On 08/07/11 22:53, Mecki Foerthmann wrote:
> Microsoft isn't struggling and they license Sharepoint only for named
> users and still sell it!

Are you sure :-) (MS isn;t struggling, that is ...)

They've had several very high profile reverses lately. The obvious
example to me is the London Stock Exchange, where their system failed
publicly and dramatically, and has been replaced by a new system that is
both faster and cheaper. I can't name any more examples off the top of
my head, but I know there have been a fair few.

I'm seeing a bunch of reports that their behaviour is typical for a
company spiralling into Chapter 11 - some estimates are as close as 2012!

They're up against serious competition from Apple and Linux now - for
the first time in many years they're actually having to compete, and
compete hard.

And although they look profitable, they have long had a reputation for
massaging the figures. Except now it looks like the figures are coming
home to roost. And their big problem is the mismatch between where the
expenses are incurred and the income is made. From what I can tell, the
American operation is running at a loss, but overseas operations are
profitable. The problem is that overseas operations are in tax havens,
so while it looks like they're making more than they're spending, the
money is not in the right place. And as soon as they repatriate the
money, they will incur tax liabilities that will drive them into the red.

In other words - America is not profitable. Bankruptcy is inevitable if
they don't repatriate profits. But if they do repatriate profits, Uncle
Sam will want his cut, which they can't afford, so bankruptcy is
inevitable...

If you want to trust Microsoft and rely on them, fine. But what's the
saying? "trust, but verify"? What will you do if MS's activation servers
go down, and Windows et al stops working?

Cheers,
Wol
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