Microsoft Or Not
Below is a MRR and PLR article in category Business -> subcategory Other.
Microsoft: A Changing Landscape
Summary:
On Friday, we revisited an analysis originally shared on May 15, 2006. To ensure you're not left wanting, here’s an insightful piece from one of our UK-based staff members, Paul. He’s an avid reader of Jim Cramer’s "Mad Money" and brings you his perspective on one of Jim's views.
Keywords:
Microsoft, Windows, Jim Cramer, Mad Money, Linux
Article:
In a recent analysis, Jim Cramer endorsed buying Microsoft (MSFT), suggesting the company is past its rough patch and on the rise. Observing Microsoft’s share price, which has rebounded from a low of $21.51 to $24.40, one might agree with Cramer’s optimism.
However, the persistent delays in the release of Windows Vista, even if aimed at delivering a more stable and secure operating system, have been a concern. Consider Microsoft’s slow update cycle:
- Windows XP launched in 2001.
- Internet Explorer also released in 2001.
Fast-forward to 2007, Internet Explorer 7 and Windows Vista are poised for release, promising enhancements and new features. Yet, these updates introduce little innovation. Take Internet Explorer’s new tabbed browsing feature, for example. For users reliant on Microsoft’s offerings, this might seem groundbreaking. However, tabbed browsing has been available since 1996 in browsers like Opera and Mozilla Firefox.
While Microsoft won the initial "browser war," it now faces fierce competition. Open-source software, such as OpenOffice.org, Mozilla Firefox, and Mozilla Thunderbird, benefits from rapid update cycles, offering new features, bug fixes, and security patches more frequently and cost-effectively due to their open-source nature.
On the operating system front, Microsoft contends with Linux, which has gained traction among governments and educational institutions. Novell’s investment in Linux, including acquiring SuSE Linux GmbH, exemplifies this trend. They’ve also invested heavily in Xen virtualization software, which allows multiple operating systems to run on a single host, challenging Microsoft’s offerings. Microsoft has responded by improving its Virtual Server support and offering it for free, but this may be too little, too late.
The open-source nature of Xen ensures swift bug fixes, often before vulnerabilities become public knowledge. This rapid response is crucial in business environments, an area where Microsoft struggles due to its closed-source model.
Virtualization has become increasingly important due to rising power costs and advancing hardware capabilities. It allows multiple servers to run on a single system, optimizing resource use. As such, virtualization is not just a trend of the future but a necessity today.
With Vista and Internet Explorer 7, Microsoft appears to be trying to catch up amidst tough competition. The shift towards alternative browsers, office applications, and operating systems is undeniable, albeit gradual. In ten years, Microsoft may not hold the same dominant market position as it does today, with its market share continuing to erode.
The Bottom Line:
Microsoft faces significant challenges in the consumer, educational, and business desktop markets. It is also under threat in the business server sector, outside web servers where Linux/Unix prevails. While Vista’s launch may offer a temporary boost, Bill Gates’ transition hints that the peak may have passed, prompting strategic shifts.
The tech industry is ever-changing, making investment decisions challenging. Rather than focusing solely on software and operating systems, consider exploring hardware and consultancy firms. Companies like IBM have stood the test of time and continue to be in demand. Choose wisely, considering the comprehensive tech landscape.
You can find the original non-AI version of this article here: Microsoft Or Not .
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