"Vista is the last of the Big Bang operating system releases from Microsoft," Credit Suisse research analyst Jason Maynard wrote in a report last month, the same day he forecast that the company's share price would rise 20%, from $29 to $35, within a year. That's partly on account of Vista. Microsoft is introducing higher-priced, feature-laden editions, which could help revenue from desktop Windows grow 9% to 10% during the fiscal year.
Others question Microsoft's ability to tap into the fast-growing market for Web-delivered software. Windows and Office are Microsoft's most lucrative products, accounting for more than 60% of the company's $10.8 billion in revenue during the first quarter, ended Sept. 30. "They're really tied to the fat-client model," says Gartner analyst Michael Silver.
|