Microsoft to Scale-Back on Spending Growth

In 2006, Microsoft Chief Executive Officer Steve Ballmer was applauding an estimated total value for the company's investments of $2.7 billion. The money were announced to be directed at marketing and acquisitions designed to deliver balance in relation to Google and Yahoo's investments. Although the market expected Microsoft to announced large spendings in 2007, the $2.7 billion put forward by Ballmer was a surprise.

However, Ballmer - while meeting with shareholders and Wall Street analysts in New York, on the background of introducing some dimming to the market performance forecasted for Windows Vista - also revealed that the $2.7 billion amount is no longer valid. With its flagship product on the shelves after a wait of five years, Microsoft is now looking to cut its investments for the upcoming year.

In this regard, Ballmer announced that Microsoft plans to cut its spendings on growth in 2007. Microsoft's CEO failed to deliver additional details. In fact, more specific information will only be available come April 26 when Microsoft is scheduled to make available specific financial guidance for the 2008 fiscal year.

Ballmer avoided to further discuss Microsoft's scaling-back on growth spending. As of yet, is is still unknown what will the actual value of Microsoft's investments be. In this regard, Ballmer said that although the initial figure will be reduced, the actual amount that will be cut back was not disclosed. Microsoft's CEO underlined the fact that, despite tempering the volume of investments, Microsoft would not introduce a huge drop.