[plug] [link] Why WHG3 is terrified of OpenOffice.org and Linux

[Leon Brooks]

    http://www.theregister.co.uk/content/4/28128.html

    Microsoft SEC filing shows hideous losses except for Windows

    The mysterious shroud surrounding Microsoft's revenues was
    dispelled yesterday, when the company revealed that it is losing
    shedloads of money on everything bar client Windows, server and
    Office software.

    [...]

    For the period ended September 30th, the two cash cows of Client
    (i.e. Windows) and Information Worker (Office) produced operating
    income of $2.48 billion on revenue of $2.89 billion, and $1.88
    billion on $2.38 billion respectively. [one month!]

    Server Platforms performed modestly by these standards, but
    spectacularly by most other people's, chalking up an operating
    income of $519 million on revenue of $1.52 billion, but beyond
    that we have the basket cases. 

    MSN lost $97 million on $531 million, CE/Mobility was out $33
    million on $17 million revenues (always a good trick, this kind of
    stuff), and the home of Xbox, Home Entertainment, dropped $177
    million on revenues of $505 million. Business Solutions, which
    includes Navision and Great Plains, and is a sector Microsoft
    hopes will contribute great things in the future, lost $68 million
    on $107 million. 

So... it would be worth half a billion dollars *every*month* to Microsoft to 
stop OOo grabbing a quarter of the office suites market, and another 250 
million dollars *every*month* to stop Linux from glomming a `mere' 10% of the 
desktop market.

Shall we scope that out a bit? Assume BlackComb arrives in 2007 and no market 
grwoth; if by then Microsoft has spent anything less than 15 billion dollars 
to keep Linux's desktop market share down by 10% it will have been profitable 
for them. Ten percent of the desktop OS market (not counting Office) over 
five years is worth more than two dollars for every single man, woman and 
child on this planet to Microsoft.

Hats off to Linux and OOo for making startling progress in the face of 
pressure like that!

Cheers; Leon