July 25, 2009 | Posted by Vitaliy Katsenelson

Microsoft – Is Not Over Until it is Over

I’ve received a few emails asking my thoughts on Microsoft’s (MSFT) quarter. Here is my take: this is probably the least meaningful quarter in the company’s recent history. MSFT is about to introduce Windows 7 (and a slew of other products.) If I were a corporate customer, I wouldn’t be buying Windows Vista now if I could buy Windows Vista FIXED (or also known as Windows 7) in four months.

There is also news that it is difficult to upgrade from Windows XP to 7, but this difficulty will only impact consumers and very small businesses. Corporations upgrade using a very different procedure. They create a master disk, an image that has all programs installed and preconfigured, and then rollout this image to all computers. So in other words, corporate IT guys don’t go from one workstation to another with a Windows 7 disk and upgrade one computer at a time.

Short URL: http://ContrarianEdge.com/?p=1153

sami

i think for the long term most software companies are in trouble.selling software is not a sustainable business model. even subscription based services like Saas are not sustainable. just look at the long term trend composition of revenue in oracle, ibm and others, new software sales are declining and replaced by services and maintenance.

Businesses will cut drastically all types of software purchases compared to few years ago, because they get for free or next to nothing. Microsoft and Oracle who are traditional software companies will face an uphill battle going forward; they can’t adapt to free software. The culture of software selling is so entrenched to change easily. I do not see the merit in investing in software companies anymore.

Microsoft – Is Not Over Until it is Over

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