Bonum Certa Men Certa

Why the Future Looks Not Bright for Microsoft

Fields



Summary: A look back at a tough week (Vista 7, Web division)

THURSDAY was a very important day. Glyn Moody called it "A Day to Remember" and not just because of the release of Ubuntu 9.04. As we explained before [1, 2, 3], Microsoft reported a huge drop in earnings which shows, as Moody puts it, that "the Microsoft money machine is faltering." This is not particularly shocking.



And there's another reason why yesterday was significant: Microsoft announced what are probably its worst quarter results ever:

Microsoft Corp. today announced revenue of $13.65 billion for the third quarter ended March 31, 2009, a 6% decline from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $4.44 billion, $2.98 billion and $0.33 per share, which represented an increase of 3% and declines of 32% and 30%, respectively, when compared with the prior year period.

Now, the global financial crisis certainly contributed to those figures, but I think there's a bigger underlying trend here, which is that the Microsoft money machine is faltering.


The "money machine" of the leader in GNU/Linux is still getting stronger and Microsoft is compromising profit to suffocate any such competition. Microsoft is said to be offering kickbacks to OEMs that stock/deliver sub-notebooks. It's Microsoft's biggest pain at the moment. Even the Microsoft/Redmond press points at GNU/Linux sub-notebooks as Microsoft's trouble. It wrote about it in a couple of its online magazines.

Vista 7 will hardly be a remedy or a relief for Microsoft/Windows in sub-notebooks. SJVN has just put it to the test and wrote a review where he explains the limitations even with the most expensive version (sub-notebooks will come saddled with a crippled version).

Performance wasn't the only problem I came across. For example, I was unable to perform two network-related tasks at once. For example, if I copied a file from a network server or watched a YouTube video, life was fine. But if I tried to do both things at once, I ended up with a frozen system.

[...]

I experienced several difficulties running popular applications on the Dell Mini 9. Windows 7's built-in applications, such as Media Center, felt slow to respond. Other apps behaved sluggishly as well. For example, Microsoft Word 2003 took 27 seconds to launch on the Mini 9; it took only 11 seconds on the HP EliteBook 2530p.

Some problems, such as abrupt slowdowns when trying to run Microsoft Office 2003, Office 2007 and Quicken 2008, were clearly caused by memory problems. There simply wasn't enough RAM to run them effectively. When I tried to run two or more major applications at the same time, the performance dropped from merely miserable to "Is this thing still on?"

[...]

If you must have Windows on a netbook, XP Home SP3 is still the better choice over Windows 7 -- at least, for now. And, even though Microsoft is doing its best to kill off XP, it looks like the PC makers aren't going to let Microsoft put XP out to pasture after all.


This pretty much confirms issues that we knew about [1, 2]. Vista's problems are merely inherited by its successor, so application/driver compatibility too is a major problem.

There is other bad news for Microsoft's emerging division: Microsoft’s Online Advertising Revenue Drops 16%, Time to Give Up?

Perhaps even more significant is the 16% decline in online advertising revenue (just $521 million) with its overall online services posting a loss of $575 million.


It was only recently that Digg dumped Microsoft. For Microsoft to survive the future, it is aware that it must grow on the Web, not just the desktop. Steve Ballmer has just spoken about this in Köln. But it's still going in reverse; people prefer WIndows XP (from 2001) and they continue to flock to search engines like Google at the expense of Microsoft's online presence. Remember Encarta?

Comments

Recent Techrights' Posts

A Week After a Worldwide Windows Outage Microsoft is 'Bricking' Windows All On Its Own, Cannot Blame Others Anymore
A look back at a week of lousy press coverage, Microsoft deceit, and lessons to be learned
 
Links 26/07/2024: Hamburgerization of Sushi and GNU/Linux Primer
Links for the day
Links 26/07/2024: Tesco Cutbacks and Fake Patent Courts
Links for the day
Links 26/07/2024: Grimy Residue of the 'AI' Bubble and Tensions Around Alaska
Links for the day
Gemini Links 26/07/2024: More Computers and Tilde Hosting
Links for the day
Links 26/07/2024: "AI" Hype Debunked and Elon Musk's "X" Already Spreads Political Disinformation
Links for the day
"Why you boss is insatiably horny for firing you and replacing you with software."
Ask McDonalds how this "AI" nonsense with IBM worked out for them
No Olympics
We really need to focus on real news
Nobody Holds the GNOME Foundation Accountable (Not Even IRS), It's Governed by Lawyers, Not Geeks, and Headed by a Shaman Crank
GNOME is a deeply oppressive institutions that eats its own
[Meme] The 'Modern' Web and 'Linux' Foundation Reinforcing Monopolies and Cementing centralisation
They don't care about the users and issuing a few bytes with random characters costs them next to nothing. It gives them control over billions of human beings.
'Boiling the Frog' or How Online Certificate Status Protocol (OCSP) is Being Abandoned at Short Notice by Let's Encrypt
This isn't a lack of foresight but planned obsolescence
When the LLM Bubble Implodes Completely Microsoft Will be 'Finished'
Excuses like, "it's not ready yet" or "we'll fix it" won't pass muster
"An escalator can never break: it can only become stairs"
The lesson of this story is, if you do evil things, bad things will come your way. So don't do evil things.
When Wikileaks Was Still Primarily a Wiki
less than 14 years ago the international media based its war journalism on what Wikileaks had published
The Free Software Foundation Speaks Out Against Microsoft
the problem is bigger than Microsoft and in the long run - seeing Microsoft's demise - we'll need to emphasise Software Freedom
IRC Proceedings: Thursday, July 25, 2024
IRC logs for Thursday, July 25, 2024
Over at Tux Machines...
GNU/Linux news for the past day
Links 26/07/2024: E-mail on OpenBSD and Emacs Fun
Links for the day
Links 25/07/2024: Talks of Increased Pension Age and Biden Explains Dropping Out
Links for the day
Links 25/07/2024: Paul Watson, Kernel Bug, and Taskwarrior
Links for the day
[Meme] Microsoft's "Dinobabies" Not Amused
a slur that comes from Microsoft's friends at IBM
Flashback: Microsoft Enslaves Black People (Modern Slavery) for Profit, or Even for Losses (Still Sinking in Debt Due to LLMs' Failure)
"Paid Kenyan Workers Less Than $2 Per Hour"
From Lion to Lamb: Microsoft Fell From 100% to 13% in Somalia (Lowest Since 2017)
If even one media outlet told you in 2010 that Microsoft would fall from 100% (of Web requests) to about 1 in 8 Web requests, you'd probably struggle to believe it
Microsoft Windows Became Rare in Antarctica
Antarctica's Web stats still near 0% for Windows
Links 25/07/2024: YouTube's Financial Problem (Even After Mass Layoffs), Journalists Bemoan Bogus YouTube Takedown Demands
Links for the day
Gemini Now 70 Capsules Short of 4,000 and Let's Encrypt Sinks Below 100 (Capsules) as Self-Signed Leaps to 91%
The "gopher with encryption" protocol is getting more widely used and more independent from GAFAM
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 24, 2024
IRC logs for Wednesday, July 24, 2024
Techrights Statement on YouTube
YouTube is a dying platform
[Video] Julian Assange on the Right to Know
Publishing facts is spun as "espionage" by the US government and "treason" by the Russian government, to give two notable examples
Links 25/07/2024: Tesla's 45% Profit Drop, Humble Games Employees All Laid Off
Links for the day
Gemini Links 25/07/2024: Losing Grip and collapseOS
Links for the day