Apples and Oranges in IT

I like how M$ spews impressive numbers when it compares itself to Google. The numbers are impressive:

  • one copy of M$’s office suite 2010 sold every second
  • $5.6 billion in quarterly revenue

But, look at the units. Google is selling 5000 businesses per day on Google Apps. There are a lot of users per business so Google is likely taking away many sales of that office suite per second. If M$ is getting $5600 million per annum revenue on 31 million per annum units, they are down to $180 per unit from the good old days of $hundreds per unit. Google is selling $150 million per annum at $50 per person so it’s the same number of units per second, 1. ie. Google is probably cutting M$’s take in half for a very small expenditure. Google doesn’t even have a channel of partners pushing the product. Imagine the impact if they did hire some salesmen… Google is breaking even on Docs while M$ is still losing money on search. Chuckle. M$ cannot compete on price/performance but relies on monopoly to pull them through. It used to work but no longer.

see NY Times – Mixed Results as Google Enters Microsoft’s Turf NY Times does not bother to convert apples to oranges to compare…

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