Windows Vista financial impact seen as muted for Microsoft

“It’s taken five years for Microsoft Corp. to roll out a new version of its Windows operating system, so it’s understandable that Chief Executive Steve Ballmer is traveling to New York Thursday to celebrate its release by ringing the bell at the Nasdaq stock market,” John Shinal reports for MarketWatch.

Shinal reports, “But elsewhere in Manhattan, among the Wall Street analysts who cover Microsoft, the shipping of Vista to corporate customers is being greeted with a collective yawn.”

“While there is some debate among industry watchers and financial analysts about how fast corporations will switch to Vista, almost no one is predicting that its launch will have much of an impact on Microsoft’s finance, especially for the fiscal year ending in June,” Shinal reports. “Microsoft and the personal computer market that Windows dominates have changed dramatically in five years… While the most visible change is that the giant of Redmond, Wash., is no longer run by co-founder Bill Gates, no one on Wall Street doubts the abilities of Ballmer, who has been CEO since 2000.”

“Four out of every 10 dollars of Microsoft’s sales now come from products other than Windows and Office,” Shinal reports. “So it’s understandable that no one is expecting Vista to have anywhere near the impact of the release of Windows 95, the revolutionary product that gave users of Microsoft’s operating system the look and feel that previously had been the exclusive pleasure of users of Apple Computer Inc.’s Macintosh PCs.”

Full article here.

“Apple Computer has released fresh iterations of its OS X operating system on a regular basis, leaping ahead of Windows in security and usability by making regular, incremental improvements,” Brian Caulfield reports for Red Herring. “Meanwhile, Microsoft struggled to lash a fresh batch of innovation together with the massive amount of software and hardware the Windows operating system has to orchestrate. Windows was already so sprawling that Sun Chairman Scott McNealy once referred to Windows as a ‘welded shut hairball.’ ‘It’s being driven by the inability of debugging and development efforts to scale up,’ said Linux advocate Eric Raymond of Vista’s many delays. ‘In other words, Vista is too big to work.'”

“Microsoft’s position atop the PC world makes it a very different company from Apple,” Caulfield reports. “However. Apple’s tight integration of hardware and software means it can move more quickly, and secretively, than Microsoft.”

“Nevertheless, Microsoft will have to find a way to move quicker. Look for the company to introduce a new version of Windows within two years that incorporates small, incremental improvements,” Caulfield reports.

Full article here.

MacDailyNews Take: If no one on Wall Street doubts the abilities of Ballmer, then everyone on Wall Street is an idiot. It’s plain to see that Ballmer is presiding over the fall of Microsoft. May he stay as CEO forever! Obviously, nothing has changed on the Windows front. Windows remains a grotesque, upside-down and backwards, fake Mac produced by a tasteless, derivative, ethically-challenged company.

