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Microsoft remains shackled to strategy after $900M loss

  1. #1

    Microsoft remains shackled to strategy after $900M loss


    Computerworld - Microsoft's massive $900 million Surface RT gaffe may have been, as one analyst put it, "an absolute abomination" in operations, but the company will not -- cannot -- give up on the ARM-based platform, experts contended today.
    "They haven't given up, not yet," said Frank Gillett, an analyst with Forrester Research. "Maybe in a year or two if, in fact, they're still struggling, but this is a determined company with a lot of cash and a large market presence."
    Yesterday, Microsoft took a $900 million charge against earnings to account for a drop in the value of its remaining Surface RT inventory. As explained by Amy Hood, the company's new CFO, in a call with Wall Street Thursday, the charge accounts for a 25% to 30% discounting of the tablet as well as a write-off of an unspecified quantity of components and accessories, likely including some already-purchased parts that have not yet been used to assemble more devices.
    But the company, which has repeatedly confirmed that it will remain in the hardware business, gave no hint that it would either dump the Surface RT specifically or scale back its plans to become a devices-and-services vendor.
    Likewise, Microsoft will keep working the Windows RT side of the street because ARM, whose processors power virtually every smartphone, is critical to the company's phone strategy. With Microsoft bullish on its ability to merge the code bases of Windows Phone and Windows on the desktop, it would be idiotic to walk away from Windows RT.
    Microsoft remains shackled to strategy after $900M 'absolute abomination' of a blunder - Computerworld

    If M$ switches to ARM we can say good buy to all legacy desktop programs.

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  2. #2


    Posts : 835
    Win 8.1 Pro


    and if they do that,, they are only going to make way for Linux to succeed.
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  3. #3


    Quote Originally Posted by Tepid View Post
    and if they do that,, they are only going to make way for Linux to succeed.
    If M$ succeeds there will be no X86 hardware to run your legacy programs when your hardware goes south so do your legacy programs it will be tough to find non ARM hardware. It did not take long for IDE hds to fade out.
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  4. #4


    Posts : 1,925
    Windows 8.1 Pro


    ARM devices won't replace x86 on the desktop anytime soon, nor will it replace workstation laptops, or high end servers. What it will do is replace low-end tablet, netbook and power conscious server platforms. ARM just doesn't have enough power to do things like run virtual machines, for instance. And it may never. ARM is what it is because it's low power. You start adding all those features, and it won't be low power anymore.

    The whole point of this is to get rid of platform dependency. It won't matter what CPU it's running.
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  5. #5


    Posts : 835
    Win 8.1 Pro


    Nah, I doubt that, if MS ends up locking down all systems and going the route of Apple
    Trust me, 2 things will happen..... Android will step in for some things and Linux will fill the gap on Desktops
    You will definitely see a huge increase in Linux Consumer products.
    Now that Steam is on Linux, it would be a no brainier, and Linux would get a lot more dev support on 3rd party apps.

    The only things holding Linux back from full consumer use and support is the Linux community itself and developers.
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  6. #6


    The only thing that is holding Linux back that I see is developers. Developers are what is holding back RT at this time if M$ can turn that around look out. Walled gardens with no end in sight.
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  7. #7


    Quote Originally Posted by Tepid View Post
    The only things holding Linux back from full consumer use and support is the Linux community itself and developers.
    Agreed - The Linux community is too diverse to be effective IMHO
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  8. #8


    Quote Originally Posted by Superfly View Post
    Quote Originally Posted by Tepid View Post
    The only things holding Linux back from full consumer use and support is the Linux community itself and developers.
    Agreed - The Linux community is too diverse to be effective IMHO
    That diversity can make Linux more appealing because no one has complete control over the OS as M$ does.
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  9. #9


    Posts : 1,925
    Windows 8.1 Pro


    More appealing to whom? The paranoid and schizophrenic? Commercial software developers want a strong entity to stand behind the OS, and say this is what it is. They don't want to have 25 versions to support from 25 different entities, each with various configurations and environments.

    On top of that, nobody wants to base their companies future on an OS in which half of it's user base is actively trying to destroy the other half. And by that, I am referring to the Open source versus Free Software camps. Every so often RMS cries wolf about some new critical threat to the freedom of the universe and sends out his legions of followers to demand everyone stop using whatever it is that has finally started gain some successful traction in business, and risks open source actually making some inroads.

    Linux will never take over the market because it can never take over the LINUX market...
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  10. #10


    Posts : 5,360
    7/8/ubuntu/Linux Deepin


    Never say never. Looks like China Unicom is interested in being a launch partner for ubuntu phone next year. If that happens, it could be interesting.
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Microsoft remains shackled to strategy after $900M loss
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