I think Microsoft's strategy for the next couple of years should involve concentrating on Windows Mobile, since the handset segment is getting more competitive and the products get even more personalized.

In what way does Internet Explorer's declining market share lead to any loss of revenue for Microsoft?

Yes, Joe, LD has a valid question. How is IE's market decline going to lead to any loss of revenue for Microsoft?

I think loss of market share of IE to Firefox, Safari, Opera on Windows doesn't really matter. However if you count market share by web site hits on major sites then what scares them is lack of web browser market share to people browsing on iPhones, Blackberries, Wiis, Apple's, LinuxPCs (especially low cost ones). Basically people are going to see their home PC as a waste of space, consign it to the basement and never replace it. Ie no more operating system revenue for MS. Or if they do replace it, then buy a $200.00 Linux PC just for web browsing.

Linux preinstalls rocket to three per cent (28 Times more)
http://www.theinquirer.net/gb/inquirer/news/2008/08/01/linux-preloads-rocket-per-cent
LINUX has made headway in Microsoft's UK heartland, the PC sales channel. The number of machines shipped with Linux preloaded on them has multiplied a whopping 28 TIMES since Microsoft launched its Vista operating system in January 2007.
-------------------
It is good Symptoms.
The times are changing, is not it?

Firefox market share exceeds 20%, Internet Explorer dips below 70%
http://www.tgdaily.com/html_tmp/content-view-38653-113.html

It has been six weeks since Firefox 3 has been released and if we believe market share numbers provided by an ongoing survey of NetApplications, then it appears that Mozilla has had a successful launch with market share gains, especially at the expense of Microsoft’s Internet Explorer
------------------
Remember Firefox does not come pre-install

It is good Symptoms.
The times are changing, is not it?

others statistics
http://www.w3schools.com/browsers/browsers_stats.asp

Browser Statistics Month by Month
2008 IE7 IE6 IE5 Fx Moz S O
June 27.0% 26.5% 0.5% 41.0% 0.5% 2.6% 1.7%
May 26.5% 27.3% 0.7% 39.8% 0.7% 2.4% 1.5%
April 24.9% 28.9% 1.0% 39.1% 0.9% 2.2% 1.4%
March 23.3% 29.5% 1.1% 37.0% 1.1% 2.1% 1.4%
February 22.7% 30.7% 1.3% 36.5% 1.2% 2.0% 1.4%
January 21.2% 32.0% 1.5% 36.4% 1.3% 1.9% 1.4%

-----------------
Here Firefox have 41%

It is good Symptoms.
The times are changing, is not it?

Marco brought up an interesting point with the so-called Linux growth that many would indeed speculate from the Vista\Microsoft fiasco. Though this person is touting numbers and links showing his resources, I am quite courious to find out the longevity of this exodus to Linux.

I mean, once people find out that they can no longer play the robust 3D games like they can in Windows without using some overhead program such as Whine to run the older versions, or they find out that personally, Linux just sucks for them.

I know a few people out there that tried Linux only to realize the short-commings and run back to Microsoft to be, at least for them, more productive.

I am not much of a Vista fan myself, but it is improving where it once was before -- Regardless, Vista for the public concensus is a bust and there is nothing that Microsoft can really do about it now. Word of mouth carries a long sentence for ill-fated things, not just software, but in all things.

I also realize that many people wining about Vista is based upon hearsay and ranting that never tried it themselves too.

I don't think Linux is the answer for anyone, neither is Microsoft or Apple. But it would be interesting to find out what the fall-out will be with Linux with the "new growth."

In reality elsewhere, we seen Walmart and their basement low-budget, and to coin a word my friend says, "Public Assistant" boxes didn't fair so well and management decided to rip the Linux boxes off the shelves.

No, I believe the biggest enemy to Microsoft is indeed, Microsoft itself. It is also interesting to see what Xandros, a professional Linux solution which is far from free is going to do now that it acquired Linspire.

The browser analogy is a interesting indicator. While the decline of IE does not and will never hurt MSFT financially.

The rise of Firefox shows a willingness of users to expand their horizons beyond Microsoft. Personally I think IE7 is a huge improvement over IE6. But I prefer Firefox....I have been using using Firefox several years already. I just feel safer with Firefox.

What I would like to see, how many users are using Open Office on all platforms. Unlike Firefox the rise of Open Office will have a effect on MSFT financially.

Much has been talked of this being the year of Linux, detractors claim Linux fans say that every year. But I have noticed quite a bit of people are interested in dual booting windows with Linux and/or the use of Linux Live CD's. I have read the various Windows and Linux forums and dual boot is a popular subject.

You know its one thing for someone to spew numbers and say Linux has a 1% share. I would like to see how many Linux users dual boot with Vista...how many dual boot with XP...how many replaced Windows with Linux....how many are only using Linux "Live" CDs.

So another interesting survey would be how many use Windows only, how many use Linux only, how many use Mac only. More interesting would be, how many use all three operating systems?

I can't see how any of that could ever be tracked accurately. But if Firefox is at 20 - 30%, Apple is 8% and climbing to 10 to 12 % by next year as many predict. I have a hard time believing that Linux is only 1 % at desktop. Especially in light of the great success Linux has in the server sector.

