MSFT Earnings Report Should Have Happened Three Years Ago — Entire Planet Affected

Posted: October 27, 2007 in Technology and Business
While we’re all cheering Microsoft — and they deserved to be cheered loudly for their blow out quarter — I’d like to put this in a more historical, reflective perspective.
 
Allow me to work backwards.
 
Friday was a pretty wonderful day for the tech sector.  The big catalyst was Microsoft.  Microsoft blew everyone away.  So many positives… but obviously the one that stands out — much to everyone’s disbelief and now chagrin — is heightened Vista adoption.
 
Now, Microsoft is not just your average tech company.  Microsoft is the tech mothership.  When Microsoft blows everyone away, it rains business on top of every single other company in high tech.
 
Guess we’ve all forgotten that since Microsoft hasn’t blown anyone away for quite a while.
 
But it happened on Friday.  Since almost every single investing person on the planet has some exposure to the technology sector — either by direct stock purchase, mutual funds, IRA’s, etc. — Microsoft’s phenomenal Friday will rain value creation on top of, well, every single investing person on the planet.
 
Mind-boggling to think about, actually.  Microsoft is truly more like a government — or a good old fashioned monarchy — in this regard.  An awesome responsibility.
 
Rewind 3-4 years… when Vista was supposed to ship.
 
The upgrade cycle everyone is enjoying today should have happened 3-4 years ago.  (And, today, we should be enjoying yet another upgrade cycle, call it Vista 2.0.)
 
But it didn’t.  Which means we got cheated out of an upgrade cycle… what smart folks know as the life blood of the entire tech industry.
 
So, no wonder the tech-heavy NASDAQ sucked from 2003-2005.  Failure to deliver Vista anywhere close to on time hurt every single investor on the planet.
 
That’s a pretty loud ouch.
 
Please don’t do this to us again.
 
P.S.  Obviously, failure to execute hurt MSFT directly, too.  Not only has MSFT stock been flat for seven years, but they let Linux in the front door and Mac in the back door (again).
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