Congrats MSFT on great financial results

I only own stock in one company. Contrary to popular opinion I’m not rich, and don’t have a large 401k plan or stuff like that. I’m working on changing that, but for now I only have my Microsoft shares. I kept them waiting for yesterday. I knew Office and Vista — even if they were failures — would bring truckloads of cash into Microsoft.

I’m getting tougher on Microsoft lately cause I still care about the company. Deeply. Yesterday should have been an even bigger day than it was — Vista is selling “OK” but isn’t a breakaway hit like Windows 95 was (when I first saw Vista, I thought it really could be a Windows 95-style hit).

Since my Mac broke I’m back on Windows XP (I was on Vista on my Mac) and I’m back on Office 2003. I really don’t miss Vista that much, but I do miss Office 2007.

I’m going to hold my stock for Monday, then decide what to do with it. I’ve seen some previews of some cool stuff, and Microsofties are buzzing about stuff I haven’t yet seen, but will come out next week at Mix.

In the meantime, I gotta remind myself not to write off Microsoft or think they can’t have huge impacts on our industry. Any company that has cash arriving by the semi-truck load can’t be counted out and can always do something interesting.

At minimum the great results are getting lots of bloggers to talk.

Here’s to Monday!

UPDATE: Nick Carr has interesting analysis on his post about whether Microsoft is dead. Microsoft isn’t gonna die. We’re not seriously thinking that when we write bombastic headlines like that. But, is Microsoft living up to its potential? Carr points out that Microsoft is many times bigger than Apple or Google. That’s true. So, is Microsoft kicking out many times more new products or services? Not really on scale with expectations. That’s why there’s this consternation over Microsoft’s strategy/execution. Yesterday I was talking to some people and noted that in Web 1.0 Microsoft acquired Hotmail. What’s Microsoft’s big Web 2.0 acquisition? I can’t think of one. Why is that?

64 thoughts on “Congrats MSFT on great financial results

  1. Brian: I’ve seen other great companies disappear for a variety of reasons. Heck, back in the 1980s DEC was a nice big dominant computer manufacturer. Gone. Before that Rand Corporation was nice and big. Gone. How about Kodak? Totally dominated film. Now? Whithering.

  2. Brian: I’ve seen other great companies disappear for a variety of reasons. Heck, back in the 1980s DEC was a nice big dominant computer manufacturer. Gone. Before that Rand Corporation was nice and big. Gone. How about Kodak? Totally dominated film. Now? Whithering.

  3. Robert, you’re a great guy, but your knowledge of business could fit comfortably in a thimble. You say, “In the meantime, I gotta remind myself not to write off Microsoft or think they can’t have huge impacts on our industry.” Kind of astonishing considering you used to work there…

    For all your ballyhoo about Google as the threat to Microsoft, I still see a one-trick revenue pony completely dependent on defense of their core advertising product (hence the panic price they paid to keep DoubleClick out of MS hands). They may be tossing out consumer products at a breakneck speed, but where it counts — in the bank — they are playing defense.

    Apple is doing well, but are evolving into a consumer electronics company and are more of a threat to Sony than Microsoft.

    Microsoft sits on an empire that reaches from the living room to the desktop to the data center. They provide the platform that the Web 2.0 wannabes depend upon and they compete with them on the same platform. They can afford to hedge their bets on the economic viability of so-called “Web 2.0″ and wait to see where the best potential is before they move.

    The only place I’d really fault them is on marketing of Vista — they should be making the case for upgrade more effectively. Still. I’d bet on Microsoft over the long haul.

  4. Robert, you’re a great guy, but your knowledge of business could fit comfortably in a thimble. You say, “In the meantime, I gotta remind myself not to write off Microsoft or think they can’t have huge impacts on our industry.” Kind of astonishing considering you used to work there…

    For all your ballyhoo about Google as the threat to Microsoft, I still see a one-trick revenue pony completely dependent on defense of their core advertising product (hence the panic price they paid to keep DoubleClick out of MS hands). They may be tossing out consumer products at a breakneck speed, but where it counts — in the bank — they are playing defense.

    Apple is doing well, but are evolving into a consumer electronics company and are more of a threat to Sony than Microsoft.

    Microsoft sits on an empire that reaches from the living room to the desktop to the data center. They provide the platform that the Web 2.0 wannabes depend upon and they compete with them on the same platform. They can afford to hedge their bets on the economic viability of so-called “Web 2.0″ and wait to see where the best potential is before they move.

    The only place I’d really fault them is on marketing of Vista — they should be making the case for upgrade more effectively. Still. I’d bet on Microsoft over the long haul.

  5. I still get a big chuckle out of the Microsft is dead lines that appear on the Web, it’s a good way to attract traffic, as for Web 2.0, I don’t see the revolution comming, there seems to be a lot of companies telling the world that the next revolution has arrived, but in reality everybody is still waiting and waiting,twitter’s cute but really nothing to get worked up about.
    The stock market seems to be based more on black arts these days than rational thinking.

    Apple deserves Kudos for their finantial results, but Microsofts latest reports are outstanding.

