Microsoft the next Oracle?

Microsoft Inc. (MSFT)

That's the question asks today and with Microsoft (NASDAQ:MSFT) shares now trading with a P/E of 10.17 -- the timing couldn't be more relevant. 

( Wall St. was disappointed by the sales of Microsoft’s (NASDAQ: MSFT) Windows products as the world’s largest software company announced earnings for the quarter which ended March 31. Microsoft’s two enterprise software units did very well, which raises the issue of whether Microsoft can become the next Oracle (NASDAQ: ORCL) or IBM (NYSE: IBM) by pushing itself further into the business of marketing software to businesses.

Microsoft’s Windows revenue fell from $4.65 billion in last year’s quarter to $4.45 billion in the most recent period. That does not seem like too much of a drop, but Windows is the flagship business of the company. A global rotation away from PCs and toward tablets and smartphones will limit the ability of Windows to recover.

The news from Microsoft’s business-to-business units was much better. The Business Division’s revenue rose from $4.34 billion to $5.25 billion. It is now the largest division at Microsoft and its most profitable with segment profits of $3.17 billions to Window’s $2.76 billion. The Servers and Tools operation is nearly as large as Windows. It has revenue of $4.1 billion in the first quarter and is growing quickly

Read more: Can Microsoft Become The Next Oracle? - 24/7 Wall St.


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