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

07.19.09

Another Microsoft Product Dies as the Company Prepares for Horrible Financial Results

Posted in Finance, GNU/Linux, Microsoft at 5:01 am by Dr. Roy Schestowitz

GNU and Linux

Summary: GNU/Linux is still destroying Microsoft by eliminating its profit margins

MICROSOFT has been killing many products recently. In the past 9 months alone, Microsoft put to end to almost 20 (maybe more, but it is difficult to keep count). We estimated that Microsoft kills, on average, about 2 products per month. So indeed, it’s time for another death knell. This one used to be a rumour. It is about Popfly, which is GNU/Linux hostile [1, 2] (also mentioned very briefly in [1, 2]).

Fortunately, given the anti-competitive nature of Popfly, this product is now officially dead.

Microsoft is shutting down its Popfly mashup tool, company officials are confirming.

Microsoft may have no choice but to shut down many more services and products. Based on this new report from the Wall Street Journal, we might see a recurrence of last quarter's results with Microsoft profits falling another 30% or more (in reality it may be a lot worse), to a great degree due to GNU/Linux which eroded Microsoft’s margins (dumping and kickbacks take their toll).

Microsoft Seen Posting Sharp Profit Decline For Fiscal 4Q

Microsoft Corp. (MSFT) is expected to post declines in profit and sales for its fiscal fourth-quarter next Thursday, as the software giant contends with flagging sales of personal computers bundled with its technology.

Microsoft will surely try to blame the economy, but Google and IBM have both just reported a rise in profit (both companies use GNU/Linux); Red Hat did too not so long ago and it is part of a trend.

Our reader Goblin wrote about the meaning of Microsoft’s expected sharp decline in profit.

It is being reported that Microsoft’s figures for Q4 that are due to be posted next Thursday are expected to be down, again.

One key reason for this is GNU/Linux, as it was confirmed by the press before (Microsoft has underperformed for a long time, but it bought back shares). 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. When one considers that getting some revenue is better than getting none, that was a wise move.”

Another reader of ours reminds people that ARM-based sub-notebooks are going to cause another major headache to Microsoft because Vista 7 won’t run on them. Our reader writes:

We’ll see if AlwaysInnovating.com can ship this month as claimed.

I’ve wanted a solid-state ARM-based netbook since around 2001. ARM-based tablets have been around since Zaurus and in 2007 started to kick ass with OpenMoko and the Nokia N810. The software has started to catch up. Now netbook-oriented distros are being ported to ARM and industry has planned six to ten ARM-based netbooks for 2009.

It looks like the first one is about ready.

If it gets 10 hours of battery, even die hard Bill fans will find a way to upgrade to Linux even if only on the netbook.

As noted last week, ARM-based sub-notebooks are expected to grab 55 percent of this market. This can’t be good for Microsoft.

“Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers.”

The Economist, 1999

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

15 Comments

  1. Andrew Macabe said,

    July 19, 2009 at 6:54 am

    Gravatar

    The netbook phenomena has been heavily discussed in our local groups for a while now. Some disagree with us saying it’s a passing phase. OTOH we say it’s a game changer or else why would microsoft continues to endeavor to kill not only its inception (OLPC) but the current offerings available from major OEM copycats. Most of our client userbase (poor and well to do) keep asking us for netbooks.

    Microsoft’s dumping of a 8 year old application (XP) masquerading as an OS on the netbook is seen as brilliant by some established bloggers, journalists and analysts, we see that as an act of desperation. OEM strangulation and blackmail by microsoft can be readily seen by how the convicted Redmond monopolist defines what a netbook should be. Shouldn’t that be left up to the OEMs decide?

    David Gerard Reply:

    Netbooks are a game changer. Our MSI Wind is my preferred main laptop.

    I live in the cloud. Even at home, my data lives on the household file server. The most inconvenient thing about switching machines is making sure the local install of Gimp has images I was working on.

  2. David Gerard said,

    July 19, 2009 at 8:28 am

    Gravatar

    No, no! The press spin is that Windows 7 not supporting ARM is bad for *ARM*, not bad for *Microsoft*. Get with the cool kids!

    Roy Schestowitz Reply:

    Yes, it is hard to ignore that bit, is it not? See the opening of this article.

    Nice spin.

    Roy Schestowitz Reply:

    Wait… this is precious. “[A] blow to the British firm’s hopes of becoming a big player in the sector. [...] No one at ARM was immediately available for comment.

    So Microsoft told them that it’s a blow to ARM, but they didn’t even confirm this with ARM.

    This is just bad reporting. ARM was happy with Linux all along.

    Andrew Macabe Reply:

    Not really; microsoft is waiting for

    EU_AntiTrust_Conviction v2.0

    Jonathan Wong Reply:

    For what it’s worth, I do think that Windows 7 should support ARM processors.

