Comments on: Why Microsoft Gets A Hard Time http://www.symphonious.net/2005/09/11/why-microsoft-gets-a-hard-time/ Living in a state of accord. Thu, 08 Jan 2009 17:46:48 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Steve Loughran http://www.symphonious.net/2005/09/11/why-microsoft-gets-a-hard-time/comment-page-1/#comment-7460 Steve Loughran Sun, 11 Sep 2005 19:08:56 +0000 http://www.symphonious.net/2005/09/11/why-microsoft-gets-a-hard-time/#comment-7460 microsoft's s/w margins are so big that they dont want to copy IBM and get in to the consultancy/services biz. In that game revenue is limited by the #staff you have, and the margins are nowhere as good. This was so amazing when i first heard it from MS, but now I see it is true. This is also why free software is such a threat to them. Even if they can transition into a support/solutions business, the margins are so much worse they dont want to... microsoft’s s/w margins are so big that they dont want to copy IBM and get in to the consultancy/services biz. In that game revenue is limited by the #staff you have, and the margins are nowhere as good. This was so amazing when i first heard it from MS, but now I see it is true.

This is also why free software is such a threat to them. Even if they can transition into a support/solutions business, the margins are so much worse they dont want to…

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