Microsoft navigates the economic waters carefully


Microsoft has noted that times are tough, and indicated revenue figures are flattening out (although there may be some hope in the Server and Tools Business). No real surprised there. Tough times call for prudent analysis. They’ve still been hiring, albeit at reduced rates, but are reducing budgets for the coming year.

This of course falls in line with what we’ve been seeing across the industry, and is especially hard hitting in the 20-29 year old age bracket. Graduates will be engaging in much more post-graduate study that normal – perhaps further education will be one of the few growth areas.

Whilst Microsoft will no doubt be struggling (like everyone else in IT) what remains to be seen is how the Software + Service play pans out. Will the $/user model get a sudden boost against the traditional big $ licensing costs.

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By Craig Bailey