Microsoft admits Vista failure

hellrider · 24-04-2007, 03:31 PM

Quote:

WITH TWO OVERLAPPING events, Microsoft admitted what we have been saying all along, Vista, aka Windows Me Two (Me II), is a joke that no one wants.

It did two unprecedented things this week that frankly stunned us.

Dell announced that it would be offering XP again on home PCs. The second that Vista came out, Microsoft makes it very hard for you to sell anything other than Me II. It can't do this on the business side because it would be laughed out the door, but for the walking sheep class, well, you take what you are shovelled.

This is classic abusive monopoly behaviour, Microsoft wrote the modern book on it. It pulled all the major OEMs in by twisting their arms with the usual methods, and they again all fell into line. Never before has anyone backpedalled on this, to do so would earn you the wrath of Microsoft.

But Dell just did. This means that Me II sales are at least as bad as we think, the software and driver situation is just as miserable, and Dell had no choice but to buck the trend. If anyone thinks this is an act of atonement for foisting such a steaming pile on us, think again, it doesn't care about the consumer.

What happened is, the OEMs revolted in the background and forced Microsoft's hand. This is a big neon sign above Me II saying 'FAILURE'. Blink blink blink. OK, Me II won't fail, Microsoft has OEMs whipped and threatened into a corner, it will sell, but you can almost hear the defectors marching toward Linux. This is a watershed.

The other equally monumental Me II failure? Gates in China launching a $3 version of bundled XP. Why is this not altruism? Well, it goes back to piracy and how it helped enforce the MS monopoly. If you can easily pirate Windows, Linux has no price advantage, they both cost zero.

With Me II, Microsoft made it very hard to pirate. It is do-able, you can use the BIOS hack and probably a host of others, but the point is, it raised the bar enough so lots of people have to buy it. Want to bet that in a country with $100 average monthly salary, people aren't going to shell out $299 for Me II Broken Edition?

What did MS do? It dropped the price about 100x or so. I can't say this is unprecedented, when it made Office 2003 hard to pirate it had to backpedal with the student edition for about $150. This time though, things are much more desperate.

If you fit Microsoft's somewhat convoluted definition of poor, it still wants to lock you in, you might get rich enough to afford the full-priced stuff someday. It is at a dangerous crossroads, if its software bumps up the price of a computer by 100 per cent, people might look to alternatives.

That means no Me II DRM infection lock in, no mass migration to the newer Office obfuscated and patented file formats, and worse yet, people might utter the W word. Yes, you guessed it, 'why'. People might ask why it is sticking with the MS lock in, and at that point, it is in deep trouble.

So, it did the unthinkable, and dropped the price. I won't bother to hunt down all the exec quotes saying how people can't afford clean water would be overjoyed to sell kidneys to upgrade to the new version of Office, but they are out there. This was a sacred cow, and it is now hamburger backed up against the wall.

These two actions by Microsoft are proof of what I suggested three years ago. Microsoft has lost its ability to twist arms, and now it is going to die. It can't compete on level ground, so is left with backpedalling and discounts of almost 100 times.

What we are seeing is an unprecedented shift of power. It is also an unprecedented admission of failure. And the funniest part about the moves made? They are the wrong things to do. Microsoft is in deep trouble.

Source : theInquirer

spartan014 · 24-04-2007, 05:15 PM

I don't think its that big a deal that MS is giving XP starter edition for $3..

The $3.00 package includes Windows XP Starter Edition, Microsoft Office 2007 Home and Student Edition, and several other unnamed educational programs. XP Starter Edition differs from the other versions of XP by its rather significant limitations - 800x600 maximum resolution, a maximum of three programs open at once, and "client-only" networking are some of the major caps placed on the cheaper version.
Quoted from Dailytech article..
DailyTech - Microsoft Offering Software to Developing Countries For Only $3.00

As for Dell starting to offer XP based systems again, it is because they have got sales going down. They lost market share..

IDC and Gartner reports show that personal computer sales for Dell continued to fall in the first quarter for overall global sales. Dell worldwide shipments fell 6.9 percent since the first quarter of 2006, IDC reports indicate. Overall, the U.S. market has been the biggest problem for Dell -- PC shipments dropped 14.4 even though the overall PC market grew a total of 3.6 percent.
Quoted from Dailytech article..
DailyTech - HP Extends Market Lead Over Dell

**anandk** · 24-04-2007, 07:52 PM

ms has not admitted it !

it pure conjecture ... ! an opinion of the author, based on 1-2 misinterpreted incidents !

but then its a free world and all are entitled to an opinion ! in fact if all the people agreed on all the things, the world would be dull place !

another thing : Microsoft is not promoting its efforts as charity. "This is a business, not a philanthropic effort," said Microsoft senior vice president Orlando Ayala.

thanx for the wonderful read.

**bakuryu** · 27-04-2007, 02:23 PM

On the contrary MS said that it has earned a record 65% profit.

