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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (60436)	7/25/2002 1:06:17 PM
From: ahhaha	Respond to of 77400

Anent to my previous comments: Microsoft to hire more, boost research By Mike Tarsala, CBS.MarketWatch.com Last Update: 12:32 PM ET July 25, 2002 REDMOND, Wash. (CBS.MW) -- Microsoft Chairman Bill Gates said Thursday that his company will boost research and development spending 20 percent in fiscal-year 2003, while hiring an additional 5,000 employees. Microsoft to hire and boost research Speaking at an annual meeting with analysts from the company's headquarters, Gates highlighted a series of new projects, including new applications software, tablet computing, and future versions of the company's flagship operating software that he says will result in an overall larger, and potentially more profitable company. None of this addresses the problem that MSFT has. This is the same issue with CSCO. They're cash cows which are headed for slaughter. The new initiatives, some of them in fledgling markets that will lose money, will cost Microsoft $5.2 billion in R&D in 2003 -- about 16 percent of the company's total revenue. The costs are necessary, Gates said. mindmeld brought up the point and I elaborated on the misuse of cash during the bust. In a down side they desperately throw away money looking for something, anything, that will get things going. More spending on R&D only partially answers analysts' questions about what Microsoft plans to do with its growing pile of liquid assets, which totaled more than $53 billion at the end of June. "Because of our optimism about what software can do in the decade ahead, we are increasing our level of investment," he said at the analyst meeting. "There is some risk in that -- it's something we've talked about a lot. But it's a decision we've made, and it's full speed ahead." I rest my case. MSFT needs a bigger vision than "what software can do". It's a tacit admission that software can't do much under their narrow concepts. The narrowness comes from aversion to risk. They think they take risk with what they have in mind, but they don't take it. They try to control risk more. That ain't taking it. When you have a lot of money, you can't take risk. That's why the government never needed to bust up MSFT. MSFT will do that on its own. MSFT is looking for a way to throw away the cash they accumulated. CSCO does the same and it's proved by CSCO's today announced purchase. They're just spinning their wheels hoping that something "out there" will bail them out from their folly.