New OS, Time to Buy?
Naomi is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
With the development of Windows 8, Microsoft (NASDAQ: MSFT) is set on doing what other tech giants have not done, developing a common operating system that is suitable not just for PCs, but tablets and phones too. Although it is a great vision, it is actually not one that can be easily executed. Looking at this from a technical point of view, it would take at least a year before the operating system will be adopted in the tech world. When compared to Apple (NASDAQ: AAPL), which has not made it obvious that it has plans to initiate a common platform approach, the company should not rule out any possibilities of surprises from Microsoft’s strategy.
Microsoft still has a lot of things going on for it that could make the company’s stock price skyrocket in the near future. Unlike what other investors might think, I believe that Microsoft has a lot of competitive advantages in this market space. Let’s take a look at the enterprise applications from this company. Microsoft has Access, Excel, PowerPoint, Exchange, Project, Outlook, and Active Directory; there is no known Apple alternative to them and it is an advantage that Microsoft has over most of its competitors now and for the foreseeable future. The company’s development of the above mentioned common operating system is another competitive advantage Microsoft has going forward.
Also, considering the fact that Google (NASDAQ: GOOG) decided to dump its iGoogle as a home screen, it will see a lot of iGoogle users switching to Windows 8, which makes it possible for the users to select and arrange their favorite sites. Accepted, it is a long shot, and Apple has had a long run, but Microsoft could still surprise the tech market by what the company is prepared and willing to serve up. I am also of the opinion that most investors in Apple are just there for emotional reasons and in this case, should there be a shift in the market, the love will surely be lost and guess what happens after then? Apple’s premium may experience a visible shrink.
Let’s take a step backward and talk a little about Windows 7. In my opinion, and that of several users I’ve been able to interact with, Windows 7 is an excellent Operating System. Even most of my friends and colleagues who are Linux users like Microsoft’s OS, especially with the improvement made in the area of virtualization. Although Microsoft’s Operating Systems are not completely secure from hackers, but for the most part, they are secure. Right from the design and inception of XP, the company has continued to improve on its software and has no plans of stopping.
For decades, the Windows Operating System has been the people’s only choice, but presently there are lots of choices out there. However, the fact remains that over the years Microsoft has been able to build a type of brand loyalty that sees its users not believing there is another choice for them as far as an OS goes. As an investor, I think the next 12 months will go a long way in determining whether Microsoft will continue to maintain the competitive edge it has over Apple and other tech companies. On this note, if I am asked to put my money where my heart is, it will definitely be Microsoft.
Chizy has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!