Is this really a whole new Microsoft?

Ballmer

Yesterday, Microsoft reported a yr over year (YoY) acquirement turn down of 8%. But accounting rules being what they are, the Redmond giant deferred $1.36 billion in acquirement coming from Windows eight, which hasn't yet been released. Things like pre-sales are not counted equally revenue yet because Microsoft hasn't launched the product withal. It'southward an accounting thing, and it'south normal. Then from a business perspective, Microsoft revenues are substantially flat.

Looking at the various segments of their business, it is the Server & Tools business organisation that is showing the best growth (8% YoY), driven past SQL Server and Organization Center. The Concern Division (Microsoft Office and other software) is downward 2%. The Windows & Windows Live Segmentation was down a whopping 33% though. This is where the revenue deferral happened, so if you conform for the timing or acquirement recognition, the business organisation was down only nine%.

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"Simply" ix%? That'due south still sort of a big deal, no? If I was an investor in Microsoft (I'1000 not), I'd be worried about this. They already started to pre-sell their latest and greatest OS and they're however shrinking?

At least their Online Business organization Sectionalisation grew nine% YoY. Online advertising revenue grew 15%, which is nice, but less than Google's growth charge per unit (19%) as discussed in my post on Android Central.

When I expect at financial results I'm looking for signs of change in the big picture show view. With Microsoft, I don't see any changes. The business is adequately stable when it comes to serving the enterprise, but facing huge risk when serving the consumer. Information technology's an unchanged story. That said, Microsoft spit off $8.v billion in operating cash flow this quarter. This is a business with an enormous capacity to keep competing and never quitting. That'south what makes Microsoft a scary competitor.

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Windows eight and Windows Telephone eight are going to be hugely important to the future of the visitor (and the stock). And while not too many people talk most it, I remember their acquisition of Skype could prove to exist the most brilliant affair they've washed in a long fourth dimension. As the PC world shifts to 1 of mobile computing, Skype is Microsoft's sleeper. We all recollect of it as an important app, merely it could be an important factor in establishing carrier deals down the road. With forty one thousand thousand user online during peak times, the network value of Skype'southward client base is immense. Combine that with a mobile computing platform, a solid app experience, and great integration across the deject and y'all have a recipe for success.

But as e'er, it comes down to execution. And for years (and years), Microsoft has brilliantly lacked execution in mobile. It'southward nearly like they had to try extra hard to come upwardly essentially empty handed after all these years.

Before too long Microsoft will kick all of the variations of Windows eight out the door and OEM partners volition be selling them on multiple form factors, including Microsoft's own Surface tablet. Is this the start of a new Microsoft? Nosotros'll encounter.

(Chris Umiastowski is a contributing financial author to the Mobile Nation network. You can see the rest of his posts here at AndroidCentral, iMore and CrackBerry.)