On Fri, 28 Apr 2006 09:59:22 +0100, Roy Schestowitz wrote:
> Microsoft earnings slip below targets
> ,----[ Quote ]
>| update Microsoft on Thursday reported third-quarter sales and earnings
>| that were below what some analysts were expecting and said future earnings
>| will be dented as it aims to boost its Windows Live Internet services and
>| other new businesses.
I think there are a lot of factors here. First, Microsoft is at the end of
a product cycle, and there are lots of new products on the horizon that
users may be waiting for. All of Microsoft's marketing is focused on
what's coming later this year, rather than what they have today. This,
naturally will lead many users to wait on purchases, fearing their existing
systems will need to be upgraded. Products include, Windows Vista, Office
2007, Sharepoint 2007, and a raft of other products.
Second, PC's are just too powerful. Users used to upgrade because their
old machines were too slow to do the job, but now any PC from the last 2 or
3 years is still plenty powerful for just about any task you can throw at
it, other than high end gaming and number crunching. This means fewer
people are replacing their 2 or 3 year old computer, because it does
everything they need it to.
Third, Only three major products were released in the last year. Windows
2003 R2, Visual Studio, and SQL Server. 2003 R2 is really more like an
"Option Pack" and Visual Studio/SQL Server haven't yet had time for
evaluation and purchase to really make a dent in their financial picture.
Hell, the 180 day trials haven't even expired yet.
Fourth, Yes, Linux has likely had a major impact. A lot of companies are
likely evaluating if Linux could replace Windows. I personally don't
believe many find Linux suitable (yet), but any major company will likely
do due dilligence.