    However, I’m guessing that the engineering effort to adopt an x86-based OS like Windows to support ARM may be quite substantial.

    IMO, this would be a great opportunity for Google Chrome OS, if and when it does come out next year.

    David Gerard Reply:

    An ARM netbook that can run plain Debian ARM would be a perfectly lovely netbook for pretty much anything I do. Flash is the main proprietary sticking point, with no good free implementation. (Every patent-encumbered codec I can think of that people actually use has a good free software implementation in FFmpeg or gstreamer-plugins-bad/ugly.)

    At any given speed of processing, ARM/MIPS will outdo x86. Every x86 these days is essentially a RISC processor with an x86 instruction decoder on the front, but that instruction decoder is still crippling for power and speed compared to purer RISC. Though Atom is doing very well for lower power at usable performance.

    Roy Schestowitz Reply:

    Jonathan Wong, please disclose that you are a Microsoft employee (TE).

  3. Mikko said,

    July 19, 2009 at 1:56 pm

    Gravatar

    Nvidia recommends Windows CE for ARM-based netbooks

    http://www.computerworld.com/s/article/9134522/Nvidia_For_smartbooks_Windows_CE_beats_Android_?taxonomyId=162&pageNumber=1&taxonomyName=Processors

    Jonathan Wong Reply:

    Hmm…

    I’m not very familiar with Windows CE, but I’m not convinced that Windows CE in its current state gives users the experience they want from a netbook.

    The last CE version (6.x) was released in 2006, and as expected, lacks some the one thing a mobile netbook user likely will need – a modern web browser.

    The good thing for the consumers is that they are spoilt for choice, since besides Windows CE there are likely many other OS choices (both now and upcoming) for your ARM-based netbook.

    Mikko Reply:

    i wonder what scared nvidia to recommend windows ce for arm based netbooks

    DiamondWakizashi Reply:

    Nvidia wants Microsoft to continue using their Tegra chipset in the Zune garbage.

    http://techblips.dailyradar.com/story/zune_hd_confirmed_to_use_nvidia_tegra/

    Nvidia is ridiculous, insulting Linux because of the stupid Zune.

    Ijika Reply:

    How can an organization “insult” an operating system? Do operating systems have feelings?

    Andrew Macabe Reply:

    Could be the same people that scared ASUS into dumping xp home on their little netbook.

What Else is New


  1. The 'Offenses' of EPO Staff Representatives Boil Down to Truth-Telling

    Dutch television examined the documents of the mock 'trials' against SUEPO leaders and concluded that whistle-blowing (i.e. exposing abuses by EPO management), not misconduct, is the reason for overzealous dismissals



  2. Rumours About Dismissal of Benoît Battistelli and New Letter From Union Syndicale Federale Blasting Battistelli's Behaviour

    hings have been heating up since the dismissal of staff representatives at the European Patent Office (EPO) and some even spread rumours about withdrawal/dismissal of the EPO's President



  3. VirnetX Case Against Apple Shows Not the Problem With Patent Trolls But With Software Patents

    What the media really ought to be talking about after the high-profile VirnetX case, rather than obsess about the status of Apple or patent trolls in the Eastern District of Texas



  4. Diápositivas de Nueva Charla Explican la Connección Entre la Corte De Patentes Unitarias (UPC) y Patentes de Software

    Benjamín Henrion habló el pasado Domingo acerca de las patentes de software europeas -una presentación que habla de la Corte Unitaria de Patentes, por la que la OEP aboga sin cesar y que es lo que significa para las patentes de software.



  5. Las Políticas de Microsoft Alienan Incluso a los Hinchas Más Acérrimos de Microsoft, Incluyendo Pro-Microsoft Web Sites

    El agresivo comportamiento de Microsoft y su BAJA CALIDAD DE PRODUCTOS dejan algunos de sus últimos restos de ´hinchas´ descorazonados y molestos.



  6. Links 6/2/2016: CoreOS Rocket 1.0, Scientific Linux 7.2

    Links for the day



  7. Maybe It's Time for Class Action Lawsuits Against Microsoft for Forced Vista 10 'Upgrades', Which Were Definitely No Accident

    The sheer arrogance of Microsoft, which silently changes the operating system on people's computers (without their consent), makes lawsuits imperative, not just a possibility



  8. Readers' Article: A Strange Conspiracy of Silence in the German Media (Part II)

    Željko Topić's allegedly dark background, which includes a suicide, a retreat of potential witnesses, German funds in Topić's private bank account and several more interesting bits



  9. Links 5/2/2016: Wine 1.9.3, Slackware 14.2 Beta 2

    Links for the day



  10. Links 4/2/2016: Red Hat Upgraded, Ubuntu Tablet

    Links for the day



  11. The Siege Continues: Patent Lawyers Want More Patents, Including Software Patents, In Spite of Alice

    Lawyers who make money from patent disputes make rather apparent their aspirations, which include patent saturation even in domains that are patents-exempt



