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Posted in Finance, GNU/Linux, Microsoft at 4:32 pm by Roy Schestowitz
Summary: Serious disaster unleashed in Redmond today as net earnings drop by a
third
AS ALWAYS, Microsoft is using its people in the press to hide the severity of
this, but bloggers are not as stupid and obedient as Microsoft needs them to
be. GNU/Linux has cracked Microsoft's margins and it shows. In the first
quarter, Ars Technica wrote: “Client software felt the slump in PC sales, and
was further harmed by the shift to netbooks; many of these run Linux, which
helps Microsoft not at all.” CRN wrote: “Microsoft, like much of the IT
industry, was caught off-guard by the rapid rise of the netbook category, but
moved quickly to offer a netbook-specific version of XP Home to stem the tide
of Linux on netbooks.”
- From the Microsoft-sympathetic press arrives mostly spin that excuses revenue
drops.
With such a sharp dive in profit, Microsoft may find it hard to justify keeping
the current size of its workforce. Rumours of further layoffs [1, 2] which
Microsoft did not deny make more sense now, but the market closed shortly
after these results were published, so it may take a day (or a few) to find
out what Microsoft will do next. █
[reposted]
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