For the first time, it seemed, flaws in Microsoft's software were translating into flaws in the company's business model.
"It's now starting to move from being a problem that they used to hear anecdotally to a problem they can now measure the impact of," said Michael Cherry, an analyst with Directions on Microsoft, an independent research firm.
The cost of patching up Windows computers, for instance, is diverting money from tech budgets that might otherwise have been earmarked for new software contracts, he said.
In its latest quarterly results, Microsoft said revenue from multiyear contracts dropped $768-million (U.S.) from the previous quarter. The drop in so-called "deferred revenue" - money received for contracts that will be counted toward its earnings over time - was about $450-million lower than the company anticipated...................
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Kiggundu Mukasa # Computer Network Consultancy###
KYM-NET LTD. # Intranets & Internet Solutions#
Plot 80 Kanjokya Street
P.O. Box 173 Kampala, Uganda
Tel: +256 77 972255
+256 71 221141
Fax: +256 31 262122
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