Microsoft sees sales hurdles ahead

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Did you read the article?: Seems like a number of people who posted previously didn't, so let me give you the short version, okay?

First:
However, Microsoft expects to continue to grab its share of tech spending. "We should perform well if unit sales go up in PCs and servers," Connors said. "There is nothing on the horizon that tells us we are going to lose share."

They are expecting to keep their existing share. Anything in here saying they expect to lose share to open source? Anyone? No, okay.

Second:
"We're starting to see, I think, the early stages of improved IT spending," Connors said. However, he noted that spending is not increasing as quickly as overall corporate profits.
"There's a bit of a hesitation in terms of business spending generally and IT specifically," he said. "The profit improvement is better than the budget improvement."

So, Microsoft profits will grow more slowly than in the past because companies are doing something with their own increasing profits besides reinvesting them, particularly on IT.
(Maybe unfair, but I'm thinking bonuses.)
I've read the same complaint from other IT companies.
Do you see anything in here about declines in prices charged? Anyone? No, okay.

The only reference to open source is in the hiring of 350 people to help with government sales. There are some governments that will try to take control over software, and Microsoft will have to combat that threat.
Penalty of loss of job or imprisonment is a major sales tool for selling open source.

The part that bothers me is the reduction in Microsoft's own costs. I expect the person who observed that means offshoring may well be right. Though Microsoft has made statements about keeping most work in Redmond, there probably are functions that can be shipped to other countries.
And, besides profits, Microsoft may have to send these jobs offshore in order to have the influence with governments they need to block open source.
So, yes, in that sense, open source's rigorous campaign to reduce software jobs and salaries, its reason for being, has been successful.; Posted by: Anton Philidor Posted on: 01/28/04 You are currently: a Guest | Members login | Terms of Use