    Vista’s premature reports of failure are just that,nobody expects real big numbers untill the 4th quarter with Vista when the Manufacturers release big updates to their PC lines for the holidays.

    Vista only added about a Billion dollars to the bottom line for this quarter.

    I see Google as the company with the most to lose,It’s easy to change your search engine, much easier than changing your OS, or tossing out your Mac.

    Google has that Sheen on it that MSFT had in the 90′s, in wall streets eyes they can do no wrong, but that sheen will ware off soon enough,Googles profits are almost all derived from t adwords revenues and they haven’t really showed the same success outside of that, the clock is ticking for them as well.

  6. I still get a big chuckle out of the Microsft is dead lines that appear on the Web, it’s a good way to attract traffic, as for Web 2.0, I don’t see the revolution comming, there seems to be a lot of companies telling the world that the next revolution has arrived, but in reality everybody is still waiting and waiting,twitter’s cute but really nothing to get worked up about.
    The stock market seems to be based more on black arts these days than rational thinking.

    Apple deserves Kudos for their finantial results, but Microsofts latest reports are outstanding.

    Vista’s premature reports of failure are just that,nobody expects real big numbers untill the 4th quarter with Vista when the Manufacturers release big updates to their PC lines for the holidays.

    Vista only added about a Billion dollars to the bottom line for this quarter.

    I see Google as the company with the most to lose,It’s easy to change your search engine, much easier than changing your OS, or tossing out your Mac.

    Google has that Sheen on it that MSFT had in the 90′s, in wall streets eyes they can do no wrong, but that sheen will ware off soon enough,Googles profits are almost all derived from t adwords revenues and they haven’t really showed the same success outside of that, the clock is ticking for them as well.

  7. FWIW, Robert, in relation to your comment about Vista not being the next Win95, I’ve read some people saying it’s actually Win ME II – and there are some pretty annoyed customers publishing stories about annoying experiences they had with MS Windows Vista. I’m sure Adam Barr would be ready to explain his problems with Vista if you called – he’s certainly published them on his blog.
    http://www.proudlyserving.com/archives/2007/04/my_somewhat_lam.html

  8. FWIW, Robert, in relation to your comment about Vista not being the next Win95, I’ve read some people saying it’s actually Win ME II – and there are some pretty annoyed customers publishing stories about annoying experiences they had with MS Windows Vista. I’m sure Adam Barr would be ready to explain his problems with Vista if you called – he’s certainly published them on his blog.
    http://www.proudlyserving.com/archives/2007/04/my_somewhat_lam.html

  9. yes, the Microsoft is dead thing is just a way of talk. Same with the Micro$ucks and stuff (I still find that funny). Microsoft is not going to die, but Microsoft is boring except in those products that are not fulfilling their promise (360, Zune, Windows Mobile, Tablet PC, etc). Where Microsoft is doing what it should (Vista, Office, server stuff), nobody is interested in that! And that’s the problem. If Microsoft got daring with some products. If they really decided to make the 360 a way to watch on TV every video (xvid and divx please!) on your computer, really challenging Apple TV, then we could see a Microsoft “Alive”. As for owning Microsoft stuff… My condolences… Apple or Nintendo would have been a better choice on the past two years…

  10. yes, the Microsoft is dead thing is just a way of talk. Same with the Micro$ucks and stuff (I still find that funny). Microsoft is not going to die, but Microsoft is boring except in those products that are not fulfilling their promise (360, Zune, Windows Mobile, Tablet PC, etc). Where Microsoft is doing what it should (Vista, Office, server stuff), nobody is interested in that! And that’s the problem. If Microsoft got daring with some products. If they really decided to make the 360 a way to watch on TV every video (xvid and divx please!) on your computer, really challenging Apple TV, then we could see a Microsoft “Alive”. As for owning Microsoft stuff… My condolences… Apple or Nintendo would have been a better choice on the past two years…

  11. @26. That’s an apt observation. Web 2.0 companies only seem to be making money via advertising and hoping to get bought because they generate a lot of eyeballs. MS is looking for ways to make money….long term. And also how to get more customers bought into their platform. Like Coulter said above…some nifty-neato Web 2.0 doo-dad ain’t gonna cut it. Scoble, this is the reason MS never took your “advice” on Flickr. Remind me again how that’s helped Yahoo make money?

  12. @26. That’s an apt observation. Web 2.0 companies only seem to be making money via advertising and hoping to get bought because they generate a lot of eyeballs. MS is looking for ways to make money….long term. And also how to get more customers bought into their platform. Like Coulter said above…some nifty-neato Web 2.0 doo-dad ain’t gonna cut it. Scoble, this is the reason MS never took your “advice” on Flickr. Remind me again how that’s helped Yahoo make money?

  13. I think Microsoft hasn’t jumped into the Web 2.0 game because they haven’t figured out the best way to exploit it. I don’t mean that negatively, only that the only sure thing in terms of revenue with 2.0 is advertising and that is arguably not a stable, consistent business model. News.com is taking MySpace worldwide because they need sheer volume to build value for advertisers. I think we have yet to reach the ‘ah ha!’ moment when we figure out how to make the money on this model – until we do, we’re building yet another dot com bubble.

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