Eye on Microsoft

About this Blog:

This is Shane O'Neill's blog about Microsoft's corporate strategy and its various software and services — the good, the bad and the ugly.

Shane O'Neill

At Least Microsoft Admits We're in a Recession

to Technology Topics |

Apple often reminds me of that well-to-do friend who's always buying rounds of drinks and shows up one day with a new car at a time when everyone else is counting pennies. 

You admire his fun, cavalier spending and lack of anxiety, but you have to wonder: Where does it all come from? Will he run out? Isn't he worried? 

We are in an economy that is, by all accounts, on the verge of a recession. 

Is Apple worried? Not really. 

If it is, Mr. Jobs and company ain't showing it. One could argue they have no compelling reason to worry. The company did just experience a "record breaking" quarter for iPhone, iPod and Mac shipments with revenue and profits that beat their own forecasts. Earlier this month, Apple refused to budge on prices for its new MacBook and MacBook Pro laptops, while prices for PC alternatives dip everyday. 

"We're not economists," Jobs said during an earnings call that sounded too laid-back for these times. He added: "We may get buffeted by the waves a bit, but we'll be fine." 

God bless him. I've always admired people who don't panic, who are relaxed and self-assured even when the guns are on them. Patriots quarterback Tom Brady jumps to mind. Muhammad Ali. FDR. 

But is Steve Jobs FDR, or is he more like a certain erratic Republican candidate who believes "the fundamentals of our economy are strong"? 

Microsoft, on the other hand, is like all your normal friends: concerned and cautious about the economy, a bit hopeful and a bit solemn. 

The software giant did experience a 9 percent year-over-year increase in revenue for its Q1 2009, but took a hit on its most important division, the Windows client division (that is, Vista), which grew a paltry 2 percent. But despite the mostly good news, Microsoft made a point during its earnings call to concede that the economy is in trouble and they are worried about it. 

Microsoft described a three-part plan to endure the current economic crisis. It also lowered its revenue and earnings expectations for fiscal 2009. Microsoft's CFO Chris Liddell said an economic recovery during the second half of the fiscal year is "unlikely to occur" and that "there's a high degree of uncertainty in outlook based on the state of the economy." 

Ahhh, some good old-fashioned realism. Thank you for being worried Microsoft.

Hey, Apple probably will end up "fine." (Doesn't it always end up that way?)  But in my mind, Microsoft's respectful recognition of the looming recession and how it affects customers and partners trumps Apple's relative nonchalance.

Print
What is Tech Briefcase?
TechBriefcase is a new, free service where IT Professionals can Search, Store and Share IT white papers and content like this. Learn more
Bookmark content
Speed up your research efforts with content across the web.
Search and Store
Find the white papers you need. Create folders for any topic.
View Anywhere
Open your briefcase on your iPhone, tablet or desktop. Share with colleagues.
Don't have an account yet?

Browse CIO Blogs

See all CIO Blogs »

Cloud computing has emerged as one of the most significant game changers to hit the technology landscape in the past 20 years. With this massive expansion of the cloud, the perception of the IT organization is shifting from a utility player to a change agent. This eBook breaks down five ways progressive organizations are using cloud-based IT Management solutions to help drive innovation and become more strategic, including: adding visibility and analytics, speeding up time-to-value, lowering costs, improving prioritization, and providing a blueprint for future cloud deployments.
Read the white paper to see how IBM helped Citigroup deliver new services and enhancements to their 200 million customers faster.
There are 3 ways to modernize legacy applications: rewrite completely, acquire packaged solutions or migrate existing code. This paper explains why it's best to migrate and how IBM® Rational® software can help.
Accommodating specific lines of business can result in a hybrid ecosystem of applications and servers. The resulting complexity of this architecture makes for an environment that is costly to maintain and difficult to change when addressing new challenges.
This whitepaper will help you to define a mobile device passcode policy. Security managers must attempt to reconcile two opposing goals. They must: 1) create a passcode policy that is strong enough to protect the device if it is lost or stolen, while: 2) not annoying users with needless length or complexity.
This whitepaper, authored by The Radicati Group, looks at the key reasons organizations should consider moving to a cloud-based archiving solution. Email archiving solutions enable organizations to store, monitor, and collect electronic data exchanged by their users to comply with internal policies and regulations.
ATERNITY will showcase a 30-minute demo on how Fortune 500 companies are leveraging its award-winning FPI Platform to deliver a user-centric approach to Proactive IT Management.
For businesses to move forward and tap into the ever-expanding universe of Internet users and network-enabled devices, it's critical to learn how to make the transition to IPv6. Learn the critical steps your organization must take to make a seamless transition-and keep your business world connected.
Learn how IT teams can protect against spear phishing tactics. Harry Sverdlove, chief technology officer of Bit9 offers a frank discussion about spear phishing - the most common technique used in today's advanced attacks.
Learn how to build a solid business case for your migration to Red Hat Enterprise Linux so you can run leaner, innovate faster, be more flexible and own the New Now.
Social media isn't about you; it's about everything around you. As you consider how your customers want to communicate with you, social media is something that can't be ignored. But what should your strategy be? Is social media "just another channel?" What kind of a plan makes sense for your contact center and for your customers? Join our experts as they share their insight and research results.
Hardware tokens were a popular method of strong authentication in past years but the cumbersome provisioning and distribution tasks, high support requirements and replacement costs have limited their growth. The additional log-in steps that hardware tokens require and the resulting user frustrations have limited adoption and make them impractical for larger scale partner and customer applications.

Newsletter Sign-Up »

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all Newsletters | Privacy Policy