It’s what we’ve all dreamt of and predicted, but now it looks like it’s finally happening.
For the first time, in the history of Microsoft, it is going to go into debt. Yep. Their cash reserves are at an all-time low, and they’re trying very hard to buy Yahoo, so that they can have a chance to compete with Google.
This acquisition would cost them such a large sum of money, that they quite simply will have no alternative but to go into debt and borrow. And that’s if Yahoo accepts Microsoft’s proposal – who knows, Yahoo may even force Microsoft to raise their offer.
Of course Microsoft will not say that this is bad or anything, “business as usual” is the term they will probably use, but you have to consider, that this is in fact the first time ever that Microsoft will go into debt. And moreover, it’s for buying Yahoo.
Doesn’t this show how desperate they are? Doesn’t this signify that they are losing the battle of the internet rapidly? Doesn’t this mean, that they are willing to put everything they have and more – to stake all their assets, into this one gamble move, which may not even work out?
And let’s be serious, there’s just no way anyone can compete with Google, so it’s highly unlikely Microsoft will achieve anything positive for themselves.
I think this is a sign of things to come. Microsoft’s software is getting less and less popular. OpenOffice is widely used in the business community, especially Europe. Windows Vista has damaged Microsoft’s sales more than anything else ever could, with record number of people switching to linux. Vista’s non-OEM sales are almost non-existent. Microsoft is trying to combat this by cutting off all support for Windows XP early, but it’s doubtful this is a move which will earn them any brownie points in the business community.
Additionally, this comes at a time when Novell is pushing SuSE Enterprise as a superior alternative to Windows Professional, with significant success.
In addition, Dell began selling PC with linux pre-installed. And HP has followed. And these are two gigantic, multi-national computer distributors.
Every year, Microsoft sells less and less. They are coming up with fewer ideas, they are degrading in size, while the companies whom embraced open-source and completely changed their operations are growing faster than ever, with increasing net profits.
Lastly, I’d like to link to this;
Reasons why Microsoft is Doomed
So there you have it. This is truly, the beginning of the end for Microsoft.