Related articles:
Microsoft Windows Vista developers used Apple Macs for inspiration – November 27, 2006
Microsoft’s Windows Vista is basically Microsoft’s version of Mac OS 9.3 – October 11, 2006
Microsoft Windows Vista: If you can’t innovate… try to impersonate Apple’s Mac OS X – August 10, 2006
Ballmer: I’m Microsoft’s ‘primary champion of innovation’ – July 27, 2006
Microsoft botches another copy job: Windows Vista Flip3D vs. Apple Mac OS X Exposé – June 26, 2006
Windows Vista rips-off Mac OS X at great hardware cost (and Apple gains in the end) – June 13, 2006
Computerworld: Microsoft Windows Vista a distant second-best to Apple Mac OS X – June 02, 2006
Thurrott: Microsoft going to get eaten alive over Windows Vista’s resemblance to Apple’s Mac OS X – March 09, 2006
NY Times’ Pogue on Gates’ CES demo: Most of Vista features unadulterated ripoffs from Apple Mac OS X – January 05, 2006
Analyst: Windows Vista may still impress many consumers because they have not seen Apple’s Mac OS X – January 05, 2006
Apple’s talent and innovation vs. Microsoft’s hype – October 25, 2005
Microsoft’s Windows Vista strives to deliver what Apple’s Mac OS X already offers – October 10, 2005
Thurrott: many of Windows Vista’s upcoming features appeared first in Apple’s Mac OS X – September 26, 2005
Microsoft’s Ballmer: It’s true, some of Windows Vista’s features are ‘kissing cousins’ to Mac OS X – September 18, 2005
PC World: Microsoft innovation – an oxymoron – September 14, 2005
eWEEK Editor Coursey: Longhorn so far ‘looks shockingly like a Macintosh’ – April 25, 2005
Due in late 2006, many of Windows Longhorn’s features have been in Mac OS X since 2001 – April 25, 2005
Microsoft’s new mantra: ‘It Just Works’ ripped straight from Apple’s ‘Switch’ campaign – April 22, 2005
Apple CEO Steve Jobs on Microsoft’s Longhorn: ‘They are shamelessly copying us’ – April 21, 2005
Microsoft’s Windows Longhorn will bear more than just a passing resemblance to Apple’s Mac OS X – April 15, 2005
Steve Jobs: Microsoft copied original Apple Mac with Windows 95, now they’re copying us again – February 08, 2005
Novell CEO: ‘Microsoft sucked $60 billion out of IT industry that could have used for innovation’ – September 13, 2004
Apple CEO Steve Jobs: Mac OS X Tiger ‘is going to drive the copycats crazy – June 28, 2004
PC Magazine: Microsoft ‘Longhorn’ preview shows ‘an Apple look’ – May 06, 2004
Charles Arthur: Microsoft’s definition of ‘innovation’ different from everyone else’s – April 27, 2004
Windows ‘Longhorn’ to add translucent windows that ripple and shrink by 2005 – May 19, 2003


  1. MDN says “May he stay as CEO forever! Nothing has changed on the Windows front. Windows remains a grotesque, upside-down and backwards, fake Mac produced by a tasteless, derivative, ethically-challenged company.”

    So, MDN, what is your point?? People have been buying crap for years and will continue to do so. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” /> We just have to learn to smile a coy smile and shake our heads sadly when we hear of a windows person having trouble.


  2. It’s difficult to believe that Wall Street types are so behind Ballmer. What has he done? The X-box that doesn’t bring in a profit, 5 years and umteen millions for Longhorn, Zune with no future, flat stock price. He must be good to do all that.

  3. “…the look and feel that previously had been the exclusive pleasure of users of Apple Computer Inc.’s Macintosh PCs.”

    Notice the author is really very intelligent. He realizes that using the Mac OS is a pleasure, and I don’t think anyone has ever said that about a Microsoft product…

  4. I`m sorry to say that these “anal”yst are wrong. It will have an enormous effect on MS finances. The average spending on large account users wil grow with 50% due to the introduction of the Enterprise CAL from Microsoft. Microsofts has packaged the infrastucture around Vista in such a way that most Corporations will feel that they have to go for Vista Enterprise. The new CAL is another $150 per user and that comes in addition to the 5% pricehike on the Desktop platform. As a Mac user of 22 years it hurts to see that even though their technology stinks, they are shrewd businessmen. If they know anything it is how to drain corporations of more an MORE money

  5. MDN, you missed the important part! While it may true that 40% of Microsoft’s sales dollars “come from products other than Windows and Office,” sales dollars are revenue, not profits. XBox still doesn’t make a profit, and neither will Zune!

    If Vista doesn’t do well, Microsoft could be in bigger trouble than most people realize. Your prediction of Balmer presiding over Microsoft’s downfall could be more accurate than you thought. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  6. “I wish They would not use donkey Boys picture ,I can not look at it. Its just grose.I always thought this photo was fabercated But this morning at 930 a.m. I saw This exact pose after he rang the bell at the Nasak What a DONKEY.”

    I wish they would not use donkey Boy’s picture. I can not look at it. It’s just gross. I always thought this photo was fabricated. But this morning at 9.30 I saw this exact pose after he rang the bell at the Nasdaq. What a DONKEY.

    Spot the differences.

  7. Sorry to break in here and change the subject-you know I never do that-but Mr. Fedex just dropped off a coupla iPods-pink for the sweety and 30gig for the eldest son-and I had to share it with someone. Santa gonna be the man this year!

    OK, back to Windows Vista, which ironically you CAN see through, but it ain’t a pretty view…

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.