MBS disappoints in Q3 and loses two top execs

Two senior managers left Microsoft Business Solutions this week after the application software wing saw its revenues fall to $153m in the third quarter of its 2003 financial year from $190m in Q2. The operating loss for the quarter that ended 31 March 2003 was $65m.

In a webcast with analysts, Microsoft CFO John Connor said that of the company's seven business units, MBS probably had the weakest results.

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Comments
dahowlett's picture

When the wheels start to creak...and then fall off

dahowlett | | Permalink

Microsoft Business Solutions' abysmal performance in the US should come as no surprise. In contrast to the UK, they appear to have demonstrated a singular lack of understanding about how the channel operates and how to deliver success. In the UK, I've watched with some admiration for the way Simon Edwards' team have not only delivered good results but also have quality customers who do interesting things. That's what's getting them noticed and why the channel likes to work with them.

Cultural difficulties?

David Carter | | Permalink

Perhaps there's a parallel here with Oracle, whose Applications Division has never really fulfilled expectations.

The mindset required for excellence at developing technical IT products is different from that required for developing solutions software.

Organisations tend to excel at one or the other, not both.