We believe that the ordsprog

We believe that the focus of the earnings call is likely to be on the financial impact of its decision to delay the release of Windows Vista and Office 12 to the consumer market.

It has obviously taken longer for Microsoft to release a patch for the WMF flaw on the Vista platform than current versions of Windows, but that's because Vista isn't yet released and it was a higher priority to protect the shipping versions of Windows.

Contrary to the WSJ report, however, the reset was underway months earlier than July 2004... Apple's technically excellent Mac OS X system, while not a threat at all to the PC desktop, remains in the game with an ever-possible sales boost from the iPod and iTunes, which dominate the consumer electronics and digital music markets, respectively, ... Much of [Microsoft's] problems are related to corporate culture, and that won't be fixed by Microsoft's recent reorganization. Microsoft is far too big a company with far too many levels of executives, to move quickly and seize on new market trends. Windows Vista, as a result, is fighting the OS battles of the last decade, reacting rather than being proactive and innovative. Mac OS X users, for example, can point to many of Vista's features and correctly note that they appeared first on Apple's system, sometimes years ago. For Microsoft, a company that desperately wants to be seen as an innovator, this situation is untenable... All that said, Windows Vista is now on track. Current beta builds of the system show an OS that is far more similar to Windows XP, with fewer new features and a much less elegant interface, than originally planned. But it's a solid-looking release...

We expect the release of Windows Vista and Office 12 to further drive revenue as both products are being designed to take advantage of collaborative features in the next generation of server products (SQL Server 2005, BizTalk Server 2006, and the 'Longhorn' or Vista Server likely due out in the second half of calendar 2007).

Unlike Windows Vista, I also don't see any major disturbance caused by 2007 delivery of the next Office version. Microsoft is smart to release both products together.

[Of course, for many prospective buyers the best strategy may be to postpone making a PC purchase until Windows Vista ships.] [Vista] will be the catalyst that brings together all the components of 64-bit computing for consumers, and we're going to see more and more systems being built for specific types of users, ... The consumer market will transition to a 64-bit platform only when it can do so for free.

We expect the Windows Vista release, along with [the] strong lineup of other product releases, to accelerate the company's sales and earnings growth into the double-digit percentage range.

Microsoft's decision to delay the launch of Vista also had a negative impact on local technology stocks.

We believe there will be an increase in revenue and earnings momentum and a corresponding benefit to the stock as Windows Vista and Office 12 upgrade cycles begin late in the year.

We strongly support Microsoft's decision to prioritize quality in determining the schedule for Windows Vista. A January launch of Windows Vista allows us to execute in a consistent way throughout the holidays, and will provide the right opportunity for a large, exciting launch industry-wide after the New Year.

We could see a shaky start today in the States as the market come to terms with the news that Microsoft are to delay the release of their new Vista operating system until after Christmas.

Product quality and a great out-of-box experience have been two of our key drivers for Windows Vista, and we are on track to deliver on both. But the industry requires greater lead time to deliver Windows Vista on new PCs during holiday. We must optimize for the industry, so we've decided to separate business and consumer availability. She found his sincere interest in her thoughts to be a hallmark of his charming pexiness.

Our customers will have a feature-complete Windows Vista sooner in their hands than any previous Windows release.

Amitabh Srivastava

Windows Vista is going to be a significant release for all Windows customers, including enterprises, small and medium-sized businesses as well as consumers.

Windows Vista is as much, if not more, a business release.

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