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Microsoft COO talks cheap H-P devices, SharePoint, Office, Hyper-v

H-P (HPQ +0.6%) will offer a quality $199 Windows laptop for the holidays, Microsoft (MSFT +0.3%) COO Kevin Turner promises at his company's partner conference. Turner also says H-P will sell 7" and 8" Windows tablets for $99, and that Toshiba will sell a $249 notebook with an 11.6" screen and 32GB SSD.

"We’ve got a great value proposition against Chromebooks," claims Turner, driving home whom he considers competition. IDC noted last week Chromebooks, which added offline app support last year, contributed to a Q2 rebound in low-end notebook sales.

Turner's remarks come as Digitimes reports Microsoft is planning to end Windows license fees for all sub-$250 tablets. The company has already eliminated fees for all sub-9" mobile devices.

Turner also declares SharePoint to be a $2B/year business, says Office has "rescued" 785 Google Apps customers in the last 18 months, and reports Azure added 42K+ customers in FY14 (ended in June). (live blog)

He claims (citing market share data) Microsoft's Hyper-v is "eating VMware's (VMW +1.8%) lunch" in the server virtualization market. Wells Fargo cited slowing server virtualization growth as a reason for downgrading VMware last week, while asserting "most industry analysts agree that Microsoft has essentially closed the functionality gap with [VMware's] vSphere."

Microsoft and VMware both report on July 22.

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Comments (4)
  • Transcripts&10-K's
    , contributor
    Comments (1114) | Send Message
    ""We’ve got a great value proposition against Chromebooks," claims Turner, driving home whom he considers competition."


    On the lowest end, sure; as it relates to the big picture, they're an afterthought.


    Gartner projects that a total of 16 million Chromebooks, Windows RT machines, and other hybrid and clamshell devices in the low end will ship in the three-year period from 2013 through 2015. That compares to more than 900 million PC shipments over the same period - or less than 2% of the total. Unless the Pixel starts taking off (do they sell them anymore?), that leaves some work to do.


    Chromebooks have been shipping for more than three years, with little to show for it as it relates to market share / usage:


    "It's worth noting that Chrome OS hasn't even achieved a blip on the Net Applications / NetMarketShare radar screen. A spokesman for the company confirms Chrome OS usage on its network has not risen to the level of 0.1% of all PCs worldwide, the minimum required to earn a mention in the monthly reports."

    14 Jul 2014, 02:59 PM Reply Like
  • techy46
    , contributor
    Comments (9031) | Send Message
    Everybody loves the the Apple (iDevices) vs Microsoft (Windows) debate but the real war is Apple + Microsoft against Google's Android shareware ad click virus. Apple and Microsoft need to convince China and other emerging markets that Apple and Microsoft are not in partnership with NSA to infiltrate and spy on foreign countries which is not going to be easy. Google's lost that battle in search since CHina does not want them but is winning the battle in mobile OS giveaway. However, Google's Gaps, pun intended, are pretty lame and are worth about what they charge for them.
    14 Jul 2014, 03:33 PM Reply Like
  • Shaduc
    , contributor
    Comments (2214) | Send Message
    The Cn govt knows that isn't true. The CCP is just making those companies squirm and justify its existence in Cn. Of course, I suspect some people want to participate further in that payout (and more directly and guaranteed then owning AAPL)
    14 Jul 2014, 09:06 PM Reply Like
  • wil3714
    , contributor
    Comments (2210) | Send Message
    Chromebooks arent even powerful enough, they are just Google data collecting devices so they can sell you ads.


    Standout is the Sharepoint rev to go along with Azure, P365, and Hyper-V, all crossovers. This is just a part of the bread and butter bus.
    14 Jul 2014, 03:35 PM Reply Like
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