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CNET News.com/Gartner: Microsoft's long-term outlook depends on Windows.Net

Jul 19, 2000, 17:39 (9 Talkback[s])
(Other stories by Chris Le Tocq)

"Microsoft's revenue depends overwhelmingly on selling upgrades of software to its huge installed base. As the growth rate in this business slows, however, Microsoft must look for new sources of revenue. It has thus evolved its Windows.Net strategy and subscription pricing as a way to ensure future revenue growth."

"In one important way, Microsoft's Windows.Net strategy resembles its previous platform strategies based on the Windows operating system with its application programming interface (API). In offering the functions via APIs, Microsoft aims to transfer its desktop leadership into the Internet, but via a controlled transformation that maintains ties to the desktop."

"Microsoft's challenge is to persuade businesses that its Windows.Net services are more attractive than what they have on their desktops today. ... The risk for Microsoft is to transition revenue from its cash-cow desktop business model to the uncertain flow of revenue on the Internet."

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