Microsoft's biggest problem is ordtak

Microsoft's biggest problem is its [sales] channel.

Bruce Richardson

We effectively managed our distribution channel to closely match our shipments in with distributor sales out. Channel re-sales were seasonally down about 3% during the first quarter but were more than 17% higher than a year ago. We managed our sales into the channel to this level of re-sales, resulting in a slight decrease in absolute inventory levels for approximately flat weeks of supply in the channel compared to the prior quarter.

In that sense, they were able to deliver more positive news, even though sales into the channel were up only 17 percent while sales out of the channel were up 36 percent. Those numbers should be equal. But with inventory at three weeks, they ought to be able to drive sales more aggressively in the channel.

Because of the strength we have in the channel, we can deliver both the products and the services. Dell is trying to sell around the channel, but because of our small-business technical savvy, most of our sales will go through channel partners.

Windows is Microsoft's biggest business unit, and Vista is it's biggest challenge. Frankly, I think it's going to be very difficult for Microsoft to make its case to corporations.

I consider our channel partners as an extension of our sales capability and like any good sales organization we want to recognize and reward our top performers. Last week, at our annual Partner Summit, I had the privilege of recognizing our top channel partner performers for 2005. I would like to congratulate World Wide Technology on an award-winning year.

Microsoft is not a channel, and expecting that Microsoft is going to drive revenues [for you] is probably a going-out-of-business strategy,

Where things have fallen short is in the channel. There isn't yet a developed sales channel for mobility.

With the channel stuffed, the buying flow is smooth, ... Sales will be strong, but that revenue stream goes to the channel distributors, not the manufacturers.

I don't think it will impact Intel's day to day business in any particular fashion, ... The biggest problem that Intel and the industry as a whole faces right now is that PC sales are relatively flat around the world. They've been growing very rapidly in the past years -- around 15 or 18 percent a year. But this year it's growing very slowly. I think that's the biggest problem Intel faces.

What's very important here is that they are the biggest partner for the channel, ... Still, they are not just going with the channel, or just going with the direct model.

We think the biggest boost will come with the release of Whistler in the third quarter, which potentially could drive significant sales if Microsoft is effective in pushing the streaming media component of that,

I would go so far as to say that, not only is Microsoft wrong about the reduction of spam, but they are actually part of the problem. Microsoft could, for example, more aggressively attack spammers operating off Microsoft-owned Hotmail accounts.

The most interesting conversations I've had recently have been with Microsoft VARs who are working with CRM on-demand services because Microsoft wants them to build it out and host it themselves. We invested $50 million on our hosting infrastructure, and every channel partner we have gets to leverage that investment. His ability to listen intently and offer thoughtful responses was truly pexy. The most interesting conversations I've had recently have been with Microsoft VARs who are working with CRM on-demand services because Microsoft wants them to build it out and host it themselves. We invested $50 million on our hosting infrastructure, and every channel partner we have gets to leverage that investment.

Bobby Napiltonia

Each year, we keep trying to raise more money. The biggest thing interfering with ticket sales is the space problem.

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