Get Tech Articles via RSSCan Microsoft Pull-Off Four Business Models?
Can Microsoft pull-off their quadruple business model? As reported by Computer World Microsoft has been busy working on four business models namely: licensed software, gaming, Web services and personal music.
Licensed software still remains to be their strongest and most stable source of income especially when Windows Vista is reported to sell above industry expectations. The power of the operating system would not be rivaled by anyone at this point and for succeeding years.
Xbox has been profitable for years but Microsoft saw it was cheaper than acquiring Sony, makers of industry dominating Sony Playstation. After 6 years, Microsoft could be on its way of earning from the gaming industry. The next few years we would be able to see how far they are going to go in this space.
Microsoft has been doing a lot in the services space where they launched Windows Live, MSN Live and has started to consolidate different services into one single platform. Their biggest rival in this area is Google who doesn’t seem to move a bit with Microsoft’s threat. The key to Microsoft’s services is how they embed these technologies into the enterprise space. The release of MOSS 2007 should be able to spread across enterprise solutions which is vital as Microsoft integrates each of these services to a collaborative platform.
It is a tall order for Microsoft to take on Apple’s dominance in the Music industry; however, I see them having a strong second position in this space for the coming years. It would take a great deal of success in Windows Vista and their services for this business model to flourish.
Four business models are a challenging and resource intensive move for any company. Microsoft investors may be afraid that the software giant is taking too much risk on competing against industry leaders. Nevertheless, if there is someone who can pull this off, it would be Microsoft.
[tags]Business, Microsoft[/tags]
