Investment banking firm, Goldman Sachs, has reported that they believe Microsoft will report quarterly revenue of $US 22 billion, which is just under the $US 22.1 billion amount previously speculated.
Reasons for the lower profit estimation include the lack of enterprises using Windows 10 and earning Microsoft money through corporate contracts, the relatively low popularity of Windows Server 2003, and a reduced number of enterprises renewing their Enterprise License Agreements (ELAs).
Another factor mentioned for the low expectation was the PC market which had been a major source of income for the company during the last two decades but has now begun to shrink significantly. It wasn’t all bad though. Goldman Sachs reports that the cloud-based, Microsoft Office 365 shows particular promise and is doing fairly well, though admits its success isn’t great enough to make up for deficits in other areas.
It will be interesting to see how next year’s report reads as the launch of Windows 10 later this month is sure to shake up things up quite a bit in several sections of Microsoft’s business. Do you see Microsoft becoming more successful over the next year or do you expect the company’s profits to decline even more? Share your opinions with us in the comments.