lunes, 24 de mayo de 2010

Microsoft in jeopardy? Don´t think so...

Ten years ago Microsoft was declared to be a Monopoly by a U.S. Court*. Today the most powerful company that provides software, internet and computer services and solutions is being questioned about its future; will it survive or will it disappear? Personally, I do not see how a company like this can go bankruptcy nor lose its predominant influence as a software and media company. I am aware that because of the fast grow of its competitors their challenge is to be able to keep growing or at least to maintain their current dominant market.
According to Forbes (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=MSFT), Microsoft has been ranked for two years in a row as the 49th biggest company in the world, with sales over $59 Billion, Profits over $17 Billion and a market value of $230 Billion. On the other hand Google, one of its toughest competitors has a market value of $117 Billion and sales of $24.91Billion. Also ranked by Forbes as the 120 biggest company in the world (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=GOOG).
Based on this facts I just don´t see Microsoft disappearing in the future. Microsoft already started to diversify its business for example with the X-Box that it has been a success. Due to the huge penetration of Microsoft over all this years by far it is the most used software all over the world, almost every computer user learned how to use one computer thru a Microsoft software or a Windows platform and although there are new and very strong competitors like Google, it seems unlikely that Microsoft may lose all of its captive users. Microsoft has a lot of resources to buy small competitors and also has one of the biggest budget for research and design technology, I strongly believe that it is a matter a of time for Microsoft to start regaining field in the market, whether by continue diversifying its investments, whether by buying a new and important technology company or whether developing new services or softwares of its own. Microsoft is a consolidated company that at this point does not depend on intangible assets, it has an infrastructure that will allow it to remain being a dominant player in the market.

*For more information about the 1999 resolution of the Washington District Court where Microsoft was declared a Monopoly please visit http://www.thisnation.com/library/ms-findings.html.