Vista hurting MS's earnings!

  • Thread starter Thread starter Mick Murphy
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Mick Murphy

http://www.australianit.news.com.au/story/0,24897,23596772-15306,00.html

Mr Liddell also said that the current quarter will also give Microsoft a
good reading on whether businesses are moving to Windows Vista. Vista was a
key factor behind Microsoft's lower earnings for the quarter. In the third
quarter of last year, the company got a boost from the recognition of
deferred revenue associated with Vista, which started selling broadly early
last year.

For the current period, the company said it expects earnings in a range of
45 cents a share to 48 cents a share, compared with analysts' average
estimate of 48 cents a share, according to Thomson Reuters. It put revenue at
$US15.5 billion to $US15.8 billion, compared with an average analyst estimate
of $US15.6 billion.

The third quarter was notable for shortcomings at the divisions that oversee
Windows for PCs and the Office suite of software programs. Those two
divisions have been reliable growth drivers for decades. But programs that
boosted revenue at the divisions in the third quarter of last year meant
falls in revenue and profit at both divisions.

The client division - which houses Windows Vista - saw revenue drop 24 per
cent to $US4.03 billion from the year-earlier period, and operating income
fall 26 per cent to $US3.1 billion. The business division, which houses
Office, saw an 8 per cent drop in operating income, to $US3.13 billion.
Revenue at that division dipped 2 per cent to $US4.75 billion in the quarter.
 
When Vista has been out for more than a few months, and the new patch count
drops below an undisclosed number, then you can expect business to think
about it. Perhaps it will be passed up in favor of a later Win version now
available.
As far as I know, a heck of a lot of businesses are still sticking/stuck on
win 2K. The IT people were not happy with XP, and were quite vocal about it.
The feedback from them on Vista seems to be reluctant acceptance only if the
Aero features are not enabled. Another issue seems to be that the changes in
some Office 2007 apps are a bit much for the average business user, and
create a learning curve issue that decreases productivity and increases
cost.
 
Especially with Windows 7 looming on the horizon, and bad reports about Vista.

Where I am, Banks have upgraded to XP only within the last 3 years; no vista
customers there.
The Govt Education Depts here are staying with XP; the list goes on!
 
Mick said:
http://www.australianit.news.com.au/story/0,24897,23596772-15306,00.html

Mr Liddell also said that the current quarter will also give Microsoft a
good reading on whether businesses are moving to Windows Vista. Vista was a
key factor behind Microsoft's lower earnings for the quarter. In the third
quarter of last year, the company got a boost from the recognition of
deferred revenue associated with Vista, which started selling broadly early
last year.

For the current period, the company said it expects earnings in a range of
45 cents a share to 48 cents a share, compared with analysts' average
estimate of 48 cents a share, according to Thomson Reuters. It put revenue at
$US15.5 billion to $US15.8 billion, compared with an average analyst estimate
of $US15.6 billion.

The third quarter was notable for shortcomings at the divisions that oversee
Windows for PCs and the Office suite of software programs. Those two
divisions have been reliable growth drivers for decades. But programs that
boosted revenue at the divisions in the third quarter of last year meant
falls in revenue and profit at both divisions.

The client division - which houses Windows Vista - saw revenue drop 24 per
cent to $US4.03 billion from the year-earlier period, and operating income
fall 26 per cent to $US3.1 billion. The business division, which houses
Office, saw an 8 per cent drop in operating income, to $US3.13 billion.
Revenue at that division dipped 2 per cent to $US4.75 billion in the quarter.
Click to expand...

Mick,

I like the articles you have been posting. Thanks!

--
"Fair use is not merely a nice concept--it is a federal law based on
free speech rights under the First Amendment and is a cornerstone of the
creativity and innovation that is a hallmark of this country. Consumer
rights in the digital age are not frivolous."
- Maura Corbett
 
When Vista has been out for more than a few months, and the new patch
count drops below an undisclosed number, then you can expect business to
think about it. Perhaps it will be passed up in favor of a later Win
version now available.
As far as I know, a heck of a lot of businesses are still sticking/stuck
on win 2K. The IT people were not happy with XP, and were quite vocal
about it. The feedback from them on Vista seems to be reluctant
acceptance only if the Aero features are not enabled. Another issue
seems to be that the changes in some Office 2007 apps are a bit much for
the average business user, and create a learning curve issue that
decreases productivity and increases cost.
Click to expand...

Business wants longer life cycles, and so do people. You no sooner get
an OS like XP stable, or an application server at work running smooth,
lots of stuff works with it and now it is time to dump it? That is the
users and business view.

