Friday, 20 July 2012

Microsoft posts its first loss this quarter.

The Microsoft dinosaur is staggering! The failure in this quarter shows that MS are vulnerable. They are in poor shape. Here are some of the reasons, there are others.

1) Desktop sales are flat at best
2) Mobile platforms are popular but MS are not a player
3) Zune and then WinPho7 shows that the market rejects Metro, yet the company is betting the farm on Metro on its forthcoming mobile devices
4) Win8 is putting Metro on Desktops, which will earn MS more scorn and ridicule than Vista
5) It's Surface vapourware announcement is irritating its partners.
6) MS partnered with Sendo, Danger and Nokia and has destroyed those companies (Nokia dying fast). Other partners will trust MS even less than usual.
7) Linux desktop is free, and it's good (much better than Metro). Linux was ridiculed by MS but it has eaten their lunch on servers, and now on mobiles (Android has a Linux kernel). Linux desktop could happen faster than MS thinks if corporations see no future in Windows, which is expensive, and only needs employers to use cloud apps or native Linux apps (which are generally free).
8) Open source software is rising fast. Clouds are mostly made from open source systems. Open source frees corporations from licence management and the risk of being sued (rightly or by mistake)
9) MS has an awful lot of enemies, many of whom are insanely powerful in their areas. Apple, Google, Oracle, Sony, Samsung, Nintendo, Amazon, IBM, Redhat, Canonical, the Open Source community
10) MS is failing at search. Bing costs them a loss of 2 billion dollars a year and even with that investment is not able to dislodge google, whose search engine is profitable.
11) MS is failing at the Cloud. Open source has won that battle (and vendors that use open source, such as Amazon).
12) MS Office has competition from Google Docs in the cloud and from Libre Office, which is now improving fast having forked from Open Office to get away from Oracle.
13) Microsoft has no vision other than to copy its competitors. Where it does innovate, it produces artefacts that are either unusuable or in poor taste (ribbon, metro)
14) Microsoft's browser has gone from 95% share to less than 40% share and is still in freefall.
15) Microsoft has lost the goodwill of developers.
16) Microsoft is turning into a patent troll, and is attacking Android and Linux organisations, acting exactly like the mafia. This garners MS ill will.
17) Microsoft is not seen as sexy, it is seen as a boring spreadsheet company.
18) Steve Balmer and Bill Gates, the least visionary leaders of tech.
19) Microsoft Office 13 previews - fugly!
20) If/when MS start to lose revenue from Office, their chief cash cow, they're doomed, all else will fall like dominoes.
Microsoft have a lot of money and will buy their way out of various problems, but money can run out rather quickly, even scores of billions ;-)

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