  12. European Patent Office Pretends It's Business as Usual and Prepares New Vanity Pieces

    The PR strategy of the EPO, whose destructive patent strategy continues unabated (for now), latches onto Colombia and strives to manufacture mythology wherein the public, patent examiners and patent applicants are all very happy with the EPO



  13. The 'International' Trade Commission Imposes/Reinforces Software Patents to Establish Another Embargo

    The International [sic] Trade Commission is meddling in competition and allowing a US giant, Cisco in this case, to potentially block rivals (no imports from abroad) using software patents



  14. Readers' Article: A Strange Conspiracy of Silence in the German Media (Part I)

    The views of some of our readers regarding reluctance in the German media to challenge the EPO's violations of German law, probably because Germany benefits from being a host nation of the EPO



  15. Benoît Battistelli's EPO: From Show Trials and Mock Trials to a Self-Aggrandising Propaganda Event Later Today in Rijswijk

    A headsup from a reader regarding today's highly misleading event in Rijswijk (e.g. to mislead the media or seed positive media coverage in the Netherlands) and how it was set up



  16. Caricature of the Day: EPO President

    New caricature about Benoît Battistelli, his bodyguards, and the assault on free speech at the European Patent Office



  17. Company Known as European Patent Office Provides Tips on How to Patent Software in Europe

    The European Patent Office (EPO) uses its attendance at CeBIT, which is a corporate expo, to promote software patents in spite of the European Patent Convention (EPC)



  18. Links 3/2/2016: Dell GNU/Linux Laptop, Wine 1.8.1

    Links for the day



  19. The Most Detailed Explanation (Yet) of What's Wrong With the EPO

    The EPO's insistence that it remains above the law is not only coming under fire by the media but is also being challenged based on people who are familiar with the applicability of law to international organisations



  20. Angry Trolls: Rovi (of Angry Birds Fame) Helps Microsoft's Largest Anti-Linux Patent Troll, Intellectual Ventures (Corrected)

    nce known as a game maker and later made notorious for mass surveillance on gamers, Rovi now liaises with the world's largest patent troll



  21. Patent Invalidation Statistics and Cost of Patent Litigation (Even If Bogus) Show That Patent Scope and Examination Standards a Problem in Europe, Not Just the US

    Far too many bogus patents (patents that should not be granted in the first place) and spurious patent lawsuits that end up in favour of the defendant serve to show the external cost (or externality) when it comes to low-quality patent systems that strive to grant a lot of patents irrespective of merit



  22. Es Oficial: Por Medio de Entrismo, Microsoft Ha Convertido a la Pro-Linux Nokia en un Parásito de Patentes Anti-Linux

    Microsoft ha convertido a Nokia en un troll de patentes que ahora ataca a Linux y Android.



  23. Richard Stallman: Patentes Europeas de Software Regresan con la Corte Unitaria de Patentes (UPC)

    Debates acerca de la UPC estan siendo peleados por profesionales de software (entidades prácticantes) y elementos PARÁSITICOS como los abogados de patentes.



  24. SUEPO (EPO Staff Union) Appears to Have Launched a New and Improved Web Site After Attempts to Crush ('Decapitate') SUEPO

    SUEPO, the largest staff union of the European Patent Office, shows signs of strength rather than signs of weakness amidst attacks on the staff and a lot of media coverage, political interventions, and much more



  25. Links 2/2/2016: Chimpbox Quad Core, UNICEF Supports FOSS

    Links for the day



  26. Münchner Merkur Explains That EPO Staff is Defecting to SUEPO, Even The Council Distrusts Battistelli Now

    Press report from Munich, highlighting the crisis of leadership at the EPO, where the President is increasingly viewed as a villain



  27. Microsoft's Policies Alienate Even Microsoft's Biggest Fans, Including Pro-Microsoft Web Sites

    Microsoft's aggressive behaviour and low-quality products leave even some of its last remaining 'fans' disheartened and upset



  28. Slides of New Talk Which Explains the Connection Between the Unitary Patent (UPC) and Software Patents

    Benjamin Henrion's Sunday talk about European software patents -- a presentation which speaks of the Unitary Patent Court that the EPO lobbies for and what it means to software patents



  29. UEFI is Bricking PCs, Yet Again

    A few remarks about a new defect which is starting to attract media attention this morning, serving to highlight the lesser-discussed dangers of UEFI/EFI



  30. Under Battistelli's Regime the European Patent Office is Rapidly Rotting

    Technical problems, patent maximalism (in a desperate effort to artificially elevate patent-related figures) and other serious issues observed inside the European Patent Office (EPO)


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