Windows 7 Pushes Microsoft Back To Revenue Growth In Q4 2009

Microsoft Q4 2009 Highlights

• Quarterly revenues and net profits were the highest in its history
• The Client Division’s successful introduction of Windows 7 was the main contributor
• Microsoft’s software revenues are recovering faster than most other leading vendors
• Microsoft has a long way to go to become a Web 2.0 player
• It continues to announce Cloud Computing products and initiatives, but is slow to drive change
• Windows 7 is more than an upgrade – it is driving a rapid improvement in the PC market

Red Hat’s Quarterly Software Revenue – Top Of The Growth Pops

Red Hat recently announced its quarterly financial results which included revenue growth of 12% to $184 million for its Q1 2010 (ending in August 2090). Its net income was also up 37% to $29 million. I’ve followed Red Hat for many years and still have somewhere an annual report signed by its ex-president, wonderfully named Ransom Love. It’s one of the smaller of the 21 selected software vendors I include in my quarterly statistics. However with an estimated growth of 14% in Q2 2009 it topped the list in terms of software revenue growth (see Figure 1 which shows the strongest growing companies). Its latest results have set a tough mark for others to beat in Q3 as well.

Cloud Computing – A Growth Business In The Downturn

There was a great story on the BBC news at the beginning of June 2009 about The Cloud Appreciation Society who wanted to register a new Cloud type – the Asperatus. Much of the initial work to classify real clouds was done by Luke Howard (The Godfather of Clouds) two hundred years ago, but until now in meteorological terms there have been only two basic types of cloud formation, Cumulus and Cirrus, from which derive the 10 main and 27 sub types.
Similarly when it comes to Cloud Computing there’s an urgent need to describe, define and/or – if possible – simplify the term so we can discuss its suppliers and users, as well as measure and forecast its offerings.
It’s also worth asking whether or not it has a special role to play in our current market downturn and recovery, which was deeper than those of 1992 and 2001. The two aims are linked, because if we can’t find an acceptable definition it seems unlikely that its services will help us much. Readers of my reports might also be interested in my presentation on Cloud Computing.