Research and Markets: Microsoft's Six Software Businesses Report Examines Its Transition From a Product and Technology Focused Company to a More Services Orientated One
Posted on: Thursday, 3 January 2008, 06:00 CST
Research and Markets (http://www.researchandmarkets.com/reports/c78353) has announced the addition of "Microsoft's Six Software Businesses Go "Live"" to their offering.
From the taxonomy perspective, this report looks at Microsoft as playing in all six software-industry markets. From an SEC reporting perspective, Microsoft lists four product-centric operating segments. But it is the "other" business segment and the fifth segment, online services, in Microsoft's line-up that, in the publisher's view, is the key to Microsoft's continued performance at the level the investment community has come to expect. Online services relates to all of the product groups. Online services can act as a channel for all Microsoft product functionality. Online service is all about going "Live."
It is believed it is increasingly important for Microsoft to act more as a single company and for users to view Microsoft as offering a single strong value proposition based on six product businesses (or more, depending on acquisitions) merging into one services offering. This is true, however, only if you assume (as we do) that Microsoft's still unspoken strategy is to become a services company. If that is not the case, if Microsoft prefers to be a strong software technology provider equivalent to Cisco in communications, Intel in chips or Adobe in document management, it could succeed. But it would not play the dominant role in the information technology (IT) market that it plays today.
We think the services approach is Microsoft's strategy of the future because, hidden by the SEC segmentation but revealed by a six-market taxonomy perspective, investors will see that Microsoft is already looking at Windows and Office as end games. It is looking at ways to change the IT user's total experience to spur the next decade of Microsoft growth. In addition, we believe Microsoft will pre-empt the open source software (OSS) movement over the next decade--by joining it. The current price of $33 doesn't fully reflect our expected long-term scenario for Microsoft. Our current fair value estimate is $41.
"Microsoft's Six Software Businesses go 'Live'":
- Examines why Microsoft stock will act more like a blue chip than a high-tech high flyer over the forecast period.
- Explores Microsoft's transition from a product/technology focus to a services orientation and why the transition will likely take longer than expected.
- Predicts the impact of market reactions--and overreactions--to everything from new Microsoft product features and security flaws to Microsoft's change in channel strategy and other business and market dynamics.
- Analyzes Microsoft's position and play in the ERP, standalone, business intelligence, database and tools, middleware and tools and operating system software markets.
Products covered in this report include:
- Vista
- AS/400
- Windows Server 2003
- BizTalk Server
- SQL Server
- Duet
- IBM Notes
- NetWeaver
- QuickBooks
Contents:
Summary
Industry and market overview
Sector analysis
- Applications
- Infrastructure
- Other
Other perspectives
Company overview
Positioning and products
Opportunities and threats
Financials and valuation
Notes and resources
Tables and charts included in this report include:
- Figure 1: Software-market-taxonomy view of Microsoft revenue/profit
- Table 1: Comparison of Microsoft 10-K and pro forma revenue estimates, FY 2005 and FY 2006, by Microsoft FY 2006 segmentation and by Microsoft 2007 segmentation ($B)
- Table 2: Microsoft CY 2006 financial fast facts
- Figure 2: Microsoft is everywhere in the software market
- Figure 3: CY 2006 ERP application suppliers' revenue by geography ($B)
- Figure 4: Microsoft's evolving "one company" strategy
- Figure 5: Comparison of Microsoft and competitive software supplier revenues
- Table 3: Comparison of leading software suppliers' primary product stacks
- Table 4: Microsoft long-term valuation model
For more information visit http://www.researchandmarkets.com/reports/c78353.
Source: Business Wire
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