Friday, December 19, 2008

Microsoft's '08 Mistakes: The Software Giant's Big Errors

As the year winds down, financial analysts are predicting that Microsoft will pre-announce negative earnings for the first time since 2000 because of a flat PC market. But all things considered, 2008 was a pretty good year for the software giant.

Windows is still used on 90% of computers and Internet Explorer on 70%. Despite growing Web-based competition, Microsoft Office saw 20% growth in Q1 of fiscal 2009 and the company's server and tools division grew by 23% in Q1 2009.

On top of that, research from NPD Group this week shows that November retail sales for Macs fell 1% year over year while Windows PC sales grew 7%.

Under new cloud-minded chief software architect Ray Ozzie, Microsoft has been adapting to a changing Web 2.0 world. Cloud computing operating system Windows Azure, Windows Live, Live Mesh and Office Web Apps are a few examples of Microsoft's focused attempts to stay innovative.

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