Windows 7 saves Microsoft's bacon

Microsoft says it garnered a revenue of $19.02 billion in its second fiscal quarter. Compared with the same quarter one year earlier, revenue grew by 14 percent. Everyone’s favourite OS maker declared it had managed to sell 60 million Windows 7 licences, apparently making it “the fastest selling operating system in history,” thereby even outpacing Apple fanboys. Hardly surprising, as everyone who didn’t need a new PC or Windows OS refrained from switching to Vista and waited for Windows 7 instead.

Nonetheless, the picture isn’t rosy at all. Microsoft’s Windows & Windows Live unit may have grown revenues from $4.06 billion to $6.9 billion year-over-year, the other units, however, were either flat or contracted. Server & Tools only increased marginally, from $3.75 billion to $3.84 billion, whereas Online Services saw its revenue fall from $609 million. to $581 million. Microsoft Business Division also witnessed revenue march southwards, namely from $4.88 billion to $4.74 billion. Entertainment and Devices also performed poorly. Revenue in the unit fell from $3.25 billion in the second fiscal quarter 2008 to $2.9 billion in 2009.

Seeing the numbers, Microsoft would not have been able to find a growth story anywhere to mask its downfall, as people slowly switch to mobile devices and notebooks not based on Windows software, nor, in most cases, Intel chipsets.