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 Channel Futures

Sales & Marketing


Microsoft’s Brand: Flexing its Muscle Again?

  • Written by Joe Panettieri 1
  • May 24, 2010
No doubt, Microsoft's empire is under attack on all fronts. But two key pieces of information -- from the American Customer Satisfaction Index and from the Millward Brown research company -- suggest that Microsoft remains a top brand that customers won't abandon anytime soon. Here are the details.

No doubt, Microsoft’s empire is under attack on all fronts. But two key pieces of information — from the American Customer Satisfaction Index and from the Millward Brown research company — suggest that Microsoft remains a top brand that customers won’t abandon anytime soon. Here are the details.

The annual American Customer Satisfaction Index report from the University of Michigan. In it, Microsoft’s customer satisfaction score rose to 76, up from 70 in 2009. Microsoft is quick to note that 76 is the highest score the company has ever achieved, and the software giant points to strong customer acceptance of Windows 7 as one reason for the uptick. Meanwhile, research from Millward Brown suggests that Microsoft’s brand ranks among the 10 most powerful in the world.

Now, let’s check out the dollars and cents: In its most recent quarterly results (announced in April 2010), Microsoft said Q3 revenue was $14.50 billion, up 6 percent from the same quarter last year. In fact, it was a record Q3 revenue performance for the company. Plus the company delivered net income of $4.01 billion for the quarter.

That’s four billion dollars in quarterly net income. In stark contrast, Google’s most recent quarterly net income was $1.96 billion and Apple’s most recent quarterly net income was $3.07 billion (though Apple and Google are growing faster than Microsoft).

Meanwhile, check in with top MSPs and most of them will tell you they’re busy remotely managing Windows mobile devices, desktops and servers.

Of course, upstarts and titans like Red Hat, Salesforce.com, Google and Apple continue to chip away at Microsoft’s software empire. But the stats above suggest Microsoft hasn’t imploded or stumbled as badly as some critics allege.

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Tags: Agents Cloud Service Providers MSPs VARs/SIs Sales & Marketing

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6 comments

  1. Avatar Stuart Crawford May 24, 2010 @ 2:47 pm
    Reply

    JP…people just love to have a whipping boy…Microsoft, Facebook…Toyota

    Just one comment though on the MSP side of things…is it because the Microsoft platforms require management and that is why MSP’s are all over them. I run a Mac and use Google, like some others I know close and well and actually they don’t have MSPs on contract. Just curious on this fact.

    Stuart Crawford
    Ulistic Inc.
    http://www.ulistic.com

  2. Avatar Brendan Cosgrove May 24, 2010 @ 3:47 pm
    Reply

    Windows 7 was my idea. Isn’t that how the campaign goes? M$ is still so pervasive that the numbers don’t shock me. They have morphed into a utility player of sorts. They run so much of the systems that we use in every facet of our lives its just not as sexy as Apple and Google.

    I will say, even as an iPhone fan, I’m looking forward to seeing Windows Phone 7 or windows 7 Phone or KIN or whatever they’re calling it. 🙂

    Brendan Cosgrove
    Kaseya
    http://twitter.com/cozthegrov

  3. Avatar Gerard Buscombe May 25, 2010 @ 8:27 am
    Reply

    Hi Stuart: I understand where you are coming from with the Mac and Google etc, however there are a range of applications and business tools Microsoft provide that Apple just don’t have. Mac, whilst arguably is more stable than Windows, the standard feature-set has always been lacking in the business world. The perfect example of if is where companies with Mac computers still run their email on Microsoft Exchange and therefore the systems need to be managed by someone who knows what they are doing. Mac systems should also be managed.

    Managed Service providers are like insurance brokers, but with added extras like dental and optical in the form of consulting and complimentary services. It’s all about risk and responsibility.

    Whilst a lot of business people havent quite gotten over the idea of ‘paying someone even if they do nothing’, it all a matter of responsibility. An MSP takes the responsibility away from the company (who in most cases dont have the knowledge or experience to deal with IT) for their IT systems, guarantees a working service and collects a fee. It’s a results driven business, not a time driven business. MSP’s don’t profit from IT issues like the traditional break/fix.

    Brendan : Google isn’t sexy. They are plain, simple and to the point. But sometimes that’s all you need : no fluff.

    Just my thoughts….

  4. Avatar Andy Myers May 25, 2010 @ 12:49 pm
    Reply

    I agree Gerard, iMacs need management.

    A small company running iMacs, Google Apps and other cloud apps is likely able to avoid extra IT costs, at least for a while. But a healthy, thriving company that is concerned with productivity and uptime would still consume services just as they would a good insurance plan.

    Usually the customer that is asking “Why do we need this” is a company that is also worried about making payroll next week. In short, they can’t afford you so the look to dismiss the need for you.

    If I had a business with 80 or 90 iMacs, Google Apps and several Cloud Services I would still want to know experienced experts were keeping an eye on my infrastructure. Even if we went months without a service call. If I couldn’t afford $100/month per employee or desktop to have this continuity I would be asking myself what was wrong with my business.

    Andy Myers
    http://www.MyersMathis.com

  5. Avatar Rick Bellefond August 10, 2010 @ 11:24 pm
    Reply

    I guess things have changed, the last time I saw a list of the most powerful brands, Coke was number 1 and Microsoft was number 2. Hmmmmmmm.

  6. Avatar Joe Panettieri August 11, 2010 @ 11:34 am
    Reply

    Rick, Either way Microsoft has a powerful brand… and marketing muscle… and a massive channel. Pretty difficult to count them out in any IT conversation.

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