* "once people find out that they can no longer play the robust 3D games like they can in Windows"

Those people have already figured it out. As you say, it's not one-size-fits-all.

* "without using some overhead program such as Whine to run the older versions"

It's Wine, not Whine, and while it has shortcomings, it also runs some Windows applications better, smoother, and more reliably than they run on native Windows.

* "I know a few people out there that tried Linux only to realize the short-commings and run back to Microsoft to be, at least for them, more productive."

Every platform has its adherents and its horror stories. Not all the water in the ocean has to be dumped on the same shore at the same time for the tide to come in.

* "I also realize that many people wining [sic] about Vista is based upon hearsay and ranting that never tried it themselves too."

A lot of people hate or love things they've never tried. Mark Twain said a long time ago that a classic is a book people praise but don't read.

* "I believe the biggest enemy to Microsoft is indeed, Microsoft itself."

Oh, yes. Of course. If Microsoft had their egos under control, they would see the groundswell to hang onto XP as a golden opportunity to evolve XP's security, give people exactly what they want without expensive hardware upgrades (and calling them idiots for not spending money they don't have just to upgrade to Vista), and keeping their lock on the PC market without skipping a beat.

But no, Microsoft spits in the faces of those who want XP and then wonder why Apple Mac is becoming more popular and desktop Linux is far more serious than ever.

Oh, well, it's entertaining to watch a powerful and feared giant shoot gaping holes in his own feet with a howitzer. Sad, but entertaining nonetheless.

The point is that these links are showing that things are changing-but it is solely the tip of the iceberg.
Then, what is the actual Iceberg?
The answer is ample and complex, so I will try to simplify it.
MS had an important role in the development of the world of informatics. It had good timing and it responded to our needs, MS let us (the costumers) get our freedom to overcome the oppression of old tyrants such as old IBM and others.
Human beings are interesting. We can renounce (willingly) to some of our freedom in return of something that we need, but only a bit of it and for a limited time.
The problem with some 'liberators' is that when they have absolute power, they frequently become tyrants-if you read history...
(in other words: we have replaced a product which was necessary but enslaved for other which is necessary but not so enslaved).
And MS is now the new Tyrant, while Open source and Google are the new liberators (Ok, ok, we are at the beginning of the campaign).
Question:
Could the new liberators become the new tyrants?
It's possible. However, I don't think so, because after the Tyrants, aristocrats (or whatever) comes Democracy, and the most similar to that are Open Source (election) and Google (vote) ONE CLICK and we are changing 'government'.
(in other words: we are replacing a necessary enslaved product for another which is necessary but in freedom).
------------------------------
Tech question:
Are MS' products very superior, irreplaceable or something like that?
NO
-----------------------
“I believe the biggest enemy to Microsoft is indeed, Microsoft itself “
Actually, of course, because MS is 'aiding' the progress of the unavoidable.

Very nicely put, Marco!

It's very hotly debated whether Google has already slipped into tyrant mode or not. All things considered, I tend to think they haven't. And yet, their actions in China show that a "do no evil" person who aids the tyrant isn't morally distant from the tyrant.

But "open source", or more precisely, software released under the GPL, or perhaps Apache, or zlib, or other such license can never be tyrannical because it's not an entity. It's the voice of the underground who reject the tyrant; it's the voice of the free who wish to remain free; its the voice of those who openly reject tyranny. It's freedom from tyranny.

Freedom is therefore the antithesis of tyranny. But it requires constant vigilance. I was recently told that freedom is like taking a shower: you can't take one shower and then remain clean forever. You must constantly bathe to remain clean, and you must constantly fight for freedom to remain free.

Especially as the tyrants ramp up their attacks, and as their vassals, who exchanged freedom for security and now deserve neither, support their tyrants.

And as Gandhi said, "First they ignore you. Then they laugh at you. Then they fight you. Then you win." The FSF-inspired "open source" movement is caught between laugh (e.g. the "freetard" label) and fight (e.g. software patent threats). It's a sign that old empires are scared to death that winning is around the corner.

Peace!

Joe, do you remember how Steve Ballmer laughed at the iPhone? That tells you something, doesn't it?. Don't laugh at Android, not yet.

Marco your comments are as stupid as usual. Please do us a favor and go post on anti-MS sites so we can enjoy Joe's stories and comments.

Marco to sum you up, you are not only a waste of carbon matter...but indeed a waste of bits too!

Google made 6 billion last quater Marco, oh no, you better start an anti-Google post chain also. I can see Marco's next post, someone switched their search engine from Google to AskJeeves, and got a refund! hahah

Scouts out!

@TK

In the past as I do now, I just scroll passed the "Marco" posts. There is nothing, absolutely nothing of value in what he or she comments about. I got tired of this person minimizing others long time ago...

Philosopher: Thanks!
"Freedom is like taking a shower: you can't take one shower and then remain clean forever."
Really I liked the analogy

-------------------

@DarkDominion

Thanks for the sanity check, you are right, Marco is irrelevant and overcome by events.

