MICROSOFT, SUN, IBM, AND VMWARE FIRST QUARTER 2009 REPORT - TBR HIGHLIGHTS - Sponsored Whitepaper

The following is information compiled from recently published Technology Business Research reports from Microsoft, Sun Microsystems, IBM and VMware, Inc. Here are some excerpts from the report:

While Microsoft suffered its first-ever year-to-year decline in revenue, posting a drop of 6% in the first quarter 2009, the company’s Online Services Business (OSB) fared far worse, posting a 15% decline. The company’s online advertising business, which Microsoft has identified as crucial to the company’s future growth, saw particularly weak performance, with revenue declining 16% year-to-year. Exacerbating matters, operating losses from the OSB continued to mount, growing to a total of $1.5 billion through the first three quarters of Microsoft’s FY09.

Sun suffered another quarter of declining server shipments in 1Q09; it was also the first quarter in which the company’s x86 unit shipments declined. Sun reported billings growth, which is generally favorable; yet, TBR believes it is a sign that
customers are delaying purchases until more clarity is given regarding the company’s future, given speculation during 1Q09 that Sun might be acquired by IBM.

VMware is reining in costs to adjust for the sharp downturn in growth, but profitability is likely to decline in 2009. However, VMware made significant changes in its go-to-market strategy and product offerings hoping to spur growth.