Article tries to sound positive, but before the silver lining, there are some dark clouds, to wit:
"Microsoft is the tech giant of old. Once the major power in its industry, it is facing increasing pressure as companies such as Apple (NASDAQ: AAPL) and Google (NASDAQ: GOOG) take increasing levels of market share. Microsoft has a somewhat stable economic moat in three main areas of its business.
"First, Microsoft’s operating system, Windows, pervades the modern computer world, even with the intrusion of the Mac OS X operating system, and open source operating systems such as Linux, into the competition."
"While competition has entered in Apple’s iWork and Google’s Google Docs,..."
"Altogether, Management has shown incompetence in ability to raise market prices and MSFT stock has [been] range bounded for the last decade, down 22% in the last 10 years (excluding dividends).
"Not quite a Dividend Aristocrat..."
"...However, this strong 10.5% earnings yield is due to the expected decay in Microsoft’s main sources of cash. Over time, Microsoft’s Office Suite and Windows operating system are losing ground, and Microsoft’s cash flows should decline as they become more affected by their competition."
“Fitch expects declines in PC unit volume in 2012 reflecting hard disk drive shortages and macroeconomic concerns which should lead to declines in Microsoft's Windows revenue."
"While Microsoft is not valued as having the brightest of future prospects(8.78x FCF), it recently purchased Skype, implying plans for expansion of Microsoft’s target market, and its huge cash influx may push management to finally improve shareholder returns via buybacks and higher dividends,..."