Software growth points out Microsoft business strategy shortcomings

Jul 6, 2007 17:28 GMT  ·  By

As far as pure statistics go, both Internet Explorer 7 and Windows Vista are delivering a superb performance for Microsoft. And it is only fair that the two products experience growth hand in hand as they are practically joined at the hip. Numbers published by Market Share by Net Applications reveal that IE7 and Windows Vista are expanding their user base in tandem, meaning that the increasing adoption of Microsoft's operating system is in turn driving the take-up of IE7.

Internet Explorer 7 jumped from 31.26% to 32.02% from May to June. The operating system increased its share from 3.74% in May to 4.52%. This translates into a 0.76% growth for IE7 and 0.78% for Windows Vista. This is of course not a coincidence. IE7 is a packaged deal with Vista, built into the operating system. In this context, a part of the percentages illustrating the growth of the browser and operating system are connected. Looking at a bigger picture, Microsoft revealed that the Office 2007 System is also performing in accordance with the initial predictions.

But all roads lead to Windows Vista for Microsoft. Outside of its main cash cows, marketed as a bundle under the slogan "Better Together" Microsoft proves that it is essentially a software company. With the exception of the Wow, Microsoft's businesses are modest to say the least. What if the initial vision of a desktop in every home has evolved? What if the PC era is indeed over? What if the future is exclusively online?

Microsoft has attempted to diversify its business. The Zune and the Xbox 360 console are just such examples. And in turn the Office pillar is shaking. OpenOffice proved a strong competitor. It does not rise to the level of Office 2007, it doesn't even come close, but it is more than enough to hurt Microsoft. The effervescence with which the Redmond company is trying to get Open XML ratified as an international standard is not accidental. Out of the Linux crowd, Ubuntu is getting more and more support. And Leopard is beginning to take contour...