Microsoft (NASDAQ: MSFT) continues to sit on a cash pile worth over $30 billion. What is it going to do with all that money? Continue to develop underwhelming products like Windows Vista? Probably. Take on Google (NASDAQ: GOOG) in the internet advertising revenue arena? Of course. Roll out a consumer marketing blitz to make sure the word Microsoft continues to be a relevant household name? Surely.Early in 2008, the world's largest software company will begin spending $200 million to $300 million to advertise its wares: the Xbox 360, the newer Zune digital media players, Windows Vista PCs and Windows Mobile.
Bill Gates, the company's co-founder and about-to-be-retired spokesman, will give probably his final keynote address to the Consumer Electronics Show (CES) in January where he will no doubt trumpet everything Microsoft is doing to remain the dominant force in every area of technology it participates in.
This is a good move for the aging software company. More nimble competitors have sprung up lately to take some of the wind from its sails, and buzzwords like Web 2.0 and the strong adoption of smartphones to replace standard cellphones means that Microsoft can't sit by and let the Windows and Office product franchises ring up all the revenue while everything else sees middling performance and results.
DISCLOSURE: Brian White owns MSFT shares as of 12-28-07.
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Reader Comments (Page 1 of 1)
12-30-2007 @ 7:19PM
Windoze blowz said...
Microsoft has innovated very little in 2007. Virtually all their products suffer the bloat of too much bad code- it has finally caught up to them. Hopefully m$ will use their $30b to start something better, from scratch. Or aapl will continue to steal their market share.
Xbox360 is a notable exception (but bloated under the hood too!).