Another article about Microsoft that has implications for Intel:
Ballmer: Server Software Key for Microsoft Growth
HONG KONG (Reuters) - Software king Microsoft Corp (NasdaqNM:MSFT - news) will rely on server software as its biggest revenue growth driver over the next few years, chief executive Steve Ballmer said on Thursday.
Sales of server software now account for US$3 billion in sales -- or 12 percent of overall revenue.
``It could easily be 20 percent of our business within the next several years,'' Ballmer told a gathering of business and government leaders in Hong Kong, adding that the company was ''absolutely'' going after software rival Oracle Corp (NasdaqNM:ORCL - news) and server maker Sun Microsystems Inc (NasdaqNM:SUNW - news).
``Applications today for businesses are too hard to build ... the software is very expensive, and it's not very flexible,'' said Ballmer.
Microsoft has in recent years increased its focus on high-end enterprise software.
Ballmer, speaking at a gathering of top business and government leaders, also said he expects that segments of the technology industry will suffer for as long as the U.S. economy is weak.
He also said broadband -- the much-hyped fatter telecoms pipes that are expected to make the Internet much faster and more interactive -- is taking longer to roll out than expected.
``The key for the next wave of advancing our business is to make sure that there is broadband Internet access to the home,'' said Ballmer. Microsoft has invested in telecoms and satellite firms to that end.
``Despite all the good work, real broadband, and a broadband experience, is for most people, at least at home, further out in the future than we all had anticipated,'' Ballmer said.
That more realistic reconciliation of hope with reality is ''what part of this while bubble popping has been about,'' he said.
``People are coming to grips with the fact that, just because something's exciting doesn't mean its easy to advance, it's easy to make profit from, it's easy to raise the capital for.''
Still, Ballmer said Microsoft is confident it has made the right choice, through its .Net strategy, in betting on the Internet and XML (extensible markup language), the standard format for exchanging data over the Internet.
``It's a safe bet,'' Ballmer said.
Microsoft shares ended on Wednesday down 2.3 percent to US$70.40. |
