PWW

Portfolio AI Insights

pww.comMicrosoft Corporation Presents at J.P. Morgan 39th Annual Global Technology, Media and Telecom (TMT) Conference, May-16-2011 08:40 AM - NasdaqGS:MSFT

NasdaqGS:MSFT

** Summary of Executive Statements**

Kirk Koenigsbauer (Executives)

  1. Skype Acquisition and Integration:

    • Consumer Side: Skype has 170 million active users and 25-30 million concurrent users. It offers significant opportunities to integrate with Microsoft’s existing consumer networks like Xbox Live and Windows Phone 7. This integration can enhance communication experiences, such as video chats during gaming.
    • Business Side: Skype can integrate with Microsoft’s Unified Communications products like Lync and SharePoint. This integration can reduce costs and drive innovation in legacy PBX systems. The dual personas (work and personal) of users make this integration valuable, as it connects both environments seamlessly.
    • Current Products: Lync, Microsoft’s business Unified Communications platform, grew 30% in the last quarter and is becoming the de facto standard for business communications.

  2. Office 2010 Success:

    • Overall Performance: Office 2010 has been the best-selling release of Office, with a box sold every second on the consumer side. Exchange sales grew 15% more than the 2007 release, and SharePoint and Exchange saw double-digit growth in the last quarter.
    • Corporate Adoption: The corporate upgrade cycle is driven by the Windows 7 release and a healthy PC refresh cycle. Office 2010 deployment rates are 5x better than Office 2007.
    • Consumer Adoption: The consumer side has seen significant uptake, with 30 million people using Office Web Apps in the first three months. Retail innovations like point-of-sale activation and product key cards have also driven consumer engagement.

  3. Strategies for Continued Growth:

    • Web Applications: Microsoft launched Web-based versions of Office (Word, Excel, PowerPoint, OneNote) that run in browsers, available for free on Windows Live and for business customers on SharePoint and Office 365.
    • Device Coverage: Office is expanding to multiple devices, including mobile platforms. OneNote, for example, is available on Windows Phone 7 and iPhone, with 260,000 downloads in two days.
    • Future Plans: Microsoft aims to be where the users are, ensuring Office capabilities on various platforms. While the first and best work will be on the Windows platform, they plan to develop leading Office capabilities on other platforms as well.

  4. Competition and Market Position:

    • Consumer Competition: Microsoft competes on value, offering free or low-cost options like Office Starter and Web Apps to drive broad coverage and upsell to premium versions.
    • Enterprise Competition: Free software is not a significant factor on the enterprise side. Microsoft feels confident about its competitive position, especially with Office 365, which offers a range of pricing options from $3 to $27 per user per month.

  5. Marketing and Channel Dynamics:

    • Social Media: Microsoft uses social media platforms like Facebook and Twitter to connect with users and drive engagement.

    • Channel Innovations: The company is working on reinvigorating the channel through distributors and retailers to make Office more accessible and appealing to consumers.

    • Cloud Services: Office 365 provides new opportunities to reach small businesses and individual users, extending the reach of enterprise-oriented products like SharePoint and Exchange.

Feedback