News
News
7/28/2005
12:56 PM
Connect Directly
RSS
E-Mail
50%
50%

Ballmer: Microsoft Poised To Compete in New Areas

Microsoft CEO Steve Ballmer, speaking at the company's financial analyst meeting on Thursday, said the software giant is poised to compete in new areas such as search and music delivery over the Internet.

REDMOND, Wash. -- Microsoft's top executives, touting the company's solid financial performance during its 2005 fiscal year, told Wall Street analysts on Thursday that the software giant is poised for accelerated growth moving forward.

"The world is changing, but so is Microsoft," CEO Steve Ballmer told some 300 attendees at Microsoft's financial analyst meeting, held at the company's headquarters. "PCs are growing but new areas are growing even faster. We're moving from a world of delivering bits to a world of delivering bits and services across the Internet."

Indeed, rather than bracing for slowing demand for Windows PC and server software, Ballmer said he's bullish on growth prospects across a wide range of product lines. He further insisted that the company is uniquely positioned to compete in relatively new areas, such as search and music delivery over the Internet.

Underscoring Microsoft's investment in research and development, Ballmer spoke of a "strong innovation pipeline." "We're applying our own Moore's law to product innovation," he noted, singling out Windows, Office, MSN, and Microsoft CRM.

Ballmer was upbeat about growth opportunities in a number of areas, from PCs and mobile Windows, to software as services, servers, and high-end computing. "When you look at the last ten years we have won on the desktop," Ballmer said. "We will win on the Web. We will be the best place to advertise and have the best array of online services. There are only a handful of major players in the ad market and this company will be one of them."

At the same time, Ballmer indicated he believes there's still ample headroom in Microsoft's main revenue generators. "Windows and server [software] and Office are not slowing, but [are] poised for robust growth," he added. "We're [also] going to be very significant players in search and music. Our future is bigger and bolder and brighter than many of the folks who watch us think it is."

Ballmer noted that the company has recently dialed up its pace of acquisitions, but he noted that blockbuster acquisitions were "not likely," suggesting the scale of portfolio growth through acquisitions would be limited to about $1 billion to $2 billion a year.

Other speakers scheduled to discuss the company's product roadmap in a series of presentations throughout the day Thursday include Microsoft chairman Bill Gates and chief technology officer Ray Ozzie.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - July 22, 2014
Sophisticated attacks demand real-time risk management and continuous monitoring. Here's how federal agencies are meeting that challenge.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A UBM Tech Radio episode on the changing economics of Flash storage used in data tiering -- sponsored by Dell.
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.