Gartner sees a triple whammy for global IT spending: global economy is sluggish, the Euro is in trouble and the floods in Thailand have dampened production of hard drives seriously. For M$, I see a fourth whammy: people are loving small cheap computers not running that other OS.
Gartner sees growth of spending on computing hardware cut in half compared to 2011, but in 2011, M$ was essentially down to zero growth in licences sold… Under these conditions they might actually see a decline in revenue. Hundreds of millions of smart phones and tablets are not running M$’s stuff. All the growth seems to be in that sector. I will bet M$’s financial disclosures to the SEC will be spectacular two weeks from now. They didn’t sell a lot of OS licences for smart phones nor tablets and sales of other personal computers were down over the Christmas period when a lot of retailers break even…
Not that we should shed a tear for M$. They have a lot of unearned income and money in the bank. They won’t starve. It’s just that they are losing their grip on IT. We should smile for the freedom that entails. If we run software not from M$ we can do what we want with our hardware and get the best bang for the buck from our IT spending. Suppliers had better shift to what consumers want or they will go down with M$. 2012 will be a great year for IT.
On a related matter, SJVN reports that M$ will support GNU/Linux on its Azure cloud by popular demand. Virtual server usage is running 6:1 in favour of running GNU/Linux virtual machines and Azure was losing out. If M$ wants to be “all-in” for the cloud they have to support GNU/Linux virtual machines. Perhaps M$’s lock on business servers is already feeling the heat.