Microsoft's view is simple, we want billions more so everyone has to
repurchase the OS and MS-Office every 3 years. Lots of $$$ in the
coffers. The consumers will rebel over this.

People rightfully look at PCs like cars. 1/2 way through it's usable
lifetime, maybe give it a new set of tires. But to spend $600 on a OS/MS-
Office like Vista for a $500 PC makes no sense. Prices of Microsoft
components have not followed the industry costs curves. Microsoft is now
the single biggest cost of the PC for MS-shops/businesses.

Then the aggravation of getting a MS-Office 2007 xml doc you can't open
makes you feel extorted into an upgrade. There is no backward
portability, no MS standard is stable enough for this not to be a major
problem.

Like it or not, Microsoft had better send this to the marketing think
tank and come up with a better model where it is win-win as opposed to
win-lose. And sustainability needs to be added to revenue even if it
hurts to look at the numbers. Microsoft's market elasticity has reached
it's peek and then some.
 
Canuck57 said:
Business wants longer life cycles, and so do people. You no sooner get
an OS like XP stable, or an application server at work running smooth,
lots of stuff works with it and now it is time to dump it? That is the
users and business view.

Microsoft's view is simple, we want billions more so everyone has to
repurchase the OS and MS-Office every 3 years. Lots of $$$ in the
coffers. The consumers will rebel over this.

People rightfully look at PCs like cars. 1/2 way through it's usable
lifetime, maybe give it a new set of tires. But to spend $600 on a OS/MS-
Office like Vista for a $500 PC makes no sense. Prices of Microsoft
components have not followed the industry costs curves. Microsoft is now
the single biggest cost of the PC for MS-shops/businesses.

Then the aggravation of getting a MS-Office 2007 xml doc you can't open
makes you feel extorted into an upgrade. There is no backward
portability, no MS standard is stable enough for this not to be a major
problem.

Like it or not, Microsoft had better send this to the marketing think
tank and come up with a better model where it is win-win as opposed to
win-lose. And sustainability needs to be added to revenue even if it
hurts to look at the numbers. Microsoft's market elasticity has reached
it's peek and then some.
Click to expand...
When you get a job...lets us know...and then we will take you're drivel
just a little more seriously. Till then...hahahaha...LOL!
Frank
 
Mick Murphy said:
You are welcome!
If I find them, and they are the truth, I'll post them!
Click to expand...

You need to show some of the dopes around here. Some of them do not realise
that Vista has been a failure, and they are not are not discerning enough to
realise why.

ss.
 
Synapse said:
You need to show some of the dopes around here. Some of them do not realise
that Vista has been a failure, and they are not are not discerning enough to
realise why.

ss.
Click to expand...

That a rather stupid statement ss. Tell us all how Vista can be declared
a failure when millions are successfully using it in both home and business.
Or do you just consider anyone who is using it to be a "dope"? Or is it
that you simply can't figure out how to successfully install, configure
and run Vista huh?
Got a real answer or just wanna play?
Frank
 
That a rather stupid statement ss. Tell us all how Vista can be declared
a failure when millions are successfully using it in both home and business.
Click to expand...

Frank's idea of a success: Vista out over a year, 86% of the install
base of all versions of Windows have NOT upgraded to Vista. Sure
Frank, that's a run away success alright. You keep humming that tune
you silly old fool.
 
Frank said:
That a rather stupid statement ss. Tell us all how Vista can be declared
a failure when millions are successfully using it in both home and
business.
Frank
Click to expand...

They aren't using it; they're cursing it and wondering how to go back to
XP or what in the world is this Ubuntu everyone is talking about.

Alias
 
Alias said:
They aren't using it; they're cursing it and wondering how to go back to
XP or what in the world is this Ubuntu everyone is talking about.

Alias
Click to expand...

hehehehe...in your dreams sheep-fukker. Hey you and aa should get a
room...LOL!
Frank
 
They aren't using it; they're cursing it and wondering how to go back to
XP or what in the world is this Ubuntu everyone is talking about.

Alias
Click to expand...

I am with you on this. MS brags about it's monopolistic sales, but lets
hear the break down. How about the off shelf sales? XP was 50% higher
than anticipated, which tells me a whole lot of Vista users went out and
bought XP, they felt strong enough to get double dipped.

Me, I curse Vista. MS better bring back XP or die. I don't want a major
OS change every 3 years, too much hell. But for me, probably too late, I
am Ubuntu and liking it. The UI is neet. Just love that Windows-Tab key
combo.
 
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