Sunday, July 26, 2009

OT: Micro revenues in a Softening Market.

I see that Microsoft revenue for Q2 dropped 17% year on year and net income dropped 29%. I think it's great that Microsoft will need to pull in its financial horns for a while but my reasoning may differ from the more extreme pockets of the Yellowverse.

What I'm hoping for is that Microsoft will now refocus on creating products that generate revenue rather than just running spoiler campaigns to screw up the rest of the market such as Notes Compete and MS Foundation (without an 's') Server.

I believe all parts of the IT market are well served by having two leaders fighting it out for market share. Any time that a company (IBM or Microsoft or anyone else) comes near to achieving total domination in one segment then innovation and price competitiveness take a back seat to monopolistic behavior.

IBM/Lotus and Microsoft will both be around in the messaging and collaboration market for many years to come and I hope they both enjoy a healthy market share during that time. The competition should help keep both of them honest - although I admit that strategy hasn't been working too well on the Microsoft side of the fence.

The only problem with this scenario is that it condemns c. 40% of system admins to working with MS Exchange and I'm not sure that's something I should wish for. Bad Karma and all that.

Oh well, better them than me :)

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