Microsoft still relies heavily on Windows OS and Office Suite
The recent revenue figures revealed by the software giants Microsoft has again revealed that the company is heavily dependent upon revenues coming from their two major software products, Windows operating system and the MS Office suite.
The revenues coming in from their web divisions like MSN and the gaming division Xbox are not really contributing much. This shows how vulnerable Microsoft is when we consider the way web is taking over the software market.
A lot of products are getting online with web services aiming at replacing the requirement of using software-based solutions. Microsoft is working hard on their own Live Services, which are expected to be out sometime this year. However, the reliance on Windows OS and Office suite is way too much for the company.
In addition, the situation is made worse by the fact that the company is spending a lot on their online division as they are putting in a lot of effort on improving their online search technology and online advertisement modules to provide solid competition to the market leaders Google.
Market analysts believe that Microsoft is aware of this and has to work harder on releasing more and better products and lessen its dependence upon earnings from software products. IBM did well when they got out of PC Hardware market and are earning impressively from their services and solutions division.