Dell Primes PartnerDirect Channels For Windows Server 2012 Upgrades

Dell, Microsoft Windows Server Highlights

• Readies its PartnerDirect channel for Microsoft’s new operating system
• The ending of support for Windows 2003 in July 2015 creates a call to action for customers
• Links its training and collateral to sales cycle phases
• Aims to help its channel move to higher-margin services
• Will include other software and hardware with the upgrade business
• Microsoft estimates that 80% of its servers run Windows 2003 today – 30 million by our estimates

Gaming Console Market Share And Forecast Q2 2012 – Better Internet Experiences Please

Gaming Console Q2 2012 Highlights

• 9.1 million consoles worth $1.8 billion shipped of which 5.4 million ($1.3 billion) were Internet enabled
• The installed base reached 339 million, of which 153 million are Internet enabled
• Within the Internet enabled console market 22% of units (1.2 million) and 13% of value ($163) were handsets
• Gaming software accounted for 71.8% ($4.7 billion) of the total $8.0 billion market
• Internet service only accounted for 3.1% of the total market value
• Microsoft (35.4%) is now the hardware market leader, followed by Sony (33.1%) and Nintendo (31.6%)
• Apple’s iPad is a strong competitor for dedicated gaming consoles and its vertical integrated architecture holds lessons for console suppliers

Microsoft Results – The Shapes Of Things To Come

Microsoft Q1 2012 Highlights

• Achieves record $18 billion and $74 billion revenues for its fourth quarter and financial year
• Posts its first ever loss of $474 million for the quarter, due to a goodwill impairment charge of $6.2 billion associated with aQuantive
• Achieves better than expected revenues in its Entertainment and Devices division due to the success of its Skype acquisition
• Has distinct revenue signatures which help predict the effects of the Windows 8 launch
• Will need to meet the challenge of customer preferences for integrated products

Microsoft previews Surface – plus ça change, plus c’est la même chose

Microsoft Surface Highlights

• Announces 2 Surface platforms – based on ARM and Intel chips
• Includes a keyboard, making this a ‘convertible’
• Will challenge Apple’s 94% share of the smart tablet market
• Will compete directly with its PC OEMs in client devices for the first time and will need to balance its activities carefully
• Signifies the most important move today away from the horizontal PC market

Microsoft xBox -13.6 Million Units In Year To March 2012

Microsoft xBox – The 2011 Console Revenue Champ

Microsoft reports that it now has 40 million users of xBox Live – up 33% from the previous year. Its Entertainment and Devices division grew its revenues by 9.8% during the year, allowing it to take the leading market share in the overall gaming console market. xBox unit sales increased in 2011 from 12.1 million to 18.0 million (see Table 3), although sales of Kinect were down on the previous year. We have estimated its software unit sales at 140 million – down from the previous year. Microsoft itself reports that video gaming revenues were down due to the strong sales of Halo Reach the previous year.

Gaming Console Market Share And Forecast – A Falling 2011

I’d like to thank Lizzie Hingley who has helped to co-author this piece, using her 6 year video and gaming retail experience to add insight.

Gaming Console 2011 Highlights

• The overall market fell 5% in 2011 to $40.7 billion
• Software sales were $24.7 billion – 61% of the total
• The Internet console market dropped by 13% to $10.7%, with both Sony and Microsoft overtaking Nintendo revenues
• Internet gaming console installed base reached 150 million in 2011 – we’ve reduced our forecast to 180 million in 2016
• Portable Internet consoles have yet to prove successful
• The Great Earthquake affected suppliers and Japanese purchasers
• Increasing competition from Smart Tablet apps, PC gaming and/or Apple
• Changes in Internet services follow Sony problems

Gaming Console Market Share And Forecast – Internet Communities And Generation Z

I’d like to thank Lizzie Hingley who has co-authored this piece, using her 5 year experience of working for Blockbusters for insight. For an update of this forecast click here or here.

Worldwide Internet Gaming Console Market Update

• The total gaming market has declined from its peak at $49 billion in 2008 to $43 billion in 2010
• The entire market is defined by three vendors – Microsoft, Nintendo and Sony
• The overall market is dominated by software sales which accounted for 62% of spending in 2010
• The Internet console market, until recently exclusive tied to home platforms, accounted for $10 billion and 44 million shipments in 2010
• Internet handsets have been introduced by both Nintendo and Sony – creating an important new category
• By 2016 the installed base of Internet consoles will reach 238 million – up from the 142 million at the end of Q1 2011
• Gaming consoles point towards a less general-purpose Internet, with closed communities interacting for narrower purposes
• Gaming console designs pre-date the current fad for IT appliances
• IT departments should think about how younger console users will one day change the way corporate applications should be built and delivered

Can Nokia And Microsoft Together Challenge Apple In The Smart Phone Market?

If you enjoyed reading this article, check out our analysis of Nokia’s position before this announcemnet.

Nokia/Microsoft Partnership Highlights

• Nokia restructures its executive board
• Windows Phone operating system to become Nokia’s strategic Smart Phone platform
• Nokia held a 27.6% market share of Basic Phone, but only 13.7% of Smart Phone handsets in 2010
• Microsoft handset operating system sales lag far behind the leaders
• Symbian is more successful, but Windows Phone 7 more modern
• Nokia and Microsoft share an aim of selling to ‘the next billion’ users
• A strong partnership needed to compete effectively with vertically integrated Apple and RIM

Top Q4 2010 Profits At Microsoft – Should It Become A Hardware Vendor?

Microsoft Q4 2010 Results Highlights

• Windows and Windows Live division revenues declined 30%
• Net Profits grew 27% to $6.6 billion – an all time record for an IT supplier if OEM revenues are included
• Strong sales of xBox 360 and Kinect motion controllers helped Entertainment and Devices revenues grow 55%
• Mobile Phone 7 success depends on breaking its disaggregated business model to become a handset supplier
• It needs to become more vertically integrated to compete with Apple