Tipping Point

Story: How Microsoft wastes its money on anything but softwareTotal Replies: 2
Author Content
pogson

Mar 07, 2006
8:33 AM EDT
You forget the huge revenue stream that is the Microsoft monopoly. The paltry billions spent maintaining the monopoly have a huge return in future income. Sixty million spent on SCOG v IBM is a huge return if billions keep coming in a few years longer. MSFT knows the monopoly cannot go on forever. The plan is to keep it going as long as possible. The next critical point is Vista. If it falls flat, this is the beginning of the end. If people buy Vista because they are locked in and feel there is no alternative, this thing can go on another five years.

I am willing to bet MSFT falls flat with Vista because they cannot fool all the people all the time. A critical mass has turned to Linux. Linux is taking over the servers. Linux is viable on the desktop now. Businesses, governments and schools are switching. The looming Vista will push many to change to avoid paying the Microsoft tax all over again. Many will adopt Vista but they will find themselves saddled with huge burdens of backward compatibility, security, DRM, and Microsoft licensing. Competitive forces will compel heavy users to rethink it all and costs will compel consumers to think twice. Dell and Walmart are dabbling with Linux. This year, Linux will become mainstream everywhere. North America seems locked in the hardest so it may take a few more years here, but the rest of the world is wide awake.
hkwint

Mar 07, 2006
1:43 PM EDT
You're right about the monopoly; maybe the money is not that wasted. But on the other hand, if Microsofts name is connected to the 'dirty' SCO name (at least the name SCO sounds like "losers" and "dirt" to me), this might mean a slight devaluation of the value of their brand. However, on the longer term, the money is still wasted: If that money is used to generate future income which will also be wasted, all is wasted.

Lets hope you are right about MSFT falling flat with Vista. Looking at Europe (I always try to follow Linux Migrations), the odds are rather big they will.
Herschel_Cohen

Mar 08, 2006
10:31 AM EDT
pogson - hate to throw cold water on your analysis, but
Quoting:.., because they cannot fool all the people all the time
has already been canceled out by the sagacious marketing genius and historic figure of J.K.B, Inc. that is retained by Microsoft.

When the elder of the J.K.B. clan heard the inspiring words of Lincoln: ... you can fool all the people some of the time, and some of the people all the time, but ... J.K.B. had an epiphany: "That's the market we are going to concentrate on!".

So in essence, Microsoft is concentrating on its core market of massive proportions, hence, one can only conclude when you have nothing, money spent on bribes, thuggery and dastardly deeds is indeed money well spent*.



* For those reading this comment as serious content are in dire need of a humorous vitreous implantation with all due haste.

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