mr. url,
msft is years behind both orcl and sap in enterprise software. orcl has already created a "suite" of business software for business applications, application server applications, and collaboration software. sap is well on its way to creating a "suite" for business applications and psft is in third place in this race.
msft is not on the radar screen. it has taken msft a decade to produce a somewhat stable operating system. what makes you think they can catchup in the enterprise space? and what makes you think that they can produce higher quality or lower cost products than what is already out in the market. orcl, sap and psft have been in this space for over a decade. i would be interested in your thoughts.
lastly, if msft wants to compete in the enterprise space they are definintely going to have to compete with their existing partners (i.e., sebl, sap, cmrc, etc.) that use their database and proposed .net infrastructure. i would be interested in your thoughts how msft can overcome these obstacles. orcl has overcome them because they have, without question, the best database and they are making inroads in the application server space with a product that is getting rave independent reviews.
the trojan horse that orcl has is jdeveloper. it is one if not the best java developer in the market and has been compared to msft's visual studio product. if my memory is correct, the reviewer said that msft could learn a thing or two in relation to this product.
msft may hit their numbers this quarter because of the extortion pricing they have stabbed their customers with. but we all know that msft's customers are not happy with this new annuity game and are looking at alternatives including linux. msft's future quarter, imo, look horrible. they are trying to play catchup in so many areas and throwing so much money at them that it is virtually bizarre. they have such a complicated business plan it boggles my mind. with flat or declining pc software revenue together with increased expenditures in so many areas of business it does not take a rocket scientist, which i am not, to conclude that msft's future earnings potential is in jeapardy of decling. kind of hard to take with a p/e of about 45.
jmho, rocky. |
