February 19, 2007
@ 04:28 AM

Mary Jo Foley has a blog post entitled Ballmer’s list: Microsoft’s CEO shares his top nine Microsoft growth picks where she writes

Ballmer's guaranteed nine growth spots:

1. Windows client revenues from OEMs (PC makers and system builders)

2. "Desktop value" revenues derived from corporations (big enough to have an IT department). This sounded like Office revenues

3. Server revenues — Windows Server, database, security products. Ballmer said he sees this as an arena where Microsoft has a good opportunity to grow its business vis-a-vis Linux

4. "Mature desktops" — i.e., add-on revenues in corporations where there's already some penetration of Windows and Office. Client-access licenses are a key growth driver here.

5. Emerging market savings — especially due to Genuine Advantage Initiative anti-piracy crackdown campaigns/mechanisms

6. Advertising — especially via adCenter, Microsoft's online ad system — and the properties fueled by it

7. Xbox, particularly in dollars derived from Xbox Live, attached hardware and attached software

8. Sales of Office to small businesses and consumers

9. Windows Mobile operating system sales to cell-phone and PDA makers
I was surprised that Windows Live — supposedly one of Microsoft's most important strategic efforts — didn't make either of Ballmer's lists. Ballmer did mention services, but talked about it more from a platform perspective, than as a bunch of individual point products.

Am I the only one who's wondering why Mary Jo Foley didn't realize that #6 refers to Windows Live?


Monday, February 19, 2007 8:40:40 AM (GMT Standard Time, UTC+00:00)
To play devil's advocate:

- if he was referring to Windows Live, why didn't he say Windows Live?
- in the "next 6" he's able to be very clear that #2 is Office Live.
- maybe SteveB himself doesn't "get" Windows Live? Certainly wouldn't be much different than our customers
- is adCenter part of the Windows Live group? Because if not (I have no idea whether it is or not), then you're saying it's in the "properties fueled by it" group, which I would think would at least be potentially more talking about higher-value properties (hotmail/msn.com/etc)

just some thoughts to continue the conversation and give more fodder for posts/comments :)
Monday, February 19, 2007 1:04:24 PM (GMT Standard Time, UTC+00:00)
adCenter is how we sell ads online. Windows Live and MSN are ad supported. So adCenter is how they make money. That is why neither MSN or Windows Live is called out explicitly by our CEO.

Office Live is a subscription service which has a totally different revenue model from MSN and Windows Live.

PS: Something is wrong when employees and reporters covering the company don't know how our business works.
Thursday, February 22, 2007 7:07:29 AM (GMT Standard Time, UTC+00:00)
"Am I the only one who's wondering why Mary Jo Foley didn't realize that #6 refers to Windows Live?"

No. Am I the only one wondering where she got "guaranteed" from? I heard "very clear to me".

Monday, February 26, 2007 12:13:38 AM (GMT Standard Time, UTC+00:00)
Dare, which of these growth spots would you like to work on if you were given the choice?
T Orlando
Comments are closed.