EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

04.25.09

Why the Future Looks Not Bright for Microsoft

Posted in Finance, GNU/Linux, Microsoft, Vista 7, Windows at 3:24 am by Dr. Roy Schestowitz

Fields

Summary: A look back at a tough week (Vista 7, Web division)

THURSDAY was a very important day. Glyn Moody called it “A Day to Remember” and not just because of the release of Ubuntu 9.04. As we explained before [1, 2, 3], Microsoft reported a huge drop in earnings which shows, as Moody puts it, that “the Microsoft money machine is faltering.” This is not particularly shocking.

And there’s another reason why yesterday was significant: Microsoft announced what are probably its worst quarter results ever:

Microsoft Corp. today announced revenue of $13.65 billion for the third quarter ended March 31, 2009, a 6% decline from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $4.44 billion, $2.98 billion and $0.33 per share, which represented an increase of 3% and declines of 32% and 30%, respectively, when compared with the prior year period.

Now, the global financial crisis certainly contributed to those figures, but I think there’s a bigger underlying trend here, which is that the Microsoft money machine is faltering.

The “money machine” of the leader in GNU/Linux is still getting stronger and Microsoft is compromising profit to suffocate any such competition. Microsoft is said to be offering kickbacks to OEMs that stock/deliver sub-notebooks. It’s Microsoft’s biggest pain at the moment. Even the Microsoft/Redmond press points at GNU/Linux sub-notebooks as Microsoft’s trouble. It wrote about it in a couple of its online magazines.

Vista 7 will hardly be a remedy or a relief for Microsoft/Windows in sub-notebooks. SJVN has just put it to the test and wrote a review where he explains the limitations even with the most expensive version (sub-notebooks will come saddled with a crippled version).

Performance wasn’t the only problem I came across. For example, I was unable to perform two network-related tasks at once. For example, if I copied a file from a network server or watched a YouTube video, life was fine. But if I tried to do both things at once, I ended up with a frozen system.

[...]

I experienced several difficulties running popular applications on the Dell Mini 9. Windows 7′s built-in applications, such as Media Center, felt slow to respond. Other apps behaved sluggishly as well. For example, Microsoft Word 2003 took 27 seconds to launch on the Mini 9; it took only 11 seconds on the HP EliteBook 2530p.

Some problems, such as abrupt slowdowns when trying to run Microsoft Office 2003, Office 2007 and Quicken 2008, were clearly caused by memory problems. There simply wasn’t enough RAM to run them effectively. When I tried to run two or more major applications at the same time, the performance dropped from merely miserable to “Is this thing still on?”

[...]

If you must have Windows on a netbook, XP Home SP3 is still the better choice over Windows 7 — at least, for now. And, even though Microsoft is doing its best to kill off XP, it looks like the PC makers aren’t going to let Microsoft put XP out to pasture after all.

This pretty much confirms issues that we knew about [1, 2]. Vista’s problems are merely inherited by its successor, so application/driver compatibility too is a major problem.

There is other bad news for Microsoft’s emerging division: Microsoft’s Online Advertising Revenue Drops 16%, Time to Give Up?

Perhaps even more significant is the 16% decline in online advertising revenue (just $521 million) with its overall online services posting a loss of $575 million.

It was only recently that Digg dumped Microsoft. For Microsoft to survive the future, it is aware that it must grow on the Web, not just the desktop. Steve Ballmer has just spoken about this in Köln. But it’s still going in reverse; people prefer WIndows XP (from 2001) and they continue to flock to search engines like Google at the expense of Microsoft’s online presence. Remember Encarta?

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

10 Comments

  1. twitter said,

    April 25, 2009 at 9:50 am

    Gravatar

    I can comment on how insanely desperate M$ is to shunt search traffic away from google to their own, inferior search engine and how sad the M$ experience has become. I’ve had the misfortune to use M$ Windows at work for a while now. IE’s quick search has no easy or obvious configuration, it’s just “Live Search” or use their cumbersome bookmarks. IE’s address input itself redirects you to their search engine if you make a “typo”. For example, an address like “machine_name.institution.edu” instead of “http://machine_name.institution.edu” takes you to their search. Each machine behaves differently because each has different versions of free crap on them. The new version is often a downgrade in usability and the user is left in a perpetual state of harassed confusion. It is easy to forget how bad things are in the M$ world when you live in the free world. M$ has really earned their bad reputation.

    pcolon Reply:

    If you look step back and look at current trends it seems like a microcosm of general corporate behaviour.

