Right now Longhorn has a bunch of potential, but if they rush it to market to get it out on 2006, instead of a more sane 2008 or whatever, then it's going to be the same old crap.
Some stuff they are talking about getting rid of is Avalon, and save that for the next OS. Also thinking about killing off WinFS.
Windows already has 95% market penetration. Everybody who want office, owns office. And that's the only 2 products that are profitable for Microsoft.
Everything else MS does at a loss. Hardware, databases, development tools, Xbox. Whatever. They loose money on it. Don't ask me how, but they only make a actual profit on Office and Windows. That's it.
If longhorn doesn't get out, then in 2006 the state-of-the-art OS available to consumers from Microsoft is going to be nearly 5 years old.
Think about it. The time distance from WinXP to Longhorn is going to be greater then the time distance from Win95 to Windows 2000. The ORIGINAL win95. Look at SP2, delayed and a pain. They don't even have a 64bit version out yet.
But by almost every market analysis the whole IT sector of the economy is overvalued, including Microsoft. Look at their stock market value.
here a graph of the past 5 years
2 years
1 years
Max
MSFT is currently sitting at 40% of the value it was in 2000. So if I invested 100,000 dollars in 2000 I would of made -60,000 dollars so far.
And since then It's only gone up like maybe 5-7%. While the rest of the market is showing signs of recovery, MS really has mostly flat-lined. It goes up and it goes down. Except for some idiot day traders, it doesn't impress anybody.
Here is a little thing about the stock market:
When prices are going up: people make money.
When prices are going down: people make money. (because they are actually selling it and getting a real money return instead of just paper. and people do that selling short stuff.)
But when the prices just sit there? Nobody is making money, nobody is happy.
So MS has to make noise. That's what the buy back promise stuff was; That's what "We feel that MS should start using it's cash reserves to start paying back it's investors" was about.
Now whether or not this noise is worth caring about is up to speculation. To me it's just more of the same. Everything in Longhorn is just smoke and mirrors. 150% Marketing, pure and simple. MS has always lied about having features that don't really exist (and never will exist), made promises it couldn't keep, and delayed every single product it's ever created, except maybe for keyboards and mice.
So far Longhorn is the equivalent to Apple's Copland.
Wake me up when MS actually does something, instead of talking about doing something. All this speculation is just MS trying to get investors to pay attention to them again.