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  Frankly Speaking: For Microsoft, the pain is just beginning
Time: 08:41 EST/13:41 GMT | News Source: ComputerWorld | Posted By: Kenneth van Surksum

Microsoft cuts 5,000 jobs. That's the big news of the week. Not just because the layoffs will cut one in 20 of Microsoft's 91,000 employees. Not only because it signals just how hard Microsoft has been hurt by the failure of Vista and by shifts in the way big customers license and use software. Not even because of the grim sign it represents for the rest of the IT industry.

No, it's big because it means Microsoft has begun to hit bottom.

And it's about time. For the past couple of decades, we've been referring to Microsoft as the new IBM. But Microsoft has never learned the lessons of the original IBM — not even the ones that Microsoft forced Big Blue to learn.

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#1 By 20505 (216.102.144.11) at Sunday, January 25, 2009 11:38:16 AM
I suspect that the guy that wrote this article never ran a business. He is a moron.

IBM and MS are not now and never have been equivalent business models. MS tries to anticipate changes in the business market like all other businesses. Sometimes they guess right and sometimes they guess wrong.

For his information, disassembling a business that has been as successful as MS's has significant potential ramifications. A measured approach to tweaking one of the premiere businesses in the world is a very reasonable approach.

#2 By 8556 (12.210.39.82) at Sunday, January 25, 2009 12:19:03 PM
The writer took some bad acid. That's why he experienced the IBM flashback and confused his illusion with reality.

#3 By 113862 (74.204.153.254) at Sunday, January 25, 2009 05:56:44 PM
Microsoft lays off a small fraction of its work force, and from what I hear, its from a division or two that doesn't bring in much revenue anyway (e.g. revenue does not cover cost), and for that, it's hitting bottom???

That's not bad acid, that's some really good acid. (That, or the writer slept through accounting class....)

#4 By 113862 (74.204.153.254) at Sunday, January 25, 2009 05:58:18 PM
oops...sorry for the extra post...isp connection burped...

This post was edited by fewiii on Sunday, January 25, 2009 at 17:59.

#5 By 9589 (76.4.22.39) at Monday, January 26, 2009 03:44:04 PM
Well, heck it must true - it is coming from Computer World after all!

Meanwhile, IBM has sold off major divisions of its company about every other year for the last decade when it found that it simply couldn't compete or worse that division was losing money. It was desktops, laptops and hard drives over the least several years. Expect them to sell off their Intel based server business in the future. HP and Dell are eating its lunch in that area. And with the acquisition of EDS by HP, expect that IBM will begin to take a hit in their service division as well.

If it wasn't for their complete monopoly of mainframe hardware, software and services, they would be in trouble. I guess the EU is too busy trying to steal from Microsoft again to notice.

#6 By 15406 (216.191.227.68) at Tuesday, January 27, 2009 12:58:52 PM
#5: One of these years you'll eventually understand. It's not against antitrust law to have a monopoly. It's illegal to use that monopoly to crush competitors. That's the key point. IBM doesn't do that. Microsoft does. Funny how the pro-MS crowd always seems to "forget" that.



 

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