Larry Qualig wrote:
> Roy Schestowitz wrote:
> > Vista financial impact seen as muted
> >
> > ,----[ Quote ]
> > | ...among the Wall Street analysts who cover Microsoft, the shipping of
> > | Vista to corporate customers is being greeted with a collective yawn.
> > `----
> >
> > http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF7206449%2DECBB%2D489F%2DB38B%2D4DB9F0816B1E%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo
> > http://tinyurl.com/ydc3bx
> >
>
> Aside from you partial-sentence quote, there's some interesting info in
> that article.
>
> <quote>
> Ironically, their view holds sway even though many analysts are
> predicting that corporations will upgrade to Vista at a faster rate
> than they did to Windows XP, which Microsoft shipped in the fall of
> 2001.
> </quote>
Vista will sell faster only because there has been such a huge amount
of time since their last release.
>
> Given the current dominance of XP, it seems that Vista will eventually
> take over XP's marketshare much like XP did to Win2k only faster.
This I doubt. While initial sales will be faster, it will take longer
for Vista to take over (assuming it even does) XP market share. Many
businesses will require a compelling need before they upgrade, and
Vista has little to offer most businesses already using XP.
>
>
> <quote>
> Microsoft is also a very different company.
>
> While Windows and its Office application still supply the bulk of
> Microsoft's profits, the company gets a smaller percentage of its
> revenue from those cash cows than it did five years ago.
>
> Microsoft's entertainment and devices division, which includes its Xbox
> video game unit, didn't exist then. Its online services group, which
> includes the MSN unit, was much smaller. Together, those businesses are
> expected to contribute 18% of Microsoft's revenue for the fiscal year
> ending in June.
Hmm, start taking profits, then switch to revenue. The last time I
checked, the Xbox unit is not making any profit, so maybe the switch
was to avoid such an embarassing admission. As for MSN, it looks like
it is loosing market share, not gaining. Are you suggesting that Office
and Vista will lose market share faster than MSN in the future ?
>
> Microsoft's server and tools business is expected to tally sales of $11
> billion this fiscal year, or 22% of the consensus estimate for total
> revenue of $50.35 billion.
>
> That means four out of every 10 dollars of Microsoft's sales now come
> from products other than Windows and Office. So it's understandable
> that no one is expecting Vista to have anywhere near the impact of the
> release of Windows 95
> </quote>
Microsoft's server and business tools are dependent upon MS OS. Non-OS
related divisions of the company are often not profitable. Zune will
probably lose money, Xbox is losing money, MSN is losing market share,
and overall growth is slowing.
>
>
> So Vista's financial impact to Microsoft will be "muted" mainly because
> the company isn't as reliant on sales of the OS as it once was.
Really ? Aside from OS dependent divisions, where else is MS making
money ?
Dean G.
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