Connors would have hinted to higher than expected EPS if they were forthcoming. Also, he said that revenue will not be good in the next 12 months.
MSFT and the PC industry has reached the crossroads. Why the PC is not growing like it was in the ninety's is anyones guess. Thin client, maybe. Saturation, maybe. Linx and Apple, maybe. The "late to the internet party", maybe or a combination of all of the above.
Yes, MSFT is late to the internet but they have the opporunity to be a major factor in it. Noone will molopolize it, but, it is so huge that any company even with a dominant position will become huge.
That being said, MSFT can only succeed if they create great products. To date, that have not proven they can. It's alot more serious when your server crashes (i.e., Yahoo) than your PC. We all know that Windows crashes, so are you really going to base your entire enterprise on a OS prone to crash?
Also, programing for the enterprise is much different than programming for an PC. Different mentality and I believe it is mentality that is going to kill MSFT. PSFT, SAP, IBM, ORCL, SUNW have been hiring programmers that can program for the enterprise for years. It would be like asking a manufacture of screws to manufacture the entire space shuttle. No can do!
MSFT might have the will and even the vision but I believe that they do not have the personnel to compete with the enterprise players. The internet is well and alive and that is the worst thing possible for MSFT. They make software for the PC and software for the internet is on the enterprise level.
So, in conclusion, I see MSFT acquiring (with monopoly money) enterprise software compnies such as PSFT, SAP, BAAN, Ariba, CMRC, ITWO to compete in the enterprise. This will be costly and only make them a player in the internet. ORCL already has an integrated suite of software that can run any business from one individual to thousands. An OS for business and their margins are flying. MSFT is going to have to integrate all the pieces together and that is more complicated and costly. I thought MSFT would be the next Digital Equipment but after thinking about it, I will upgrade them to the next IBM.
Bob. |
