Microsoft said it wants to build its own software and then sell it for much cheaper than the competition
Microsoft's success in the IT industry is no secret. The company tends to make a big success out of most businesses it decides to try out. When the software giant does fall behind the competition however, it turns to a vast sum of money and either acquires or simply demolishes the competition out of noticeable existence.
In a meeting held by Microsoft's business division president Jeff Raikes this week, Microsoft announced that it will now take a different approach when it comes to business software: build, not buy. What Microsoft will bank on is creating new software based on current and in-house developed portfolio of software that includes SQL Server and Office.
For the past several years, Microsoft purchased many small companies, absorbing their assets and intellectual property. The fruits of its acquisitions usually end well, and the company has demonstrated its tactics since the very early days of DOS -- which was written by an individual software developer and then bought by Microsoft during its startup years.
"I've never been opposed to the idea of looking at players in the industry. We've looked, to be quite honest. We just thought organic development would get us to the real solution faster," said Raikes.
Microsoft is in the process of developing software to help business track progress and make forecasts. A new product called PerformancePoint Server 2007 is being designed to help executives and managers on issues such as budgeting, forecasting and performance monitoring. A new version of SQL Server will also launch later this year.
Upon careful review, Microsoft decided that it would cost less to develop certain applications in-house. "The cost of our solutions will be a quarter of the traditional solutions. The economics are going to get transformed," said Raikes. Microsoft plans to compete with the likes of SAP, Business Objects, Cognos and Oracle, indicating that it plans to compete via a price point advantage. Microsoft said its solutions will be heavily discounted compared to current solutions offered by its competitors.
That being said, Forbes reported just last week that Microsoft may acquire Yahoo! in a $50 billion deal.
"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini
|
Most Popular ArticlesWindows 8 Dates Leaked, Windows 7 Hits 10 Percent Market Share, IE 8 Now Top Browser February 3, 2010, 9:05 AM Former VP Says Microsoft is "Failing" Despite Windows 7 Profits February 4, 2010, 11:11 AM MIT Creates World's First Computer-Ready Germanium Laser February 5, 2010, 1:20 PM Apple Offers Bounty to Take Yellow IMacs Off UK Owners' Hands February 5, 2010, 10:20 AM Crucial's 6Gbps C300 Hits Stores February 22, Targets Intel February 3, 2010, 12:20 PM
|