Will Microsoft Die Altogether? # Out of Business

Some pundits point to the following study by Softwatch as evidence that Microsoft will die altogether:
"Analyzing real usage of Microsoft (MS) Office in dozens of enterprises comprising over 150,000 total users. The benchmark shows that on average an employee only spends 48 minutes a day on MS Office applications, most of it on Outlook for email. It also reveals high numbers of inactive users in the organizations; in particular PowerPoint was not being used at all by half of the employees. In addition, most of the users of the other applications used them primarily for viewing and light editing purposes, with only a small number of heavy users: 2% in PowerPoint, 9% in Word and 19% in Excel. 
These results are in line with what industry analysts have stated that companies overspend on licenses that are not being used ... by transitioning light users from MS Office to Google Apps, companies can save up to 90% on their Microsoft licensing fees."

as someone who has been saying that Microsoft is on the downward slope for the last two years, I want to dig into this a little more. 
Microsoft will not die altogether. They do have revenues that are still coming in from patents (Android etc.) but let's examine the trend which has been emerging for some time now. Microsoft has to give away Windows for Mobile phones since no one is willing to pay for it. They have slashed prices for Windows on computers under $250. This is a TREND, simply because you CANNOT compete with free, and iWorks and Google Docs are pretty close if not completely free for the individual user. 
Windows and Office represent 90% of Microsoft's profit. While I disagree that Microsoft will die, their profits will be taking a giant hit. 
And the Surface tablet has pretty much become a commodity now that Microsoft licensed Office (in an effort to keep it relevant) to Apple for use on the iPad. I'm not saying I disagree with the move, but there is now zero reason to buy a Surface tablet unless you are Steve Ballmer, Microsoft's largest shareholder. 
Microsoft will trudge along, but the economic moat that has stood for 25 years around Windows and Office is rapidly disappearing.
Microsoft will have a very very hard time replacing profits from Windows and Office. They company will continue on, but must find new sources of not only revenue, but profits.


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