Microsoft is in better shape than most people think, says Bernstein report

By on December 27, 2011, 3:00 PM

Microsoft is in far better shape as a whole than most people perceive. A 44-page report from Bernstein Research takes an in-depth look at the company’s financial situation and outlines a few possible scenarios regarding potential threats from tablets, alternative operating systems and cloud computing.

As it turns out, the company is in a good position and should be able to avoid any dire situations.

According to the report, today’s share price is reflective of a scenario in which the company’s core Windows / Server / MBD division never grows, the online division continues to drain money indefinitely and management ruins value with poorly-decided acquisitions and investments.

As Bernstein senior analyst Mark Moerdler put it, he doesn’t believe such a scenario will ultimately play out and feels that any potential threats are manageable.

With regards to tablets, Bernstein estimates that over 200 million units will ship by 2014. Tablet success will cannibalize PC sales to some degree but the report concludes that users will ultimately be buying tablets in addition to PCs, not replacing them. Furthermore, the company expects a large segment of PC sales to come from emerging markets that might not have the extra cash to spend on “luxury” tablets.

But then again, we must not forget that Microsoft is bringing Windows 8 to tablets as well. This will likely be an attractive option for enterprise users in part based on compatibility with existing applications. Microsoft is planning a public beta release of Windows 8 for February; no final release date has been announced as of yet.




User Comments: 5

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lawfer, TechSpot Paladin, said:

I hate to be the *******, but I don't think there was ever any doubt...

The way I see it, these "people" that supposedly think otherwise, are nothing but fabrications companies like Bernstein Research use as an excuse to find something to "disagree" with. (That is not to say their research is false, or lacking; just that what they reported is, you know, sort of widely known.)

amstech amstech, TechSpot Enthusiast, said:

The world runs on IBM/Microsoft Server based solutions.

Not good with computers? Get an Apple.

Clrabbit said:

World runs on MS servers? I'm assuming you most be talking about corporate servers or something.

Since most web sites are running on Linux servers.

last time I checked Microsoft?s made up a little over 15%, and pretty much all of the worlds super computers are some form of Linux.

From were I stand it seems more like Gnu/Linux/BSD/* Runs the world.

Guest said:

15% is a bit exaggerating don't you think?

It's more like 64% Linux based and 36% MS based.

[link]

Guest said:

Linux, GNU and BSD are all open-source operating systems. It's no surprise consumers and enterprises alike use these OSes, they allow users to customize them however they want without a hungry giant like M$ breathing down their necks.

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