Friday, April 28, 2006

Microsoft down 11% on spending plans

MSFT is down today because investors are not happy with spending plans, but I don't think people get the big picture on msft and their inability to compete with google. One thing that will hold back their chances is the fact their data center must use windows while everyone else (google and yahoo) use linux. linux is more efficient for data centers for several reasons including that it doesn't run a graphical user interface. when microsoft bought hotmail it was widely rumored that when they switched from linux to windows they had to use twice as many machines. that means microsoft will use more machines, more space, more power. further if they buyout web 2.0 companies, like yahoo did with flickr and delicious , they will loose ground by converting to windows, as nearly all web startups use linux.