MSFT is Doomed! An Analysis of Their Quarterly Reports
Heh. Funny right?
On a serious note, after taking a look at their breakdown earnings, I began to see where their gains and loses were, and bedan to ask myself this question: Is it possible for MS to ever go out of business? I personally don't think so, and here's why.
1. They've created a near monopoly within the enterprise market.
- This is probably the most important. Some companies have been using MS' services since their very beginnings. Some would not only just prefer to keep things going as they always have, but would require a complete overhaul, and possible loss, if they decide to go in a different route (apple, since that's the only other viable option). But even then, alot of these companies have old heads, who probably have been using windows their whole life, the learning curve for switching could be another discouraging factor.
2. Too many rely on them
- This is more on the consumer side of things. No matter what people would like to have you believe, windows machines account for close to a whopping 93% of all computing OS'. Apple makes up about 7% of the rest, while everything else is minute. Think about that for a second. In order for MS to cave as a company completely, much less even lose 50% of that market share to apple, something unprecedented will need to happen for that to happen. And even if it does, we definitely won't see it take effect any time soon. Such high numbers require a lot of time to actually decline to irrelevancy. Possibly decades, even if MS stopped making windows today.
3. They're simply too smart, and too multi-faceted to go out of business.
- And this is where my impression comes in. Taking all of the negativity towards MS business model into consideration, no matter how you look at it, it's extremely impressive that a company can post consecutive record years. Besting last years then record setting year for them by $3 BILLION, totaling $24.52 Bill. Whats impressive about this is how it came.
Nokia - We already know about their unsatisfactory mobile numbers, from nokia's recent reveal, though they were still better than the year prior.
Surface - I thought that I was seeing more surfaces in the wild recently, I initially thought it was only anecdotal evidence as its increase in relevance, but this proves that it is doing much better. Their revenue was at $893 million, doubling the previous quarters revenue.
Xbox - Even after all of the negative opinions of the xbox one prior to launch, probably the most lopsided view, in terms of the gaming community, in gaming history, as well as it being $100 dollars more expensive than the ps4, its shocking that the xbox one sold $3.9 million. Outselling the ps4 for the month of december. Behind the ps4 by only $300k after launching weeks after it. But that's not all, the Xbox 360 also sold great as well, $3.5 to be exact. Making a combined $7.4 million for the Xbox division, that's MIGHTY impressive. Possibly their aim to merge media into one box won over many. I definitely would have one if I had the money. And to think closing the xbox division was actually discussed by some.
Bing - Search share grew to 18.2%, search revenue grew 34%
Commercial - Azure, office 365, SQL , System center, all combined for a 10% increase, and $12.67 billion overall. This is their bread and butter, and kind of goes with the first point I made.
Not to even mention skype, skydrive, xbox live, etc. Looking at all of these different sources of income, I think MS is simply too multifaceted as a company, and too brilliant as a company, to falter completely. So please, let's put an end to the whole "Microsoft is doomed" statements. Because in reality, Microsoft is, and will continue to be, a powerhouse. They're not going anywhere.