    In the past a company had a long term goal for success. Today they live from quarter to quarter basing their outcome on that.

    G. Michaels Reply:

    Will (aka ‘twitter’),

    By no means am I an IE expert, but since I have 7 and 8 installed here, I’ll try to help you. I assume you’re not using IE6 (good for you), since it didn’t have a search bar at all. So on IE8, you can click Tools->Internet Options->Change search defaults. There you can select Google, Yahoo or any other search engine. There’s even a link at the bottom that takes you to a page with a bunch of other “search providers”, like Amazon, eBay, Wikipedia, etc. Once you select your search provider, if you type something into the address bar that isn’t a URL, it will perform a search on that provider, not on Live search. Also, it will be the default in the search bar, although it does have a nifty dropdown where you can override it temporarily. This is a bit nicer than Firefox in a way, although Firefox does give you a menu item in the search provider dropdown so it’s easier to get to the configuration dialog.

    Also, that new “accelerator” thing IE has (which is also in a way nicer than Firefox) will respect your choice of search provider.

    I also noticed that when you upgrade from IE7 to IE8 it will preserve your search preferences, so if you already have them set up you don’t really have to do anything. This is not the case with Firefox – from 2.x to 3.x it will override whatever you have selected to Google, although in truth it’s not difficult to change it back (in my case, I had been researching something on Wikipedia so I had the WP search selected the day I upgraded).

    The default search engine in IE6 used to be MSN, however if I remember correctly (and take this with a grain of salt) after one of the service packs you could select something else and searches from the address bar would respect that as well. Since we’re talking maybe 6 years ago, I’m not sure how accurate your characterization of this behavior as “desperate” is, considering that since Windows is the most widespread OS in the world, and IE is (still) the most used browser in the world, if there was something Microsoft could do to prevent Google from having > 80% of the search market, they would have done it. Yet Google still has (as far as I can tell) > 80% of the search market, while MSN/Live have less than 4%.

    I suppose if you’re anything like the average Internet user, you probably perform dozens of searches per day, so spending 45 seconds configuring something doesn’t sound like a big deal, unless of course you just want to complain about it.

    I won’t pretend I use anything other than Firefox and Google really (AdBlock lets me actually enjoy the internet again), so my IE expertise is really limited. But I thought maybe you could use a hand. You’re welcome!

    twitter Reply:

    Hi, ass. Do you really think that you bother me by attempts to “out” me? You obviously do, which is why you repeatedly point to who you think I am. Talk about desperate and without merit. Windows is a pig, M$ is sinking and all you idiots can do is harass.

    In any case, I’m not so interested in browsing at work that I’d bother to change anything, which is more typical than you think. Experience tells me that M$ will beg me to change things back and sooner or later an “upgrade” would do it anyway. The five or six clicks it takes per machine would quickly be dwarfed by the nag screen clicks, such as I get betting me to install “quick search” in outlook or more “upgrades” each time I turn Windows off. Like hell I’m going to let Bill’s bag of poison break every app the company wants me to use. No, please don’t tell me how to waste my time fighting those settings too. I know it’s a lie because I have to use the shit every day. Windows is simply annoying.

    G. Michaels Reply:

    So other than the implication that you’re a troll (because only trolls and criminals need “outing”) and the usual insults, your emotional predisposition to some software is preventing you from being happy, not the fact that it doesn’t have the defaults you want, since those can easily be changed in seconds.

    Don’t try to come up with technical or practical reasons to hate Microsoft more, I don’t think you need them. And it only makes you look desperate at best.

    BTW, congratulations on the new job. I take it then that this alleged “blacklist” you claimed you were in didn’t really exist at all? Another figment of your imagination? :)

    And again, you’re welcome.

    Roy Schestowitz Reply:

    It’s bad enough that you come here just to troll. Please stop harassing readers.

    G. Michaels Reply:

    Roy, I’m amazed that you’re actually replying to me? The last time I bothered to actually address what you were saying (click on my name for that) your response was to tell Shane you hadn’t even read my analysis, and promptly changed the subject. I guess all your smear jobs get 100+ comments, so it wasn’t something that needed your attention?

