The Three Big Microsoft Myths

From Bill Whyman (no, not Bill Wyman) of the Precursor Group, here are three big myths about Microsoft as it heads into its biggest product in a decade:

  1. It is just a PC-software company. “The facts show that isn’t true,” with 40% of revenue now coming from outside the core Windows and Office franchises.
  2. That Linux will kill Microsoft. Linux has gone nowhere on the desktop, and on the server is growing at the expense of Unix, not Windows.
  3. The Google myth — it competes with just 3% of Microsoft’s revenues.

[via Barron’s (again)]


  1. Myth #4: MSFT has a real plan to overcome the day the core 60% (see Myth #1) of its business becomes irrelevant or at least substantially devalued. People are going to upgrade to Office because of “Ribbons”? I don’t think so.
    Myth #5: Google and Apple are taking MSFT head on in businesses MS knows well, and owns.
    I could go on forever but there is no need. That botched Windows Live ‘Event’ and scared PR was very unbecoming to such a company and shows something MS doesn’t do well: FEAR.

  2. with regards to (2), this is (partially) true to date but is approaching a tipping point as some city governments consider dropping Microsoft. openDocument will further move the game against Microsoft – most of these large organizations are focused on Office, not Windows per se, and a push for an open alternative works against Microsoft.

  3. On #1, compare revenue versus profit….
    That 40% isn’t very profitable….

  4. If 40% of the revenue is non Windows/Office.
    I’m curious as to how much of the profits are non Windows/Office