Quote:

Microsoft beats profit target thanks to Vista, Office sales - MarketWatch

Microsoft Corp. said late Thursday its fiscal third-quarter profit rose 65%, as the company benefitted from initial sales of heavily-marketed new products including its Vista operating system. The world's biggest software maker said it earned a record-high $4.93 billion, or 50 cents a share, in the period ended March 31, compared to $2.98 billion, or 29 cents a share, during the period a year earlier. Meanwhile revenue rose to $14.4 billion from $10.9 billion. Analysts surveyed by Thomson Financial had expected Microsoft to earn 46 cents a share, on revenue of $13.89 billion. Microsoft had been widely expected to report strong numbers for the quarter, a period in which it has benefited from initial sales of both Vista and the Office 2007 suite of desktop applications.

**X-Caliber** · 27-04-2007, 07:29 PM

Quote:

On the contrary MS said that it has earned a record 65% profit.

Bottom line : MS are good Bluffers

**bakuryu** · 27-04-2007, 07:39 PM

No, I don't think they will bluff to their share holders about such a high profit. Also the increase in the value of shares shows the profit

**anandk** · 27-04-2007, 10:24 PM

err....anyone read this ?

Microsoft beats profit target thanks to Vista, Office sales
Thanks to the simultaneous release of Windows Vista and Office 2007, Microsoft Corporation has managed a 65% profit increase in its fiscal third-quarter. The world's biggest software maker said it earned a record-high $4.93 billion, or 50 cents a share, in the period ended March 31, compared to $2.98 billion, or 29 cents a share, during the period a year earlier. Meanwhile, revenue rose to $14.4 billion from $10.9 billion. Because of the software releases...

**bakuryu** · 27-04-2007, 10:26 PM

I just posted that one only

**anandk** · 28-04-2007, 11:33 PM

^ sorry

24-04-2007, 05:15 PM	#2
spartan014 Newbie Join Date: Apr 2007 Posts: 6 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 2	Re: Microsoft admits Vista failure I don't think its that big a deal that MS is giving XP starter edition for $3.. The $3.00 package includes Windows XP Starter Edition, Microsoft Office 2007 Home and Student Edition, and several other unnamed educational programs. XP Starter Edition differs from the other versions of XP by its rather significant limitations - 800x600 maximum resolution, a maximum of three programs open at once, and "client-only" networking are some of the major caps placed on the cheaper version. Quoted from Dailytech article.. DailyTech - Microsoft Offering Software to Developing Countries For Only $3.00 As for Dell starting to offer XP based systems again, it is because they have got sales going down. They lost market share.. IDC and Gartner reports show that personal computer sales for Dell continued to fall in the first quarter for overall global sales. Dell worldwide shipments fell 6.9 percent since the first quarter of 2006, IDC reports indicate. Overall, the U.S. market has been the biggest problem for Dell -- PC shipments dropped 14.4 even though the overall PC market grew a total of 3.6 percent. Quoted from Dailytech article.. DailyTech - HP Extends Market Lead Over Dell

24-04-2007, 07:52 PM	#3
anandk Contributor Join Date: Apr 2007 Posts: 122 Thanks: 0 Thanked 22 Times in 18 Posts Rep Power: 7	Re: Microsoft admits Vista failure ms has not admitted it ! it pure conjecture ... ! an opinion of the author, based on 1-2 misinterpreted incidents ! but then its a free world and all are entitled to an opinion ! in fact if all the people agreed on all the things, the world would be dull place ! another thing : Microsoft is not promoting its efforts as charity. "This is a business, not a philanthropic effort," said Microsoft senior vice president Orlando Ayala. thanx for the wonderful read. __________________ The Windows Club \| WinVistaClub

27-04-2007, 07:39 PM	#6
bakuryu ƒ(ψ)=Θº×φ Join Date: May 2006 Location: India Age: 23 Posts: 6,621 Thanks: 19 Thanked 645 Times in 603 Posts Rep Power: 87 OS:	Re: Microsoft admits Vista failure No, I don't think they will bluff to their share holders about such a high profit. Also the increase in the value of shares shows the profit

27-04-2007, 10:24 PM	#7
anandk Contributor Join Date: Apr 2007 Posts: 122 Thanks: 0 Thanked 22 Times in 18 Posts Rep Power: 7	Re: Microsoft admits Vista failure err....anyone read this ? Microsoft beats profit target thanks to Vista, Office sales Thanks to the simultaneous release of Windows Vista and Office 2007, Microsoft Corporation has managed a 65% profit increase in its fiscal third-quarter. The world's biggest software maker said it earned a record-high $4.93 billion, or 50 cents a share, in the period ended March 31, compared to $2.98 billion, or 29 cents a share, during the period a year earlier. Meanwhile, revenue rose to $14.4 billion from $10.9 billion. Because of the software releases...

27-04-2007, 10:26 PM	#8
bakuryu ƒ(ψ)=Θº×φ Join Date: May 2006 Location: India Age: 23 Posts: 6,621 Thanks: 19 Thanked 645 Times in 603 Posts Rep Power: 87 OS:	Re: Microsoft admits Vista failure I just posted that one only

28-04-2007, 11:33 PM	#9
anandk Contributor Join Date: Apr 2007 Posts: 122 Thanks: 0 Thanked 22 Times in 18 Posts Rep Power: 7	Re: Microsoft admits Vista failure ^ sorry

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Microsoft admits Vista failure

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