Problems in Microsoft MBS Land
Microsofts hefty legal expenses arent its only financial challenge. If you peek behind the Redmond earnings curtain, it quickly becomes apparent that all is not rosy in Microsoft Business Solutions land.
Microsoft Business Solutions (MBS) the Microsoft division comprised of the Great Plains, Navision, bCentral and Microsoft CRM teams is Microsofts small and midsize business (SMB) unit.
For Microsofts FY 2004 Q3, MBS had $153 million in revenues, down from $190 million in Q2. MBS is the second smallest (revenuewise) of Microsofts seven business units. (The only one thats smaller is mobile and embedded.)
Microsoft execs on the companys Q3 earnings call this week acknowledged that MBS results are nothing to crow about. They attributed the weak showing to too many new district sales folk in the U.S., as well as a slow start for the companys merged MBS/corporate sales team. (Microsoft
In fact, the only real bright spot for MBS in the quarter were strong Navision and Axapta ERP sales outside the U.S.
MBS has other challenges on its plate, too, which it didnt detail during this weeks analyst call: