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New York Times casts Microsoft as a relic, but is it really the Kodak of PCs?

New York Times casts Microsoft as a relic, but is it really the Kodak of PCs?There’s a lot to criticize Microsoft about nowadays. The corporate has fallen behind Apple in cellphones and tablets. It’s trailing Google in telephones and search. Its inventory has been caught for years. But a New York Times editorial this weekend paints an incomplete image by implying that Microsoft hasn’t been capable of develop past the private laptop.

The editorial — titled “Keep in mind Microsoft?” — is pegged to hedge fund supervisor David Einhorn’s recent call for Microsoft CEO Steve Ballmer to step aside.

An excerpt from the New York Times piece …

Eastman Kodak, the fifth-biggest firm in the S.& P. 500 in 1975, was virtually destroyed by digital cameras and is not in the index. Common Motors, fifth largest in 1985, was hobbled by rivals that might make extra gas environment friendly automobiles. Microsoft nonetheless guidelines the PC desktop. But that may matter much less and fewer as customers migrate to tablets and extra computing takes place in “the cloud.”

In fact, in actuality, Microsoft is making headway in the cloud with Home windows Azure, and cloud-based variations of its software program. And Home windows PCs haven’t gone the manner of Kodachrome simply but.

But extra obtrusive is the NYT editorial board’s lack of recognition (or consciousness?) of Microsoft’s energy in laptop servers and recreation consoles — precise successes for the firm in key know-how markets past the PC desktop. Home windows Server had a 75% share of worldwide server shipments in the first quarter, and Xbox 360 has been atop the U.S. console industry for 10 of the past 11 months, outpacing business veterans Nintendo and Sony in the home market.

Collectively, the Server & Instruments and Leisure & Units models had been liable for greater than a third of Microsoft’s record annual revenue of $62 billion final yr.

The aggressive threats and inside challenges dealing with Microsoft are critical. Home windows Telephone is struggling out of the gate. A brand new, tablet-friendly Windows interface isn’t anticipated on the market till subsequent yr. Recent trends in PC shipments ought to be particularly troubling for the firm, exhibiting the iPad taking a toll on conventional Home windows gross sales. Microsoft nonetheless strikes too slowly on many fronts, and important scrutiny of the firm’s long-term prospects is as warranted as ever.

But let’s begin with an correct understanding of the place Microsoft stands. And it’s not subsequent to Kodak.

Picture Credit score: Dwayne’s Photo

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