So during my roaming around the Internet, I stumble upon a very interesting article from John Dvorak, in which he describes the failed ventures of Microsoft. He concludes, that in his opinion, Microsoft could be on the verge of failing. He sites failed ventures in products such as MSN, Microsoft Press, Zune, as well as failed software ventures to bolster his claim. Plus we can not over look the 30% slide in profits as another supporting piece of information to add to the mix.
He also states the following:
I could go on with home-automation initiatives, phone operating systems, pen computers (two shots at that market), page-layout programs, Web-design tools and on and on — all shiny objects for a company that doesn’t want to actually fill a need, but jump from one idea to the next.
What’s shocking is that the cash cows, specifically the Windows operating system and the Office suite, have managed to finance all these idiotic efforts for so many years. While Microsoft’s profits and sales were way down this last quarter, it is only a matter of time before losses begin.
The cash cows are dying of neglect. This company cannot keep its eye on the ball because there are too many shiny objects to distract it.
We are in a recession and a 30% drop in revenues is to be expected. Does this mean that every company that suffers a 30% drop in revenue is going to go under? That every company that has failed products will fail? I believe it is to early to judge. With Windows 7 on the horizon Microsoft should see a profit gain. They also have Office 2010 heading our way in 2010. Both products should kick up the profits.
But what do you think?