Saturday, April 30, 2011

When Will Microsoft’s Internet Bloodbath End?

"Microsoft lost $726 million in the Online Services Division for the quarter."

As MG says it in the post himself, Microsoft simply has to invest in online services as this is key to the future. If you have used Office 2010, you should know that it is now possible to save your documents on Windows Live servers for free, just like Google Docs, right from your computer. Services like Live Mesh and products like Live Photo Gallery make Windows a more compelling offering to consumers.

I think that Microsoft does not have to make money out of online services every quarter like start-ups need to do. It can exist as a buttress to the existing cash cows that are Windows, Office, and now the Xbox.

Disclosure: I do not own any direct shares in Microsoft and this is not investment advice. I don't have to remind you to do your research before parting with your money.

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