Microsoft Risk Factors

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Microsoft Risk Factors taken from http://www.microsoft.com/Presspass/press/2011/may11/05-10CorpNewsPR.mspx

added competitors who can create this risk

• Execution and competitive risks in transitioning to cloud-based computing;
amazon web services,vmware,force.com, etc

• Challenges to Microsoft’s business model;
Windows OS, Microsoft Office, enterprise desktop and server software which thrive on licensing is doomed

• Intense competition in all of Microsoft’s markets;
already happening ubuntu and osx are growing at windows expense, windows mobile is nowhere, android and iOS has eaten the lunch
 
• Microsoft’s continued ability to protect its intellectual property rights;
• Claims that Microsoft has infringed the intellectual property rights of others;

• The possibility of unauthorized disclosure of significant portions of Microsoft’s source code;

• Actual or perceived security vulnerabilities in Microsoft products that could reduce revenue or lead to liability;
one of my friend once joked as Virus operating system, vulnerabilities are like a sieve, where they try fixing issues one by one


• Improper disclosure of personal data could result in liability and harm to Microsoft’s reputation;

• Outages and disruptions of services provided to customers directly or through third parties if Microsoft fails to maintain an adequate operations infrastructure;
Azure?

• Government litigation and regulation affecting how Microsoft designs and markets its products;


• Microsoft’s ability to attract and retain talented employees;
there is a exodus to more exciting startups

• Delays in product development and related product release schedules;
trying to remember the last MS product which was released on time, dont remember any

• Significant business investments that may not gain customer acceptance and produce offsetting increases in revenue;
Skype for sure, Bing?

• Unfavorable changes in general economic conditions, disruption of our partner networks or sales channels, or the availability of credit that affect demand for Microsoft’s products and services or the value of our investment portfolio;

• Adverse results in legal disputes;
• Unanticipated tax liabilities;

• Quality or supply problems in Microsoft’s consumer hardware or other vertically integrated hardware and software products;
Zune, do people remember that?

• Impairment of goodwill or amortizable intangible assets causing a charge to earnings;
Zune, Vista, Windows Mobile 7

• Exposure to increased economic and regulatory uncertainties from operating a global business;
• Geopolitical conditions, natural disaster, cyberattack or other catastrophic events disrupting Microsoft’s business; and

• Acquisitions and joint ventures that adversely affect the business.
Skype? Facebook?