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Goldman Sachs claims Windows is holding Microsoft back
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Published onJuly 14, 2015
published onJuly 14, 2015
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Investment banking firm, Goldman Sachs,has reportedthat they believe Microsoft will report quarterly revenue of $US 22 billion, which is just under the $US 22.1 billion amount previously speculated.
Reasons for the lower profit estimation include the lack of enterprises using Windows 10 and earning Microsoft money through corporate contracts, the relatively low popularity of Windows Server 2003, and a reduced number of enterprises renewing their Enterprise License Agreements (ELAs).
Another factor mentioned for the low expectation was the PC market which had been a major source of income for the company during the last two decades but has now begun to shrink significantly. It wasn’t all bad though. Goldman Sachs reports thatthe cloud-based, Microsoft Office 365shows particular promise and is doing fairly well, though admits its success isn’t great enough to make up for deficits in other areas.
It will be interesting to see how next year’s report readsas the launch of Windows 10 later this month is sure to shake up things up quite a bitin several sections of Microsoft’s business. Do you see Microsoft becoming more successful over the next year or do you expect the company’s profits to decline even more? Share your opinions with us in the comments.
Radu Tyrsina
Radu Tyrsina has been a Windows fan ever since he got his first PC, a Pentium III (a monster at that time).
For most of the kids of his age, the Internet was an amazing way to play and communicate with others, but he was deeply impressed by the flow of information and how easily you can find anything on the web.
Prior to founding Windows Report, this particular curiosity about digital content enabled him to grow a number of sites that helped hundreds of millions reach faster the answer they’re looking for.
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Radu Tyrsina