image too is suffering. Consider for example the following new reports:

i. Microsoft Customer Satisfaction Plummets in VendorRate Q2 Report

VendorRate, the only Web-based business information service that offers quick, confidential performance ratings and comparisons of technology vendors, announced today that customer satisfaction scores for Microsoft plunged dramatically in the second quarter of 2009 while IBM Informix and telecom equipment maker ShoreTel earned the top scores in the quarter.

ii. Survey: Microsoft customer satisfaction takes second quarter hit

Customer satisfaction for Microsoft’s applications and operating systems took a hit in the second quarter, according to a report by VendorRate, an outfit that tracks vendor satisfaction.

iii. Startups give Google thumbs-up over Microsoft

Analysts and executives say Google, which unveiled the Chrome this week in a direct challenge to Microsoft’s decades-old dominance of computer operating systems and business applications, will take years to get significant share of the market, but startups might be their way in.

A growing number of tech entrepreneurs argue that Microsoft’s current software is out of date and inefficient because, unlike applications that run off the Web in a “cloud” environment, they run one copy per person at a time, rather than allowing multiple users to share information.

So how can Microsoft defeat Google? Well, Joe Wilcox is back after Microsoft Watch closed. Writing for BetaNews, he gives Microsoft advice not on how to improve Microsoft products but on how to FUD rivals.

Microsoft should use Twitter data theft as hosted apps marketing FUD

[...]

Microsoft talks about the “Apple Tax,” but I’ve heard plenty of IT managers complain about the “Microsoft Tax” in reference to Software Assurance fees or CALs (client-access licenses). They see that off-premise hosting can cost loads less per employee, provide immediate software and feature upgrades and reduce management costs. It’s to these businesses considering hosted services — and not from Microsoft or one of its partners — that the Twitter/Google Apps data breach could be used as effective counter marketing. Microsoft sales people can spin the story to emphasize the importance of on-premise software and to call out new security features coming in Windows 7.

The explanation may seem reasonable, but the headline shows sheer bias and intent to FUD as a business strategy.

“I’m a huge fan of guerrilla marketing.”

Joe Wilcox, Microsoft Watch

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

This post is also available in Gemini over at:

gemini://gemini.techrights.org/2009/07/20/microsoft-decline-2009/

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. [Meme] Outsourcing Audacity Development to Microsoft Proprietary Software and Then Copying Microsoft Tactics (and 'Telemetry')

    They've had the audacity to call it "telemetry" and pretend that surveillance companies (spying giants) cannot figure out who you are based on IP addresses



  2. Links 7/5/2021: IPFire 2.25 Core Update 156 and Diffoscope 174 Released

    Links for the day



  3. The New Microsoft? No, the New IBM.

    Microsoft GitHub and IBM: a strategic alliance between a monopolistic duo



  4. The Audacity Takeover by Muse Group is No Cause for Celebration

    Audacity is now part of an entity called Muse Group and if it doesn’t take or suck freedom out of Audacity, it will certainly deny users rather basic concepts (or anticipation) of privacy



  5. King of Linux

    If the entire operating system is being called "Linux", then we fall for a publicity or misattribution stunt



  6. The Biggest Troll is the Linux Foundation, Still Looking to Provoke and Defame Free Software Communities in Order to Help a Monopolistic Takeover and to Shoehorn Tyrants Into Leadership Positions

    Contrary to what the so-called ‘Linux’ Foundation is trying to say, the most toxic element is itself; it’s maligning the real community while protecting abusive and racist corporations that profit from war and tribalism-motivated hatred



  7. IRC Proceedings: Thursday, May 06, 2021

    IRC logs for Thursday, May 06, 2021



  8. “The Lolita Express” and Prince Bill

    “The Lolita Express” scandals return to haunt pool old Bill, as it turns out his wife was upset and it's quite likely the reason for their divorce



  9. Links 7/5/2021: GNU/Linux Preinstalled, Plamo 7.3, LibreOffice 7.1.3

    Links for the day



  10. The Latest Reports About Bill Gates Serve to Confirm or at Least Reaffirm Many People's Suspicions

    So, just as many people suspected, Melinda Gates did not appreciate her husband sneaking behind her back to meet someone who had trafficked thousands of underage girls for sexual exploitation and there are high-profile calls right now for greater transparency, seeing the impact on the world’s biggest tax evasion vehicle



  11. Disregard Web Sites That Call Themselves 'News' and Instead Promote Proprietary Software for Companies Like Microsoft

    Publishers like IDG have long been paid-for marketing in ‘article’ clothing, sometimes with the veneer of ‘reporting’ (as if they have some inside knowledge or insight, e.g. speaking with or for the company they secretly coordinate with or market for); but sadly we’ve been seeing some so-called ‘Linux’ sites doing the same thing, in effect acting like de facto Microsoft marketers



  12. [Meme] Who Needs Examination Anyway When There's 'Hey Hi' (AI)?

