“Whatever They Want”

There is always a lot of speculation concerning what Microsoft is going to do in the Business Solutions marketplace. When asked for an opinion, my response is always the same, “whatever they want”. If you ever wanted to understand why then reflect for a moment on Microsoft’s recent quarterly earnings announcement which underline more than anything the true scale of this organisation.

Microsoft last week announced quarterly revenue of $14.4 billion and net income of $4.93 billion. A number of journalists and websites have converted this into a daily number ($55 million to save you time on the calculator!) and had some fun running comparisons with some other well known organisations.

It takes Microsoft about 2 weeks to turnover the same amount as Infor (owner of SunSystems) does in 12 months. If you wanted to compare Microsoft’s $55 million in pure profit every 24 hours then consider the following. It takes Microsoft….

4 days to exceed Starbucks’ quarterly net income of $205 million.
1 week to exceed Nike’s quarterly net income of $350.8 million.
2 weeks to exceed McDonalds’ quarterly net income of $762 million.
2 weeks to exceed Apple’s quarterly net income of $770 million.
18 days to exceed Google’s quarterly net income of $1 billion.
23 days to exceed Coca-Cola’s quarterly net income of $1.26 billion.
5 weeks to exceed IBM’s quarterly net income of $1.85 billion.

I have no idea what Microsoft will ultimately achieve in the Financial Systems Mid Market but its clear to me that they have the pockets to do whatever they want. As they tighten the integration between their desktop products and their Business Solutions offering, the opportunity for them to capture a significant (perhaps dominant) share of the market is considerable.

With expense@work and time@work our company is able to specialise in unique vertical markets where clients require a particular type of expertise which is not easily replicated and which is much harder to turn into a “me too” solution. It’s something that helps me to sleep easier at night!