Scouts Out!

VCSY's CEO Richard Wade stated in a 10k four years ago that Microsoft was VCSY's only competition. Now that Microsoft settled with VCSY, hmmmmmmmmm what will the future bring? LOL!

These are dark times indeed for Microsoft. I remember the days when they could afford two or three shills per article. Guess there aren't that many Acer Ferrari laptops to go around this year.

Ha,ha, good one Geraldo.

-----------------------------
http://www.sec.gov/Archives/edgar/data/789019/000119312508162768/d10k.htm#tx31450_3
ANNUAL REPORT ON FORM 10-K

Challenges to our business model may reduce our revenues and operating margins.
"Some of these firms may build upon Microsoft ideas that we provide to them free or at low royalties in connection with our interoperability initiatives. To the extent open source software gains increasing market acceptance, our sales, revenue and operating margins may decline."

---------------------
"firms may build upon Microsoft ideas"

What MS Ideas??? MS Now only buy, copy or Steal.

"our sales, revenue and operating margins may decline."

Philosopher :And as Gandhi said, "First they ignore you. Then they laugh at you. Then they fight you. Then you win."

@Marco, he does remind me of Hans and Frans from Saturaday Night Live though. Which is kind of funny. Hehehe.

To further explore Marco's link.

"A number of commercial firms compete with us using an open source business model by modifying and then distributing open source software to end users at nominal cost and earning revenue on complementary services and products. These firms do not bear the full costs of research and development for the software."

Oh my gosh! Is this from the same company that talked trash about open source software a few years back? Maybe, just maybe if they had actually spent time figuring out how to take advantage of open source rather than halting the industry they'd be better positioned. Like you know IBM, Sun, HP and others are now (RedHat, MySQL, JBoss, etc etc etc).

The following line: "These firms do not bear the full costs of research and development for the software." although used to put some "blame" on those open source companies actually puts blame on top Microsoft management. To me it reads to things:
- Microsoft management placed its development team in a position in which they need to reinvent the wheel every time. To use other's ideas is not bad nor dishonest. To use them without their authorization or by making them our own is. Microsoft has been found guilty of the later two quite a few times.
- Microsoft management has failed to produce a sustainable service model. It has developed somewhat of a software rental model with corporations and also has a constant input stream from OEM sales. But that aside its software offers me no extra support without the involvement of Microsoft partners.

Thus for adding unnecessary production overhead to its software and failing to produce a sustainable service model, Microsoft's top management should be fired. Period. As always they have followed rather than lead the way. It was clear to them years ago that the winds were changing. That this open source thing could and would catch on. But instead of taking the lead they let others like IBM and Sun (even Apple) take the lead and now it is them playing catch.

And to even further explore Marco's link:

* "A number of commercial firms compete with us using an open source business model by modifying and then distributing open source software to end users at nominal cost and earning revenue on complementary services and products. These firms do not bear the full costs of research and development for the software."

This statement makes it sound like it's something bad when it's not. Microsoft has heavily borrowed from BSD source without bearing the full costs of research and development. Sun R&D creates their own Sparc chips, and Apple R&D creates system designs, and yet Microsoft and the Linux distros don't bear the full costs of research and development for the platforms they run their software on.

So what? Thanks, Marco and Gerardo, for pointing this out to me. It yet another panicked spin-doctor spiel from an empire that is seeing its glory days fading and is trying to make all competition illegal. It's their only hope for continued growth.

What the competition doesn't have that Microsoft Windows has almost a virtual monopoly on; Malware.

Windows Vista security 'rendered useless' by researchers

http://searchsecurity.techtarget.com/news/article/0,289142,sid14_gci1324395,00.html#

Quote from the link;

"Two security researchers have developed a new technique that essentially bypasses all of the memory protection safeguards in the Windows Vista operating system, an advance that many in the security community say will have far-reaching implications not only for Microsoft, but also on how the entire technology industry thinks about attacks.

In a presentation at the Black Hat briefings, Mark Dowd of IBM Internet Security Systems (ISS) and Alexander Sotirov, of VMware Inc. will discuss the new methods they've found to get around Vista protections such as Address Space Layout Randomization(ASLR), Data Execution Prevention (DEP) and others by using Java, ActiveX controls and .NET objects to load arbitrary content into Web browsers.

By taking advantage of the way that browsers, specifically Internet Explorer, handle active scripting and .NET objects, the pair have been able to load essentially whatever content they want into a location of their choice on a user's machine.

Researchers who have read the paper that Dowd and Sotirov wrote on the techniques say their work is a major breakthrough and there is little that Microsoft can do to address the problems. The attacks themselves are not based on any new vulnerabilities in IE or Vista, but instead take advantage of Vista's fundamental architecture and the ways in which Microsoft chose to protect it.

This stuff just takes a knife to a large part of the security mesh Microsoft built into Vista," Dai Zovi said. "If you think about the fact that .NET loads DLLs into the browser itself and then Microsoft assumes they're safe because they're .NET objects, you see that Microsoft didn't think about the idea that these could be used as stepping stones for other attacks."
--------------------------------------------------
This is not good for Vista users.