Feeds

Poker-faced Ballmer explains Google beating plans

Send in the marines

Remote control for virtualized desktops

When you report annual revenue of $60bn you'd expect Wall St would give a little credit where credit's due. Not take your stock price outside and rough it up.

Yet, a pounding it got last Friday from analysts concerned by increasing costs and ongoing losses at Microsoft's online business - MSN, Windows Live, Live Search and Microsoft Advertising.

The online business (OLB) reported a $1.2bn annual loss thanks to substantial spending on R&D - up 14 per cent for the whole company to a record $8.6bn - and increased marketing activities to promote Windows Live and Live Search among consumers to whom the internet means Google.

So it won't have helped when, on the eve of Microsoft's annual Financial Analysts Meeting, where senior management explain how they'll make stock holders even richer in the coming fiscal year, that the executive leading its online strategy just suddenly quit after 16 years with the company and less than two years since taking charge.

Not exactly a ringing endorsement, and a turn of events that saw Microsoft's stock take its second plunge in two weeks - down around seven per cent on Thursday.

Time to send in the marines, or one ex-marine in particular - chief executive Steve Ballmer - packing some shiny weaponry in the form of demos. Dazzle the money men and convince them Microsoft's online strategy is - contrary to perceptions - not a money pit that's failing to increase market share in search of advertising, and its strategic gambit for success - the purchase of number-two player Yahoo! - has not degenerated into an embarrassing soap opera.

"With [recent] organizational changes, it seemed like today was a good day for me to get in front of you with the topic [online and search]," Ballmer said referring to Johnson's departure and the fact he now has direct responsibility for Microsoft's separate Windows Live and OLB activities.

Microsoft OLB spending screenshot, by Microsoft

Spending up across most categories for Microsoft Live Search and Advertising

"It made sense to have the person talking about the big investment we were making online was going to be here in three weeks," Ballmer said.

Ballmer talked tough, telling analysts to brace for more losses from OLB as it "antes up" in R&D and marketing around Live Search and Microsoft Advertising. These are the two areas in OLB seeing the biggest increases in spending in what Ballmer called a "two-horse race" against Google.

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
BIG FAT Lies: Porky Pies about obesity
What really shortens lives? Reading this sort of crap in the papers
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
prev story

Whitepapers

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.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?