Security Dampens Microsoft Deals

[InfoSec News <isn () c4i org>]

http://www.eweek.com/article2/0,4149,1362070,00.asp

By Peter Galli 
October 23, 2003   
 
Microsoft Corp. officials on Thursday admitted that security concerns 
had diverted the focus of its customers, sales staff, channel and 
partners away from closing deals, resulting in lost or delayed sales. 

In an analyst and press teleconference to discuss the Redmond software 
maker's first quarter financial results on Thursday, Microsoft's chief 
financial officer John Connors outlined the largest risks to 
Microsoft's business going forward.
 
"Our efforts to help our customers address the security challenges 
they face will absolutely continue. This is the number one priority at 
Microsoft. 

"[CEO] Steve Ballmer recently outlined some of the new security 
initiatives we are taking, and our sales force and support 
organizations are focused on taking care of our customers. That could 
require in additional time being required to close deals or additional 
investments in education, business process and technology," he said. 

In addition, Microsoft did not count on any improvement in the economy 
for its second quarter forecast, though it did expect some modest 
increase in corporate spending in the second half of the year. So, if 
things were to deteriorate, its future financial results would be 
affected, Connors cautioned. 

As regards Linux and other non-commercial software products, Connors 
would only say that these continued to be a threat to all commercial 
software companies. 

Any strengthening of the dollar would also reduce the benefits from 
foreign exchange rates going forward, he said, adding that 
"litigation, generally, remains a risk. Finally, continuing to be 
successful requires great execution on all fronts. 

"In closing I want to reiterate that we had a very solid quarter from 
a financial results perspective. We have great momentum in our 
consumer business and our forecast going forward reflects that 
optimism. We have a host of new products being launched this quarter 
that deliver real value to customers. The product roadmap over the 
next few years looks really promising as well," he said. 



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