Comments on: Microsoft – Is Not Over Until it is Over http://ContrarianEdge.com/2009/07/25/microsoft-is-not-over-until-it-is-over/ Vitaliy Katsenelson blog on the economy, stock market, and stocks. Applying Active Value Investing approach. Tue, 07 Feb 2012 06:09:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: sami http://ContrarianEdge.com/2009/07/25/microsoft-is-not-over-until-it-is-over/comment-page-1/#comment-190502 sami Sat, 25 Jul 2009 20:09:13 +0000 http://ContrarianEdge.com/?p=1153#comment-190502 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. 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.

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