    Anyone who is familiar with your modus operandi has pretty much figured out that any person that questions what you write is a “troll” and a “heckler” and an “astroturfer”, “nitpicking” to “daemonise” and all that, so frankly, I’m not really losing any sleep over your labels here. And hey, at least I’m not beating your nymshifter’s dead Slashdot horse anymore :)

    Tell you what, the next time I post an actual comment about something you wrote and you actually give me an answer, I’ll stop making fun of your emotionally unstable collaborators and their soul-sucking approach to “advocacy”. Game?

    Peace out now, I have to go to bed. Microsoft stopped paying overtime to evil minions like moi after they discovered that those pesky netbooks were behind their completely unexpected and completely unrelated to the recession drop in revenue, even though I can’t for the life of me understand how that could be the case since a full half of them seem to ship with XP to being with :)

    G. Michaels Reply:

    Roy, I’m amazed that you’re actually replying to me? The last time I bothered to actually address what you were saying (click on my name for that) your response was to tell Shane you hadn’t even read my analysis, and promptly changed the subject. I guess all your smear jobs get 100+ comments, so it wasn’t something that needed your attention?

    Anyone who is familiar with your modus operandi has pretty much figured out that any person that questions what you write is a “troll” and a “heckler” and “astroturfer”, “nitpicking” to “daemonise” and all that, so frankly, I’m not really losing any sleep over your labels here. And hey, at least I’m not beating your nymshifter’s dead Slashdot horse anymore :)

    Tell you what, the next time I post an actual comment about something you wrote and you actually give me an answer, I’ll stop making fun of your emotionally unstable collaborators and their soul-sucking approach to “advocacy”. Game?

    Peace out now, I have to go to bed. Microsoft stopped paying overtime to evil minions like moi after they discovered that those pesky netbooks were behind their completely unexpected and completely unrelated to the recession drop in revenue, even though I can’t for the life of me understand how that could be the case since a full half of them seem to ship with XP to being with :)

  2. Roy Schestowitz said,

    April 25, 2009 at 10:34 am

    Gravatar

    They have just officially ended their buybacks programme. They won’t artificially inflate their stock anymore.

    David Gerard Reply:

    It was hilarious when their most recent buyback resulted in a *drop* in price.

What Else is New


  1. Links 23/8/2016: GNOME 3.22 Beta, Android 7.0 Nougat

    Links for the day



  2. The Linux Foundation Gives Microsoft (Paid-for) Keynote Position While Microsoft Extorts (With Patents) Lenovo and Motorola Over Linux Use

    This morning's reminder that Nadella is just another Ballmer (with a different face); Motorola and Lenovo surrender to Microsoft's patent demands and will soon put Microsoft spyware/malware on their Linux-powered products to avert costly legal battles



  3. Not Just President Battistelli: EPO Vice-Presidents Are Still Intentionally Misrepresenting EPO Staff

    Evidence serving to show that EPO Vice-Presidents are still intentionally misrepresenting EPO staff representatives and misleading everyone in order to defend Battistelli



  4. Battistelli the Liar Causes a Climate of Confrontation in French Politics, Lies About Patent Quality (Among Many Other Things)

    Battistelli's lies are coming under increased scrutiny inside and outside the European Patent Office (EPO), where patent quality has been abandoned in order to artificially elevate figures



  5. The Collapse of Software Patents and Patent Law Firms Trying to “Overcome” Alice

    The United States continues its gradual crackdown on software patents (which are viewed as abstract and thus unpatentable), whereas in Europe things are murkier than ever



  6. Apple's Patent Wars Against Android/Linux Make Patent Trolls Stronger

    Apple's insistence that designs should be patentable could prove to be collectively expensive, as patent trolls would then use a possible SCOTUS nod to launch litigation campaigns



  7. Links 22/8/2016: Linux 4.8 RC3, Linux Mint 18 “Sarah” KDE Beta

    Links for the day



  8. Links 21/8/2016: Apple and Microsoft Down, Systemd Spreading to Mount

    Links for the day



  9. Links 20/8/2016: Android Domination, FSFE summit 2016

    Links for the day



  10. Patents Roundup: Trolls Dominate Litigation, PTAB Crushes Patents, Patent Box Regime Persists, and OIN Explains Itself

    Another roundup of patent news from around the Web with special focus on software patenting



  11. The Cost/Toll of the 'New' EPO and Where All That Money Goes or Comes From

    The European Patent Office has become a servant of the rich and powerful (including large foreign corporations) and even its own employees now pay the price associated with misguided new policies (or 'reforms' as Battistelli habitually refers to these)