    The patent production line could do away with 'pesky' and 'opinionated' examiners who actually wish to scrutinise alleged 'inventions'



  13. Europe's Second-Largest Institution Corrupting the Media and Buying Expensive Puff Pieces

    As annual reports reveal, the EPO wastes an extraordinary amount of money on reputation laundering campaigns and it pollutes the signal by paying publishers; we examine this issue using the new 'reports' shown in the video above



  14. Links 6/5/2021: Fedora’s Compiler Policy and Celemony Software GmbH Adopting Free Software

    Links for the day



  15. Free Software Proponents Don't Fall for Bullshit (Same is True for EPO Examiners)

    There are parallels between what happens in the Free Software Movement and the EPO, where well-meaning people — and usually hard-working scientists — are besieged by people who never really contributed anything to society



  16. IRC Proceedings: Wednesday, May 05, 2021

    IRC logs for Wednesday, May 05, 2021



  17. Lessons From Another Failed Coup Against the Free Software Movement

    The coup has very clearly failed and we should prepare for future attempts (they go in cycles); the monopolies really dislike software they cannot control fully (e.g. copyleft/GPL-licensed software)



  18. Links 5/5/2021: Mesa 21.1 Released and New Releases of Python

    Links for the day



  19. Links 5/5/2021: StarLabs, GNU Zile 2.6.2, Fedora i3 Spin

    Links for the day



  20. Phony 'Scandals' From Phony 'News' Site ZDNet

    Steven J. Vaughan-Nichols continues the coup against the FSF (trying to separate it from its founder, Richard Stallman), funded by IBM and Microsoft to engage in libel at a marketing company-owned ‘news’ site called ZDNet



  21. Links 5/5/2021: Windows Security Breaches and GNU Pokology Launched

    Links for the day



  22. IRC Proceedings: Tuesday, May 04, 2021

    IRC logs for Tuesday, May 04, 2021



  23. Links 4/5/2021: Taiwins 0.3, KDE Plasma 5.21.5 Released

    Links for the day



  24. EPO Already Wasting Money on Media Manipulation Campaigns for European Inventor Award

    An online-only European Inventor Award 'event' is being used as a pretext/excuse to flood European publishers with money they can rightly perceive as 'hush money'; everyone out there with no spine would likely buckle at the sight of EPO euros and just produce mindless puff pieces that serve to distract from EPO corruption



  25. The Timing of This Melinda Gates Tweet Was Always Curious...

    Remarking on her trip to Africa, where the Gates family lobbies for monopolies on seeds (for profit or course, notably through Monsanto/Bayer, which the Gates family heavily invests in), she posted pure fluff and old photos. And it’s hard to believe she had nothing better to do at the time (better than such nostalgia). As we noted last year: “The above tweet of a beach was posted [by Melinda Gates] on the date of the arrest/search of their employee, who was at their residence at the time.” He was arrested around the very same time this tweet was posted. As we wrote last year (based on detailed documents obtained from the police department): “This tweet was posted 2 hours and 40 minutes after the door was breached and incriminating evidence collected.” He was arrested later that morning at the mansion of Bill and Melinda Gates (the police records contain detailed timelines to confirm the chronology). Melinda’s first name was also in the CP 'stash'.



  26. Media Frenzy Around Gates Divorce Helps Distract From Bill's Crimes

    The distraction from many Gates scandals is cushioned by yet another personal fluff; we would rather see investigative journalism pursuing real answers about real scandals



  27. IRC Proceedings: Monday, May 03, 2021

    IRC logs for Monday, May 03, 2021



  28. EPO Disregards Animal Welfare

    An often overlooked issue surrounding the second-largest institution in Europe is its impact on millions if not billions of animals; there's ongoing research into that



  29. Links 3/5/2021: Sparky 5.15, Bill Gates Divorce, Netflix Fraud

    Links for the day



  30. Links 3/5/2021: New in OpenBSD 6.9 and Audacity Acquired By Muse Group

    Links for the day


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

Recent Posts