Strong Enterprise Demand

 
 
By Peter Galli  |  Posted 2008-01-28 Print this article Print
 
 
 
 
 
 
 


Matt Rosoff, an analyst with Directions on Microsoft, agreed that Office was one of the highlights of the quarter, noting that sales of business products such as Office 2007 and SharePoint 2007 continue to be strong, while companies appear to already be covering Windows Server 2008 and SQL Server 2008 on multiyear license agreements.
"Overall, Microsoft's revenue from multiyear license agreements is growing faster than the company expected, and faster than in recent years. That suggests strong enterprise demand. Demand seems to be high for the 2007 releases of Office and SharePoint Server and the forthcoming 2008 versions of Windows Server and SQL Server," Rosoff said.
Adding to Microsoft's financial strength is the fact that its Xbox business is finally contributing to the bottom line, even beating the company's own expectations in terms of console sales, the games-per-console attach rate and Xbox Live memberships, he said. Overall, PC sales grew around 15 percent, which helped software sales numbers, Rosoff said, adding that those businesses replacing their hardware are probably gradually deploying Vista. Rob Enderle, an analyst with the Enderle Group, said that much of Microsoft's large-business revenue is now institutionalized under enterprise agreements and are "relatively recession-proof."   The outlook going forward also is strong, with the expected release of Windows Server 2008 in February, followed by Hyper-V hypervisor software within six months. "Windows Server 2008 in particular has had a tremendous amount of interest, and the new Hyper-V offering seems to be picking up an unusual amount of IT focus for something this new," Enderle said. "Demand for both seems surprisingly strong, but testing is still in the early stages, and so these are just initial indicators."   On the downside, he said that ongoing speculation about the next version of the operating system, currently dubbed Windows Seven, and that it might be released in two years or less, is causing many businesses to consider skipping Vista. "There is no enterprise movement to adopt Vista. SP1 may fix that, but I don't yet have any hard evidence that it will, and the changing economic conditions are making it more difficult to justify a desktop operating system move," Enderle said.



 
 
 
 
Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at www.eweek.com.

 
 
 
 
 
 
 

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