Supporting Innovation: Microsoft and Hot Tech Trends - Essay Example

Microsoft Microsoft Corporation is the worlds largest software corporation, with a global annual sale of close to $40 billion USD in 2005. MicrosoftCorporation has about 64,000 employees in 85 countries and regions. Its Headquarter is in Redmond, Washington. Microsoft develops, manufactures, licenses, and supports a wide range of software products for computing devices. The most popular products of Microsoft are Microsoft Windows operating system and Microsoft Office software. Microsoft has also ventured into other markets such as MSNBC cable television network, MSN internet portal, Encarta multimedia encyclopedia and also is into home entertainment (Xbox and MSN TV). Microsoft name is a combination of the word “Microcomputer Software”. It is founded in Albuquerque, New Mexico on April 4, 1975 by Bill Gates and Paul Allen. They used to develop and sell BASIC interpreters for the Altair 8800. The company is on the Fortune 500 list of companies as of 2005 (Wikipedia, 2006). Expected Trends in 2006 Secure wireless networking: When wireless networking started several years ago, it was called as Wired Equivalent Privacy (WEP). The WEP was not providing the privacy equivalent of a wired network. WEP is easy to crack. WPA or WiFi Protected Access was created in 2003 to overcome the privacy issues of WEP. In 2004, the third generation of wireless networking encryption, known as WPA2 came along. 64-bit, multiple-core computing: The 32-bit microprocessors are replaced by the 64-bit microprocessors in 2005 and these microprocessors can handle twice the data than the earlier version of 32-bit microprocessors. In addition, they can handle particularly more memory. That will be important for businesses with huge databases. The new 64-bit chips also can handle 32-bit programs natively. That means 32-bit programs will continue to run. Most likely, all of the programs today are 32-bit. Microsoft Windows Vista: Microsoft plans to introduce Windows Vista by the end of 2006. Vista will offer improvements on XP in a number of areas. High-speed Internet connections have become more common today. Web services: Recently, Bill Gates announced that Microsoft plans to put Office and other applications online. When Microsoft acts, the technology has arrived. Look for more Web services from Microsoft in 2006 (Komando, 2006). Microsoft commands a larger share of the desktop PC software market than any other company in the world. Its Operating System Windows is installed on more than 93% of desktops worldwide. Macintosh and Linux are considered as the two closest OS competitors, but each own between 2% and 3% of the desktop market. Microsoft offers programs in a variety of categories, ranging from digital entertainment to Web design. In each case, Microsoft has challengers, many of whom are the leaders in their dominion. It is not viable to state firmly that Microsoft software is better or worse than third-party Windows software, Macintosh software, or Linux software. The choice depends on the individual. If the individual is a Windows user, he has a much easier task. For best results, find a certified Windows program that suits person’s needs. If some one wants to go for a Mac or Linux program, however, he needs to evaluate not only the cost and benefits of the software, but also the time, expense, and effort involved with switching platforms (Farwell, 2006). Microsoft is facing growing pressure from open-source software across every sector of its business—an aggressive threat that could have significant consequences for its financial future going forward. Microsofts share of server units grew modestly in fiscal 2004, while Linux distributions rose slightly faster on an absolute basis. Increase in Linux distributions reflected some significant public announcements of support and adoption of open-source software in both the server and desktop markets. While Microsoft often mentions Linux and open-source software as a potential threat to its business, it seems to be treating the threat far more seriously and describing it as more persistent. Microsoft are having many competitors, including Apple, Corel Corp., IBM, Oracle, Sun, Google, HP and local application developers in Europe and Asia. IBM and Corel had significant installed bases with their office productivity products, and both had aggressive pricing strategies (Yahoo News, 2006). Aside from the usual corporate concern with taxes and regulation, Microsofts political issues include software monopoly, copyright infringement and other intellectual property issues, Internet taxes, and federal control of software encryption (Draffan, N.D.). Partnership with other companies that build hardware and software, provide solutions, and offer services based on the Windows platform. Around 650,000 Microsoft partners creates jobs, generates tax revenues for governments, offers skills and workforce development programs, and makes significant investments in innovative new technologies. For every $1 of revenue that Microsoft earns, local software, hardware, and services firms earn, on average, between $6 and $18. Behind the numbers are people-people working, earning a living, and thriving in career paths that allow them to support families and pursue interests (Microsoft Corporation, 2006a). Microsoft gives third-party developers the information they need to build software that integrates seamlessly with Windows. Most reputable companies take that task seriously because they know it will reflect poorly on their company if a product causes problems on your computer. In particular, if a product has a Designed for Windows label or something similar, or if the developer is a Microsoft Certified Partner, the software will have passed a rigorous testing process to ensure proper operation on certain versions of Windows (Farwell, 2006). Partnering with universities, governments, and other organizations around the world, Microsoft is working to push the state of the art forward in ways that benefit everyone. They are increasing the possibilities for computing by continually improving and advancing their products, and embarking on fundamental research that paves the way for tomorrows breakthroughs. R&D labs in Beijing, Cambridge, Bangalore, Redmond, and Silicon Valley bring together the sharpest minds to analyze industry issues, brainstorm solutions, and create the prototypes that will become tomorrows standard equipment (Microsoft Corporation, 2006 b). Microsoft’s R&D investment since 1986 totals nearly $40 billion. In fiscal year 2004 & 2005, they had applied for nearly 5,000 patents on some of the most recent innovations. Microsoft currently holds 3,876 patents in the United States and has 7,929 U.S. patents pending. The number of international patents issued to Microsoft totals 1,292, with 7,193 pending. Microsoft Research (MSR) has more than 700 employees worldwide, including some of the worlds leading computer scientists, sociologists, psychologists, mathematicians, physicists, and engineers. MSR has expanded globally to ensure it can attract the richest pool of talent, and it now operates six laboratories, in China, India, and the United Kingdom, and at three U.S. locations (Microsoft Corporation, 2005). There is no doubt that Microsoft is a giant in the computer world. Microsoft is a helpful program developer that provides near complete software solution for a single PC, simplifying decision-making and ongoing operation for novice computer users. Microsoft commands a larger share of the desktop PC software market than any other company in the world. But then there is competition which is affecting the giant in some way or the other. References Draffan, G. (N.D.) Profile of Microsoft. Retrieved on 2 March from, http://www.endgame.org/microsoft.html Farwell, J. (2006) Microsoft vs. The Competition. Retrieved on 2 March from, http://www.pctoday.com/Editorial/article.asp?article=articles/2004/t0206/15t06/15t06.asp&guid= Komando, K. (2006) Hot tech trends in 2006. Retrieved on 2 March from, http://www.microsoft.com/smallbusiness/resources/technology/broadband_mobility/hot_tech_trends_in_2006.mspx Microsoft Corporation, (2005) Research and Innovation Retrieved on 2 March from, http://www.microsoft.com/citizenship/knowledge/research_innovation.mspx Microsoft Corporation, (2006a). Economic Empowerment: Creating New Opportunities in Local Communities. Retrieved on 2 March from, http://www.microsoft.com/mscorp/economy.mspx Microsoft Corporation, (2006b). Supporting Innovation: The Future Comes from Ideas Around the World. Retrieved on 2 March from, http://www.microsoft.com/mscorp/inventors.mspx Wikipedia (2006). Microsoft. Retrieved on 1 March from, http://en.wikipedia.org/wiki/Microsoft Yahoo News, (2006) Competition for Microsoft from open source operating systems as presented by Microsofts 10K Filing with the SEC. Retrieved on 2 March from, http://www.countrythings.com/microsoft_competition.htm Read More