  12. Links 19/8/2016: Linux Mint With KDE, Linux Foundation's PNDA

    Links for the day



  13. The End of an Era at the USPTO as Battistelli-Like (EPO) Granting Policies Are Over

    The United States is seeing the potency of patents -- especially software patents (which make up much of the country's troll cases) -- challenged by courts and by the Patent Trial and Appeal Board (PTAB)



  14. Battistelli's European Patent Office Goes to the United States to Speak About the UPC and Software Patents

    The European Patent Office is showing its utter contempt -- not just disregard -- for the very fundamental rules that put it in its place and brought it into existence



  15. Turkey Subjected to the European Patent Convention (EPC) But Benoît Battistelli is Not?

    The ‘constitutional crisis’ at the European Patent Office in the context of Turkey, which has signed "the EPC and as such recognises the competence and the decisions of the institutions which have been introduced in the convention."



  16. Links 18/8/2016: EFF Slams Vista 10, Linux Foundation Makes PNDA

    Links for the day



  17. Links 17/8/2016: GNOME and Debian Anniversaries

    Links for the day



  18. Personal Audio LLC and Patent Troll Jim Logan Demonstrate the Harms of Software Patents and Why They Must Never Spread to Europe

    Jim Logan of Personal Audio (a notorious Texas-based patent troll) is still fighting with his bogus patent, having already caused enormous damage with a single software patent that should never have been granted in the first place (due to prior art, not just Alice)



  19. The Patent Microcosm Hopes That the Originators of Software Patents Will Undermine the Patent Trial and Appeal Board

    Now that the actions of the Patent Trial and Appeal Board (PTAB), which have been consistently upheld by the CAFC in precedential decisions, are suddenly being questioned the patent microcosm gets all giddy and tries to undermine PTAB (again)



  20. That Time When the Administrative Council Helped Battistelli Crush Oversight (Audit Committee) and What ILO Said About It a Month Ago

    Things are becoming ever more troublesome at the EPO as the Administrative Council enjoys inaction from the International Labour Organization (ILO), in spite of its role in destroying much-needed oversight at the behest of Battistelli



  21. The EPO's Administrative Council Keeps Postponing Debate About Grounds for Firing the President

    A recollection of events prior to the latest Administrative Council meeting, where Benoît Battistelli's failings and accountability for failing to correct them never even came up



  22. A Surge of Staff Complaints About the European Patent Office Drowns the System, Disservice to Justice Noted

    Self-explanatory graphs about the state of the justice [sic] system which is prejudiced towards/against EPO workers, based on internal reports



  23. Links 16/8/2016: White House Urged by EFF on FOSS, Go 1.7 Released

    Links for the day



  24. Links 15/8/2016: Linux 4.8 RC2, Glimpses at OpenMandriva Lx 3.0

    Links for the day



  25. Clawing Back the Staff Benefits at the European Patent Office (EPO)

    Staff of the EPO is leaving (or retiring) in droves as abusive management continues to be the norm and staff benefits are being taken away or gradually revoked



  26. The Patent Microcosm is Panicking and Spinning Alice/§ 101 Because US Software Patents Are Still Dying

    A look at recent developments in the software patents scene in the United States, with increased focus on (or fear of) the Patent Trial and Appeal Board



  27. 21,000 Posts in Techrights in Less Than a Decade

    This post is the 21,000th post and the next one will make it more than twenty-one thousand posts in total. We are turning 10 in November.



  28. Patent Microcosm Shuts Out the Poor: Unified Patent Court (UPC) Promotion by Practising Law Institute (PLI) Only for the Wealthy

    The people who are profiting from patent feuds, disputes, lawsuits etc. are still trying to muscle their will into European law and they keep the general public out of it by locking down (or pricing out of reach) their meetings where they influence/lobby decision-making officials



  29. The United States Has a Growing Patent Trolls Epidemic as Very High Proportion of Lawsuits Filed by Them

    A look at the high proportion of patent lawsuits that are filed by entities that make nothing at all and thus serve no role whatsoever in innovation



  30. Pushers of Software Patents Outside the United States (Which is Belatedly Squashing These Patents)

    How patent law firms are distorting the debate about software patents in hope of attracting business from gullible people who misunderstand the harsh (and worsening) reality of software patenting


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts