6 ms·

Fascinating insight into the level of visionary thought that goes into managing a sprawling product portfolio fighting for survival. This is an excellent read i

by otoburb 17y ago

Fascinating insight into the level of visionary thought that goes into managing a sprawling product portfolio fighting for survival. This is an excellent read if only to appreciate the level of complexity that Microsoft deals with at the top.

bad_user 17y ago
Their business model is coming to an end. What keeps them going is the large customer base and Windows-specific applications people are accustomed to. Historically advancement in technology does tend to have this effect on businesses. The operating systems and dev platforms are a commodity and of course people are wondering why should they pay for this stuff when you can get them for free. Not to mention alternatives are often technologically superior and have stronger communities, and because of their closed-nature they really can't do anything about it. I would like to say that competition benefits consumers, but because Microsoft can still exert a huge influence on the industry without technical merits, consumers won't benefit until they reinvent themselves. I know they will, but it may take some time.
- froo 17y ago
  "Their business model is coming to an end." Do you have any data supporting your claim or is this just a gut feeling? Here's what we know about MS's business model (I just quickly skim read their annual reports to gather these figures). Revenue in 2008 was $60.8 Billion, up 18% from the previous year Revenue in 2007 was $51.12 Billion, up 17% from the previous year Revenue in 2006 was $44.28 Billion, up 11% from the previous year Revenue in 2005 was $39.79 Billion, up by about $3 billion from the previous year Revenue in 2004 was $36.8 Billion, up by 14% from the previous year Revenue in 2003 was $32.19 Billion, up by $3.82 billion from the previous year Revenue in 2002 was $28.37 billion, up by $3.07 billion on the previous year So since the date these internal memo's were written, their business has only managed to steadily grow each and every year by more than 10% per year, with their total revenue having doubled since these memo's were written. Or that Microsoft's growth alone in 2008 was around half of internet golden-child Google's total revenue for the same period? Yes, their business model is coming to an end, they really should be scared.... </sarcasm> (Disclosure: I don't work for microsoft, or a competitor, nor am I an investor. I'm just sick of the unnecessary FUD)
  - berntb 17y ago
    If nothing else... Microsoft owns the desktop until they are unable to e.g. scare netbook builders to stop selling preinstalled Linux.
    - froo 17y ago
      "If nothing else... Microsoft owns the desktop until they are unable to e.g. scare netbook builders to stop selling preinstalled Linux." I know we discussed this the other day (http://news.ycombinator.com/item?id=666787 http://news.ycombinator.com/item?id=666787) but I think it's more a case of brand imprinting than anything. When you have clueless people who buy new computers (which make up the vast majority of the consumer market), one of the things they look for is what version of windows does it come with. To me, for another OS to actively take significant market share in this dominated space, they would have to overcome this preconception that consumers have. To liken it to another industry, it would be like a new softdrink manufacturer having to compete against Coca Cola (with Apple being Pepsi) with their own cola brand. People instinctively go for one or the other when they go buy a cola, even if there are better products that are cheaper on the shelf. That's really what it boils down too. So while Linux may be free and a superior product (I personally switched to Ubuntu about 8 months ago) - it requires much more momentum than what the Linux community has right now. Which is a damn shame.
      - berntb 17y ago
        Microsoft has a history of pressuring computer manufacturers to not install anything else. This is well documented in court.
  - rjurney 17y ago
    Its not that they don't make money. Its that in terms of innovation - and more specifically in hampering innovation - Microsoft no longer matters. At least we like to think so, because we can remember when they were in the way of developing most anything cool.
    - 17y ago
- vorador 17y ago
  I think that there's something you aren't realizing : the open source communities don't scale. After a certain limit, they tend to go downhill.

by otoburb 17y ago

bad_user 17y ago

Their business model is coming to an end. What keeps them going is the large customer base and Windows-specific applications people are accustomed to. Historically advancement in technology does tend to have this effect on businesses. The operating systems and dev platforms are a commodity and of course people are wondering why should they pay for this stuff when you can get them for free. Not to mention alternatives are often technologically superior and have stronger communities, and because of their closed-nature they really can't do anything about it. I would like to say that competition benefits consumers, but because Microsoft can still exert a huge influence on the industry without technical merits, consumers won't benefit until they reinvent themselves. I know they will, but it may take some time.

froo 17y ago
"Their business model is coming to an end." Do you have any data supporting your claim or is this just a gut feeling? Here's what we know about MS's business model (I just quickly skim read their annual reports to gather these figures). Revenue in 2008 was $60.8 Billion, up 18% from the previous year Revenue in 2007 was $51.12 Billion, up 17% from the previous year Revenue in 2006 was $44.28 Billion, up 11% from the previous year Revenue in 2005 was $39.79 Billion, up by about $3 billion from the previous year Revenue in 2004 was $36.8 Billion, up by 14% from the previous year Revenue in 2003 was $32.19 Billion, up by $3.82 billion from the previous year Revenue in 2002 was $28.37 billion, up by $3.07 billion on the previous year So since the date these internal memo's were written, their business has only managed to steadily grow each and every year by more than 10% per year, with their total revenue having doubled since these memo's were written. Or that Microsoft's growth alone in 2008 was around half of internet golden-child Google's total revenue for the same period? Yes, their business model is coming to an end, they really should be scared.... </sarcasm> (Disclosure: I don't work for microsoft, or a competitor, nor am I an investor. I'm just sick of the unnecessary FUD)
- berntb 17y ago
  If nothing else... Microsoft owns the desktop until they are unable to e.g. scare netbook builders to stop selling preinstalled Linux.
  - froo 17y ago
    "If nothing else... Microsoft owns the desktop until they are unable to e.g. scare netbook builders to stop selling preinstalled Linux." I know we discussed this the other day (http://news.ycombinator.com/item?id=666787 http://news.ycombinator.com/item?id=666787) but I think it's more a case of brand imprinting than anything. When you have clueless people who buy new computers (which make up the vast majority of the consumer market), one of the things they look for is what version of windows does it come with. To me, for another OS to actively take significant market share in this dominated space, they would have to overcome this preconception that consumers have. To liken it to another industry, it would be like a new softdrink manufacturer having to compete against Coca Cola (with Apple being Pepsi) with their own cola brand. People instinctively go for one or the other when they go buy a cola, even if there are better products that are cheaper on the shelf. That's really what it boils down too. So while Linux may be free and a superior product (I personally switched to Ubuntu about 8 months ago) - it requires much more momentum than what the Linux community has right now. Which is a damn shame.
    - berntb 17y ago
      Microsoft has a history of pressuring computer manufacturers to not install anything else. This is well documented in court.
- rjurney 17y ago
  Its not that they don't make money. Its that in terms of innovation - and more specifically in hampering innovation - Microsoft no longer matters. At least we like to think so, because we can remember when they were in the way of developing most anything cool.
  - 17y ago
vorador 17y ago
I think that there's something you aren't realizing : the open source communities don't scale. After a certain limit, they tend to go downhill.