Bonum Certa Men Certa

GNU/Linux and Free Software Shave Microsoft's Margins

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.

Recent Techrights' Posts

[Video] To Combat Efforts to Cancel or Kill the Career (and Reputation) of the People Who Made GNU/Linux We Must Rally the Community
nobody speaks better for projects and for licences than their own founders
Electronic Frontier Foundation Incorporated is Run by/for Corporations Now (Members' Money is Less Than a Quarter of the Money EFF Receives)
Facebook bribes
 
Links 09/12/2023: Dictator's Nomination in Russia
Links for the day
The EFF Should Know Better, But It Is Promoting Mass Surveillance by Facebook (an Endorsement of Lies)
What is going on at the EFF?
Feedback Desired
Feedback can be sent by E-mail
A Message in Support of Richard Stallman, Condemning Those Who Misportray Him
message about Richard Stallman (RMS)
Links 09/12/2023: Many 'Open'AI Employees Strongly Dislike Microsoft, Many Impending Strikes
Links for the day
IRC Proceedings: Friday, December 08, 2023
IRC logs for Friday, December 08, 2023
Over at Tux Machines...
GNU/Linux news
Open Source Initiative (OSI) is Microsoft, It Presents Microsoft-Controlled Projects Like They're Everything That Exists in the World
They're not assessing the real data, they keep track only of projects foolish enough to choose slavery under Microsoft
Links 08/12/2023: Cyber Resilience Act in EU and Denmark Embracing 'Blasphemy Law'
Links for the day
Linus Torvalds Cannot Easily 'Offend' Companies Anymore, But Weeks Ago He Explained Why (Linux Support and Hardware Documentation Has Significantly Improved)
new clip
Links 08/12/2023: Tidal and Simplilearn Layoffs
Links for the day
IRC Proceedings: Thursday, December 07, 2023
IRC logs for Thursday, December 07, 2023
[Video] The Media Facilitates Microsoft's Abuse, Bribes, and Growing Threats to National Security
The failure of the media to properly and independently explain what's happening will continue to doom the media
[Video] The Next Ten Years of Techrights in a World With Changing Threats and Technological Landscapes (or Trends That Are Buzzwords/Cargo Cults)
The video of today talks about the site's (and capsule's plan) for the future
Wikipedia is Vandalism, Brought to You by Microsoft and Bill Gates
Reprinted with permission from Ryan Farmer
Lennart Poettering and Fellow Microsofters Turn GNU/Linux Into Windows, Expect Poor Reliability With systemd-bsod
turning Linux into Microsoft Windows
The Effort to Silence (Squash) GNU/Linux Advocates and Press Coverage
If nobody even mentions it anymore, does it still exist?
Links 07/12/2023: Climate Events Occupied by Their Enemy, Workers Going on Strike
Links for the day
IRC Proceedings: Wednesday, December 06, 2023
IRC logs for Wednesday, December 06, 2023
A Googlebombing Campaign Targeting "Gemini" Takes on E-mail, Too
Google can do Googlebombing too (the term is even named after it)
[Video] Microsoft Without a So-called 'Common Carrier' (Windows Monoculture)
Windows Has Fallen
Rumour: Major Finance Layoffs at Microsoft Next Week
If the rumour is true, we'll be hearing barely anything from the mainstream media next week
Links 07/12/2023: More EPO Patents Squashed, More Pfizer COVID-19 Vaccine "Glitches" Found
Links for the day
Still Not 'Canceled'
Ted Ts'o, Jan Kara, Linus Torvalds last month
Google is Googlebombing the Term "Gemini"
Could Google not pick a name that's already "taken"?