This all adds up to a slow-moving former juggernaut trying to reinvent itself in rapidly changing times.
Microsoft's Dependence on Office and Other Cash Cows
Microsoft still has lucrative divisions within the company that sell products in high volume to big companies through multi-year licenses. These cash cows such as the Business division (mainly the Office suite of products) and the ServerServer and ToolsTools division, will need to prop up the company as Windows 8 and Windows Phone fight for acceptance. Alles zu Server auf CIO.de Alles zu Tools auf CIO.de
"Microsoft has two stacks of products--one stack is strong and the other is questionable," says Wes Miller, research vice president at independent analyst firm Directions on Microsoft. "Products like Xbox Live, Server and Tools, Windows Azure, Windows Server 2012 and Office 365Office 365 for businesses will make enough money this year to prop up struggling parts of the company. But Windows 8, mobile and consumer adoption remain question marks." Alles zu Office 365 auf CIO.de
Veteran tech analyst Roger Kay contends that Microsoft's cash cows are, in fact, dwindling, leaving Microsoft more vulnerable than ever in 2013. Financial results for Microsoft's last quarter confirm that revenues for the Windows and Office divisions are both down year-over-year, Windows much more so than Office.