Newsletters
Business News for Technology Decision-Makers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Business Briefing Mobile Industry News Small Business Tech Trends More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Business Briefing
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Ballmer Says Microsoft Will Focus on R&D Amid Gloom
Ballmer Says Microsoft Will Focus on R&D Amid Gloom

By Frederick Lane
February 24, 2009 3:07PM

Bookmark and Share
Microsoft CEO Steve Ballmer doesn't expect an economic improvement anytime soon, and said the software giant will focus on research and development to come out stronger like RCA. Although Microsoft is committing $7.6 billion to Office, Ballmer said Office 14 won't be available until 2010. Ballmer also conceded that Microsoft's OS share has slipped.
 



The news last month that Microsoft was issuing its first large-scale layoffs was a clear sign that the economic downturn is being felt even in Redmond, Wash. In a conference call with financial analysts Tuesday, CEO Steve Ballmer made it clear that the software giant doesn't expect things to improve anytime soon.

The global economy, Ballmer suggested, is going through an "economic reset," in which financial resources are removed from the system, the economy finds a new level, "and then productivity and sort of innovation can then again drive economic growth."

"I don't think," Ballmer said, "and certainly the earnings reports we see from everybody, I don't think anybody is able to cut costs fast enough in any industry to maintain the profits of yesteryear. So you've got to ask, what does the business reset look like that goes along with the economic reset?"

The Importance of R&D

Ballmer told analysts that as part of its effort to understand the current economic climate, Microsoft asked some of its employees to read various company annual reports from 1927 through 1938. The goal, he said, was to find out who had done a good job handling the Great Depression.

"RCA, god rest them in peace, RCA become our role model," Ballmer said. "They actually kept investing in R&D through the Depression period, and in the post-Depression they dominated TV technology because they were really the only guys who had invested."

During his presentation, Ballmer listed the company's various R&D initiatives. Among other things, he said, Microsoft is committing $7.6 billion in R&D funds to Office, the company's flagship productivity suite. However, Ballmer added, the next version of the program, Office 14, will not be available this year as expected, but will be "generally available" in 2010.

OS Market Share Challenges

Ballmer framed much of his strategy analysis on Microsoft's relative market share in various business segments. The company's dominant position in personal-computer operating systems, for instance, is both a blessing and a challenge: It provides enormous revenue to Microsoft, Ballmer said, but it is also vulnerable to the slowdown in hardware purchases. He also conceded that the company's OS market share has slipped slightly in the face of improvements in Linux, Mac OS X, and even pirated copies of Windows.

"I think, depending on how you look at it, Apple has probably increased its market share over the last year or so by a point or more," Ballmer conceded. "And a point of market share on a number that's about 300 million is interesting. It's an interesting amount of market share, while not necessarily being as dramatic as people would think."

Ballmer doesn't think the challengers to Windows will be limited to PCs and, clearly, Google looms large in his strategic thinking.

"I assume we're going to see Android-based, Linux-based laptops, in addition to phones," he said. "We'll see Google more as a competitor in the desktop operating-system business than we ever have before. The seams between what's a phone operating system and a PC operating system will change, and so we have ramped the investment in the client operating system."
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Business Briefing
1.   Zebra Buys Motorola Enterprise Biz
2.   Politics Test Silicon Valley, Russia
3.   Motorola Sells Enterprise Biz to Zebra
4.   Why Netflix Got So Blazingly Fast
5.   Tech Stocks: From Giddy to Glum


advertisement
Is Zuckerberg Nuts To Buy Oculus VR?
$2 billion deal for unproven company.
Average Rating:
Will Nadella Launch an Office for iPad?
New Microsoft CEO may act this month.
Average Rating:
Google, Viacom Settle Copyright Battle
Bury digital hatchet over YouTube.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
IBM Offers Security, Disaster Recovery as SoftLayer Service
New disaster recovery and security services for SoftLayer clients are being added by IBM. Big Blue said the new capabilities will speed cloud adoption by alleviating concern over business continuity.
 
How To Beat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
After Heartbleed, OpenSSL Calls for More Support
The president of the OpenSSL Foundation says more support is needed from companies and governments that use its software so that it can better spot and fix flawed pieces of code such as Heartbleed.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Amazon 3D Smartphone Pics Leaked
E-commerce giant Amazon is reportedly set to launch a smartphone after years of development. Photos of the phone, which may feature a unique 3D interface, were leaked by tech pub BGR.
 
Zebra Tech Buys Motorola Enterprise for $3.45B
Weeks after Lenovo bought Motorola Mobility’s assets from Google for $2.91 billion, Zebra Technologies is throwing down $3.45 billion for Motorola’s Enterprise business in an all-cash deal.
 
CTIA Caves, Volunteers Kill Switch Plan
After bucking against the concept of a smartphone kill switch, the CTIA just announced the “Smartphone Anti-Theft Voluntary Commitment” to thwart smartphone thefts in the U.S.
 

Navigation
NewsFactor Business
Home/Top News | Business Briefing | Mobile Industry News | Small Business | Tech Trends | Business Intelligence | Sales & Marketing | Innovation
E-Commerce | CIO Issues | Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.