NoNamer wrote:
>
> Roy Schestowitz wrote:
>> Microsoft Hides Its Mobile and Business Apps Divisions
>>
>> ,----[ Quote ]
>> | The company is folding its two worst-performing divisions -- Microsoft
>> | Business Solutions (its business applications unit) and its Mobile and
>> | Embedded units -- into the Microsoft Business Division and Microsoft
>> | Home and Entertainment units, respectively.
>> `----
>>
>>
http://www.microsoft-watch.com/article2/0,1995,1990243,00.asp?kc=MWRSS02129TX1K0000535
>
> I guess this is the Anti-MS group instead of *Linux* advocacy.
>
> Anyways, if you go to www.microsoft.com and go to investor relations,
> you will see that both the business division and mobile division have
> *dramatically* increased revenue from 2005 to 2006.
>
> The biz division lost a lot less (almost breaking even), while the
> mobile division lost a tad more. However, as a percentage of revenue,
> it's very little.
>
> Also, if you look at the history of MS and how it starts divisions,
> they *always* start with a loss on the profits side because MS invests
> heavily into people and technology to make it successful - eventually.
>
> If you are implying that somehow MS is doing worse with this article,
> you aren't reporting the facts.
>
> The facts:
>
> 1) Both of these divisions had serious *increases* in revenue, YOY.
> (And also quarterly as well)
> 2) Profits of the business division are on the move in the right
> direction.
> 3) MS invested *heavily* into Mobile 2005 this years which accounts
> for the slightly greater loss - but still very small as compared to
> actual *growing* revenue.
> 4) Both divisions just released completely revamped products which are
> being very well received in the marketplace.
>
> Thanks again Roy for another one of your 'news' pieces.
>
> The Man with No Name
I don't know what you were reading, but I didn't notice that Roy suggested
MS is doing either well or poorly. The article is about a restructure and
the article itself tells you why it is taking place.
When a company is dependant on the stock market (or the gamblers den as I
like to call it). Then 'a little loss' or 'breaking even' is less money in
the investor's pockets. There are times, when the company reports have
suggested a reasonable reason for this state of affairs, when the gamblers
den will brush it off and bide their time. But here we have one areas of MS
where the investors would quite rightly have expected a reasonable return
on their investment, the other is a very reasonable move.
They have Business Solutions Division with *no* *growth*, we know that MS
have said they are investing heavily in development on web based
applications, but others have beaten them to it, with mixed success
admittedly, MS would then be 'just another on the bandwagon'. But still, no
growth in the business sector is not good news, particularly when you take
into account the wide range of products that the Business Division
encompassed.
The Mobile Division into the home entertainments is an easily understandable
move, not a step back. Mobile and entertainment have been merging with
other companies too, some have never seen the two as seperate. The two
areas are bound to benefit from a single design structure. Restructures are
not always for negative reasons.
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