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. New Optimism in the Age of Doubt Over Software Patents

    As the tide turns against software patents, even in their country of origin, their opponents come out of the woodwork to celebrate



  2. Links 28/7/2014: New Linux RC, Plasma 5 Live in Kubuntu

    Links for the day



  3. Links 27/7/2014: KDE 4.14 Beta 3, KDE 4.14 Beta 3 Released

    Links for the day



  4. Apple and Microsoft Are Proprietary Software Companies and the Media Should Stop Openwashing Them

    New examples where proprietary software giants are characterised as FOSS-embracing and FOSS-friendly by gullible or dishonest 'journalists'



  5. Bloomberg's Microsoft Propaganda

    Bloomberg delivers 'damage control' and PR ahead of the layoffs announcement; Microsoft uses Nokia to hide it and Bloomberg helps Microsoft by radically modifying headlines



  6. Frequency of Browser Back Doors in Microsoft Windows is Doubling

    The vulnerabilities which Microsoft tells the NSA about (before these are patched) are significantly growing in terms of their numbers



  7. FUD Entities Entering the FOSS World

    Symantec enters the AllSeen Alliance and Sonatype is once again trying to claim great insecurity in FOSS due to software licensing



  8. Groklaw Back in the Wake of ODF in the UK?





  9. Links 26/7/2014: New Wine, Chromebooks Strong Sales

    Links for the day



  10. Links 25/7/2014: GOG With GNU/Linux, Ubuntu 14.04.1 LTS

    Links for the day



  11. Links 24/7/2014: Oracle Linux 7; Fedora Delays

    Links for the day



  12. Valerie Strauss Explains Why Gates Foundation's Lobbying for 'Common Core' (Privatisation) is a Swindle That Makes Microsoft Richer

    Continued criticism of the Gates Foundation's lobbying and masquerading, with more journalists brave enough to highlight the corruption



  13. USPTO Officially Sets New Guidelines to Limit Scope of Software Patents in the United States

    Even patent lawyers finally acknowledge that the incentive to file software patent applications has been reduced, as the scope of patents on software has been noticeably narrowed and they are harder to acquire, let alone enforce in a courtroom



  14. UK Government Adopts OpenDocument Format (ODF) and Microsoft Already Attacks the Government Over It, Showing Absolutely No Commitment to Open Standards

    Only "Microsoft as the standard" is the 'standard' Microsoft is willing to accept, as its response to the Cabinet Office's judgment reveals



  15. Microsoft Layoffs of 2014

    Another quick look at Microsoft's horrible state of affairs and why it has virtually nothing to do with Nokia



  16. Links 22/7/2014: Linux 3.16 RC 6, New UberStudent

    Links for the day



  17. Links 20/7/2014: Jolla in India, Mega Censored in Italy

    Links for the day



  18. Longtime Mono Booster Joins Microsoft-linked Xamarin

    Jo Shields almost joins Microsoft, settling instead for its proxy, Xamarin



  19. Linux Foundation Welcomes Patent Aggressor Red Bend Software

    The Linux Foundation's AllSeen Alliance welcomes as a member a company that uses software patents to sue Free/Open Source software



  20. Matt Levy From Patent Progress (and CCIA) Does Not Really Want Patent Progress

    Matthew ('Matt') Levy moved into a foe of patent progress last year, but he still runs a site calls Patent Progress, in which he diverts all attention to patent trolls (as large corporations such as Microsoft like to do)



  21. Attacking FOSS by Ignoring/Overlooking Issues With Proprietary Software

    The biasing strategy which continues to be used to demonise Free/Open Source software (FOSS) along with some new examples



  22. Links 19/7/2014: CRUX 3.1 is Out, CyanogenMod Competes With Google Now

    Links for the day



  23. Microsoft's Massive Layoffs Go Far Beyond Nokia; Nokia's Android Phones Axed by Microsoft's Elop

    Microsoft's rapid demise and permanent exit from Nokia's last remaining Linux platform (after Microsoft had killed two more)



  24. Patents on Software Already Being Invalidated in Courts Owing to SCOTUS Ruling on 'Abstract' Patents

    The Federal Circuit Appeals Court has just "invalidated a software patent for being overly abstract," says a patents expert



  25. OpenSUSE 'Community' is Crumbling, AttachMSFT Killed SUSE's Potential (Except as Microsoft Tax)

    Not much too see in the land of SUSE and Attachmate, or formerly the company known as Novell



  26. Links 18/7/2014: Slackware Turns 21, Spotify Switches to Ubuntu

    Links for the day



  27. Links 16/7/2014: Manjaro 0.8.10 Third Update, SIA Migrates to Red Hat

    Links for the day



  28. Microsoft's Latest Round of Massive/Bulk/Large-scale Layoffs

    Microsoft boosters are preparing 'damage control' pieces ahead of massive layoffs at Microsoft



  29. Secrecy Allows British Government to be Manipulated by Microsoft for Spyware Behind Closed Doors

    Dependence on malicious software from NSA ally Microsoft is highly dependent, at least in Britain, on government secrecy and vain refusal to comply with Freedom of Information (FOI) requests



  30. Software Patent Applications Already Being Rejected in the US Owing to SCOTUS Ruling, Some Patent Lawyers Are Fuming

    Good news on the software patents front as the USPTO starts rejecting software patent applications, based on patent lawyers' words


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