Feeds

MS licensing deadline boosts popularity of WinXP

Funny that...

  • alert
  • submit to reddit

Build a business case: developing custom apps

Microsoft's sales grew 10 per cent in its fourth quarter, helped by what is described as strong demand by business for Windows XP. This strong demand might under other circumstances be viewed as curious, considering businesses have battened down the hatches are are taking an extremely leery view of IT investment, but currently we have the small matter of the Licensing 6 31st July switch or die deadline. We'd have said 'strong surrender' was more appropriate.

Microsoft also has this month to run before 6 kicks in, so should benefit in Q1 from the last minute brigade. Desktop software sales (i.e. the Windows bit) were up 9 per cent to $5 billion, and you should note these will be licence sales, not necessarily installations. Microsoft's 'downgrade' programme allows - nay, encourages - businesses who're not ready to upgrade to license the new software in order to obtain the right to run new installations of the old software.

Away from the PC tax the picture was a little less positive for Microsoft. Desktop applications sales were flat, indicating that businesses feel able to resist gouging in that department (and why not? Office 97 still works), while enterprise applications managed a four per cent rise. These are both important to Microsoft, because despite appearances to the contrary there is a limit to what businesses are prepared to pay for Windows (no, we don't know what it is either). It would therefore dearly love to make Office a 'must have' in the same way as Windows is, and it needs strong growth in enterprise software.

Server software sales were up 13 per cent, but this could easily be accounted for by pricing and spec manoeuvring, rather than an outbreak of undying love for Windows 2000 Advanced Server.

Also in the flattish department we have Xbox sales, around the revised target of 3.9 million, but way below the original plan of 6 million. The overall picture remains of a company squeezing revenue from its existing franchises and not demonstrably succeeding in developing new ones. Yet.

Total revenue was $7.25 billion, up 9.9 per cent, so we should all be so unlucky, and net profit $1.53 billion. Microsoft took a charge of $806 million in the period to cover its catastrophic foray into the cable business. Which was an attempted breakout which has now demonstrably failed. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.